Range Average Retest Model [LuxAlgo]The Range Average Retest Model tool highlights setups from the range average retest entry model, a model using the retest of the average between two opposite swing points as an entry.
This tool uses long-term volatility coupled with user-defined multipliers to filter out swing areas and set take profit and stop loss levels for all trades.
Key features include:
Draw up to 165 swing areas and their associated trades
Filter out swing areas using Pivot Length , Selection Mode and Threshold parameters
Filter out trades with Maximum Distance and Minimum Distance parameters
Enable or disable swing areas and select default colors
Enable or disable overlapping trades and change the default colors for Take Profit and Stop Loss zones
🔶 USAGE
The "Range Average Retest Model" is an entry model that enters a position when the price retests the average made between two swing points. Users can determine the period of the detected swing points from the "Pivot Length" setting.
The conditions for long or short trades, regardless of whether the swing area is bullish or bearish, are as follows:
Long positions: the current bar close is below the swing area average and the last bar close was above it.
Short positions: the current bar close is above the swing area average price and the last bar close was below it.
Each trade is displayed on the chart with a line connecting it to its swing area highlighting the range average, a green area for the take profit, and a red area for the stop loss.
Both the Take Profit and Stop Loss levels are calculated by applying your own multiplier in the settings panel to the long-term volatility measure, in this case, the average true range over the last 200 bars.
Trades will remain open until they reach either the Stop Loss or Take Profit price levels.
🔹 Filtering Swing Areas
The daily chart of the Nasdaq-100 futures (NQ) with pivot length 2 and bullish selection mode: it only detects bullish swing areas, but they are smaller and more numerous.
Traders can manipulate the behavior of the swing areas from the settings panel.
The Selection mode will filter areas by bias: it will detect bullish areas, bearish areas, or both.
The Threshold parameter is applied to the long-term volatility to filter out areas where the average prices are too close together; the higher the value, the greater the difference between the average prices must be.
🔹 Trades
3-minute chart of the Nasdaq-100 futures (NQ) with pivot length 5, bearish selection mode maximum distance 4, and stop loss 2: many trades detected with very asymmetric risk/reward.
The behavior of the trades is also manipulated from the settings panel.
The maximum and minimum distance parameters specify the number of bars a trade must be away from a swing area.
The Take Profit and Stop Loss parameters are applied to the long-term volatility to obtain their respective price levels.
🔹 Overlapping Trades
Same chart as before, but with overlapping trades: messy, right?
By default the tool does not show overlapping trades, this allows for a cleaner chart.
In the settings panel traders can enable overlapping mode, in which case the tool will show all available trades.
Traders must be aware that the chart can be very crowded.
🔶 SETTINGS
🔹 Swings
Pivot Length: How many bars are used to confirm a swing point. The larger this parameter is, the larger and fewer swing areas will be detected.
Selection Mode: Swing area detection mode, detect only bullish swings, only bearish swings, or both.
Threshold: Swing area comparator. This threshold is multiplied by a measure of volatility (average true range over the last 200 bars), for a new swing area to be detected it must have an average level that is sufficiently distant from the average level of any untouched swing area, this parameter controls that distance.
🔹 Trades
Maximum distance: Maximum distance allowed between a swing area and a trade.
Minimum distance: Minimum distance allowed between a swing area and a trade.
Take profit: The size of the take profit - this threshold is multiplied by a measure of volatility (the average true range over the last 200 bars).
Stop loss: The size of the stop-loss: this threshold is multiplied by a measure of volatility (the average true range over the last 200 bars).
Luxalgo
Monte Carlo Shuffled Projection [LuxAlgo]The Monte Carlo Shuffled Projection tool randomly simulates future price points based on historical bar movements made within a user-selected window.
The tool shows potential paths price might take in the future, as well as highlighting potential support/resistance levels.
Note that simulations and their resulting elements are subject to slight changes over time.
🔶 USAGE
By randomly simulating bar movements, a range is developed of potential price action which could be utilized to locate future price development as well as potential support/resistance levels.
Performing a large number of simulations and taking the average at each step will converge toward the result highlighted by the "Average Line", and can point out where the price might develop assuming the trend and amount of volatility persist.
Current closing price + Sum of changes in the calculation window)
This constraint will cause the simulations to always display an endpoint consistent with the current lookback's slope.
While this may be helpful to some traders, this indicator includes an option to produce a less biased range as seen below:
🔶 DETAILS
The Monte Carlo Shuffled Projection tool creates simulations based on the most recent prices within a user-set window. Simulations are done as follows:
Collect each bar's price changes in the user-set window.
Randomize the order of each change in the window.
Project the cumulative sum of the shuffled changes from the current closing price.
Collect data on each point along the way.
This is the process for the Default calculation, for the 'Randomize Direction' calculation, when added onto the front for every other change, the value is inverted, creating the randomized endpoints for each simulation.
The script contains each simulation's data for that bar with a maximum of 1000 simulations.
To get a glimpse behind the scenes each simulation (up to 99) can be viewed using the 'Visualize Simulations' Options as seen below.
Because the script holds the full simulation data, the script can also do calculations on this data, such as calculating standard deviations.
In this script the Standard deviation lines are the average of all standard deviations across the vertical data groups, this provides a singular value that can be displayed a distance away from the simulation center line.
🔶 SETTINGS
Color and Toggle Options are Provided throughout.
Lookback: Sets the number of Bars to include in calculations.
Simulation Count: Sets the number of randomized simulations to calculate. (Max 1000)
Randomize Direction: See Details Above. Creates a more 'Normalized' Distribution
Visualize Simulations: See Details Above. Turns on Visualizations, and colors are randomly generated. Visualized max does not cap the calculated max. If 1000 simulations are used, the data will be from 1000 simulations, however only the last 99 simulations will be visualized.
Standard Deviation Multiplier: Sets the multiplier to use for the Standard Deviation distance away from the center line.
ICT Immediate Rebalance [LuxAlgo]The ICT Immediate Rebalance aims at detecting and highlighting immediate rebalances, a concept taught by Inner Circle Trader. The ICT Immediate Rebalance, although frequently overlooked, emerges as one of ICT's most influential concepts, particularly when considered within a specific context.
🔶 USAGE
Immediate rebalances, a concept taught by ICT, hold significant importance in decision-making. To comprehend the concept of immediate rebalance, it's essential to grasp the notion of the fair value gap. A fair value gap arises from market inefficiencies or imbalances, whereas an immediate rebalance leaves no gap, no inefficiencies, or no imbalances that the price would need to return to.
Following an immediate rebalance, the typical expectation is for two extension candles to ensue; failing this, the immediate rebalance is deemed unsuccessful. It's important to note that both failed and successful immediate rebalances hold significance in trading when analyzed within a contextual framework.
Immediate rebalances can manifest across various locations and timeframes. It's recommended to analyze them in conjunction with other ICT tools or technical indicators to gain a more comprehensive understanding of market dynamics.
🔹 Multi Timeframe
The script facilitates multi-timeframe analysis, enabling users to display immediate rebalances from higher timeframes.
Enabling the display of higher timeframe candles helps visualize the detected immediate rebalance patterns.
🔹 Dashboard
The dashboard offers statistical insights into immediate rebalances.
🔶 SETTINGS
🔹 Immediate Rebalances
Timeframe: this option is to identify immediate rebalances from higher timeframes. If a timeframe lower than the chart's timeframe is selected, calculations will be based on the chart's timeframe.
