Vector Candle Zones/Cloud MTF X4

Description:

This indicator employs Price, Volume, Support, Resistance Analysis (PVSRA), a trading strategy that analyzes price movements, volume, support, and resistance levels to identify potential trading opportunities. It detects large, volatile moves with significant activity in specific zones on the chart, which the market tends to revisit due to the high transaction volume in these areas. The primary purpose of this indicator is to draw these high probability areas where the market is likely to return.

The PVSRA algorithm used in this indicator:

• Detects climactic situations: The algorithm identifies climactic situations by looking at bars where the volume is at least 200% of the average volume of the previous 10 bars. Additionally, it checks if the product of the candle spread, and candle volume is greater than or equal to the highest value for the previous 10 bars. In these situations, if the bar is bullish (closing price is higher than the opening price), it is colored green; if it's bearish (closing price is lower than the opening price), it is colored red.
  
• Detects above-average volume situations: The algorithm looks for bars with a volume that is at least 150% of the average volume of the previous 10 bars. In these cases, if the bar is bullish, it is colored blue; if it's bearish, it is colored violet.
  
• If the bar does not fall into climactic and above-average situations: The bar is colored with shades of gray depending on whether it's bullish or bearish, and is not considered a vector (aka. vector zone of interest).
  
• The algorithm calculations can adapt to show the above information also from higher time-frames.
  

Using the indicator:

Utilize this indicator to trade towards and away from vector areas, and watch for reversals when these zones are recovered. While there are no certainties in trading, only probabilities, the vector candles on the chart represent high probability areas the market often revisits. Additionally, zones recovered between 50% - 100% signal high probability points where the market might change direction. The likelihood of market direction change increases as more vectors are recovered in succession. Although there is no set rule for when these vectors are recovered, monitoring candle colors (green, blue, red, purple) can help gauge the speed of a move to and from a zone. To use this indicator more effectively, establish a trend using other preferred indicators or even a simple EMA. Spend time studying how these zones are recovered for each specific asset.

Main Features:

• High volume candles are detected and marked with colors, indicating high probability areas the market may revisit.
  
• The indicator shows the percentage of a zone's recovery with labels for clear visibility.
  
• If ghosting is enabled, fully recovered past candles (also called vectors) are highlighted to signal potential reversal points.
  
• Imbalance Weighted Average (IWA) can be activated to display the point of attraction (mid/high/low) on high interest zones.
  
• Fair Value Gaps can be displayed alongside PVSRA candles, as both represent imbalances in the chart.
  
• The indicator supports showing 3x-4x higher timeframe PVSRA zones on a lower timeframe for convenience.
  

Notas de Lançamento:

• Improved main algorithm to better handle 'na' values (now you can use 'Maximum Bars Back' option to allow more room for Ghosts)
  
• Prioritize drawing normal vectors instead of fair value gaps (in simple terms draw more vectors and less fvg's in the past)
  
• Added ghost transparency override
  
• Cleared up options naming and order, changed some tooltips to be more helpful
  

Notas de Lançamento:

• Rename option to reflect what it does from "Maximum Bars Back" to "Maximum Vector Zones". Zones can be as far as 5000 bars in the past.