Auric Reference Crucible

The Auric Reference Crucible tool is an open-source reference-price state engine that classifies price behavior around key institutional levels like daily, weekly, and monthly opens. It functions as a structured decision-making framework, transforming static horizontal lines into a dynamic state machine that tracks untouched levels, tests, reclaims, and rejections to identify active market control.

Usage

The Usage section describes how the script can be used to identify market context and potential execution zones. Traders can use the dashboard to determine which reference level is currently exerting the most influence on price action and whether the current state is bullish or bearish.

Anchor Interaction

The script classifies interaction into several states:

• Untouched: The price has not yet reached the reference level.
• Touched/Tested: Price is interacting with the anchor within an ATR-defined proximity.
• Reclaimed: Price has moved back through a reference level with confirmed bar closes.
• Rejected: Price tested the level and failed to sustain a move beyond it, often marked by wick expansion.

Execution Rails

When the active control reference and the underlying confirmation logic (based on trend filters and pressure windows) align, the script can plot "execution rails." These are compact visual plans that provide a structured review of potential entries, stop losses, and take-profit targets (TP1 and TP2).

Details

The script utilizes ATR (Average True Range) to define touch distances and reaction band thickness, ensuring that levels adapt to the specific volatility of the asset being traded. This prevents the "one-size-fits-all" limitation of traditional horizontal support and resistance lines.

Control Scoring System

A proprietary scoring algorithm evaluates anchors based on their state, proximity to current price, volume pressure, and reaction behavior. The anchor with the highest score is designated as the "active control reference," signifying its dominance in the current market environment.

State Confirmation

To reduce the risk of intrabar repainting, the script includes an optional "Confirmed-Bar State Changes" setting. When enabled, state transitions (such as moving from a "Test" to a "Reclaim") are only finalized once the current candle closes, providing more reliable signals for systematic trading.

Settings

Reference Anchors

• Show Daily Open: Toggles the daily opening price level.
• Show Weekly Open: Toggles the weekly opening price level.
• Show Monthly Open: Toggles the monthly opening price level.
• Show Previous Close: Toggles the previous day's closing price.

Signals

• Touch Zone ATR: Sets the volatility-adjusted distance used to trigger a "Touch" state.
• Reaction Band ATR: Adjusts the thickness of the bands around active references.
• Reclaim Confirmation Bars: Determines the number of bars required above/below a level to confirm a reclaim.
• Wick Rejection Multiple: Sets the sensitivity for detecting price rejections based on wick-to-body ratios.
• Confirmed-Bar State Changes: When active, ensures state logic only updates on closed bars.

Visuals & Execution

• Trend Filter EMA: The period for the EMA used to filter signals against the prevailing trend.
• Pressure Window: The lookback period used to calculate volume-based pressure scores.
• Minimum Control Score: The threshold required for an anchor to generate an execution rail.
• Stop/TP ATR & R: Configuration for the risk-to-reward parameters of the execution rails.
• Fade Untouched Anchors: Reduces the visual prominence of levels that have not yet been interacted with.

FAQ

How do I identify which level is most important?
The dashboard highlights the "Active Control" anchor, which is the level currently receiving the highest score based on price proximity and recent interaction behavior.

Why do some levels disappear or change color?
The "Fade Untouched Anchors" setting dims inactive levels to reduce chart clutter. Colors change based on the state (e.g., green for a bullish reclaim, red for a rejection) to provide immediate visual context.

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