Bullish, and Bearish Immediate Rebalances: color customization options.
Wicks 75%, %50, and %25: color customization options of the wick price levels for the detected immediate rebalances.
Immediate Rebalance Candles: toggles the visualization of higher timeframe candles where immediate rebalance is detected.
Confirmation (Bars): specifies the number of bars required to confirm the validation of the detected immediate rebalance.
Immediate Rebalance Icon: allows customization of the size of the icon used to represent the immediate rebalance.
🔹 Dashboard
Dashboard: toggles the visualization of the dashboard, sets its location, and customizes the size of the dashboard.
🔶 RELATED SCRIPTS
Fair-Value-Gap
Thanks to our community for recommending this script. For more conceptual scripts and related content, we welcome you to explore by visiting >>> LuxAlgo-Scripts .
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 .
Crypto Liquidation Heatmap [LuxAlgo]The Crypto Liquidation Heatmap tool offers real-time insights into the liquidations of the top cryptocurrencies by market capitalization, presenting the current state of the market in a visually accessible format. Assets are sorted in descending order, with those experiencing the highest liquidation values placed at the top of the heatmap.
Additional details, such as the breakdown of long and short liquidation values and the current price of each asset, can be accessed by hovering over individual boxes.
🔶 USAGE
The crypto liquidation heatmap tool provides real-time insights into liquidations across all timeframes for the top 29 cryptocurrencies by market capitalization. The assets are visually represented in descending order, prioritizing assets with the highest liquidation values at the top of the heatmap.
Different colors are used to indicate whether long or short liquidations are dominant for each asset. Green boxes indicate that long liquidations surpass short liquidations, while red boxes indicate the opposite, with short liquidations exceeding long liquidations.
Hovering over each box provides additional details, such as the current price of the asset, the breakdown of long and short liquidation values, and the duration for the calculated liquidation values.
🔶 DETAILS
🔹Crypto Liquidation
Crypto liquidation refers to the process of forcibly closing a trader's positions in the cryptocurrency market. It occurs when a trader's margin account can no longer support their open positions due to significant losses or a lack of sufficient margin to meet the maintenance requirements. Liquidations can be categorized as either a long liquidation or a short liquidation.
A long liquidation occurs when long positions are being liquidated, typically due to a sudden drop in the price of the asset being traded. Traders who were bullish on the asset and had opened long positions will face losses as the market moves against them.
On the other hand, a short liquidation occurs when short positions are being liquidated, often triggered by a sudden spike in the price of the asset. Traders who were bearish on the asset and had opened short positions will face losses as the market moves against them.
🔹Liquidation Data
It's worth noting that liquidation data is not readily available on TradingView. However, we recognize the close correlation between liquidation data, trading volumes, and asset price movements. Therefore, this script analyzes accessible data sources, extracts necessary information, and offers an educated estimation of liquidation data. It's important to emphasize that the presented data doesn't reflect precise quantitative values of liquidations. Traders and analysts should instead focus on observing changes over time and identifying correlations between liquidation data and price movements.
🔶 SETTINGS
🔹Cryptocurrency Asset List
It is highly recommended to select instruments from the same exchange with the same currency to maintain proportional integrity among the chosen assets, as different exchanges may have varying trading volumes.
Supported currencies include USD, USDT, USDC, USDP, and USDD. Remember to use the same currency when selecting assets.
List of Crypto Assets: The default options feature the top 29 cryptocurrencies by market capitalization, currently listed on the Binance Exchange. Please note that only crypto assets are supported; any other asset type will not be processed or displayed. To maximize the utility of this tool, it is crucial to heed the warning message displayed above.
🔹Liquidation Heatmap Settings
Position: Specifies the placement of the liquidation heatmap on the chart.
Size: Determines the size of the liquidation heatmap displayed on the chart.
🔶 RELATED SCRIPTS
Liquidations-Meter
Liquidation-Estimates
Liquidation-Levels
Swing Failure Pattern (SFP) [LuxAlgo]The Swing Failure Pattern indicator highlights Swing Failure Patterns (SFP) on the user chart, a pattern occurring during liquidity generation from significant market participants.
A Confirmation level used to confirm a trend reversal is also included. Users can additionally filter out SFP based on a set Volume % Threshold .
🔶 USAGE
Swing failure patterns occur when candle wicks exceed (above/below) a recent swing level but close back below/above it, and occur from more significant market participants engineering liquidity. This pattern can be indicative of a potential trend reversal.
A label and an accentuated wick line highlight the SFP (both can be disabled).
Using a higher "Swings" period will not return different SFP but will however potentially reduce their detection rate.
🔹 Confirmation Level
The confirmation level is the highest point between the previous swing and SFP for a bullish SFP, and the lowest point for a bearish SFP. This level allows confirming a trend reversal after an SFP once the price breaks it.
A small triangle will be displayed when the price closes beyond the confirmation level.
A more reactive and contrarian approach could use the SFP as an entry point, and the confirmation level for taking (partial) profit, or stop loss. The example below shows a possible scenario:
🔹 Volume % Threshold
During the occurrence of an SFP, the Volume % Threshold option allows comparing the cumulative volume outside the Swing level to the total volume of the candle. The following options are included:
Volume outside swing < Threshold: Volume outside the Swing level needs to be lower than x % of total candle volume. Prevent excessive liquidity generation.
Volume outside swing > Threshold: Volume outside the Swing level needs to be higher than x % of total candle volume. Requires more significant liquidity to be generated.
None: No extra filter is applied
Note that in the above case, the left SFP is no longer highlighted because the volume above the swing level was higher than the 25% threshold of the total volume.
When we change the setting to "Volume outside swing > Threshold", we get the reversed situation.
The "Volume outside Swing level" is obtained using intrabar - Lower TimeFrame (LTF) data.
At the intrabar (LTF) level, there are a maximum of 100K bars available. When using the Volume % Threshold filter, a vertical line will highlight the maximum period during which intrabars are available.
🔶 DETAILS
🔹 LTF Settings
When 'Auto' is enabled (Settings, LTF), the LTF will be the nearest possible x times smaller TF than the current TF. When 'Premium' is disabled, the minimum TF will always be 1 minute to ensure TradingView plans lower than Premium don't get an error.
Examples with current Daily TF (when Premium is enabled):
500 : 3-minute LTF
1500 (default): 1-minute LTF
5000: 30 seconds LTF (1 minute if Premium is disabled)
The concerning LTF can be seen at the right-top (default) corner.
🔶 SETTINGS
Swings: Period used for the swing detection, with higher values returning longer-term Swing Levels.
Bullish SFP: enable/disable bullish Swing Failure Patterns.
Bearish SFP: enable/disable bearish Swing Failure Patterns.
🔹 Volume Validation
Validation:
Volume outside swing < Threshold: The volume outside the swing level needs to be lower than x % of the total volume.
Volume outside swing > Threshold: The volume outside the swing level needs to be higher than x % of the total volume.
None: No extra validation is applied.
Volume % Threshold: % of total volume as threshold.
Auto + multiple: Adjusts the initial set LTF
LTF: LTF setting
Premium: Enable when your TradingView plan is Premium or higher
🔹 Dashboard
Show Dashboard: Display applied Lower Timeframe (LTF)
Location: Location of the dashboard
Size: Size of the dashboard
🔹 Style
Swing Lines
Confirmation Lines
Swing Failure Wick
Swing Failure Label
Lines / Labels: Color for lines and labels
SFP Wicks: Color for SFP wick line
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.
