Master Pattern [UAlgo]🔶 Description:
"Master Pattern by UAlgo" aims to identify and visualize "Master Patterns" in price movements on financial charts, and focusing on detecting liquidity levels and sweeps. The indicator provides users with the ability to customize settings such as master pattern detection and detection flexibility, sensitivity to liquidity levels, and visualization preferences.
🔶 What is the Master Pattern ?
The Master Pattern is a framework built around understanding market cycles, which include three main phases: Contraction, Expansion, and Trend.
Contraction Phase: During this phase, the market fluctuates less and consolidates within a narrow range. Institutional trading volumes tend to be low and it is recommended to avoid trading entries during this period.
Expansion Phase: volatility increases and prices fluctuate greatly. Institutional traders begin to establish positions at this stage and may manipulate prices to attract retail traders to create liquidity for their own buy or sell targets.
Trend Phase: The final phase that completes the market cycle. Institutional traders started taking profits, causing the trend to reverse. This triggered panic among retail traders, leading to liquidations and stop-losses. This creates liquidity from which institutional traders can profit, while retail traders' positions are overvalued.
🔶 Key Features:
Pattern Detection : The indicator detects and visualizes contraction patterns in price movements, helping traders identify potential areas of price consolidation.
Also traders can choose between different modes (Strict, Normal, Relax) for obtaining master patterns, providing flexibility in pattern identification based on individual trading strategies and preferences.
The Value/Expansion Line : This value line is considered by institutional traders as a potential “Point of Origin” for future price movements.
An Application Example of the Master Pattern :
Select the Appropriate Timeframes: A significant separation between the higher timeframe (HTF) and the lower timeframe (LTF) is essential. For instance, combinations like 4H and 15M, 4H and 5M, or 1H and 1M. You can change this according to your own strategy.
Trade Based on Contraction Box, Value Line and Liquidity: When the HTF is above value, look for buying opportunities on your LTF below value. Conversely, when the HTF is below value, seek selling opportunities on your LTF above value. Sweeping liquidity in LTF is also an important parameter.
Also Value/Expansion Line can also be used as Support/Resistance zone,
Liquidity Levels : The indicator includes functionality to detect and display liquidity levels on the chart.
Dashboard Display : A customizable dashboard provides users with key information, including liquidity levels, master pattern values, and whether the current price is above or below Master Pattern's value lines.
Additionally, when liquidity is swept or the price rises above or falls below the value line. this information can be displayed on the dashboard.
Customizable Settings: Users can adjust parameters such as the pattern detection mode, sensitivity to liquidity levels, liquidity type (cumulative or individual for each swing), visualization preferences for master patterns, the position and font size of the dashboard.
🔶 Disclaimer:
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Supportandresistancezones
Breakouts with Tests & Retests [LuxAlgo]The Breakouts Tests & Retests indicator highlights tests and retests of levels constructed from detected swing points. A swing area of interest switches colors when a breakout occurs.
Users can control the sensitivity of the swing point detection and the width of the swing areas.
🔶 USAGE
When a Swing point is detected, an area of interest is drawn, colored green for a bullish swing and red when bearish.
A test is confirmed when the opening price is situated in the area of interest, and the closing price is above or below the area, depending on whether it is a bullish or bearish swing. Tests are highlighted with a solid-colored triangle.
A breakout is confirmed when the price closes in the opposite position, below or above the area, in which case the area will switch colors.
If the opening price is located within the area and the closing price closes outside the area, in the same direction as the breakout, this is considered a retest . Retests are highlighted with a hollow-colored triangle.
Note that tests/retests do not act on wicks. The main factor is that the opening price is in the area of interest, while the closing price is outside.
🔹 Area Of Interest Width
The user can adjust the width of the swing areas. Changing the " Width " is a fast and easy way to find different areas of interest.
A higher "Multiple" setting would return a wider area, allowing price to develop within it for a longer period of time and potentially provide later test signals.
When a swing area is broken, a higher "Width" setting can make it more complicated for the price to break it again, allowing a swing area to remain valid for a longer period of time thus potentially providing more retest signals.
🔶 DETAILS
Generally, only one bullish/bearish pattern can be active at a time. This means that no more than 1 bullish or bearish area will be active.
The " Display " settings, however, can help control how areas of different types are displayed.
Bullish AND Bearish: Both, bullish and bearish patterns can be drawn at the same time
Bullish OR Bearish: Only 1 bullish or 1 bearish pattern is drawn at a time
Bullish: Only bullish patterns
Bearish: Only bearish patterns
🔹 Test/Retest Labels
The user can adjust the settings so only the latest test/retest label is shown or set a minimum number of bars until the next test/retest can be drawn.
🔹 Maximum Bars
Users can set a limit of bars for when there is no test/retest in that period; the area of interest won't be updated anymore and will be available and ready for the next Swing.
An option for pulling the area back to the last retest is included.
🔶 SETTINGS
Display: Determines which swing areas are displayed by the indicator. See the "DETAILS" section for more information
Multiple: Adjusts the width of the areas of interest
Maximum Bars: Limit of bars for when there is no test/retest
Display Test/Retest Labels: Show all labels or just the last test/retest label associated with a swing area
Minimum Bars: Minimum bars required for a subsequent test/retest label are allowed to be displayed
Set Back To Last Retest: When after "Maximum Bars" no test/retest is found, place the right side of the area at the last test/retest
🔹 Swings
Left: x amount of wicks on the left of a potential Swing need to be higher/lower for a Swing to be confirmed.
Right: The number of wicks on the right of a potential swing needs to be higher/lower for a Swing to be confirmed.
🔹 Style
Bullish: color for test period (before a breakout) / retest period (after a breakout)
Bearish: color for test period (before a breakout) / retest period (after a breakout)
Label Size
Volume Breaker Blocks [UAlgo]The "Volume Breaker Blocks " indicator is designed to identify breaker blocks in the market based on volume and price action. It is a concept that emerges when an order block fails, leading to a change in market structure. It signifies a pivotal point where the market shifts direction, offering traders opportunities to enter trades based on anticipated trend continuation.
🔶 Key Features
Identifying Breaker Blocks: The indicator identifies breaker blocks by detecting pivot points in price action and corresponding volume spikes.
Breaker Block Sensitivity: Traders can adjust breaker block detection sensitivity, length to be used to find pivot points.
Mitigation Method (Close or Wick): Traders can choose between "Close" and "Wick" as the mitigation method. This choice determines whether the indicator considers closing prices or wicks in identifying breaker blocks. Selecting "Close" implies that breaker blocks will be considered broken when the closing price violates the block, while selecting "Wick" implies that the wick of the candle must violate the block for it to be considered broken.
Show Last X Breaker Blocks: Users can specify how many of the most recent breaker blocks to display on the chart.
Visualization: Volume breaker blocks are visually represented on the chart with customizable colors and text labels, allowing for easy interpretation of market conditions. Each breaker block is accompanied by informational text, including whether it's bullish or bearish and the corresponding volume, aiding traders in understanding the significance of each block.
🔶 Disclaimer
Educational Purpose: The "Volume Breaker Blocks " indicator is provided for educational and informational purposes only. It does not constitute financial advice or a recommendation to engage in trading activities.
Risk of Loss: Trading in financial markets involves inherent risks, including the risk of loss of capital. Users should carefully consider their financial situation, risk tolerance, and investment objectives before engaging in trading activities.
Accuracy Not Guaranteed: While the indicator aims to identify potential reversal points in the market, its accuracy and effectiveness may vary. Users should conduct thorough testing and analysis before relying solely on the indicator for trading decisions.
Past Performance: Past performance is not indicative of future results. Historical data and backtesting results may not accurately reflect actual market conditions or future performance.
Johnny's Trend Lines, Supports and ResistancesInspired and based on ismailcarlik's Trend Lines, Supports and Resistances.
Additions include an overall upgrade to Pinescript v5, changes in the way resistance and support levels are calculated, improved visual queues, and additional customization options.
This indicator is meticulously crafted to provide traders with visual tools for identifying trend lines, support, and resistance levels, enhancing the decision-making process in trading activities.
Features and Functionality
Trend Lines: The indicator allows users to enable or disable trend lines, adjust the number of points to check for establishing a trend, and set parameters for trend validation, including the maximum violation and exceptions for the last bars.
Support and Resistance: It offers tools to identify and visualize key support and resistance levels based on recent pivot points. This includes adjustable parameters for the maximum violations allowed and the exclusion of recent bars from the analysis.
Pivot Points: Users can define the pivot length for calculating highs and lows, which helps in marking significant pivot points that are instrumental in trend analysis.
Alerts and Notifications: The indicator is equipped with customizable alerts for trend line breaches and pivot point formations, which can be set to trigger at different frequencies based on user preference.
How It Works
Input Flexibility: Users can adjust various settings like the length of trend lines and pivot points, enabling or disabling specific features like marking pivots, and managing alert settings directly from the indicator’s input panel.
Dynamic Analysis: By analyzing the price action relative to the calculated trend lines and pivot points, the indicator dynamically identifies potential trend reversals, continuations, and significant price levels.
Visualization: It plots trend lines and marks support and resistance levels directly on the chart, with options to extend these lines and add labels for better clarity. Violated trend lines can be visually differentiated by changing their style and width.
Practical Application
Trend Line Strategy: Traders can use the trend lines to determine the strength of the current market trend and to spot potential reversal points.
Support and Resistance Strategy: By marking where the price has historically faced resistance or found support, traders can plan entry and exit points, set stop-loss orders, or identify breakout opportunities.
