OPEN-SOURCE SCRIPT
IU Price Density(Market Noise)
This Price density Indicator will help you understand what and how market noise is calculated and treated.
Market noise = when the market is moving up and down without any clear direction
The Price Density Indicator is a technical analysis tool used to measure the concentration or "density" of price movements within a specific range. It helps traders differentiate between noisy, choppy markets and trending ones.
I’ve developed a custom Pine Script indicator, "IU Price Density," designed to help traders distinguish between noisy, indecisive markets and clear trading opportunities. It can be applied across multiple markets.
How this work:
Formula = (Σ (High𝑖 - Low𝑖)) / (Max(High) - Min(Low))
Where,
High𝑖 = the high price at the 𝑖 data point.
Low𝑖 = the low price at the 𝑖 data point.
Max(High) = highest price over the data set.
Max(Low) = Lowest price over the data set.
How to use it :
This indicator ranges from 0 to 10
Green(0-3) = Trending Market
Orange(3-6) = Market is normal
Red(6-10) = Noise market
💡 Key Features:
Dynamic Visuals: The indicator uses color-coded signals—green for trending markets and red for noisy, volatile conditions—making it easy to identify optimal trading periods at a glance.
Background Shading: With background colors highlighting significant market conditions, traders can quickly assess when to engage or avoid certain trades.
Customizable Parameters: The length and smoothing factors allow for flexibility in adapting the indicator to various assets and timeframes.
Whether you're a swing trader or an intraday strategist, this tool provides valuable insights to improve your market analysis. I’m excited to bring this indicator to the community!
Market noise = when the market is moving up and down without any clear direction
The Price Density Indicator is a technical analysis tool used to measure the concentration or "density" of price movements within a specific range. It helps traders differentiate between noisy, choppy markets and trending ones.
I’ve developed a custom Pine Script indicator, "IU Price Density," designed to help traders distinguish between noisy, indecisive markets and clear trading opportunities. It can be applied across multiple markets.
How this work:
Formula = (Σ (High𝑖 - Low𝑖)) / (Max(High) - Min(Low))
Where,
High𝑖 = the high price at the 𝑖 data point.
Low𝑖 = the low price at the 𝑖 data point.
Max(High) = highest price over the data set.
Max(Low) = Lowest price over the data set.
How to use it :
This indicator ranges from 0 to 10
Green(0-3) = Trending Market
Orange(3-6) = Market is normal
Red(6-10) = Noise market
💡 Key Features:
Dynamic Visuals: The indicator uses color-coded signals—green for trending markets and red for noisy, volatile conditions—making it easy to identify optimal trading periods at a glance.
Background Shading: With background colors highlighting significant market conditions, traders can quickly assess when to engage or avoid certain trades.
Customizable Parameters: The length and smoothing factors allow for flexibility in adapting the indicator to various assets and timeframes.
Whether you're a swing trader or an intraday strategist, this tool provides valuable insights to improve your market analysis. I’m excited to bring this indicator to the community!
Script de código aberto
No verdadeiro espirito do TradingView, o autor desse script o publicou como código aberto, para que os traders possam entendê-lo e verificá-lo. Parabéns ao autor Você pode usá-lo gratuitamente, mas a reutilização desse código em publicações e regida pelas Regras da Casa.
Shivam mandai
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
Script de código aberto
No verdadeiro espirito do TradingView, o autor desse script o publicou como código aberto, para que os traders possam entendê-lo e verificá-lo. Parabéns ao autor Você pode usá-lo gratuitamente, mas a reutilização desse código em publicações e regida pelas Regras da Casa.
Shivam mandai
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.