Full Day Midpoint Line with Dynamic StdDev Bands (ETH & RTH)

A Pine Script indicator designed to plot a midpoint line based on the high and low prices of a user-defined trading session (typically Extended Trading Hours, ETH) and to add dynamic standard deviation (StdDev) bands around this midpoint.

Session Midpoint Line:

• The midpoint is calculated as the average of the session's highest high and lowest low during the defined ETH period (e.g., 4:00 AM to 8:00 PM).
  
• This line represents a central tendency or "fair value" for the session, similar to a pivot point or volume-weighted average price (VWAP) anchor.
  

Interpretation:

• Prices above the midpoint suggest bullish sentiment, while prices below indicate bearish sentiment.
  
• The midpoint can act as a dynamic support/resistance level, where price may revert to or react at this level during the session.
  

Dynamic StdDev Bands:

• The bands are calculated by adding/subtracting a multiple of the standard deviation of the midpoint values (tracked in an array) from the midpoint.
  
• The standard deviation is dynamically computed based on the historical midpoint values within the session, making the bands adaptive to volatility.
  

Interpretation:

• The upper and lower bands represent potential overbought (upper) and oversold (lower) zones.
  
• Prices approaching or crossing the bands may indicate stretched conditions, potentially signaling reversals or breakouts.
  

Trend Identification:

• Use the midpoint as a reference for the session’s trend. Persistent price action above the midpoint suggests bullishness, while below indicates bearishness.
  
• Combine with other indicators (e.g., moving averages, RSI) to confirm trend direction.
  

Support/Resistance Trading:

• Treat the midpoint as a dynamic pivot point. Price rejections or consolidations near the midpoint can be entry points for mean-reversion trades.
  
• The StdDev bands can act as secondary support/resistance levels. For example, price reaching the upper band may signal a potential short entry if accompanied by reversal signals.
  

Breakout/Breakdown Strategies:

• A strong move beyond the upper or lower band may indicate a breakout (bullish above upper, bearish below lower). Confirm with volume or momentum indicators to avoid false breakouts.
  
• The dynamic nature of the bands makes them useful for identifying significant price extensions.
  

Volatility Assessment:

• Wider bands indicate higher volatility, suggesting larger price swings and potentially riskier trades.
  
• Narrow bands suggest consolidation, which may precede a breakout. Traders can prepare for volatility expansions in such scenarios.
  

The "Full Day Midpoint Line with Dynamic StdDev Bands" is a versatile and visually intuitive indicator well-suited for day traders focusing on session-specific price action. Its dynamic midpoint and volatility-adjusted bands provide valuable insights into support, resistance, and potential reversals or breakouts.