Modified TradingView's Up/Down Volume [vnhilton]
When plotting columns, histograms, etc. You'll notice that the indicator does not stick to the bottom of the pane. To fix this, you need another indicator (we'll call this 'placeholder') in the same pane as this indicator. Pin the placeholder indicator to the left scale, & pin the main indicator to the left scale. Then, pin the placeholder indicator to scale A, & finally the main indictor to the right scale.
Note: On the daily timeframes & higher, the up/down volume isn't accurate. Therefore, I've added a feature where you can toggle on the main indicator to disappear & only show ordinary total volume similar to the TradingView volume indicator.
The original code belongs to TradingView. This is a modified indicator that displays the down volume above the up volume similar to the volume profile. Also includes a moving average using the total volume, & a feature to display ordinary volume to solve the up/down inaccuracies on the daily timeframe & higher.
스크립트에서 "volume profile"에 대해 찾기
VPLineVPLine is a brand-new line indicator which automatically draws historical POC line with volume profile histograms based on user input session and configurations.
A colossal amount of function is deployed on the indicator: historical POC line, historical VA, historical VA high/low, volume profile histograms, volume profile value text (bid/ask/total), threshold function that limits the extension of the POC line based on user input etc.
Volume CompressorTurns volume into a more informative representation, ready to be further analyzed
...
Rationale
Volume
Back in the "before the quant" days I was a big fan of market & volume profile. Thing is J. Steidlmayer had lotta different ideas & works aside of profiling, it's just most of them ain't got to mainstream, one of them was "Hot / Cold volume" (yes, you can't really google it). From my interpretation, the idea was that in a given asset there is a usual constant volume that stays there no matter what, and if it ever changes it changes very slow and gradually; and there's another kind of, so to say, 'active' volume that actually influences price dynamics and very volatile by its nature. So I've met concept lately, and decided to quantify & model it one day when I'll have an idea how. That day was yesterday.
Compression
When we do music we always use different kinds of filters (low-pass, high pass, etc) for equalization and filtering itself. That stuff we use in finance as well. What we also always use in music are compressors, there dynamic processors that automatically adjust volume so it will be more consistent. Almost all the cool music you hear is compressed (both individual instruments (especially vocals) and the whole track afterwards), otherwise stuff will be too quite and too weak to flex on it, and also DJing it would be a nightmare. I am a big adept of loudness war. So I was like, how can I use compression in finance, when ima get an idea? That day was yesterday as well.
Volume structure
Being inspired by Steidlmayer's idea, I decided to distinguish volume this way:
1) Passive / static volume. The ~ volume that's always there no matter what (hedges, arbitrages, spread legs, portfolio parts etc etc), doesn't affect things;
2) Active / dynamic volume. The volume that flows from one asset to another, really matters and affects things;
3) Excess volume. The last portion of number 2 volume, that doesn't represent any powerful value to affect things.
Now it's clear that we can get rid of number 1 and number 3, the components that don't really matter, and concentrate on number 2 in order to improve information gain, both for ourselves and for the models we feed this data. How?
Model
I don't wanna explain it all in statistical / DSP way for once.
First of all, I think the population of volumes is log-normally distributed, so let's take logs of volumes, now we have a ~ normally distributed data. We take linearly weighted mean, add and subtract linearly weighted standard deviation from it, these would be our thresholds, the borders between different kinds of volumes explained before.
The upper threshold is for downward compression, that will not let volume pass it higher.
The lower threshold is for upward compression, all the volumes lower than this threshold will be brought up to the threshold's level.
Then we apply multipliers to the thresholds in order to adjust em and find the sweet spots. We do it the same way as in sound engineering when we don't aim for overcompression, we adjust the thresholds until they start to touch the signal and all good.
Afterwards, we delete all the number 1 and number 3 volume, leaving us exclusively with the clear main component, ready to be processed further.
We return the volumes to dem real scale.
About the parameters, based on testing I don't recommend changing the thresholds from dem default values, first of all they make sense statistically and second they work as intended.
Window length can and should be adjusted, find your own way, or leave the default value. ML (moving location) length is up to you as well.
So yeah, you can see now we can smooth the data and make it visually appealing not only by applying a smooth filter over it.
All good TV?
Volume Footprint [LuxAlgo]This indicator estimates a volume footprint using tick data. The script automatically separates a candle into equidistant intervals with a width obtained from the average true range or a user-given width.
Settings
Method: Interval width calculation method. This ultimately determines the number of intervals separating one candle.
Width (At the right of Method): Atr period or user given width depending on the selected method. A lower user-given width would divide a candle into a higher number of intervals.
As Percent: Returns the accumulated volume within each interval as a percentage of the total candle volume.
Style
Display Type: Determines the appearance of the returned volume footprint.
Trend Color: Color to use based on whether a candle is bullish or bearish.
Usage
When applied to a chart, the user will be asked to select the settings to use for the volume footprint. Note that changing the settings afterward will reset the volume footprint, removing previously generated footprints.
A new footprint will appear on the confirmation of a new bar, as such this version might only be useful in lower timeframes.
A volume footprint allows users to see the number of contracts exchanged within a candle interval. It can as such be seen as some kind of intrabar volume profile.
This can be useful to see areas of interest within a candle.
Different Appearance
By default, the volume footprint makes use of colored boxes with a color based on whether the candle was bullish or bearish.
Another appearance that gives additional information is the gradient type, which uses intervals color based on the number of contracts exchanged within an interval relative to the total volume of the candle. A higher number of contracts within an interval would return a darker color by default.
The regular display type makes use of boxes with a single color, with lines on the side indicating whether the candle was bullish or bearish.
Relative Volume - VPA / VSA / Better VolumeVolume is important.
Volume is VERY important.
But all the existing methods of volume analysis and order flow analysis fall into the same trap: they're all extremely complicated, hard to learn, and difficult for the human brain to distill down to an actual, tradable signal.
The Relative Volume Gradient Paintbars indicator seeks to address this issue by reducing and simplifying concepts from Volume Price Analaysis (VPA), Volume Spread Analysis (VSA), and Market Profile / Volume Profile into a single indication with varying levels of intensity. Rather than adding more complex symbology and cluttering up your charts with arrows and signals and lines as many volume indicators do, relative volume intuitively takes advantage of the dimension of color, and plays to your brain's automatic recognition of color intensity to highlight areas of interest on a chart where large volumes are being traded. These areas can in turn point out levels of support and resistance, or show strength in a move, exposing the actions of larger market participants that are behind a move.
The Relative Volume indicator can calculate based on a time-segmented / time-based / bar-specific average of volume, adjusting for some of the typical spikes in volume that happen at the beginning and end of a trading day; Or it can be calculated based on any length and type of moving average of volume that is desired: simple, exponential, weighted, Wilders, price-weighted, Hull, or TEMA.
This indicator does more than just normal relative share volume. It can also do relative volume-per-range. The idea behind this setting is that when more volume is being traded but very little movement is happening, this can indicate substantial support or resistance, where a lot of trades are likely being absorbed by larger operators. You can choose your own range calculation for this setting, whether you prefer True Range, high-low range, candle body range, close to close range, or any of several other custom settings.
Moreover, the levels or thresholds at which the color intensity changes are completely user-controlled, so you can adjust them upward to tune out more noise, or downward to increase the level of sensitivity. In addition, all of the colors for each of the thresholds are completely user-controlled.
We hope to see TradingView add support for Richard Arms' CandleVolume or Equivolume before too long, as well as Tick Volume or Trade Count Volume data, all of which can add a lot of power to this method of trading.
Ultimate Pattern Match FinderUltimate Pattern Match Finder - Introduction 🎯
Your Ultimate Pattern Match Finder is a sophisticated technical analysis indicator that identifies historical price patterns similar to the current market structure and projects potential future price movement based on those matches. 📊✨
Professional-Grade Trading Intelligence 💼
This indicator represents an institutional-quality pattern recognition system designed for serious traders who demand statistical rigor and data-driven decision-making. The multi-layered correlation engine and advanced projection methodology deliver enterprise-level technical analysis directly to your trading platform, transforming raw historical data into actionable market intelligence with quantifiable confidence metrics. 📈⚡
Core Functionality 🔍
The indicator scans through historical price data (up to 7000 bars) looking for patterns that closely resemble the most recent price action. When it finds matching patterns, it overlays them on your current chart and projects what happened next in those historical instances—giving you a data-driven forecast of potential future price movement. 🎯📈
Key Features ⚡
Pattern Recognition Engine 🧠 - Uses three normalization methods (Percent-from-start, Returns, Z-Score) to compare price patterns regardless of their absolute price levels. This allows patterns from different price ranges to be compared effectively.
Correlation & Distance Controls 🎚️ - You can set minimum correlation thresholds (default 75%) and maximum distance thresholds to filter matches. Only high-quality matches that meet your criteria are displayed, preventing false signals. ✅
Trend Direction Filter (Same Condition) 📈📉 - The standout "⭐ SAME CONDITION" feature ensures matches share the same trend direction (UP/DOWN/SIDEWAYS) as your current pattern. This prevents comparing bullish setups to bearish ones, significantly improving forecast relevance.
Advanced Matching Options 🔬 - Includes volume weighting to prioritize matches with similar volume profiles and shape matching to compare trend slope and volatility patterns.
Highly Developed Projection System 🚀🔮 - The crown jewel of this indicator is its sophisticated multi-match projection engine. Instead of relying on a single historical match, it intelligently aggregates the top N matches (up to 10) to create statistical projections. The system displays matched historical candles as semi-transparent teal overlays 📊, then projects future candles in lime/orange colors 🟢🟠 based on what happened after those historical patterns. Each projected candle represents the averaged behavior of multiple high-correlation matches, providing robust, probability-weighted forecasts rather than single-instance predictions. You have full control over projection length (up to 100 bars) and transparency levels for both overlays and projections. 💎
Smart Alerts 🚨 - When no matches meet your thresholds, the indicator displays a "❌ NO MATCH FOUND" alert with suggestions for adjusting your settings, preventing you from acting on weak patterns. The alert even shows how many patterns were filtered out by the trend direction requirement. ⚠️
Rich Visual Feedback 🎨 - The indicator provides a detailed info table showing match quality, correlation percentage (with color-coded ratings), trend comparison with emojis (📈 UP, 📉 DOWN, ➡️ SIDEWAYS), and actionable quality ratings (Excellent 🔥, Very Good ✅, Good 👍, Fair ⚠️).
