Advanced VSA: Trend and Range Levels
The indicator is designed for traders who are more interested in market structures and price action using volumes. Analyzing volumes, key market levels, market phases (trend or range/sideways), and multiple timeframes can help the trader build a clearer and more comprehensive view of the market. The data analysis algorithm is developed based on VSA methods, elements of the ICT concept, and the results of my research to assist trader in gaining a better understanding of the market and uncovering information that might go unnoticed.
The key idea is to consider multiple timeframes in trading. Understanding larger market movements from higher timeframes can provide a deeper context when making trading decisions, aiming to assist in more effective entries and exits. This is achieved by identifying the trend and its support levels on multiple timeframes, identifying ranges and their current boundaries, as well as buyer and seller interest zones.
Key Features
Trend Identification: The indicator determines the trend and its current support level. All significant price &movements occur in the form of impulses (either by sellers or buyers). An impulse consists of one or several consecutive candlesticks, at least one of which has a closing price beyond the boundaries of the previous impulse. The indicator displays the base of the impulse and/or the entire impulse. The base of the impulse represents the trend's support level.
Range Identification: The indicator can identify ranges and their current boundaries. Institutional traders take positions within price ranges, and many market reversals occur after flats. A range is a sequential price movement up and down within a specific price range. A range is formed by a minimum of 4 points, 2 above and 2 below, and is defined by its boundaries. The indicator detects ranges based on two (two consecutive impulses in one direction) or three impulses (the first and third in one direction, and the second in the opposite direction). The indicator displays the current boundary points of the range and the level of protection after exiting the range and initiating a trend.
Buyer and seller zones within impulses: After the impulse ends, a correction occurs. It is advisable to look for entry points during this correction in the direction of the impulse from the zone of interest of the owner of the impulse: the buyer's zone for a long impulse and the seller's zone for a short impulse. A zone consists of a series of consecutive candlesticks grouped on the chart in a specific manner.
Multi-Timeframe Trend Identification: The indicator also identifies the trend on two higher timeframes and displays the two latest bases of impulses from those higher timeframes on the chart.
Additional Features
Identification of Test Levels and Effort. A test is the price's return to a zone or to a candle of effort, followed by a continuation in the direction of the initial price movement. It is characterized by the test level. An effort or effort candle is a single candle that is individually larger in volume than the previous 2.
Example Use Cases
You can display the base levels of impulses from a 4-hour time frame and a daily time frame on a 15-minute chart to keep track of important levels from higher timeframes.
By exploring different timeframes, you can identify consolidations (range/sideways movements) and trade within them in the direction of the trend from higher timeframes.
If the market is in a trending phase (the presence of a trend is determined by two consecutive impulses in the same direction), look for trades in the direction of the impulse, following these priorities:
If the market is in a consolidation phase (range), look for trades:
Settings
The key idea is to consider multiple timeframes in trading. Understanding larger market movements from higher timeframes can provide a deeper context when making trading decisions, aiming to assist in more effective entries and exits. This is achieved by identifying the trend and its support levels on multiple timeframes, identifying ranges and their current boundaries, as well as buyer and seller interest zones.
Key Features
Trend Identification: The indicator determines the trend and its current support level. All significant price &movements occur in the form of impulses (either by sellers or buyers). An impulse consists of one or several consecutive candlesticks, at least one of which has a closing price beyond the boundaries of the previous impulse. The indicator displays the base of the impulse and/or the entire impulse. The base of the impulse represents the trend's support level.
Range Identification: The indicator can identify ranges and their current boundaries. Institutional traders take positions within price ranges, and many market reversals occur after flats. A range is a sequential price movement up and down within a specific price range. A range is formed by a minimum of 4 points, 2 above and 2 below, and is defined by its boundaries. The indicator detects ranges based on two (two consecutive impulses in one direction) or three impulses (the first and third in one direction, and the second in the opposite direction). The indicator displays the current boundary points of the range and the level of protection after exiting the range and initiating a trend.
Buyer and seller zones within impulses: After the impulse ends, a correction occurs. It is advisable to look for entry points during this correction in the direction of the impulse from the zone of interest of the owner of the impulse: the buyer's zone for a long impulse and the seller's zone for a short impulse. A zone consists of a series of consecutive candlesticks grouped on the chart in a specific manner.
Multi-Timeframe Trend Identification: The indicator also identifies the trend on two higher timeframes and displays the two latest bases of impulses from those higher timeframes on the chart.
Additional Features
Identification of Test Levels and Effort. A test is the price's return to a zone or to a candle of effort, followed by a continuation in the direction of the initial price movement. It is characterized by the test level. An effort or effort candle is a single candle that is individually larger in volume than the previous 2.
Example Use Cases
You can display the base levels of impulses from a 4-hour time frame and a daily time frame on a 15-minute chart to keep track of important levels from higher timeframes.
By exploring different timeframes, you can identify consolidations (range/sideways movements) and trade within them in the direction of the trend from higher timeframes.
If the market is in a trending phase (the presence of a trend is determined by two consecutive impulses in the same direction), look for trades in the direction of the impulse, following these priorities:
- When the impulse base level is protected by the host of the impulse.
- During corrections, look for buy trades in the buyer's zone for an uptrend and sell trades in the seller's zone for a downtrend.
- During corrections, look for buy trades from a buyer's effort candle for an uptrend and sell trades from a seller's effort candle for a downtrend.
If the market is in a consolidation phase (range), look for trades:
- When the current or maximum/minimum historical boundaries of the consolidation (range) are protected, look for trades towards the opposite current boundary.
