Stan's Magic Potion

Stan's Magic Potion Indicator
Overview
"Stan's Magic Potion" is a robust Pine Script® v6 indicator designed for short-term trading on 3-minute and 5-minute time frames, optimized for major indices such as SPY, SPX, QQQ, and $IWM. This indicator integrates Opening Range Breakout (ORB) logic, Dynamic Momentum Metrics (DMM), VWAP, and confluence-based entry signals to deliver clear, actionable trade setups for bullish and bearish opportunities.

Key Features

Opening Range Breakout (ORB): Captures the high and low of the 9:30 AM – 9:45 AM EST opening range, locking these levels at 9:45 AM to identify breakout zones. Breakouts above or below these levels are highlighted with background colors for easy visualization.

DMM Cross Signals: Utilizes fast and slow Dynamic Momentum Metrics (DMM) to generate "CALL" and "PUT" signals on crossovers, with dynamic fill colors between the DMM lines to indicate trend direction.

Confluence Entry at 10:00 AM: Generates high-probability "CALL" or "PUT" signals at 10:00 AM when price aligns with key levels (above/below EMA 200, VWAP, and locked ORB high/low) and DMM trend confirmation.

VWAP and EMA 200: Plots VWAP and a 200-period EMA as dynamic support/resistance levels to aid in trend analysis.

Visual Clarity: Includes clear labels for trade signals, ORB lock markers, and color-coded plots for intuitive chart reading.

How to Use

Time Frame: Best used on 3-minute or 5-minute charts for SPY, SPX, QQQ, or $IWM.

Trade Setups:

* Look for "CALL" or "PUT" signals from DMM crossovers throughout the session.

* Prioritize 10:00 AM confluence signals for higher-probability entries when price aligns with EMA 200, VWAP, and ORB levels.

* Monitor ORB breakouts (highlighted by background colors) for momentum-driven trades.

Risk Management: Always use proper risk management and confirm signals with additional analysis, as market conditions may vary.

Settings

* The indicator is pre-configured with default parameters (DMM settings, ORB time window, VWAP). No user inputs are required, ensuring simplicity and ease of use.

* Maximum bars back is set to 500 for performance optimization.

Notes

* This indicator is subject to the terms of the Mozilla Public License 2.0.

* © StanTheTradingMan.

* Designed for educational and informational purposes. Always backtest and validate strategies before live trading.

Why Use Stan's Magic Potion?
This indicator combines multiple proven technical concepts (ORB, DMM, VWAP) into a single, cohesive tool tailored for short-term traders. Its focus on key intraday time windows (9:30–9:45 AM and 10:00 AM) and clear visual cues make it an excellent choice for those seeking precision in fast-moving markets.

License
This Pine Script® code is licensed under the Mozilla Public License 2.0.