SPAS - Single Price Action Strategy

The SPAS - Single Price Action Strategy indicator identifies potential entry points by combining sequential price action movements with localized volume breakouts to trigger buy and sell signals.

Usage

The Usage section focuses on how the script identifies market reversals or continuations through specific candlestick patterns and volume surges. A "Buy" signal is generated when three consecutive bullish candles occur alongside a volume spike that exceeds the previous specified lookback period. Conversely, a "Sell" signal is triggered when three consecutive bearish candles are paired with a volume breakout.

While the script can be used on various timeframes, the original design demonstrates its best performance on the 4H interval. Users can leverage the built-in labels ("B" and "S") and arrow plots to visualize entries, while the "H", "L", and "V" characters help identify which components of the logic (Price Highs/Lows or Volume) are currently being met.

Details

The script operates on a multi-condition logic framework:

• Price Action: The strategy looks for a sequence where the close is greater than or equal to the open (bullish) or less than or equal to the open (bearish) for three consecutive bars prior to the current bar.
• Volume Filter: It calculates the maximum volume within a user-defined lookback window (Volume length). A signal is only validated if the current bar's volume exceeds this maximum value, indicating significant market participation.
• Execution: The strategy allows for pyramiding, meaning it can enter multiple positions in the same direction if conditions persist, with order fills calculated in real-time.

Settings

• Volume length: Determines the lookback period used to identify the highest volume bar. The current bar's volume must exceed this peak to trigger a signal.

FAQ

How do I interpret the "H", "L", and "V" characters?

"H" indicates that the last three candles were bullish, "L" indicates the last three were bearish, and "V" indicates that the current volume has exceeded the maximum volume of the lookback period. A trade is only entered when a price condition (H or L) aligns with a volume condition (V).

Can this strategy be used for automation?

Yes, the script includes optimized alert triggers for both buy and sell signals, which can be connected to external execution systems or exchanges via webhooks.

How can I access SPAS - Single Price Action Strategy?

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