FVGs & CEs + Alerts: simple & efficient methodFair Value Gap indicator: Paints FVGs and their midlines (CEs). Stops painting when CE is hit, or when fully filled; user choice of threshold. This threshold is also used in the Alert conditions.
~~Plotted here on ES1! (CME), on the 15m timeframe~~
-A FVG represents a 'naked' body where the wicks/tails on either side do not meet. This can be seen as a type of 'gap', which price will have a tendency to want to re-fill (in part or in full).
-The midline (CE, or 'Consequent encroachment') of FVGs also tend to show price sensitivity.
-This indicator paints all FVGs until priced into, and should give an idea of which are more meaningful and which are best ignored (based on context: location, Time of day, market structure, etc).
-This is a simpler and more efficient method of painting Fair value gaps which auto-stop painting when price reaches them.
//Aims of Publishing:
-Education of ICT concepts of Fair Value Gaps and their midlines (CEs): To easily see via forward testing or backtesting, the sensitivity that price shows to these areas & levels.
-Demonstration of a much more efficient way of plotting FVGs which terminate at price, thanks to a modification of @Bjorgums's clever looping method referenced below.
//Settings:
-Toggle on/off upward and downward FVGs independently(blue and orange by default).
-Toggle on/off midline (CE).
-Standard color/line formatting options.
-Choose Threshold: CE of FVG or Full Fill of FVG: This will determine both the 'stop-painting' trigger and the 'Alert' trigger.
-Choose number of days lookback to control how many historical FVGs paint on chart.
//On alerts:
-Simple choice of 2 alerts:
~~One for price crossing into/above the nearest untouched 'premium' FVG above ( orange ). Trigger is user choice of CE or full fill.
~~Another for price crossing into/below the nearest untouched 'discount' FVG below (blue). Trigger is user choice of CE or full fill.
-Alerts set via the three dots in indicator status line.
//Cautionary notes:
-Do not use the alerts blindly to find trades. Wait until you have identified a good FVG above/below which you think price may show sensitivity to
-Usage on very low timeframes can cause unexpected results with alerts: due to new FVGs forming in realtime the Alert will always trigger at the most recent FVG above/ below having its threshold hit.
-Big thank you to @Bjorgum for his fantastic extendAndRemove method. Modified here for use with boxes and to integrate Alerts.
-Also Credit to ICT (inner circle trader) for the concepts used here: Fair value gaps and their Consequent Encroachment (CE).
Cerca negli script per "imbalance"
NDOG & Dynamic Event Horizon° (Experimental)The ICT concept of New Day Opening Gaps (NDOG) is simply an imbalance that may manifest at Daily Opening time. This gap in price is formed by the Close at 5PM EST and the open at 6PM EST.
According to ICT's studies, this gap in price holds a lot of significance when it comes to price action, acting as a magnet or a point of reference during the day (and following days/weeks).
This script applies the supporting concepts of New Week Opening Gaps (Event Horizon and OTE areas) to NDOGs, mimicking my NWOG & Dynamic Event Horizon° indicator. Equally to the latter, this script dynamically selects the most relevant NDOG Dealing Range and plots their EH and OTE levels automatically.
// Please refer to the NWOG indicator post linked above for more information about these concepts
Available Alerts:
– Cross Below Event Horizon
– Cross Above Event Horizon
– New NDOG Range Established
Important Remarks:
– This is purely an experiment, and has not been taught by ICT publicly in any way. Treat this material accordingly.
– Note that although these work on all timeframes, the lower in resolution one goes, the less gaps will be available due to data availability.
– This indicator works on charts that have the NDOG already present in chart (i.e. no crypto assets, unless one looks at CME crypto futures such as BTC1! and ETH1! ).
– The dollar index's NDOGs have a slightly different timestamp, however this has been taken care of and will allow to be plotted ONLY for the TVC:DXY ticker.
TrandingView struggles to display the indicator correctly for the default view, check out its accurate appearance here:
NWOG & Dynamic Event Horizon°The ICT concept of New Week Opening Gaps (NWOG) is simply an imbalance that manifests at each Week Opening time. This gap in price is formed by the Close on Friday at 5PM EST and the open of Sunday at 6PM EST.
According to ICT's studies, this gap in price holds a lot of significance when it comes to price action, acting as a magnet or a point of reference during the week (and following weeks).
The Event Horizon (EH) is simply the midpoint between two of these NWOGs. The EH can be very useful to determine where price is drawn towards from a liquidity perspective. If price reaches this level it is probable that it will continue to the next NWOG, as explained by ICT himself.
In my own studies I have noticed that price also tends to respect and use the Optimal Trade Entry (OTE) levels drawn from both NWOGs in question. OTE levels are nothing but fibonacci 0.79 – 0.705 – 0.68 levels.
I decided to put all of these into an indicator that dynamically selects the most relevant NWOG Dealing Range and plots their EH and OTE levels automatically.
Available Alerts:
– Cross Below Event Horizon
– Cross Above Event Horizon
– New NWOG Range Established
Important Remarks:
– Note that although these work on all timeframes, the lower in resolution one goes, the less gaps will be available due to data availability.
– This indicator works on charts that have the NWOG already present in chart (i.e. no crypto assets, unless one looks at CME crypto futures such as BTC1! and ETH1!).
– The dollar index's NWOGs have a slightly different timestamp, however this has been taken care of and will allow to be plotted ONLY for the TVC:DXY ticker.
TrandingView struggles to display the indicator correctly for the default view, check out its accurate appearance here:
Quantum Vector AlertsIts the part 2 of Multiple Indicators 50EMA Cross Alerts.
Its more suitable for the seconds chart. Beside, you can use it in higher timeframe.
The input bars length is the sample size that the code will use to trigger all alert. 20 mean 20 bar after the current candle.
When you activate volume alert you can select an amount of volume that when volume cross it you will be notified. The volume of every bar is displayed in the screener below volume.
In the section percentage vector counting the script do the sum of the red vector and green vector and give a ratio. In bullish vector count percentage for alert, you can select the percentage difference that you want to receive an alert. If your sample have 3 red vectors and 7 green vectors you will receive an alert saying that there is an imbalance of 70% showing more green vectors.
