OPEN-SOURCE SCRIPT
Market Pressure Dashboard
### **Market Pressure Dashboard (MPD)** 📊
**Overview**
The **Market Pressure Dashboard** is a professional-grade sentiment and momentum analysis tool designed to visualize the hidden forces behind price action. By combining volume-weighted cumulative delta (CVD) with normalized momentum and volatility regime filtering, the MPD provides a "Composite Score" that reveals whether market pressure is bullish, bearish, or exhausted.
Unlike standard oscillators, the MPD uses `ta.percentrank` normalization, ensuring that values are always relative to recent market history. This makes it self-calibrating across any asset or timeframe.
---
**How It Works** ⚙️
1. **Composite Calculation**: The indicator blends two core metrics—Normalized CVD and Normalized Momentum—into a single **Composite Score**. This score filters out noise and highlights high-probability trend windows.
2. **Cumulative Volume Delta (CVD)**: We calculate raw delta as a mix of price action (body/wick ratio) and relative volume. This is smoothed via EMA and normalized to a ±100 scale.
3. **Momentum**: Calculated as the Rate of Change (RoC) of the normalized CVD. It identifies when market pressure is accelerating or decelerating.
4. **Divergence Detection**: The script features a **Dynamic Disagreement Filter**. It identifies "Divergence" when CVD and Momentum move in opposite directions, but only if that disagreement is statistically significant compared to recent history.
5. **Volatility Regime**: Uses ATR Percentile to identify "Low Vol" (choppy) and "High Vol" (blow-off) regimes. Signals are visually suppressed during these periods to avoid fakeouts.
---
**Visual Elements** 🎨
• **Main Histogram (Columns)**: Represents Normalized CVD. Bright colors indicate strong pressure; faded colors indicate volatility suppression.
• **Secondary Histogram (Thin Bars)**: Represents Momentum. Used to spot acceleration before it shows up in price.
• **Composite Line (White/Bright)**: The master trend signal. It brightens when it agrees with the underlying **Trend Bias**.
• **Trend Bias Line (Slow EMA)**: Provides the "Big Picture" direction.
• **ATR Area Histogram**: A subordinate orange area at the bottom showing current volatility percentile (±25 = extreme).
• **Divergence Dots & Zones**: Yellow circles and background shading highlight areas where CVD and Momentum are out of sync.
• **Dashboard Table**: A floating UI (positionable in any corner) showing real-time values for CVD, Mom, Composite, and Volatility State.
---
**How to Use** 🚀
• **Trend Following**: Look for the Composite Line to cross the Zero Line in agreement with the Trend Bias.
• **Mean Reversion**: Watch for Divergence Dots (Yellow) when the Composite Score is in extreme territory (±75). This often precedes a trend exhaustion.
• **Breakout Validation**: A valid breakout should be accompanied by a spike in both CVD and Momentum histograms. If price breaks out but CVD stays flat, it's likely a trap.
• **Volatility Filter**: Avoid taking new signals when the background turns **Blue (Suppressed)**. This indicates volatility is either too low for follow-through or too high for safe stops.
---
**Inputs** 🛠️
• **CVD/Mom Weights**: Adjust how much "Speed" (Momentum) vs. "Force" (CVD) influences the Composite Score.
• **Normalization Lookback**: Default is 100. Higher values make the indicator more stable; lower values make it more reactive.
• **Divergence Filter**: Minimum absolute value for divergence dots to appear (default: 10). Filters out minor disagreements.
• **Table Position**: Move the dashboard UI to any corner (Top-Left, Top-Right, Bottom-Left, Bottom-Right).
• **Volume Opacity**: Control the transparency of volume histograms for better visual layering.
• **Volatility Suppression**: Enable/disable the ATR-based background colouring.
---
**Best Practices** 💡
• **Timeframes**: Works on any timeframe, but performs best on 15m–4H for swing trading and 1H–D for position trading.
• **Asset Classes**: Excellent for forex, crypto, and futures. For stocks, ensure "Use Volume" is enabled in chart settings.
• **Combination**: Pair with Smart Money Concepts (ICT/SMC) for optimal entry timing. The MPD excels at confirming Order Block breakouts.
• **Divergence is King**: The most reliable signals occur when Divergence Dots appear at ±75 Composite extremes—this is where trends exhaust.