Pivot Points Strategy: Pivot points serve as vital indicators for intraday trading or long-term trend analysis, providing insights into potential support and resistance levels.
Customization and Alerts
Custom Alerts: Traders can set alerts for when the price crosses trend lines or when new support or resistance levels are formed, helping them stay informed of critical market movements without having to continuously monitor the charts.
Visual Customization: Users can personalize the appearance of trend lines and labels, choosing from a variety of colors and styles to match their chart setup or preferences.
"Johnny's Trend Lines, Supports and Resistances" is an essential tool for traders who rely on technical analysis, offering detailed insights and real-time updates on market conditions, trend strength, and potential price barriers.
Volatility ATR Support and Resistance Bands [Quantigenics]Volatility ATR Support and Resistance Bands
The “Volatility ATR Support and Resistance Bands” is a trend visualization tool that uses Average True Range (ATR) to create a dynamic channel around price action, adapting to changes in volatility and offering clear trend indicators. The band direction can indicate trend and the lines can indicate support and resistance levels.
The script works by calculating a series of moving averages from the highest and lowest prices, then applies an ATR-based multiplier to generate a set of bands. These bands expand and contract with the market’s volatility, providing a visual guide to the strength and potential direction of price movements.
How to Trade with Volatility ATR Band:
Identify Trend Direction: When the bands slope upwards, the market is trending upwards, which may be a good opportunity to consider a long position. When the bands slope downward, the market is trending downwards, which could be a sign to sell or short.
Volatility Awareness: The wider the bands, the higher the market volatility. Narrow bands suggest a quieter market, which might indicate consolidation or a potential breakout/breakdown.
Confirm Entries and Exits: Use the bands as dynamic support and resistance; entering trades as the price bounces off the bands and considering exits as it reaches the opposite side or breaches the bands.
Hope you enjoy this script!
Happy trading!
Support Resistance base Volume RSIThe indicator displays support and resistance levels based on volume and the Relative Strength Index (RSI).
Variable and Input Assignment:
lookback: Determines the period for data lookback.
RsiVisible, RsilabelSize, OversoldForRsi, OverboughtForRsi: Various inputs to adjust RSI indicator parameters.
Indicator Calculation:
highestVol: Finds the highest volume within a certain period.
Rsi: Calculates the RSI value with a period of 14.
roc: Calculates the Rate of Change.
Support and Resistance Level Determination:
Uses a comparison between price change (roc) and RSI value to determine whether the price is rising or falling.
If the price is rising and the current volume is greater than the previous highest volume, a new resistance level is established.
If the price is falling and the current volume is greater than the previous highest volume, a new support level is established.
Support and Resistance Lines:
Creates lines indicating the latest support and resistance levels.
These lines are updated whenever there is a change in support or resistance levels.
RSI Labels:
Displays the RSI value above or below the price chart depending on whether the RSI is above or below the overbought or oversold levels.
If the RSI value is above the overbought level, the label is displayed above the price.
If the RSI value is below the oversold level, the label is displayed below the price.
Labels are removed if the corresponding conditions are not met.
Additional RSI Label:
Adds an additional label displaying the RSI value next to the price chart on the last bar.
The main purpose of this script is to assist traders in identifying support and resistance levels based on price movement, volume, and the RSI indicator. Thus, traders can use this information to make better trading decisions.
Swing Suite (SMT/Divergences + Gann Swings)Hello Traders!
TRN Swing Suite (SMT/Divergences + Gann Swings) is an indicator which identifies, and highlights pivot points (swings) and prints a lot of information about the swings in the chart (e.g. length, duration, cumulative Delta, ...). Furthermore, it detects divergences in connection with any given indicator, even custom ones. In addition to this, you can choose the algorithm to compute the swings. The famous Gann-Swing algorithm and the extremely precise TRN Swing algorithm (called Standard) are available for selection, as well as two other variants. Compared to other swing or zig-zag indicators it works in real-time, does not need a look-a-head to find swings and is not repainting. Moreover, equal (double) highs and lows are detected and displayed. The TRN Swing Suite helps traders to visualize the pure price action and identify key turning points or trends. The indicator comes with the following features:
Precise real-time swing detection without repainting
Divergence detecting for any given (custom) indicator - with 11 different preset indicators
SMT (Smart Money Technique)/Divergence detecting in relation to other instruments
Swing Performance Statistics
Swing support and resistance levels
Swing trend for multiple swing sizes
Equal/double high and low detection
4 different swing computation styles
Displaying of swing labels, values and information
Customizable settings as well as look and feel
It's important to note that the TRN Swing Suite is a visual tool and does not provide specific buy or sell signals. It serves as a guide for traders to analyze market structure in depth and make well-informed trading decisions based on their trading strategy and additional technical analysis.
Divergence Detection for any given (Custom) Indicator
The divergence detector finds with unrivaled precision bullish and bearish as well as regular and hidden divergences. The main difference compared to other divergences indicators is that this indicator finds rigorously the extreme peaks of each swing, both in price and in the corresponding indicator. This precision is unmatched and therefore this is one of the best divergences detectors.
The build in divergence detector works with any given indicator, even custom ones. In addition, there are 11 built-in indicators. Most noticeable is the cumulative delta indicator, which works astonishingly well as a divergence indicator. Full list:
External Indicator (see next section for the setup)
Awesome Oscillator (AO)
Commodity Channel Index (CCI)
Cumulative Delta Volume (CDV)
Chaikin Money Flow (CMF)
Moving Average Convergence Divergence (MACD)
Money Flow Index (MFI)
Momentum
On Balance Volume (OBV)
Relative Strength Index (RSI)
Stochastic
Williams Percentage Range (W%R)
The divergences are colored with vivid lines and labels. Bullish divergences are distinguished with luminous blue lines, while bearish divergences are denoted by striking red lines. Upon detecting a divergence, the colored lines act as a visual indicator for traders, signaling an imminent possibility of a trend reversal. In response, traders can leverage this valuable insight to make informed decisions in their trading activities.
Choose Your Custom Divergence Indicator
Handpick your custom indicator, and the TRN Swing Suite will hunt for divergences on your preferred market and timeframe. Importantly, you must add the indicator to your chart. Afterwards, simply go to the “Divergence Detection” section in the TRN Swing Suite indicator settings and choose "External Indicator". If the custom indicator has one reference value, then choose this value in the “External Indicator (High)” field. If there are high and low values (e.g. candles), then you also must set the “External Indicator Low” field.
In the provided graphic, we've chosen the stochastic RSI as our example, and as you can see, the TRN Swing Suite instantly identifies and plots bullish and bearish divergences on your chart.
Smart Money Technique (SMT)/Divergence detecting in Relation to other Instruments
Smart Money Technique/Tool (SMT) means the divergence detection between two related instruments. The TRN Swing Suite finds divergence in relation to other instruments, e.g. NQ vs ES or BTCUSDT vs ETHUSDT. Just add another instrument to the chart. As representation style you can choose lines or candles/bars. Afterwards, simply go to the “Divergence Detection” section in the TRN Swing Suite indicator settings and choose "External Indicator". If the second instrument is represented as line, then choose this value in the “External Indicator (High)” field. If there are high and low values (e.g. candles/bars), then you also must set the “External Indicator Low” field.
The detection of SMTs can help traders to decide whether the trend continues, or a reversal is imminent. E.g. if the NQ makes a new higher high but the ES fails to do so and makes a new lower high, then the TRN Swing Suite shows a divergence. As a result, the probability is high that the trend will not continue, and the trader can make an informed decision about what to do next.
How to Set Parameters for Divergence Indicators
To begin, access the indicator settings and find the “Divergence Detection”. Look for the "Parameters" sections where you can fine-tune Parameters 1-3. The default settings are already optimized for the oscillators AO, RSI, CDV, W%R, MFI and Stochastic. For other divergence indicators, you might want to adjust the settings to your liking. The parameter order is the same as in the corresponding divergence indicator.
TRN Swing Suite Statistics
Unveil the untapped potential of advanced Swing Statistics! Gain invaluable insights into historical swings and turning points. Elevate your expertise by harnessing this treasure trove of data to supercharge signal reliability, while masterfully planning stop loss and take profit strategies with unrivaled accuracy. Within the TRN Swing Suite lie two powerful statistics, each offering distinct insights to empower your trading prowess.
Swing Statistic
The Swing Statistic comprises of two series, one for up swings (Up) and one for down swings (Down), with values given in points. The columns have the following meaning:
Up or down
# - total number of analyzed swings
Overall ∅ Length - average length of all swings in points
Overall ∅ Duration - average duration of swings in bars
∅ Length - average lengths for custom-defined swing counts
∅ Duration - average durations for custom-defined swing counts
The custom-defined swing count is used to determine the swing length/duration for the last x swings. Note, in the case of well-established assets like Microsoft or Nvidia, which have undergone one or more stock splits, the overall average in column three may deviate significantly from those in column five. That is why column 5 is useful.
Relation Statistic
The Relation Statistic highlights percentages representing the historical occurrence of specific high and low sequences. In the first column (in %), various types of highs and lows are listed as reference points.
For example, the first row corresponds to "HH followed by", where the second column (#) displays the total count of higher highs (HH) considered. The subsequent columns showcase the percentages of how often certain patterns follow the initial HH.
Fields marked in blue represent sequences that occurred in over 50% of cases. The darker the shade of blue in each field, the higher the percentage.
Use Swing Statistics to Validate Stop-Loss and Take-Profit Levels
No matter which signals you choose to trade, consulting Swing Statistics can significantly enhance the reliability of these signals.
