Market Control Levels

Market Control Levels (MCL)

A market structure indicator that highlights control levels derived from price momentum + volume percentile behavior.
It identifies potential Buy Control and Sell Control levels when the market shows statistically significant activity.

Designed as a context and level-mapping tool, not an automatic entry/exit system.

🔹 Core Concept

This indicator evaluates each bar using:

Momentum (price change over a short lookback)

Volume percentile rank (relative volume compared to recent history)

When momentum and volume align strongly enough, the script locks in a control level:

Buy Level is mapped from the bar’s low during strong bullish pressure

Sell Level is mapped from the bar’s high during strong bearish pressure

These levels can act as reference zones for reaction, continuation, or rejection.

⚙️ How It Works
1) Percentile Ranking

Volume PercentRank measures how “high” the current volume is relative to the past Comparison period.

Momentum PercentRank measures how large the current momentum is relative to the same window.

2) Weighted Pressure Score

Bars are classified into volume zones:

High volume zone

Medium volume zone

Low volume zone

Each zone applies a configurable weight, producing a final score (rank_2) that reflects directional pressure intensity.

3) Control Level Creation

When the pressure score crosses the user-defined threshold:

Rank 2 ≥ Threshold → updates Buy Level

Rank 2 ≤ -Threshold → updates Sell Level

Levels remain active until replaced by a new qualifying event.

✅ Use Cases

Marking areas where buyers or sellers showed strong control

Mapping reaction levels during pullbacks or extensions

Adding a context layer to other systems (VWAP, Volume Profile, Orderflow, etc.)

⚠️ Disclaimer

This indicator is a market analysis tool designed to highlight statistically significant pressure-based levels.
It does not provide guaranteed buy/sell signals and should be used with proper risk management and a complete trading plan.