MarketWebs

2월 7일

What are the MarketWebs?
A technical system based on Auction Market Theory and Market Profiles using Volume, Time, and Price to determine a Technical Roadmap outlining significant support & resistance across Equities, Futures, Cryptos and Forex.

Volume at price (Market Profile) is a powerful way to look at the market. By comparing current price action to the action occurring during previous periods, we can more clearly see the strength or weakness in the current market. Marking and tracking previous periods also allow the trader to identify price levels the market “remembers”.

Uniquely, this script automatically identifies and labels:

• Virgin Points of Control (VPOCs) derived from price action leaving behind overhead supply (or underneath demand). VPOCs help determine pivot / stabilization points and often act as magnets when the market is trending.
  
• Price breakouts across multiple time frames based on Auction Market Theory.
  
• Bullish or bearish 80% rules as price enters value. This rule is triggered when: the Value Area has not been fully explored, price has been trading outside of value, and price breaks into value.
  
• Venom Lines which are pivot lines of support and resistance derived from the period’s value area.
  
• When high volatility is expected after a price auction period of significantly suppressed volatility.
  

What do they show?
1) Value Areas
The MarketWebs calculate precise Value Areas based on the market profile built from the amount of volume traded and time spent at all price levels across a period and then shift them forward for reference in the next period. As a technique developed in the 1980’s OEX trading pit using the previous day’s price action for reference today, this script extrapolates that concept into daily, weekly, monthly, and yearly value areas to compare the current price action to.

This script automatically draws the value areas across multiple time frames, calculating the value areas for the applicable periods: Daily, Weekly, Monthly, and Yearly.



For instance, the Monthly Value Area is based on the previous trading month. When the market is “below value” the trend is weak and price is in an auction market looking to establish a new “value”. The same is true above value, the market is strong. Inside of value however, the market is ranging instead of trending.

By applying multiple copies of the script to the chart, it is possible to show multiple time frame value areas on the same chart.



2) VPOCs
Within every value area there is a price level at which the most activity occurred. This is called the “Point of Control” (POC). It is our belief that the POC inside of the value area doesn’t hold much significance for trading; however – when the market has moved into a new value area period, and the previous POC has been left “un-tested” it becomes a “Virgin Point of Control” (VPOC).

VPOCs are extremely significant levels to the market. As price moves away from them over time the market has a memory for these levels that it will not forget. When the market finally starts to trend towards a VPOC (for example, price is above value for the period, and there is a VPOC above) the level will act as a magnet, pulling the market towards it. More often than not, once the market “tags” this level, it will reverse (note: in strong volume moves or extreme price shocks, it may bust through multiple VPOCs before reversing direction)



3) 80% Rule
Another trading rule from the pit traders, the 80% rule states that if price has been trading outside of the previous value area before that value area has been fully explored, and price then breaks into value, there is an 80% chance that price will continue to the other side of value. This works in both directions, bullish and bearish. This script will highlight when the market has triggered an 80% Rule.



4) Venom Lines
Venom lines are pivot levels of support and resistance based on the calculated value areas. These are reference levels for how extreme the market’s move away from value is in the current period and often mark significant but somewhat weak levels of support and resistance. They are especially useful identifying price targets for stocks making new all time highs.

5) Expected High Volatility
Many traders monitor when price has been consolidating (with low volatility) for an extended period of time. This kind of price action makes abnormally “skinny” Value Areas which indicate that the market is primed for a large move (in any direction) during the following period. This script identifies periods of high volatility expected both in the current period or in the next period as its value area is established.



Setup and Preferences:

Be sure to have your TradingView charts set to “Scale price chart only,” otherwise the chart will try to fit all of the VPOCs and Venoms in your field of view when only the closest levels to current price action are really important.



* Be sure to read through any release notes as they may contain updates to the options depicted.

2월 19일

릴리즈 노트

Release v 1.1.0

• Change: Developing value areas will now only show up once we are 2/3rds of the way through current period.
  
• Improvement: Reduced complexity for loading and calculating the data.
  
• Improvement: Corrected text coloring for those with dark backgrounds.
  
• Improvement: High Volatility Expected labels are more specific about when.
  
• Bug fix: Now maintains the same value area calculations across different aggregates.
  
• Bug fix: Corrected daily value areas for futures contracts
  
• Bug fix: Real-time calculations now more in line with historical calculations.
  
• Early Beta: Descriptive alerts. Create an alert using the MarketWebs as your condition source. Select "Any alert() function call" and the system will alert you on "80% Rule" triggers, VPOC tags, and when price closes outside of value.
  

