Zig-Zag Open Interest Footprint

The Zig-Zag Open Interest Footprint tool calculates and visualizes open interest activity relative to price action across specific zig-zag trends. By anchoring open interest footprints to market swings, it provides a localized view of how market participants are positioning themselves during different phases of a trend.

Usage

The indicator generates volume-profile-like footprints based on Open Interest (OI) changes for each trend identified by the Zig-Zag logic. It categorizes OI changes into four distinct possibilities:

• Higher OI + Higher Price: Indicates aggressive buying or new long positions.
• Lower OI + Higher Price: Suggests short covering.
• Higher OI + Lower Price: Indicates aggressive selling or new short positions.
• Lower OI + Lower Price: Suggests long liquidation.

Users can utilize the footprint to identify high-interest price blocks within a trend. The Neon Highlight feature identifies the price levels with the highest OI change, serving as potential support or resistance.

Details

This tool utilizes TradingView's polyline features to calculate up to 9,999 profile rows per trend, offering high precision without excessive data aggregation. It separates the OI data into specific categories to help traders distinguish between trend-following participation and counter-trend liquidations. The indicator also supports multiple Point of Control (POC) configurations, allowing users to track the most significant level of OI change for each category or a single general POC for the entire trend.

Settings

Profiles

• Show Profiles: Toggle visibility for the four OI/Price categories (Up OI/Up Price, Down OI/Up Price, etc.).
• Profile Rows: Determines the vertical granularity of the footprint (up to 9998 rows).
• Scaling Factor: Adjusts the horizontal width of the profiles.
• Curved Profiles: Toggles a stylistic curved look for the profile distributions.
• VP Plot Type: Choose between "Middle" or "Opposing Side" for footprint alignment.

Summed OI

• Show Sum Labels: Displays the aggregate OI for the identified trend.
• Show Footprints: Enables the numerical display of OI values at specific price blocks.
• Neon Highlight: Highlights levels with the highest OI change for easier identification.

POC Settings

• Use POCs: Enables the display of Point of Control lines.
• Delete Violated POCs: Removes POC lines once price has traded through them.
• Use General POC: Displays one consolidated POC instead of category-specific lines.

Zig Zag Settings

• Price deviation: The percentage change required to identify a new zig-zag reversal.
• Pivot legs: The number of bars required to confirm a pivot.

FAQ

How do I access the Zig-Zag Open Interest Footprint?

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

Does this work on all symbols?

This indicator requires Open Interest data. It is primarily designed for Crypto (perpetual futures) and traditional Futures markets where OI data is provided by the exchange.

What is the difference between a general POC and category POCs?

A general POC shows the single price level with the most OI change overall, while category POCs track the most significant level for specific behaviors like "Short Covering" or "Long Liquidation" independently.