OPEN-SOURCE SCRIPT
Delta Zones Buy/Sell Pressure
Updated
Script Description:
Delta Zones Buy/Sell Pressure Indicator
Description:
The "Delta Zones Buy/Sell Pressure" indicator, created by the original author "scarf", is a technical tool that unveils key areas of buying and selling pressure in the market. This indicator utilizes the concept of Delta, calculating differences between open, close, high, and low prices. When these differences exceed a threshold determined by the user-defined standard deviation, areas of intense buying (indicated by green boxes) and selling pressure (indicated by red boxes) on the chart are identified.
How It Works:
The indicator calculates Delta using various combinations of candle prices to determine buying and selling pressure. When Delta surpasses a certain level, indicated by the user-defined standard deviation, visual signals in the form of boxes on the chart are generated. These boxes highlight specific areas where buying or selling pressure is particularly strong, aiding traders in identifying potential entry and exit points in the market.
How to Use:
* When a green box is drawn, it indicates strong buying pressure in the market. This can be interpreted as a signal to consider long positions.
* When a red box is drawn, it indicates strong selling pressure in the market. This can be interpreted as a signal to consider short positions.
* Use these signals in combination with your own analysis and risk management strategies to make informed trading decisions.
Originality:
What makes this indicator original is its unique approach to identifying specific areas of buying and selling pressure. By calculating Delta in multiple ways and utilizing standard deviation as a filter, this indicator provides clear and concise visual signals about market activity. The combination of these features distinguishes it as a valuable tool for traders seeking a better understanding of market behavior. This modification differs from the original by displaying the information on the price chart with horizontal bars, below each delta, instead of an oscillator at the bottom similar to the volume indicator.
Final Recommendations:
Consider Market Trends:
Before making any trading decisions using the Delta Zones Buy/Sell Pressure Indicator, it is crucial to analyze the prevailing market trends. Assess the overall direction of the market, whether it's trending upward, downward, or moving sideways. Align your trades with the dominant trend to increase the probability of successful outcomes. The indicator's signals can be more reliable when they align with the broader market trend.
Evaluate Macro-Economic Factors:
Additionally, take into account macro-economic factors that could influence price movements. Factors such as economic indicators, geopolitical events, interest rate decisions, and global market sentiments can significantly impact the financial markets. Stay updated with relevant news and economic reports to anticipate potential market shifts. Understanding the broader economic context can help you interpret the indicator's signals within a more informed framework.
Practice Risk Management:
Regardless of the signals provided by the Delta Zones Buy/Sell Pressure Indicator, always implement effective risk management strategies. This includes setting stop-loss orders, diversifying your portfolio, and only risking a small percentage of your trading capital on each trade. By managing your risk, you can protect your investments and ensure longevity in the market, even during volatile periods.
Continuous Learning and Adaptation:
Financial markets are dynamic and constantly evolving. Continuously educate yourself about new trading strategies, technical analysis tools, and economic developments. Stay open to adapting your trading approach based on changing market conditions. Regularly reviewing your trading strategy and adjusting it according to your experiences and market feedback can significantly enhance your trading performance over the long term.
Seek Professional Advice if Necessary:
If you are uncertain about specific market trends, indicators, or economic factors, don't hesitate to seek guidance from financial advisors or professionals. Their expertise can provide valuable insights and help you make well-informed decisions, especially in complex or uncertain market environments.
By incorporating these recommendations into your trading approach, you can enhance your decision-making process, mitigate risks, and increase your overall chances of successful trading outcomes. Remember, the key to successful trading lies not only in the tools you use but also in your ability to interpret them within the broader market context.
Delta Zones Buy/Sell Pressure Indicator
Description:
The "Delta Zones Buy/Sell Pressure" indicator, created by the original author "scarf", is a technical tool that unveils key areas of buying and selling pressure in the market. This indicator utilizes the concept of Delta, calculating differences between open, close, high, and low prices. When these differences exceed a threshold determined by the user-defined standard deviation, areas of intense buying (indicated by green boxes) and selling pressure (indicated by red boxes) on the chart are identified.
How It Works:
The indicator calculates Delta using various combinations of candle prices to determine buying and selling pressure. When Delta surpasses a certain level, indicated by the user-defined standard deviation, visual signals in the form of boxes on the chart are generated. These boxes highlight specific areas where buying or selling pressure is particularly strong, aiding traders in identifying potential entry and exit points in the market.
How to Use:
* When a green box is drawn, it indicates strong buying pressure in the market. This can be interpreted as a signal to consider long positions.
* When a red box is drawn, it indicates strong selling pressure in the market. This can be interpreted as a signal to consider short positions.
* Use these signals in combination with your own analysis and risk management strategies to make informed trading decisions.