3월 3일

릴리즈 노트

Release v1.2.0

• New: Multi-Timeframe Analysis labels in upper right corner of chart. Can enable/disable in preferences.
  
• New: Able to see the MarketWebs across additional aggregation periods (ex: Daily webs on 1hr bars)
  
• Requirement: Weekly value areas require extended hours to be turned on to show. In the future it may be possible to change this, but I am unable to reliably keep the correct levels without EXT turned on.
  
• Fix: Developing value areas were missing on weekends and should be fixed now.
  
• Fix: Edge case inconsistencies in the value area levels across different bar aggregations should be fixed now.
  
• Fix: The daily value areas now should extend over the weekends to maintain visual consistency.
  
• Fix: Label colors are more responsive now to the chart backgound (ex: will turn white if you use dark backgrounds)
  

3월 9일

릴리즈 노트

Release v1.2.1

• Fixed: Incorrect calculation of value areas caused by candles with 0 range. Particularly important for Weekly Value Areas where extended hours trading is spotty.
  
• Fixed: Auto working for daily webs (so now works for 10m, 15m, etc).
  
• Improvements: General speed improvements, will be constantly worked on.
  

3월 10일

릴리즈 노트

Release v1.2.2 (**Important fix to 1.2.1**)

• Fixed: Bugs related to Weekly value areas and lower time frame calculations introduced by speed optimizations. If you are using 1.2.1, please take a moment to upgrade.
  
• New: Allowing Daily and Weekly value areas on Daily and Weekly candlesticks. *Warning: They will not necessarily match what is seen on intraday charting, so this is disabled by default, however you can choose to enable this in the settings.
  

3월 17일

릴리즈 노트

Release v1.3.0

• New: Visualization options added to shorten price labels
  
• New: Visualization options added to color price above value
  
• Updates: Ongoing optimizations in calculations and speed.
  
• Changed: Default visualization settings (tagged VPOCs now will be faded and without date labels -- will continue to modify these as I see users posting charts. I'm aiming for the defaults to be the "most common" settings.
  
• Fixed: Bugs related to Auto mode not working on some bar aggregates.
  
• Fixed: Visualization preferences not being honored.
  
• Fixed: 80% Rules for lower timeframes weren't calculating appropriately.
  

5월 25일

릴리즈 노트

Release v1.4.0

• New: Ability to set the color and thickness of the Value Area High, Point of Control, and Value Area Low lines.
  
• New: Option to display only the current upside and downside VPOCs.
  
• New: Change the font size of the labels.
  
• New: Added Venom labels for the levels above and below the price action.
  
• Change: Settings Layout redesigned to match most common use cases.
  
• Change: Changed default VPOC colors to be more neutral.
  
• Change: Changed default to draw box around value areas.
  
• Improvement: Increased calculation speed.
  
• Fixes: Fixed restriction for lower timeframe viewing, must enable in "General Settings" options.
  

6월 1일

릴리즈 노트

Release v1.4.5

• New: Will switch to next value area period as soon as it can, even over weekends.
  
• Fixed: Turning off venom lines would cause the value areas to disappear as well.
  
• Fixed: Calculation of value areas in higher timeframes would sometimes be off.
  
• Fixed: The switchover for months in crypto names was happening too early.
  
• Improvement: Redesigned how profiles are drawn to keep them from getting truncated on bar gaps.
  
• Improvement: Added additional math to make lower timeframe value areas (ex: Weekly value areas on a Daily candlestick chart) capture some of the extended hours moves.
  
• Improvement: Speed.
  

6월 8일

릴리즈 노트

Release v1.4.6

• New: Ability to control labels for the venom lines separately (enabled by default).
  
• Fixed: When the value area shifts over the weekend, the venoms didn't shift with it.
  

9월 8일

릴리즈 노트

Release v1.5.0

• New: Ability to use the status labels by themselves.
  
• New: Turn on/off "High Volatility Expected" Text
  
• New: Change the color of "High Volatility Expected" highlight.
  
• New: Added identification of price in relation to venom support/resistance to the indicator table (upper right corner of chart)
  
• Fixed: In some cases, an exact VPOC tag (to the tick) would not register as a tag to the script.
  
• Fixed: Futures on other timeframes obeys back-adjustment choice.
  
• Fixed: < 5min timeframes do not show the Daily webs.
  
• Fixed: Lower Timeframes were not working.