Pure Price Action

The Cnagda Pure Price Action indicator is a comprehensive price action-based tool designed to provide real-time, dynamic market analysis. It automatically identifies key candlestick patterns, support/resistance zones, and potential buy/sell signals by integrating price, volume, and multiple trend indicators.

Usage

The indicator classifies market conditions into specific "Zones" and "Labels" to assist in trade planning:

• Silver Zone: Created when price hits the lowest close in a window with peak volume. This suggests "accumulation" where buyers absorb supply. Look for bullish entries when price tests this zone, placing stops below the bottom line.
• Black Zone: Formed at the highest close with the lowest volume, signaling "distribution." This area often acts as major resistance where an uptrend may exhaust. Bearish entries are considered when price revisits this zone.
• Dynamic Lines: Dashed lines mark historical demand (Support - Blue) and supply (Resistance - Red/Purple). These help identify "floors" and "ceilings" for risk management and entry confluence.
• Momentum Labels:
  • Yellow/Green Labels: Appear at local price lows. Yellow indicates decreasing volume (selling exhaustion), while Green indicates increasing volume (aggressive buying).
  • Blue/Red Labels: Appear at local price highs. These signal buyer exhaustion or selling pressure, especially on decreasing volume.

Details

The system calculates a proprietary "Bull Score" and "Bear Score" by aggregating data from several technical sources, including RSI, ADX, SAR, CMF, OBV, CCI, Bollinger Bands, and TWAP. This scoring system filters out noise to provide a clear "BULLISH," "BEARISH," or "NEUTRAL" sentiment label on the chart. By combining structural price action (Zones) with momentum signals (Labels) and volume analysis, the script offers a multi-confluence approach to identifying reversals and trend continuations.

Settings

• Base Window (bc_len): Defines the lookback period for identifying local highs, lows, and volume extremes.
• Fallback HTF: Sets the higher timeframe used for identifying broader support and resistance levels.
• Enable Trendline Detection: Toggles the automatic detection of price trendlines.
• Volume Multiple: Adjusts the sensitivity for high-volume logic used in signal generation.
• HTF Timeframe: Allows users to choose which higher timeframe candles to overlay (e.g., 15m, 1H, 4H, 1D).
• Enable Elliott Module: Toggles the display of Elliott Wave patterns (ABC and 1–5 waves).
• Show Dashboard: Toggles the visibility of the on-chart information dashboard.

FAQ

How do I use the Silver and Black zones for entries?

The Silver Zone acts as a primary support floor; look for buy signals when price touches it. The Black Zone acts as a ceiling; look for sell signals when price tests it.

What is the difference between a Yellow and a Green label?

A Yellow label indicates a potential reversal on decreasing volume (exhaustion), whereas a Green label indicates a reversal on increasing volume (active accumulation).

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.