You can select a variant of percentage vector. The variant will do a summation of volume. If 1 vector candle is the size of the 3 other vector, they will have the same ponderation.
Normal alert counting count the number of vectors in the bars length. You can count the red and green candle only or add the blue and violet.
Bullish vector count will show a notification when the number of green candle will appear on the chart in the selected length. The same process is valid for bearish vector count. For example, if you want 3 bullish candle in 20 bar. You select bars length 20 and bullish vector count 3.
These alerts are suitable to the hybrid system. Thanks to our teacher Trader Reality and to all the member that contribute to this great discord community.
Automatic Closest FVG with BPRFair Value Gaps are a hugely popular concept and because of that there are numerous indicators available. This one however, was designed to automate the process of actually using them in trading.
Designed with lower time frame entries in mind (though will work on HTF just as well), this indicator automatically draws the closest, non-mitigated FVG, to the current price, cutting out the work of looking for what FVG is relevant.
The indicator also has an option to show when the current nearest pair of FVGs form a BPR or 'balanced price range'.
There are various option for what counts as mitigation, including no mitigation at all, and when mitigated an FVG is no longer considered for proximity searching.
Sonarlab - Trendline Liquidity Indicator**This is not a normal Trend Line Indicator**
Most of the concepts we get thought online are to good to be true. Buy and sell off the touch of the trend line and you will be winning! You probably find out already that this ain't the way to trade. Trend lines mostly gets broken and you will be taken out.
he reason behind this is that the trend lines sparks the interests of Institutions. They use those area's to stop people out and use them as fuel for their positions: Liquidity.
TLL: Trend Line Liquidity
Lets show you an example on how to use these TLL markings 👇
In this example above we can see a beautiful example of the TLL indicator mapping out the TLL. The Imbalance Indicator shows us with the BPR (balanced price range) there is a sign of going short. The other confluence we can add is the TLL, which price likes to clear in these situations.
In this other example we also see two TLL resting on top. We see that price tried to break the SL (swing low), but the fake out detection showed us this was a grab on liquidity. After that we can see that on the LTF we get a displacement and we can assume that price is going to target the TLL.
Another example where price cleared the TLL and used is a targets.
This indicator will map the Trend Line Liquidity for you, so you are more aware of the liquidity that is resting around you. The Indicator has the following inputs:
Sensitivity A lower sensitivity create smaller trend lines, where a higher sensitivity creates bigger trend lines.
Display limit : The amount of lines you want the indicator to display
Line type/ text size (styling options)
Smart Money Concepts (SMC) [LuxAlgo]This all-in-one indicator displays real-time market structure (internal & swing BOS / CHoCH), order blocks, premium & discount zones, equal highs & lows, and much more...allowing traders to automatically mark up their charts with widely used price action methodologies. Following the release of our Fair Value Gap script, we received numerous requests from our community to release more features in the same category.
"Smart Money Concepts" (SMC) is a fairly new yet widely used term amongst price action traders looking to more accurately navigate liquidity & find more optimal points of interest in the market. Trying to determine where institutional market participants have orders placed (buy or sell side liquidity) can be a very reasonable approach to finding more practical entries & exits based on price action.
The indicator includes alerts for the presence of swing structures and many other relevant conditions.
Features
This indicator includes many features relevant to SMC, these are highlighted below:
Full internal & swing market structure labeling in real-time
Break of Structure (BOS)
Change of Character (CHoCH)
Order Blocks (bullish & bearish)
Equal Highs & Lows
Fair Value Gap Detection
Previous Highs & Lows
Premium & Discount Zones as a range
Options to style the indicator to more easily display these concepts
Settings
Mode: Allows the user to select Historical (default) or Present, which displays only recent data on the chart.
Style: Allows the user to select different styling for the entire indicator between Colored (default) and Monochrome.
Color Candles: Plots candles based on the internal & swing structures from within the indicator on the chart.
Internal Structure: Displays the internal structure labels & dashed lines to represent them. (BOS & CHoCH).
Confluence Filter: Filter non-significant internal structure breakouts.
Swing Structure: Displays the swing structure labels & solid lines on the chart (larger BOS & CHoCH labels).
Swing Points: Displays swing points labels on chart such as HH, HL, LH, LL.
Internal Order Blocks: Enables Internal Order Blocks & allows the user to select how many most recent Internal Order Blocks appear on the chart.
Swing Order Blocks: Enables Swing Order Blocks & allows the user to select how many most recent Swing Order Blocks appear on the chart.
Equal Highs & Lows: Displays EQH/EQL labels on chart for detecting equal highs & lows.
Bars Confirmation: Allows the user to select how many bars are needed to confirm an EQH/EQL symbol on chart.
Fair Value Gaps: Displays boxes to highlight imbalance areas on the chart.
Auto Threshold: Filter out non-significant fair value gaps.
Timeframe: Allows the user to select the timeframe for the Fair Value Gap detection.
Extend FVG: Allows the user to choose how many bars to extend the Fair Value Gap boxes on the chart.
Highs & Lows MTF: Allows the user to display previous highs & lows from daily, weekly, & monthly timeframes as significant levels.
Premium/Discount Zones: Allows the user to display Premium, Discount, and Equilibrium zones on the chart
Usage
Users can see automatic CHoCH and BOS labels to highlight breakouts of market structure, which allows to determine the market trend. In the chart below we can see the internal structure which displays more frequent labels within larger structures. We can also see equal highs & lows (EQH/EQL) labels plotted alongside the internal structure to frequently give indications of potential reversals.
In the chart below we can see the swing market structure labels. These are also labeled as BOS and CHoCH but with a solid line & larger text to show larger market structure breakouts & trend reversals. Users can be mindful of these larger structure labels while trading internal structures as displayed in the previous chart.
Order blocks highlight areas where institutional market participants open positions, one can use order blocks to determine confirmation entries or potential targets as we can expect there is a large amount of liquidity at these order blocks. In the chart below we can see 2 potential trade setups with confirmation entries. The path outlined in red would be a potential short entry targeting the blue order block below, and the path outlined in green would be a potential long entry, targeting the red order blocks above.