This tool transforms historical pattern analysis into actionable trading intelligence by showing you not just what patterns match, but what happened next with statistical confidence. 💪🎯
Special Thanks 🙏
A heartfelt thank you to TradingView for providing the powerful Pine Script framework and world-class charting platform that makes advanced indicators like this possible. Their commitment to empowering traders with professional tools and an innovative development environment continues to push the boundaries of what retail traders can achieve. 💙📊
©️ Created by abo0o - All Rights Reserved
📬 Get Access
DM me for access to the Ultimate Pattern Match Finder!
I'm happy to answer any questions you have about the indicator, setup, or optimization for your trading style. Whether you need guidance on parameter settings, strategy integration, or technical support—feel free to reach out! 😊✨
🟡 GOLD 4H HUD v8.9 — Loose ICT OB + Strong/Weak + FVG/HVN/LVNGOLD 4H HUD v8.9 is a clean, structured Smart Money Concepts (SMC)–based analysis tool designed exclusively for XAUUSD on the 4-hour timeframe.
It focuses on the three most important elements for institutional orderflow analysis:
✔ Loose ICT Order Blocks (Demand/Supply)
✔ Fair Value Gaps (FVG)
✔ Volume Profile Zones (HVN/LVN/POC)
The script builds a professional-style HUD that displays the key institutional regions and structural levels that matter most for gold traders.
📌 Key Features
1 — Market Structure Engine (HH/HL & BOS)
The indicator detects:
Minor swing Highs and Lows
Last confirmed HH / HL levels
Break of Structure (BOS) for directional bias
EMA-200 trend filter (UP / DOWN / NEUTRAL)
This gives traders a clean structural read without clutter or noise.
2 — Loose FVG Engine (Tolerance-Based ICT Gaps)
A soft-threshold FVG engine detects “loose” Fair Value Gaps using a 0.1% price tolerance.
This method ensures:
Fewer missed imbalances
Cleaner OB/FVG alignment
Higher accuracy on 4H gold displacement legs
FVGs automatically shift to the right side of the chart for clean visualization.
3 — Order Block Engine (Demand/Supply + Strong/Weak Classification)
A simplified ICT-style OB engine scans the past few candles whenever BOS is detected.
It identifies:
Demand OB during bullish BOS
Supply OB during bearish BOS
Strong OB if fully nested inside an active FVG
Weak OB otherwise
OB boxes include:
Clear color coding (strong vs. weak)
Price range labels inside each box
Automatic right-shift for visual clarity
4 — Volume Profile Engine (POC / HVN / LVN / VAH / VAL)
Based on a rolling window (default 120 bars), the script builds a lightweight volume distribution.
It displays:
POC (Point of Control)
HVN (High Volume Node)
LVN (Low Volume Node)
Value Area High / Low
HVN/LVN zones are shown as right-shifted colored boxes with price labels.
These zones help identify:
Institutional accumulation
Low-liquidity rejection points
Areas where price tends to react strongly
5 — Support / Resistance Mapping
The script automatically generates:
OB-based support/resistance
Swing-high/swing-low levels
HVN/LVN structural levels
These are displayed in the HUD for fast reference.
6 — Professional HUD Panel
A compact, easy-to-read HUD summarizes:
Trend direction
Latest HH/HL
OB ranges (Strong/Weak)
HVN/LVN price zones
POC
Multi-layer support & resistance
This turns the script into a fully functional analysis dashboard.
📌 What This Indicator Is NOT
To avoid misunderstanding:
It does not take entries or generate buy/sell signals
It does not auto-detect CHOCH, MSS, SMT, or sweeps
It is not a trading bot
This tool is designed as an institutional-style map and analysis HUD, not a strategy.
📌 Best Use Case
This indicator is ideal for traders who want to:
Read institutional structure on XAUUSD
Identify clean Demand/Supply zones
Visualize FVG/OB/HVN interactions
Track high-value liquidity levels
Build directional bias on 4H before dropping to execution timeframes
⚠ Important Note
This tool is designed exclusively for the 4H timeframe.
Using it on lower timeframes will display a warning.
QFA Volatility MeterQFA Volatility Meter
This is a technical indicator I built to measure market fear and identify potential bottom reversal setups in liquid ETFs and stocks. It combines multiple technical factors into a single scoring system. This is a new indicator with limited real-world testing so treat it as experimental.
What It Actually Does
The indicator calculates a fear index based on how far price has dropped from the highest close over the past 14 bars. It then applies zero lag EMA smoothing with a 5-period setting to reduce noise. The fear reading gets adjusted based on ATR percentile rank with the theory being that high volatility drops should register as more significant than low volatility drops.
On top of this base fear calculation, the indicator checks for five additional factors: momentum peaks where fear stops accelerating upward, RSI divergence using a 7-period RSI, support levels that have been tested multiple times in the past 50 bars, volume patterns including spikes and rejection wicks, and point of control using a 30-bar volume profile calculation. Each factor that triggers adds points to a score from 0 to 100.
The histogram bars change color based on whether fear is rising or falling. Red means fear is increasing, green means decreasing. Gold colors appear when the score crosses certain thresholds: bright gold for scores above 40, orange for scores above 30, pale gold for scores above 20. There is a table in the upper right showing the current score, raw fear level, volatility regime, and which components are active.
The Core Problem You Need To Know
This indicator has a fundamental lag issue that I have not yet solved. Because it measures price drops over a 14 bar lookback period, it is calculating what already happened rather than what is happening right now. During fast selloffs you will often see the fear level reading very low like 5 or 10 even though price is clearly crashing in real time. The reading catches up eventually but by then you have missed the entry by 10 to 20 bars.
I attempted to fix this with ATR normalization and faster smoothing but the lookback period remains the main bottleneck. The indicator works better at identifying areas where fear has already peaked and is starting to decline than at catching the exact moment of peak fear. This makes it more useful for confirmation than for timing entries.
What Works
The multi-component scoring system does a decent job of filtering out low quality setups. When you get a high score above 50 or 60 with multiple components firing like divergence plus support plus volume, those tend to be legitimate reversal zones worth paying attention to. The color coding is intuitive and easy to read at a glance. The real-time table helps you understand what is triggering without having to decode the chart.
The volume climax detection catches some extreme bottoms where you see three or more bars of increasing volume combined with panic selling. These can mark capitulation points. The multi-touch support logic does add value by distinguishing between random price levels and actual tested support zones.
The indicator handles changes in volatility reasonably well. During low volatility periods it lowers the threshold so you still get some signals. During high volatility it raises the threshold to filter noise. This dynamic adjustment is better than using a fixed threshold across all market conditions.
What Does Not Work
The lag issue means you will frequently see obvious selloffs where the indicator shows nothing. Fear level of 5 during a 3 percent drop is not useful information. This happens because the lookback window is too long and the smoothing further delays the reading.
The gold signals that are supposed to mark high conviction bottoms often do not trigger when you expect them to. Looking at recent price action you can point to clear bottoms where the indicator stayed gray or showed low scores. This is partly the lag and partly because the scoring system requires multiple components to align which does not always happen at actual bottoms.
The indicator has only been tested on 15 minute QQQ charts during a few weeks of data. I do not know how it performs on other timeframes, other instruments, or during different market regimes like strong trends versus ranges. It may work very differently on individual stocks versus ETFs or on 5 minute versus 1 hour charts.
There is no formal backtest data showing win rate, average gain, maximum drawdown, or any other performance metrics. The scoring thresholds and component weights were set based on visual inspection and intuition rather than systematic optimization. They might be completely wrong.
Real Risks If You Use This
If you trade based on gold signals alone you will get caught in falling knives. The indicator does not know the difference between a normal pullback in an uptrend versus a breakdown that keeps going. You need your own analysis of market structure, key levels, and trend direction.
The lag means you will often be late to entries. By the time a gold signal appears price may have already bounced 1 to 2 percent off the low. This eats into your risk reward ratio. You might be buying near resistance when you think you are buying near support.
False signals happen regularly especially during choppy sideways action. You will see early and building signals that never develop into actual reversals. If you take every signal you will get chopped up.
The indicator can give conflicting information where the histogram shows green bars indicating fear is falling but the score is still low. Or red bars with a high score. This happens because color tracks momentum direction while score tracks absolute conditions. It is confusing in real time.
The volume profile calculations reset every 30 bars so the POC level jumps around. This can cause the POC component to trigger at seemingly random times. The value area high and low have similar issues.
Honest Pros and Cons
Pros: Combines multiple factors instead of relying on one signal. Color coded for quick visual assessment. Shows component breakdown so you understand why score is high or low. Includes volatility regime context. Free and customizable. Works in TradingView.
Cons: Significant lag during fast moves. No proven track record or backtest results. Complex with many moving parts that can conflict. Requires additional analysis to use effectively. Will produce false signals and missed opportunities. Thresholds and weights are arbitrary. Only tested on limited data.
How Someone Might Actually Use This
If you wanted to use this indicator despite its limitations here is a realistic approach. Keep it on your chart as one input among several. When price drops to a logical support level that you have identified independently, check if the indicator is showing elevated fear and building score. If fear level is above 60 and score is above 30 and you like the price action, that adds a bit of confirmation to your setup.
Do not take trades based solely on gold signals. Do not expect it to call exact bottoms. Do not use it in isolation. Think of it like a momentum oscillator that has some additional context baked in. It might help you avoid buying when there is no fear which means no panic to fade. But it will not tell you when to buy with any precision.
You would need to set your stop losses based on price structure not based on the indicator. Manage position size appropriately because this tool does not reduce risk. Keep records of which signals worked and which failed so you can learn its actual behavior rather than what you hope it does.
Settings Guidance
The default threshold of 40 seems reasonable for 15 minute charts in normal volatility. Going lower will increase signals but also increase noise. Going higher will reduce signals and may cause you to miss opportunities. I do not have data to recommend optimal settings.
The smoothing period of 5 is a compromise between responsiveness and stability. Lower numbers like 3 will be jumpier. Higher numbers like 7 will be smoother but slower. Again no data on what works best.
You can disable components if you want simpler scoring. For example if you only care about divergence and support you can turn off volume and POC. This will make scores lower overall but more focused on specific patterns.
Development Status
This indicator was built in a few hours as an experiment. It has not gone through rigorous testing or optimization. There are known issues that need fixing particularly the lag problem. I may continue developing it or I may abandon it. No guarantees on updates or support.
The code is provided as is. If you modify it or break it that is on you. The calculations could have bugs I have not found. The logic might be flawed in ways I have not realized.
