RTH High Low Guardian-Pro

# RTH Guardian - User Guide

## Overview

RTH Guardian is a sophisticated intraday trading indicator designed for Regular Trading Hours (RTH) sessions on futures markets like NQ and ES. It tracks the session's highest high and lowest low candles, creating dynamic support and resistance zones while providing real-time quality metrics to help you make informed trading decisions.

Think of this indicator as your trading guardian - it watches over the market structure during RTH, identifies key levels, and warns you when conditions might be unfavorable for entry.

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## Core Concept: The Three-Line System

When a new session high or low is established, the indicator creates three horizontal lines:

### For Highs (Short Setup):
- **Red Line (High)**: The absolute high of the breakout candle
- **Green Line (Low)**: The low of that same breakout candle
- **Blue Line (HL/2)**: The midpoint - your potential entry zone for shorts

### For Lows (Long Setup):
- **Green Line (Low)**: The absolute low of the breakout candle
- **Red Line (High)**: The high of that same breakout candle
- **Blue Line (HL/2)**: The midpoint - your potential entry zone for longs

The philosophy is simple: trade from the middle, not the extremes. The HL/2 line represents a balanced entry point where you're neither chasing the high/low nor entering too early.

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## Understanding the Label Metrics

Each HL/2 line displays a floating label with five key pieces of information:

### 💲 Price
The exact price level of the HL/2 midpoint. This is your potential entry price.

**Example**: `💲 21450.75`

### 🛑 Delta (Δ)
The distance between the HL/2 and the opposite extreme of the breakout candle.

- **For shorts**: Distance from HL/2 to the candle's low
- **For longs**: Distance from HL/2 to the candle's high

This tells you how much "room" you have for the trade to breathe. A larger delta generally means more tolerance for adverse movement.

**Example**: `🛑 Δ 15.50` (15.50 points of room)

### ⏰ Time Since Last Hit
How many bars ago the HL/2 level was last touched by price action.

This is your "freshness" indicator. The longer price stays away from a level, the less relevant it becomes as immediate support/resistance.

**Example**: `⏰ 3 bars ago` (Price tested this level 3 bars back)

**Interpretation**:
- 1-3 bars: Very fresh, high relevance
- 4-8 bars: Cooling off
- 9+ bars: Level is aging, price has moved on

### 🎯 Hit Percentage
The quality metric. Shows how many times the HL/2 has been tested out of the total bars since creation.

**Formula**: (Number of hits / Total bars) × 100

**Example**: `🎯 2/5 = 40.0%`

**Color Coding** (when "Use Quality Color" is enabled):
- **Gray** (0%): Untested, no data yet
- **Blue** (<20%): Low interaction, level mostly ignored
- **Green** (20-39%): Moderate quality, decent level
- **Yellow** (40-59%): High interaction, strong level
- **Red** (≥60%): Excessive grinding, potential chop zone

**Trading Insight**: Green and Blue zones often represent the best risk/reward opportunities. Yellow and Red suggest the market is struggling with the level - proceed with caution or avoid.

### 🚀 Breakaway Status
Tracks momentum away from the level - a one-time event that never updates.

**For Highs (Short)**: First candle where the **high** drops below the HL/2
**For Lows (Long)**: First candle where the **low** rises above the HL/2

**Example**: `🚀 1st B-away` (Breakaway achieved on the very first candle)

**Interpretation**:
- **1st-2nd B-away**: Explosive momentum, strong directional move
- **3rd-5th B-away**: Healthy progression away from level
- **6th+ B-away**: Slower momentum, level still has gravity
- **No B-away**: Price keeps returning to level, not breaking free

Early breakaway (1st-3rd) suggests the level is being respected and momentum is strong in the opposite direction. Late or no breakaway suggests the level is "sticky" and might still be in play.

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## The Guardian Analysis Table

The table in the corner provides a macro view of market conditions with three sections:

### Chop Zone Analysis (Top)
Detects when price is trapped between the High's Low and Low's High - a range-bound danger zone.

