Cave Diving 3 Lines System

🤿 Cave Diving Dashboard - A Deep Dive into Market Structure

## The Cave Diving Analogy

Imagine you're a cave diver exploring underwater caverns. As you descend deeper, you encounter different layers of the cave system:

- **The Surface (Internal Levels)** - Where you currently are, constantly shifting with each breath
- **The First Chamber (De Novo Levels)** - Your last known safe position, recently established
- **Deep Caverns (External Levels)** - Ancient, untouched chambers deeper in the system

Just as a cave diver must constantly monitor their position relative to these reference points, traders must track price action against key structural levels.

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## 🎯 Understanding the Three-Tiered System

### 📍 **INTERNAL LEVELS** (Current 15m Candle)
*Your real-time position in the market*

**Internal High** 🟡 - The highest point reached in the current unfinished 15-minute candle
**Internal Low** 🟢 - The lowest point reached in the current unfinished 15-minute candle

**Think of these as:**
- Your current depth while actively diving
- They update continuously as price moves
- Status shows "Updating" when actively changing, "Intact" when stable
- These are NOT trade levels—they're awareness zones

**Key Insight:** When Internal Low drops below De Novo Low, you're in **Situation A** (bearish pressure building)—the indicator highlights this with red coloring.

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### 🎯 **DE NOVO LEVELS** (Previous Closed 15m Candle)
*Your most recent confirmed safe zone*

**De Novo High** 🔵 - The high of the last completed 15-minute candle
**De Novo Low** 🟣 - The low of the last completed 15-minute candle

**Etymology:** "De Novo" = Latin for "from new" or "anew"—these are freshly established reference points

**Think of these as:**
- The last solid ground you stood on
- Your most recent confirmed position
- The bridge between where you are (Internal) and where you've been (External)

**Status Tracking:**
- **⬆️ Upgrade** - Level moved favorably (Higher high for resistance, Higher low for support)
- **⬇️ Downgrade** - Level moved unfavorably (Lower high, Lower low)
- **＝ Same** - No structural change from previous candle

**Trading Significance:**
- Primary reference points for intraday structure
- Breaking De Novo levels often signals directional commitment
- Can merge with External Level 1 when they align (shown as "DN🟰Ext1")

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### ⛽🤿 **EXTERNAL LEVELS** (Unmitigated Historical 15m Levels)
*Deep liquidity pools waiting to be discovered*

**External High 1 & 2** 🟢🔵 - The two most recent unmitigated 15m highs
**External Low 1 & 2** 🟠🌸 - The two most recent unmitigated 15m lows

**Think of these as:**
- Untouched chambers in the cave system
- Liquidity pools that smart money is targeting
- Levels that "remember" and attract price

**What Makes a Level "Unmitigated"?**
- **Highs**: Price has NOT yet traded through them (broken above)
- **Lows**: Price has NOT yet swept them (broken below)
- Once touched, they're "mitigated" and removed from tracking
- The indicator automatically maintains the two most recent unmitigated levels

**Why "External"?**
They exist outside your current candle structure—historical reference points that institutions use for:
- Stop loss placement
- Profit taking targets
- Liquidity hunting zones

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## 🎨 Color Coding System

### HIGHS (Resistance/Targets) - Cool Colors
- 🔵 **Ext High 2** - Light Blue (Distant target)
- 🟢 **Ext High 1** - Lime Green (Primary target)
- 🔵 **De Novo High** - Cyan (Recent resistance)
- 🟡 **Internal High** - Lemon Yellow (Current ceiling)

### LOWS (Support/Stops) - Warm Colors
- 🟢 **Internal Low** - Lime (Current floor)
- 🟣 **De Novo Low** - Purple (Recent support)
- 🟠 **Ext Low 1** - Orange-Red (Primary stop zone)
- 🌸 **Ext Low 2** - Pink (Distant support)

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## 📊 Dashboard Breakdown

### The Table Shows:
1. **Level** - Which level you're tracking
2. **Price** - Exact price of the level
3. **Pts** - Distance from current price (+ above, - below)
4. **Status** - Current state or role of the level

### Special Features:
- **⏰ Countdown Timer** - Shows time remaining until next 15m candle close (next De Novo update)
- **⚠️ Proximity Alerts** - Bottom row warns when within threshold distance of key levels (default: 25 points, adjustable)

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## 🎯 Trading Applications

### **For Buyers (Going Long):**
- **Entry Zone**: Between De Novo Low and Ext Low 1
- **Stops**: Below Ext Low 1 (or Ext Low 2 for wider stops)
- **Targets**: De Novo High → Ext High 1 → Ext High 2
- **Confirmation**: Internal Low holds above De Novo Low

### **For Sellers (Going Short):**
- **Entry Zone**: Between De Novo High and Ext High 1
- **Stops**: Above Ext High 1 (or Ext High 2 for wider stops)
- **Targets**: De Novo Low → Ext Low 1 → Ext Low 2
- **Warning**: Watch for Situation A (Internal Low < De Novo Low)

### **Risk Management:**
- **DN🟰Ext1** status means De Novo = External 1 (tighter range, use caution)
- Proximity alerts help you avoid chasing price into resistance/support
- "Updating" status on Internal levels = active volatility
- "Upgrade/Downgrade" signals = structural shift in progress

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## ⚙️ Customization Options

### Lookback Period
- Default: 500 candles (searches 125 hours of 15m data)
- Increase for more historical External levels
- Decrease for focus on recent structure

### Proximity Threshold
- Default: 25 points
- Set based on your instrument's average range
- Lower = tighter alerts (for scalping)
- Higher = strategic warnings (for swing trading)

### Visual Customization
- Line thickness (1-5)
- Line style (Solid/Dashed/Dotted)
- All colors fully customizable
- Show/hide lines independently

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## 🧭 The Cave Diving Mindset

**Never dive deeper than you can safely return from.**

In trading terms:
- Know your Internal position (real-time awareness)
- Respect your De Novo levels (recent structure)
- Hunt for External liquidity (where the targets are)
- Always have an exit plan (stops below Ext Lows, above Ext Highs)

The market, like a cave, has structure. This indicator illuminates that structure across three timeframes of reference, helping you navigate with precision rather than guessing in the dark.

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## 🎓 Key Takeaways

1. **Internal** = Real-time, unfinished, awareness only
2. **De Novo** = Just confirmed, primary reference, updates every 15m
3. **External** = Historical, unmitigated, high-probability targets/stops
4. **Upgrades/Downgrades** = Trend signals
5. **DN🟰Ext1** = Structural alignment (tighter range)
6. **Situation A** = Bearish warning (Internal < De Novo Low)

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## 📝 Credits

*"In cave diving, you plan your dive and dive your plan. In trading, you plan your levels and trade your levels."*

**Indicator:** Cave Diving Dashboard - Part 1: Price Levels
**Timeframe:** Optimized for 15-minute structure on any chart timeframe
**Philosophy:** Structure first, price second. Know where you are, where you've been, and where the liquidity waits.

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Happy Diving! 🤿📈