Bottom Line
This is an experimental multi-factor fear indicator with significant limitations including lag, untested performance, and complexity. It might provide some useful context when combined with solid price action analysis and risk management. It will not make you money by itself. It will produce false signals and miss real opportunities. Use it as supplementary information at best and do not rely on it for trading decisions without your own analysis. If you use it, track results carefully and be skeptical of what it tells you until you have proven to yourself that it adds value to your process.
cPOC 2 DayIt’s perfect for your 2-Day cPOC since:
It derives from volume distribution data.
It highlights market structure, value area, and composite volume behavior.
Traders searching for “cPOC,” “volume profile,” or “market profile” will find it here.
Use this if your indicator’s main function is showing POCs, VAH/VAL, or composite volume balance zones.
If your cPOC script is part of a broader system:
Trend Analysis — if it’s used for directional bias and context with VWAP/EMAs.
Support/Resistance — if the tool primarily highlights POC/VAH/VAL as static levels to trade from.
Other — only if your indicator mixes data from multiple frameworks (e.g., combines orderflow, delta, VWAP, and TPO).
Jitendra Volume Pro / Fixed RangeHello All,
This script calculates and shows Volume Profile for the fixed range. Recently we have box.new() feature in Pine Language and it's used in this script as an example. Thanks to Pine Team and Tradingview!..
Sell/Buy volumes are calculated approximately!.
Options:
"Number of Bars" : Number of the bars that volume profile will be calculated/shown
"Row Size" : Number of the Rows
"Value Area Volume %" : the percent for Value Area
and there are other options for coloring and POC line style
Enjoy!
Jitendra Sankpal
Bull Run Galaxy
2.11.2025
VPOC Harmonics - Liquidity-Weighted Price / Time RatiosVPOC Harmonics - Liquidity-Weighted Price / Time Ratios
Summary
This indicator transforms a swing’s price range, duration, and liquidity profile into a structured set of price-per-bar ratios. By anchoring two points and manually entering the swing’s VPOC (highest-volume price), it generates candidate compression values that unify price, time, and liquidity structure. These values can be applied to chart scaling, harmonic testing, and liquidity-aware market geometry.
________________________________________
Overview
Most swing analysis tools only consider price (ΔP) and time (N bars). This script goes further by incorporating the VPOC (Point of Control) — the price with the highest traded volume — directly into swing geometry.
• Anchors define the swing’s Low (L), High (H), and bar count (N).
• The user manually enters the VPOC (highest-volume price).
• The indicator then computes a suite of ratios that integrate range, duration, and liquidity placement.
The output is a table of liquidity-weighted price-per-bar candidates, designed for compression testing and harmonic analysis across swings and instruments.
________________________________________
How to Use
1. Select a Swing
- Place Anchor A and Anchor B to define the swing’s Low, High, and bar count.
2. Find the VPOC
- Apply TradingView’s Fixed Range Volume Profile tool over the same swing.
- Identify the Point of Control (POC) — the price level with the highest traded volume.
3. Enter the VPOC
- Manually input the POC into the indicator settings.
4. Review Outputs
- The table will display candidate ratios expressed mainly as price-per-bar values.
5. Apply in Practice
- Use the ratios as chart compression inputs or as benchmarks for testing harmonic alignments across swings.
________________________________________
Outputs
Swing & Inputs
• Bars (N): total bar count of the swing.
• Low (L): swing low price.
• High (H): swing high price.
• ΔP = H − L: price range.
• Mid = (L + H) ÷ 2: midpoint price.
• VPOC (V): user-entered highest-volume price.
• Base slope s0 = ΔP ÷ N: average change per bar.
• π-adjusted slope sπ = (π × ΔP) ÷ (2 × N): slope adjusted for half-cycle arc geometry.
________________________________________
VPOC Harmony Ratios (L, H, V, N)
• λ = (V − L) ÷ ΔP: normalized VPOC position within the range.
• R = (V − L) ÷ (H − V): symmetry ratio comparing lower vs. upper segment.
• s1 = (V − L) ÷ N: slope from Low → VPOC.
• s2 = (H − V) ÷ N: slope from VPOC → High.
________________________________________
Blended Means (s1, s2)
These combine the two segment slopes in different ways:
• HM(s1,s2) = 2 ÷ (1/s1 + 1/s2): Harmonic mean, emphasizes the smaller slope.
• GM(s1,s2) = sqrt(s1 × s2): Geometric mean, balances both slopes proportionally.
• RMS(s1,s2) = sqrt((s1² + s2²) ÷ 2): Root-mean-square, emphasizes the larger slope.
• L2 = sqrt(s1² + s2²): Euclidean norm, the vector length of both slopes combined.
________________________________________
Slope Blends
• Quadratic weighting: s_quad = s0 × ((V−L)² + (H−V)²) ÷ (ΔP²)
• Tilted slope: s_tilt = s0 × (0.5 + λ)
• Entropy-scaled slope: s_ent = s0 × H2(λ), with H2(λ) = −
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Curvature & Liquidity Extensions
• π-arc × λ: s_arc = sπ × λ
• Liquidity-π: s_piV = sπ × (V ÷ Mid)
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Scale-Normalized Families
With k = sqrt(H ÷ L):
• k (scale factor) = sqrt(H ÷ L)
• s_comp = s0 ÷ k: compressed slope candidate
• s_exp = s0 × k: expanded slope candidate
• Exponentiated blends:
- s_kλ = s0 × k^(2λ−1)
- s_φλ = s0 × φ^(2λ−1), with φ = golden ratio ≈ 1.618
- s_√2λ = s0 × (√2)^(2λ−1)
________________________________________
Practical Application
All formulas generate liquidity-weighted price-per-bar ratios that integrate range, time, and VPOC placement.
These values are designed for:
• Chart compression settings
• Testing harmonic alignments across swings
• Liquidity-aware scaling experiments
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Supply & Demand Pro [Institutional]🎯 Overview
The most comprehensive Supply & Demand indicator on TradingView, designed for serious traders and prop firm professionals. Unlike traditional S&D indicators that just draw pretty zones, this system tracks actual performance metrics, provides entry/exit signals, and includes professional risk management tools.
❓ Why This Indicator?
After extensive research into what traders actually need (not just want), this indicator addresses the TOP complaints about Supply & Demand trading:
- ❌ "I don't know which zones to trust" → ✅ Each zone shows historical win rate
- ❌ "No clear entry/exit rules" → ✅ Multiple entry methods with visual R:R
- ❌ "Can't backtest effectiveness" → ✅ Full performance tracking
- ❌ "Too many false signals" → ✅ Quality filters and volume validation
🚀 Key Features
🎯 Professional Zone Detection
- Volume Profile Analysis (finds institutional accumulation/distribution)
- Swing Point Detection (classic pivot-based zones)
- Order Flow Analysis (coming in v2)
- Hybrid Mode (combines multiple methods)
📊 Performance Analytics
- Individual zone win rates
- Daily P&L tracking
- Account balance simulation
- Success/failure ratio for each zone
- Historical performance data
💼 Prop Firm Tools
- Daily loss limits (auto-stops trading)
- Position sizing controls
- Maximum concurrent positions
- Daily profit targets
- Clean reporting for evaluations
🎨 Entry & Risk Management
- Zone Edge entry (immediate)
- 50% Retracement entry (patient)
- Momentum Confirmation entry
- Visual Risk:Reward boxes
- Multiple stop loss methods (ATR, Fixed %, Zone-based)
📈 Advanced Features
- Auto-removes failed zones
- Volume confirmation requirements
- Strength-based zone ranking
- Smart alerts for high-probability setups
- Multi-timeframe compatibility
📋 How It Works
1. Zone Creation: Continuously scans for high-quality supply/demand zones using your selected method
2. Quality Filtering: Each zone must pass strength, volume, and historical performance filters
3. Visual Feedback: Zones display strength %, test count, and win rate directly on chart
4. Trade Signals: When price touches a zone, the system calculates entry, stop, and target
5. Performance Tracking: Every zone touch is tracked to build historical win rates
⚙️ Quick Settings Guide
For Beginners:
- Detection Method: "Swing Points"
- Min Zone Strength: 15%
- Risk:Reward: 2:1
- Entry Method: "Zone Edge"
For Advanced Traders:
- Detection Method: "Volume Profile"
- Min Zone Strength: 20%
- Min Win Rate: 50%
- Entry Method: "Momentum Confirm"
For Prop Firm Traders:
- Enable all Prop Firm Tools
- Set Daily Loss Limit to your drawdown rules
- Max Positions: 2-3
- Use "Professional" theme for screenshots
📊 What Makes This Different?
Traditional S&D Indicators:
- Draw zones based on one method
- No performance tracking
- No entry/exit rules
- Can't verify effectiveness
Supply & Demand Pro:
- Multiple detection methods
- Tracks win rate for EVERY zone
- Clear entry/exit signals
- Full backtesting capability
- Risk management built-in
🎓 Best Practices
1. Start Conservative: Use higher strength requirements (20%+) until familiar
2. Trust the Data: Zones with 3+ tests and 60%+ win rate are golden
3. Respect Risk Limits: The daily loss limit feature will save your account
4. Volume Matters: Zones with volume confirmation are significantly stronger
5. Be Patient: Wait for high-probability setups (check the win rate!)
🔔 Alert Options
- Zone Touch Alerts (with strength & win rate)
- High Probability Setups (60%+ win rate zones)
- Daily Limit Warnings
- Risk Management Alerts
💡 Pro Tips
- Combine with market structure for best results
- Higher timeframe zones are more reliable
- Watch for zones that align with round numbers
- Use partial profits feature to lock in gains
- Review daily performance to improve
🐛 Troubleshooting
- No zones appearing? → Lower Min Zone Strength to 10%
- Too many zones? → Increase strength requirement or enable filters
- Win rates not updating? → Zones need multiple tests to calculate
⚡ Performance Note
This indicator uses advanced calculations and may take a moment to load on lower-end devices. The comprehensive analytics are worth the wait!
🎁 Bonus Features
- 4 Professional themes
- Customizable dashboard
- R:R visualization
- Zone strength ranking
- Session-based filtering (coming soon)
📧 Support & Updates
This is an actively maintained indicator. Updates include:
- New detection methods
- Enhanced analytics
- Community-requested features
- Performance optimizations
⭐ If you find this indicator helpful, please leave a rating and comment with your results!
📌 Remember: No indicator is perfect. Always use proper risk management and never risk more than you can afford to lose.
Pro Reversal Strategie - FinalCore Functionality Description
The "Pro Reversal Strategy" script is a comprehensive and highly customizable trading system for TradingView. Its core idea is based on a mean-reversion strategy, which aims to capitalize on price extremes where the price is likely to revert to its statistical mean. This script ist full AI generated. There ist no support and no financial advice.
