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Candlestick analysis

[Holy] Candle BlocksThis experimental indicator overlays candles from higher timeframes directly onto your current chart. The concept of Candle Blocks aims to offer an intuitive way to view price action across multiple periods simultaneously. FEATURES Multiple Timeframe Support: Choose from various timeframes to overlay, such as hourly, daily, weekly, etc. Customizable Opacity: Adjust the transparency of the overlay to ensure the primary chart remains visible. Color Coding: The overlay uses distinct colors to indicate bullish and bearish candles from the higher timeframe. Real-time Update: The overlay updates in real-time as new higher timeframe candles are formed. USE CASES Trend Confirmation: Validate the trend direction of your primary timeframe by examining higher timeframe Candle Blocks. Support & Resistance: Identify key support and resistance levels more clearly by seeing them on multiple timeframes. Fourth-Dimensional Decision Making: This indicator aims to move towards a 4th-dimensional trading perspective, where time is considered as a vector. This helps traders to always make decisions with multiple timeframes in mind. EXPERIMENTAL This indicator is in its experimental stage, and future updates will be made based on its effectiveness and the feedback received. If you find this concept useful or have suggestions for improvement, please provide feedback. This will aid in further development and refinement of the indicator.
Pine Script™ indicator
by sacredprofit
10
Fibonacci HH LL TRAMA BandLuxAlgo's Trend Moving Adaptive Moving Average was used as a reference to create bands by reading the highest and lowest prices of past bars based on Fibonacci numbers and then multiplying them by the Fibonacci ratio. LuxAlgo/ LuxAlgo/ In particular, the so-called TRAMA is characterized by its adaptation to the average of the highest and lowest prices over a specific period of time and is used to identify support/resistance. In order to apply this feature to the maximum extent possible, I used the high or low prices as the source of input, rather than the closing price. For example, src = high not original like src = close In addition, I created 6 levels by multiplying the Fibonacci ratio //Midline mah = ama1 mal = ama2 m = (mah + mal)/2 //Half Mean Range dist = (mah - mal)/2 //Levels h6 = m + dist * 11.089 h5 = m + dist * 6.857 h4 = m + dist * 4.235 h3 = m + dist * 2.618 h2 = m + dist * 1.618 h1 = m + dist * 0.618 l1 = m - dist * 0.618 l2 = m - dist * 1.618 l3 = m - dist * 2.618 l4 = m - dist * 4.235 l5 = m - dist * 6.857 l6 = m - dist * 11.089 If you want to use it for scalping, such as 15 minutes, you can include Fibonacci numbers such as 21,34,55 for a quick reaction type to detect the trend. Also, by including Fibonacci numbers such as 89,144,233, you can see where you stand in the larger trend. Some examples are included below. For Investors BTCUSDT 1day Chart Fibonacci number "55" For Daytraders BTCUSDT 4hour Chart Fibonacci number "34" For Scalpers BTCUSDT 15min Chart Fibonacci number "55" BTCUSDT 15min Chart Fibonacci number "89" BTCUSDT 15min Chart Fibonacci number "233" Fibonacci numbers are 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, etc., Fibonacci ratios are 0.618, 1.618, 2.618, 4.236, 6.854, 11.089, etc.,
Pine Script™ indicator
by FibonacciFlux
Find Highest, Lowest, and 50% Value BarsThe Time Range Max Min Indicator is a powerful tool designed to analyze price data within a specific time frame. This indicator allows traders and analysts to identify the maximum and minimum price levels that occurred during a user-defined time range. It provides valuable insights into price volatility and helps traders make informed decisions by pinpointing key support and resistance levels. The Time Range Max Min Indicator also calculates the midpoint or 50% level within the selected time frame, aiding in trend analysis and potential reversal points. Its user-friendly interface makes it easy to customize time intervals, ensuring flexibility in your analysis. This indicator is indispensable for day traders, swing traders, and investors looking to optimize their entry and exit strategies. By visualizing the price extremes and central tendency, it enhances overall market awareness and risk management. Utilize this tool in conjunction with other technical indicators to fine-tune your trading strategies. With its real-time updating capabilities, it provides dynamic insights into changing market conditions. Whether you're a novice or an experienced trader, the Time Range Max Min Indicator is an essential addition to your technical analysis toolkit, helping you navigate the markets with precision.
