# Rotation Factor

Rotation Factor is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

Rotation Factor keeps Market Profile's day-timeframe auction tally: each completed 30-minute TPO bracket is scored against its predecessor, +1 for a higher high or low and -1 for lower ones, summed across a daily session. The stepline plots against the session's own possible range with strong-rotation levels at 50%, bracket columns, an effort-versus-result dashboard and six alerts.

- Indicator in the LuxAlgo Library, by LuxAlgo, published May 31, 2026.
- Access: free.
- Concepts: [Rotation Factor](https://www.luxalgo.com/library/concept/rotation-factor/) (primary), [Auction Market Theory](https://www.luxalgo.com/library/concept/auction-market-theory/)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=d0qlwzbw9b10e7kj3u524kv7
- Page: https://www.luxalgo.com/library/indicator/rotation-factor/

**Rotation Factor** keeps Market Profile's period-by-period auction score automatically: each finished 30-minute TPO bracket scores against its predecessor (+1 per higher extreme, -1 per lower, 0 for unchanged) and the running total plots as a stepline resetting each session. The definitive build of the [rotation factor](https://www.luxalgo.com/library/concept/rotation-factor/) judges the count against the session's own possible range (±2 per scored bracket) with strong-rotation levels as a share of that range rather than a fixed number.

## How to Trade the Rotation Factor?

- **One-sided counts**: a total holding beyond the strong-rotation levels says one side keeps winning the auctions, an argument for trend-day tactics.
- **Balance**: totals inside the balance band read as a two-sided auction, favoring responsive trades around the edges.
- **Effort versus result**: the dashboard compares the count's direction with the session's net price change. Strong rotation without progress warns of absorption, worth checking against the [volume and order-flow tools](https://www.luxalgo.com/library/family/volume-orderflow/).

Six alerts cover strong rotation, sign flips, the divergence and the session lock-in.

## Rotation Factor Settings

- **Session Anchor** (default D): session the tally runs over and resets on; choose deliberately on 24-hour markets.
- **TPO Bracket** (default 30): one bracket's duration, the statistic's only real parameter; must not be below the chart timeframe.
- **Strong Rotation Threshold %** (default 50): share of the possible range that reads as strongly one-sided.
- **Balance Band %** (default 15): share of the range that reads as balance.
- **Show Dashboard** (default enabled) with **Position** (default Top Right) and **Size** (default Small).
- Style toggles draw the score columns, gradient fill, range envelope, threshold levels and session breaks (all default enabled).

## Frequently Asked Questions

### How does this relate to a TPO profile?

It is the running arithmetic of the auction the profile displays. A [TPO Profile](https://www.luxalgo.com/library/indicator/tpo-profile/) shows where the session spent its time and what shape it built; the rotation factor compresses the bracket-by-bracket directional attempts into a single number.

### Why is there no fixed extreme level for the count?

Because the achievable total grows with each bracket the session prints: twelve comparisons bound the day at ±24. Strength is therefore scored as a percentage of the day's own maximum, which the thresholds and alerts key on.

### What does the developing bracket contribute?

A provisional score, drawn as a column that settles when its bracket completes. The session's first bracket is the unscored baseline, and comparisons never span sessions: each day's tally starts at its second bracket.

## Related indicators

- [TPO Profile](https://www.luxalgo.com/library/indicator/tpo-profile/) (Auction Market Theory): markdown at https://www.luxalgo.com/library/indicator/tpo-profile.md
- [Balance vs Imbalance](https://www.luxalgo.com/library/indicator/balance-vs-imbalance/) (Auction Market Theory): markdown at https://www.luxalgo.com/library/indicator/balance-vs-imbalance.md
- [Initial Balance Breakout Signals](https://www.luxalgo.com/library/indicator/initial-balance-breakout-signals/) (Initial Balance): markdown at https://www.luxalgo.com/library/indicator/initial-balance-breakout-signals.md
- [Profile Shape Taxonomy](https://www.luxalgo.com/library/indicator/profile-shape-taxonomy/) (Auction Market Theory): markdown at https://www.luxalgo.com/library/indicator/profile-shape-taxonomy.md
- [80% Rule](https://www.luxalgo.com/library/indicator/80-percent-rule/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/80-percent-rule.md
- [Auction Failure](https://www.luxalgo.com/library/indicator/auction-failure/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/auction-failure.md
- [Value Migration](https://www.luxalgo.com/library/indicator/value-migration/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/value-migration.md
- [One-timeframing](https://www.luxalgo.com/library/indicator/one-timeframing/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/one-timeframing.md

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Source: https://www.luxalgo.com/library/indicator/rotation-factor/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
