Sequencer

The Sequencer indicator helps traders identify sequences of price movements based on their relationship to past prices, offering highly customizable features to suit individual trading strategies.

To cater to various trading styles, the indicator includes two main phases: the "Preparation" phase and the "Lead-Up" phase. Each phase comes with customizable steps and attributes, providing detailed insights into market behavior. Additionally, traders can highlight the final step before each phase completes with a level marker, which can be used as a critical price point for decision-making.

How to Trade the Sequencer Trading Indicator?

The indicator features dynamic visuals that highlight "Preparation" and "Lead-Up" phases, each driven by a sequence of specified price events. During these phases, prices can be required to be higher or lower than those from previous bars, setting the framework for pattern recognition.

Upon the completion of the preparation stage, the lead-up phase begins. It's important to note, however, that a reversal is not uncommon after finalizing a preparation phase. Green highlights indicate bullish preparations, while red highlights indicate bearish preparations.

Finalizing a "Lead-Up" phase suggests an imminent market reversal—bullish lead-ups (blue) may signal upward trend reversals, whereas bearish lead-ups (orange) hint at downward reversals.

Longer "Preparation" and "Lead-Up" phases allow traders to detect potential, more sustained reversals. Customizing the length of these phases can adapt the indicator to capture larger market trends.

Within the indicator settings, traders can toggle whether to display levels based on phase completion using the "Preparation/Lead-Up Completion Levels" setting and determine how many recent levels to show via the "Show Last" option.

Understanding the Preparation Phase

The "Preparation" phase sets the stage for the "Lead-Up" phase. For completion, a series of N consecutive prices must be lower than the close P bars ago in a bullish phase, or higher for a bearish phase. N is adjustable via the "Preparation Phase Length," and P is set by the "Comparison Period."

Embracing Refined Preparations

In contrast to standard preparations, a refined preparation requires specific low prices from chosen steps in "Refined Preparation Steps" to be above the previous step's low for a bullish indicator, and high prices for bearish.

Riding the Lead-Up Phase

The "Lead-Up" phase is triggered post-completion of the "Preparation" phase.

To finalize this phase, prices must drop below the low from P bars ago N times for a bullish pattern—or rise above the high for bearish—where N equals "Lead-Up Phase Length" and P mirrors the "Comparison Period."

These conditions aren't strictly consecutive, adding flexibility in pattern detection.

Avoiding Lead-Up Cancellation

Unfinished "Lead-Up" phases may be canceled if a contrary preparation occurs. Canceling prevents the indicator from considering outdated leads, but can be disabled by turning off "Apply Cancellation."

Eliminate Lead-Up Suspension

Like refined preparations, specific steps in lead-ups can be set to surpass the last step price. This eliminates the chance of completing a lead-up in contrast to trend direction.

In bullish "Lead-Up," the last step's low must be lower than user-designated steps' minimum close prices. For bearish, the reverse applies—ensuring accurate directional reversals.

Configuring Settings

Preparation Phase Settings

• Preparation Phase Length: Dictates the phase's duration.
• Comparison Period: Establishes a timeframe for price comparisons.
• Preparation Type: Choose between "Standard" or "Refined" setups.
• Refined Preparations Steps: Configures steps for refined preparations.

Lead-Up Phase Settings

• Lead-Up Phase Length: Sets the lead-up duration.
• Comparison Period: Comparison standard for price evaluation.
• Suspension: Enforces suspension for lead-up eligibility.
• Suspension Steps: Decides qualifying steps for lead-up validation.
• Apply Cancellation: Enables the removal of invalidated lead-ups.

Level Customization

• Bullish Preparations Levels: Display completed bullish preparation levels.
• Show Last: Define how many recent levels to showcase.
• Bearish Preparations Levels: Visualize completed bearish preparation levels.
• Show Last: Control recent bearish levels visible.

FAQs

How can I access the Sequencer Indicator?

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

What is the purpose of the "Comparison Period"?

The "Comparison Period" is used to evaluate the current price against prices from a previous period, helping identify trend directions and potential reversals.

Can I customize the settings for more accurate predictions?

Yes, the indicator allows for a variety of customizations including phase lengths and specific price levels to enhance prediction accuracy.