For example, when looking for a long entry after a lower low (LL), you can examine the likelihood of a subsequent lower high (LH) or even a higher high (HH). Combining this valuable information with your predetermined Take Profit level allows you to better assess whether your target can be achieved successfully. Additionally, you can add the average up swing length to the lower low for an alternative Take Profit level. Similarly, you can verify the probability of the next low being a higher low (HL) or another lower low (LL) to determine the likelihood of your Stop Loss being triggered. Align the length of the last down swing with the average down swing length for an alternative Stop Loss.
Swing Support and Resistance Levels
Swing support and resistance levels are horizontal lines starting from a swing high or swing low and representing natural support and resistance levels. Price tends to respect this levels one way or another. In most cases, old swing highs and swing lows provide a lot of liquidity to the market. For example, for a swing high there are at least three different market players at work:
Traders put there stop loss above the swing high
Breakout traders go long above the swing high
Turtle soup (reverse) trader go short above the swing high
Swing Trend (Multiple Sizes)
The TRN Swing Suite can display either at the top or at the bottom the prevailing swing trends for the main trend seen in the chart and for two additional swing sizes. This is useful to see the swing trend for medium and bigger swings to get a clear picture of the market.
Getting an Edge with the TRN Swing Suite
The indicator clearly displays up trends, defined as a sequence of higher highs (HH) and higher lows (HL), with green labels and down trends, defined as a sequence of lower lows (LL) and lower highs (LH), with red labels. Equal highs/double tops (DT) and equal lows/ double bottoms (DB) are highlighted in gold.
In addition, the labels show a full stack of valuable information about the swings to maximize your accuracy.
Length
Length percentage in relation to the last swing length
Duration
Time
Volume
Cumulative Delta
In an uptrend the up swings should have higher volume und higher cumulative delta than the down swings. The duration and time for down swings in an uptrend should be shorter than for the up swings.
Use Cases for Swing Detection
Trend Identification
By connecting the swing highs and lows, traders can identify and analyze the prevailing trend in the market. An uptrend is characterized by higher swing highs and lows, while a downtrend is characterized by lower highs and lower lows. The indicator helps traders visually assess the strength and continuity of the trend.
Support And Resistance Levels
The swing highs and lows can act as support and resistance levels. Swing highs may act as resistance levels where selling pressure increases, while swing lows may act as support levels where buying pressure increases. Traders often pay attention to these levels as potential areas for trade entries, exits, or placing stop-loss orders.
Pattern Recognition
The swings identified by the indicator can help traders recognize chart patterns, such as equal high/lows, consolidations, wedges, triangles or more complex patterns like Gartley or Head and Shoulders. These patterns can provide insights into potential trend continuation or reversal.
Trade Entry and Exit
Traders may use TRN Swing to determine potential trade entry and exit points. For example, in an uptrend, traders may look for opportunities to enter long positions near swing lows or on pullbacks to support levels. Conversely, in a downtrend, traders may consider short positions near swing highs or on retracements to resistance levels.
Swing Styles
In addition to the standard swings, you have the flexibility to choose between various swing styles, including ticks, percent, or even the famous Gann swings.
Standard
Gann
Ticks
Percent
Conclusion
While signals from TRN Swings can be informative, it is important to recognize that their reliability may vary. Various external factors can impact market prices, and it is essential to consider your risk tolerance and investment goals when executing trades.
Risk Disclaimer
The content, tools, scripts, articles, and educational resources offered by TRN Trading are intended solely for informational and educational purposes. Remember, past performance does not ensure future outcomes.
MTF OB Supply Demand ZonesHello everyone,
This exceptional indicator provides you with visual representations of bullish and bearish order blocks or supply and demand zones across multiple timeframes. In simple terms, bullish order blocks are represented by a small red candle followed by a large red candle, while bearish order blocks are depicted as a small green candle followed by a large red candle. Supply and demand zones are drawn by using order blocks.
Features:
Display order blocks from up to three different timeframes.
Customize the maximum number of boxes shown and the colors of the zones.
Choose from three different modes: OB (Order Block), Extended OB, and Supply/Demand.
Mode Descriptions:
OB: Includes the body of the candle.
Extended OB: Encompasses the body and wick of the candle.
Supply/Demand: Covers the body, wick, and half the body of the large candle.
Usage:
Ensure that charts 2 and 3 are set to a higher timeframe. For modes 2 and 3, it’s recommended to reduce the maximum number of boxes shown. The zones or boxes are transparent, allowing for overlap. This feature aids in identifying reversal zones or confirmed zones. The more intense the color, the stronger the confirmation. If a green zone overlaps a red zone (or vice versa), it signifies a reversal zone.
Thank you for checking out this indicator!
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Additional Information:
Order blocks refer to specific price areas where large market participants, such as institutional traders, have previously placed significant buy or sell orders. These clusters of orders can impact price movement, liquidity, and market sentiment.
Order blocks are a strategic approach to identifying key levels of support and resistance based on the behavior of institutional traders. These key levels are then utilized as entry or exit points for trades.
An order block is an area where there has been a large concentration of limit orders awaiting execution. These blocks are identified on a chart by observing previous price action and pinpointing areas where the price experienced significant movement or abrupt changes in direction.
Order blocks are used in the following popular trading philosophies:
Smart Money Concepts (SMC)
Inner Circle Trading (ICT)
Price Action
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Credits to: @AGFXTRADING
Volume Profile with Node Detection [LuxAlgo]The Volume Profile with Node Detection is a charting tool that allows visualizing the distribution of traded volume across specific price levels and highlights significant volume nodes or clusters of volume nodes that traders may find relevant in utilizing in their trading strategies.
🔶 USAGE
The volume profile component of the script serves as the foundation for node detection while encompassing all the essential features expected from a volume profile. See the sub-sections below for more detailed information about the indicator components and their usage.
🔹 Peak Volume Node Detection
A volume peak node is identified when the volume profile nodes for the N preceding and N succeeding nodes are lower than that of the evaluated one.
Displaying peak volume nodes along with their surrounding N nodes (Zones or Clusters) helps visualize the range, typically representing consolidation zones in the market. This feature enables traders to identify areas where trading activity has intensified, potentially signaling periods of price consolidation or indecision among market participants.
🔹 Trough Volume Node Detection
A volume trough node is identified when the volume profile nodes for the N preceding and N succeeding nodes are higher than that of the evaluated one.
🔹 Highest and Lowest Volume Nodes
Both the highest and lowest volume areas play significant roles in trading. The highest volume areas typically represent zones of strong price acceptance, where a significant amount of trading activity has occurred. On the other hand, the lowest volume areas signify price levels with minimal trading activity, often indicating zones of price rejection or areas where market participants have shown less interest.
🔹 Volume profile
Volume profile is calculated based on the volume of trades that occur at various price levels within a specified timeframe. It divides the price range into discrete price intervals, typically known as "price buckets" or "price bars," and then calculates the total volume of trades that occur at each price level within those intervals. This information is then presented graphically as a histogram or profile, where the height of each bar represents the volume of trades that occurred at that particular price level.
🔶 SETTINGS
🔹 Volume Nodes
Volume Peaks: Toggles the visibility of either the "Peaks" or "Clusters" on the chart, depending on the specified percentage for detection.
Node Detection Percent %: Specifies the percentage for the Volume Peaks calculation.
Volume Troughs: Toggles the visibility of either the "Troughs" or "Clusters" on the chart, depending on the specified percentage for detection.
Node Detection Percent %: Specifies the percentage for the Volume Troughs calculation.
Volume Node Threshold %: A threshold value specified as a percentage is utilized to detect peak/trough volume nodes. If a value is set, the detection will disregard volume node values lower than the specified threshold.
Highest Volume Nodes: Toggles the visibility of the highest nodes for the specified count.
Lowest Volume Nodes: Toggles the visibility of the lowest nodes for the specified count.
🔹 Volume Profile - Components
Volume Profile: Toggles the visibility of the volume profile with either classical display or gradient display.
Value Area Up / Down: Color customization option for the volume nodes within the value area of the profile.
Profile Up / Down Volume: Color customization option for the volume nodes outside of the value area of the profile.
Point of Control: Toggles the visibility of the point of control, allowing selection between "developing" or "regular" modes. Sets the color and width of the point of control line accordingly.
Value Area High (VAH): Toggles the visibility of the value area high level and allows customization of the line color.
Value Area Low (VAL): Toggles the visibility of the value area low level and allows customization of the line color.
Profile Price Labels: Toggles the visibility of the Profile Price Levels and allows customization of the text size of the levels.
🔹 Volume Profile - Display Settings
Profile Lookback Length: Specifies the length of the profile lookback period.
Value Area (%): Specifies the percentage for calculating the value area.
Profile Placement: Specify where to display the profile.
Profile Number of Rows: Specify the number of rows the profile will have.
Profile Width %: Adjusts the width of the rows in the profile relative to the profile range.
Profile Horizontal Offset: Adjusts the horizontal offset of the profile when it is selected to be displayed on the right side of the chart.
Value Area Background: Toggles the visibility of the value area background and allows customization of the fill color.
Profile Background: Toggles the visibility of the profile background and allows customization of the fill color.
🔶 RELATED SCRIPTS
Supply-Demand-Profiles
Liquidity-Sentiment-Profile
Thanks to our community for recommending this script. For more conceptual scripts and related content, we welcome you to explore by visiting >>> LuxAlgo-Scripts .
