OPEN-SOURCE SCRIPT
ThePawnAlgo
Updated
The Pawn Algo is a simple indicator that is useful for scalping in sync with a higher timeframe should only be use in clear trending markets.
What it does and How it does it?
The script is based of a simple pattern close above previous candle high means higher prices we can see it in a green bar. Close below previous candle low means lower prices we can see it in a red bar. Close inside previous candle range means price is going to consolidate do some kind of retracement or reversal we mark it in a black or dark color bar.
It plot an arrow and a liquidity level when it detects a change in sentiment from bullish to bearish or bearish to bullish.
It plot the Higher timeframe previous completed candle range into the selected Lower timeframe to easily see the HTF levels into the lower timeframe.
The HTF range change colors depending of previous HTF candles closes following the same idea, close above previous candle high means green range, close below previous candle low means red range and close inside means a gray range. Finally it plots the 50% of the HTF range and the previous close high and low.
Finally it draws a yellow value zone that is the difference between the previous candle close and 50% of the previous range. This zone is ideal for taking continuation trades in favor of the HTF trend.
How to use it?
You must first select a higher timeframe in minutes in the settings default value is 1440minutes then select a lower timeframe is the maximum timeframe in where the HTF will be visible. Default lower timeframe is 15minutes.
Then just wait for the HTF candle to close and engage in the LTF when price is around the value yellow zone in a premium or discount.
Green arrows are automatically plot when HTF is bullish and Red arrows when is bearish by default. But you can enable or disable the arrow signals liquidity levels or configure as you want. Making all signals visible or just the buys or sells.
The script is useful to easily identify the HTF draw on liquidity and recent key levels and then use the LTF structure to enter.
The indicator can be used to identify liquidity, price will seek this liquidity point sometimes sweep and then continue the move. if the liquidity or stop level is broken with a body is a clear change of direction.
What it does and How it does it?
The script is based of a simple pattern close above previous candle high means higher prices we can see it in a green bar. Close below previous candle low means lower prices we can see it in a red bar. Close inside previous candle range means price is going to consolidate do some kind of retracement or reversal we mark it in a black or dark color bar.
It plot an arrow and a liquidity level when it detects a change in sentiment from bullish to bearish or bearish to bullish.
It plot the Higher timeframe previous completed candle range into the selected Lower timeframe to easily see the HTF levels into the lower timeframe.
The HTF range change colors depending of previous HTF candles closes following the same idea, close above previous candle high means green range, close below previous candle low means red range and close inside means a gray range. Finally it plots the 50% of the HTF range and the previous close high and low.
Finally it draws a yellow value zone that is the difference between the previous candle close and 50% of the previous range. This zone is ideal for taking continuation trades in favor of the HTF trend.
How to use it?
You must first select a higher timeframe in minutes in the settings default value is 1440minutes then select a lower timeframe is the maximum timeframe in where the HTF will be visible. Default lower timeframe is 15minutes.
Then just wait for the HTF candle to close and engage in the LTF when price is around the value yellow zone in a premium or discount.
Green arrows are automatically plot when HTF is bullish and Red arrows when is bearish by default. But you can enable or disable the arrow signals liquidity levels or configure as you want. Making all signals visible or just the buys or sells.
The script is useful to easily identify the HTF draw on liquidity and recent key levels and then use the LTF structure to enter.
The indicator can be used to identify liquidity, price will seek this liquidity point sometimes sweep and then continue the move. if the liquidity or stop level is broken with a body is a clear change of direction.
Release Notes
In this last version we added the option of selecting X Days for the HTF, so now you can use higher timeframes like a week 5D or a month 20D. LTF visibility is increased to the maximum of 1440 minutes. This is useful to use for example 2Days in the HTF and 3H as a lower timeframe, this facilitates the search for optimal entries around the open or 50% to continue in the HTF direction. Also you can easy detect a change of sentiment in the HTF with the colors of the boxes. So you can select now almost any configuration you want in HTF to look in the LTF.A visual circle is added when price reach for the first time a HTF high or low that way you can easily detect it in the lower timeframe. Color green means HTF bullish and we have taken the high. Red means HTF bearish and we just have taken the low. When is yellow means ultimate discount or premium zone reached if price is going to continue the HTF trend should reject it, if not probably we have change of sentiment in HTF.
Finally we added some colors to labels, the HTF close label now change colors according to the last HTF closed candle, and the HTF 50% label change colors according the sentiment meaning the last confirmed HTF close above or below a previous high or low.
Release Notes
Added the HTF range options of weeks and months to facilitate the selection of the HTF range, now you can select 1-365Days, 1-12Months or 1-52W ranges. This is useful for very Long term analysis you can use 3-4Months as the HTF and 4H or daily as a LTF to quickly see the Long term Key levels.
Finally added and option to see only signals that are in the value yellow zone, meaning if we are in a bullish trend we expect to see price hitting discount below the previous X range close or below the 50% of HTF range and then continue the trend, only when this happens the arrow is plotted. If we are bearish we expect price hitting premium levels above previous X range close or above the 50% of HTF then sell signal appears when the option is active.
Release Notes
Made some bug fixes in the visualization for the higher timeframes when the minute option was selected and made improvements in the configuration section to be more organized. Added tips to the range selection options.Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
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