Whale Buy Activity Detector (Real-Time)Whale Buy Activity Detector (Real-Time)
This indicator helps to identify abnormal spikes in the volume of purchases, which may indicate the activity of large players ("whales"). It analyzes the volume of purchases and compares it with the average volume over a certain period of time. If the volume of purchases exceeds a set threshold, the indicator marks this as potential whale activity.
Basic parameters:
Volume Threshold (x Average): The coefficient by which the current purchase volume must exceed the average volume in order to be considered abnormal. The default value is 2.0, which means that the purchase volume should be 2 times the average volume for the selected time period. This parameter can be adjusted in the range from 1.0 and higher in increments of 0.1.
Example: If you set the value to 1.5, the indicator will mark situations when the volume of purchases exceeds the average volume by 1.5 times.
Lookback Period: The time period used to calculate the average purchase volume. The default value is 20, which means that the average purchase volume will be calculated for the last 20 candles. This parameter can be set in the range from 1 and above.Example: If you set the value to 10, the average purchase volume will be calculated for the last 10 candles.
How to use:
Buy Volume: Shows the volume of purchases on each candle. This is the volume that was sold at a price higher than the opening price of the candle.
Average Buy Volume: The average volume of purchases over a given time period (Lookback Period). This parameter helps to determine the "normal" level of purchase volume.
Whale Buy: Notes abnormal spikes in the volume of purchases, which may indicate the activity of "whales". The indicator draws a mark on the top of the candle when the purchase volume exceeds the threshold set by the Volume Threshold parameter.
Notifications:
The indicator can send notifications when an abnormal volume of purchases is detected. You can set up notifications via the TradingView menu to receive real-time alerts.
Usage example:
If you are trading in a highly volatile market, you can increase the Volume Threshold to filter out small volume spikes.
If you trade in a low-volatility market, you can reduce the Volume Threshold to capture even small anomalies.
Analisis Trend
Momentum Candle Identifier # Momentum Candle Identifier
This indicator helps traders identify significant momentum candles by analyzing candle body size relative to recent price action (think after consolidation periods). Unlike traditional volatility indicators, this tool specifically focuses on price movement captured by the candle body (open to close distance), filtering out potentially misleading wicks.
## How It Works
- The indicator calculates the average candle body size over a user-defined lookback period
- Momentum candles are identified when their body size exceeds the average by a customizable threshold multiplier
- Bullish momentum candles (close > open) are highlighted in a user defined color
- Bearish momentum candles (close < open) are highlighted in a user defined color
- A real-time information panel displays key metrics including current average body size and threshold values
## Key Features
- Focus on candle body size rather than full range (high to low)
- Custom lookback period to adapt to different timeframes
- Adjustable threshold multiplier to fine-tune sensitivity
- Customizable colors for bullish and bearish momentum candles
- Optional labels for momentum candles
- Information panel showing lookback settings, average size, and momentum candle count
## Usage Tips
- Use shorter lookback periods (3-5) for more signals in choppy markets
- Use longer lookback periods (8-20) to identify only the most significant momentum moves
- Higher threshold multipliers (2.0+) will identify only the strongest momentum candles
- Combine with trend indicators to find potential reversal or continuation signals
- Look for clusters of momentum candles to identify strong shifts in market sentiment
This indicator helps identify candles that represent significant price movement relative to recent activity, potentially signaling changes in market momentum, sentiment shifts, or the beginning of new trends.
Median Volume Weighted Standard Deviation | QuantumResearchMedian Volume Weighted Standard Deviation (MVWSD) | QuantumResearch
The MVWSD Indicator is a powerful market analysis tool that integrates median-based volume-weighted calculations with standard deviation analysis to help traders identify trend shifts, volatility expansion, and breakout opportunities. This adaptive approach minimizes noise while enhancing the accuracy of support/resistance levels and trade signals. 🚀📊
🔍 Key Features
✅ Volume-Weighted Median Calculation – Uses a VWMA-based median to emphasize price points backed by high trading volume, reducing the impact of erratic price movements.
✅ Standard Deviation & ATR-Based Volatility Bands – Expands or contracts dynamically based on market volatility, providing adaptive support & resistance levels.
✅ Bullish/Bearish Trend Signals – Detects shifts in market momentum by analyzing price movements relative to the deviation bands.
✅ Customizable Visualization & Alerts – Traders can adjust sensitivity, choose color themes, and set alerts for breakout conditions.
✅ Multi-Asset Compatibility – Works across various markets, including Bitcoin, Altcoins, and cross-asset pairs.
📈 How It Works
1️⃣ Volume-Weighted Median Calculation
A VWMA-based median is applied to smooth price fluctuations and highlight dominant trends.
This method improves accuracy over simple moving averages by factoring in trade volume influence.
2️⃣ Adaptive Volatility Bands
Upper & Lower Bands adjust dynamically using standard deviation and ATR multipliers, expanding during high volatility and contracting during stable conditions.
These bands act as dynamic support/resistance levels, helping traders gauge potential trend breakouts or reversals.
3️⃣ Trade Signal Generation
🟢 Long Signal (Bullish): When the price breaks above the upper ATR-based band, signaling potential uptrend continuation.
🔴 Short Signal (Bearish): When the price drops below the lower ATR-based band, indicating possible downside movement.
⚪ Neutral (No Signal): When price fluctuates within the bands without a decisive breakout.
4️⃣ Trend Confirmation via Color-Coded Bars
Green bars = Bullish conditions 📈
Blue bars = Bearish conditions 📉
📊 Performance Across Different Markets
🔹 Solana (SOL/USD) Analysis:
🔹 Sui (SUI/USD) Analysis:
🔹 PancakeSwap (CAKE/USD) Analysis:
🔹 Solana vs. Bitcoin (SOL/BTC) Pair:
🔹 Solana vs. Ethereum (SOL/ETH) Pair:
🔹 Bitcoin (BTC/USD) Analysis:
🎯 Trading Applications
📌 Trend Identification – Helps traders determine whether the market is trending or ranging based on price interactions with the deviation bands.
📌 Volatility Breakouts – Expanding standard deviation bands indicate an increase in market volatility, often preceding large price movements.
📌 Dynamic Support & Resistance – Unlike static levels, these adaptive bands adjust to real-time market conditions, providing more accurate trading zones.
📌 Risk Management & Confluence – Works well when combined with other indicators to confirm trade setups and risk levels.
⚙️ Customization & Settings
🔧 Volume-Weighted Length – Adjust the VWMA period to emphasize short-term or long-term price movements.
🔧 Median Calculation Length – Fine-tune the median smoothing effect for optimal signal clarity.
🔧 ATR & Standard Deviation Multipliers – Modify sensitivity to capture early trend shifts or more confirmed moves.
🔧 Color Themes & Visibility Settings – Personalize the indicator’s appearance to match your preferred trading style.
🚀 Final Thoughts
The MVWSD Indicator provides a unique blend of volume analysis, standard deviation filtering, and trend confirmation, making it a powerful tool for traders.
