FXGringo1.2

FXGringo - Decision Points

This indicator identifies support and resistance zones based on reference points provided in the levels field, interpreting them as potential areas of price reaction. From these points, the script plots strength levels, allowing the trader to visualize regions where the price may encounter natural barriers to equilibrium between supply and demand.

Although the internal calculations do not directly reveal the complete methodology, its logic can be compared to concepts similar to gamma levels (GEX), insofar as it seeks to map zones where price movement tends to be more sensitive due to the concentration of positions or relevant market flows.

How the Indicator Works:

Input of External Points:
The user manually provides price points that represent potential support or resistance levels.

Strength Classification:
The indicator processes these points and plots each level based on criteria such as distance from the current price, frequency of occurrence in the history, and pre-calculated volatility variation. This generates a visual and quantitative hierarchy among the provided levels.

Context Analysis:
Based on the interaction between price and these levels, the script identifies and plots zones of greater relevance—where the price tends to react, consolidate, or reverse.

Confluence Analysis:
Observe how the external levels align with peaks, troughs, and volume zones. The overlap of strong levels often indicates areas of great institutional interest.

Risk Management:
Use the identified levels to plan entry and exit points and stop-loss or take-profit placement, based on the relative strength of the levels.

Modern Conceptual Basis: The methodology, although proprietary, can be compared to how gamma levels reflect zones of greater price sensitivity relative to the market's aggregate exposure.

Conclusion:
This indicator acts as an advanced tool for interpreting support and resistance levels, using external data to build a dynamic map of market interest zones. Its operation can be seen as an analogy to gamma levels (GEX), identifying regions where the price tends to react more significantly due to liquidity concentration or position imbalance. This approach provides the trader with a refined view of the areas of influence of large players, assisting in making decisions with greater precision and confidence.