As we can see in the chart below, the bullish confirmation entry played out in this scenario with the green path outlined in hindsight. As price breaks though the order blocks above, the indicator will consider them mitigated causing them to disappear, and as per the logic of these order blocks they will always display 5 (by default) on the chart so we can now see more actionable levels.
The Smart Money Concepts indicator has many other features and here we can see how they can also help a user find potential levels for price action trading. In the screenshot below we can see a trade setup using the Previous Monthly High, Strong High, and a Swing Order Block as a stop loss. Accompanied by the Premium from the Discount/Premium zones feature being used as a potential entry. A potential take profit level for this trade setup that a user could easily identify would be the 50% mark labeled with the Fair Value Gap & the Equilibrium all displayed automatically by the indicator.
Conclusion
This indicator highlights all relevant components of Smart Money Concepts which can be a very useful interpretation of market structure, liquidity, & more simply put, price action. The term was coined & popularized primarily within the forex community & by ICT while making its way to become a part of many traders' analysis. These concepts, with or without this indicator do not guarantee a trader to be trading within the presence of institutional or "bank-level" liquidity, there is no supporting data regarding the validity of these teachings.
[FrizLabz]FVG Bar
For those of you that like to keep your charts nice and tidy for your Technical Analysis!
FVG = Fair Value Gap
Fair Value Gaps are when impulse movements create an imbalance in price leaving unfilled orders.. they are popular because after one is created we often observe price return to fill these unfilled orders
3 candles make a FVG
When the high/low of most recent candle is lower/high than the low/high of the bar before last
Similar to my other FVG indicator but this one allows you to delete Filled FVGs and have them adjust when filled
Uses a line whose x1 and x2 are on the FVG bar and adjust the size of the FVG with line width because line width on line.new()s doesnt have a cap on line width like plot()s do
Not much too it I made this because a few people were asking if they could delete the FVG after it was Mitigated and since my other uses plots it wasnt possible
so I hope this works for those who were asking about it
hope you enjoy please let me know if you have an idea or find a bug,
Thank You! -
[FrizLabz]MTF FVGMulti-TimeFrame FVGs
FVG = Fair Value Gap
an FVG indicates an impulsive move which leaves unfilled orders in the imbalance to which usually we observe price return to and fill the unfilled orders
also an indication of BIG Money entering the market
To be used with your Top-Down analysis with Smart Money Strategies
6 Options for TFs
Best to Check Multipule TFs since some of the FVGs will be mitigated around Creation because the indicator uses the high and low of current chart
Let me know if you find any bugs Please and Thank you
FVG Finder (MONEYTALLKERS)An indicator for determining Imbalance in the market structure. It will help you identify important areas where market algorithms have failed.
ECHO FX IMBALANCE CANDLEThis indicator helps with ECHO TRADING GROUPS trading style in order to find institutional order zones. It repaints the candles which are less than 50% made up of body rather than wick. It will color those candles in blue, but the user can change the color to what they desire. By spotting these zones it can help identify potential supply and demand areas. Which help us traders find and use the mechanical edge.
The script and indicator simply put, indicates where there is indecesion in the market.
vStrat Algo 2.0vStrat Algo 2.0 is a Non-Repainting toolkit that works on any market such as stocks, crypto, forex, indices, commodities, etc. There are 8 advanced features that traders can use to help them create their own strategies. vStrat Algo 2.0 offers 10 sensitivity presets that they can choose from, making this toolkit suitable for every trading style whether it's scalping, day trading, swinging, or position trading.
I. Non-Repainting
When an indicator is Repainting , it changes its values as new data arrives, making it an unreliable indicator especially for Buy and Sell signals but this does not necessarily mean that the indicator is less accurate. vStrat Algo 2.0 does not repaint so the signals that were triggered in real time will stay the same during backtesting. If Non-Repainting is disabled, the signal that was triggered on a candle might disappear as new data arrives and once that candle closes, the signal might not even be there anymore, but it could get triggered on the next candle instead.
II. Signal Sensitivity
The Buy and Sell signals are highly accurate but the placement of each signal will differ for each selected preset. The higher the sensitivity (3.0 - 5.0), the more signals will be displayed on the chart. This setting works well when scalping using lower timeframes (1 min - 5 min). As the sensitivity lowers (0.5 - 2.5), less signals are displayed on the chart. If you are day trading or swinging, the lower presets are recommended as they are smoothed and will have less noise. Lower sensitivity works well on any timeframe.
III. Safe Mode
This feature hides any Buy and Sell signals that are triggered within the Consolidation Zones. The signals can still vary depending on the sensitivity, CZ Smoothing and CZ Length. The default setting is "3" and "7". "Unfiltered" must be unchecked for the signals to disappear.
IV. Unfiltered Signals
All Buy and Sell signals are displayed on the chart. This feature must be disabled if "Safe Mode" is enabled.
V. Trend Candle Colouring
This changes the bar colors depending on its trend. Green if it's trending up and red if it's trending down.
VI. Trend Cloud
Trend Cloud indicates the current market trend. This can also be used as a confluence to the Buy and Sell signals. Wider cloud indicates a strong momentum on either direction. As the cloud narrows, it could mean a possible reversal.
VII. Pivot Points
Pivot Points are useful for identifying significant support and resistance levels as well as identifying entry, exit, stop loss, and target profit levels.
VIII. Consolidation Zones
Consolidation Zones can be used to identify if the market is ranging. If enabled, it changes the colors of the bars that have low momentum to yellow. It is best to wait for a breakout to enter a trade but you can still be profitable when the market is ranging by trading based off Support and Resistance Levels and Imbalance Zones. Default setting is: Smoothing "3" and Length "7".
IX. Take Profit Levels
Take Profit signals are displayed on the chart as yellow "x". Once the algo detects a potential reversal, a Take Profit signal will be triggered so the user can lock in their profits. The signals can appear more than once so you have the option to keep holding as long as you know the risks. The lower the Length is, the more signals appear.
X. Alerts
Buy and Sell signal alerts can be created by clicking the three dots in the vStrat Algo 2.0 indicator tile.