Volume Delta Candles [LuxAlgo]Volume Delta Candles provides insights about Intrabar trading activity in an easy-to-interpret manner. Lower timeframe or real-time data is used for displaying Volume Delta percentage against the total volume as a coloured bar part.
The script also highlights the intrabar price with the maximum trading activity, as well as complementary information.
🔶 USAGE
The tool focuses on intrabar volume to provide more information about the trading activity associated with a candle, without having to use an external volume indicator.
Each indicator components is further explained below:
🔹 Volume Delta
The volume delta is obtained by the difference between buy volume and sell volume, where buy volume is the volume associated with a bullish intrabar candle, and sell volume with a bearish intrabar candle.
Positive volume delta is displayed with a green candle area, while negative delta is displayed with a red candle area.
🔹 Bar Coloring
The script displays VD as a percentage of the whole, or from the candle half, depending on the setting ' Display '.
Bars can be coloured as follows:
Full (100%) when Display is set at ' Full Bar '
Half (50% or 100% of half a bar) when Display is set at ' Half Bar '
A negative VD (more bearish than bullish volume) will fill the bar from the top (or centre) of the bar towards the bottom, and a positive VD will fill a bar from the bottom (or centre) of the bar towards the top.
A negative VD on a green candle will show a red-coloured VD against a green-bordered candle. On the other hand, a positive VD on a red candle will show a green-coloured VD against a red-bordered candle.
Colours for VD sentiment opposite to the candle sentiment can be set differently if desired.
🔹 Highest Volume Price Level
The script displays a white (black on light mode) line highlighting the intrabar price level with the highest volume.
When ' Show Previous Max Volume Price ' is checked, a white (black on light mode) dot is displayed 1 bar to the right.
🔶 DETAILS
🔹 Tick/LTF data
The above example used Lower TimeFrame (LTF) data.
The following example uses real-time tick data ( Settings -> Data From )
Both options, LTF or tick data, will show a vertical dotted line where the data starts.
🔹 LTF settings
When ' Data from ' LTF is chosen and ' Auto ' enabled, the LTF will be the nearest possible x times smaller TF than the current TF. When 'Premium' is disabled, the minimum TF will always be 1 minute to ensure TradingView plans lower than Premium don't get an error.
Examples with current Daily TF (when Premium is enabled):
500 : 3 minute LTF
1500 (default): 1 minute LTF
5000: 30 seconds LTF (1 minute if Premium is disabled)
🔹 Notes
Different LTFs give different data, which means different results; this doesn't mean it isn't correct; they are just different data sets.
(LTF is displayed at the top right corner)
To ensure maximum visibility of values, we recommend using Bars from the Bar's style menu.
🔶 SETTINGS
Data from: Lower TimeFrame or real-time Tick data
Resolution: LTF setting
Auto + multiple: Adjusts the initial set resolution
Premium: Enable when your TradingView plan is Premium or higher
🔹 Intrabar Data
Colours
Display: Full/Half bar
Show previous max volume price: White/black dot, showing previous highest volume price level
🔹 Table
Show TF: Show LTF at the top right corner
Colour + table text size
🔹 Details
Show details: label with 'Volume', 'Delta' (VD) and '%'
See USAGE for more information
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.
Sequencer [LuxAlgo]The Sequencer indicator is a tool that is able to highlight sequences of prices based on their relative position to past prices, which allows a high degree of customization from the user.
Two phases are included in this script, a "Preparation" phase and a "Lead-Up" phase, each with a customizable amount of steps, as well as other characteristics.
Users can also highlight the last step leading to each phase completion with a level, this level can eventually be used as a key price point.
🔶 USAGE
The script highlights two phases, each being based on a sequence of events requiring prices to be higher/lower than prices various bars ago.
The completion of the preparation phase will lead to the evaluation of the lead-up phase, however, it isn't uncommon to see a reversal occurring after the completion of a preparation phase. In the script, bullish preparations are highlighted in green, while bearish preparations are highlighted in red.
Completion of a "Lead-Up" phase is indicative of a potential reversal, with a bullish reversal for the completion of a bullish lead-up (in blue), and a bearish reversal for the completion of a bearish lead-up (in orange).
Using a higher length for the preparation/lead-up phases can allow the detection of longer-term reversals.
Users wishing to display levels based on specific phases completion can do so from the settings in the "Preparation/Lead-Up Completion Levels" settings group.
The "Show Last" settings determine the amount of respective levels to display on the chart.
🔶 PREPARATION PHASE
The "Preparation" phase precedes the "Lead-Up" phase. The completion of this phase requires N successive prices to be lower than the closing price P bars ago for a bullish phase, and for prices to be higher than the closing price P bars ago for a bearish phase, where N is the user set "Preparation Phase Length" and P the user set "Comparison Period".
🔹 Refined Preparations
Sequences of the preparation phase can either be "Standard" or "Refined". Unlike the standard preparation previously described a refined preparation requires the low prices from the user-specified steps in "Refined Preparation Steps" to be above the low price of the last step for a bullish preparation phase, and for the high prices specified in the refined preparation steps to be below the high price of the last step for a bearish preparation phase.
🔶 LEAD-UP PHASE
The "Lead-Up" phase is initiated by the completion of the "Preparation" phase.
Completion of this phase requires the price to be lower than the low price P bars ago N times for a bullish phase, and for prices to be higher than the high price P bars ago N times for a bearish phase, where N is the user set "Lead-Up Phase Length" and P the user set "Comparison Period".
Unlike with the "Preparation" phase these conditions don't need to be successive for them to be valid and can occur at any time.
🔹 Lead-Up Cancellation
Incomplete "Lead-Up" phases can be canceled and removed from the chart once a preparation of the opposite sentiment is completed, avoiding lead-ups to be evaluated after completion of complete preparations.
This can be disabled by toggling off "Apply Cancellation".
🔹 Lead-Up Suspension
Like with refined preparations, we can require specific steps from the lead-up phase to be higher/lower than the price on the last step. This can be particularly important since we do not require lead-up steps to be successive.
For a bullish lead-up, the low of the last step must be lower than the minimum closing prices of the user-specified steps for it to be valid, while for a bearish lead-up, the high of the last step must be higher than the maximum closing prices of the user-specified steps for it to be valid.
This effectively allows for eliminating lead-up phases getting completed on opposite trends.
🔶 SETTINGS
🔹 Preparation Phase
Preparation Phase Length: Length of the "Preparation" phase.
Comparison Period: Offset used to compare current prices to past ones.
Preparation Type: Type of preparation to evaluate, options include "Standard" or "Refined"
Refined Preparations Steps: Steps to evaluate when preparation type is "Refined"
🔹 Lead-Up Phase
Lead-Up Phase Length: Length of the "Lead-Up" phase.
Comparison Period: Offset used to compare current prices to past ones.
Suspension: Applies suspension rule to evaluate lead-up completion.
Suspension Steps: Specifies the steps evaluated to determine if the lead-up referral is respected. Multiple steps are supported and should be comma-separated.
Apply Cancellation: Cancellation will remove any incomplete lead-up upon the completion of a new preparation phase of the opposite sentiment.
🔹 Levels
Bullish Preparations Levels: When enabled display price levels from completed bullish preparations.