While it effectively highlights volatility shifts and trend momentum, traders should always use additional confluence factors before making trade decisions.
Alerts & Visual Cues ensure that users receive real-time notifications when key trade signals emerge.
⚠️ Disclaimer: The content is for informational and educational purposes only. Nothing contained within should be considered financial, investment, legal, or other professional advice. Past performance does not guarantee future results. Trading cryptocurrencies involves substantial risk of loss and is not suitable for every investor.
📌 TradingView Alerts: Set alerts to get notified when a new long or short condition is detected.
Simple Gap IndicatorThe Simple Gap Indicator is a powerful tool designed to detect and visualize price gaps in the market, helping traders identify key levels of support and resistance. Whether you're analyzing gap-up or gap-down scenarios, this indicator provides clear visual cues to enhance your trading decisions.
Key Features:
Gap Detection: Automatically identifies gap-up and gap-down events based on user-defined sensitivity.
Customizable Display Styles: Choose between lines or boxes to represent gaps visually, depending on your preference.
Extend Options: Control how far the lines or boxes extend on the chart (None, Right, Left, Both).
User-Friendly Inputs: Adjust the number of bars to examine and sensitivity to gap size for precise customization.
Dynamic Visualization:
Gap-Up Events: Highlighted in green for easy identification of bullish gaps.
Gap-Down Events: Highlighted in red for bearish gaps.
Liquidity Location Detector [BigBeluga]
This indicator helps traders identify potential liquidity zones by detecting significant volume levels at key highs and lows. By using color intensity and scoring numbers, it visually highlights areas where liquidity concentration may be highest while incorporating trend analysis through EMAs.
🔵Key Features:
Liquidity Zone Detection: Automatically detects and marks areas where significant volume has accumulated at swing highs and lows.
Dynamic Box Plotting: Draws liquidity boxes at key highs and lows, updating based on market conditions.
Volume Strength Scaling: Uses a scoring system to rank liquidity zones, helping traders identify the strongest areas.
Color Intensity for Volume Strength: More transperent color indicate less liquidity, while less transperent represent stronger volume concentrations.
Customizable Display: Users can adjust the number of displayed liquidity zones and modify colors to suit their trading style.
Real-Time Liquidity Adaptation: As price interacts with liquidity zones, the indicator updates dynamically to reflect changing market conditions.
Auto-Stopping Liquidity Zones: Liquidity boxes automatically stop extending to the right once price crosses them, preventing outdated zones from interfering with live market action.
Trend Analysis with EMAs: Includes two optional EMAs (fast and slow) to help traders analyze market trends. Users can enable or disable these EMAs in the settings and use crossover signals for trend confirmation.
🔵Usage:
Identify Key Liquidity Areas: Use color intensity and transparency levels to determine high-impact liquidity zones.
Support & Resistance Confirmation: Liquidity zones can act as potential support and resistance levels, enhancing trade decision-making.
Market Structure Analysis: Observe how price interacts with liquidity to anticipate breakout or reversal points.
Scalping & Swing Trading: Works for both short-term and long-term traders looking for liquidity-based trade setups.
Liquidation Map Insight: A liquidity map highlights areas where large amounts of leveraged positions (both long and short) are likely to get liquidated. Since many traders use leverage, sharp price movements can trigger a cascade of liquidations, leading to rapid price surges or drops. Monitoring these liquidity zones and trends helps traders anticipate where price might react strongly.
Liquidity Location Detector is an essential tool for traders seeking to map out potential liquidity zones, providing deeper insights into market structure and trading volume dynamics.
BTC-USDT Liquidity Trend [Ajit Pandit]his script helps traders visualize trend direction and identify liquidity zones where price might react due to past pivot levels. The color-coded candles and extended pivot lines make it easier to spot support/resistance levels and potential breakout points.
Key Features:
1. Trend Detection Using EMA
Uses two EMA calculations to determine the trend:
emaValue: Standard EMA based on length1
correction: Adjusted price movement relative to EMA
Trend: Another EMA of the corrected value
Determines bullish (signalUp) and bearish (signalDn) signals when Trend crosses emaValue.
2. Candlestick Coloring Based on Trend
Candlesticks are colored:
Uptrend → Blue (up color)
Downtrend → Pink (dn color)
Neutral → No color
3. Liquidity Zones (Pivot Highs & Lows)
Identifies pivot highs and lows using a customizable pivot length.
Draws liquidity lines:
High pivot lines (Blue, adjustable width)
Low pivot lines (Pink, adjustable width)
Extends lines indefinitely until price breaks above/below the level.
Removes broken pivot levels dynamically.
Median Volume Weighted DeviationMVWD (Median Volume Weighted Deviation)
The Median Volume-Weighted Deviation is a technical trend following indicator that overlays dynamic bands on the price chart, centered around a Volume Weighted Average Price (VWAP). By incorporating volume-weighted standard deviation and its median, it identifies potential overbought and oversold conditions, generating buy and sell signals based on price interactions with the bands. The fill color between the bands visually reflects the current signal, enhancing market sentiment analysis.
How it Works
VWAP Calculation: Computes the Volume-Weighted Average Price over a specific lookback period (n), emphasizing price levels with higher volume.
Volume Weighted Standard Deviation: Measures price dispersion around the VWAP, weighted by volume, over the same period.
Median Standard Deviation: Applies a median filter over (m) periods to smooth the stand deviation, reducing noise in volatility estimates.
Bands: Constructs upper and lower bands by adding and subtracting a multiplier (k) times the median standard deviation from the VWAP
Signals:
Buy Signal: Triggers when the closing price crosses above the upper band.
Sell Signal: Triggers when the closing price crosses below the lower band.
Inputs
Lookback (n): Number of periods for the VWAP and standard deviation calculations. Default is set to 14.
Median Standard Deviation (m): Periods for the median standard deviation. Default is set to 2.
Standard Deviation Multiplier (k): Multiplier to adjust band width. Default is set to 1.7 with a step of 0.1.
Customization
Increase the Lookback (n) for a smoother VWAP and broader perspective, or decrease the value for higher sensitivity.
Adjust Median Standard Deviation (m) to control the smoothness of the standard deviation filter.
Modify the multiplier (k) to widen or narrow the bands based on the market volatility preferences.
Heikin-Ashi Reversals with Region & DotsIf you want to use Heiken Ashi candles as a way to screen for bullish and bearish reversal.
Green background is stay long and strong. Red background = potential top or bearish continuation.
Yellow dots show strong red heiken ashi candles with small upside wicks. The next candle determines whether it should be green or red. If next heiken ashi candle closes above the current candle = green, bull trend still in line. If next heiken ashi candle closes below, then time to sell
[GYTS] Ultimate Smoother (3-poles + 2 poles)Ultimate Smoother (3-pole)
🌸 Part of GoemonYae Trading System (GYTS) 🌸
🌸 --------- INTRODUCTION --------- 🌸
💮 Release of 3-Pole Ultimate Smoother
This indicator presents a new 3-pole version of John Ehlers' Ultimate Smoother (2024) . This results in an unconventional filter that exhibits effectively zero lag in practical trading applications, regardless of the set period. By using a 2-pole high-pass filter in its design, it responds to price direction changes on the same bar, while still allowing the user to control smoothness.