To identify entry points, the script combines classic indicators like the RSI (to detect overbought and oversold conditions) and Bollinger Bands (to measure volatility extremes).
However, the script's strength lies in its confluence logic: a simple RSI or Bollinger Band signal is not enough to trigger a trade. Instead, a series of filters are applied to enhance the quality of the trade signals. These include:
Trend Filter: Trades are only taken in the direction of the higher-level trend (defined by a 200-period Moving Average).
Volatility and Volume Filter: ADX and volume analysis ensure that the market has sufficient momentum for a move.
Market Structure Analysis: Concepts like Fair Value Gaps (FVG), liquidity zones, and the Volume Profile (VRVP/POC) are used to place trades in high-probability zones.
Momentum Filter: Special "Vector Candles" confirm the strength of buyers or sellers at the moment of the signal.
Furthermore, the script offers advanced features for risk and trade management, including automatic position sizing based on a percentage risk and dynamic exit strategies like a breakeven stop and a trailing stop-loss (Chandelier ATR).
A detailed info panel visualizes all key metrics in real-time directly on the chart. Thanks to its versatile configuration options, the script can be adapted for various trading styles, including swing trading, day trading, and scalping.
Core Strategies & Filters (English)
Here is a breakdown of the specific strategies and confirmation filters used within the script:
RSI Mean Reversion: Uses the Relative Strength Index (RSI) to identify overbought (> rsiSellShort) and oversold (< rsiBuyLong) conditions, which serve as the primary trigger for a potential price reversal.
Bollinger Bands (BB) Volatility Filter: Trades are confirmed when the price touches or exceeds the outer Bollinger Bands. This indicates a move to a statistical extreme in terms of volatility, reinforcing the reversal thesis.
Trend Filter (200 SMA): Ensures that long trades are only considered in a general uptrend (price > SMA 200) and short trades in a downtrend (price < SMA 200), preventing trades against the dominant market direction.
ADX Trend Strength Filter: Utilizes the Average Directional Index (ADX) to confirm that a market is trending with sufficient strength. Trades are filtered out during weak or non-trending phases (adx < adxThreshold).
Volume Profile (VRVP / POC): Analyzes volume at specific price levels to identify high-volume nodes (Point of Control - POC). This acts as a filter to avoid entering trades directly into a zone of strong support or resistance.
Vector Candle Filter: Identifies "Vector Candles" – large, high-volume candles that close strongly near their high (bullish) or low (bearish). This custom filter confirms strong conviction behind the initial reversal signal.
Market Structure (FVG & Liquidity): Incorporates advanced price action concepts. It looks for entries after a liquidity zone above a previous high/low has been tapped (Liquidity Grab) or when price enters a Fair Value Gap (FVG), adding a layer of institutional trading logic.
Chart Pattern Recognition: Optionally identifies classic chart patterns like "W-Patterns" (Double Bottom), "M-Patterns" (Double Top), and Ascending Triangles to provide additional visual confirmation for traders.
Position Sizing (Risk %): Automatically calculates the trade size based on a user-defined percentage of the total equity (riskPct) and the distance to the stop-loss, ensuring consistent risk management for every trade.
Dynamic Exit Management: Implements advanced exit strategies beyond a fixed take-profit. This includes moving the stop-loss to Breakeven after a certain risk-to-reward ratio is met and using a Trailing Stop-Loss (e.g., Chandelier ATR) to lock in profits as a trade develops.
Universal Renko Bars by SiddWolfUniversal Renko Bars or UniRenko Bars is an overlay indicator that applies the logic of Renko charting directly onto a standard candlestick chart. It generates a sequence of price-driven bricks, where each new brick is formed only when the price moves a specific amount, regardless of time. This provides a clean, price-action-focused visualization of the market's trend.
WHAT IS UNIVERSAL RENKO BARS?
For years, traders have faced a stark choice: the clean, noise-free world of Renko charts, or the rich, time-based context of Candlesticks. Choosing Renko meant giving up your favorite moving averages, volume profiles, and the fundamental sense of time. Choosing Candlesticks meant enduring the market noise that often clouds true price action.
But what if you didn't have to choose?
Universal Renko Bars is a revolutionary indicator that ends this dilemma. It's not just another charting tool; it's a powerful synthesis that overlays the pure, price-driven logic of Renko bricks directly onto your standard candlestick chart. This hybrid approach gives you the best of both worlds:
❖ The Clarity of Renko: By filtering out the insignificant noise of time, Universal Renko reveals the underlying trend with unparalleled clarity. Up trends are clean successions of green bricks; down trends are clear red bricks. No more guesswork.
❖ The Context of Candlesticks: Because the Renko logic is an overlay, you retain your time axis, your volume data, and full compatibility with every other time-based indicator in your arsenal (RSI, MACD, Moving Averages, etc.).
The true magic, however, lies in its live, Unconfirmed Renko brick. This semi-transparent box is your window into the current bar's real-time struggle. It grows, shrinks, and changes color with every tick, showing you exactly how close the price is to confirming the trend or forcing a reversal. It’s no longer a lagging indicator; it’s a live look at the current battle between buyers and sellers.
Universal Renko Bars unifies these two powerful charting methods, transforming your chart into a more intelligent, noise-free, and predictive analytical canvas.
HOW TO USE
To get the most out of Universal Renko Bars, here are a few tips and a full breakdown of the settings.
Initial Setup for the Best Experience
For the cleanest possible view, it's highly recommended that you hide the body of your standard candlesticks, that shows only the skelton of the candle. This allows the Renko bricks to become the primary focus of your chart.
→ Double click on the candles and uncheck the body checkbox.
Settings Breakdown
The indicator is designed to be powerful yet intuitive. The settings are grouped to make customization easy.
First, What is a "Tick"?
Before we dive in, it's important to understand the concept of a "Tick." In Universal Renko, a Tick is not the same as a market tick. It's a fundamental unit of price movement that you define. For example, if you set the Tick Size to $0.50, then a price move of $1.00 is equal to 2 Ticks. This is the core building block for all Renko bricks. Tick size here is dynamically determined by the settings provided in the indicator.
❖ Calculation Method (The "Tick Size" Engine)
This section determines the monetary value of a single "Tick."
`Calculation Method` : Choose your preferred engine for defining the Tick Size.
`ATR Based` (Default): The Tick Size becomes dynamic, based on market volatility (Average True Range). Bricks will get larger in volatile markets and smaller in quiet ones. Use the `ATR 14 Multiplier` to control the sensitivity.
`Percentage` : The Tick Size is a simple percentage of the current asset price, controlled by the `Percent Size (%)` input.
`Auto` : The "set it and forget it" mode. The script intelligently calculates a Tick Size based on the asset's price. Use the `Auto Sensitivity` slider to make these automatically calculated bricks thicker (value > 1.0) or thinner (value < 1.0).
❖ Parameters (The Core Renko Engine)
This group controls how the bricks are constructed based on the Tick Size.
`Tick Trend` : The number of "Ticks" the price must move in the same direction to print a new continuation brick. A smaller value means bricks form more easily.
`Tick Reversal` : The number of "Ticks" the price must move in the opposite direction to print a new reversal brick. This is typically set higher than `Tick Trend` (e.g., double) to filter out minor pullbacks and market noise.
`Open Offset` : Controls the visual overlap of the bricks. A value of `0` creates gapless bricks that start where the last one ended. A value of `2` (with a `Tick Reversal` of 4) creates the classic 50% overlap look.
❖ Visuals (Controlling What You See)
This is where you tailor the chart to your visual preference.
`Show Confirmed Renko` : Toggles the solid-colored, historical bricks. These are finalized and will never change. They represent the confirmed past trend.
`Show Unconfirmed Renko` : This is the most powerful visual feature. It toggles the live, semi-transparent box that represents the developing brick. It shows you exactly where the price is right now in relation to the levels needed to form the next brick.
`Show Max/Min Levels` : Toggles the horizontal "finish lines" on your chart. The green line is the price target for a bullish brick, and the red line is the target for a bearish brick. These are excellent for spotting breakouts.
`Show Info Label` : Toggles the on-chart label that provides key real-time stats:
🧱 Bricks: The total count of confirmed bricks.
⏳ Live: How many chart bars the current live brick has been forming. These bars forms the Renko bricks that aren't confirmed yet. Live = 0 means the latest renko brick is confirmed.
🌲 Tick Size: The current calculated value of a single Tick.
Hover over the label for a tooltip with live RSI(14), MFI(14), and CCI(20) data for additional confirmation.
TRADING STRATEGIES & IDEAS
Universal Renko Bars isn't just a visual tool; it's a foundation for building robust trading strategies.
Trend Confirmation: The primary use is to instantly identify the trend. A series of green bricks indicates a strong uptrend; a series of red bricks indicates a strong downtrend. Use this to filter out trades that go against the primary momentum.
Reversal Spotting: Pay close attention to the Unconfirmed Brick . When a strong trend is in place and the live brick starts to fight against it—changing color and growing larger—it can be an early warning that a reversal is imminent. Wait for the brick to be confirmed for a higher probability entry.
Breakout Trading: The `Max/Min Levels` are your dynamic breakout zones. A long entry can be considered when the price breaks and closes above the green Max Level, confirming a new bullish brick. A short entry can be taken when price breaks below the red Min Level.
Confluence & Indicator Synergy: This is where Universal Renko truly shines. Overlay a moving average (e.g., 20 EMA). Only take long trades when the green bricks are forming above the EMA. Combine it with RSI or MACD; a bearish reversal brick forming while the RSI shows bearish divergence is a very powerful signal.
A FINAL WORD
Universal Renko Bars was designed to solve a fundamental problem in technical analysis. It brings together the best elements of two powerful methodologies to give you a clearer, more actionable view of the market. By filtering noise while retaining context, it empowers you to make decisions with greater confidence.
Add Universal Renko Bars to your chart today and elevate your analysis. We welcome your feedback and suggestions for future updates!
Follow me to get notified when I publish New Indicator.
~ SiddWolf
BK AK-SILENCER (P8N)🚨Introducing BK AK-SILENCER (P8N) — Institutional Order Flow Tracking for Silent Precision🚨
After months of meticulous tuning and refinement, I'm proud to unleash the next weapon in my trading arsenal—BK AK-SILENCER (P8N).