Pine Script™ indicator
by Sniper_fx_ita
Range Breakout Signals (Intrabar) [LuxAlgo]The Range Breakout Signals (Intrabar) is a novel indicator highlighting trending/ranging intrabar candles and providing signals when the price breaks the extremities of a ranging intrabar candles. 🔶 USAGE The indicator highlights candles with trending intrabar prices, with uptrending candles being highlighted in green, and down-trending candles being highlighted in red. This highlighting is affected by the selected intrabar timeframe, with a lower timeframe returning a more precise estimation of a candle trending/ranging state. When a candle intrabar prices are ranging the body of the candle is hidden from the chart, and one upper & lower extremities are displayed, the upper extremity is equal to the candle high and the lower extremity to the candle low. Price breaking one of these extremities generates a signal. The indicator comes with two modes, "Trend Following" and "Reversal", these modes determine the extremities that need to be broken in order to return a signal. The "Trend Following" mode as its name suggests will provide trend-following signals, while "Reversal" will aim at providing early signals suggesting a potential reversal. 🔶 DETAILS To determine if intrabar prices are trending or ranging we calculate the r-squared of the intrabar data, if the r-squared is above 0.5 it would suggest that lower time frame prices are trending, else ranging. This approach allows almost obtaining a "settings" free indicator, which is uncommon. The intrabar timeframe setting only controls the intrabar precision, with a timeframe significantly lower than the chart timeframe returning more intrabar data as a result, this however might not necessarily affect the displayed information by the indicator. 🔶 SETTINGS Intrabar Timeframe: Timeframe used to retrieve the intrabar data within a chart candle. Must be lower than the user chart timeframe. Auto: Select the intrabar timeframe automatically. This setting is more adapted to intraday charts. Mode: Signal generation mode. Filter Out Successive Signals: Allows removing successive signals of the same type, returning a more easily readable chart.
Pine Script™ indicator
by LuxAlgo
10
Extended Hour CandleThe Extended Hour Candle shows extended hour candle formations on the Daily chart. This indicator can be useful for those who want to analyse price movements during extended trading sessions without switching to intraday charts with "Extended trading hours" enabled. How to Use: Add the Extended Hour Candle indicator to a TradingView chart. Adjust the color settings according to personal preferences, using the options to set the desired colors for up and down candles. See the Candle during extended trading hours on the Daily chart
Pine Script™ indicator
by fyntrade
HTF Fair Value Gap [LuxAlgo]The HTF Fair Value Gap indicator aims to display the exact time/price locations of fair value gaps within a higher user-selected chart timeframe. 🔶 USAGE The indicator can be used to detect higher time frame fair value gaps. Detected historical HTF FVG are displayed as changes in chart background colors, with a green color indicating a bullish FVG and red a bearish FVG. The most recent HTF FVG is displayed as a candle to the right of the most recent price candle. Dashed lines indicate the exact location of the FVG upper and lower extremities. The wicks of the FVG candle indicate the price deviation from the FVG extremities after its formation and can help determine where the FVG is located within a trend. A "Status" dashboard is included to indicate if the FVG is mitigated or not. This is also indicated by the border of the FVG candle, with a solid border indicating an unmitigated FVG. 🔶 SETTINGS Timeframe: Chart timeframe used to retrieve the fair value gaps 🔹 Style Offset: Offset to the right (in bars) of the FVG candle from the most recent bar. Width: Width (in bars) of the FVG candle. 🔹 Dashboard Show Dashboard: Determine whether to display the dashboard or not. Location: Location of the dashboard on the chart. Size: Size of the dashboard on the chart.