💮 What is the Ultimate Smoother?
The original Ultimate Smoother is a revolutionary filter designed by John Ehlers (2024) that smooths price data with virtually zero lag in the pass band. While conventional filters always introduce lag when removing market noise, the Ultimate Smoother maintains phase alignment at low frequencies while still providing excellent noise reduction.
💮 Mathematical Foundation
The Ultimate Smoother achieves its remarkable properties through a clever mathematical approach:
1. Instead of directly designing a low-pass filter (like traditional moving averages), it subtracts a high-pass filter from an all-pass filter (the original input data).
2. At very low frequencies, the high-pass filter contributes almost nothing, so the output closely matches the input in both amplitude and phase.
3. At higher frequencies, the high-pass filter's response increasingly matches the input data, resulting in cancellation through subtraction.
The 3-pole version extends this principle by using a higher-order high-pass filter, requiring additional coefficients and handling more terms in the numerator of the transfer function.
🌸 --------- USAGE GUIDE --------- 🌸
💮 Period Parameter Behaviour
The period parameter in the 3-pole Ultimate Smoother works somewhat counterintuitively:
- Longer periods: Result in less smooth, but more responsive following of the price. The filter output more closely tracks the input data.
- Shorter periods: Produce smoother output but may exhibit overshooting (extrapolating price movement) for larger movements.
This is different from most filters where longer periods typically produce smoother outputs with more lag.
💮 When to Choose 3-Pole vs. 2-Pole
- Choose the 3-pole version when you need zero-lag but want to control the smoothness
- Choose the 2-pole version when you are okay with some lag with the benefit of more smoothness.
🌸 --------- ACKNOWLEDGEMENTS --------- 🌸
This indicator builds upon the pioneering work of John Ehlers, particularly from his article April 2024 edition of TASC's Traders' Tips . The original version is published on TradingView by @PineCodersTASC .
This 3-pole extension was developed by @GoemonYae . Feedback is highly appreciated!
FinFluential Global M2 Money Supply // Days Offset =The "Global M2 Money Supply" indicator calculates and visualizes the combined M2 money supply from multiple countries and regions worldwide, expressed in trillions of USD.
M2 is a measure of the money supply that includes cash, checking deposits, and easily convertible near-money assets. This indicator aggregates daily M2 data from various economies, converts them into a common USD base using forex exchange rates, and plots the total as a single line on the chart.
It is designed as an overlay indicator aligned to the right scale, making it ideal for comparing global money supply trends with price action or other market data.
Key Features
Customizable Time Offset: Users can adjust the number of days to shift the M2 data forward or backward (from -1000 to +1000 days) via the indicator settings. This allows for alignment with historical events or forward-looking analysis.
Global Coverage Includes:
Eurozone: Eurozone M2 (converted via EUR/USD)
North America: United States, Canada
Non-EU Europe: Switzerland, United Kingdom, Finland, Russia
Pacific: New Zealand
Asia: China, Taiwan, Hong Kong, India, Japan, Philippines, Singapore
Latin America: Brazil, Colombia, Mexico
Middle East: United Arab Emirates, Turkey
Africa: South Africa
ATR Mean Reversion# ATR Mean Reversion Indicator
## Overview
The ATR Mean Reversion Indicator is designed to identify potential reversal points in the market by detecting when price has become overextended from its mean. The indicator uses Average True Range (ATR) and Keltner Channels to determine when price has moved too far from its average, suggesting a possible reversion back to the mean.
## Key Features
- **Keltner Channels**: Uses EMA as a midline with ATR-based upper and lower bands
- **Trend Detection**: Includes trend strength analysis to avoid countertrend trades
- **Reversal Signals**: Identifies potential buy and sell signals based on price action
- **Risk Management**: Includes parameters for position sizing and stop loss calculations
## Default Settings
- **ATR Period**: 5 (Measures market volatility over the last 5 periods)
- **EMA Period**: 50 (Base line for calculating the mean)
- **Keltner Channel Multiplier**: 2.5 (Width of the bands as a multiple of ATR)
- **Trade Fraction**: 0.5 (Percentage of equity to risk per trade)
- **Stop Loss %**: 0.04 (4% stop loss from entry)
## Visual Elements
- **EMA Line**: Blue line showing the mean price
- **Upper Keltner Channel**: Red line showing overextended high zone
- **Lower Keltner Channel**: Green line showing overextended low zone
- **BUY Signal**: Green triangle below the candle
- **SELL Signal**: Red triangle above the candle
- **Info Panel**: Table in the top-right showing current values and market conditions
## Trading Tips
1. **Best Market Conditions**: This strategy works best in ranging markets or during temporary pullbacks in a trend
2. **Avoid**: Using this strategy in strongly trending markets without confirmation
3. **Confirmation**: Consider waiting for additional confirmation like RSI or volume patterns
4. **Stop Loss**: Always place a stop loss, suggested at the ATR multiplier distance from entry
5. **Take Profit**: Consider taking profits when price approaches the mean (EMA line)
## Risk Management
- Use the trade fraction parameter to control position sizing
- Consider reducing position size in highly volatile markets
- The indicator includes built-in alerts that can be set for both BUY and SELL signals
## Customization
You can adjust the parameters to suit different market conditions:
- Increase the ATR Period for less sensitive volatility measurement
- Increase the Keltner Multiplier for fewer but potentially stronger signals
- Adjust the EMA Period based on your trading timeframe (higher for longer-term trades)
## Best Timeframes
The indicator can be used on any timeframe, but typically works well on:
- 1H, 4H charts for short to medium-term trades
- Daily charts for swing trading opportunities
Remember that no indicator is perfect, and the ATR Mean Reversion indicator should be used as part of a complete trading system with proper risk management.
Normalised Price Crossover - MACD but TickersEver noticed two different tickers are correlated yet have different lags? Ever find one ticker moves first and when the other finally goes to catch up, the first one has already reversed?
So I thought to myself, would be wicked if I took the faster one and made it into a 'Signal Line' and the slow one and made it into a 'Slow Line' almost like a MACD if you will.
So that's what I did, I took the price charts of the tickers and I normalised the price data so they could actually cross, plotted it and sat back to see it generate signals, lo and behold!
Pretty neat, though I'd advise to use spreads and such for the different tickers to really feel the power of the indicator, works well when you use formulas that model actual mechanisms instead of arbitrary price data of different assets as correlation =/= causation.
Enjoy.
Consolidation Zones [ActiveQuants]The Consolidation Zones indicator is an innovative tool designed to help traders pinpoint periods of low volatility and market balance . By dynamically plotting zones where price action remains confined within an ATR-defined range around a simple moving average (SMA), this indicator highlights periods of consolidation that often precede breakouts or reversals .
