Time-Weighted Price Action Indicator

11 Mac

The Time-Weighted Price Action Indicator is a simple yet effective tool designed to detect consolidation zones based on time duration and highlight potential reversal points using a contrarian breakout logic. Instead of following traditional breakout strategies, this indicator aims to capitalize on false breakouts and reversal entries.

How It Works
• The indicator identifies a price range (zone) using a configurable lookback period.
• If the price remains within this range for a specified number of bars (threshold), a consolidation zone is confirmed.
• Once a breakout or breakdown from this zone occurs, the indicator triggers a reversed signal — suggesting a potential reversal instead of a trend-following entry.
• Support and resistance levels are marked visually, and BUY/SELL labels are plotted when price re-enters the zone, indicating potential exhaustion or traps.


Key Features
• ✅ Time-based consolidation detection
• ✅ Contrarian signal logic (Buy at breakdowns, Sell at breakouts)
• ✅ Dynamic zone plotting with support/resistance visualization
• ✅ Auto-reset after each breakout for fresh zone detection
• ✅ Visual labels and alerts for BUY/SELL signals


How to Use
• Ideal for range-bound markets or identifying trap zones around support/resistance.
• Use in conjunction with volume, momentum, or trend filters to refine entries.
• Can complement mean reversion strategies or be used as a signal confirmation tool.

Why This Combination?

This approach blends time-based consolidation logic with a contrarian price action perspective, offering traders a different lens to analyze markets. Instead of blindly following breakouts, it highlights areas where price rejections and false breakouts often occur — common in algorithm-driven markets.

Why It’s Worth Using

This indicator helps you stay ahead of trap zones, identify reversal spots, and understand price behavior in consolidation zones — a critical edge, especially in sideways or choppy markets. It adds context to price movement, helping traders avoid common breakout failures.

Note:
• No performance guarantees or exaggerated claims.
• No solicitation or promotional language used.
• This is a free, open-source educational tool meant to aid price action understanding.

11 Mac

Nota Keluaran

Visual Components
• 🔵 Thin Blue Line = Dynamic Resistance Level (updated from recent highs within lookback period)
• 🔴 Thin Red Line = Dynamic Support Level (updated from recent lows within lookback period)
• 🔵 Circle-Shaped Blue Line = Confirmed Ceiling Resistance Zone (valid only when time threshold is met)
• 🔴 Circle-Shaped Red Line = Confirmed Floor Support Zone (valid only when time threshold is met)
• 🟢 BUY Label = Price re-enters support zone after false breakdown
• 🔴 SELL Label = Price re-enters resistance zone after false breakout