Show Last: Number of most recent bullish preparations levels to display.
Bearish Preparations Levels: When enabled display price levels from completed bearish preparations.
Show Last: Number of most recent bearish preparations levels to display.
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 .
Periodic Activity Tracker [LuxAlgo]The Periodic Activity Tracker tool periodically tracks the cumulative buy and sell volume in a user-defined period and draws the corresponding matching bars and volume delta for each period.
Users can select a predefined aggregation period from the following options: Hourly, Daily, Weekly, and Monthly.
🔶 USAGE
This tool provides a simple and clear way of analyzing volumes for each aggregated period and is made up of the following elements:
Buy and sell volumes by period as red and green lines with color gradient area
Delta (difference) between buy & sell volume for each period
Buy & sell volume bars for each period
Separator between lines and bars, and period tags below each pair of bars for ease of reading
On the chart above we can see all the elements displayed, the volume level on the lines perfectly matches the volume level on the bars for each period.
In this case, the tool has the default settings so the anchor period is set to Daily and we can see how the period tag (each day of the week) is displayed below each pair of bars.
Users can disable the delta display and adjust the bar size.
🔹 Reading The Tool
In trading, assessing the strength of the bulls (buyers) and bears (sellers) is key to understanding the current trading environment. Which side, if any, has the upper hand? To answer this question, some traders look at volume in relation to price.
This tool provides you with a view of buy volume versus sell volume, allowing you to compare both sides of the market.
As with any volume tool, the key is to understand when the forces of the two groups are balanced or unbalanced.
As we can observe on the chart:
NOV '23: Buy volume greater than sell volume, both moving up close together, flat delta. We can see that the price is in range.
DEC '23: Buy volume bigger than Sell volume, both moving up but with a bigger difference, bigger delta than last month but still flat. We can see the price in the range above last month's range.
JAN '24: Buy and sell volume tied together, no delta whatsoever. We can see the price in range but testing above and below last month's range.
FEB '24: Buy volume explodes higher and sell volume cannot keep up, big growing delta. Price explodes higher above last month's range.
Traders need to understand that there is always an equal number of buyers and sellers in a liquid market, the quality here is how aggressive or passive they are. Who is 'attacking' and who is 'defending', who is using market orders to move prices, and who is using limit orders waiting to be filled?
This tool gives you the following information:
Lines: if the top line is green, the buyers are attacking, if it is red, the sellers are attacking.
Delta: represents the difference in their strength, if it is above 0 the buyers are stronger, if it is below 0 the sellers are stronger.
Bars: help you to see the difference in strength between buyers and sellers for each period at a glance.
🔹 Anchor Period
By default, the tool is set to Hourly. However, users can select from a number of predefined time periods.
Depending on the user's selection, the bars are displayed as follows:
Hourly : hours of the current day
Daily : days of the current week
Weekly : weeks of the current month
Monthly : months of the current year
On the chart above we can see the four periods displayed, starting at the top left and moving clockwise we have hourly, daily, weekly, and monthly.
🔶 DETAILS
🔹 Chart TimeFrame
The chart timeframe has a direct impact on the visualization of the tool, and the user should select a chart timeframe that is compatible with the Anchor period in the tool's settings panel.
For the chart timeframe to be compatible it must be less than the Anchor period parameter. If the user selects an incompatible chart timeframe, a warning message will be displayed.
As a rule of thumb, the smaller the chart timeframe, the more data the tool will collect, returning indications for longer-term price variations.
These are the recommended chart timeframes for each period:
Hourly : 5m charts or lower
Daily : 1H charts or lower
Weekly : 4H charts or lower
Monthly : 1D charts or lower
🔹 Warnings
This chart shows both types of warnings the user may receive
At the top, we can see the warning that is given when the 'Bar Width' parameter exceeds the allowed value.
At the bottom is the incompatible chart timeframe warning, which prompts the user to select a smaller chart timeframe or a larger "Anchor Period" parameter.
🔶 SETTINGS
🔹 Data Gathering
Anchor period: Time period representing each bar: hours of the day, days of the week, weeks of the month, and months of the year. The timeframe of the chart must be less than this parameter, otherwise a warning will be displayed.
🔹 Style
Bars width: Size of each bar, there is a maximum limit so a warning will be displayed if it is reached.
Volume color
Delta: Enable/Disable Delta Area Display
Market Structure (Intrabar) [LuxAlgo]The Market Structure (Intrabar) indicator is designed to automatically detect and highlight real-time intrabar market structures, a core component of the Smart Money Concepts methodology.
🔶 USAGE
The proposed indicator gives a detailed picture of the most recent candle lower timeframe trends, highlighting market structures within them.
This can be particularly useful to assess the price dynamic within the most recent candle. For example, we can see how pronounced a trend is by the number of opposite bullish/bearish market structures formed within the candle.
Users can select the intrabar timeframe of interest from the "Intrabar Timeframe" setting, using a timeframe significantly lower than the chart timeframe will return more intrabar candles and potentially more market structures.
🔹 Dashboard
Users have access to a dashboard returning useful statistics such as the number of formed CHoCH's and BOS's from the intrabar prices. These can be indicative of how predominant a trend is within the intrabar data or if there exist multiple trends.
🔶 DETAILS
Market structures allow determining trend continuations as well as trend reversals in the market through two distinct structures:
🔹 Change of Character (CHoCH)
A change of character (CHoCH) refers to a shift in the market behavior of a security that is driven by changes in the underlying supply and demand dynamics. CHoCH's are indicative of confirmed reversals.
🔹 Break of Structure (BoS)
The break of structure (BoS) refers to the point at which a key level of support or resistance is broken. BOS's are indicative of confirmed trend continuations.
🔶 SETTINGS
🔹Inside the Bar Market Structure
Intrabar Timeframe: Lower timeframe setting option, if set to 'Auto' the script will determine the lower timeframe based on the chart timeframe.
Intrabar Market Structure, Length: Toggles the visibility of the break of structures and change of characters. Length defines the detection length of the swing levels.
Intrabar Swing Levels: Toggles the visibility of the swing levels, including a color customization option for highs and lows.
Intrabar Statistics: Toggles the visibility of the dashboard. Some further statistical details are presented in the tooltips of the table cells
🔹 General
Market Structure Colors: Color customization option for the break of structure and change of character lines and labels.
Intrabar Candle Colors: Color customization option for intrabar candles.
Intrabar Candles Horizontal Offset: Adjusting the intrabar candles horizontal position
Dashboard: Dashboard position and size customization option
🔶 LIMITATIONS
Please note that seconds-based intervals are available for premium and professional plan holders, which implies that the seconds-based intervals usage of the indicator may not be available for all users depending on their subscription plan.
🔶 RELATED SCRIPTS
Smart-Money-Concepts
ICT-Concepts
Delta ZigZag [LuxAlgo]The Delta ZigZag indicator is focused on volume analysis during the development of ZigZag lines. Volume data can be retrieved from a Lower timeframe (LTF) or real-time Tick data.
Our Delta ZigZag publication can be helpful in detecting indications of a trend reversal or potential weakening/strengthening of the trend.
This indicator by its very nature backpaints, meaning that the displayed components are offset in the past.
🔶 USAGE
The ZigZag line is formed by connecting Swings , which can be set by adjusting the Left and Right settings.
Left is the number of bars for evaluation at the left of the evaluated point.
Right is the number of bars for evaluation at the right of the evaluated point.