Smart Money Liquidity Heatmap [AlgoAlpha]🌟📈 Introducing the Smart Money Liquidity Heatmap by AlgoAlpha! 🗺️🚀
Dive into the depths of market liquidity with our innovative Pine Script™ indicator designed to illuminate the trading actions of smart money! This meticulously crafted tool provides an enhanced visualization of liquidity flow, highlighting the dynamics between smart and retail investors directly on your chart! 🌐🔍
🙌 Key Features of the Smart Money Liquidity Heatmap:
🖼️ Visual Clarity: Uses vibrant heatmap colors to represent liquidity concentrations, making it easier to spot significant trading zones.
🔧 Customizable Settings: Adjust index periods, volume flow periods, and more to tailor the heatmap to your trading strategy.
📊 Dynamic Ratios: Computes the ratio of smart money to retail trading activity, providing insights into who is driving market movements.
👓 Transparency Options: Modify color intensity for better visibility against various chart backgrounds.
🛠 How to Use the Smart Money Liquidity Heatmap:
1️⃣ Add the Indicator:
Add the indicator to favourites. Customize settings to align with your trading preferences, including periods for index calculation and volume flow.
2️⃣ Market Analysis:
Monitor the heatmap for high liquidity zones signalled by the heatmap. These are potential areas where smart money is actively engaging, providing crucial insights into market dynamics.
Basic Logic Behind the Indicator:
The Smart Money Liquidity Heatmap utilizes the Smart Money Interest Index Indicator and operates by differentiating between the trading behaviors of informed (smart money) and less-informed (retail) traders. It calculates the differences between specific volume indices—Positive Volume Index (PVI) for retail investors and Negative Volume Index (NVI) for institutional players—and their respective moving averages, highlighting these differences using the Relative Strength Index (RSI) over user-specified periods. This calculation generates a ratio that is then normalized and compared against a threshold to identify areas of high institutional trading interest, visually representing these zones on your chart as vibrant heatmaps. This enables traders to visually identify where significant trading activities among smart money are occurring, potentially signalling important buying or selling opportunities.
🎉 Elevate your trading experience with precision, insight, and clarity by integrating the Smart Money Liquidity Heatmap into your toolkit today!
SVMKR_VIX_Based_LevelsThe "SVMKR_VIX_Based_Levels" script is a Pine Script indicator designed to assist intraday traders in identifying dynamic support and resistance levels based on the Volatility Index (VIX). Here's a breakdown of the script and its uses for intraday traders:
### Script Description:
1. **Data Retrieval**:
- The script fetches daily closing prices of the India VIX (volatility index) and a specified security using `request.security()`.
2. **Input Parameters**:
- Intraday traders can customize the indicator using input parameters such as the number of levels above and below the Pivot Day Close (PDC), line offset lengths, line extension options, and color and width settings for plotted lines.
3. **Plotting**:
- The script plots the PDC and VIX as hidden lines (`display=display.none`).
- Support and resistance levels are calculated based on the VIX and PDC, and plotted above and below the PDC with customizable colors and widths.
- Each level can be labeled with its corresponding price.
4. **Customization**:
- Intraday traders can choose to display or hide prices on the plotted lines.
- Colors and widths of plotted lines are customizable.
- Options to show minor and mild support levels provide additional flexibility.
5. **Labels**:
- Labels are added to indicate the PDC and the plotted levels, displaying corresponding prices if enabled.
### Uses for Intraday Traders:
1. **Dynamic Support and Resistance**: Intraday traders can benefit from dynamically adjusted support and resistance levels that respond to changes in market volatility, providing more accurate levels for trade planning.
2. **Market Sentiment Analysis**: By incorporating the VIX, a measure of market volatility and sentiment, the indicator provides insights into market sentiment, helping intraday traders gauge market mood and potential direction.
3. **Confirmation of Price Action**: The plotted support and resistance levels can serve as confirmation signals for intraday traders, helping validate trading decisions and enhance trading confidence.
4. **Adaptability to Changing Market Conditions**: Intraday traders often face rapidly changing market conditions. The indicator's ability to adapt to changes in volatility ensures that plotted levels remain relevant and responsive, aiding traders in adjusting their strategies accordingly.
5. **Trade Planning and Execution**: Intraday traders can use the plotted support and resistance levels to identify potential entry and exit points, set profit targets and stop-loss levels, and plan their trades more effectively.
Overall, the "SVMKR_VIX_Based_Levels" indicator provides intraday traders with a valuable tool for dynamic support and resistance identification, market sentiment analysis, confirmation of price action, and trade planning and execution, ultimately assisting them in making more informed and profitable trading decisions in the intraday timeframe.
Jemmy Trade Whales Multiple Signal Options - Nine in One $$$This script is a combination of several indicators and trading strategies.
Let's break down each part:
1. MACD Indicator (My MACD Indicator – Nabil's Version): This calculates the Moving Average Convergence Divergence (MACD) using Heikin Ashi candles. It uses Exponential Moving Averages (EMA) to compute the fast and slow lengths and then calculates the MACD line, signal line, and histogram based on the difference between these EMAs.
2. Smoothed Moving Average (SMMA): This calculates a smoothed moving average using a user-defined length.
3. Least Squares Moving Average (LSMA): This calculates a least squares moving average using a user-defined length.
4. High Low SAR - Nabil's Version: This section calculates various levels based on SAR (Stop and Reverse) indicator. It also plots lines based on certain conditions and includes SAR lines with specific properties.
5. Volume-Weighted Hull Moving Average (VHMA) - Nabil's Version: This calculates a volume-weighted Hull moving average.
6. SAR (Stop and Reverse): This calculates the SAR indicator with user-defined parameters.
7. Mean Reversion Strategy: This part calculates upper and lower bands based on a multiplier of Standard Deviation from a mean. It also generates buy and sell signals based on crossing these bands.
8. SSL Hybrid - Nabil's Version: This calculates various indicators like SSL (Stochastic Scaled Levels), ATR (Average True Range) bands, and Keltner Channels. It also plots buy and sell signals based on certain conditions.
9. Buy Signal Options: This section defines several conditions for generating buy signals based on different combinations of indicators and plots corresponding buy signals.
Each section seems to be relatively independent and focused on calculating specific indicators or trading strategies. The script combines these components to provide a comprehensive trading setup with various buy signal options based on user preferences.
BUY SIGNALS EXPLAINATION:
1. MAIN - Price: This signal triggers when the current candle's close price crosses above the lookback average line (lookbackavg). It indicates a bullish momentum when the price moves above the average line.
2. MAIN - Price - SMMA - LSMA / Crossing: This signal combines multiple conditions:
• The current candle's close price crosses above the lookback average line.
• The smoothed moving average (SMMA) crosses above the lookback average line.
• The least squares moving average (LSMA) crosses above the lookback average line. This signal confirms a bullish trend when all three moving averages cross above the average line simultaneously.
3. MAIN - Price - (SMMA > LSMA) / No Crossing: This signal triggers when the following conditions are met:
• The current candle's close price crosses above the lookback average line.
• The SMMA is above the LSMA. This signal confirms a bullish trend when the SMMA remains consistently above the LSMA without crossing.
4. MAIN - Price - SMMA - LSMA - SAR - SSL / Crossing: This signal combines multiple conditions:
• The current candle's close price, SMMA, and LSMA cross above the lookback average line.
• The SAR (Stop and Reverse) indicator is above the SSL (Stochastic Scaled Levels). This signal indicates a strong bullish momentum when all conditions align.
5. MAIN - Price - (SMMA > LSMA) - SAR - SSL / No Crossing: This signal triggers when the following conditions are met:
• The current candle's close price crosses above the lookback average line.
• The SMMA is consistently above the LSMA.
• The SAR is above the SSL. This signal confirms a bullish trend without any crossing of moving averages.
6. MAIN - Price - SMMA - LSMA - SAR - SSL / Crossing - Coloring: Similar to signal 4, this signal additionally checks for specific colors of SAR and SSL lines to confirm a bullish momentum.
7. MAIN - Price - (SMMA > LSMA) - SAR - SSL / No Crossing - Coloring: Similar to signal 5, this signal also checks for specific colors of SAR and SSL lines to confirm a bullish trend without any crossing of moving averages.
8. MAIN Support line - 2 Candles: This signal triggers when the price pulls back from below the support line within the last two candles. It indicates a potential reversal from a support level.
9. MAIN Support line - lookBack Candles: This signal is similar to signal 8 but considers a specified lookback range for checking the pullback from below the support line.
These buy signals aim to identify various bullish scenarios based on combinations of price action, moving averages, SAR, and SSL indicators. Each signal offers different levels of confirmation for potential buying opportunities in the market.
USE IT WITH YOUR RISK MANAGEMENT STRATEGIES.
Future Updates "Coming Soon"
Targets - Under processing.
Stop loss - Under Processing.
Trailing - Under Processing.
Historical Data Table - Under processing.
Strength Table - Under Processing.
Whales Catcher - Under Processing.
Order Book Analyzer - Under Processing.
NABIL ELMAHDY $$
Bull Bear Trend IndicatorIntroduction: Origin of the Swing Point Indicator
In the quest for a reliable indicator that accurately predicts trend directions and identifies valid highs and lows, the genesis of the Swing Point Indicator emerged. Faced with the challenge of finding a tool that provided comprehensive market analysis and actionable insights, the need for a novel solution became evident. Combining insights gleaned from market analysis and innovative algorithmic approaches, the Swing Point Indicator was born.