- If the price exits the consolidation/range (closes outside all consolidation boundaries, including both current and historical boundaries), then during corrections, look for trades in the direction of the exit.
Settings
- Trend: Display base levels of impulses and/or the entire impulse. Sideways Ranges (Sideways Markets): Display the required number of sideways ranges on the chart, along with protection levels for exiting the sideways range. There are two modes for finding sideways ranges. The first mode requires touching points. The second mode (advanced) does not require precise touching of points if there are increased volumes at the extreme points of the sideways range. Touching these volumes is sufficient for the price.
- Zones: Display zones on the chart. Choose the types of displayed zones and their colors. They are divided into three types. The first type is the most promising for finding trades. Type 3 represents more aggressive trades.
- Test Levels: Display test levels for zones and efforts on the chart. There are three types of test levels. The first type is the most promising for finding trades. Type 3 is not recommended for finding trades as it represents the most aggressive trades.
- Higher Time Frames: Choose 2 timeframes and the types of displayed impulse base lines.
Phát hành các Ghi chú:
The indicator has been enhanced based on user suggestions and new proprietary research on the behavior of financial instrument prices. The primary description of the indicator's capabilities in the initial release. Only the new features are described here.
Additional Features
Show Potential target price (PT Short/Long) - indicates the Potential Target within the range for buying - when the price has played out the short vector of the range and is at the lower boundary and for selling - when the price has played out the long vector of the range and is at the upper boundary.
Two additional range boundary calculation modes have been implemented:
Advanced+ - a new experimental algorithm to calculate the range boundaries aiming for more precise determination of short or long position potential while trading within the range (from one boundary to the other). When this mode is selected, the Advanced element is entirely ignored by the algorithm. Please exercise caution with this option!
Range boundary detection mode - by choosing this option, then starting from point 5 of the range, a new range point is formed if the price is 1 tick above/below the mandatory upper/lower limit of the range, respectively.
Example Use Cases
Making decisions regarding the viability of buying or selling an asset.
For any financial instrument across various timeframes, the indicator shows the market phase - uptrend, downtrend or consolidation, facilitating decision-making for investors (using daily, weekly, and monthly timeframes) and day traders (using hourly, minute, and second timeframes).
If the market is trending (defined by two consecutive impulses in the same direction), consider trading in the direction of the impulse, prioritizing the following:
Protection of the pulse base level by the pulse master.
Making decisions about buying or selling price, potential targets, and possible trade threats.
For any financial instrument across various timeframes, the indicator visualizes buyer and seller zones, their tests, trend support levels (if the instrument is in a trending phase), consolidation boundaries (if the instrument is consolidating). This helps decide on buying or selling prices, potential targets, and stop-loss placement. For instance, by exploring different timeframes, you can identify consolidations and trade within them in the direction of the higher timeframes' trends. The indicator aids in determining potential trade targets, the stop-loss beyond the consolidation boundaries.
The indicator allows you to display important levels of two higher time frames on the chart so that you do not forget about them. For example, you can display underlying momentum levels and discount/premium zone levels from 4-hour and daily time frames on a 15-minute chart.
Additional Features
- For Impulses
- For Ranges:
Show Potential target price (PT Short/Long) - indicates the Potential Target within the range for buying - when the price has played out the short vector of the range and is at the lower boundary and for selling - when the price has played out the long vector of the range and is at the upper boundary.
Two additional range boundary calculation modes have been implemented:
Advanced+ - a new experimental algorithm to calculate the range boundaries aiming for more precise determination of short or long position potential while trading within the range (from one boundary to the other). When this mode is selected, the Advanced element is entirely ignored by the algorithm. Please exercise caution with this option!
Range boundary detection mode - by choosing this option, then starting from point 5 of the range, a new range point is formed if the price is 1 tick above/below the mandatory upper/lower limit of the range, respectively.
- For Zones of supply and demand (Buyer and seller zones)
Example Use Cases
Making decisions regarding the viability of buying or selling an asset.
For any financial instrument across various timeframes, the indicator shows the market phase - uptrend, downtrend or consolidation, facilitating decision-making for investors (using daily, weekly, and monthly timeframes) and day traders (using hourly, minute, and second timeframes).
If the market is trending (defined by two consecutive impulses in the same direction), consider trading in the direction of the impulse, prioritizing the following:
Protection of the pulse base level by the pulse master.
- During corrections, consider buying in the buyer's zone for an uptrend and selling in the seller's zone for a downtrend.
- During corrections, look for buying opportunities from a buyer's effort candle for an uptrend and selling opportunities from a seller's effort candle for a downtrend.
- Protecting the current or historical maximum/minimum consolidation boundaries, trading towards the opposite current boundary.
- If the price exits the consolidation (closing outside all consolidation boundaries), consider trading in the direction of the exit during corrections.
Making decisions about buying or selling price, potential targets, and possible trade threats.
For any financial instrument across various timeframes, the indicator visualizes buyer and seller zones, their tests, trend support levels (if the instrument is in a trending phase), consolidation boundaries (if the instrument is consolidating). This helps decide on buying or selling prices, potential targets, and stop-loss placement. For instance, by exploring different timeframes, you can identify consolidations and trade within them in the direction of the higher timeframes' trends. The indicator aids in determining potential trade targets, the stop-loss beyond the consolidation boundaries.
The indicator allows you to display important levels of two higher time frames on the chart so that you do not forget about them. For example, you can display underlying momentum levels and discount/premium zone levels from 4-hour and daily time frames on a 15-minute chart.
Good luck with your trading!