A valid Swing is a value higher or lower than the bars at the left/right .
A higher Left or Right set number will generally create broader ZigZag ( ZZ ) lines, while the drawing of the ZZ line will be delayed (especially when Right is set higher). On the other hand, when Right is set at 0, ZZ line are drawn quickly. However, this results in a hyperactive switching of the ZZ direction.
To ensure maximum visibility of values, we recommend using " Bars " from the " Bar's style " menu.
🔹 Volume examination
The script provides two options for Volume examination :
Examination per ZigZag line
Examination per bar
Bullish Volume is volume associated with a green bar ( close > open )
Bearish Volume is volume associated with a red bar ( close < open )
Neutral Volume (volume on a " close == open" bar) is not included in this publication.
🔹 Examination per ZigZag line
As long as the price moves in the same direction, the present ZZ line will continue. When the direction of the price changes, the bull/bear volume of the previous ZZ line is evaluated and drawn on the chart.
The ZZ line is divided into two parts: a bullish green line and a bearish red line.
The intercept of these two lines will depend on the ratio of bullish/bearish volume
This ratio is displayed at the intercept as % bullish volume (Settings -> Show % Bullish Volume)
* Note that we cannot draw between 2 bars. Therefore, if a ZZ line is only 1 bar long, the intercept will be at one of those 2 bars and not in between. The percentage can be helpful in interpreting bull/bear volume.
In the example above (2 most right labels), you can see that an overlap of 2 labels is prevented, ensuring the ability to evaluate the bullish % volume of the ZZ line .
The percentage will be colored green when more than 50%, red otherwise. The color will fade when the direction is contradictory; for example, 40% when the ZZ line goes up or 70% when the ZZ line falls.
More details can be visualized by enabling " Show " and choosing 1 of 3 options:
Average Volume Delta/bar
Average Volume/bar
Normalised Volume Delta
For both 'averages', the sum of " Volume "/" Volume Delta " of every bar on the ZZ line is divided by the number of bars (per ZZ line ).
The " Normalised Volume Delta " is calculated by dividing the sum of " Delta Volume " by the sum of " Volume " (neutral volume not included), which is displayed as a percentage.
All three options will display a label at the last point of the ZZ line and be coloured similarly: green when the ratio bullish/bearish volume of the ZZ line is bullish and red otherwise. Here, the colour also fades when it is bullish, but the ZZ line falls or when it is bearish with a rising ZZ line .
A tooltip at each label hints at the chosen option.
You can pick one of the options or combine them together.
🔹 Examination per bar
Besides information about what's happening during the ZZ line , information per bar can be visualized by enabling " Show Details " in Settings .
Split Volume per bar : show the sum of bullish (upV) and bearish (dnV) volume per bar
Volume (bar) : Total Volume per bar (bullish + bearish volume, neutral volume not included)
Δ Volume (bar) : Show Delta Volume (bullish - bearish volume)
🔹 Using Lower Timeframe Data
The ZigZag lines using LTF data are colored brighter. Also note the vertical line where the LTF data starts and the gap between ZZ lines with LTF data and without.
When " LTF " is chosen for the " Data from: " option in Settings , data is retrieved from Lower Timeframe bars (default 1 minute). When the LTF setting is higher than the current chart timeframe, the LTF period will automatically be adjusted to the current timeframe to prevent errors.
As there is a 100K limit to the number of LTF intrabars that can be analyzed by a script, this implies the higher the difference between LTF and current TF; the fewer ZZ lines will be seen.
🔹 Using real-time tick data
The principles are mostly the same as those of LTF data. However, in contrast with LTF data, where you already have LTF ZZ lines when loading the script, real-time tick data-based ZZ lines will only start after loading the chart.
Changing the settings of a ticker will reset everything. However, returning to the same settings/ticker would show the cached data again.
Here, you can see that changing settings reset everything, but returning after 2 minutes to the initial settings shows the cached data. Don't expect it to be cached for hours or days, though.
🔶 DETAILS
The timeframe used for LTF data should always be the same or lower than the current TF; otherwise, an error occurs. This snippet prevents the error and adjusts the LTF to the current TF when LTF is too high:
res = input.timeframe('1')
res := timeframe.from_seconds( math.min( timeframe.in_seconds(timeframe.period), timeframe.in_seconds(res) ) )
🔶 SETTINGS
Data from: LTF (Lower TimeFrame) or Ticks (Real-time ticks)
Res: Lower TimeFrame (only applicable when choosing LTF )
Option: choose " high/low " or " close " for Swing detection
🔹 ZigZag
Left: Lookback period for Swings
Right: Confirmation period after potential Swing
🔹 ZigZag Delta
Show % Bullish Volume : % bullish volume against total volume during the ZZ line
Show:
Average Volume Delta/bar
Average Volume/bar
Normalised Volume Delta
See USAGE for more information
🔹 Bar Data
Split Volume per bar: shows the sum of bullish ( upV ) and bearish ( dnV ) volume per bar
Volume (bar): Total Volume per bar (bullish + bearish volume, neutral volume not included)
Δ Volume (bar): Show Volume Delta (bullish - bearish volume)
Historical Correlation [LuxAlgo]The Historical Correlation tool aims to provide the historical correlation coefficients of up to 10 pairs of user-defined tickers starting from a user-defined point in time.
Users can choose to display the historical values as lines or the most recent correlation values as a heat map.
🔶 USAGE
This tool provides historical correlation coefficients, the correlation coefficient between two assets highlight their linear relationship and is always within the range (-1, 1).
It is a simple and easy to use statistical tool, with the following interpretation:
Positive correlation (values close to +1.0): the two assets move in sync, they rise and fall at the same time.
Negative correlation (values close to -1.0): the two assets move in opposite directions: when one goes up, the other goes down and vice versa.
No correlation (values close to 0): the two assets move independently.
The user must confirm the selection of the anchor point in order for the tool to be executed; this can be done directly on the chart by clicking on any bar, or via the date field in the settings panel.
For the parameter Anchor period , the user can choose between the following values NONE, HOURLY, DAILY, WEEKLY, MONTHLY, QUARTERLY and YEARLY. If NONE is selected, there will be no resetting of the calculations, otherwise the calculations will start from the first bar of the new period.
There is a wide range of trading strategies that make use of correlation coefficients between assets, some examples are:
Pair Trading: Traders may wish to take advantage of divergences in the price movements of highly positively correlated assets; even highly positively correlated assets do not always move in the same direction; when assets with a correlation close to +1.0 diverge in their behavior, traders may see this as an opportunity to buy one and sell the other in the expectation that the assets will return to the likely same price behavior.
Sector rotation: Traders may want to favor some sectors that are expected to perform in the next cycle, tracking the correlation between different sectors and between the sector and the overall market.
Diversification: Traders can aim to have a diversified portfolio of uncorrelated assets. From a risk management perspective, it is useful to know the correlation between the assets in your portfolio, if you hold equal positions in positively correlated assets, your risk is tilted in the same direction, so if the assets move against you, your risk is doubled. You can avoid this increased risk by choosing uncorrelated assets so that they move independently.
Hedging: Traders may want to hedge positions with correlated assets, from a hedging perspective, if you are long an asset, you can hedge going long a negative correlated asset or going short a positive correlated asset.
Traders generally need to develop awareness, a key point is to be aware of the relationships between the assets we hold or trade, the historical correlation is an invaluable tool in our arsenal which allows us to make better informed decisions.