Enhanced Feature: Highs and Lows Labeling in Trend Direction
In addition to its core functionalities, the Swing Point Indicator incorporates an advanced feature that enhances the visualization of trend direction. This feature provides further clarity by selectively labeling highs and lows based on the prevailing trend, reinforcing the identification of higher highs and lower lows in uptrends and downtrends, respectively. Overlapping labels on highs and lows signify a potential trend change, providing traders with valuable insight into market reversals.
Detailed Description:
1. Uptrend Labeling:
- Higher Highs (Green Label with Price): In an uptrend, where higher highs are observed, the indicator labels these points with vibrant green color and includes the corresponding price value. This visually highlights the significance of higher highs as pivotal points in the upward trajectory of prices.
- Higher Lows (Red Marker without Text or Diamond): To complement the identification of higher highs, higher lows are marked with a distinct red marker or diamond, devoid of any accompanying text. While these points are crucial in delineating the ascending trend, their emphasis lies in their role as support levels, providing a foundation for upward price movements.
2. Downtrend Labeling:
- Lower Lows (Red Label with Price): Conversely, in a downtrend characterized by lower lows, the indicator labels these points with conspicuous red color, accompanied by the corresponding price value. Lower lows signify critical levels of downward price momentum, acting as indicators of potential bearish continuation.
- Lower Highs (Green Marker without Text or Diamond): Lower highs, indicative of downward retracements in a downtrend, are marked by distinctive green markers or diamonds without accompanying text. While these points denote temporary pauses or pullbacks in the bearish trend, their emphasis lies in their role as resistance levels, impeding upward price movements.
Functionality and Utility:
- Customizable Lookback Candle Count: Traders have the option to adjust the lookback candle count, which is set by default at 108 candles in the settings. This flexibility allows traders to tailor the indicator to their specific trading preferences and timeframes.
- Equal Highs or Lows Option: When enabled, the Swing Point Indicator can identify equal highs or equal lows, providing traders with additional insight into market dynamics.
- Formation Confirmation: A new higher high along with its higher low or a new lower low along with its lower high is confirmed after two candles have closed following the swing point candle. This ensures the reliability of the identified trend direction.
Conclusion:
The incorporation of selective labeling for highs and lows based on trend direction, alongside the introduction of customizable settings and formation confirmation criteria, enhances the effectiveness of the Swing Point Indicator. This feature-rich tool empowers traders with a nuanced understanding of market dynamics, highlighting critical price levels and trend reversals. By offering enhanced visualization, customizable options, and confirmation criteria, the Swing Point Indicator equips traders with the confidence and precision needed to navigate the markets successfully, contributing to more informed and profitable trading strategies.
FVG Positioning Average [LuxAlgo]The FVG Positioning Average indicator aims to uncover potential price levels of interest by averaging together recent Fair Value Gap (FVG) initiation levels.
This indicator is grounded in the theory that significant buying or selling activity is the primary catalyst for creating FVGs.
By averaging together the prices where each FVG initiated, we may potentially reveal where major participants are positioned.
🔶 USAGE
By analyzing the average price of bullish or bearish FVGs, users can identify potential support or resistance areas where the larger participants may re-enter or defend their positions.
These areas could be used to adjust entries and exits or assist with risk management such as take-profit or stop-loss levels.
The indicator displays 2 lines, the Bull Average and the Bear Average.
The Bull Average is only displayed when the price holds above the bull Average.
The Bear Average is only displayed when the price holds below the bear average.
When only one average is displayed alone, this level is seen as support or resistance, it is anticipated that this level would be defended for the current trend to stay valid.
When both averages are displayed simultaneously, it can be interpreted as one side attempting to take over the trend.
The movements and reactions during these attempts can be analyzed to provide helpful information about where the price might be headed.
Possible outcomes:
Trend Confirmation/Re-Entry (From Weak Attempts)
Trend Reversal (Creating Support or Resistance)
Consolidation (Oscillating between/around Bull & Bear Averages)
🔶 DETAILS
🔹 Lookback Types
This indicator includes 2 lookback types:
Bar Count: Uses Bars to determine what data to include. This type can be utilized for averages that are more locally relevant to the current chart data.
FVG Count: Uses a specific # of FVGs for calculations. This type can be utilized for a continuous & consistent view, typically relevant with longer term analysis.
Note: When using bar lookback, if no data is in range, no lines will be displayed.
Below is an example of the 'FVG Count' Display.
🔹 Initiation Levels
Initiation Levels are the specific price points where each FVG starts, these are the last points the price was traded at before creating the gap.
Bull Initiation Level: Lowest Point (Bottom) of FVG
Bear Initiation Level: Highest Point (Top) of FVG
🔹 FVG Display
Each FVG being used for the current calculation of averages is displayed on the chart for reference.
Note: If you prefer to not display the FVGs, they can be toggled off in the settings, uncheck "Show FVGs on Chart".
🔶 Settings
FVG Lookback: As mentioned above in the 'Lookback Types', this sets the number of FVGs or Bars to use for consideration.
Lookback Type: As also mentioned above in 'Lookback Types', this determines the method of lookback to be used.
ATR Multiplier: The FVGs are required to have a Greater Width than (ATR * Multiplier) in order to be used for calculations. This allows you to focus on the data being considered if needed.
Fixed volume profile & zonesHi all!
If you like volume profile and like to create zones, where the price might react, this indicator might be for you. It plots a fixed volume profile and creates a user defined number of zones (shelves) of high volume.
If you want to know more about volume profile you can about it here on TradingView: se.tradingview.com
To do
• Add possiblity to create alerts for zone entries, breakouts and retest
• The importance of zones are now based on high volume slots only. It might be changed to include the slots around the 'master slot' to determine if the area is of high importance or not, your suggestions here are welcome!
• Show total volume in 'values'
• Error if the data cannot be fetched
• Add value area
• Make earlier (more important shelves) more visible (less transparent)
• Add possiblity to skip zones
Known issues
• Script execution is long when the volume profile is created (should be none)
• In some cases you can get overlapping shelves, avoid this
Settings
• Main
• Start/end bar of the volume profile (this is required)
• Data
• Timeframe (for getting the volume data)
• Levels (the number of slots in the volume profile)
• Shelves (the number of zones with high volume to plot) and it's color
• Max slot (have this enabled if you want the shelf's highest volume slot to have a dotted line and choose it's color
• Show info (show the order of the plotted zone)
• Style (how the volume profile will look)
• Histogram box (the color of the background of the volume profile)
• Up (the color of bullish volume)
• Down (the color of bearish volume)
• Point of control (color and if it should be extended or not)
• Values and text color (show bullish and bearish volume values)
The defaults on all settings are based on the daily timeframe. This indicator is not 'complete' and I plan to work on it when I get the time.
Note that the precision for the volume profile is per candle, so some levels can have visuals as others but lower volume.
The slot (level) volume has to have a lower difference to the volume included in the shelf than the next volume to be checked to be included. If the level being checked for inclusion in a shelf is at the end of boundaries (high and low) of the volume profile, the volume has to be higher than the golden ratio of the volume before.
You can also use this indicator if you just want a volume profile to show, just set the the number of zones to plot (in 'Shelves') to 0.
I hope I haven't forgotten anything and that it's clear, let me know otherwise.
Best of trading luck!
Market Structure Volume Distribution [LuxAlgo]The Market Structure Volume Distribution tool allows traders to identify the strength behind breaks of market structure at defined price ranges to measure de correlation of forces between bulls and bears visually and easily.
🔶 USAGE
This tool has three main features: market structure highlighting, grid levels, and volume profile. Each feature is covered more in depth below:
🔹 Market Structure
The basic unit of market structure is a swing point, the period of the swing point is user-defined, so traders can identify longer-term market structures. Price breaking a prior swing point will confirm the occurrence of a market structure.
The tool will plot a line after a market structure is confirmed, by default the lines on bullish MS will be green (indicative of an uptrend), and red in case of bearish MS (indicative of a downtrend).
🔹 Grid Levels
The Grid visually divides the price range contained inside the tool execution window, into equal size rows, the number of rows is user-defined so users can divide the full price range up to 100 rows.
The main objective of this feature is to help identify the execution window and the limits of each row in the volume profile so traders can know in a simple look what BoMS belongs to each row.
There is however another use for the grid, by dividing the range into equal-sized parts, this feature provides automatic support and resistance levels as good as any other.
Grid provides a visual help to know what our execution window is and to associate MS with their rows in the profile. It can provide S/R levels too.
🔹 Volume Profile
The volume profile feature shows in a visually easy way the volume behind each MS aggregated by rows and divided into buy and sell volume to spot the differences in a simple look.
This tool allows users to spot the liquidity associated with the event of a market structure in a specific price range, allowing users to know which price areas where associated with the most trading activity during the occurrence of a market structutre.
🔶 SETTINGS
🔹 Data Gathering
Execute on all visible range: Activate this to use all visible bars on the calculations. This disables the use of the next parameter "Execute on the last N bars". Default false.
Execute on the last N bars: Use last N bars on the calculations. To use this parameter "Execute on all visible range" must be disabled. Values from 20 to 5000, default 500.
Pivot Length: How many bars will be used to confirm a pivot. The bigger this parameter is the fewer breaks of structure will detect. Values from 1, default 2
🔹 Profile
Profile Rows: Number of rows in the volume profile. Values from 2 to 100, default 10.
Profile Width: Maximum width of the volume profile. Values from 25 to 500, default 200.
Profile Mode: How the volume will be displayed on each row. "TOTAL VOLUME" will aggregate buy & sell volume per row, "BUY&SELL VOLUME" will separate the buy volume from the sell volume on each row. Default BUY&SELL VOLUME.
🔹 Style
Buy Color: This is the color for the buy volume on the profile when the "BUY&SELL VOLUME" mode is activated. Default green.
