Market Tension Map v2

📊 Market Tension Map v2 — Detailed Description
core concept
market tension map v2 measures market "tension" through a combination of three independent metrics: volatility, volume, and open interest changes. the indicator operates on the compressed spring principle—when the market enters a state of low volatility with high volume and growing OI, it creates "tension" that predicts a potential sharp price movement.​​

calculation methodology
component 1: volatility score (0-100)
relative volatility is measured through price standard deviation over a specified period. key distinction—inversion: low volatility produces a high score because range compression creates energy for future movement.​​

component 2: volume score (0-100)
normalization of current volume relative to the period range. high volume during low volatility signals accumulation of positions by large players before a move.​​

component 3: open interest score (0-100)
evaluation of open interest changes (available only for futures). rising OI confirms new positions entering the market rather than just redistribution of existing ones.​

final tension index
arithmetic mean of three components (or two if OI unavailable). values above threshold (default 70) signal spring "compression".​​

signal types
compression signal (🔴 red diamond)
appears when tension index exceeds threshold with normal candle size. this is a predictive signal—market is compressed but explosion hasn't occurred yet. optimal for entry before movement with tight stop.​

climax signal (⚠️ orange diamond)
occurs when threshold crossed + large candle (size > ATR × multiplier). this is a reactive signal of culmination—energy already released. often indicates short-term reversal or move exhaustion.​​

uniqueness of approach
unlike classic compression indicators (bollinger bands squeeze, keltner channels), mtm v2 doesn't rely solely on volatility. adding volume and OI scores creates a multidimensional picture of market microstructure. volatility score inversion is original logic where calm is interpreted as tension.​​

the algorithm distinguishes two breakout types:

compression without movement (compression)—anticipation trading

compression with large candle (climax)—reversal trading

this separation is absent in standard indicators.​

parameter settings
calculation period (20)—normalization window length. lower = more sensitive to short-term changes.​​

tension threshold (70)—signal activation level. higher = fewer signals but better quality.​

atr length (14) + atr multiplier (2.0)—large candle detection parameters for climax signals. increasing multiplier makes filter stricter.​​

colors and style—full customization of visual elements to adapt to your chart theme.​

how to use
main chart: histogram shows current tension level. yellow = rising, gray = falling.​​

signals on price chart:

red diamond above candle = prepare for entry (compression)

orange diamond = move occurred, watch for reversal (climax)​

background highlight: tinted background shows high tension zones.​

data table: real-time monitoring of all components + bar status (live/closed).​

alerts: configure notifications for compression or climax signals for automatic monitoring.​

limitations
open interest available only for futures. for spot markets indicator works with two components.​

requires sufficient bar history (>= calculation period) for correct calculations.​

on live bar (not closed) values may repaint—use confirmed signals for trading.​

recommended timeframes
1h-4h: optimal for swing trading, signals more reliable.​

15m-30m: suitable for intraday but requires false breakout filtering.​

d: strategic positions, high risk/reward ratio.​

license: mozilla public license 2.0​

version: pinescript v6