Thrax - Intraday Market Pressure Zones

22 сент.

THRAX - INTRADAY MARKET PRESSURE ZONES

This indicator identifies potential support and resistance zones based on areas of significant market pressure. It dynamically plots these zones and adjusts their visibility based on real-time price action and user-defined thresholds. The indicator is useful for traders seeking to understand intraday market pressure, visualize zones of potential price reversals, and analyze volume imbalances at critical levels.

1. Support/Resistance Zones: Wherever the price retraces significantly from its high a support zone is drawn and when it retraces significantly from it low a resistance zone is drawn. The significant retracing is measured by the wick threshold percentage. For instance, if set to 75%, it implies price retracement of 75% either from high or from low for a particular candel
Volume delat: Displays volume delta information where the zones are formed. This can be used by trader to consider only those zones where delta is significant.

2. Breakout Detection: Monitors for price breakouts beyond established zones, deleting zones that are invalidated by price movement. when the price breaks a given zone with the threshold, it is considered to be mitigated and chances of trend continuation is decent.
Candle Coloring: Uses color codes (green, red, and yellow) to represent bullish, bearish, and indecisive (doji) candles, aiding quick visual assessment.

INPUTS

1. Wick Threshold (%): Sets the minimum wick percentage required for a candle to be considered a support or resistance candidate.

2. Breakout Threshold (%): Determines the percentage above or below a support or resistance zone that defines a breakout condition. if breaks a zone with the set threshold then the zone will be considered mititgated.

3. Max Number of Support/Resistance Zones: Limits the maximum number of support/resistance zones displayed on the chart, ranging from 1 to 5.

4. Show Wick Percentage Labels: Toggles the display of percentage values for upper and lower wicks on each candle.

TRADE SETUP

• Identifying Entry Points: Look for the formation of support or resistance zones. Wait for price to retrace to these zones. if you are willing to take risk, you can consider even zones with low delta. If you want to be more cautious you should consider zones with high delta.
  
  
• Volume Confirmation: Use the volume information to confirm the strength of the zone. Strong volume differences (displayed as labels) can indicate significant market pressure at these levels.
  
  
• Breakout Trades: If price breaks through a support/resistance zone by more than the breakout threshold, consider this a signal for a potential trend continuation in the breakout direction.
  
  
• Risk Management: Set stop-loss levels slightly outside of the identified zones to minimize risk in case of false breakouts. This can be set in input setting for breakout threshold.
  

Bonus Tip : Mark your significant highs and lows from where prices have retraced multiple times in the near past and if the zone is near these levels it can serve s a strong candidate of support or resistance


Therefore, in conclusion monitor the zones, based on delta and volume presence filter out the zone, wait for price retracement to the zone, intiate the trade with stop loss below zone with a set percentage.