High-volume buy and sell signals with OB and FVG

The High-volume buy and sell signals with OB and FVG indicator identifies high-probability trading opportunities by combining volume analysis, price momentum, and trend-following moving averages.

Usage

This script identifies "Strong" price movements based on ATR-relative body size and volume confirmation.

• Buy Signals: Occur when price closes above the previous high with significant volume and momentum, while trading above the 200-period EMA.
• Sell Signals: Occur when price closes below the previous low with significant volume and momentum, while trading below the 200-period EMA.
• Visual Zones: The indicator highlights Smart Money Concept (SMC) zones such as Order Blocks and Fair Value Gaps (FVG) where strong moves originated.
• Trade Management: Automatic Take Profit (TP) and Stop Loss (SL) levels are plotted upon a signal. The SL is calculated using a multiplier of the ATR, and the TP is projected based on a user-defined risk-to-reward ratio.

Details

The script utilizes several layers of confirmation to ensure signal quality:

1. Trend Filter: The 200-period EMA serves as the primary trend filter to ensure trades are taken in the direction of the long-term trend.
2. Momentum Filter: A "Sensitivity" setting determines how much larger a candle must be relative to the ATR to be considered "strong."
3. Volume Filter: Only signals accompanied by volume higher than the 20-period average (multiplied by a user-defined threshold) are displayed.
4. Short-term EMAs: 9 and 21 EMAs are provided for additional context on immediate price action and potential dynamic support/resistance.

Settings

• Sensibilité OB/FVG: Adjusts the threshold for what constitutes a "strong" move relative to the ATR. Higher values result in fewer, more significant signals.
• Seuil Volume: A multiplier for the 20-period average volume. A value of 1.1 means volume must be 10% higher than average.
• Ratio Risque/Récompense (TP): Sets the target profit level relative to the distance of the stop loss.
• Multiplicateur Stop Loss (ATR): Determines the width of the stop loss based on current market volatility (ATR).

FAQ

How do I interpret the visual boxes?

The boxes represent areas of high momentum where "Smart Money" has entered the market. These zones often act as future areas of interest where price might react if revisited.

What timeframes are best for this indicator?

While the script is versatile, it is particularly effective on timeframes where volume data is most reliable, such as the 15m, 1h, or 4h charts.

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.