OPEN-SOURCE SCRIPT
Search for consolidations - AstroHub
The indicator is designed to identify consolidation periods on the chart of a trading instrument.
Key factors and parameters to consider when using this indicator:
How to use the indicator:
Important points to consider when using this indicator:
I hope this description helps you better understand and assess the functionality and application of this indicator. Good luck with your usage!
Key factors and parameters to consider when using this indicator:
- 1. Consolidation length (consol_length): This parameter allows you to set the length of the period in which consolidation will be sought. The higher the value, the longer consolidation periods will be taken into account. The recommended value is 20.
- 2. Calculation of the mathematical model: The indicator is based on a mathematical model that calculates the average price range (avg_range) within the specified consolidation period. Then, the exponential moving average of the obtained values is averaged (ta.rma) to obtain consolidation. If the price range is smaller than the consolidation value, the current period is considered consolidation.
- 3. Chart display: The program allows you to display consolidation on the chart as a label (plotshape) beneath the candlesticks. Consolidation will be shown in blue with the label "Consolidation". The indicator is placed below the current candlesticks.
How to use the indicator:
- 1. Load the script into your market analysis platform (e.g. TradingView).
- 2. Set the desired consolidation length (consol_length).
- 3. The indicator will automatically calculate consolidation based on the specified length.
- 4. Blue labels with the text "Consolidation" will be displayed on the chart for each consolidation period.
Important points to consider when using this indicator:
- 1. The indicator does not predict the direction of price movement after consolidation. It only shows consolidation periods on the chart.
- 2. The results of the indicator may vary depending on the chosen consolidation length. It is recommended to conduct several experiments with different values to find the optimal period for the instrument and timeframe.
I hope this description helps you better understand and assess the functionality and application of this indicator. Good luck with your usage!
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
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.