MTF Institutional Zones with Alerts (Impulse + Mitigation)

The MTF Institutional Zones with Alerts (Impulse + Mitigation) indicator automatically identifies multi-timeframe supply and demand levels based on significant institutional activity. By monitoring higher timeframe (HTF) impulse candles and their preceding consolidation points, it highlights high-probability reaction areas directly on your current chart.

Usage

The tool is designed to identify "Institutional Zones" across three user-defined timeframes (TF1, TF2, and TF3). For example, a trader may set these to 4H, 1H, and 15m to see institutional structures from higher timeframes while trading on a lower timeframe.

• Zone Formation: Demand zones are created from the last bearish candle before a bullish impulse. Supply zones are created from the last bullish candle before a bearish impulse.
• Impulse Detection: Adjust the "Impulse body >= ATR *" setting to filter for only the most significant market moves. A higher multiplier ensures only very strong "institutional" candles trigger new zones.
• Mitigation Logic: The indicator employs a 50% mitigation rule. A demand zone is removed once price reaches its midpoint from above; a supply zone is removed once price reaches its midpoint from below.
• Alerting: You can configure alerts for new zone formations, price mitigation events, or proximity alerts when price enters or gets within a specified percentage distance of a zone.

Details

The script utilizes several key logic components to ensure clean and relevant charting:

• Distance Filtering: To avoid plotting zones that are immediately irrelevant, zones are only kept if the distance from the HTF impulse close to the zone source is within a specific ATR multiplier.
• Zone Management: To maintain performance and visual clarity, the script limits the number of boxes displayed per side (Supply/Demand) for each timeframe. Older, unmitigated zones are automatically retired as new ones form.
• Real-time Extensions: Active zones are extended to the right in real-time until they are either mitigated by the 50% price rule or displaced by newer zones.

Settings

MTF Timeframes

• Enable TF1/TF2/TF3: Toggles the visibility and calculation of zones for the specific timeframe.
• TF1/TF2/TF3 Timeframe: Sets the HTF data source (e.g., 240 for 4-hour, 60 for 1-hour).

Logic

• Max zones per side (per TF): Defines how many active supply or demand boxes to keep on the chart per timeframe.
• *Impulse body >= ATR : The threshold for determining an "impulse" candle based on its body size relative to volatility.
• Only keep zones within ATR * from HTF close: A filter to ensure the impulse move hasn't traveled too far from its origin point before being considered valid.

Visuals

• Color/Transparency: Individual color and transparency controls for supply and demand zones across all three timeframes to allow for easy visual differentiation.

Alerts

• Proximity alert distance (%): The percentage distance from a zone that triggers a "Near" alert.
• Enable: Formation/Proximity/Mitigation Alerts: Toggles for the different alert types.

FAQ

How do I use multiple timeframes effectively?

It is recommended to set TF1 to a major trend timeframe (like Daily or 4H), TF2 to an intermediate timeframe (1H), and TF3 to your execution timeframe to see how various levels overlap.

Why do some zones disappear?

Zones are automatically removed when the price mitigates 50% of the zone's range or when the "Max zones per side" limit is reached and a newer zone is formed.

How can I access this indicator?

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