█ KEY FEATURES
Dynamic Zone Detection : Automatically identifies consolidation zones when the price remains within a tight range defined by the SMA and ATR over a specified number of bars, signaling balanced market conditions.
Customizable Parameters : Adjust key inputs such as Minimum Zone Length , ATR Length , the number of bars to display, and zone color, enabling you to tailor the indicator to various market conditions and trading styles.
Automated Zone Management : Efficiently plots consolidation zones and cleans up older ones to maintain a clear and focused chart, ensuring you always have an up-to-date view of recent market behavior.
Enhanced Market Analysis : By visualizing areas of price stability, the indicator aids in spotting potential breakout or reversal points, which can be critical for fine-tuning entry and exit strategies.
█ CONCLUSION
The Consolidation Zones indicator is an essential tool for traders who value volatility analysis and precision timing. By marking key periods of price consolidation, it enhances your market analysis, helping you anticipate potential moves and refine your trading strategy.
█ IMPORTANT
⚠ Consolidation signals should be used alongside other technical indicators or analysis techniques such as trend lines, support/resistance levels, or volume to confirm trading decisions.
⚠ Adjust the indicator’s settings based on your preferred timeframe and asset class to achieve the best results.
█ RISK DISCLAIMER
Trading involves significant risk, and you may lose capital. Past performance is not indicative of future results. This tool provides informational signals only and does not constitute financial advice. Use it at your own risk and consult a qualified financial professional before making trading decisions.
Incorporate this indicator into your trading workflow to improve market timing and optimize your entry and exit strategies.
📈 Happy trading! 🚀
Bollinger Momentum Deviation | QuantEdgeBIntroducing Bollinger Momentum Deviation (BMD) by QuantEdgeB
🛠️ Overview
Bollinger Momentum Deviation (BMD) is a trend-following momentum indicator designed to identify strong price movements while also detecting overbought and oversold conditions in ranging markets.
By normalizing a simple moving average (SMA) with standard deviation, BMD captures momentum shifts, helping traders make data-driven entries and exits. In trending conditions, it acts as a momentum confirmation tool, while in ranging markets, it highlights mean-reversion opportunities for profit-taking or re-accumulation.
BMD combines the best of both worlds—a robust trend-following framework with an integrated volatility-based overbought/oversold detection system.
____
✨ Key Features
🔹 Momentum & Trend-Following Core
Built upon a normalized SMA with standard deviation filtering, BMD efficiently tracks price movements while reducing lag.
🔹 Overbought/Oversold Market Detection
By dynamically adjusting its thresholds based on standard deviation, it identifies high-probability reversion zones in sideways markets.
🔹 Adaptive Normalization Mechanism
Ensures consistent signal reliability across different assets and timeframes by standardizing momentum fluctuations.
🔹 Customizable Visual & Signal Settings
Includes multiple color modes, extra plots, and trend labels, making it easy to align with different trading styles.
____
📊 How It Works
1️⃣ Normalized Momentum Calculation
BMD computes a normalized momentum score using a simple moving average (SMA) combined with a standard deviation (SD) filter to create dynamic upper and lower bands. The final momentum score is derived by normalizing the price within this volatility-adjusted range. This normalization makes momentum readings comparable across different price levels and timeframes.
2️⃣ Standard Deviation Filtering
Unlike traditional approaches where standard deviation is derived from price as is the first SD, BMDs second SD is driven from the normalized momentum oscillator itself. This allows for a volatility-adjusted smoothing mechanism that adapts to momentum shifts rather than raw price fluctuations. This ensures that the trend signals remain dynamic and responsive, filtering out short-term noise while keeping the core momentum structure intact. By applying standard deviation directly to the oscillator, BMD achieves a self-regulating feedback loop, improving accuracy in both trending and range-bound conditions.
3️⃣ Signal Generation
✅ Long Signal → Upper BMD SD > Long Threshold (83)
❌ Short Signal → Lower BMD SD < Short Threshold (60)
📌 Additional Features:
- Overbought Zone → Values above 130 indicate price extension.
- Oversold Zone → Values below -10 suggest potential accumulation.
- Momentum Labels → Optional "Long" and "Short" markers for clear trade identification.
____
👥 Who Should Use It?
✅ Trend Traders & Momentum Followers → Use BMD as a confirmation tool for strong directional trends.
✅ Range & Mean Reversion Traders → Identify reversal opportunities at extreme BMD levels.
✅ Swing & Position Traders → Utilize normalized momentum shifts for data-driven entries & exits.
✅ Systematic & Quant Traders → Implement BMD within algorithmic frameworks for adaptive market detection.
____
⚙️ Customization & Default Settings
🔧 Key Custom Inputs:
- Base Length (Default: 40) → Defines the SMA calculation period.
- Standard Deviation Length (Default: 50) → Controls the volatility filter strength.
- SD Multiplier (Default: 0-7) → Adjusts the sensitivity of the momentum filter.
- Long Threshold (Default: 83) → Above this level, momentum is bullish.
- Short Threshold (Default: 60) → Below this level, momentum weakens.
- Visual Customizations → Multiple color themes, extra plots, and trend labels available.
🚀 By default, BMD is optimized for trend-following and momentum filtering while remaining adaptable to various trading strategies.
____
📌 How to Use Bollinger Momentum Deviation (BMD) in Trading
1️⃣ Trend-Following Strategy (Momentum Confirmation)
✔ Enter long positions when BMD crosses above the long threshold (83), confirming upward momentum.
✔ Enter short positions when BMD crosses below the short threshold (60), confirming downward momentum.
✔ Stay in trades as long as BMD remains in trend direction, filtering out noise.
2️⃣ Mean Reversion Strategy (Overbought/Oversold Conditions)
✔ Take profits or hedge when BMD crosses above 130 (overbought).
✔ Re-accumulate positions when BMD drops below -10 (oversold).
📌 Why?
- In trending markets, follow BMD’s momentum confirmation.
- In ranging markets, use BMD’s normalized bands to buy at deep discounts and sell into strength.
_____
📌 Conclusion
Bollinger Momentum Deviation (BMD) is a versatile momentum indicator that combines trend-following mechanics with volatility-adjusted mean reversion zones. By normalizing SMA-based momentum shifts, BMD ensures robust signal reliability across different assets and timeframes.
🔹 Key Takeaways:
1️⃣ Momentum Confirmation & Trend Detection – Captures directional strength with dynamic filtering.
2️⃣ Overbought/Oversold Conditions – Identifies reversal opportunities in sideways markets.
3️⃣ Adaptive & Customizable – Works across different timeframes and trading styles.
🔹 Disclaimer: Past performance is not indicative of future results. No trading strategy can guarantee success in financial markets.
🔹 Strategic Advice: Always backtest, optimize, and align parameters with your trading objectives and risk tolerance before live trading.
MTF Round Level Reversal [RunRox]🧲 MTF Round Level Reversal is an indicator designed to highlight price levels on the chart where the market encountered significant resistance or support at round numbers, failing to break through large clusters of orders.