Disclaimer:
All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed, or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. Conduct your own due diligence or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed, or implied herein, are committed at your own risk, financial or otherwise.
Smart Money Concept (Expo)Are you Trading SMC? - Are you willing to learn how to apply SMC techniques? - Great, this indicator is for you!
█ This Smart Money Concept ( SMC ) indicator is a sophisticated and highly innovative indicator that combines all the necessary features to trade SMC trading techniques. It is built off of Smart Money Concepts inspired by inner trader circle (ICT) teachings. Smart Money is considered the capital allocated by institutional investors, funds, and other larger financial market participants. This indicator takes the Institutional trading behavior and makes it accessible to retail investors. By using an SMC indicator, you get professional insights into the market.
█ This indicator provides you with all of the most important SMC principles in one indicator. Fully automated and real-time Break of Market Structure, Change of Character, Current Trading Range, Premium & Discount , Fractals, and Swing Structure. In addition to the most important features, we have added a highly unique SMC Market Structure Trend based on the market structure principle. A confirmed swing structure trend background enhances the trend feature even more.
Swing Structure
Identifying major market structures with the indicator.
Current Trading Range
The Range feature ensures that traders always know where the current range is and where to find Premium and Discount within that range. In addition, the range is updated in real-time without any delay.
Premium & Discount Zones
Identifying Premium and Discounts zones automatically for you.
Structure break
Break of Market Structure ( BMS ) and Change of Character ( CHoCH ) - are automatically identified and plotted in real-time.
Supply and Demand
Use our Supply/Demand indicator to identify high probabilities trading zones.
█ HOW TO USE
Use the indicator to trade SMC Trading techniques.
Use the indicator to understand the current market structure.
Use the indicator to identify the current range and premium and discount levels.
█ Settings
The Market structure period is fully customized and can be adjusted to fit Swing Trading, Trend Trading, Day Trading, or Scalping.
The indicator works in any market and timeframe.
█ Basic Terminology
S&D - Supply & Demand
S2D - Supply to Demand
D2S - Demand to Supply
OB - Orderblock
AOI - Area of Interest
POI - Point of Interest
LOR - Level of Respect
FLOR - First Level of Respect
IMB - Imbalance
INF - Inefficiency
FVG - Fair Value Gap
IRL - Internal Range Liquidity
ERL - External Range Liquidity
HH - Higher High
HL - Higher Low
LL - Lower Low
LH - Lower High
BOS - Break of Structure
BMS - Break of Market Structure
mBOS - Minor Break of Structure
SMS - Shift in Market Structure
CHoCH - Change of Character
mCHoCH - minor Change of Character
EQH - Equal Highs
EQL - Equal Lows
BSL - Buy Side Liquidity
SSL - Sell Side Liquidity
LQ - Liquidity
EQ - Equilibrium
PA - Price Action
MTF - Multi Timeframe
HTF - Higher Timeframe
LTF - Lower Timeframe
PT - Protrend
CT - Counter trend
OF - Orderflow
EOF - Expectational Orderflow
LOD - Low of the Day
HOD - High of the Day
HOW - High of the Week
LOW - Low of the week
RE - Risk Entry
CE - Confirmation Entry
DCE - Double Confirmation Entry
SL - Stop loss
RR - Risk Reward
BFI - Banks & Financial Institutions
Hedgies - Hedge Funds
-----------------
Disclaimer
Copyright by Zeiierman.
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
[VC] Cumulative Delta PLUS It is a Merged Version of our following two indicators.
V.C Box Chart Histogram
&
V.C Cumulative Delta Histogram.
We merged them at the user's request & convenience. This merged version also helps to save space for other indicators.
Description & Usage
Description & Usage will remain the same as described in individual descriptions of the above-mentioned parent indicators. Only one additional input is added to adjust the scale, named "Scale_Setting''.
Because now it's a merged version of 2 different indicators & both indicators have their different scale levels. To bring both indicators on an equal scale so that they can be visualised better, we have added scale adjustment settings that are easy to understand. Let's elaborate it.
Scale adjustment settings belong to the Cumulative length of the ' 'Cumulative Delta Indicator'' . Keep in mind that the best scale setting is keeping the scale setting values near or equal to cumulative length.
For example:
If you set cumulative length 20, the scale setting value should also be 20 or near 20 (like 17, 18, 19 etc.). (It depends on you, how large cumulative columns you want to see relative to Box chart Histogram)
Note: Any scale setting value can be used, it only affects visuals, not the actual calculations.
Disclaimer Note:
V.C Cumulative Delta Histogram It is purely Volume, Delta, Demand & Supply imbalance and comparative analysis-based tool. Before applying this Indicator to your study, you should clear your concepts about Volume, Delta & Spread, Demand & Supply, and Aggressive & Passive behaviour of buyers/sellers.
Some basic understanding of Sir Richerd Wyckoff's Theory can also be helpful.
ICT Index Futures Session LinesICT Index Futures Session Lines
Description:
The script is based on one of ICT's concepts on trading Index Futures. The script lays out the daily range from an intraday basis.
Range:
00:00 - New York Midnight
08:30 – New York Open (News events come out)
12:00/13:00 - New York Lunch (No trade time period)
13:30 - (Algorithm)
16:30 - Close
* The open, high and low lines are plotted from 00:00 to 08:30
How To Use:
You will need to check the daily bias. Prior to 8:30 you are to look for previous swing points where liquidity may exist. During the open you want to see if a high or low is taken out, and then wait for an energetic break/displacement for a potential FVG/imbalance retracement entry.
Strategy is for LTF (1 to 15m)
Default time zone is set to America/New_York (UTC New York), so lines will be plotted correctly regardless of user’s local UTC chart setting.
Multi-TimeFrame Extremum Points Support/ResistanceIntroduction
This is my newest Support/Resistance indicator based on the idea of my previous script which had been featured in Editors' Picks .
Everyone seems to have their own idea of how you should measure support and resistance levels. This code finds the exact highest and lowest price points (Extrema) on the chart and then draws the support and resistance levels on them.
In my opinion, the advantage of this method is that the most powerful resistance/support levels which usually cover the supply/demand areas would be formed on these extremum points, as the following facts state.
