Price Action Coach + Trend Projection

The Price Action Coach + Trend Projection indicator is a comprehensive technical analysis tool that automatically identifies key candlestick patterns and projects potential future price targets based on linear regression slopes. It is designed to act as an educational companion, providing detailed tooltips and visual cues to help traders interpret market structure and momentum.

Usage

The script serves as a multi-functional analysis dashboard on your chart. Key usage scenarios include:

• Pattern Recognition: Automatically detects formations such as Double Tops/Bottoms, Bullish/Bearish Engulfing, Hammers, and Shooting Stars. Each label includes a detailed tooltip explaining the pattern's significance and potential invalidation levels.
• Trend Identification: Uses the relationship between the 20 and 50 EMAs combined with linear regression slope to determine if the market is in an "UPTREND", "DOWNTREND", or "CHOP".
• Price Projection: Draws dynamic trend lines projecting future price targets over specific time horizons (1-day, 1-week, etc.) based on the current mathematical slope.
• Momentum Analysis: Identifies RSI divergences and high-volume breakout/breakdown events to help filter significant moves from market noise.

Details

The indicator calculates a linear regression slope over a user-defined lookback period to project price targets. It incorporates several core technical components:

• EMA Stack: Utilizes 20, 50, and 200 Exponential Moving Averages for trend confirmation.
• Volatility-Adjusted Zones: Target zones are calculated using ATR (Average True Range) to provide a realistic width for projected price targets.
• Time-to-Bar Conversion: Automatically adjusts its projection lengths based on the timeframe and symbol type (e.g., accounting for 24/7 crypto markets vs. standard equity hours).
• Cooldown Mechanism: Prevents signal clutter by ensuring a minimum number of bars pass before the same pattern can be labeled again.

Settings

• Projection: Adjust the trend lookback bars for slope calculation, the ATR multiplier for zone width, and toggle the thesis panel.
• Time Targets: Enable or disable specific projection lengths ranging from 1-day to 1-month targets.
• Price Action: Toggle pattern labels, set the minimum cooldown bars between signals, and adjust the volume average length for high-volume detection.

FAQ

How do I use the tooltips?

Hover your mouse over any pattern label (like "Bull Div" or "Breakout") on the chart to read a detailed explanation of the price action theory behind that specific signal.

What do the projected boxes represent?

The boxes represent potential price zones the asset may reach within a given timeframe if the current trend slope and volatility (ATR) persist.

How can I access this tool?

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