SD Levels

"SD Levels", is a powerful tool for technical analysis that automatically calculates and plots key price levels based on the price action within a user-defined time range. It functions by identifying a specific trading session, calculating the midpoint and half the range of that session's price action, and then using these values as a baseline and a standard deviation equivalent to project a series of customizable Fibonacci-style levels into the future.
These projected levels can act as potential support and resistance zones, helping traders identify significant price areas where the market might react. The indicator is highly customizable, allowing users to tailor its functionality and appearance to their specific trading strategies.
Key Features
• User-Defined Time Range: You can specify a particular time window (e.g., the first three hours of the New York session) and a corresponding timezone. The indicator will base all its calculations on the high, low, and closing prices within this defined period each day.
• Standard Deviation-Based Levels: The core of the indicator is its use of a "standard deviation" value, which is calculated as half the range (High - Low) of the specified session. The baseline, or "0" level, is the midpoint of this range.
• Customizable Fibonacci Levels: The script allows for the plotting of up to 11 distinct levels, each defined by a multiplier of the calculated standard deviation. Users have complete control over:
o The level's multiplier value.
o Whether the level is displayed.
o The color, style (solid, dashed, dotted), and thickness of the level line.
o The option to display a text label for each level.
• Mirrored Levels: An option is available to automatically "mirror" each level on the opposite side of the baseline. For example, if you have a level at 1.5 standard deviations above the baseline, enabling the mirror function will also plot a corresponding level at -1.5 standard deviations below it.
• Visual Customization: Beyond individual line styles, you can adjust the overall appearance of the levels, including:
o Adding a transparent background fill between the levels to enhance visibility.
o Adjusting the padding (extension) of the level lines to the right of the chart.
o Controlling the size of the labels and choosing to display the level value, the price value, or both.
• Historical Analysis: The indicator can display these calculated levels for a user-specified number of previous days, allowing for back-testing and analysis of how price has historically interacted with these zones.
How It Works
1. Session Identification: The indicator first identifies the bars on the chart that fall within the user-defined Range Time and Timezone.
2. Range Calculation: During this identified session, it records the highest high and the lowest low.
3. Baseline and Deviation Calculation: At the end of the session, it calculates two critical values:
o Baseline: The midpoint of the session's range, calculated as (range_high + range_low) / 2. This serves as the 0 level.
o Standard Deviation Value: Half of the session's total range, calculated as (range_high - range_low) / 2.
4. Level Plotting: Using the baseline and the standard deviation value, the indicator calculates and plots the various user-defined Fibonacci levels. For instance, a level with a multiplier of 2.0 would be plotted at baseline + (2 * stdev_val).
5. Drawing and Extension: The calculated levels are drawn starting from the beginning of the session and are extended forward in time, updating with each new bar. This allows traders to see how the current price is interacting with the levels derived from the earlier session.
In essence, the "SD Levels" indicator provides a structured and automated way to identify and visualize significant, data-driven price levels based on the volatility and price action of a specific, important trading period.