Pine Script™ indicator
by LuxAlgo
28
HTF Candle Insights (Expo)█ Overview The HTF Candle Insights indicator helps traders see what's happening in larger time frames (HTF) while they're looking at smaller ones. This tool lets traders get a complete picture of market trends and price movements, helping them make smarter trading choices. It's really useful for traders who want to understand the main market trends without constantly switching between different chart timeframes. In simpler terms , this indicator brings the big picture into the smaller frame, so traders don't miss out on what's important while focusing on the details. █ How It Works The indicator plots HTF candles on the existing chart, allowing users to view them concurrently with the candles of the current timeframe. This dual visual representation helps in discerning the prevalent market trends and significant price levels from both the current and higher timeframes. █ How to Use Trend Analysis Traders can leverage this indicator to analyze overall market trends by observing HTF candles alongside the current timeframe candles. Recognizing HTF trends aids in aligning trades with the dominant market movement, potentially increasing the probability of successful trades. Support and Resistance Identification By viewing the high, low, and mid-levels of HTF candles, traders can identify potential support and resistance zones, enabling them to establish strategic entry and exit points, place stop-losses effectively, and manage risk proficiently. █ Settings Timeframe and Candle Amount: Users can specify the higher timeframe and the number of HTF candles they wish to visualize on their current chart. Visual Adjustments: Traders can customize the color schemes for upward and downward candles and their wicks, and adjust the visibility and colors of the range lines, allowing for a tailored visual experience. Range Lines: Users have the option to display the high/low range of the displayed candles, and, if preferred, the mid-range line, enabling them to gain insights into significant price levels and ranges. Table Display: The indicator offers the ability to display a table, which provides an overview of the current chart's timeframe and the specified HTF. ----------------- Disclaimer The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Pine Script™ indicator
by Zeiierman
18
Engulfings/DojiDescription of the Indicator: The "Engulfings/Doji" indicator, is designed to assist traders in identifying significant candlestick patterns on price charts. This indicator focuses on two primary candlestick patterns: Bullish Engulfing and Bearish Engulfing, as well as the Doji pattern. It provides valuable insights into potential price reversals or continuations. Here's how it works and how to use it: Concepts Underlying the Calculations: Bullish Engulfing and Bearish Engulfing Patterns: Bullish Engulfing patterns occur when a candle's open and close prices are lower than the previous candle's open and close, and the current candle completely engulfs the previous one. Bearish Engulfing patterns are the opposite, with the current candle's open and close prices higher than the previous candle's open and close, completely engulfing it. Doji Pattern: The indicator also detects Doji candles. A Doji is characterized by a small or nearly non-existent body, indicating uncertainty or market indecision. Time Filtering (Sig_Time): The indicator applies time-based filters to consider these patterns only during specific trading sessions or hours. This helps traders focus on more relevant signals during active market times. Higher Timeframe (HTF) Engulfing Patterns: Additionally, the indicator can display HTF (Higher Timeframe) Engulfing patterns on the current chart, allowing traders to identify stronger signals occurring on higher timeframes. How to Use the Indicator: The indicator identifies and visually represents Bullish Engulfing, Bearish Engulfing, and Doji patterns on the price chart. The colors of these patterns can be customized based on their significance and the time of occurrence. Traders can set a maximum allowable body size for Doji patterns using the "Doji's Max Body size" input. The "Show HTF Engulfings" input allows traders to display HTF Engulfing patterns on the chart. Traders can choose not to display Doji patterns on the 1-minute (M1) timeframe by enabling the "Don't display Doji on M1" option. Candlestick patterns and Doji signals are displayed with appropriate symbols and colors to help traders identify potential trading opportunities. The time-based filtering enhances the relevance of the signals presented by the indicator.
Pine Script™ indicator
by FYMDGLV
5
Price Variation Percent (PVP)This indicator shows the percentage of price variation, depending on the length of bars that the user chooses. At a glance you can see if the price jumps in volatility and how often it does so. Very useful for scalping. The upper and lower bands are limits of price variation in percentage, therefore when there is a crossing above or below you can immediately see how volatile the asset is and between what percentages of change it is moving.
Pine Script™ indicator
by Jompatan
Candle Averages (Jonzi/Galaxy) with AlertsThis indicator is used to highlight outlying candles. Our script takes the average of the trailing candles and then highlights and/or places a symbol at the candles outside the average. Example: Your settings use the previous 20 candles and combine the range of each candle. Divide by 20 and get the average. Let's assume the average is $10 Now if you have your settings at highlighting candles 50% larger than the average, once a candle gets to $15, the indicator would trigger the candle to be highlighted and/or place a symbol of your choice. In case you don't want to pay attention to the consolidation, you can use the alerts feature. Just go on the timeframe you'd like to be notified on, set an alert for either a down close or up close trigger.