Facts
1. Support and resistance levels are one of the key concepts used by technical analysts and form the basis of a wide variety of technical analysis tools. Technical analysts use support and resistance levels to identify price points on a chart where the probabilities favor a pause or reversal of a prevailing trend.
2. Supply and demand zones are natural support and resistance levels and a popular analysis technique used in day trading. The zones are the periods of sideways price action that come before explosive price moves. A supply zone forms before a downtrend and a demand zone forms before an uptrend. When the price leaves the supply/demand zone and starts trending, the strong imbalance between buyers and sellers leads to strong and explosive price movements.
3. Based on Dow Theory, trends persist until a clear reversal occurs. A reversal is a change in the price direction of an asset. Reversals typically refer to large price changes, where the trend changes direction.
Challenges
The most challenging part in implementing a S/R indicator which draws all the levels on the chart is the problem of congestion!
But we should notice two other facts:
1. The more times the price tests a support or resistance area, the more significant the level becomes.
2. A previous support level will sometimes become a resistance level when the price attempts to move back up, and conversely, a resistance level will become a support level as the price temporarily falls back.
So, I solved the problem using these two approaches:
Merging nearby levels and showing the role of the levels in colors and numbers
Avoiding many weaker levels by checking higher time frames
Settings and Usage
There are some options in the indicator settings as described below:
Calculations Time Frame: By changing the time frame, user could keep only the stronger S/R levels on the chart.
Level Colors: By default, lowest points (Supports) are green, highest points (Resistances) are red and merged levels are blue. Note that the transparency of the colors would be calculated automatically; The more opaque the color is, the stronger the level is!
Lines Style and Width: The style of the levels could be solid, dashed or dotted and user could also change the lines width in pixels.
Length of the lines: This option is based on the count of bars, but user could simply choose to extend the levels
Merge Nearby Levels: The proximity of the levels would be calculated automatically based on ATR (Average True Range) and the default length of the formula could be changed.
Labels: Each level could have a label consisting the count of merged levels into one, the percentage of merged supports/resistances and the price of the level. Note that if user choose to see the percentage of S/R roles, the color of each label changes automatically based on the main role of corresponding merged level (e.g., a blue level with a red label means that the level more acted as resistance).
I think the users of my previous S/R indicators could check this one
That's it for now! Feel free to send me your thoughts!
[blackcat] L3 Supply and Demand Zones MTFLevel: 3
Background
Supply and Demand represent the two most powerful forces of the market. Demand means the number of buyers buying a security in the market. Supply means the number of sellers selling a security in the market. Large supply takes the price to move down and large demand takes the price to move up. Balance in both forces will keep the price in sideways movement. There are two types of states of the price of a security in technical analysis. 1. Balanced state; 2. Unbalanced state. In a balanced state, the price is moving in a range like moving sideways. Simply means forces of buyers and sellers are balanced. Both of them don’t have the ability to create a trend either bearish or bullish trend. After breakout of this sideways (range) movement of price, imbalance in price occur. And after the breakout, the recent range will be called a base zone and the price will again come to this base zone to pick unfilled orders.
Function
This is a composite supply and demand zone indicator, which inlcude:
1. demand and supply zones: yellow color box for demand zone while fuchsia color box for supply zone
2. half-semi log based fibo levels
3. multiple time frame (MTF) manual or automatic setting to see clear trend
4. tendline drawing. Default 610 bars back to draw, you can change it to your preferred value. However, you need to guarantee the existing chart already have equal or more than the number of bars you set or 610 bars.
5. blackcat reveral labels
6. box color to indicate volume information as:
box border color is green --> bullish
box boarder color is red --> bearish
box body color meanings:
a. turquoise or aqua or cyan box body color --> no volume indicaor signal or NA --> no supply and demand signal
b. red box body color --> volume climax up - strong bullish high volume --> demand >> supply
c. white box body color --> volume climax down - strong bearish high volume --> supply >> demand
d. green box body color --> high volume churn - bars with high volume and low range --> suppy and demand is balancing
e. yellow box body color --> low Volume - bar for low volume --> bullish/bearish trend is exhausted, reversal may happen soon --> supply or demand dominance will be changed soon.
f. fuchsia box body color --> volume climax plus high volume churn --> two possibilities: red+green=fuchsia or white+green=fuchsia, so fuchsia is a mixed state --> srong demand with supply attack or strong supply with demand attack.
Remarks
Free but closed sourced.
If the trendline is not drawn but you can see the red resistance and green support dashed lines, please drag the the chart to the left unitl you see the yellow solid trend line appears.
This is the initial version. This will be contineously improved along time.
MarketReader_StrategyMarketReader_Strategy is a very useful and advanced indicator:
- It draws buying (green) and selling (orange) zone .
-Once the buying or selling zone is tapped, the color is automatically changed to grey
-It shows liquidity pool ($$$) engineered by market behaviour
Buying or selling area are determined by an algorithm that combines volume profile, Elliott Wave principles and order flow delivery .
On the above example:
At “1” , you can see that the first buying zone is drawn since January 12
At “2” , the buying zone is tapped on January 18 with a strong bullish reaction.
At “3” and “3’” , you can see that liquidity pool has been created by market maker on both buying and selling side. It is typical of market behavior.
Market maker will take the downside liquidity by targeting the buying zone and then reverse (to the upside) targeting the upside liquidity pool that fuel the pump to the selling zone “4” . This selling zone is reached at “5” with a strong bearish reaction.
“6” represent active buying zone, waiting to be tapped.
To buy or take profit on these areas will depend on market behavior on the way down. Does the market engineer liquidity before? We use 2 complementary indicators helping us to take position on these areas but feel free to experiment with your own.
Usually, I wait price comes to selling or buying zone, then I go on lower timeframe (15 to 30 times lower) searching for divergences and convergences on Momemtum reader (also available on tradingview)
This indicator does not repaint and works on Forex, Crypto, Indices, Commodities and stock.
Supply and DemandOur Indicator “Supply and Demand” offers an insight into the structure of any given Instrument applied to. Understanding Supply and Demand is essential for using this Indicator. If you are familiar with the concept, then you will most likely find this indicator useful in your trading. If you are unfamiliar with the concept and are interested then continue reading a “Brief Concept of Supply and Demand” at the end of the description, where we will provide some informational Links.