🔥 Why "AK-SILENCER"? The True Meaning
Institutions don’t announce their moves—they move silently, hidden beneath the noise. The SILENCER is built specifically to detect and track these stealth institutional maneuvers, giving you the power to hunt quietly, execute decisively, and strike precisely before the market catches on.
🔹 "AK" continues the legacy, honoring my mentor, A.K., whose teachings on discipline, precision, and clarity form the cornerstone of my trading.
🔹 "SILENCER" symbolizes the stealth aspect of institutional trading—quiet but deadly moves. This indicator equips you to silently track, expose, and capitalize on their hidden footprints.
🧠 What Exactly is BK AK-SILENCER (P8N)?
It's a next-generation Cumulative Volume Delta (CVD) tool crafted specifically for traders who hunt institutional order flow, combining adaptive volatility bands, enhanced momentum gradients, and precise divergence detection into a single deadly-accurate weapon.
Built for silent execution—tracking moves quietly and trading with lethal precision.
⚙️ Core Weapon Systems
✅ Institutional CVD Engine
→ Dynamically measures hidden volume shifts (buying/selling pressure) to reveal institutional footprints that price alone won't show.
✅ Adaptive AK-9 Bollinger Bands
→ Bollinger Bands placed around a custom CVD signal line, pinpointing exactly when institutional accumulation or distribution reaches critical extremes.
✅ Gradient Momentum Intelligence
→ Color-coded momentum gradients reveal the strength, speed, and silent intent behind institutional order flow:
🟢 Strong Bullish (aggressive buying)
🟡 Moderate Bullish (steady accumulation)
🔵 Neutral (balance)
🟠 Moderate Bearish (quiet distribution)
🔴 Strong Bearish (aggressive selling)
✅ Silent Divergence Detection
→ Instantly spots divergence between price and hidden volume—your earliest indication that institutions are stealthily reversing direction.
✅ Background Flash Alerts
→ Visually highlights institutional extremes through subtle background flashes, alerting you quietly yet powerfully when market-moving players make their silent moves.
✅ Structural & Institutional Clarity
→ Optional structural pivots, standard deviation bands, volume profile anchors, and session lines clearly identify the exact levels institutions defend or attack silently.
🛡️ Why BK AK-SILENCER (P8N) is Your Edge
🔹 Tracks Institutional Footprints—Silently identifies hidden volume signals of institutional intentions before they’re obvious.
🔹 Precision Execution—Cuts through noise, allowing you to execute silently, confidently, and precisely.
🔹 Perfect for Traders Using:
Elliott Wave
Gann Methods (Angles, Squares)
Fibonacci Time & Price
Harmonic Patterns
Market Profile & Order Flow Analysis
🎯 How to Use BK AK-SILENCER (P8N)
🔸 Institutional Reversal Hunting (Stealth Mode)
Bearish divergence + CVD breaking below lower BB → stealth short signal.
Bullish divergence + CVD breaking above upper BB → quiet, early long entry.
🔸 Momentum Confirmation (Silent Strength)
Strong bullish gradient + CVD above upper BB → follow institutional buying quietly.
Strong bearish gradient + CVD below lower BB → confidently short institutional selling.
🔸 Noise Filtering (Patience & Precision)
Neutral gradient (blue) → remain quiet, wait patiently to strike precisely when institutional activity resumes.
🔸 Structural Precision (Institutional Levels)
Optional StdDev, POC, Value Areas, Session Anchors clearly identify exact institutional defense/offense zones.
🙏 Final Thoughts
Institutions move in silence, leaving subtle footprints. BK AK-SILENCER (P8N) is your specialized weapon for tracking and hunting their quiet, decisive actions before the market reacts.
🔹 Dedicated in deep gratitude to my mentor, A.K.—whose silent wisdom shapes every line of code.
🔹 Engineered for the disciplined, quiet hunter who knows when to wait patiently and when to strike decisively.
Above all, honor and gratitude to Gd—the ultimate source of wisdom, clarity, and disciplined execution. Without Him, markets are chaos. With Him, we move silently, purposefully, and precisely.
⚡ Stay Quiet. Stay Precise. Hunt Silently.
🔥 BK AK-SILENCER (P8N) — Track the Silent Moves. Strike with Precision. 🔥
May Gd bless every silent step you take. 🙏
NVT Ratio Z-Score | [DeV]** DISCLAIMER: This indicator is not trend following, so it SHOULD NOT be a buy/sell signal or used as a stand alone indicator to tell you to buy or sell. It's simply giving insight into potential overbought or oversold market conditions, and should be used in conjunction with other market analysis tools to give you an idea of possible market reversals.**
The NVT Ratio Z-Score is a unique on-chain valuation tool that helps users assess whether Bitcoin is potentially overbought or oversold relative to its network fundamentals. This indicator calculates the Network Value to Transactions (NVT) ratio, which compares Bitcoin’s market capitalization (price × circulating supply) to the USD-denominated daily transaction volume on the network. To improve clarity and remove short-term noise, the NVT value is smoothed using a customizable moving average (NVT Smoothing Period). The smoothed value is then normalized using a Z-score over a rolling period (Normalization Lookback Period), allowing for easier comparison of extreme deviations over time. This normalization makes it possible to spot historically high or low valuation zones with consistency.
While the NVT Ratio Z-Score is not a price action or trend-following indicator, it excels as a valuation-based supplemental tool. By using this indicator alongside your existing technical setups—such as momentum oscillators (like RSI or MACD), moving averages, or volume profiles—you can gain a deeper perspective on whether the broader market is operating in an overheated or undervalued state.
Interpretation is straightforward: the lower the Z-score dips into negative territory, the more oversold the market may be, potentially indicating a bottoming process or future upward reversal. Conversely, higher Z-scores suggest the market is becoming overheated or overbought, which can precede pullbacks or broader downtrends. However, it’s crucial to remember: this is not a trend indicator. Overbought conditions don’t guarantee immediate downturns, and oversold conditions don’t guarantee immediate rallies. Markets can remain extended in either direction for prolonged periods.
Use the NVT Ratio Z-Score to contextualize price moves and strengthen conviction when your other tools show signals aligning with extreme valuation zones. This indicator is especially helpful for swing traders, long-term investors, and those analyzing Bitcoin through a macro-on-chain lens.
Ergodic Market Divergence (EMD)Ergodic Market Divergence (EMD)
Bridging Statistical Physics and Market Dynamics Through Ensemble Analysis
The Revolutionary Concept: When Physics Meets Trading
After months of research into ergodic theory—a fundamental principle in statistical mechanics—I've developed a trading system that identifies when markets transition between predictable and unpredictable states. This indicator doesn't just follow price; it analyzes whether current market behavior will persist or revert, giving traders a scientific edge in timing entries and exits.
The Core Innovation: Ergodic Theory Applied to Markets
What Makes Markets Ergodic or Non-Ergodic?
In statistical physics, ergodicity determines whether a system's future resembles its past. Applied to trading:
Ergodic Markets (Mean-Reverting)
- Time averages equal ensemble averages
- Historical patterns repeat reliably
- Price oscillates around equilibrium
- Traditional indicators work well
Non-Ergodic Markets (Trending)
- Path dependency dominates
- History doesn't predict future
- Price creates new equilibrium levels
- Momentum strategies excel
The Mathematical Framework
The Ergodic Score combines three critical divergences:
Ergodic Score = (Price Divergence × Market Stress + Return Divergence × 1000 + Volatility Divergence × 50) / 3
Where:
Price Divergence: How far current price deviates from market consensus
Return Divergence: Momentum differential between instrument and market
Volatility Divergence: Volatility regime misalignment
Market Stress: Adaptive multiplier based on current conditions
The Ensemble Analysis Revolution
Beyond Single-Instrument Analysis
Traditional indicators analyze one chart in isolation. EMD monitors multiple correlated markets simultaneously (SPY, QQQ, IWM, DIA) to detect systemic regime changes. This ensemble approach:
Reveals Hidden Divergences: Individual stocks may diverge from market consensus before major moves
Filters False Signals: Requires broader market confirmation
Identifies Regime Shifts: Detects when entire market structure changes
Provides Context: Shows if moves are isolated or systemic
Dynamic Threshold Adaptation
Unlike fixed-threshold systems, EMD's boundaries evolve with market conditions:
Base Threshold = SMA(Ergodic Score, Lookback × 3)
Adaptive Component = StDev(Ergodic Score, Lookback × 2) × Sensitivity
Final Threshold = Smoothed(Base + Adaptive)
This creates context-aware signals that remain effective across different market environments.