Pine Script™ indicator
by galaxytradespa
Buy/Sell BoxThis indicator tries to identify the points where the price exceeds or falls below a rectangle based on the opening and closing prices of the previous period, the creation of the boxes occurs when a doji is detected therefore it will calculate the coordinates of the rectangle that will be drawn around it, therefore the indicator offers buy or sell signals based on this logic. Specifically, the buy signal is generated if the closing price is above the top of the rectangle and satisfies some previous price conditions while the sell signal is generated if the closing price is below the bottom of the rectangle and satisfies some conditions of previous prices within a further threshold based on the Ema 150. Lines are then drawn on the graph to visually display the extreme price levels, which can be useful for any confirmation of buy and sell signals, Stop Loss and Take Profit, Trend Filter (to visually understand if the trend is bullish or bearish) A potentially effective trading strategy could involve identifying buy and sell signals near the extreme price level lines drawn by the indicator. This approach can be used to try to improve the accuracy of your trading signals and make more informed decisions. For example: When you receive a buy or sell signal based on the dojis and rectangles generated by the indicator, check whether the price is also near one of the extreme price level lines. If you are receiving a buy signal and notice that the current price is near a low of the lower level line, this may further confirm the buying opportunity, as the price is near a significant resistance level. On the contrary, if the sell signal was close to a maximum price level it could confirm an excellent short entry. It is also possible to use the boxes as reference points to set the stop loss and take profit levels. If you are entering a buy position, you might consider setting your stop loss just below an upper line of the last box. Additionally, you may want to set your take profit near a higher price level if you are looking to maximize profits. This will help manage risks and protect your capital.
Pine Script™ indicator
by AleSaira
Encapsulation BoxThe “Encapsulation Box” indicator is designed to locate areas of the chart where the highs and lows of candlesticks are “embedded” or enclosed within the body of a previous candlestick. This setup indicates a significant contraction in the market and can provide important trading signals. Here's how it works in more detail: Detecting contraction: The indicator looks for situations where the price range of the candles is very narrow, i.e. when subsequent candles have highs and lows that are contained within the range of a previous candle. This condition indicates a contraction in the market before a possible directional move. When a contraction is detected, the indicator draws a rectangle around the area where the highs and lows of the candles are embedded. The rectangle has its upper vertex corresponding to the maximum of the candles involved and its lower vertex corresponding to the minimum. The width of the rectangle is defined by can be customized by the user. A key feature of this indicator is the horizontal line drawn outside the rectangle. This line is positioned in the middle of the rectangle and represents 50% of the range of the rectangle itself. This line acts as a significant support or resistance level depending on the direction the contraction breaks. The indicator can generate buy or sell signals when a break in the rectangle or horizontal line occurs. For example, if the price breaks above the rectangle and the horizontal line, it could generate a buy signal, indicating a possible uptrend. Conversely, if the price breaks below the rectangle and the horizontal line, it could generate a sell signal, indicating a possible downtrend.
Pine Script™ indicator
by AleSaira
2
Ruth Buy/Sell Signal for Day Trade and Swing TradeRuth is based on the most known technical indicators and designed for intraday traders. Ruth's aim is to find the best Buy/Sell points and decide to stop loss point with minimum Loss also Ruth tries to find multiple Profit points as TP1/TP2/TP3/TP4/TP5. Ruth was designed based on the heat map colors to be user-friendly and easy to read. While cold color preferred for Short positions, warm colors preferred for Long positions. The most important feature of Ruth is that after the signal is generated, the candles in which the profitable levels are painted one by one with their own special color codes, so that even the most inexperienced users can understand where they should close their positions. There are two types of signal Ruth can produce for fast trade. Short Signal: These signals means market tends to be move to down. Short Stop Loss Point: This is the maximum risk for the position. Shown with single red line inside of the signal. Short Entry Point: This is the best entry price for short side position. Shown with single baby blue line inside of the signal. Short Take Profit (TP1): This level represents the profit level the signal is most likely to reach. Shown with single blue line inside of the signal. Short Take Profit (TP2): This level represents the profit level with a high probability of the signal occurring. Shown with single light purple line inside of the signal. Short Take Profit (TP3): This level represents the profit level with an intermediate probability of the signal occurring. Shown with single dark purple line inside of the signal. Short Take Profit (TP4): This level represents the profit level with a low probability of the signal occurring. Shown with single light lilac line inside of the signal. Short Take Profit (TP5): This level represents the profit level with a tight probability of the signal occurring. Shown with single dark lilac line inside of the signal. Long Signal: These signals means market tends to be move to up. Long Stop Loss Point: This is the maximum risk for the position. Shown with single red line inside of the signal. Long Entry Point: This is the best entry price for short side position. Shown with single baby blue line inside of the signal. Long Take Profit (TP1): This level represents the profit level the signal is most likely to reach. Shown with single greenish yellow line inside of the signal. Long Take Profit (TP2): This level represents the profit level with a high probability of the signal occurring. Shown with yellow purple line inside of the signal. Long Take Profit (TP3): This level represents the profit level with an intermediate probability of the signal occurring. Shown with single dark yellow line inside of the signal. Long Take Profit (TP4): This level represents the profit level with a low probability of the signal occurring. Shown with single orange line inside of the signal. Long Take Profit (TP5): This level represents the profit level with a tight probability of the signal occurring. Shown with single dark orange line inside of the signal. Timeframe: In general best and fastest results occurred in shorter timeframes like 1 min / 5 mins / 15 mins but feel free to try higher timeframes. Tips & Tricks: 1) Gray line drawn ot the graph represents Dema, we suggests you to go on Short Singals under gray line and go on Long Signals upper gray line. 2) Mostly, Signals easily reach their TP2 / TP3 levels and then generally there is reaction or take profit desire so commodity price turns the opposite direction. If in short time price won't turn to Signal direction close position. 3) Don't forget, every positions has own risks and profits but trade in main trend is crucial.
