MBoxHistogram

2023년 5월 29일

* MBoxHistogram Indicator *

The MBoxHistogram Indicator shows the Buying / Selling that is happening in the market as Buying and Selling BLOCKS. When viewing the Buying / Selling as BLOCKS of BOXES, this gives a very powerful reading of the actual Order Flow, rather than if you read the Buying / Selling just bar by bar. It it far more effective to read Buying / Selling as BLOCKS of BOXES, because this groups the Buying / Selling together and is much more indicative of where the market will move.

You can think about it this way. A single candle bar is like one person. Several candles is like a group of people. A group of people is more powerful than a single person, just like BUYING / SELLING grouped together is much more powerful than looking at one bar of buying or selling. The Algorithm to determine these Buying / Selling Blocks is powered by the very powerful *MBox Precision Delta* Algorithm.

* WHAT THE SCRIPT DOES *

The script draws boxes that can be either positive or negative. Boxes above the zero line mean that there was more Buying. Boxes Below the zero line mean that there was more selling. The more positive Boxes are drawn, the more BUYERS are flooding the market. The more negative Boxes are drawn, the more SELLERS are flooding the market.

* HOW TO USE IT *

The color of the Box indicates the direction price moved. If the Box is above zero it means there is more buying. If the Box is below zero it means there is more selling


# Normal Behavior:

Blue Box above 0 = Price moved up and there was more buying
Red Box below 0 = Price moved down and there was more selling


# Imbalance Behavior:

Imbalance mean that the buying or selling and the direction that price moved does not match.

Blue Box below 0 = Price moved up but there was more selling (Sell Imbalance)
Red Box above 0 = Price moved down but there was more buying (Buy Imbalance)


Imbalances show market manipulation, hidden buying / selling, accumulation / distribution
Imbalances can also make good trade entry points if there is confluence shown by the other indicators as well


# Special Features

Sometimes the box will not be a perfect square box shapre. These cases are explained below

For an Up Box
If the box begins negative and finishes positive, you will see the start of the box being negative. This shows that the buying overcame the initial selling.
If the box ends smaller than the maximum it grew, this shows that the box ended with buying weakening

For a Down Box
If the box begins positive and finishes negative, you will see the start of the box being positive. This shows that the selling overcame the initial buying.
If the box ends smaller than the maximum it grew, this shows that the box ended with selling weakening



* EXAMPLE AND USE CASES *

- Accumulation Example -

When you see a large amount of Blue Boxes above zero and price moving up, this is indicative of Accumulation and you would be looking for PULLBACKS to get into the up move.

- Distribution Example -

When you see a large amount of Red Boxes below zero and price moving down, this is indicative of Distribution and you would be looking for pullbacks to get into the down move.

- Buying EXHAUSTION Divergence -

As price makes higher highs, but the Boxes drop (become less positive) in size on the higher highs, it means BUYERS are exhausted. Potentially a reversal or change in behavior in the markets.

- Selling EXHAUSTION Divergence -

As price makes lower lows, but the Boxes become smaller (becomes less negative) on the lower lows, it means SELLERS are exhausted. Potentially a reversal or change in behavior in the markets.

- BUYING EFFORT / NO RESULT -

If the Blue Boxes increase positively, but price fails to make higher highs, it is a sign of EFFORT / NO RESULT on behalf of the Buyers. In this case Buyers are pushing hard to move price up, but are unable to, due to being OVERBOUGHT. If this is accompanied by visible SELLING, it would be a good short entry.

- SELLING EFFORT / NO RESULT -

If the Red Boxes increase negatively, but price fails to make lower lows, it is a sign of EFFORT / NO RESULT on behalf of the Sellers. In this case Sellers are pushing hard to move price down, but are unable to, due to being OVERSOLD. If this is accompanied by visible BUYING, it would be a good long entry.




* AUTHOR *
This script is published by MBoxWave LLC