The Confidence Engine: Know Your Signal Quality
Multi-Factor Confidence Scoring
Every signal receives a confidence score based on:
Signal Clarity (0-35%): How decisively the ergodic threshold is crossed
Momentum Strength (0-25%): Rate of ergodic change
Volatility Alignment (0-20%): Whether volatility supports the signal
Market Quality (0-20%): Price convergence and path dependency factors
Real-Time Confidence Updates
The Live Confidence metric continuously updates, showing:
- Current opportunity quality
- Market state clarity
- Historical performance influence
- Signal recency boost
- Visual Intelligence System
Adaptive Ergodic Field Bands
Dynamic bands that expand and contract based on market state:
Primary Color: Ergodic state (mean-reverting)
Danger Color: Non-ergodic state (trending)
Band Width: Expected price movement range
Squeeze Indicators: Volatility compression warnings
Quantum Wave Ribbons
Triple EMA system (8, 21, 55) revealing market flow:
Compressed Ribbons: Consolidation imminent
Expanding Ribbons: Directional move developing
Color Coding: Matches current ergodic state
Phase Transition Signals
Clear entry/exit markers at regime changes:
Bull Signals: Ergodic restoration (mean reversion opportunity)
Bear Signals: Ergodic break (trend following opportunity)
Confidence Labels: Percentage showing signal quality
Visual Intensity: Stronger signals = deeper colors
Professional Dashboard Suite
Main Analytics Panel (Top Right)
Market State Monitor
- Current regime (Ergodic/Non-Ergodic)
- Ergodic score with threshold
- Path dependency strength
- Quantum coherence percentage
Divergence Metrics
- Price divergence with severity
- Volatility regime classification
- Strategy mode recommendation
- Signal strength indicator
Live Intelligence
- Real-time confidence score
- Color-coded risk levels
- Dynamic strategy suggestions
Performance Tracking (Left Panel)
Signal Analytics
- Total historical signals
- Win rate with W/L breakdown
- Current streak tracking
- Closed trade counter
Regime Analysis
- Current market behavior
- Bars since last signal
- Recommended actions
- Average confidence trends
Strategy Command Center (Bottom Right)
Adaptive Recommendations
- Active strategy mode
- Primary approach (mean reversion/momentum)
- Suggested indicators ("weapons")
- Entry/exit methodology
- Risk management guidance
- Comprehensive Input Guide
Core Algorithm Parameters
Analysis Period (10-100 bars)
Scalping (10-15): Ultra-responsive, more signals, higher noise
Day Trading (20-30): Balanced sensitivity and stability
Swing Trading (40-100): Smooth signals, major moves only Default: 20 - optimal for most timeframes
Divergence Threshold (0.5-5.0)
Hair Trigger (0.5-1.0): Catches every wiggle, many false signals
Balanced (1.5-2.5): Good signal-to-noise ratio
Conservative (3.0-5.0): Only extreme divergences Default: 1.5 - best risk/reward balance
Path Memory (20-200 bars)
Short Memory (20-50): Recent behavior focus, quick adaptation
Medium Memory (50-100): Balanced historical context
Long Memory (100-200): Emphasizes established patterns Default: 50 - captures sufficient history without lag
Signal Spacing (5-50 bars)
Aggressive (5-10): Allows rapid-fire signals
Normal (15-25): Prevents clustering, maintains flow
Conservative (30-50): Major setups only Default: 15 - optimal trade frequency
Ensemble Configuration
Select markets for consensus analysis:
SPY: Broad market sentiment
QQQ: Technology leadership
IWM: Small-cap risk appetite
DIA: Blue-chip stability
More instruments = stronger consensus but potentially diluted signals
Visual Customization
Color Themes (6 professional options):
Quantum: Cyan/Pink - Modern trading aesthetic
Matrix: Green/Red - Classic terminal look
Heat: Blue/Red - Temperature metaphor
Neon: Cyan/Magenta - High contrast
Ocean: Turquoise/Coral - Calming palette
Sunset: Red-orange/Teal - Warm gradients
Display Controls:
- Toggle each visual component
- Adjust transparency levels
- Scale dashboard text
- Show/hide confidence scores
- Trading Strategies by Market State
- Ergodic State Strategy (Primary Color Bands)
Market Characteristics
- Price oscillates predictably
- Support/resistance hold
- Volume patterns repeat
- Mean reversion dominates
Optimal Approach
Entry: Fade moves at band extremes
Target: Middle band (equilibrium)
Stop: Just beyond outer bands
Size: Full confidence-based position
Recommended Tools
- RSI for oversold/overbought
- Bollinger Bands for extremes
- Volume profile for levels
- Non-Ergodic State Strategy (Danger Color Bands)
Market Characteristics
- Price trends persistently
- Levels break decisively
- Volume confirms direction
- Momentum accelerates
Optimal Approach
Entry: Breakout from bands
Target: Trail with expanding bands
Stop: Inside opposite band
Size: Scale in with trend
Recommended Tools
- Moving average alignment
- ADX for trend strength
- MACD for momentum
- Advanced Features Explained
Quantum Coherence Metric
Measures phase alignment between individual and ensemble behavior:
80-100%: Perfect sync - strong mean reversion setup
50-80%: Moderate alignment - mixed signals
0-50%: Decoherence - trending behavior likely
Path Dependency Analysis
Quantifies how much history influences current price:
Low (<30%): Technical patterns reliable
Medium (30-50%): Mixed influences
High (>50%): Fundamental shift occurring
Volatility Regime Classification
Contextualizes current volatility:
Normal: Standard strategies apply
Elevated: Widen stops, reduce size
Extreme: Defensive mode required
Signal Strength Indicator
Real-time opportunity quality:
- Distance from threshold
- Momentum acceleration
- Cross-validation factors
Risk Management Framework
Position Sizing by Confidence
90%+ confidence = 100% position size
70-90% confidence = 75% position size
50-70% confidence = 50% position size
<50% confidence = 25% or skip
Dynamic Stop Placement
Ergodic State: ATR × 1.0 from entry
Non-Ergodic State: ATR × 2.0 from entry
Volatility Adjustment: Multiply by current regime
Multi-Timeframe Alignment
- Check higher timeframe regime
- Confirm ensemble consensus
- Verify volume participation
- Align with major levels
What Makes EMD Unique
Original Contributions
First Ergodic Theory Trading Application: Transforms abstract physics into practical signals
Ensemble Market Analysis: Revolutionary multi-market divergence system
Adaptive Confidence Engine: Institutional-grade signal quality metrics
Quantum Coherence: Novel market alignment measurement
Smart Signal Management: Prevents clustering while maintaining responsiveness
Technical Innovations
Dynamic Threshold Adaptation: Self-adjusting sensitivity
Path Memory Integration: Historical dependency weighting
Stress-Adjusted Scoring: Market condition normalization
Real-Time Performance Tracking: Built-in strategy analytics
Optimization Guidelines
By Timeframe
Scalping (1-5 min)
Period: 10-15
Threshold: 0.5-1.0
Memory: 20-30
Spacing: 5-10
Day Trading (5-60 min)
Period: 20-30
Threshold: 1.5-2.5
Memory: 40-60
Spacing: 15-20
Swing Trading (1H-1D)
Period: 40-60
Threshold: 2.0-3.0
Memory: 80-120
Spacing: 25-35
Position Trading (1D-1W)
Period: 60-100
Threshold: 3.0-5.0
Memory: 100-200
Spacing: 40-50
By Market Condition
Trending Markets
- Increase threshold
- Extend memory
- Focus on breaks
Ranging Markets
- Decrease threshold
- Shorten memory
- Focus on restores
Volatile Markets
- Increase spacing
- Raise confidence requirement
- Reduce position size
- Integration with Other Analysis
- Complementary Indicators
For Ergodic States
- RSI divergences
- Bollinger Band squeezes
- Volume profile nodes
- Support/resistance levels
For Non-Ergodic States
- Moving average ribbons
- Trend strength indicators
- Momentum oscillators
- Breakout patterns
- Fundamental Alignment
- Check economic calendar
- Monitor sector rotation
- Consider market themes
- Evaluate risk sentiment
Troubleshooting Guide
Too Many Signals:
- Increase threshold
- Extend signal spacing
- Raise confidence minimum
Missing Opportunities
- Decrease threshold
- Reduce signal spacing
- Check ensemble settings
Poor Win Rate
- Verify timeframe alignment
- Confirm volume participation
- Review risk management
Disclaimer
This indicator is for educational and informational purposes only. It does not constitute financial advice. Trading involves substantial risk of loss and is not suitable for all investors. Past performance does not guarantee future results.
The ergodic framework provides unique market insights but cannot predict future price movements with certainty. Always use proper risk management, conduct your own analysis, and never risk more than you can afford to lose.
This tool should complement, not replace, comprehensive trading strategies and sound judgment. Markets remain inherently unpredictable despite advanced analysis techniques.
Transform market chaos into trading clarity with Ergodic Market Divergence.
Created with passion for the TradingView community
Trade with insight. Trade with anticipation.
— Dskyz , for DAFE Trading Systems
CPD Approach Algo Line [ValiantTrader]CPD Approach Algo Line Indicator - Explanation
This indicator, developed by ValiantTrader, is a sophisticated tool for analyzing price action and volume distribution across different timeframes. Here's how it works and how traders can use it:
Core Functionality
The indicator performs a "Candle Price Distribution" (CPD) analysis by:
Collecting data from a higher timeframe (configurable via input)
Dividing the price range into horizontal zones (either by tick size or evenly distributed)
Analyzing price behavior within each zone
Key Features and Trading Applications
1. Price Zone Analysis
Divides the price range into customizable zones (default 24 zones)
Shows how many candles have traded in each zone
Displays what percentage of total candles occurred in each zone
Trading Use: Identifies high-probability support/resistance areas where price has historically spent more time.
2. Delta Calculation
Shows the difference in candle counts between adjacent zones
Color-coded (green for positive, red for negative)
Trading Use: Helps spot areas where price behavior changes significantly (potential reversal zones).
3. Volume Clusters
Aggregates volume traded within each price zone
Visualized as colored backgrounds
Trading Use: Identifies high-volume nodes which often act as strong support/resistance.
4. Pressure Zones
Scores each zone based on where candles closed within the zone
Positive pressure (green) when candles closed in upper part
Negative pressure (red) when candles closed in lower part
Trading Use: Shows where buyers or sellers were more dominant at each price level.
5. Advanced Candle Pattern Detection
Tracks wick engulfing patterns
Measures body engulfing patterns
Counts rejection candles (long wicks)
Identifies dominant candles (large bodies)
Trading Use: Provides additional confirmation of potential reversal or continuation patterns.
6. Draggable Reference Line
Allows traders to place a horizontal line at any price level
Automatically shows statistics for the zone containing the line
Trading Use: Quickly analyze any price level's historical significance.
Practical Trading Applications
Support/Resistance Identification: The zones with highest candle counts typically represent strong support/resistance levels.
Breakout Trading: When price moves into zones with few previous candles, it may indicate breakout potential.
Reversal Trading: Zones where delta changes significantly (from positive to negative or vice versa) can signal potential reversals.
Volume-Weighted Analysis: Combining candle counts with volume clusters helps identify the most significant price levels.
Multi-Timeframe Analysis: By setting the custom timeframe to a higher period, traders can see where institutional levels exist on weekly/daily charts while trading on lower timeframes.
The indicator is particularly useful for traders who employ volume profile, market profile, or order flow concepts in their trading strategy. The visual presentation makes it easy to quickly assess the most significant price levels on any chart.
Linear Regression Channel UltimateKey Features and Benefits
Logarithmic scale option for improved analysis of long-term trends and volatile markets
Activity-based profiling using either touch count or volume data
Customizable channel width and number of profile fills
Adjustable number of most active levels displayed
Highly configurable visual settings for optimal chart readability
Why Logarithmic Scale Matters
The logarithmic scale option is a game-changer for analyzing assets with exponential growth or high volatility. Unlike linear scales, log scales represent percentage changes consistently across the price range. This allows for:
Better visualization of long-term trends
More accurate comparison of price movements across different price levels
Improved analysis of volatile assets or markets experiencing rapid growth
How It Works
The indicator calculates a linear regression line based on the specified period
Upper and lower channel lines are drawn at a customizable distance from the regression line
The space between the channel lines is divided into a user-defined number of levels
For each level, the indicator tracks either:
- The number of times price touches the level (touch count method)
- The total volume traded when price is at the level (volume method)
The most active levels are highlighted based on this activity data
Understanding Touch Count vs Volume
Touch count method: Useful for identifying key support/resistance levels based on price action alone
Volume method: Provides insight into levels where the most trading activity occurs, potentially indicating stronger support/resistance
Practical Applications
Trend identification and strength assessment
Support and resistance level discovery
Entry and exit point optimization
Volume profile analysis for improved market structure understanding
This Linear Regression Channel indicator combines powerful statistical analysis with flexible visualization options, making it an invaluable tool for traders and analysts across various timeframes and markets. Its unique features, especially the logarithmic scale and activity profiling, provide deeper insights into market behavior and potential turning points.