**Status Indicators**:
- **Clear** (Green): Clean trending conditions, no overlap
- **Wide Range** (Yellow): Some overlap but tradeable
- **TIGHT CHOP** (Orange): Dangerous grinding between levels

**Example**: `Chop: TIGHT CHOP (4x)` - Price has bounced between the zones 4 times. Stay out or trade breakouts only.

### SHORT Section (Red)
Metrics for potential short setups from the High's HL/2:

- **Seq-H (Sequential Highs)**: How many consecutive higher highs have formed
- Green (<5): Healthy trending
- Yellow (5-9): Extended, caution
- Red (≥10): Severely overextended

- **MFE (Maximum Favorable Excursion)**: Best profit potential if you shorted from HL/2
- Green (>100% of Δ): Excellent movement
- Blue (50-100%): Good movement
- Orange (<50%): Limited movement

- **MAE (Maximum Adverse Excursion)**: Worst drawdown if you shorted from HL/2
- Green (<50% of Δ): Minimal heat
- Yellow (50-80%): Moderate heat
- Red (>80%): Significant heat taken

### LONG Section (Green)
Mirror metrics for potential long setups from the Low's HL/2.

Same interpretation as SHORT section but for long positions.

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## Trading Psychology: What This Indicator Teaches You

### The Cave Diving Parallel
Just as a cave diver checks their air supply, depth, and safety lines before proceeding deeper, RTH Guardian asks you to check your trading environment before taking a position:

1. **Air Supply = Delta**: Do you have enough room for the trade to work?
2. **Depth Gauge = Hit Percentage**: Is this level quality or are you diving into murky waters?
3. **Safety Line = Breakaway**: Is there momentum carrying price away from danger?
4. **Visibility = Chop Status**: Can you see clearly or is it too stirred up?

### Self-Sabotage Patterns It Reveals

**Pattern 1: Chasing**
If you're tempted to enter when "bars ago" shows 0-1 and hit percentage is already Yellow/Red, you're chasing a grinding level. The indicator is warning you: "This level is being fought over. Choose another entry or wait."

**Pattern 2: Entering Extended Moves**
Sequential highs/lows in Red territory means you're late to the party. The mountain metaphor applies: you're trying to summit a peak when you should have started at base camp.

**Pattern 3: Ignoring the Chop**
Trading when "TIGHT CHOP" shows is like trying to swim against a riptide. The indicator is literally telling you the market is trapped. Step aside.

**Pattern 4: Disrespecting Momentum**
"No B-away" after many bars means price won't leave the level alone. That's the market telling you the battle isn't decided. Don't force a directional bias.

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## Optimal Usage Workflow

### 1. Session Start (9:30 AM ET)
Watch for the first high and low to establish. Don't rush - let the levels prove themselves.

### 2. Level Creation
When a new high/low forms (indicated by red/green circles), observe:
- Is the Delta substantial? (>10 points on NQ is generally good)
- Check Guardian table: Are we in clear or chop conditions?

### 3. Wait for Quality
Let the level develop. Watch the hit percentage and bars ago metrics update.

**Ideal Entry Window**:
- Hit percentage: Blue or Green zone
- Bars ago: 2-5 (not too fresh, not too stale)
- Breakaway: Achieved within 1st-3rd candle
- Chop status: Clear
- MFE showing good follow-through, MAE manageable

### 4. Avoid When
- Chop status shows TIGHT CHOP
- Hit percentage in Red zone (≥60%)
- Sequential highs/lows ≥10 (severely extended)
- No breakaway after 8+ candles
- MAE significantly exceeds MFE

### 5. Position Management
Use the Delta as your baseline for stops and targets:
- Stop loss: Beyond the extreme (high/low line)
- Target: At minimum 1× Delta, ideally 2× Delta from HL/2

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## Visual Indicators at a Glance

### Circles
- **Red circle**: New session high established
- **Green circle**: New session low established

### Background Shading
- **Light red shade**: New high breakout zone
- **Light green shade**: New low breakout zone
- **Light gray shade**: Chop zone (price between High's Low and Low's High)

### Line Colors (Default)
- **Red**: Extreme highs
- **Green**: Extreme lows
- **Blue**: Entry zones (HL/2 midpoints)

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## Common Questions

**Q: Why does the level sometimes update frequently?**
A: During volatile sessions, new highs/lows form rapidly. This is normal. The Guardian table's Sequential count will warn you when it becomes excessive.