In many cases, price revisits these round-number levels to absorb the remaining liquidity, offering potential reversal or continuation trade opportunities.
✏️ EXAMPLE
Here’s an example demonstrating how this indicator works and how its logic is structured:
As shown in the screenshot above, price encountered resistance at round-number levels, clearly reacting off these areas.
Afterward, the market pulled back, presenting opportunities to enter trades targeting these previously established open levels.
This logic is based on the observation that price often seeks to revisit these open round-number levels due to the residual liquidity resting there.
While effective across various markets, this indicator performs particularly well with stocks or assets priced at higher values.
For a level to appear on the chart, price must first encounter a round-number value and clearly reverse from it, leaving a visible reaction on the chart. After this occurs, the indicator will mark this level as fully formed and display it as an active reversal area.
⚙️ SETTINGS
🔷 Timeframe – Choose any timeframe from which you’d like the indicator to source level data.
🔷 Period – Defines the number of candles required on both sides (left and right) to confirm and fully form a level.
🔷 Rounding Level – Adjusts price rounding precision when detecting levels (from 0.0001 up to 5000).
🔷 Color – Customize the color and transparency of displayed levels.
🔷 Line Style – Select the desired line style for level visualization.
🔷 Label Size – Set the font size for the level labels displayed on the chart.
🔷 Move Label to the Right – Move level labels to the right side of the screen for better visibility.
🔷 Label Offset – Specifies how many bars labels should be offset from the chart’s right edge.
🔷 Delete Filled Level – Automatically removes levels from the chart after they’ve been revisited or filled.
🔷 Calculation Bars – Determines the number of recent bars considered when calculating and identifying levels.
🔶 There are numerous ways to apply this indicator in your trading strategy. You can look for trades targeting these round-number levels or identify reversal setups forming at these high-liquidity zones. The key insight is understanding that these levels represent significant liquidity areas, which price frequently revisits and retests.
We greatly appreciate your feedback and suggestions to further improve and enhance this indicator!
Pure CocaPure Coca - Trend & Mean Reversion Indicator
Overview
The Pure Coca indicator is a trend and mean reversion analysis tool designed for identifying dynamic shifts in market behavior. By leveraging Z-score calculations, this indicator captures both trend-following and mean-reverting periods, making it useful for a wide range of trading strategies.
What It Does
📉 Detects Overbought & Oversold Conditions using a Z-score framework.
🎯 Identifies Trend vs. Mean Reversion Phases by analyzing the deviation of price from its historical average.
📊 Customizable Moving Averages (EMA, SMA, VWMA, etc.) for smoothing Z-score calculations.
🔄 Adaptable to Any Timeframe – Default settings are optimized for 2D charts but can be adjusted to suit different market conditions.
How It Works
Computes a Z-score of price movements, normalized over a lookback period.
Plots upper and lower boundaries to visualize extreme price movements.
Dynamic Midlines adjust entry and exit conditions based on market shifts.
Background & Bar Coloring help traders quickly identify trading opportunities.
Key Features & Inputs
✔ Lookback Period: Adjustable period for calculating Z-score.
✔ Custom MA Smoothing: Choose from EMA, SMA, WMA, VWAP, and more.
✔ Z-Score Thresholds: Set upper and lower bounds to define overbought/oversold conditions.
✔ Trend vs. Mean Reversion Mode: Enables traders to spot momentum shifts in real-time.
✔ Bar Coloring & Background Highlights: Enhances visual clarity for decision-making.
How to Use It
Trend Trading: Enter when the Z-score crosses key levels (upper/lower boundary).
Mean Reversion: Look for reversals when price returns to the midline.
Custom Optimization: Adjust lookback periods and MA types based on market conditions.
Why It's Unique
✅ Combines Trend & Mean Reversion Analysis in one indicator.
✅ Flexible Z-score settings & MA choices for enhanced adaptability.
✅ Clear visual representation of market extremes.
Final Notes
This indicator is best suited for discretionary traders, quantitative analysts, and systematic traders looking for data-driven market insights. As with any trading tool, use in conjunction with other analysis methods for optimal results.
Dynamic Timeframe Trend AnalyzerPurpose and Core Logic
This indicator automatically adjusts its calculations based on the current chart’s timeframe, allowing traders to analyze trends, momentum, and mean reversion opportunities without manually changing indicator settings for each interval. It detects potential long or short setups by combining several techniques:
Dynamic Timeframe Factor
The script compares the current timeframe to a base (e.g., 5 minutes) and calculates a “factor” to scale certain parameters, such as EMA lengths or ATR settings. This reduces the need to reconfigure indicators when switching timeframes.
Regime Detection
It uses ADX (Average Directional Index) to classify the market as strongly trending, moderately trending, choppy, or in a potential mean-reversion phase.
RSI (Relative Strength Index) is also monitored for extreme levels (e.g., overbought/oversold) to detect potential reversal zones.
Volume is compared to a moving average to confirm or refute volatility conditions.
Trend & Mean Reversion Signals
EMA Alignment (8/21/55) helps identify bullish or bearish phases (strong bull if all EMAs align upward, strong bear if aligned downward).
For mean reversion opportunities, the script checks if ADX is sufficiently low (indicating weak or no trend) while price and RSI are at extreme levels—suggesting a snapback or countertrend move may occur.
Dynamic Stop Loss & Take Profit
Uses ATR (Average True Range) to set initial stop-loss (SL) and take-profit (TP) levels, then adjusts these levels further with “regime multipliers” based on whether the market is in a high-volatility trend or a quieter mean-reversion environment.
This approach aims to place stops and targets in a more adaptive way, reflecting current market conditions rather than a one-size-fits-all approach.
Visual Aids
Color-coded chart backgrounds (e.g., greenish for bullish trend, red for bearish, yellow/orange for mean reversion).
Triangles to show recent bullish/bearish signals.
A status table in the top-right corner (optional) displaying key metrics like ADX, RSI, dynamic thresholds, current SL/TP levels, and whether a stop loss has been hit.
How It Works Internally
ADX & Dynamic Thresholds:
A moving average (adx_mean) and standard deviation (adx_std) of the ADX are calculated over a lookback period to define “strong” vs. “weak” ADX thresholds.
This allows the script to adapt to changing volatility and trend strength in different markets or timeframes.
Mean Reversion Criteria:
The indicator checks if price deviates significantly from its own moving average, alongside RSI extremes. If ADX suggests no strong directional push (i.e., the market is “quiet”), it may classify conditions as mean-reverting.
Regime Multipliers:
Once the script identifies the market regime (e.g., strong uptrend, choppy, mean reversion), it applies different multipliers to the user-defined base values for stop-loss and take-profit. For instance, strong trending conditions might allow for wider stops to handle volatility, while mean reversion signals use tighter exits to capture quick reversals.
How to Use It
Timeframe Agnostic
Simply apply it to any timeframe (from 1-minute up to daily or weekly). The “Dynamic Timeframe Factor” will scale the indicator parameters automatically.