---
**Credits & License**
Created by Tonsil. Free to use and modify. If you republish, please credit the original work.
**Overview**
The **Market Pressure Dashboard** is a professional-grade sentiment and momentum analysis tool designed to visualize the hidden forces behind price action. By combining volume-weighted cumulative delta (CVD) with normalized momentum and volatility regime filtering, the MPD provides a "Composite Score" that reveals whether market pressure is bullish, bearish, or exhausted.
Unlike standard oscillators, the MPD uses `ta.percentrank` normalization, ensuring that values are always relative to recent market history. This makes it self-calibrating across any asset or timeframe.
---
**How It Works** ⚙️
1. **Composite Calculation**: The indicator blends two core metrics—Normalized CVD and Normalized Momentum—into a single **Composite Score**. This score filters out noise and highlights high-probability trend windows.
2. **Cumulative Volume Delta (CVD)**: We calculate raw delta as a mix of price action (body/wick ratio) and relative volume. This is smoothed via EMA and normalized to a ±100 scale.
3. **Momentum**: Calculated as the Rate of Change (RoC) of the normalized CVD. It identifies when market pressure is accelerating or decelerating.
4. **Divergence Detection**: The script features a **Dynamic Disagreement Filter**. It identifies "Divergence" when CVD and Momentum move in opposite directions, but only if that disagreement is statistically significant compared to recent history.
5. **Volatility Regime**: Uses ATR Percentile to identify "Low Vol" (choppy) and "High Vol" (blow-off) regimes. Signals are visually suppressed during these periods to avoid fakeouts.
---
**Visual Elements** 🎨
• **Main Histogram (Columns)**: Represents Normalized CVD. Bright colors indicate strong pressure; faded colors indicate volatility suppression.
• **Secondary Histogram (Thin Bars)**: Represents Momentum. Used to spot acceleration before it shows up in price.
• **Composite Line (White/Bright)**: The master trend signal. It brightens when it agrees with the underlying **Trend Bias**.
• **Trend Bias Line (Slow EMA)**: Provides the "Big Picture" direction.
• **ATR Area Histogram**: A subordinate orange area at the bottom showing current volatility percentile (±25 = extreme).
• **Divergence Dots & Zones**: Yellow circles and background shading highlight areas where CVD and Momentum are out of sync.
• **Dashboard Table**: A floating UI (positionable in any corner) showing real-time values for CVD, Mom, Composite, and Volatility State.
---
**How to Use** 🚀
• **Trend Following**: Look for the Composite Line to cross the Zero Line in agreement with the Trend Bias.
• **Mean Reversion**: Watch for Divergence Dots (Yellow) when the Composite Score is in extreme territory (±75). This often precedes a trend exhaustion.
• **Breakout Validation**: A valid breakout should be accompanied by a spike in both CVD and Momentum histograms. If price breaks out but CVD stays flat, it's likely a trap.
• **Volatility Filter**: Avoid taking new signals when the background turns **Blue (Suppressed)**. This indicates volatility is either too low for follow-through or too high for safe stops.
---
**Inputs** 🛠️
• **CVD/Mom Weights**: Adjust how much "Speed" (Momentum) vs. "Force" (CVD) influences the Composite Score.
• **Normalization Lookback**: Default is 100. Higher values make the indicator more stable; lower values make it more reactive.
• **Divergence Filter**: Minimum absolute value for divergence dots to appear (default: 10). Filters out minor disagreements.
• **Table Position**: Move the dashboard UI to any corner (Top-Left, Top-Right, Bottom-Left, Bottom-Right).
• **Volume Opacity**: Control the transparency of volume histograms for better visual layering.
• **Volatility Suppression**: Enable/disable the ATR-based background colouring.
---
**Best Practices** 💡
• **Timeframes**: Works on any timeframe, but performs best on 15m–4H for swing trading and 1H–D for position trading.
• **Asset Classes**: Excellent for forex, crypto, and futures. For stocks, ensure "Use Volume" is enabled in chart settings.
• **Combination**: Pair with Smart Money Concepts (ICT/SMC) for optimal entry timing. The MPD excels at confirming Order Block breakouts.
• **Divergence is King**: The most reliable signals occur when Divergence Dots appear at ±75 Composite extremes—this is where trends exhaust.
---
**Credits & License**
Created by Tonsil. Free to use and modify. If you republish, please credit the original work.
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.