Price Action States [SS]

The Price Action States indicator is a structural trend-trading system that utilizes a Nearest-Neighbor Classification model to identify market regimes by comparing current price velocity against a database of institutional accumulation and distribution phases. It serves as a real-time scanner that matches current price action "fingerprints" against high-conviction historical moves.

Usage

The indicator provides a comprehensive dashboard and visual overlays to guide trading decisions:

• Stats Table (Top Right): This provides the "Live" fingerprint. It displays the current PA State (Bullish or Bearish classification), PA Confidence (a similarity score from 0–100% measuring how closely the current slope matches the training library), and the raw Slope velocity.
• Backtest Table (Bottom Right): This validates the performance of the model on your specific ticker and timeframe. It tracks the Success Rate of signals and the Avg $ Move to help set realistic profit targets.
• Waterfall Gradient: This acts as a heatmap for price action states. When the neon waterfall color matches the Supertrend color, it signals strong trend confluence.
• Target Price Line: Once a signal is confirmed (following a 5-bar evaluation period), the script plots an automated target based on either current volatility (ATR) or historical success data.

Details

This tool is built upon a model trained in the R programming language using data from 50 diverse tickers across Forex, Crypto, Futures, and Equities. The developer isolated thousands of bars of "Pure Bullish" and "Pure Bearish" regimes to extract specific Linear Regression Coefficients (slopes) that define institutional momentum. These coefficients are hardcoded as "fingerprints" within the Pine Script code. Instead of relying on traditional lagging indicators, this model measures how closely current market behavior mimics historical high-conviction regimes.

Settings

• Supertrend Multiplier: Adjusts the sensitivity of the macro trend filter.
• Supertrend Period: Sets the lookback period for the Supertrend calculation.
• Signal Confidence %: Filters signals based on their similarity to the training data. Setting this to 90%+ ensures signals only trigger when the market perfectly mimics historical fingerprints.
• Price Target Type: Select between "ATR" (best for choppy markets using current volatility) or "Average Move" (uses historical backtest data, best for trending markets).
• Show Backtest Table: Toggles the visibility of the historical performance table.
• Show Stats Table: Toggles the visibility of the real-time classification table.

FAQ

How do I interpret the PA Confidence score? A score above 90% indicates the market is closely mimicking a high-conviction institutional move, while a score below 70% suggests a "noisy" state where historical fingerprints are a weak match.

Can this be used on any ticker? Yes, the underlying model was trained to generalize across multiple sectors including international indices (NIFTY, DAX), Forex, and Equities.

How do I access Price Action States? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.