Look for Buy/Sell Triangles
When the script detects a valid bullish trend shift or a mean-reversion long setup, it plots a green triangle under the price bar. Conversely, it plots a red triangle above the price bar for bearish or mean-reversion short setups.
Check the Status Table
The table in the top-right corner summarizes the indicator’s current readings: ADX, RSI, volume trends, and the market regime classification.
The table also shows if a stop loss has been hit (SL Hit) and displays recommended SL/TP levels if a signal is active.
Stop Loss & Take Profit
The script plots lines for SL and TP on your chart after a new signal. These lines are automatically adjusted based on ATR, volume conditions, and ADX-derived multipliers.
Mean Reversion vs. Trend-Following
If you see a “Mean Rev” state in the table or the background turning yellow/orange, it suggests potential countertrend trades. Conversely, “STRONG BULL” or “STRONG BEAR” states favor momentum-based entries in the prevailing direction.
Originality & Benefits
Adaptive to Timeframe: Many indicators require reconfiguration when switching from short to long timeframes. This script automates that process using the “timeframe factor” logic.
Regime-Based SL/TP: Instead of fixed risk parameters, the script dynamically tunes stop and target levels depending on whether the market is trending or reverting.
Comprehensive Market View: It combines multiple factors—ADX, RSI, volume, moving averages, and volatility measurements—into a single, integrated framework that categorizes the market regime in real time.
Best Practices & Notes
Timeframes: It typically performs well on intraday timeframes (5m, 15m, 1H) but can also be used for swing trading on 4H or Daily charts.
Settings: The defaults are a good starting point, but you can adjust the base ATR multiplier or ADX lookbacks if you prefer a different balance between sensitivity and stability.
Risk Management: This indicator is not a guarantee of any specific results. Always use proper risk management (position sizing, stop-losses, and diversified strategies).
Alert Conditions: Built-in alert conditions can notify you when a new long or short signal appears, or when a stop loss is triggered.
Opening Price Deviations with AlertsOverview
The Timeframe Opening Price Deviations indicator helps traders visualize how price deviates from a key reference point—the opening price of a selected timeframe (Daily, Weekly, or Monthly). It calculates upper and lower deviation levels based on a percentage step and plots these levels on the chart. This can help traders identify potential areas of support and resistance.
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How It Works
Opening Price Reference:
The script retrieves the opening price of the selected timeframe (Daily, Weekly, or Monthly).
Deviation Levels Calculation:
Five upper and lower deviation levels are calculated based on a percentage step input by the user.
Each level is determined by multiplying the opening price by (1 ± step size).
Visualization
The indicator plots the calculated levels as horizontal lines above and below the opening price.
Labels appear only on the latest bar, displaying the exact price level along with its percentage deviation from the opening price.
User has the option to turn on/off or change the bar colours. If price is within the 1st deviation lines that's considered neutral coloured orange as default. If price is above/below the first deviation levels the bar colours will be green or red.
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Potential Use Cases
Support & Resistance Zones 🟢🔴
The deviation levels can act as potential areas where price may reverse or consolidate based on historical price behaviour.
Breakout & Reversion Strategies 📈📉
If price breaks above an upper deviation level, it could indicate momentum continuation.
If price rejects from a level, it might suggest a mean reversion opportunity.
Trend Strength Analysis 🔍
The distance between the price and deviation levels can help traders assess whether a trend is strong (moving away from the opening price) or weak (hovering near the opening price).
Intraday vs. Multi-Timeframe Perspective 🕒
By selecting different timeframes (Daily, Weekly, Monthly), traders can align intraday price movements with higher timeframe reference points for added confluence.
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Customization Options
Timeframe Selection: Choose between Daily, Weekly, or Monthly opening prices.
Deviation Step (%): Adjust the step size to control the spacing between deviation levels.
Colour Bars: User Is able to change the colour of the bars.
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Alerts
This Indicator also has alerts for when price crosses above/below a deviation line. It will tell you the ticker, price and time
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Final Notes
This indicator is purely for technical analysis and should not be used as a standalone trading system. It works best when combined with price action, volume analysis, or other indicators of you're choosing to refine trade decisions.
Happy Trading! 🚀📊
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This explanation is clear, informative, and compliant with TradingView’s House Rules.
Chaikin Money Flow with EnhancementsThis enhanced version of the Chaikin Money Flow (CMF) indicator is designed to help traders better understand market sentiment by visualizing momentum shifts and trends based on volume-weighted accumulation and distribution.
CMF Calculation: The CMF line is calculated using the typical CMF formula, which compares the close price to the high/low range, weighted by volume.
Fading Color Zones: Green and red fading zones are added between the CMF line and the zero line. Green represents bullish momentum (CMF above zero), and red represents bearish momentum (CMF below zero). These zones highlight key shifts in market sentiment.
Cross Detection: The indicator detects when the CMF crosses above or below the zero line, signaling potential trend changes. The price and CMF values at the time of the cross are stored and can be used for further analysis.
Average Line: A configurable moving average of the CMF is plotted to provide a smoothed trendline, helping traders identify the overall direction of market sentiment.
This indicator is ideal for traders who want to enhance their technical analysis by incorporating volume-weighted momentum indicators and identifying trend reversals more clearly.
TMA StrategyThe **TMA Strategy** is a trend-following strategy that leverages **Smoothed Moving Averages (SMMA)** and **candlestick patterns** to identify high-probability trading opportunities. It is designed for traders who want to capture strong trends while minimizing noise from short-term fluctuations.
**Key Features:**
✔ **Multiple Smoothed Moving Averages (SMMA):** Uses 21, 50, 100, and 200-period SMMAs to identify market trends and key support/resistance zones.
✔ **Candlestick Pattern Confirmation:** Incorporates **3-line strike** and **engulfing candle** patterns to confirm trade entries.
✔ **Dynamic Trend Filter:** A **2-period EMA** ensures that trades align with the dominant trend, reducing false signals.
✔ **Customizable Session Filter:** Allows users to enable/disable trading within specific market sessions (New York, London, Tokyo, etc.), ensuring trades are executed only during high-liquidity hours.
✔ **Risk Management:** Uses predefined exit conditions based on EMA/SMMA crossovers to lock in profits and minimize losses.
**Trading Logic:**
📌 **Long Entry:**
- Bullish Engulfing or 3-Line Strike pattern appears.
- Price is above the 200 SMMA.
- 2 EMA confirms an uptrend.
- Trade executes if session filter allows.
📌 **Short Entry:**
- Bearish Engulfing or 3-Line Strike pattern appears.
- Price is below the 200 SMMA.
- 2 EMA confirms a downtrend.
- Trade executes if session filter allows.
📌 **Exit Conditions:**
- Long trades exit when EMA(2) crosses **below** SMMA(200).
- Short trades exit when EMA(2) crosses **above** SMMA(200).
**Ideal Markets & Timeframes:**
✅ Best suited for **Forex, Stocks, and Crypto** markets.
