Displacement Pulse Markers - sudo

This indicator is designed to highlight sudden and meaningful bursts of price movement. These bursts are called displacement pulses. A pulse appears when price expands with force, closes near the extreme of its own bar, and breaks through a recent structural level. The indicator places small circles above or below the candle to signal these moments so that traders can quickly spot abnormal movement and potential shifts in market intent.

How it works
The indicator evaluates each bar for three conditions:

Range expansion relative to volatility
The bar must be larger than normal. It compares the bar range to ATR and requires that range to exceed a multiple of ATR. When this condition is met, the bar is considered a large or forceful bar.

Close location within the bar
The bar has to close near its own high or low. A close near the top suggests strong buying force. A close near the bottom suggests strong selling force. The user can adjust what percentage qualifies as near the top or bottom.

Break of recent structure
The bar must break a recent pivot level. For bullish pulses, the high of the bar must exceed the highest high of the past N bars. For bearish pulses, the low must break the lowest low of the past N bars. This confirms that the move did not merely expand but actually displaced prior structure.

When all conditions align

A bullish displacement pulse is marked with a small aqua circle below the bar.

A bearish displacement pulse is marked with a fuchsia circle above the bar.

The result is a clean on chart visualization of where price produced meaningful displacement.

How traders can use this

Spot abnormal momentum
Pulses can highlight areas where price behaves with more force than usual. These events often appear around news, liquidity sweeps, or algorithmic shifts.

Identify possible regime changes
A pulse that breaks structure while closing near the extreme may signal a transition from a ranging environment to a trending one. It does not predict direction but flags where displacement actually occurred.

Support narrative building
When combined with levels, zones, or other frameworks, pulses can confirm whether the market had enough strength to break through an area with conviction.

Filter trades or refine entries
Some traders may choose to trade in the direction of recent pulses during trending conditions. Others may only enter a trade after a pulse confirms that the market has shifted away from compression.

Track where the market is imbalanced
A pulse visually marks whether buyers or sellers were able to generate strong initiative movement. These points often become useful reference zones for continuation or rejection analysis.

Why this indicator is useful
It reduces complex logic into simple visual markers. Instead of scanning bar by bar for structural breaks, volatility expansions, and close strength, the indicator does this automatically and highlights only the bars that meet all criteria. This keeps the chart clean while still providing precision about where displacement actually occurred.