Sell Color: This is the color for the sell volume on the profile when the "BUY&SELL VOLUME" mode is activated. Default red.
Show dotted grid levels: Show dotted inner grid levels. Default true.
RSI Order Blocks [UAlgo]The "RSI Order Blocks " identifies and visualizes potential order blocks based on the Relative Strength Index (RSI) indicator. These zones may indicating potential support or resistance levels.
🔶 Key Features :
RSI-based Order Block Identification: The script utilizes the RSI indicator to identify potential order blocks. It detects pivot highs and lows in the RSI, which are indicative of potential reversal points, and marks these areas as potential order blocks.
Order Block Visualization: Identified order blocks are visually represented on the chart, making it easy for traders to recognize and interpret these significant price zones. Both bullish and bearish order blocks are differentiated by color, enhancing clarity and ease of analysis. Additionally, within each order block, the RSI value of that block is also shown.
RSI Overbought/Oversold Filter: Optionally, users can apply a filter based on RSI levels to refine the detection of order blocks. This filter prevents the creation of order blocks when the RSI is within specified overbought or oversold conditions (default between 30 and 70), helping traders focus on areas of potentially significant price action.
An Example with the OB/OS Filter Feature Turned Off:
An Example with the OB/OS Filter Feature Turned On:
Mitigation of Broken Order Blocks: Provides flexibility in selecting the mitigation method (based on close or wick) for determining order block breaches.
Customizable Parameters: The script offers a range of customizable parameters to tailor the detection and visualization of order blocks to suit individual trading preferences. Users can adjust parameters such as RSI Length, Order Block Detection Sensitivity, Mitigation Method, and order block style to fine-tune the analysis according to their trading strategy.
🔶 Disclaimer :
Not Financial Advice: This indicator is intended for educational and informational purposes only. It does not constitute financial advice or recommendations to buy, sell, or hold any financial instruments.
Use at Own Risk: Trading involves substantial risk of loss and is not suitable for all investors. Users of this indicator should exercise caution and conduct their own research and analysis before making any trading decisions.
Performance Not Guaranteed: Past performance is not indicative of future results. While the indicator aims to assist traders in analyzing market trends, there is no guarantee of accuracy or success in trading operations.
Money Flow Profile [LuxAlgo]The Money Flow Profile is a charting tool that measures the traded volume or the money flow at all price levels on the market over a specified time period and highlights the relationship between the price of a given asset and the willingness of traders to either buy or sell it, allowing traders to reveal dominant and/or significant price levels and to analyze the trading activity of a particular user-selected range.
This tool combines a volume/money flow profile, a sentiment profile, and price levels, where the right side of the profile highlights the distribution of the traded activity/money flow at different price levels, the left side of the profile highlights the market sentiment at those price levels, and in the middle the price levels.
🔶 USAGE
A volume/money flow profile is an advanced charting tool that displays the traded volume/money flow at different price levels over a specific period. It helps traders visualize where the majority of trading activity/money flow has occurred.
A sentiment profile is a difference between buy and sell volume/money flow aiming to highlight the sentiment/dominance at specific price levels.
Each row of the profile presents figures on volume and money flow specific to price levels.
High volume/money flow nodes indicate areas of high activity and are likely to act as support or resistance in the future. They attract price and try to hold it there. Conversely, low-volume nodes are areas with low trading activity, that are less subject to get revisited by the price. The market often bounces right over these levels, not staying for long. The "Profile Heatmap" option of the script helps to better emphasize the trading activity within each areas.
By measuring the traded activity at each price level the script presents an ability to highlight the consolidation zones, in other words, highlights accumulation and distribution zones. When the price moves toward one end of the consolidation and volume pick up, it can foreshadow a potential breakout.
Level of Significance, Point of Control, Highest Sentiment Zone, and Profile Price levels are some of the other profile-related options available with the script.
🔶 SETTINGS
The script takes into account user-defined parameters and plots the profiles, where detailed usage for each user-defined input parameter in indicator settings is provided with the related input's tooltip.
🔹 Profile Generic Settings
Lookback Length / Fixed Range: Sets the lookback length.
Profile Source: Sets the profile source, Volume, or Money Flow.
🔹 Profile Presentation Settings
Volume/Money Flow Profile: Toggles the visibility of the Volume/Money Flow Profile.
High Traded Nodes: Threshold and Color option for high traded nodes.
Average Traded Nodes: Color option for average traded nodes.
Low Traded Nodes: Threshold and Color option for low traded nodes.
🔹 Sentiment Profile Settings
Sentiment Profile: Toggles the visibility of the Sentiment Profile.
Sentiment Polarity Method: Sets the method used to calculate the up/down volume/money flow.
Bullish Nodes: Color option for Bullish Nodes.
Bearish Nodes: Color option for Bearish Nodes.
🔹 Profile Heatmap Settings
Profile Heatmap: Toggles the visibility of the profile heatmap.
Heatmap Source: Sets the source of the profile heatmap, Volume/Money Flow Profile, or Sentiment Profile.
Heatmap Transparency: Control the transparency of the profile heatmap.
🔹 Other Presentation Settings
Level of Significance: Toggles the visibility of the level of significance line/zone.
Consolidation Zones: Toggles the visibility of the consolidation zones.
Consolidation Threshold, Color: Sets the threshold value and zone color.
Highest Sentiment Zone: Toggles the visibility of the highest bullish or bearish sentiment zone.
Profile Price Levels, Color, Size: Toggles the visibility of the profile price levels, and sets the color and the size of the level labels.
Profile Range Background Fill: Toggles the visibility of the profiles range.
🔹 Other Settings
Number of Rows: Specify how many rows each profile histogram will have.
Profile Width %: Alters the width of the rows in the histogram, relative to the profile length
Profile Text Size: Alters the size of the text. Setting to Auto will keep the text within the box limits.
Profile Horizontal Offset: Enables to move profile in the horizontal axis.
🔶 RELATED SCRIPTS
Liquidity-Sentiment-Profile
Swing-Volume-Profiles
For more and other conceptual scripts you are kindly invited to visit LuxAlgo-Scripts .
[UST] Protein+Support/Resistance Script: A Comprehensive Overview
Thanks to Pmgjiv for providing the foundation to this improved Version.
In the world of trading, having a robust support and resistance analysis tool can make a significant difference in decision-making and overall strategy. Let's delve into the enhancements made to the support/resistance script and how each component contributes to a trader's arsenal:
Changes and improvements made for the script to help Traders make better rational decisions in their Trading:
1. Multiple Timeframes:
Integrating multiple timeframes into the analysis provides a multi-dimensional view of the market. Traders can now assess price action across different time horizons simultaneously. This feature allows for a deeper understanding of market dynamics and helps in identifying significant support and resistance levels across various timeframes.
2. Timeframe Labels Inside Zones:
By including timeframe labels within the zones, traders can easily identify the origin of each support or resistance level. This contextual information enhances clarity and facilitates more informed decision-making, especially when navigating through multiple timeframes.
3. Visual Zone Update:
Visual updates on zones enable traders to track changes in support and resistance levels in real-time. This dynamic feature enhances the analytical process by providing immediate insights into evolving market conditions, thereby enabling traders to adapt their strategies accordingly.
4. Zones Hit:
Understanding the frequency and intensity of zone hits offers valuable insights into the strength and relevance of support and resistance levels. Traders can gauge the significance of each zone based on its historical interaction with price, thereby gaining a deeper understanding of market sentiment and potential trading opportunities.
5. Option to Turn off Current Timeframe:
The ability to toggle off the current timeframe streamlines chart analysis by focusing only on the most critical support and resistance zones. This decluttering feature helps traders prioritize key levels, reducing cognitive overload and enhancing decision-making efficiency.
Explanation of Additional Functions:
a. Lookback:
The 'lookback' parameter allows traders to customize the age of support and resistance zones based on their trading style and preferences. By adjusting the lookback setting, traders can choose whether to prioritize recent price action or consider historical data, thus tailoring the analysis to their specific trading strategies.
b. Swinglength:
Swinglength determines the sensitivity of the support and resistance zones. By modifying this parameter, traders can control how aggressively the script identifies pivot points. A higher swinglength value results in smoother, more stable zones, whereas a lower value increases sensitivity, capturing smaller price movements.
c. ZigZag Indicator:
The ZigZag indicator plays a pivotal role in identifying significant price reversals. Its period setting determines the number of price bars considered before confirming a pivot point. Traders can utilize this indicator to identify key turning points in the market, aiding in the identification of robust support and resistance levels.
Impact of Sensitivity on Zones:
Adjusting the sensitivity of the ZigZag indicator directly influences the identification and delineation of support and resistance zones. Higher sensitivity levels result in fewer but more robust zones, capturing significant price movements. Conversely, lower sensitivity levels yield more zones, accommodating smaller price fluctuations but potentially introducing noise into the analysis.
d. S/R Range:
The ability to adjust the width of support and resistance zones allows traders to customize the breadth of key areas on a chart. Choosing a wider range encompasses a broader spectrum of prices, thereby identifying more comprehensive support and resistance levels. This flexibility enables traders to adapt their analysis to different market conditions and trading strategies.
Utilization in Trading:
Comprehensive Analysis: By incorporating multiple timeframes, traders gain a holistic view of market dynamics, enabling them to identify high-probability trading opportunities across various horizons.
Contextual Understanding: Timeframe labels within zones provide context, helping traders understand the significance of each level in relation to different timeframes and market conditions.