Pine Script™ indicator
by akselanil
1
Session CandlesThis indicator is designed to visually represent different trading sessions on a price chart, highlighting candlestick colors to distinguish between bullish (upward movement) and bearish (downward movement) trends during various market sessions. Here's an overview of how the indicator works: 1. Session Definition: The indicator defines four distinct trading sessions: - London Session: Typically covering the European trading hours. - New York AM Session: Representing the morning hours of the New York trading session. - New York PM Session: Representing the afternoon hours of the New York trading session. - Asia Session: Encompassing the trading hours of the Asian markets. 2. Configuration Options: Users can customize the behavior of the indicator through input options. For each session, users can enable or disable the display of session-specific candles. 3. Candle Coloring: The indicator determines the color of candles based on the following criteria: - For each session, it checks whether the current candle's closing price is higher than its opening price. - If the closing price is higher, the candle is considered bullish, and a user-defined green color is used for the candle. - If the closing price is lower, the candle is considered bearish, and a user-defined red color is applied. 4. Display: The indicator then applies the calculated candle colors to the respective candles of each trading session on the price chart. This visual distinction helps traders quickly identify the prevailing trend during different market sessions. To use the indicator, traders can overlay it on their price charts in TradingView. By enabling or disabling specific trading sessions, they can focus on the trends and price movements during those specific time periods. Please note that the actual appearance of the indicator on the chart depends on the user's chosen settings for session enablement and color preferences.
Pine Script™ indicator
by SIeyder
5
Fibonacci TradingFibonacci Trading This simple script draw Fibonacci Retracement to define pullback level and draw Fibonacci Extension to define target level of a upward wave or doward wave 1. Upward wave 1.1 Fibonacci Retracement + Fibonacci Retracement measuare from support to nearest resistance on the right. + Retracement Level 0 named as "Breake Even" + Retracement Level 100 named as "Long Invalidation" + Retracement Level 50 and 61.8 is ploted as blue line + The zone between Retracement Level 50 and 100 is filled by blue color and named as "Buy zone" 1.2 Fibonacci Extension + Fibonacci Extension measuare from Retracement Level 61.8 to Retracement Level 0 + Fibonacci Extension Level 161.8 named as "Tp1 (Target point 1)" + Fibonacci Extension Level 261.8 named as "Tp2 (Target point 2)" 2. Doward wave 2.1 Fibonacci Retracement + Fibonacci Retracement measuare from resistance to nearest support on the right. + Retracement Level 0 named as "Breake Even" + Retracement Level 100 named as "Short Invalidation" + Retracement Level 50 and 61.8 is ploted as red line + The zone between Retracement Level 50 and 100 is filled by red color and named as "Sell zone" 2.2 Fibonacci Extension + Fibonacci Extension measuare from Retracement Level 61.8 to Retracement Level 0 + Fibonacci Extension Level 161.8 named as "Tp1 (Target point 1)" + Fibonacci Extension Level 261.8 named as "Tp2 (Target point 2)" 3. Trading Setup 3.1 Long Only: Only display Fibonacci of Upward wave 3.2 Short Only: Only display Fibonacci of Doward wave 3.3 Both: Display both Fibonacci of Upward wave and Doward wave
Pine Script™ indicator
by inno14
19
Psychological Support/Resistence [BigBeluga]The Psychological Support/Resistance indicator aims to provide the user with hypothetical support and resistance zones that are likely to provoke a strong reaction in price, either in both directions, providing good bouncing zones or significant movements once those levels are breached. 🔶 CALCULATION The script takes into consideration the total number of sequential candles moving in the same direction, as determined by the user's settings. When this sequence is identified, a level is created. A level is considered broken when the candle's close is above the top/bottom of the level. Users have the option to select the width of the area based on the Average (AVG), Open, or Close. AVG will provide the average width of the level of the area. Close will offer a broader range to work with. Open will provide a very narrow area. 