Auto Price Action - Volume Price and Spread script generates important support and resistance levels basis activity happening in price, volume and candle spread. The basic idea has been taken from concepts of VSA which underlies that weakness appears in uptrend and strength in downtrend. Script will try to find candles which have volume higher then average and candle spread.
Underlying logic:
Script generates significant high's as resistance and lows as support basis activity happened on volume, price and candle spread. Once criteria set in script is met it would then mark that candle with resistance or support line which would act as important price action level later in time.
Usage:
As it records and maintain important high and lows happening on candles till the time new levels are generated therefore generated price levels act as significant support or resistance. Higher the activity in volume, price and spread stronger that price level would act as support or resistance in future.
Settings:
AvgLen- It would allow you to set the SMA settings for volume bars. By default set at 20 means that SMA of 20D volume would be considered in script.
Volume Start Threshold - Default 1.3 - You can change this setting basis stock volatility. This would set the starting point in script to trigger support or resistance levels if volume is equal or higher then the multiplier you have chosen.
Bearish Volume Mult 1, 2 and 3: Set the the levels which can be adjusted to generate x1, x2 or x3 resistance levels which would appear on top of candles.
Bullish Volume Mult 1, 2 and 3: Set the levels which can be adjusted to generate x1, x2, or x3 support levels which would appear at bottom of candles.
Use of bearish and bullish volume mult is to let user define the multiplier value against which current volume bar would be checked. Higher the value means rare it would be.
x1 - Starting level of resistance/support. It would be considered as level 1 of support or resistance which can be broken easily. Happen too often.
x2 - Medium level of resistance/support. It would be considered as level 2 of support or resistance which can give tough fight as price would reach this level. If set as more then 50% of stock volatility of instrument then price would react for sure.
x3 - Strongest level of resistance/support. If set 3 or higher it would be rare to be generated and price may not visit level too often.
Bullish Candle Matrix %: Keep it above 50 to let script check how strong bullish candle is. Strength of candle increase as value increase from 50 towards 100. Keep it at 52 to track maximum bullish candles.
Bearish Candle Matrix %: Keep it below 50 to let script check how strong bearish candle is. Strength of candle increase as value increase from 50 towards 0. Keep it at 47to track maximum bearish candles.
Optional Lines
Optional lines usage no volume activity therefore can generate important price levels basis volume and price only.
Script work on all time frame where volume information is available. In absence of volume information script would only generate optional levels and that too if activated.
Underlying logic:
Script generates significant high's as resistance and lows as support basis activity happened on volume, price and candle spread. Once criteria set in script is met it would then mark that candle with resistance or support line which would act as important price action level later in time.
Usage:
As it records and maintain important high and lows happening on candles till the time new levels are generated therefore generated price levels act as significant support or resistance. Higher the activity in volume, price and spread stronger that price level would act as support or resistance in future.
Settings:
AvgLen- It would allow you to set the SMA settings for volume bars. By default set at 20 means that SMA of 20D volume would be considered in script.
Volume Start Threshold - Default 1.3 - You can change this setting basis stock volatility. This would set the starting point in script to trigger support or resistance levels if volume is equal or higher then the multiplier you have chosen.
Bearish Volume Mult 1, 2 and 3: Set the the levels which can be adjusted to generate x1, x2 or x3 resistance levels which would appear on top of candles.
Bullish Volume Mult 1, 2 and 3: Set the levels which can be adjusted to generate x1, x2, or x3 support levels which would appear at bottom of candles.
Use of bearish and bullish volume mult is to let user define the multiplier value against which current volume bar would be checked. Higher the value means rare it would be.
x1 - Starting level of resistance/support. It would be considered as level 1 of support or resistance which can be broken easily. Happen too often.
x2 - Medium level of resistance/support. It would be considered as level 2 of support or resistance which can give tough fight as price would reach this level. If set as more then 50% of stock volatility of instrument then price would react for sure.
x3 - Strongest level of resistance/support. If set 3 or higher it would be rare to be generated and price may not visit level too often.
Bullish Candle Matrix %: Keep it above 50 to let script check how strong bullish candle is. Strength of candle increase as value increase from 50 towards 100. Keep it at 52 to track maximum bullish candles.
Bearish Candle Matrix %: Keep it below 50 to let script check how strong bearish candle is. Strength of candle increase as value increase from 50 towards 0. Keep it at 47to track maximum bearish candles.
Optional Lines
Optional lines usage no volume activity therefore can generate important price levels basis volume and price only.
Script work on all time frame where volume information is available. In absence of volume information script would only generate optional levels and that too if activated.
Notas de Lançamento:
Made few changes to detail setting headers. Zoomed in chart for better clarity on high price levels work.
Notas de Lançamento:
Made some change for ease of use. Back tested best suitable values has been hardcoded into system to generate best results. Only options available is to enable/disable optional and mandatory lines.