On this chart we have an example of historical correlations for several futures markets.
We can clearly see how positively correlated the Nasdaq100 and Dow30 are with the SP500 over the whole period, or how the correlation between the Euro and the SP500 falls from almost +85% to almost -4% since 2021.
As we can see, correlations, like everything else in the market, are not static and vary over time depending on many factors, from macro to technical and everything in between.
🔹 Heatmap
The chart above shows the tool with the default settings and the Drawing Mode set to 'HEATMAP'.
We can see the current correlation between the assets, in this case the FX pairs.
The highest positive correlation is +90% (+0.90) between EURUSD and GBPUSD.
The highest negative correlation is -78% (-0.78) between EURUSD and USDJPY.
The pair with no correlation is AUDUSD and EURCAD with 1% (0.01)
On the above chart we can see the current correlations for the futures markets.
Currently, the assets that are less correlated to the SP500 are NaturalGas and the Euro, the more positive correlations are Nasdaq100 and Dow20, and the more negative correlations are the Yen, Treasury Bonds and 10-Year Notes.
🔶 DETAILS
🔹 Anchor Period
This chart shows the standard FX correlations with the Anchor Period set to `MONTHLY`.
We can clearly see how the calculations restart with the new month, in this case we can clearly see the differences between the correlations from month to month.
Let us look at the correlation coefficient between GBPUSD and USDJPY
In January, their correlation started at close to -100%, rose to close to +50%, only to fall to close to 0% and remain there for the second half of the month.
In February it was -90% in the first few days of the month and is now around -57%.
And between AUDUSD and EURCAD
Last month their correlation was negative for most of the month, reaching -70% and ending around -14%.
This month their correlation has never gone below +21% and at the time of writing is close to +53%.
🔶 SETTINGS
Anchor point: Starting point from which the tool is executed
Anchor period: At the beginning of each new period, the tool will reset the calculations
Pairs from 1 to 10: For each pair of tickers, you can: enable/disable the pair, select the color and specify the two tickers from which you wish to obtain the correlation
🔹 Style
Drawing Mode: Output style, `LINES` will show the historical correlations as lines, `HEATMAP` will show the current correlations with a color gradient from green for correlations near 1 to red for correlations near -1.
All Time High (ATH) Levels [LuxAlgo]The All Time High (ATH) Levels indicator displays a user-set amount of historical all-time high levels made on the user's chart, highlighting potential key price levels.
Displayed levels can be filtered out based on their duration, as well as their relative distance from each other.
The script also evaluates the role a level might have as a support or resistance using a percentage, classifying ATH levels as either support or resistance depending on the result.
🔶 USAGE
On certain assets market participants give a high level of attention to all-time highs made by an asset, with the most pertinent example being Bitcoin.
Previous all-time highs can play important roles as psychological price levels, with the most recent ones often offering major resistance points, and older ones being used as support.
Users can filter out temporary ATHs using the ATH Minimum Duration setting, removing any ATH that lasts less than the user-specified number of bars. Higher values of this setting effectively preserve ATHs that become distinguishable peaks. These can offer more significant support/resistance levels.
When displaying each historical level some of them can be very close to each other. Users can use the "Minimum Distance Between ATH" setting to filter out levels too close to each other, with higher values of this setting returning more spaced levels. Distances are first evaluated from the most recent ATH. Note that this setting can cause repainting.
🔹 SR Classification
The script evaluates the ability of an ATH level to act as a support or resistance since its occurrence, and measures its strength as a percentage, with higher percentage values suggesting a stronger support or resistance.
Levels classified with "R" suggest that the price was located below the level most of the time, indicative of a resistance, while a level classified with "S" suggests that the price was located above the level most of the time, indicative of a support.
Percentages between 99% to 50% are often indicative of supports/resistances being tested, while values below 50% reflect more centered levels. A value of 100% suggests that an ATH level was not tested enough. users can filter out any level with a percentage below the "Minimum %" setting.
🔶 SETTINGS
Show Last ATH: Specify the amount of most recent ATH's to display.
ATH Minimum Duration: Minimum duration (in bars) of an ATH, that is the minimum number of bars that must elapse before another ATH can be made.
Minimum Distance Between ATH: Minimum distance between displayed ATH levels, starting from the most recent ATH. This distance is a multiple of the average true range.
🔹 SR Classification
Show SR%: Show percentage as well as ATH level classification.
Minimum %: Minimum percentage values required to display an ATH level.
Historical Price Projection [LuxAlgo]The Historical Price Projection tool aims to project future price behavior based on historical price behavior plus a user defined growth factor.
The main feature of this tool is to plot a future price forecast with a surrounding area that exactly matches the price behavior of the selected period, with or without added drift.
Other features of the tool include:
User-selected period up to 500 bars anywhere on the chart within 5000 bars
User selected growth factor from 0 (no growth) to 100, this is the percentage of drift to be used in the forecast.
User selected area wide
Show/hide forecast area
🔶 USAGE
This tool generates a price projection with exactly the same price behavior over the period selected by the user, plus a growth factor .
The user must confirm the selection of the anchor point in order for the tool to be executed; this can be done directly on the chart by clicking on any bar, or via the date field in the settings panel.
As we can see on this chart, the four phases of the market cycle are clearly defined and marked, so we choose the distribution phase as our anchor point because in our analysis, we want to see how the market would behave if we were currently at the same point in the cycle.
In the image above, the growth factor parameter is set to 0 so that the projection matches the selection. The tool will use up to 500 bars after the selection point.
The growth factor is defined as the percentage of drift that the tool will use.
Drift is defined as follows:
For periods with a positive return: average negative return within the period
For negative return periods: average positive return within the period
On the chart above, we have selected the same period but added a growth factor of 10, so that the tool uses a 10% drift in its calculations of future prices.
As the return in the selected period is negative, the added drift will make the projection more bearish than the prices from the selection.
On this chart we have changed the selected period, we have chosen the accumulation phase of the last cycle as the anchor point, again with a growth factor of 10%.
As we can see, prices explode higher, making the projection very bullish, as the added effect of both the bullish selected period and the 10% drift is taken into account.
This last chart is a long-term chart, a quarterly chart of the Dow, and it will serve as a review exercise.
What if... everything goes south and the crash of '29 is repeated?
The answer is in the chart, and it is not for the faint of heart
In this case we have chosen a growth factor of 0 to see exactly the same price behaviour projected into the future.
🔶 SETTINGS
🔹 Data Gathering
Anchor point: Starting point for data collection, up to 500 bars will be used.
🔹 Data Transformation
Growth Factor: Values from 0 to 100, is the amount of drift used to calculate the next price in the series.
Area Width: Values from 0 to 100, controls the width of the area around the forecast as an increment/decrement of the growth factor.
🔹 Style
Price line width: Size of the price line.
Bullish color
Bearish color
Show Area: Show forecast area.
Area color
Fair Value Gaps Mitigation Oscillator [LuxAlgo]The Fair Value Gaps Mitigation Oscillator is an oscillator based on the traditional Fair Value Gaps (FVGs) imbalances. The oscillator displays the current total un-mitigated values for the number of FVGs chosen by the user.
The indicator also displays each New FVG as a bar representing the current ratio of the New FVG in relation to the current un-mitigated total for its direction.