✅ Works well on **higher timeframes (15m, 1H, 4H, Daily)** for stronger trend confirmation.
📢 **Disclaimer:**
This strategy is for educational purposes only. Backtest results do not guarantee future performance. Always use proper risk management and test in a demo account before live trading.
🚀 **Try the TMA Strategy now and enhance your trend-following approach!**
Wick Highlighter- Description
This script is a custom Multi-Wick Zone Highlighter that detects and highlights significant candle wicks on your chart. It is designed to work across multiple timeframes and uses time‑anchored boxes to “stick” to the original wick levels, ensuring that highlighted zones remain fixed even when panning or zooming the chart.
- Key Features
Wick Detection:
The script examines each candle to determine whether its upper or lower wick exceeds a user‑defined minimum size. Only wicks that meet or exceed this threshold are considered significant and trigger the creation of a highlight zone.
Zone Creation and Removal:
When a qualifying wick is detected, the script creates a colored zone (using anchored boxes) that spans from the wick tip to the candle’s body (top for upper wicks and bottom for lower wicks). Each zone remains visible until it is “filled” by subsequent price action. The fill condition is determined by a user‑adjustable fill percentage. For example, setting the fill percentage to 100% will remove the zone once the next candle’s high (for an upper wick) or low (for a lower wick) reaches the corresponding body level.
Multiple Zones:
This indicator supports multiple simultaneous zones. Each wick that qualifies is independently tracked and will not be overwritten by a later candle unless its fill condition is met. Separate flags ensure that if a candle fills an existing zone on one side, it does not create a new zone on that same side, maintaining clarity on your chart.
Time-Anchored Positioning:
To keep zones properly anchored even when you change timeframes or pan the chart, the script uses the bar’s time value rather than the bar index. This ensures that each zone remains fixed to the specific price levels where the wick was detected.
- Usage Notes
User-Adjustable Inputs:
Minimum Wick Size (Points): Set the minimum wick length to trigger a zone.
Wick Fill Percentage (%): Set the percentage into the wick at which the zone is considered filled and will be removed.
Zone Extend Bars: Control how far to the right (in terms of bars) each zone is extended.
Ideal For:
Traders who wish to visually identify key price zones based on significant candle wicks, and who require these zones to remain fixed and clear on the chart until they are actively filled by subsequent price movement.
Liquidations Levels [RunRox]📈 Liquidation Levels is an indicator designed to visualize key price levels on the chart, highlighting potential reversal points where liquidity may trigger significant price movements.
Liquidity is essential in trading - price action consistently moves from one liquidity area to another. We’ve created this free indicator to help traders easily identify and visualize these liquidity zones on their charts.
📌 HOW IT WORKS
The indicator works by marking visible highs and lows, points widely recognized by traders. Because many traders commonly place their stop-loss orders beyond these visible extremes, significant liquidity accumulates behind these points. By analyzing trading volume and visible extremes, the indicator estimates areas where clusters of stop-loss orders (liquidity pools) are likely positioned, giving traders valuable insights into potential market moves.
As shown in the screenshot above, the price aggressively moved toward Sell-Side liquidity. After sweeping this liquidity level for the second time, it reversed and began targeting Buy-Side liquidity. This clearly demonstrates how price moves from one liquidity pool to another, continually seeking out liquidity to fuel its next directional move.
As shown in the screenshot, price levels with fewer anticipated trader stop-losses are indicated by less vibrant, faded colors. When the lines become more saturated and vivid, it signals that sufficient liquidity - in the form of clustered stop-losses has accumulated, potentially attracting price movement toward these areas.
⚙️ SETTINGS
🔹 Period – Increasing this setting makes the marked highs and lows more significant, filtering out minor price swings.
🔹 Low Volume – Select the color displayed for low-liquidity levels.
🔹 High Volume – Select the color displayed for high-liquidity levels.
🔹 Levels to Display – Choose between 1 and 15 nearest liquidity levels to be shown on the chart.
🔹 Volume Sensitivity – Adjust the sensitivity of the indicator to volume data on the chart.
🔹 Show Volume – Enable or disable the display of volume values next to each liquidity level.
🔹 Max Age – Limits displayed liquidity levels to those not older than the specified number of bars.
✅ HOW TO USE
One method of using this indicator is demonstrated in the screenshot above.
Price reached a high-liquidity level and showed an initial reaction. We then waited for a second confirmation - a liquidity sweep followed by a clear market structure break - to enter the trade.
Our target is set at the liquidity accumulated below, with the stop-loss placed behind the manipulation high responsible for the liquidity sweep.
By following this approach, you can effectively identify trading opportunities using this indicator.
🔶 We’ve made every effort to create an indicator that’s as simple and user-friendly as possible. We’ll continue to improve and enhance it based on your feedback and suggestions in the future.
Forward-Backward Exponential Oscillator [LuxAlgo]The Forward-Backward Exponential Oscillator is a normalized oscillator able to estimate directional shifts by making use of a unique "Forward-Backward Filtering" calculation method for Exponential Moving Averages (EMAs).
This unique method provides a smooth normalized representation of the price with reduced lag.
🔶 USAGE
The oscillator consists of 2 series of values derived from normalizing the sum of each EMA's change across the selected user lookback window (length), one less reactive computed forward (in grey), and the other re-calculated backward for each bar (in blue).
Given this "Forward-Backwards" calculation method, we are able to produce a more reactive oscillator compared to the same operation done on a simple double-smoothed EMA.
The interaction between these 2 values (Forward Value and Backward Value) can highlight shifts in market momentum over time.
When the Forward Value is above the Backward Value, the price is seen moving up, and likewise, when the Forward EMA is below, the Backward EMA price is seen moving down.
The indicator specifically displays the difference between values through a histogram located at the 50 mark on the oscillator.
🔹 Projection
We project the approximated future values of the forward value in front of the current line. This helps show the data that is being used for the creation of the Forward Value.
🔹 Length & Smoothing
The Smoothing Input controls the length of the EMAs which are analyzed.
The Length Input controls the lookback for the sum of changes from the EMAs.
Displayed below is a comparison of varying input sizes and their results.
As seen above:
A larger length input will result in slower, gradual movement by the oscillator since the summed values are from a larger lookback.
A higher smoothing setting will result in smoother EMAs, leading to a smoother oscillator output that is less contaminated by noisy variations.
Note: The length of the projection is tied to the "length" input, to get a longer projection, a larger length is required.
🔶 DETAILS
Forward-backward filtering is a method applied to LTI (linear time-invariant) filters to provide a filter response with zero-phase shift, this has the visible effect of shifting a regular causal filter response to the right, making it appear has have effectively 0 lag.
The name of this operation indicates that the filter is first calculated forward over a series of values (like regular moving averages), then calculated backward, using the previous output as input for the filter, effectively applying the filter twice.
While this operation effectively allows us to obtain a zero-lag response when applied to an EMA, it is subject to repainting, as this indicator only returns the normalized sum of changes of the forward-backward EMA, which does not introduce any repainting behaviors in the final output of the oscillator.