Originality:
What makes this indicator original is its unique approach to identifying specific areas of buying and selling pressure. By calculating Delta in multiple ways and utilizing standard deviation as a filter, this indicator provides clear and concise visual signals about market activity. The combination of these features distinguishes it as a valuable tool for traders seeking a better understanding of market behavior. This modification differs from the original by displaying the information on the price chart with horizontal bars, below each delta, instead of an oscillator at the bottom similar to the volume indicator.
Final Recommendations:
Consider Market Trends:
Before making any trading decisions using the Delta Zones Buy/Sell Pressure Indicator, it is crucial to analyze the prevailing market trends. Assess the overall direction of the market, whether it's trending upward, downward, or moving sideways. Align your trades with the dominant trend to increase the probability of successful outcomes. The indicator's signals can be more reliable when they align with the broader market trend.
Evaluate Macro-Economic Factors:
Additionally, take into account macro-economic factors that could influence price movements. Factors such as economic indicators, geopolitical events, interest rate decisions, and global market sentiments can significantly impact the financial markets. Stay updated with relevant news and economic reports to anticipate potential market shifts. Understanding the broader economic context can help you interpret the indicator's signals within a more informed framework.
Practice Risk Management:
Regardless of the signals provided by the Delta Zones Buy/Sell Pressure Indicator, always implement effective risk management strategies. This includes setting stop-loss orders, diversifying your portfolio, and only risking a small percentage of your trading capital on each trade. By managing your risk, you can protect your investments and ensure longevity in the market, even during volatile periods.
Continuous Learning and Adaptation:
Financial markets are dynamic and constantly evolving. Continuously educate yourself about new trading strategies, technical analysis tools, and economic developments. Stay open to adapting your trading approach based on changing market conditions. Regularly reviewing your trading strategy and adjusting it according to your experiences and market feedback can significantly enhance your trading performance over the long term.
Seek Professional Advice if Necessary:
If you are uncertain about specific market trends, indicators, or economic factors, don't hesitate to seek guidance from financial advisors or professionals. Their expertise can provide valuable insights and help you make well-informed decisions, especially in complex or uncertain market environments.
By incorporating these recommendations into your trading approach, you can enhance your decision-making process, mitigate risks, and increase your overall chances of successful trading outcomes. Remember, the key to successful trading lies not only in the tools you use but also in your ability to interpret them within the broader market context.
Release Notes
Detailed Improvements:1. Default Standard Deviation to 3.5 to to filter out noise.
2. User Customization: Introduced inputs for box colors and visibility, providing users with greater control over the script's appearance.
3. Encapsulation and Reusability: Encapsulated the delta calculation logic in a function for reusability and clarity.
4. Conditional Logic: Improved conditional logic for drawing and updating boxes, ensuring they are only created or adjusted when necessary.
5. Code Clarity and Maintainability: Enhanced the readability and maintainability of the code by using clear variable names and separating different parts of the logic.
Multi-Timeframe Analysis is incoming. Thanks for support!
Release Notes
Added alerts for new buy or sell delta pressure or absorption detection.Release Notes
Added buy/sell signals with arrows for clearer market direction insights.Release Notes
Fixed some issues and added optional price action ZigZag lines. The feature is disabled by default and can be enabled by checking 'Price Action Lines' in the indicator settings.Release Notes
How to Use optional ZigZag Lines with BoxesZigZag lines are like a tool to spot where price changes direction. When you turn on "Price Action Lines," these lines show up on your chart.
How Boxes and ZigZag Work Together:
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Spotting Trends: ZigZag lines make it easier to see when the market is going up or down. When they point up, and you see green buy boxes, it confirms that there’s strong buy pressure.
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Finding Important Levels: ZigZag lines also show important price levels, like support and resistance. If they match with big pressure boxes, you know that level really matters.
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Better Analysis: Use both together for a clearer picture. The boxes tell you how strong the buying or selling is at each level, while ZigZag shows the overall trend.
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Alerts: Combine buy/sell alerts with ZigZag lines for smarter signals. You’ll know when pressure is building, and the trend is changing.
In Short: The ZigZag lines show where the price is changing direction, and the boxes show where there’s strong buying or selling. Together, they help you see the bigger picture of what’s happening in the market.
Good profits!
Release Notes
New changes:Customizable Border Color and Thickness: Added new input parameters buyBoxBorderColor, sellBoxBorderColor, and boxBorderWidth to allow users to customize the color and thickness of the border for both Buy and Sell Pressure boxes. This provides greater flexibility in visualizing the trading zones on the chart.
Updated Box Drawing Logic: The box.new function for both Buy and Sell Pressure boxes was modified to incorporate the new border color and thickness inputs. The boxes now use the specified colors for the borders and apply the defined thickness, enhancing visual clarity.
Simplified Input Management: The new inputs were seamlessly integrated with the existing input groups, allowing traders to easily configure the appearance of the boxes through the input panel in the script settings.
These changes offer an improved level of customization, enabling users to better distinguish and emphasize the Buy and Sell zones on their trading charts.
Thanks to romanowsky for the feedback.
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.
t.me/nathantradeus
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.