**Q: What if both HIGH and LOW labels show high hit percentages?**
A: You're in a consolidation phase. The Chop indicator should reflect this. Step aside and wait for a clean breakout.

**Q: Can I use this on other timeframes?**
A: Yes! The indicator allows you to select 1, 5, 15, 30, or 60-minute timeframes. However, it's designed for RTH sessions (9:30 AM - 4:00 PM ET), so it works best on instruments with distinct RTH hours.

**Q: What's the difference between "bars ago" and breakaway?**
A: "Bars ago" tracks the last time price tested the HL/2 level. Breakaway tracks whether price has definitively moved away from the level (one-time event). You can have a recent hit (bars ago = 1) but no breakaway if price keeps returning.

**Q: Should I always wait for breakaway?**
A: Not necessarily. Breakaway indicates momentum, which is favorable but not mandatory. However, if you see "No B-away" after 10+ candles, that's a red flag that the level lacks conviction.

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## Advanced Tips

### 1. Confluence with Other Analysis
RTH Guardian works best when combined with your existing analysis:
- Use it to confirm entries from your primary system
- Let it keep you out of low-quality setups
- Treat it as a quality filter, not a standalone signal generator

### 2. MFE/MAE Learning
Over time, study the MFE/MAE ratios in the Guardian table:
- If shorts consistently show high MAE and low MFE, the market has an upward bias
- If longs show the opposite, downward bias exists
- When both directions show high MAE, you're in chop - reduce position sizing

### 3. Session Personality
Each RTH session has its own character:
- Trend days: Levels update frequently, Sequential counts high, one direction dominant
- Range days: Chop status persistent, hit percentages high, MFE/MAE balanced
- Breakout days: Early levels hold, low hit percentages, strong breakaway signals

### 4. Emotional Discipline Integration
Before entering any trade, verbally state:
- "The Delta is X points"
- "Hit percentage is Y% (color)"
- "Breakaway was Zth candle"
- "Chop status is [state]"

This forces you to acknowledge what the indicator is telling you. If you can't justify the entry using these metrics, don't take it.

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## The Mountain Philosophy

Remember the wisdom from "The Mountain Is You": self-sabotage in trading often comes from ignoring the signs that are clearly visible. RTH Guardian puts those signs directly on your chart.

When you override a Red hit percentage or enter during TIGHT CHOP, you're not "seeing something the indicator missed" - you're engaging in the very self-sabotage patterns that keep you from consistency.

The indicator doesn't predict the future. It holds up a mirror to current market structure and asks: "Given what you can see right now, is this a quality opportunity?"

Your edge isn't in being right every time. It's in consistently taking only the setups where the conditions stack in your favor.

RTH Guardian helps you do exactly that.

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## Customization Options

The indicator is highly customizable through the settings panel:

### Line Appearance
- Colors for all lines (High, Low, HL/2 for both sides)
- Line thickness (1-10)
- Line style (Solid, Dashed, Dotted)

### Label Settings
- Background colors for HIGH and LOW labels
- Text color
- Font size (Tiny, Small, Normal, Large, Huge)
- Quality color mode (auto-colors based on hit percentage)

### Guardian Table
- Position (9 locations available)
- Font size
- Sequential trend warning threshold (default: 5 bars)
- Grinding trend warning threshold (default: 10 bars)
- Chop zone multiplier (default: 1.5× Delta)

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## Final Thoughts

RTH Guardian is not a holy grail. It's a discipline tool.

It won't make you a profitable trader overnight, but it will make you honest about the quality of your entries. Over time, that honesty compounds into consistency.

Use it wisely, respect its warnings, and let it guide you away from self-sabotage.

Good trading requires good information + emotional discipline. RTH Guardian provides the information. The discipline is still on you.

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*"The mountain is you. The obstacles you face are often the ones you create. RTH Guardian helps you see those obstacles before you create them on your chart."*