🔶 SETTINGS
Length: Change the calculation lookback length for the oscillator.
Smoothing: Alter the smoothness of the back-end EMA calculations.
Source: Change the source input used for the indicator.
[TehThomas] - ICT Volume ImbalanceThis script is a Volume Imbalance (VI) detector and visualizer for use on the TradingView platform. The goal of the script is to automatically identify areas where there are significant imbalances in the volume of trades between consecutive candlesticks and visually highlight these areas. These imbalances can provide traders with valuable insights about the market’s current condition, often signaling potential reversal or continuation points based on price and volume action.
ICT (Inner Circle Trader) Concept of Volume Imbalances
Volume imbalances are a critical concept in the ICT trading methodology. They refer to situations where there is an unusual or significant difference in volume between two consecutive candlesticks, which might indicate institutional or large player activity. According to ICT principles, these imbalances can show us areas of market inefficiency or potential price manipulation. By identifying these imbalances, traders can gain an edge in understanding where the market is likely to move next.
Bullish and Bearish Volume Imbalances:
Bullish Volume Imbalance: This occurs when there is a strong increase in buying pressure, typically indicated by a higher volume on a candle that closes significantly above the previous one, often leaving a gap or larger price movement. The market could be preparing to push higher, and the volume shows a clear shift in buying demand.
Bearish Volume Imbalance:
Conversely, a bearish imbalance occurs when there is a strong increase in selling pressure, typically signaled by a candle that closes significantly lower than the previous one, again with higher volume. This could indicate that large players are offloading positions, and the price is likely to drop further.
Key Features and Functions of the Script
The script automates the process of detecting these volume imbalances and visually marking them on a price chart. Let’s explore its functionality in detail.
1. Inputs Section
The script allows for significant customization through its input options, which help traders adjust the detection and visualization of volume imbalances based on their individual preferences and trading style. Below are the details:
lookback (250 bars): This input specifies the number of bars (or candles) the script should look back when analyzing the volume imbalance. By setting this to 250, the user is looking at the last 250 bars on the chart to detect any significant volume imbalances. This period is adjustable between 50 to 500 bars.
volumeThreshold (1.0 multiplier): This input helps set the sensitivity for identifying volume imbalances. The script compares the volume of the current candle with the previous one, and if the current volume exceeds the previous volume by this threshold multiplier (in this case, 1.0 means at least equal to the previous volume), then it triggers an imbalance. Users can adjust the multiplier to suit different market conditions.
showBoxes (true/false): This toggle determines whether the boxes representing volume imbalances are drawn on the chart. When enabled, the script visually highlights the imbalances with colored boxes.
fillBaseColor (orange with 80% opacity): This is the color setting for the background of the imbalance boxes. A softer color (like orange with opacity) ensures the imbalance is highlighted without obscuring the price action.
borderColor (gray): The color of the border around the imbalance boxes. This adds a visual distinction to make the imbalance areas more visible.
borderWidth (1 pixel): This controls the width of the box's border to adjust how prominent it appears.
rightOffset (30 bars): This input controls how far the imbalance box extends to the right on the chart. It helps users anticipate the potential continuation of the imbalance beyond the current candle.
allowWickOverlap (true/false): This setting allows imbalances to be identified even if the wicks of the two consecutive candlesticks overlap. If set to false, only imbalances where the bodies of the candlesticks don’t overlap are considered.
showBrokenBoxes (true/false): If enabled, once a volume imbalance no longer holds true (i.e., the price breaks through the box), the box is marked as "broken." If disabled, the box is deleted when the imbalance condition no longer applies.
brokenBoxColor (red): This controls the color of the box when it is broken, which can be used as a visual cue that the imbalance was invalidated or no longer valid for analysis.
2. Volume Imbalance Function
This is the core function of the script, where the logic to detect bullish and bearish volume imbalances is implemented.
Bullish Imbalance Condition:
The first condition checks if the low of the current candle is greater than the high of the previous candle. This suggests that the market is moving upward with buying pressure.
The second condition checks whether the volume of the current candle is higher than the previous candle by the volumeThreshold multiplier. If both conditions are satisfied, a bullish imbalance is detected.
Bearish Imbalance Condition:
The first condition checks if the high of the current candle is lower than the low of the previous candle. This suggests downward price action with selling pressure.
The second condition checks whether the current volume exceeds the previous volume by the threshold
Allow Wick Overlap: If allowWickOverlap is set to true, the script will still detect imbalances if the wicks of the two candles overlap (common in volatile markets). If false, imbalances are only considered if the wicks do not overlap.
3. Box Creation and Management
When a volume imbalance is detected, the script creates a box on the chart:
The bullish imbalance box is drawn using the minimum of the open and close of the current bar as the top boundary and the maximum of the open and close of the previous bar as the bottom boundary.
Conversely, the bearish imbalance box is drawn in reverse, using the maximum of the current bar’s open and close as the top boundary and the minimum of the previous bar’s open and close as the bottom boundary.
Once the box is created, it is displayed on the chart with the specified background color, border color, and width.
4. Processing Existing Boxes
After detecting a new imbalance and drawing a box, the script checks whether the box should still remain on the chart:
If the price moves beyond the boundaries of the imbalance box, the box is marked as broken (if showBrokenBoxes is enabled), and its color is changed to red, signifying that the imbalance is no longer valid.
If the box remains intact (i.e., the price has not broken the defined boundaries), the script keeps the box extended to the right as the market continues to evolve.
5. Removing Outdated Boxes
Lastly, the script removes boxes that are older than the specified lookback period. For example, if a box was created 250 bars ago, it will be deleted after that period. This ensures the chart stays clean and only focuses on relevant imbalances.
Why This Script is Useful for Traders
This script is extremely valuable for traders, especially those following the ICT methodology, because it automates the process of detecting market inefficiencies or imbalances that might signal future price action. Here’s why it’s particularly useful:
Identifying Key Areas of Interest: Volume imbalances often point to areas where institutional or large-scale traders have entered the market. These areas could provide clues about the next significant move in the market.
Visualizing Market Structure: By automatically drawing boxes around volume imbalances, the script helps traders visually identify potential areas of support, resistance, or turning points, enabling them to make informed trading decisions.
Time Efficiency: Instead of manually analyzing each candlestick and volume spike, this script does the heavy lifting, saving traders valuable time and allowing them to focus on other aspects of their strategy.
Enhanced Trade Entries and Exits: By understanding where volume imbalances are occurring, traders can time their entries (buying during bullish imbalances and selling during bearish ones) and exits (as imbalances break) more effectively, thus improving their chances of success.
Conclusion
In summary, this script is a powerful tool for traders looking to implement volume imbalance strategies based on the ICT methodology. It automates the identification and visualization of significant imbalances in price and volume, offering traders a clear visual representation of potential market turning points. By customizing the settings, traders can tailor the script to their preferred timeframes and sensitivity, making it a flexible and effective tool for any trading strategy.
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