Balance Nodes

Balance Nodes is a market structure indicator that identifies price levels where the market has recently reached a state of balance between buyers and sellers. These are areas where price has repeatedly rotated around a central mean within a defined window, with enough movement and back-and-forth to confirm that both sides have actively participated. A break of price out of the Balance Node will likely lead to a surge in price in either direction.

In simple terms:
Balance Nodes mark zones where the market has previously agreed on “fair value” and is likely to react again in the future. Exiting the node may lead to a surge in price.

The script does not rely on arbitrary support and resistance or single candle patterns. Instead, it uses a rules based, multi condition approach to qualify a level before marking it on the chart.

Core Logic (How It Works)

For each new bar, the script continuously evaluates a rolling window of price action to determine whether the recent behavior represents a meaningful balance area.

• Defines a center line: Computes a moving average of price over the lookback window. This represents an approximate fair-value level for that period.
  
• Checks range vs typical movement: Measures the distance between the highest high and lowest low in the window and compares it to ATR. This helps filter out weak, low-interest ranges and keep only windows with real participation.
  
• Counts bars above and below the center: Evaluates how many closes are above the center line and how many are below. This helps confirm that both buyers and sellers have had some control during the window.
  
• Counts crosses through the center: Tracks how many times price crossed from above to below the center line (or vice versa). This confirms true rotation around the mean rather than slow drifting.
  
• Qualifies a Balance Node: A valid Balance Node requires enough range, enough closes on both sides of the center, and enough mean-crossing activity. Together, these conditions identify genuine battleground zones where both sides have been active.
  
• De-duplication and spacing logic: The script avoids marking new nodes too close to existing ones. If a potential node forms at nearly the same price as a previous node, it is ignored. This keeps the chart clean and focuses only on distinct, meaningful levels.
  

Visuals and What You See On Chart

1. Live Preview (optional): While a potential Balance Node is forming, a faint circle appears at the current center price. This shows developing balance before it is fully confirmed. The preview can be turned on or off.
   
2. Confirmed Balance Nodes: Once a window meets all conditions and passes de-duplication, the script locks in a Balance Node. A pair of circles is drawn at the midpoint of the formation window. The outer circle can scale in size based on the strength of the range, and a smaller inner circle marks the level itself. These do not repaint once confirmed.
   

The end result is a clean map of prior balance zones that often act as magnets, pivot areas, and return-to-value zones during future price movement.

How Traders Use Balance Nodes

• Magnet and target levels: Price often revisits prior balance areas when it moves too far away from them. These zones serve as logical magnets and profit targets for pullback and mean-reversion setups.
  
• Context for breakouts and trends: When price breaks away from a Balance Node and holds, that level becomes a key reference for trend continuation or potential failure. Retests can provide clear reaction points.
  
• Confluence with other tools: Balance Nodes work well when paired with gaps, moving averages, higher-timeframe structure, options-based levels, or other tools. When multiple signals align at a Node, the level often becomes high interest.
  
• Timeframe flexibility: Works on intraday charts for rotation and scalping context, and on higher timeframes for swing structure and trend mapping. Inputs can be adjusted per instrument and timeframe.
  

Key Settings (User Inputs)

• Lookback (bars ≈ days): Defines the size of the evaluation window. Larger windows find broader balance zones; smaller windows focus on more immediate structure.
  
• ATR length: Controls how ATR is calculated when normalizing the window range.
  
• Min (window range / ATR): Determines how strong the movement inside the window must be. Higher values reduce noise and produce fewer, more significant nodes.
  
• Min bars above and below level: Require a minimum number of closes on each side of the center line. Ensures real two-sided action, not one-directional drift.
  
• Min crosses above/below: Controls how much rotation around the center is required. Higher values produce fewer but higher-quality nodes.
  
• Min distance between holes (ATR): Prevents multiple nodes from forming at nearly the same price. Keeps the chart clean and focuses on distinct levels.
  
• Show Live Preview Hole: Toggles live preview markers on or off depending on trader preference.
  

Why Balance Nodes Is Invite Only

Balance Nodes is invite only because it represents proprietary logic developed through testing and refinement. It is not a simple moving average or off-the-shelf structure tool. The script combines several structural elements such as range behavior, mean rotation, participation balance, crossing frequency, and spacing controls into a cohesive engine for identifying meaningful balance zones. The internal logic is protected and not meant for open distribution.

Restricting access helps preserve the effectiveness of the tool. When a market structure method becomes widely copied, the signal can diminish as crowd behavior begins to influence the same levels. Invite-only access maintains a controlled user base and ensures that traders who use the indicator understand that it is a context tool, not a standalone trading system.

Important Notes and Disclaimer

Balance Nodes highlights historical balance zones and structural behavior but does not predict the future. It should be used as part of a complete trading plan that includes risk management, position sizing, and rules for entries and exits. Nothing in this script or description constitutes financial advice. Trading involves risk, and all decisions are your own.