🔶 METHODOLOGY The idea behind these areas is that the price will be more likely to produce either a substantial move in the ongoing direction or, when breached, a strong price reaction. The more the support level is touched or tested, the more likely it is to break. The longer it has been since its creation and the less it has been tested, the more likely it is to offer strong support or resistance. Wicks starting to close above the level will indicate a potential breakout to the upside or downside if a candle manages to close above it. 🔶 INPUTS Users have the option to determine the number of sequential candles. Users also have the option to decide how many zones to display on the chart. Color changes are possible. The possibility to show volume on the creation of the zone is included."
Pine Script™ indicator
by BigBeluga
22
Number of Bars CheatSheetA regular trading day on the New York Stock Exchange (NYSE) consists of two main sessions: the Opening Auction and the Closing Auction, separated by a continuous trading session. Here's a breakdown of the trading day: 1. **Pre-Opening Session**: This session starts at 4:00 AM Eastern Time (ET) and lasts until 9:30 AM ET. During this time, there is limited trading activity, and orders can be entered and canceled. However, most of the trading activity doesn't occur until the regular trading session begins. 2. **Regular Trading Session**: The regular trading session on the NYSE starts at 9:30 AM ET and lasts until 4:00 PM ET. This is the primary trading session where the majority of price bars are formed. 3. **Closing Auction**: After the regular trading session ends at 4:00 PM ET, there is a closing auction period that typically lasts until 4:10 PM ET. During this time, there is a final price discovery process where orders are matched to determine the closing price for each security. So, during the regular trading session, which is the main focus for most traders and investors, there are a total of 6.5 hours of trading. Trading occurs continuously during this time, with price bars being formed based on the time frame you're looking at. The most common time frames for price bars are one minute, five minutes, 15 minutes, 30 minutes, and one hour, among others. Therefore, the number of price bars in a regular trading day on the NYSE will depend on the time frame you are using for your analysis. For example, if you are using one-minute bars, there will be 6.5 x 60 = 390 price bars in a regular trading day.
Pine Script™ indicator
by thebearfib
Contraction Box & Doji LinesContraction & Doji Lines indicator is designed to identify and visualize potential support and resistance levels on a price chart. It does this by detecting doji candlestick patterns and drawing horizontal lines from the middle of the doji bodies to the right. Additionally, it also highlights price contraction zones with colored boxes. The indicator first identifies doji candlestick patterns that it suggests indecision in the market, a horizontal line and these horizontal lines can act as potential support or resistance levels. Traders can observe price reactions around these lines. If the price approaches a line and bounces off it, it may indicate a significant level in the market. In addition to doji lines, this indicator also highlights price contraction zones. When a contraction zone is detected, a colored box is drawn to highlight this zone. The box extends from the fifth bar ago (left side) to the current bar (right side), with the highest high and lowest low of the identified zone. The color and width of this box can be customized using the "Box Line Border Color," "Box Background Color," and "Box Width" parameters. A possible strategy could be can use the doji lines as potential support and resistance levels to make trading decisions. For example, if the price breaks above a doji line and holds, it may indicate a bullish signal. The colored boxes highlight areas of price contraction, which often precede significant price movements. Traders can use these zones to anticipate potential breakouts or breakdowns. For example, you might enter a long (buy) position if it anticipate a breakout from a contraction zone with a target price set above the breakout level. Conversely, you might enter a short (sell) position if they anticipate a breakdown from a contraction zone with a target price set below the breakdown level.
Pine Script™ indicator
by AleSaira
7