SessionVolumeProfileLibrary "SessionVolumeProfile"
Analyzes price & volume during regular trading hours to provide a session volume profile analysis. The primary goal of this library is to provide the developer with three values: the value area high, low and the point of control. The library also provides methods for rendering the value areas and histograms. To learn more about this library and how you can use it, click on the website link in my profile where you will find a blog post with detailed information.
debug(vp, position)
Helper function to write some information about the supplied SVP object to the screen in a table.
Parameters:
vp (Object) : The SVP object to debug
position (string) : The position.* to place the table. Defaults to position.bottom_center
getLowerTimeframe()
Depending on the timeframe of the chart, determines a lower timeframe to grab volume data from for the analysis
Returns: The timeframe string to fetch volume for
get(volumeProfile, lowerTimeframeHigh, lowerTimeframeLow, lowerTimeframeVolume)
Populated the provided SessionVolumeProfile object with vp data on the session.
Parameters:
volumeProfile (Object) : The SessionVolumeProfile object to populate
lowerTimeframeHigh (float ) : The lower timeframe high values
lowerTimeframeLow (float ) : The lower timeframe low values
lowerTimeframeVolume (float ) : The lower timeframe volume values
drawPriorValueAreas(todaySessionVolumeProfile, extendYesterdayOverToday, showLabels, labelSize, pocColor, pocStyle, pocWidth, vahlColor, vahlStyle, vahlWidth, vaColor)
Given a SessionVolumeProfile Object, will render the historical value areas for that object.
Parameters:
todaySessionVolumeProfile (Object) : The SessionVolumeProfile Object to draw
extendYesterdayOverToday (bool) : Defaults to true
showLabels (bool) : Defaults to true
labelSize (string) : Defaults to size.small
pocColor (color) : Defaults to #e500a4
pocStyle (string) : Defaults to line.style_solid
pocWidth (int) : Defaults to 1
vahlColor (color) : The color of the value area high/low lines. Defaults to #1592e6
vahlStyle (string) : The style of the value area high/low lines. Defaults to line.style_solid
vahlWidth (int) : The width of the value area high/low lines. Defaults to 1
vaColor (color) : The color of the value area background. Defaults to #00bbf911)
drawHistogram(volumeProfile, bgColor, showVolumeOnHistogram)
Given a SessionVolumeProfile object, will render the histogram for that object.
Parameters:
volumeProfile (Object) : The SessionVolumeProfile object to draw
bgColor (color) : The baseline color to use for the histogram. Defaults to #00bbf9
showVolumeOnHistogram (bool) : Show the volume amount on the histogram bars. Defaults to false.
Object
Fields:
numberOfRows (series__integer)
valueAreaCoverage (series__integer)
trackDevelopingVa (series__bool)
valueAreaHigh (series__float)
pointOfControl (series__float)
valueAreaLow (series__float)
startTime (series__integer)
endTime (series__integer)
dayHigh (series__float)
dayLow (series__float)
step (series__float)
pointOfControlLevel (series__integer)
valueAreaHighLevel (series__integer)
valueAreaLowLevel (series__integer)
volumeRows (array__float)
priceLevelRows (array__float)
ltfSessionHighs (array__float)
ltfSessionLows (array__float)
ltfSessionVols (array__float)
Position Cost DistributionThe Position Cost Distribution indicator (also known as the Market Position Overview, Chip Distribution, or CYQ Algorithm) provides an estimate of how shares are distributed across different price levels. Visually, it resembles the Volume Profile indicator, though they rely on distinct computational approaches.
🟠 Principle
The Position Cost Distribution algorithm is based on the principle that a security's total shares outstanding usually remains constant, except under conditions like stock splits, reverse splits, or new share issuance. It views all trading activity as simply exchanging share positions between holders at different price points.
By analyzing daily trade volume and the prior day's distribution, the algorithm infers the resulting share distribution after each day. By tracking these inferred transpositions over time, the indicator builds up an aggregate view of the estimated share concentration at each price level. This provides insights into potential buying and selling pressure zones that could form support or resistance areas.
Together with the Volume Profile, the Position Cost Distribution gives traders multiple lenses for examining market structure from both a volume and positional standpoint. Both can help identify meaningful technical price levels.
🟠 Algorithm
The algorithm initializes by allocating all shares to the price range encompassed by the first bar displayed on the chart. Preferably, the chart window should include the stock's IPO date, allowing the model to distribute shares specifically to the IPO price.
For subsequent trading sessions, the indicator performs the following calculations:
1. The daily turnover ratio is calculated by dividing the bar's trading volume by total outstanding shares.
2. For each price level (bucket), the number of shares is reduced by the turnover amount to represent shares transferring from existing holders.
3. The bar's total volume is then added to buckets corresponding to that period's price range.
Currently, the model assumes each share has an equal probability of being exchanged, regardless of how long ago it was acquired or at what price. Potential optimizations could incorporate factors like making shares held longer face a smaller chance of transfer compared to more recently purchased shares.
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中文介绍：该指标为“筹码分布”的一个 TradingView 实现 :)
Multi-Asset Performance [Spaghetti] - By LeviathanThis indicator visualizes the cumulative percentage changes or returns of 30 symbols over a given period and offers a unique set of tools and data analytics for deeper insight into the performance of different assets.
Multi Asset Performance indicator (also called “Spaghetti”) makes it easy to monitor the changes in Price, Open Interest, and On Balance Volume across multiple assets simultaneously, distinguish assets that are overperforming or underperforming, observe the relative strength of different assets or currencies, use it as a tool for identifying mean reversion opportunities and even for constructing pairs trading strategies, detect "risk-on" or "risk-off" periods, evaluate statistical relationships between assets through metrics like correlation and beta, construct hedging strategies, trade rotations and much more.
Start by selecting a time period (e.g., 1 DAY) to set the interval for when data is reset. This will provide insight into how price, open interest, and on-balance volume change over your chosen period. In the settings, asset selection is fully customizable, allowing you to create three groups of up to 30 tickers each. These tickers can be displayed in a variety of styles and colors. Additional script settings offer a range of options, including smoothing values with a Simple Moving Average (SMA), highlighting the top or bottom performers, plotting the group mean, applying heatmap/gradient coloring, generating a table with calculations like beta, correlation, and RSI, creating a profile to show asset distribution around the mean, and much more.
One of the most important script tools is the screener table, which can display:
🔸 Percentage Change (Represents the return or the percentage increase or decrease in Price/OI/OBV over the current selected period)
🔸 Beta (Represents the sensitivity or responsiveness of asset's returns to the returns of a benchmark/mean. A beta of 1 means the asset moves in tandem with the market. A beta greater than 1 indicates the asset is more volatile than the market, while a beta less than 1 indicates the asset is less volatile. For example, a beta of 1.5 means the asset typically moves 150% as much as the benchmark. If the benchmark goes up 1%, the asset is expected to go up 1.5%, and vice versa.)
🔸 Correlation (Describes the strength and direction of a linear relationship between the asset and the mean. Correlation coefficients range from -1 to +1. A correlation of +1 means that two variables are perfectly positively correlated; as one goes up, the other will go up in exact proportion. A correlation of -1 means they are perfectly negatively correlated; as one goes up, the other will go down in exact proportion. A correlation of 0 means that there is no linear relationship between the variables. For example, a correlation of 0.5 between Asset A and Asset B would suggest that when Asset A moves, Asset B tends to move in the same direction, but not perfectly in tandem.)
🔸 RSI (Measures the speed and change of price movements and is used to identify overbought or oversold conditions of each asset. The RSI ranges from 0 to 100 and is typically used with a time period of 14. Generally, an RSI above 70 indicates that an asset may be overbought, while RSI below 30 signals that an asset may be oversold.)
⚙️ Settings Overview:
◽️ Period
Periodic inputs (e.g. daily, monthly, etc.) determine when the values are reset to zero and begin accumulating again until the period is over. This visualizes the net change in the data over each period. The input "Visible Range" is auto-adjustable as it starts the accumulation at the leftmost bar on your chart, displaying the net change in your chart's visible range. There's also the "Timestamp" option, which allows you to select a specific point in time from where the values are accumulated. The timestamp anchor can be dragged to a desired bar via Tradingview's interactive option. Timestamp is particularly useful when looking for outperformers/underperformers after a market-wide move. The input positioned next to the period selection determines the timeframe on which the data is based. It's best to leave it at default (Chart Timeframe) unless you want to check the higher timeframe structure of the data.
◽️ Data
The first input in this section determines the data that will be displayed. You can choose between Price, OI, and OBV. The second input lets you select which one out of the three asset groups should be displayed. The symbols in the asset group can be modified in the bottom section of the indicator settings.
◽️ Appearance
You can choose to plot the data in the form of lines, circles, areas, and columns. The colors can be selected by choosing one of the six pre-prepared color palettes.
◽️ Labeling
This input allows you to show/hide the labels and select their appearance and size. You can choose between Label (colored pointed label), Label and Line (colored pointed label with a line that connects it to the plot), or Text Label (colored text).
◽️ Smoothing
If selected, this option will smooth the values using a Simple Moving Average (SMA) with a custom length. This is used to reduce noise and improve the visibility of plotted data.
◽️ Highlight
If selected, this option will highlight the top and bottom N (custom number) plots, while shading the others. This makes the symbols with extreme values stand out from the rest.
◽️ Group Mean
This input allows you to select the data that will be considered as the group mean. You can choose between Group Average (the average value of all assets in the group) or First Ticker (the value of the ticker that is positioned first on the group's list). The mean is then used in calculations such as correlation (as the second variable) and beta (as a benchmark). You can also choose to plot the mean by clicking on the checkbox.
◽️ Profile
If selected, the script will generate a vertical volume profile-like display with 10 zones/nodes, visualizing the distribution of assets below and above the mean. This makes it easy to see how many or what percentage of assets are outperforming or underperforming the mean.
◽️ Gradient
If selected, this option will color the plots with a gradient based on the proximity of the value to the upper extreme, zero, and lower extreme.