This description will provide a High Level description of how our Indicator identifies and visualizes Supply and Demand, followed by how to use the Indicator in your trading. At the end we would like to introduce our team and experience.
High Level Description of “Supply and Demand”:
Our indicator searches for price zones where the current Instrument has experienced a significant liquidity imbalance in the recent relative past. Our indicator uses a Multi timeframe approach to identify these areas. These Zones will be referred to as “Active Zones” from now on.
When Price exceeds the outer boundary of the Active Zones, then this Supply or Demand Zone will be identified as “Expired”, and the zone is no longer in play. These Zones will be referred to as “Expired Zones” from now on.
Visualisation:
What do the Boxes mean:
Our Indicator visualises active Supply and Demand Zones. Supply zones are red and Demand Zones are green. Furthermore, our indicator shows a brief history of Expired Supply and Demand Zones. These Zones have the same color as the active Supply and Demand Zones, just with a higher color transparency so that you can distinguish between active and Expired Zones.
The boxes start at the time where the supply/demand has occurred historically, providing a simple method to review the Market reaction to the historic supply/demand event.
History:
Due to the high calculation effort, the history is limited to 20 Zones in total. All zones prior to that will not be displayed.
Important:
All Zones will not be repainted. That being said, once our indicator has started displaying a Zone, then it will be visible until it exceeds the 20 Zone history limit and “falls of” the chart.
How to use it:
Approaching an Active Supply/Demand Zone:
When price is approaching or entering an active Supply/Demand Zone, look for reversal patterns you are familiar with. It is important that you have a tested method behind your entry and exit strategy. Please note, that the indicator itself just presents price areas where there is a potential for a price reversal, and that these levels should not be traded blindly.
Expired Supply/Demand Zones:
Expired Supply and Demand Zones are mainly just to provide a small History of Supply and Demand Zones to you. There are more advanced concepts for also using Expired Supply and Demand Zones in your Trading, but this is not the focus of this Indicator.
Time frame:
This indicator is programmed to be used on all Timeframes.
Instruments:
This indicator aims to visualize areas of where Market price has the potential to reversal, hence this is a mean reverting Indicator.
Taking this statement to account, it is recommended to apply this Indicator to Instruments with a mean reverting character.
Examples of mean reverting markets could be for example …
...all FOREX instruments, as FOREX is considered a mean reverting Market.
...an instrument that is in a consolidation, or which you are expecting to enter a period of consolidation.
Indicator settings and configuration:
The Indicator has no functional parameters, to reduce User error, and only has visual parameters. The color of the Supply and Demand Zones can be tailored to your liking.
Brief concept of Supply and Demand:
Supply and Demand is a concept that has been around for a very long time. Following links are helpful to get a grasp of the concept:
en.wikipedia.org www.investopedia.com
www.investopedia.com
Our Team:
We are a team of 3 Traders with a combined experience of 40 years. We are using our experiences from the market to create Indicators to Visualize the most relevant Patterns to us in our trading today. Our goal is to reconstruct these patterns to match our understanding of the market and to simplify the process of creating reproducible trading Strategies.
TradeGuider VSA LiteThe TradeGuider VSA Lite package is designed for those traders who want to trade in harmony with the professionals (‘smart money’) and is based on Tom Williams’ Volume Spread Analysis methodology (VSA). It works in any market and any time frame. The trader can use it as a standalone toolkit to support their trading decisions, or in conjunction with other trading tools to obtain additional confirmations.
The package consists of two parts:
TradeGuider VSA Lite indicator
TradeGuider Relative Volume indicator
The TradeGuider VSA Lite indicator provides information about the imbalance between supply and demand on the price charts via VSA principles. The VSA principles introduced in this indicator can be divided into two groups: Signs of Strength (SOS) and Signs of Weakness (SOW). The following six VSA principles are implemented:
SOSs: Potential Professional Buying (PB), Shakeout (SO), Test (TE)
SOWs: Potential Professional Selling (PS), Upthrust (UT), No Demand (ND)
VSA principles ARE NOT BUY and SELL SIGNALS on their own, but in combination may create VSA Setups to the long and short sides which are used in the VSA methodology to identify low-risk entries into, and optimal exits from, a trade.
A potential VSA Setup to the long side means that strength is presented on that particular chart at the current moment and the following conditions are present:
Potential Professional Buying (PB) is found in the background.
The price has risen above the high of the Potential Professional Buying (PB).
The price behavior has changed to the upside (the Short Term Trending Tool is changing color from red to gray or green).
The confirmation (a Test) is identified.
With a VSA Setup to the long side and strength on higher time frames, the price very often moves higher and the user may trade it.
A potential VSA Setup to the short side means that weakness is presented on that particular chart at the current moment and the following conditions are present:
Potential Professional Selling (PS) is found in the background.
The price has moved below the low of the Potential Professional Selling (PS).
The price behavior has changed to the downside (the Short Term Trending Tool is changing color from green to gray or red).
The confirmation (a No Demand) is identified.
With a VSA Setup to the short side and weakness on higher time frames, the price very often moves lower and the user may trade it.
The TradeGuider VSA Lite indicator is equipped with alerts which, when set, inform users of VSA Setups as they appear.
See the Author's instructions below to get access to this package and the accompanying documentation.
DISCLAIMER: The TradeGuider VSA Lite package is developed for educational purposes only. None of the content including the alerts should be considered as financial or investment advice. Investments are always made at your own risk and are based on your personal evaluations. We cannot be held responsible for any losses you may have. Please trade sensibly and carefully and only when you have a clear understanding of what is happening in the markets.
MostPower MagicBox - PremiumMostPower MagicBox - Premium - This indicator is designed to find support and resistance levels in real time.
How to use ?
Yellow line - This is the main level
The red and green lines are the boundaries of the main level.
You can enter a deal both from the main level and from its border, which is a safer deal.
In the settings, you can select the mode of operation of the levels you need, the timeframe for the calculation and configure it as you need.
It is important to understand that this must be used by everyone in a company with an overall trading strategy.