🔶 USAGE
When an FVG forms, it is often interpreted as strong market sentiment in the direction of the gap. For example, an upward FVG during an uptrend is typically seen as a confirmation of the strength and continuation of the trend, as it indicates that buyers are willing to purchase at higher prices without much resistance, suggesting strong demand and positive sentiment.
By analyzing the mitigation (or lack thereof), we can visualize the increase of directional strength in a trend. This is where the proposed oscillator is useful.
🔶 DETAILS
The oscillator's values are expressed as Percentages (%). Each FVG is allocated 100% of the total of its width with a max potential value of 100 and minimum potential value of 0.
Based on the "FVG Lookback" Input, the FVGs are scaled to fit within the range of +1 to -1. Using a higher "FVG Lookback" value will allow you to get indications of longer-term trends.
A higher value of the normalized bullish FVG areas suggest a stronger and cleaner uptrend, while lower values of the bearish the normalized bullish FVG areas suggest a stronger and cleaner downtrend.
+1 or -1 indicates that there is a Full Lookback of FVGs, and each one is fully un-mitigated, and the opposite direction of FVGs is entirely Mitigated.
When the price closes over/under or within an FVG it begins to get mitigated, when this happens the % of mitigation is subtracted from the total.
When a New FVG is formed, a Histogram bar is created representing the ratio of the current FVG's width to the total width off all un-mitigated FVGs.
The entire bar represents 100% of total un-mitigated FVG Width.
The filled area represents the current FVG's width relative to the whole.
A 50% hash mark is also displayed for reference.
🔶 SETTINGS
FVG Lookback - Determines the number of FVGs (Bullish and Bearish Pairs) to keep in memory for analysis.
ICT Killzones Toolkit [LuxAlgo]The ICT Killzones Toolkit is a comprehensive set of tools designed to assist traders in identifying key trading zones and patterns within the market.
The ICT Killzones Toolkit includes the following Price Action components:
ICT Killzones with Pivot Highs/Lows
Order Blocks
Breaker Blocks
Fair Value Gaps
Market Structure Shifts
By combining these components, the ICT Killzones Toolkit provides traders with a comprehensive framework for analyzing the market and identifying setups of interest. Leveraging these tools effectively can enhance traders' decision-making process and improve killzones interpretability.
🔶 USAGE
In forex/futures trading, timing is crucial. ICT Killzone are specific periods when there's a higher chance of finding setups of interest. Mastering these time intervals can offer significant advantages to traders who know how to use them effectively.
The image above highlights a potential setup of interest when using the ICT Killzones Toolkit.
As another example for utilizing the ICT Killzones Toolkit, we can see in the image above when price retests setups generated from killzones such as Order Blocks or Fair Value Gaps, a potential strategy could be to look for entries on those & take profits as the next killzone appears.
🔹 Order Blocks
Order Blocks are sections on a price chart where notable buying or selling activity has occured, often signaling interest zones for institutional traders. This toolkit's Order Blocks component pinpoints these areas within the Killzone, which may act as potential support or resistance levels.
🔹 Breaker Blocks
Breaker Blocks are zones built from mitigated order blocks, and highlight zones on the chart where price has previously stalled or reversed. These areas may act as significant barriers to price movement in the future, and the Breaker Blocks component helps traders identify them for potential trading opportunities.
🔹 Fair Value Gaps
Fair value gaps are especially favored by price action traders and arise from market inefficiencies or imbalances, typically when buying and selling are unequal. These gaps often attract price movement before resuming in the same direction. the Fair Value Gaps component of the toolkit helps traders identify and analyze them.
🔹 Market Structure Shifts
Market Structure Shifts refer to significant changes in the overall structure of the market, such as shifts in trend direction, volatility, or trading activity. These shifts can provide valuable insights into market sentiment and potential trading opportunities, and the Market Structure Shifts component helps traders identify and interpret them.
Overall, the ICT Killzone Toolkit combines these components to provide traders with a comprehensive framework for analyzing the markets and identifying high-probability trading setups.
🔶 SETTINGS
🔹 ICT Killzones
Asian, London Open, New York, and London Close: toggles the visibility of specific Killzones, allowing users to customize time periods and Killzone colors.
Killzone Lines : Top/Bottom, Mean and Extend Top/Bottom: toggles the visibility of the Killzone's pivot high and low lines, mean (average) line, and allows users to extend the pivot lines.
Killzone Labels: Toggles the visibility of the Killzone labels.
Display Killzones within Timeframes Up To: Toggles the visibility of the Killzones up to selected Timeframes.
Open Price, Separator, Label, and Color: toggles the visibility of the open price of the Killzones or for the day, week, or month. If the day, week, or month is selected, a separator will be displayed to highlight the beginning of each respective period. Additionally, users can customize the color and toggle the label as needed.
🔹 Order Blocks & Breaker Blocks
Order Blocks | Breaker Blocks: toggles the visibility of the order blocks & breaker blocks.
Swing Detection Length: lookback period used for the detection of the swing points used to create order blocks & breaker blocks.
Mitigation Price: allows users to select between closing price or wick of the candle.
Use Candle Body in Detection: allows users to use candle bodies as order block areas instead of the full candle range.
Remove Mitigated Order Blocks & Breaker Blocks: toggles the visibility of the mitigated order blocks & breaker blocks.
Extend Order Blocks & Breaker Blocks: enables processing of the order blocks & breaker blocks beyond the boundaries of the killzones.
Display Order Blocks & Breaker Blocks: enables the display of the first, last, or all occurrences of the order blocks & breaker blocks.
Order Blocks : Bullish, Bearish Color: color customization option for order blocks.
Breaker Blocks : Bullish, Bearish Color: color customization option for breaker blocks.
Show Order Blocks & Breaker Blocks Text: toggles the visibility of the order blocks & breaker blocks labels.
🔹 Market Structure Shifts
Market Structure Shifts: toggles the visibility of the market structure shifts.
Detection Length: market structure shift detection length.
Display Market Structure Shifts: enables the display of the first, last, or all occurrences of the market structure shifts.
Market Structure Shifts : Bullish, Bearish Color: color custumization option for market structure shifts.
Show Market Structure Shifts Text: toggles the visibility of the market structure shifts labels.
🔹 Fair Value Gaps
Fair Value Gaps: toggles the visibility of the fair value gaps.
Fair Value Gap Width Filter: filtering threshold wile detecting fair value gaps.
Remove Mitigated Fair Value Gaps: removes mitigated fair value gaps.
Extend Fair Value Gaps: enables processing of the fair value gaps beyond the boundaries of the killzones.
Display Fair Value Gaps: enables the display of the first, last, or all occurrences of the fair value gaps.
Bullish Imbalance Color: color customization option.
Bearish Imbalance Color: color customization option.
Show Fair Value Gaps Text: toggles the visibility of the fair value gaps labels.
🔶 RELATED SCRIPTS
Smart-Money-Concepts
Order-Blocks-Breaker-Blocks
Thanks to our community for recommending this script. For more conceptual scripts and related content, we welcome you to explore by visiting >>> LuxAlgo-Scripts .
Market Structure with Inducements & Sweeps [LuxAlgo]The Market Structure with Inducements & Sweeps indicator is a unique take on Smart Money Concepts related market structure labels that aims to give traders a more precise interpretation considering various factors.
Compared to traditional market structure scripts that include Change of Character (CHoCH) & Break of Structures (BOS) -- this script also includes the detection of Inducements (IDM) & Sweeps which are major components of determining other structures labeled on the chart.
