Salman Indicator: Multi-Purpose Price Action

4 Nov

Salman Indicator: Multi-Purpose Price Action Tool for Pin Bars, Breakouts, and VWAP Anchoring

This indicator provides a comprehensive suite of price action insights, designed for active traders looking to identify key market structures and potential reversals. The script incorporates a Quarterly VWAP for trend bias, marks pin bars for possible reversal points, highlights outside bars for volatility signals, and indicates simple breakouts and pivot-level breaks. Customizable settings allow for flexibility in various trading styles, with default settings optimized for daily charts.

• Outside Bars: Represented by an ⤬ symbol on the chart, these indicate bars where the current high is greater than the previous bar’s high, and the low is lower than the previous bar’s low, signaling high volatility and potential market reversals.
  
  
• Pin Bars: Denoted by a small dot at the top or bottom of a candle’s wick, these are crucial signals of potential reversal areas. Pin bars are identified based on the percentage length of their shadows, with adjustable strictness in settings.
  
  
• Quarterly VWAP: The light blue line on the chart represents the VWAP (Volume-Weighted Average Price), which is anchored to the Quarterly period by default. The VWAP acts as a directional bias filter, helping you to determine underlying market trends. This period, source, and offset are fully adjustable in the script’s settings.
  
  
• Simple Breaks: Hollow candles on the chart indicate "simple breaks," defined when the current bar closes above the previous high or below the previous low. This is an effective way to highlight directional momentum in the market.
  
  
• Bonus Pivot Breaks: The tilde symbol ~ appears when the price closes above or below prior pivot high/low levels, helping traders spot significant breakout or breakdown points relative to recent pivots.

Alerts

• []Simple Breaks: Alerts you when a breakout occurs beyond the previous bar’s high or low. []Pin Bars: Notifies you of potential reversal points as indicated by bullish or bearish pin bars.
• Outside Bars: Triggers an alert whenever an outside bar is detected, indicating possible volatility changes.

How to Use

• VWAP for Trend Bias: Use the Quarterly VWAP line to gauge overall market trend, with settings that allow adjustment to daily, weekly, monthly, or even larger time frames.
  
  
• Pin Bars for Reversal Potential: Look for the dot markers on candle wicks, where the strictness of the pin bar detection can be adjusted via settings to match your trading preference.
  
  
• Simple and Pivot Breaks for Momentum: Watch for hollow candles and the tilde symbol ~ as indicators of potential breakout momentum and pivot break levels, respectively.

This script can serve traders on multiple timeframes, from daily to weekly and beyond. The flexible configuration allows for adjustments in VWAP anchoring and pin bar criteria, providing a tailored fit for individual trading strategies.