◽️ Table
This section includes several settings for the table's appearance and the data displayed in it. The "Reference Length" input determines the number of bars back that are used for calculating correlation and beta, while "RSI Length" determines the length used for calculating the Relative Strength Index. You can choose the data that should be displayed in the table by using the checkboxes.
◽️ Asset Groups
This section allows you to modify the symbols that have been selected to be a part of the 3 asset groups. If you want to change a symbol, you can simply click on the field and type the ticker of another one. You can also show/hide a specific asset by using the checkbox next to the field.
TradeMaster ProTrading effectively requires a range of techniques, experience, and expertise. From technical analysis to market fundamentals, traders must navigate multiple factors, including market sentiment and economic conditions. However, traders often find themselves overwhelmed by market noise, making it challenging to filter out distractions and make informed decisions. To address this, we present a powerful indicator package designed to assist traders on their journey to success.
The TradeMaster indicator package encompasses a variety of trading strategies, including the SMC (Supply, Demand, and Price Action) approach, along with many other techniques. By leveraging concepts such as price action trading, support and resistance analysis, supply and demand dynamics, these indicators can empower traders to analyze entry and exit positions with precision. Unlike other forms of technical analysis that produce values or plots based on historical price data, Price Action brings you the facts straight from the source - the current price movements.
The indicator package consists of three powerful indicators that can be used individually or together to maximize trading effectiveness.
⭐ About the Pro Indicator
The Pro indicator is the cornerstone of the package, offering a comprehensive range of functions. It's strength lies in our unique structure calculation, which is based on real price action data, capturing every ticks from small intraday fluctuations to the significant high timeframe movements. The Pro Indicator reflects our personal use and deep comprehension of Smart Money Concepts. It provides streamlined tools for tracking algorithmic trends with modern visualizations, without unnecessary clutter.
In the ever-evolving trading landscape, mainstream methods and strategies can quickly become outdated as they are widely adopted. Liquidity is constantly sought after, and the best source for this is exploring and exploiting trading strategies that are widely accepted and applied. Currently, one of these strategies is the SMC (Supply, Demand, and Price Action).
It's no coincidence that our educational materials incorporate concepts such as liquidity grabs (LG) and Smart Money Traps (SMT). As the application of SMC gains popularity among retail traders, trading with this approach becomes more challenging. Therefore, the recent focus has been on reforming the SMC methodology, as it is the only method that relies on real price movements and will always work when applied correctly.
▸ What does proper application of SMC entail?
Many SMC traders associate their key areas of interest with the market structure, which is generally considered acceptable. However, depending solely on a single foundation can lead to significant deviations, which may cause notable impacts on trading results. Moreover, if the basis for the market structure calculation is inaccurate, the consequences can be even more severe. It's akin to risking money on a lottery ticket, believing it will be a winner.
Our methodology is different, and it may ensure longevity in the financial markets. The structure remains crucial, but it is not the sole foundation of everything; instead, it serves as a validation tool. Each calculation, such as order blocks (OB), Fair Value Gaps (FVG), liquidity grabs (LG), range analysis, and more, is independent and unique, separate from the structure. However, validation must ultimately come from the structure itself.
We employ individual and high-quality filters: before a function calculation is validated by the structure, it must undergo rigorous testing based on its own set of validation conditions. This approach aims to enhance robustness and accuracy, providing traders with a reliable framework for making informed trading decisions.
▸ An example for structure validation: Order Block with "Swing Sensitivity"
These order blocks will only be displayed and utilized by the script if there is a swing structure validation with a valid break. In other words, the presence of a confirmed swing Change of Character (ChoCh) or Break of Structure (BoS) is essential for the Order Block to be considered valid and relevant.
This approach ensures that the order blocks are aligned with the overall market structure and are not based on isolated or unreliable price movements. Whether it's Fair Value Gaps (FVG), Liquidity Grabs (LG), Range calculations, or other functionalities, the same underlying principle holds true. The background structure calculation serves as a validation mechanism for the data and insights generated by these functions, ensuring they adhere to the specific criteria and rules established within our methodology. By incorporating this robust validation process, traders can have confidence in the reliability and accuracy of the information provided by the indicator, allowing them to make informed trading decisions based on validated data and analysis.
👉 Usage - the general approach:
Determine your trading style using the Pro Indicator and build your basic strategy. This indicator helps you understand your trading style, whether it's swing trading, scalping or another approach. By analyzing the Pro Indicator, you gain valuable information about potential market trends, entry and exit points, and overall market sentiment.
👉 Example of usage:
In the following chart, you'll notice how we've utilized the indicator to formulate a strategic trading approach. We've employed Order Blocks equipped with volume parameters to identify crucial market zones. Simultaneously, we've leveraged swing/internal market structures to gain insights into potential long and short-term market turnarounds. Lastly, we've examined trend line liquidity zones to pinpoint probable impulses and breakouts within ongoing trends.
Now we can see how the price descended to the order block with the highest volume, which we had previously marked as our point of interest for an entry. As the price closed below the median Order Block, we noted its mitigation. After an internal CHoCH, it's directing us towards the main Order Block as a target.
👉 Smart Money Concepts Functions
Market Structure: identifies and marks key structural changes in the market, in order to visually highlight shifts in market trends and patterns. This feature is designed to alert you of significant changes in the market's behavior, signaling a potential shift from accumulation to distribution phase, or vice versa. It helps traders adapt their strategies based on evolving market dynamics.
Order Blocks: pinpoints crucial zones where large institutional investors ("smart money") have shown strong buying or selling interest recently. Order blocks can serve as a tool for identifying key levels for potential trade entries or exits.
FVGs (Fair Value Gaps): detects discrepancies between the perceived market value and actual market price, revealing potential areas for price correction. With its mitigation settings, you can fine-tune the FVG detection according to the magnitude of value misalignment you consider significant.
Liquidity Grabs: helps track "smart money" footprints by identifying levels where large institutional traders may have induced liquidity traps. Understanding these traps can aid in avoiding false market moves and optimizing trade entries.
Automatic Fibonacci Tool: Simplifying the task of identifying key Fibonacci retracement and extension levels, this tool ties Fibonacci levels to the structure for you. It aids in recognizing significant support and resistance levels, providing a clearer understanding of potential price movements.
The Smart Money Concepts trading strategy - combined with these dynamic features - becomes a powerful analytical asset for any trader, providing in-depth insights into market dynamics, trends, and potential opportunities.
👉 Algorithmic trend and dynamic support and resistance
Trend Rainbow: This proprietary feature uses our unique TRMA** method to define short-term, medium-term, and long-term market trends. It incorporates state-of-the-art visualization techniques to render the trend information in an intuitive, easily interpretable manner. It's a 21st-century tool designed for the modern trader who values both precision and simplicity.
Multi-Timeframe Moving Averages: This feature allows traders to simultaneously monitor moving averages across multiple timeframes, providing a comprehensive perspective on market trends. It helps identify dynamic support and resistance zones, key levels where price movements are likely to slow down or reverse. This function not only aids in planning potential trade entries and exits, but also calculates the precise percentage distance to these levels. Can be as well crucial for risk management, enabling traders to set stop losses and profit targets based on solid, data-driven analysis. The Multi-Timeframe Moving Averages function is a versatile tool that combines strategic planning and risk control into a single, easy-to-use feature.
👉 Unlock the Hidden Market Dynamics
Market Sessions: This feature - by default - provides a clear representation of the four major global trading sessions. Each session is distinctly marked on your trading chart, helping you visualize the specific time periods when these markets are most active. Recognizing these sessions is critical for understanding market dynamics, as the opening and closing of major markets can lead to significant price movements. Whether you're a day trader looking to exploit intra-day volatility or a long-term investor wanting to understand broader market trends, the Market Sessions feature can be a useful tool in your trading toolkit.
Divergence Functions: allow the use of unique indicators along with our proprietary ones to detect potential price reversals. As each asset has a different market maker, divergences can vary greatly across different charts and timeframes. With our Divergence Ranking Table, you can quickly determine which divergences have the highest success rates and which are the least successful on a given chart. This feature allows you to adapt your strategies to the most effective signals, enhancing your trading decisions and boosting your potential profits.
Volume Profile with delta: This feature may give traders an edge by providing an in-depth view of market activity. It illustrates the amount of trading volume at different price levels, combined with the 'delta', which is the difference between buying and selling volume. This information allows you to see areas of high trading activity and understand whether the volume is pushing the price up or down. This real-time insight into the market's supply and demand can be instrumental in identifying key support and resistance levels, predicting potential reversals, and recognizing where the market is likely to move. Similarly to Fibonacci tool, Volume Profile can be tied to the current market structure.
👉 Improve Trading Decisions
Range: This innovative feature assists traders in determining discount, premium, and equilibrium zones. It provides a unique way of visualizing price areas where a security could be overbought or oversold (premium or discount zones), and where the price is expected to be fair and balanced (equilibrium zone). Distance from current price is displayed in percentage terms, which can assist traders with crucial data for risk management and strategic planning. The Range function helps you identify the most favorable price zones for entries and set your stop-loss and take-profit levels more accurately.
Previous OHLC: This functionality offers the capability to display the previous Open, High, Low, Close values. It is primarily set on the daily timeframe and serves as an important reference for traders. Having an overview of these key levels from the previous day gives you a solid foundation on which to base today's trading decisions. Recognizing these levels can help you predict potential turning points in the market, providing an advantage in your trading strategy.
Smart Money Zones: our secret weapon for swing traders. Similarly to order blocks, these zones can accurately identify crucial areas of strong buying or selling interest by large institutional investors. However while Order Blocks focus on recent price action, Smart Money Zones take the whole chart into consideration, resulting in more established support and demand zones.
The summary graph combines six unique indicators (Momentum, Trend Strength, Volume, Volatility, Asset Strength, and Sentiment) along with Structure and Sessions. These indicators use our TRMA** method to provide a comprehensive overview of market dynamics. By consolidating these indicators into a single graph, traders can gain valuable insights into the overall market landscape.
** TRMA (Trend Rainbow Moving Averages) is a complex but customizable moving average matrix calculation that is designed to measure market trend direction, strength and shifting.
⭐ Conclusion
We hold the view that the true path to success is the synergy between the trader and the tool, contrary to the common belief that the tool itself is the sole determinant of profitability. The actual scenario is more nuanced than such an oversimplification. Our aim is to offer useful features that meet the needs of the 21st century and that we actually use.
🛑 Risk Notice:
Everything provided by trademasterindicator – from scripts, tools, and articles to educational materials – is intended solely for educational and informational purposes. Past performance does not assure future returns.