SMC & price action traders have historically considered this a more accurate representation of market structure by including these components.
🔶 USAGE
Below we can see a diagram for how market structure is displayed within the Market Structure with Inducements & Liquidity indicator.
Change of Characters (CHoCH) are based on swing points detection, while Break of Structures (BOS) are based on trailing maximum & minimums from the detected Change of Characters. We do this for a more dynamic & timely display of market structure.
🔹 Inducements (IDM)
Traders that consider inducements as a part of their analysis of Change of Characters & Break of Structures can more easily avoid fakeouts within trends as shown below.
In this script IDM's are always required between each market structures.
🔹 Sweeps of Liquidity (x)
SMC traders looking to properly analyze market structure need to look for sweeps of liquidity to ensure levels that are wicked are noted as sweeps, while levels that are fully closed above / below are labeled as confirmed market structures.
In the chart below we can see a Sweep of Liquidity which typically can occur on the longer term price action and indicate a potential reversal.
Notably, since labels such as CHoCH or BOS's can occur at the same level as a Sweep of liquidity, we have allowed the indicator to display the market structure label at the current bar in the event this happens.
The Sweeps of Liquidity are also based on trailing maximum / minimum, which allows for a continuous evaluation of areas for liquidity sweeps to occur.
This can be helpful for traders looking for longer term & shorter term sweeps.
🔶 SETTINGS
CHoCH Detection Period: Detection period for CHoCH's, higher values will return longer term CHoCH's.
IDM Detection Period: Detection period for IDM's, higher values will return longer term IDM's.
Thank you all for 500k followers on TradingView! Enjoy!
Daily Chess Puzzles [LuxAlgo]Play Chess Puzzles right on your Chart!
Daily Chess Puzzles brings you a new 1-Move chess puzzle straight to your chart every day.
🔶 USAGE
Submit your answer to see if your solution is correct! For quick access to the settings, Double-Click on the Chess board to open the settings interface.
The current active color (Who's move it is) is represented by the color of the information bar, and the corner board squares.
This game uses long algebraic notation without pieces names for submitting moves.
This method for determining moves is perfect for simplicity and clarity, and is standard for the Universal Chess Interface (UCI).
🔹 How to Notate
Long algebraic notation (without pieces name) is simple to understand. This notation does not use capture symbols or check/checkmate symbols; it uses only the squares involved in the move and any promotion occurring.
{Starting Square}{Ending Square}{Promotion Piece(if needed)}
Locate the starting square and the ending square of the piece being moved, without mentioning the piece itself.
Identify the column letters (a-h) and row numbers (1-8) that align with your desired move.
If a pawn reaches the opposite end of the board the pawn gets promoted, add the letter representing the piece it is promoted to at the end of the move.
Put it all together and you've got your notation!
Piece Notations for Pawn Promotions:
'n' for Knight ('k' is reserved for the King in chess notation)
'b' for Bishop
'r' for Rook
'q' for Queen
Normal Move Example: Moving a piece from e2 to e4 is notated as "e2e4".
Pawn Promotion Example: Promoting a pawn to a queen is notated as "e7e8q".
🔶 DETAILS
Miss a day? Yesterday's puzzle can be re-played, check the box for 'View Yesterday's Puzzle' in the settings.
This indicator makes use of Tooltips! . Hover over a square to see that square's notation.
This script makes use of 5 libraries, each storing 2 years worth of daily chess puzzles amounting to 10 years of unique daily chess puzzles.
"timenow" is used to determine which day it is, so even on a closed ticker or weekend or holiday a new chess puzzle will be displayed.
Users have the option to choose from 5 different board themes.
MACD Based Price Forecasting [LuxAlgo]The MACD Based Price Forecasting tool is an innovative price forecasting method based on signals generated by the MACD indicator.
The forecast includes an area which can help traders determine the area where price can develop after a MACD signal.
🔶 USAGE
The forecast returned by the tool allows users to obtain a general picture of how price tends to progress after a specific MACD signal. The forecast is constructed based on percentiles of previous price progressions done after a specific MACD signal is generated.
Users can change which condition is used to generate MACD signals from the "Trend Determination" dropdown menu, with "MACD" determining trends based on whether the MACD is positive (uptrend) or negative (downtrend) and "MACD-Signal" determining trends based on the position of the MACD relative to its signal line, with an MACD above the signal line indicating an uptrend, else a downtrend.
Users can introduce bias to the forecast by changing the "Average Percentage" setting, with values above 50% introducing bullish bias, and below bearish bias.
It can be possible for the forecast to highlight potential reversals depending on the selected forecasting horizon as long as reversals can be observed on trends detected by the MACD.
🔹 Forecasting Area
The forecasting area can help visualize the area that will likely contain price after a specific signal. The area width is based on the "Top/Bottom Percentiles" settings, with a higher "Top Percentile" value returning a higher top bound and a lower "Bottom Percentile" value returning a lower bottom bound.
These areas can also serve as potential support/resistance areas.
🔶 SETTINGS
Fast Length: Fast length of the moving average used to compute the MACD
Slow Length: Slow length of the moving average used to compute the MACD
Signal Length: Length of the MACD moving average.
Trend Determination: Method used to determine a trend direction from the MACD.
🔹 Forecast
Maximum Memory: Determines the maximum amount of prices recorded at each steps succeeding a signal. Lower values will return forecasts with a higher degree of variability.
Forecasting Length: Forecasting horizon in bars, this value only serves as a limit of the forecasting horizon and might not be reached depending on user selected MACD settings.
Top Percentile: Percentile value used to determine the upper bound of the forecasting area.
Average Percentile: Percentile value used to determine the forecast.
Lower Percentile: Percentile value used to determine the lower bound of the forecasting area.
Stablecoin Dominance [LuxAlgo]The Stablecoin Dominance tool displays the evolution of the relative supply dominance of major stablecoins such as USDT, USDC, BUSD, DAI, and TUSD.
Users can disable supported stablecoins to only show the supply dominance relative to the ones enabled.
🔶 USAGE
The stablecoin space is subject to constant change due to new arriving stablecoins, regulation, collapse of coins...etc.
Studying the evolution in supply dominance can help see the effect that certain events can have on the stablecoin sphere.
This dominance graph is displayed over the user price chart to easily observe the correlation between stablecoin dominances and market prices. Users can still move the tool to a new pane below if having it on the price chart is not desired.
🔶 DETAILS
Supported stablecoins include:
Tether (USDT)
USD Coin (USDC)
Binance USD (BUSD)
Dai (DAI)
TrueUSD (TUSD)
Supply dominance of a stablecoin is calculated by dividing the total supply of that stablecoin by the total supply of all enabled stablecoins. That is for N stablecoins:
sd(stablecoin A) = supply(stablecoin 1) / [supply(stablecoin 1) + supply(stablecoin 2) + supply(stablecoin 3) + ... + supply(stablecoin N)
🔹 Display
Users can control the fill style of the displayed areas, with "Gradient" enabled by default. Using "Solid" will use a solid color for each area:
This can improve the performance of the script.
Selecting "None" will not display areas.
🔶 SETTINGS
Fill Style: Fill style of the areas between each returned supply dominance. "Gradient" will color the areas using a gradient, while "Solid" will use a solid color.
Stablecoins List: List of stablecoins used for the supply dominance calculation, disabling one stablecoin will exclude it from all calculations.
