I have thought of a very specific and different idea for an indicator, I hope it can be coded in the way I describe below...
Let me explain:
- - It would aid in detection of s/r clusters (how strong a given level is, or set of levels)
- It is different to most indicators in that there is no parameters involved, and all levels are in the code itself...
- * This would require the user to edit the .lua file and add price levels to the code themselves
- ** This is so that it is easier to add levels in case there are thousands of levels (imagine a thousand parameters to be typed in each time?)
Each level has it's own "score" (explained below)
** Also this would mean this indicator would be asset specific. So for each copy of the indicator file, it can only work on one asset because of the price levels in it.
It is an oscillator below the chart
On every candle open, reset the "confidence counter" variable to 0
User will set levels in the code (example of how to easily add many levels with a "score" each appreciated)
When a tick price crosses that level (better yet, mid tick price (ask + bid) / 2)), add X to the confidence counter.
Minus numbers for crossing below
Plus numbers for crossing above
The "X" is defined by user in the code. Each level has an "X" They can be added as a tuple or similar?e.g: ('0.84645', '4) for Price 0.84645, Score 4
For example: A user has a monthly UP fractal price level that he belives is a strong S/R, and it has been assigned a "5" X value, lets call it 1month_line
A user has got a 15m UP fractal price level, and it has been assigned a "2" X value, lets call it 15m_line
When candle on chosen timeframe open is below the level, and mid tick price (high) crosses above the 15m_line, the confidence counter is now "2" and this displays on the oscillator...
But then tick price reverses back (still same timeframe candle) and is below the 15m_line, so counter is now 0...
Then price goes up again, and crosses both 15m_line and 1month_line, the confidence counter now shows "7"...
Hope this makes sense. The score can be a float/double instead of integer too, e.g 0.1
For an example with numbers and a screenshot:
- The user has set 3 levels in the code:
1. Price 0.85055, Score 2
2. Price 0.84645, Score 4
3. Price 0.84188, Score 7
User setting:
Candle timeframe
Thank you very much for your time invested in this task