Real-time Adaptability: Visual zone updates facilitate real-time analysis, allowing traders to adjust their strategies promptly in response to changing market conditions.
Informed Decision-making: By considering zone hits, traders can assess the strength and relevance of support and resistance levels, enhancing their ability to make informed trading decisions.
Customized Analysis: Adjustable parameters such as lookback, swinglength, and sensitivity empower traders to tailor the analysis to their individual trading styles and preferences, enhancing precision and effectiveness.
In summary, these enhancements to the support/resistance script provide traders with a powerful toolkit for analyzing market dynamics, identifying key levels, and executing well-informed trading strategies across various timeframes and market conditions.
Dynamic Order Blocks [LuxAlgo]The Dynamic Order Blocks indicator displays the most recent unmitigated bullish and bearish order blocks on the chart, providing dynamic support/resistance areas.
When price sweeps an order block, this is highlighted by the script indicating a potential reversal.
The average between the displayed order blocks is also displayed.
🔶 USAGE
Order blocks are a popular method of price action analysis, representing price areas where more significant market participants accumulate their orders.
Displaying order blocks dynamically allows obtaining relevant areas of support/resistance. Users can obtain longer-term order blocks using a higher "Swing Lookback" setting.
Users can also use mitigation events to assess the current trend direction, with price mitigating a bearish order block (breaking above the upper extremity) indicating an uptrend, and price mitigating a bullish order block (breaking below the lower extremity) indicating a downtrend.
🔹 Average Level
An average level obtained from the displayed bullish and bearish order blocks is included in the indicator and offers an additional polyvalent dynamic support/resistance level.
The change of direction of the average line can also be indicative of the current trend direction.
🔹 Dynamic Sweeps
Price sweeping the mitigation level of an order block is highlighted on the chart using bordered rectangles. These highlight a breakout failure and can be indicative of a potential reversal.
🔶 SETTINGS
Swing Lookback: Period of the swing detection used to construct order blocks. Higher values will return longer-term order blocks.
Use Candle Body: Use the candle body as the order block area instead of the candle full range.
Smart Money Setup 01 [TradingFinder]Double Order Blocks Proof🔵 Introduction
The Price Action, styled as the "Smart Money Concept" or "SMC," was introduced by Mr. David J. Crouch in 2000 and is one of the most modern technical styles in the financial world. In financial markets, Smart Money refers to capital controlled by major market players (central banks, funds, etc.), and these traders can accurately predict market trends and achieve the highest profits.
In the "Smart Money" style, various types of "order blocks" can be traded. This indicator uses a type of "order block" originating from "BoS" (Breakout of Structure). The most important feature of this indicator is the confirmation of two order blocks.
🟣 Important
For example, after the first "BoS" and the formation of the first Order Block, if a second "BoS" occurs before touching the price of the first Order Block and the formation of the second Order Block, a trading setup with 2 order blocks is formed, which confirms the dominant market trend.
For a better understanding of this subject, see the explanations in the following two images.
Bullish Setup Details :
Bearish Setup Details :
🔵 How to Use
After adding the indicator to the chart, you should wait for the formation of the trading setup. You can observe different trading positions by changing the "Time Frame" and "Pivot Period." Generally, the higher the "Time Frame" and "Pivot Period," the more valid the formed setup is.
Bullish Setup Details on Chart :
Bearish Setup Details on Chart :
You can access the "Pivot Period" input through the settings.
Order Blocks Indicator [TradingFinder] Lightning|CHOCH |OB | BOS🔵 Introduction
In "Price Action," an "Order Block" is essentially an area on the price chart where significant players such as institutional traders have executed their moves by placing noteworthy orders. These points often indicate areas where price either attempts to break through (resistance) or returns when it reaches there (support).
Therefore, when discussing the identification of order blocks, we typically refer to finding points where the price has stalled for a while and has accumulated strength before making a significant move in one direction.
Essentially, order blocks assist traders in understanding where large players with "smart money" have likely placed their bulk orders in the market. Traders use these order blocks as part of their overall analysis to identify probable levels where price may change direction.
This version of the order block indicator is designed for traders, adding many indicators to their charts. The minimal design helps minimize disruptions to user focus.
🔵 Identification of Order Blocks
To identify order blocks, first, a "Level Break" must occur. To identify a "Demand Zone," a "High Level Break" is required, and to identify a "Supply Zone," a "Low Level Break" is needed.
Demand Zone :
Supply Zone :
🔵 "Change of Character" or "Market Shift Structure"
"ChoCh" or "MSS" is the "Break Level" that is contrary to the previous trend. For example, if a "Bearish Level" is established in the market and consecutive "Low Levels" are being broken, the price turns upward, breaking a "High Level." This break is called "ChoCh" or "MSS."
🔵 "Break of Structure"
"Break of Structure," or "BoS" for short, is the "Break Level" in the direction of the current trend. For example, if a "Bullish Level" is established in the market, when the price breaks a "High Level," a "BoS" has occurred.
🔵 Features
🟣 Major Level
This feature helps you easily identify major levels. These levels form when the price breaks another major level.
🟣 Refine Order Block
The "Refinement" feature allows you to adjust the width of the order block based on your strategy. There are two modes, "Aggressive" and "Defensive," in Order Block Refine. The difference between "Aggressive" and "Defensive" lies in the width of the order block. For "Risk Averse" traders, the "Defensive" mode is suitable because it provides smaller stop losses and larger reward-to-risk ratios. For "Risk Taker" traders, the "Aggressive" mode is more suitable. These traders prefer to enter trades at higher prices and this mode, where the width of the order block is greater, is more suitable for this group of individuals.
🔵 How to Use
After adding the indicator to your chart, you will see a visual similar to the image below. Green order blocks are "Demand Zones" and red order blocks are "Supply Zones." The midpoint of the order blocks also indicates 50% of it.
Refine Order Block is defaulted to On and refines the order blocks. If you want the order blocks to remain original, you should set it to Off.
Refine is defaulted to "Defensive" mode. If you want it to be in "Aggressive" mode, you should change its mode through Refine Type.
Displaying "Major Levels" is turned off by default and to display them, you should set "Show High Level" and "Show Low Level" to "Yes." You can use these lines to identify liquidity or determine stop loss and take profit levels.
TradesAI - Elite (Premium)This is an all-inclusive, premium indicator that focuses mainly on price action analysis, a form of looking at raw price data and market structure to analyze and capture areas of interest where price could react.
This indicator is a perfect trading companion that saves you a lot of time in trading price action. Some of the popular methods that use price action analysis are "Smart Money Concepts (SMC)", "Inner Circle Trader (ICT)", and "Institutional Trading".
🔶 POWERFUL TOOLS
The indicator combines three main tools as a trading suite:
Trendlines
Market Structure Breakouts (MSB)
Order Blocks (OBs) and Reversal Order Blocks (ROBs)
These 3 main tools are interconnected together. Below we go over each, and then explain how and why they are brought in together. Please also note that the indicator's settings have tooltips next to most of them, with more detailed information.
🔶 TRENDLINES
This indicator automatically draws the most relevant Trendlines from pivot high/pivot low (based on the defined settings) as origins, while keeping track of candle closes across these Trendlines to adjust or invalidate accordingly.
The indicator will draw all possible Trendlines up to the maximum allowed by TradingView's PineScript. It uses a bullish pivot high candle to draw downtrends, and a bearish pivot low candle to draw uptrends. The algorithm will draw the most suitable active Trendlines from those origin points.
The indicator takes the origin point as the first point of the Trendline, then starts looking for the immediate next same-type candle (bullish to bullish or bearish to bearish), to draw the Trendline between the origin candle and this newer candle.
An uptrend is a ray connecting two bearish candles, as long as the second candle has a Low higher than the low of the origin (first) candle. A downtrend is a ray connecting two bullish candles, as long as the second candle has a high lower than the high of the origin (first) candle.
Upon drawing, the indicator then starts monitoring and adjusting this Trendline, by keeping the origin always the same but changing the second point. The goal is to keep reducing the slope of the Trendline till it is at 0 degrees (horizontal line). That then makes the Trendline "final". Note that you have the option to keep all Trendlines or just show the final, in the settings.
So, the algorithm has three states for the Trendlines:
Initial: not tested, meaning price hasn't yet broken through it and closed a candle beyond it, to cause a re-adjustment of this Trendline.
Broken: a candle hard closed (opened and closed) across it but still, the direction of the trend is maintained with a new Trendline from the same origin – could be replaced (or kept on the chart as a "backside", which is what we call a broken Trendline to be tested from the opposite side) with a new Trendline from the same origin, to the newest candle that caused the break to happen, as then it becomes the new second point of that Trendline.
Final: a candle hard closed (opened and closed) across it and can't draw a new Trendline from the same origin maintaining the direction of the trend (so an uptrend becomes a downtrend or a downtrend becomes an uptrend at this point, which is not allowed). This marks the end of the Trendline adjustment for that origin.
To summarize the Trendlines algorithm, imagine starting from a candle and drawing the Trendline, then keep re-adjusting it to make its slope less and less, till it becomes a horizontal line. That's the final state.
Here is a step-by-step scenario to demonstrate the algorithm:
Notice how first an Uptrend (green ray) is drawn between point A origin pivot (picked by our smart algorithm) and point B, both marked by green arrows:
Uptrend then turned into backside (where it flips from diagonal support to resistance where liquidity potentially resides):
Then a new uptrend is drawn from the same point A origin pivot to a new point B matching the filters in settings.
Finally, it turns also into a backside and is considered final because no more uptrends could be drawn from the same point A origin point.