Settings:
There are three types of quality levels
Weak - displays weaker levels suitable for shorter-term trades.
Medium - displays average quality levels, suitable for more average deals.
Strong - displays strong quality levels, suitable for longer trades (recommended).
Timeframe
In the Timeframe settings you can select the desired timeframe for the calculation.
Traps
Short squeeze from below (long ones not in traps)
Sellers ran into the boundaries of the red line. A balance to lower prices began to form. This is the end of the trend continuation. If we decode the data correctly, it will indicate to us that the market agrees to a decline.
The fact that a strong main (yellow) level is formed below and the price is below it indicates that the market is not interested in taking profit. Therefore, any potential rebound is likely to cause sellers to rapidly increase their short positions. This is a pattern that can lead to a slight pullback before the trend continues.
Short top pull (long into traps)
All of the buyers at the top who contributed to the increase in value are now trapped, which means that any bounce to the major (yellow) level is an interesting proposition to add short positions, especially if it is orphaned by the main trend.
Unlike a downtrend structure, this short tends to bounce more as market participants cannot find a good spot. This ultimately leads to exhaustion before a potential price recovery (expected rebound) within the market pricing mechanism. When this pattern occurs, any continuation of the decline without a prior bounce carries the risk of exhaustion and capture of slow and weak sellers, unless there is a significant increase in the value of these newly formed lower prices.
Below I will show one of the possible nuances that you may encounter.
We see that the red line has accumulated many buyers, but they could not make up some value in combination with the closing of the price below the main (yellow) level, it screams about danger.
Long Bottom Zip (Shorts in Traps)
Unlike in the past, we now find ourselves with a bullish structure forming a downward squeeze.
When this happens, our hypothesis should always be that until new pockets of liquidity are created for the longs at these highs, this type of structure will run the risk that the move will end (exhaustion), leading to a strong pullback. It is in this type of retracement that we can see the best opportunities for long as price returns to retest the area in which sellers were trapped earlier.
Long top zip (no shorts in traps)
In this situation, there is a risk of an immediate continuation of the trend. If you look at the example graph below, this is exactly the case when buyers will not be overwhelmed by the imbalance in the supply.
Despite the backward environment, the environment will still be favorable for the search for buying opportunities as the latest data suggests that both buyers and sellers have agreed to higher price levels.
When these structures emerge, buyers who have maintained such a high price are not going to give up without a fight, and this is where downturn buying opportunities tend to arise. This pattern tends to create an initial false move that depletes itself before price magnetically pulls back to the previous major (yellow) level where the next battle will take place.
Putting it all together
We have come to the end of this tutorial. Remember, you must consider these new concepts as part of a holistic approach to markets. If you don't understand your surroundings without doing proper multi-timeframe research, you may be missing out on some of the picture.
Volume Profile [LuxAlgo]Displays the estimate of a volume profile, with the option to show a rolling POC (point of control). Users can change the lookback, row size, and various visual aspects of the volume profile.
Settings
Basic:
Lookback: Number of most recent bars to use for the calculation of the volume profile
Row Size: Determines the number of rows used for the calculation of the volume profile
Show Rolling POC: Determines whether to display the rolling POC of the volume profile
Style:
Width (% of the box): Determines the length of the bars relative to the Lookback value
Bar Width: Width of each bar
Flip Histogram: Flips the histogram, when enabled, the histogram base will be located at the most recent candle
Gradient: Allows to color the volume profile bars with a gradient, with a color intensity determined by the length of each bar
Rows Solid Color: Color of each bar when 'Gradient' is disabled
POC Solid Color: Color of the POC when 'Gradient' is disabled
Usage
It is very common to display volume over time in order to visualize the trading activity made over a specific candle, however this is not the only way to display volume and it can be interesting to put it in relation with the price, which is what volume profiles do.
Volume profiles are displayed as price relative histograms showing the accumulated volume within certain price areas, the number of areas are determined by the row size of the volume profile. Knowing which price's area accumulated the most volume allow highlighting areas of interest to market participants.
Most accumulated volume will be encountered in zones of equilibrium between buyers and sellers; that is zones of local price stationarity. These zones are highlighted by high volume nodes in the volume profile. Imbalance between buyers and sellers are highlighted by thinner zones of the volume profile.
The price level with the most accumulated volume is highlighted by the "point of control" (POC), displayed by the dotted line in the indicator.
The POC is often considered an important level, commonly used as support/resistance by traders. One can verify the accuracy of this use case by using the rolling POC (assuming one would use the POC over time as SR).
Indicator Limitations
Volume profiles are calculated using tick data, which is not the case of this estimate, as such you won't have an accurate representation of an actual volume profile.
The rolling POC can introduce time outs in the script computation, use lower lookback and row size value to display it.
Price Action - Support & Resistance by DGTSᴜᴘᴘᴏʀᴛ ᴀɴᴅ Rᴇꜱɪꜱᴛᴀɴᴄᴇ , is undoubtedly one of the key concepts of technical analysis
█ Sᴜᴘᴘᴏʀᴛ ᴀɴᴅ Rᴇꜱɪꜱᴛᴀɴᴄᴇ Dᴇꜰɪɴɪᴛɪᴏɴ
Support and Resistance terms are used by traders to refer to price levels on charts that tend to act as barriers, preventing the price of an financial instrument from getting pushed in a certain direction.
A support level is a price level where buyers are more aggressive than sellers. This means that the price is more likely to "bounce" off this level rather than break through it. However, once the price has breached this level it is likely to continue falling until meeting another support level.
A resistance level is the opposite of a support level. It is where the price tends to find resistance as it rises. Again, this means that the price is more likely to "bounce" off this level rather than break through it. However, once the price has breached this level it is likely to continue rising until meeting another resistance level.
A previous support level will sometimes become a resistance level when the price attempts to move back up, and conversely, a resistance level will become a support level as the price temporarily falls back.
█ Iᴅᴇɴᴛɪꜰʏɪɴɢ Sᴜᴘᴘᴏʀᴛ ᴀɴᴅ Rᴇꜱɪꜱᴛᴀɴᴄᴇ
Support and resistance can come in various forms, and the concept is more difficult to master than it first appears. Identification of key support and resistance levels is an essential ingredient to successful technical analysis.
