OPEN-SOURCE SCRIPT
Ellipse Price Action Indicator- Bk
The Ellipse Price Action Indicator is a trend and market-structure tool that combines moving-average focus points, volatility envelopes, momentum analysis, and compression detection into a single framework.
Instead of relying on a single trend-following method, the indicator evaluates multiple market conditions simultaneously to identify areas where trend continuation or directional expansion may occur.
Core Concepts
Focus Points
Two moving averages act as dynamic focus points:
Fast Focus Average
Slow Focus Average
The distance between these focus points helps measure trend separation and directional bias.
When the focus points converge, the market may be entering a compression phase.
When they diverge, directional momentum may be increasing.
Ellipse Channel
The indicator builds a volatility-based channel around the midpoint of the focus averages.
The channel width adapts using:
ATR volatility
Focus-point separation
Eccentricity calculations
This creates a dynamic structure that expands and contracts with changing market conditions.
Compression Detection
Market compression is measured by comparing focus-point separation against average volatility.
Compression zones may indicate:
Reduced directional movement
Energy accumulation
Potential expansion phases
The compression filter is integrated into signal generation.
Momentum Analysis
Momentum is evaluated using the slope of the focus-point relationship.
The indicator measures:
Direction
Magnitude
Trend consistency
Momentum information is combined with channel position and compression data.
Strength Meter
The Strength Meter combines:
Channel Position
Momentum Slope
Compression Characteristics
The result is displayed as a normalized strength value between 0 and 1.
Higher values indicate stronger alignment between trend, momentum, and market structure.
Signal Logic
Buy and sell signals are generated when multiple conditions align, including:
Focus-point crossover
Momentum direction
Compression state
Channel location
Breakout confirmation
Signals are designed as technical reference points and should be evaluated within a broader trading plan.
How To Use
Trend Identification
Focus averages aligned upward may indicate bullish conditions.
Focus averages aligned downward may indicate bearish conditions.
Compression Monitoring
Lower compression values indicate tighter market structure.
Expansion after compression may lead to increased volatility.
Strength Evaluation
The strength table can be used to monitor:
Trend quality
Momentum alignment
Relative market condition
Signal Confirmation
Signals may be used together with:
Support and resistance
Market structure analysis
Volume analysis
Risk management rules
Notes
The indicator is intended for educational and analytical purposes.
No indicator can predict future market movements with certainty.
Historical behavior does not guarantee future results.
Users should perform their own analysis before making trading decisions.
Instead of relying on a single trend-following method, the indicator evaluates multiple market conditions simultaneously to identify areas where trend continuation or directional expansion may occur.
Core Concepts
Focus Points
Two moving averages act as dynamic focus points:
Fast Focus Average
Slow Focus Average
The distance between these focus points helps measure trend separation and directional bias.
When the focus points converge, the market may be entering a compression phase.
When they diverge, directional momentum may be increasing.
Ellipse Channel
The indicator builds a volatility-based channel around the midpoint of the focus averages.
The channel width adapts using:
ATR volatility
Focus-point separation
Eccentricity calculations
This creates a dynamic structure that expands and contracts with changing market conditions.
Compression Detection
Market compression is measured by comparing focus-point separation against average volatility.
Compression zones may indicate:
Reduced directional movement
Energy accumulation
Potential expansion phases
The compression filter is integrated into signal generation.
Momentum Analysis
Momentum is evaluated using the slope of the focus-point relationship.
The indicator measures:
Direction
Magnitude
Trend consistency
Momentum information is combined with channel position and compression data.
Strength Meter
The Strength Meter combines:
Channel Position
Momentum Slope
Compression Characteristics
The result is displayed as a normalized strength value between 0 and 1.
Higher values indicate stronger alignment between trend, momentum, and market structure.
Signal Logic
Buy and sell signals are generated when multiple conditions align, including:
Focus-point crossover
Momentum direction
Compression state
Channel location
Breakout confirmation
Signals are designed as technical reference points and should be evaluated within a broader trading plan.
How To Use
Trend Identification
Focus averages aligned upward may indicate bullish conditions.
Focus averages aligned downward may indicate bearish conditions.
Compression Monitoring
Lower compression values indicate tighter market structure.
Expansion after compression may lead to increased volatility.
Strength Evaluation
The strength table can be used to monitor:
Trend quality
Momentum alignment
Relative market condition
Signal Confirmation
Signals may be used together with:
Support and resistance
Market structure analysis
Volume analysis
Risk management rules
Notes
The indicator is intended for educational and analytical purposes.
No indicator can predict future market movements with certainty.
Historical behavior does not guarantee future results.
Users should perform their own analysis before making trading decisions.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.