Unlike traditional Trendline tools, this indicator takes into account numerous rules for each candlestick to determine valid support and resistance levels, which act as liquidity zones.
Unlike conventional Trendline tools, this indicator allows the user to define the pivot point left and right length to capture the proper ones as origins, then automatically recognizes and extends lines from them as liquidity zones where a reaction is expected. Moreover, the indicator monitors those Trendlines in real-time to switch them from buying to selling zones, and vice-versa, as the price structure changes.
Features
Log vs. Linear scale switch to show different Trendlines accordingly. When updating the Trendlines, or deciding whether Touches/Hard Closes are met, it makes a difference.
Ability to show all forms of Trendlines, final Trendlines or just backside Trendlines.
Why is it used?
For experienced traders, it offers the advantage of time efficiency, while new traders can bypass the steep learning curve of drawing Trendlines manually, which could practically be drawn between any two candlesticks on the chart (many variations).
🔶 MARKET STRUCTURE BREAKOUT (MSB)
The Market Structure Breakouts (MSB) tool is a trading tool that detects specific patterns on trading charts and provides ‘take profit’ regions based on the extended direction of the identified pattern. A breakout is a potential trading opportunity that presents itself when an asset's price moves away from a zone of accumulation (i.e. above a resistance level or below a support level) on increasing volume. The most famous form of market structure breakout is double/triple tops/bottoms, or what is referred to as W or M breakouts.
See this example below of how our MSB smart algorithm picked the local bottom of INDEX:BTCUSD
Here is a step-by-step scenario to demonstrate the algorithm:
First, the algorithm picks the pivot points according to our Machine Learning (ML) model, which uses Average True Range (ATR) and Moving Averages of various types to decide. It will then signal a Market Structure Breakout (MSB):
You may either short (sell) this MSB towards the targets (dotted green lines) and/or buy (long) at the targets (dotted green lines). Usually, these targets provide scalp moves, according to our model, but they may also act as strong reversal points on the chart.
Unlike standard indicators, the MSB tool identifies patterns that may not appear in every time frame due to specific conditions that need to be met, including Average True Range (ATR) and Moving Averages at the time of creation. Once these patterns are identified, the tool gives ‘take profit’ regions in the direction of the trading pattern and even allows for trading in the opposite direction (contrarian/counter-trend scalps) once those regions are reached. A confirmed breakout has the potential to drive the price to these specific targets, calculated based on our Machine Learning (ML) model. The Targets are the measured moves placed from the breakout point.
Features
Log vs. Linear scale switch to show different MSBs accordingly based on the ratios.
Detects trading patterns with specific conditions.
Ability to specify how sensitive the pivot points are for capturing market structure breakouts.
Provides take profit regions in the extended direction of the pattern.
Allows for versatile trading styles by permitting trades in the opposite direction (contrarian or counter-trend) once the take profit region is reached.
Highlights 2 levels of interest for potential trade initiation (or as targets of the MSB move).
🔶 ORDER BLOCK (OB) and REVERSAL ORDER BLOCK (ROB)
Before diving deeper into OBs and ROBs, you may consider the following chart for a general understanding of price ladders, and how they break. This is a bearish price ladder leaving Lower Lows and Lower Highs after an initial Low and High (L->H->LL->LH). Bullish ladders are the opposite (H->L->HH->HL).
In this bearish ladder case, notice the numbers representing the highs made (being lower). While this is a clean structure, markets don't always create such clean ladders, but you may switch to a higher timeframe to see it in a clearer form (usually, you will be able to spot it there).
In SMC or ICT concepts, the "Break Of Structure (BOS)" is pretty much creating a new lower low (LL) for the bearish ladder (and the creation of a higher high (HH) for the bullish ladder). By doing so, markets are grabbing liquidity below these levels and could either continue the ladder or stop/flip it. This gives you the context of how the ladder prints.
Price usually ends the ladder with a "Change of Character (CHoCH)", which represents a BOS (to grab liquidity) followed by an aggressive move in the opposite direction, which could lead the market to close the gaps and balance out. It is considered a good practice to then target liquidity in the opposite direction when a CHoCH happens, meaning for a bearish ladder you may target the pivots marked by 3, 2 and 1 at the top (start of the ladder).
Now we move to Order Blocks (OBs) and Reversal Order Blocks (ROBs). Think of them as sniper zones or micro ladders inside the bigger ladder/structure.
Order Blocks are usually used as zones of support and resistance on a trading chart where liquidity is present, or what some traders call "potential institutional interest zones". Order Blocks can be observed at the beginning of these strong moves of BOS or the CHoCH, leaving behind a zone (one or more candles) to be revisited later to balance the market. Therefore, these are interesting levels to place Limit/Market orders (sell the peaks or buy the valleys) instead of doing so at the swing highs or swing lows of the ladder (where BOS or CHoCH happened). The idea here is that the price could go deep into the ladder's step (peak or valley), and by doing so, it usually goes to these zones.
A bullish Order Block (Valley-OB) is the last bearish candle of a downtrend before a sequence of bullish candles (thus forming a "Valley"). A bearish Order Block (Peak-OB) is the last bullish candle of an uptrend before a sequence of bearish candles (thus forming a "Peak"). Our indicator captures the full range zones of the OB meaning not only the last candle but the sequence of same-type candles immediately next to it, which creates a zone, thus the name "OB/ROB Zone". Not only does the tool mark those levels on the chart, but it also has a smart tracking algorithm to remove the appropriate levels dynamically. It will monitor, candle by candle, what is happening to all the OBs/ROBs, and update them according to how they are being tested/visited (eg. weak testing being a touch, and strong testing being a touch of the same colour candle).
Bullish Valley-OB:
Bearish Peak-OB:
The indicator follows our concept of "Zone Activation" to determine whether to mark zones with dashed or solid lines.
If we take a bearish Peak-OB as an example, notice how it first gets drawn with a dashed red line (as the algorithm monitors how far the price moved away from the zone):
As price moves away (distance based on our Machin Learning (ML) model), it turns into solid lines:
Some people prefer to enter market orders or limit (pending) orders close to the zone, while others wait for it to hit. You may wait for these zones to turn into solid lines (meaning that the price made a decent move away from it before revisiting it). It depends on your trading strategy.
When Order Block (OB) zones break instead of holding the ladder, they turn into what we call Reversal Order Blocks (ROB); our algorithm of flipping these zones where price could react from the other side of the OB. Our algorithm monitor and highlight the most suitable ones to trade, based on +30 conditions and variables by our Machine Learning (ML) models. Examples of ROBs in the SMC or ICT trading community are a "Breaker Block", a "Mitigation Block" or a "Unicorn Setup". However, our algorithm filters the zones based on many factors such as ratios of price movement before, inside and after these zones, along with many other factors.
The algorithm monitors the ratios of how price moved into and away from the OB/ROB, as well as the type of move happening, to then filter the ones that are considered of high probability to break/not do a reaction.
A bullish Valley-OB (green) turns into a bearish Valley-ROB (neon red) where you may short (sell), while a bearish Peak-OB (red) turns into a bullish Peak-ROB (neon green) where you may long (buy).
Example of a bullish Valley-OB that turned into a bearish Valley-ROB:
Features
Log vs. Linear scale switch to show OBs/ROBs accordingly based on the ratios and the price action around these zones (before and after creation).
Uses our Machine Learning (ML) model to determine relevant Order Blocks (OBs) to show or hide based on price action.
Considers distribution and accumulation candles to find relevant Order Blocks.
Various types of triggers to mark those Order Blocks and their zones: breakout, close, hard close (open and close) or full close (low, high, open and close).
Monitors the 1:1 expansion of price from key areas of interest, which would change the importance of the zones through our concept of “Zone Activation”.
Allows for customization in the settings to display different types of Order Blocks (e.g., tested or untested).
Marking and invalidating levels based on many variables, including single or multiple candle zones, touching/closing beyond specific levels, weak/strong testing criteria, price tolerance % (near a level), and many more.
Provides color-coded visual representation for easier interpretation.
Why is it used?
Order Blocks (OB) and Reversal Order Blocks (ROB) represent the building blocks of price ladders, in conjunction with Swing Highs and Swing Lows. By identifying where liquidity is potentially present, they become common targets for big market players. Additionally, they provide clear invalidation points based on various types of candle closes, such as hard closes or simply a candle close.
One strategy that could be used is to open positions at these OB or ROB Levels as long as the chart maintains the trend (ladder), for a potentially higher win rate (or against it for a quick scalp). Be mindful of the breaking of a ladder or the building of a new one. A ladder breaks with a hard close (open and close) of a candle across the closest two levels; a ladder builds by not breaking back down across the levels it has tested. By definition, strong ladders will have a few untested levels and come back to wick them but still retain the structure of the laddering direction (trending with Lower Lows + Lower Highs or Higher Lows + Higher Highs).
🔶 COMBINING ALL TOOLS
In summary, Trendlines could be great tools to give you a general context of whether the price is laddering up or down. Once you spot the ladder, your goal is to either trade in its direction (not to go against the trend) or to counter-trend trade (contrarian). To do so, you could use the MSB tool to spot these BOS/CHoCH. And to give you more precise entries, you may rely on the OB/ROB zones which usually mesh over the ladder, to provide a sniper entry!
🔶 RISK DISCLAIMER
Trading is risky, and most day traders lose money. The risk of loss in trading can be substantial. Decisions to buy, sell, hold or trade in securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Past performance does not guarantee future results. All content is to be considered hypothetical, selected after the fact, in order to demonstrate our product and should not be construed as financial advice. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.