If the price stalls and reverses in the same price area on minimum of two different occasions, then a horizontal line is drawn to show that the market is struggling to move past that area. Those areas are static barriers, one of the most popular forms of support/resistance and are highlighted with horizontal lines.
Repeated test , the more often a support/resistance level is "tested" over an extended period of time (touched and bounced off by price), the more significance is given to that specific level
High volume , the more buying and selling that has occurred at a particular price level, the stronger the support or resistance level is likely to be
Market psychology , plays a major role as traders and investors remember the past and react to changing conditions to anticipate future market movement.
Psychological levels , is a price level that significantly affects the price of an underlying financial instrument. Typically, near round numbers often serve as support and resistance
The following support and resistance related topics are beyond the scope of this study, so they will be mentioned roughly only as a reference for support and resistance concept
Trendlines , Support and resistance levels in trends are dynamic. Throughout an uptrend, levels of support tend to look like a trendline, usually clustering around higher lows. As the price rises, the price where buyers consider the stock to be “too cheap” also changes, which creates new support levels on the way up. The same is also true for resistance levels. In an uptrend, a stock is continuously breaking through perceived resistance levels and making new highs
Moving Averages , is a constantly changing line that smooths out past price data while also allowing the trader to identify support and resistance. In the example Notice how the price of the asset finds support at the moving average when the trend is up, and how it acts as resistance when the trend is down
The Fibonacci Retracement/Extension tool , is a favorite among many short-term traders because it clearly identifies levels of potential support and resistance
Pivot Point Calculations , is another common technical analysis technique, where pivot point is calculated based on the high, low, and closing prices of previous trading session/day and support & resistance levels are projected based on the pivot point, different calculation techniques are available, as presented in this example of an pivot point indicator : PVTvX by DGT
█ Tʀᴀᴅɪɴɢ Bᴀꜱᴇᴅ ᴏɴ Sᴜᴘᴘᴏʀᴛ ᴀɴᴅ Rᴇꜱɪꜱᴛᴀɴᴄᴇ
Once an area or "zone" of support or resistance has been identified, those price levels can serve as potential entry or exit points because, as a price reaches a point of support or resistance, it will do one of two things—bounce back away from the support or resistance level (trading ranges), or violate the price level and continue in its direction (trading breakouts) —until it hits the next support or resistance level
The basic trading method for using support and resistance is to buy near support in uptrends or the parts of ranges or chart patterns where prices are moving up and to sell/sell short near resistance in downtrends or the parts of ranges and chart patterns where prices are moving down. Buying near support or selling near resistance can pay off, but there is no assurance that the support or resistance will hold. Therefore, consider waiting for some confirmation that the market is still respecting that area
Trading breakouts, a breakout is a potential trading opportunity that occurs when an asset's price moves above a resistance level or moves below a support level on increasing volume. The first step in trading breakouts is to identify current price trend patterns along with support and resistance levels in order to plan possible entry and exit points. Once the asset trades beyond the price barrier, volatility tends to increase and prices usually trend in the breakout's direction. Breakouts are such an important trading strategy since these setups are the starting point for future volatility increases, large price swings and, in many circumstances, major price trends. When trading breakouts, it is important to consider the underlying asset's support and resistance levels. The more times an asset price has touched these areas, the more valid these levels are and the more important they become. At the same time, the longer these support and resistance levels have been in play, the better the outcome when the asset price finally breaks out. Asset prices will often move slightly further than we expect them to. This doesn't happen all the time, but when it does it is called a false breakout. Therefore it is important to consider waiting for some confirmation while trading breakouts. It’s also popular for traders to sell 50% of their positions at the resistance level, and hold the rest in anticipation of a breakout above resistance
█ Pʀɪᴄᴇ Aᴄᴛɪᴏɴ - Sᴜᴘᴘᴏʀᴛ & Rᴇꜱɪꜱᴛᴀɴᴄᴇ ʙʏ DGT Sᴛᴜᴅʏ
This experimental study attempts to identify the support and resistance levels. Assumes a simple logic to discover moments where the price is rising or falling consecutively for minimum 3 bars with the condition volume increases on each bar and the last bar’s volume should be bigger than the long term volume moving average. A line will be drawn at the end of the move (highest or lowest, depending on the move direction), the line will be drawn at minimum on the 3rd bar and if condition holds for other consecutive bars the line will switch to 4th, 5th etc bar.
Lines will not be deleted so the historical ones will remain and will emphasis the levels significance when they overlap in feature. Strong levels are more likely to hold and cause the price to move in the other direction, whereas the minor levels may only cause the price to pause and keep moving in the same direction. Determining future levels of support and resistance can drastically improve the returns of a short-term investing strategy
Bar colors will be painted based on the volume of the specific bar to its long term volume moving average. This will help identifying the support and resistance levels significance and emphasis the sings of breakouts
Finally, Volume spikes will be marked on top of the price chart. A high volume usually indicates more interest in the security and the presence of institutional traders. However, a rapidly rising price in an uptrend accompanied by a huge volume may be a sign of exhaustion. Traders usually look for breaks of support and resistance to enter positions. When security break critical levels without volume , you should consider the breakout suspect and prime for a reversal off the highs/lows. Volume spikes are often the result of news-driven events. Volume spike will often lead to sharp reversals since the moves are unsustainable due to the imbalance of supply and demand
A good example with many support and resistance concepts observed on a stock chart and detected by the study
Settings:
Length of volume moving average, where volume moving average is used to detect support and resistance levels, is used as reference to compare with threshold values for volume spikes and colors of the bars
Hint, to get more historical lines scrolling chart to left will enable visualization of them. Please note they may appear to much all 500 line limit is used 😉
Special thanks to @HEMANT Telegram user, for his observations and suggestions
Disclaimer:
Trading success is all about following your trading strategy and the indicators should fit within your trading strategy, and not to be traded upon solely
The script is for informational and educational purposes only. Use of the script does not constitute professional and/or financial advice. You alone have the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd TradingView user liable for any possible claim for damages arising from any decision you make based on use of the script
