Area of Interest

Area of Interest (AOI) – Concept Overview
An Area of Interest (AOI) in trading is a key price level or zone on a chart where the probability of a significant reaction (like a bounce, reversal, or breakout) is higher than usual. These areas are often watched closely by institutional traders, professional analysts, and algorithmic systems due to their technical significance.

AOIs are not exact price points, but zones where price action has previously shown sensitivity — whether through support, resistance, order blocks, supply/demand imbalances, or high-volume nodes.

Why Are Areas of Interest Important?
Decision Zones: AOIs help traders identify where the market may make key decisions — for example, whether to break higher or reverse.

Smart Money Traps: These zones often reflect institutional activity. Smart money tends to manipulate price to these zones to gather liquidity before large moves.

Risk Management: AOIs help traders place more strategic entries, stop losses, and take profits by focusing on logical market structure points.

Confluence Zones: AOIs become powerful when combined with other tools like trendlines, Fibonacci levels, or candlestick patterns.

How the Indicator Works (Example Logic)
The AOI indicator on TradingView automatically scans historical and real-time price data to detect and plot zones of potential interest. Here's how it might work (based on common AOI logic – customize this to match your script):

1. Swing High/Low Detection
The indicator identifies recent significant highs and lows using price action structure (like higher highs or lower lows).

These points act as anchor levels for defining AOIs.

These zones suggest where buy/sell orders were left unfilled, creating areas of future interest.

2. Support/Resistance Conversion
AOIs are drawn from past support/resistance zones that have been tested multiple times.

When broken, these zones flip — support becomes resistance and vice versa.

3. Dynamic AOIs (Real-time Updates)
As new price data comes in, the indicator dynamically updates AOIs.

The zones expand or shrink based on recent price reaction and volume activity.

AOI Features in This Indicator
✅ Auto-detection of high-probability AOI zones

✅ Customizable sensitivity (aggressive vs conservative levels)

✅ Color-coded zones (Support = Green, Resistance = Red)

How Traders Use AOIs
Entry Points: Traders wait for confirmation (e.g., bullish engulfing at a support AOI) before entering.

Exits or Take Profit Zones: AOIs can act as natural TP levels where reversals often occur.

Breakout/Reversal Filtering: If price enters an AOI with strong momentum, a breakout is more likely. If it stalls or forms divergence, it might reverse.