BULLSEYE BORDERS (Combined Price Action Follower)

The BULLSEYE BORDERS (Combined Price Action Follower) indicator provides a comprehensive framework for identifying support and resistance levels through a multi-layered approach based on Donchian Channels and price action patterns. This tool aims to help traders visualize market structure and potential entry zones by segmenting price movements into distinct actionable areas.

Usage

The tool divides the price action into several color-coded zones based on derived Donchian levels. Users can interpret the following areas to guide their trading decisions:

• Long Area (Green): When the price crosses above the bottom support levels into this green zone, it indicates potential long opportunities.
• Short Area (Red): When the price falls below the top resistance levels into this red zone, it signals potential short opportunities.
• Stop Area (Orange): This represents a squeezed or floating market position where price action is sideways; traders typically wait for a breakout or stop existing positions here.
• Boring Candles: The indicator highlights candles with small bodies relative to their total range in a specific color (Navy). Frequent "boring" candles often precede a breakout from the last high or low levels.
• Trend Confirmation: Traders are encouraged to use the indicator on 15-minute timeframes or higher for better reliability, especially in cryptocurrency markets.

Details

The script utilizes a modified Donchian Channel calculation, splitting the range between the high and low into multiple sub-levels (Up1-Up5 and Dw1-Dw5) to create visual boundaries. It incorporates the Arnaud Legoux Moving Average (ALMA) for smoothed signal generation, as the ALMA's responsiveness closely follows the price line, making it suitable for alert triggers. Additionally, the script tracks "Boring Candles" based on the body-to-range ratio and uses pivot-based high/low levels to define dynamic breakout and stop levels.

Settings

Main Settings

• DC Length: Determines the period used for calculating the highest highs and lowest lows of the Donchian Channels.
• Tight Candle Body <=(%): The percentage threshold for identifying "Boring Candles." If the body is less than this percentage of the total candle range, it is highlighted.
• ALMA Source: The price source used for the Arnaud Legoux Moving Average calculation.
• Arnaud Legoux MA Length: The window size for the ALMA calculation.
• ALMA Offset: Adjusts the smoothness and responsiveness of the ALMA.
• ALMA Sigma Value: Defines the filter width for the ALMA distribution.
• Multi: A multiplier buffer used to adjust the distance of the dynamic Buy and Stop levels from the pivot points.

FAQ

How do I interpret the colored areas?

The green and red areas signify entries into long or short momentum zones, while the orange area highlights market indecision or consolidation where price action is "squeezed."

What is the purpose of the ALMA line?

The ALMA line is used for smoother signal generation and is recommended for setting alerts, as its movement closely mirrors the price while filtering out minor volatility.

How can I access this script?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.