L.A. Little, who wrote two books on trend trading, explained a key timing concept called anchor zones which was used, within his trading system, to enter and exit the market at appropriate times.
Anchor zones are formed from anchor bars. An anchor bar is a bar that has one or more of these components: wide range, high volume or gaps. For this script we're going to require two or more of the components. When an anchor bar forms, we'll note the high and low of the bar and draw a zone across time as prices develops. For this script, we'll also note the open and close of the candle to hint at other levels of support or resistance. The boundaries of these zones can act as support or resistance, but they also mark out the areas where price can often get trapped.
A breakout from these zones on high volume can suggest the beginning of a new trend. In general, anchor zones are a good compliment to price action strategies. For more information on how to use these, refer to L.A. Little's books.
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Suggestions or Questions?
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Thank you very much, good one to check support and resistance levels. Is there anyway to change chart time frame into higher timeframes or multi time frames. waiting for urs reply... thank you sir
player0067
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Thankyou sir, For me it is very useful one. Is it possible to make this indicater as screener for indian markets(NSE : NIFTY 500)👍👍👍