OPEN-SOURCE SCRIPT
Mis à jour SBP Price Response Engine
SBP Price Response Engine is a rule-based analytical indicator that evaluates how price responds to confirmed market reference levels. Rather than attempting to predict future direction or continuously follow trends, the indicator studies completed price interaction around established reference areas and identifies qualified bullish or bearish response observations after objective confirmation.
The methodology is based on the concept that significant price movements are often preceded by measurable interactions with previously confirmed price references. Instead of treating every touch of a level as equally meaningful, the indicator evaluates the quality of the interaction before displaying a BUY or SALE observation.
Methodology
The analytical workflow begins by building dynamic price references from confirmed pivot recurrence. Nearby confirmed pivots are merged into evolving reference zones, allowing the indicator to develop market memory that adapts as additional confirmations occur. References mature over time as they receive additional confirmation while automatically discarding stale levels that no longer remain relevant.
Each completed bar is then evaluated against these active references using several independent response models. Rather than relying on a single condition, the indicator measures different categories of observable market behaviour, including:
Controlled rejection after limited penetration
Closing acceptance beyond a reference
Timely recovery following an accepted break
Decisive directional displacement
Repeated pressure release near active references
Delayed break confirmation using short-term reference memory
Confirmed pivot-response events
Every response family is evaluated independently before contributing to the final analytical decision. The qualification process considers multiple objective measurements, including:
Candle body structure
Upper and lower wick characteristics
Closing location within the candle
ATR-normalized penetration and displacement
Reference maturity
Local price expansion
Optional relative-volume participation
Each response receives an internally calculated quality score. Only observations satisfying their respective qualification requirements become eligible for the final signal-routing process.
Signal Routing
All qualified response families are processed through a unified decision engine rather than operating as independent indicators. The routing process combines the qualified analytical observations into a single BUY or SALE output while enforcing signal alternation and a minimum spacing between consecutive observations. This helps reduce repeated indications during persistent directional movement while maintaining continuous internal analysis of every completed bar.
Visual Output
The indicator can display:
Dynamic upper and lower price reference lines
Qualified BUY observations
Qualified SALE observations
Confirmed pivot-response observations
Alert conditions for all supported analytical event families
The visual output is intentionally designed to remain uncluttered while presenting only qualified analytical observations.
Inputs
Users can adjust several analytical parameters, including:
Reference confirmation depth
Reference clustering tolerance
Minimum reference confirmations
Maximum reference age
Penetration requirements
Recovery requirements
Acceptance confirmation
Recovery window
Minimum response quality
Optional relative-volume participation
Display of reference lines and observations
These settings allow users to adapt the analytical sensitivity without altering the underlying methodology.
Notes
SBP Price Response Engine is an analytical indicator, not a trading strategy. It does not place trades, calculate position sizing, manage portfolio risk, estimate profitability, or predict future price movement. All observations are generated from completed market data according to predefined analytical rules.
Like any technical analysis tool, the indicator should be used alongside independent market analysis, risk management, and appropriate trading discipline.
The methodology is based on the concept that significant price movements are often preceded by measurable interactions with previously confirmed price references. Instead of treating every touch of a level as equally meaningful, the indicator evaluates the quality of the interaction before displaying a BUY or SALE observation.
Methodology
The analytical workflow begins by building dynamic price references from confirmed pivot recurrence. Nearby confirmed pivots are merged into evolving reference zones, allowing the indicator to develop market memory that adapts as additional confirmations occur. References mature over time as they receive additional confirmation while automatically discarding stale levels that no longer remain relevant.
Each completed bar is then evaluated against these active references using several independent response models. Rather than relying on a single condition, the indicator measures different categories of observable market behaviour, including:
Controlled rejection after limited penetration
Closing acceptance beyond a reference
Timely recovery following an accepted break
Decisive directional displacement
Repeated pressure release near active references
Delayed break confirmation using short-term reference memory
Confirmed pivot-response events
Every response family is evaluated independently before contributing to the final analytical decision. The qualification process considers multiple objective measurements, including:
Candle body structure
Upper and lower wick characteristics
Closing location within the candle
ATR-normalized penetration and displacement
Reference maturity
Local price expansion
Optional relative-volume participation
Each response receives an internally calculated quality score. Only observations satisfying their respective qualification requirements become eligible for the final signal-routing process.
Signal Routing
All qualified response families are processed through a unified decision engine rather than operating as independent indicators. The routing process combines the qualified analytical observations into a single BUY or SALE output while enforcing signal alternation and a minimum spacing between consecutive observations. This helps reduce repeated indications during persistent directional movement while maintaining continuous internal analysis of every completed bar.
Visual Output
The indicator can display:
Dynamic upper and lower price reference lines
Qualified BUY observations
Qualified SALE observations
Confirmed pivot-response observations
Alert conditions for all supported analytical event families
The visual output is intentionally designed to remain uncluttered while presenting only qualified analytical observations.
Inputs
Users can adjust several analytical parameters, including:
Reference confirmation depth
Reference clustering tolerance
Minimum reference confirmations
Maximum reference age
Penetration requirements
Recovery requirements
Acceptance confirmation
Recovery window
Minimum response quality
Optional relative-volume participation
Display of reference lines and observations
These settings allow users to adapt the analytical sensitivity without altering the underlying methodology.
Notes
SBP Price Response Engine is an analytical indicator, not a trading strategy. It does not place trades, calculate position sizing, manage portfolio risk, estimate profitability, or predict future price movement. All observations are generated from completed market data according to predefined analytical rules.
Like any technical analysis tool, the indicator should be used alongside independent market analysis, risk management, and appropriate trading discipline.
Notes de version
SBP Price Response Engine is a price-response and directional-state framework designed to interpret how price behaves around evolving areas of market participation and confirmed structural reference levels.The framework does not generate Buy and Sale labels from one crossover, moving average, oscillator reading or isolated candle condition. Instead, it evaluates a sequence of related market behaviours: where participation is concentrating, whether price is being accepted or rejected around that area, whether an important structural reference is holding or failing, and whether directional pressure supports continuation or reversal.
Developing Participation Structure
The indicator maintains a developing participation center derived from price and available trading volume.
The calculation also measures how price is displaced from that center, whether the center itself is moving upward or downward, and where each candle closes within its own range.
These elements are combined into directional evidence.
When usable volume information is unavailable, a price-based fallback is used so the framework can continue operating without becoming dependent on volume availability.
The participation structure also defines an internal control region and a wider value region. These areas help distinguish normal rotational movement from price that is establishing directional acceptance outside the prevailing participation area.
Price Reference Memory
Confirmed structural turning points are used to maintain upper and lower Price Reference Lines.
Nearby confirmed turning levels can be grouped into a common reference instead of treating every pivot as an independent level.
This allows the framework to remember repeatedly relevant price areas while older or distant references gradually lose importance.
The reference lines are session-based. A line from one trading session is not connected to the next session, which keeps historical structure visually separated.
Adaptive Participation Envelope
The Adaptive Participation Envelope represents the outer dispersion of developing session activity.
It is calculated from the session's evolving participation-weighted price distribution.
When trading becomes more dispersed, the envelope expands. When participation becomes more concentrated, it contracts.
The envelope is not used simply as fixed support or resistance. Its main purpose is to identify when price is becoming unusually extended relative to developing session participation.
A strong rejection from an outer boundary can therefore block a weak signal that attempts to move against that rejection.
Directional Strength Channel
The Directional Strength Channel displays the directional state accepted by the framework.
Its direction depends on participation bias, movement of the developing participation center, price displacement and short-term directional behaviour.
A bullish channel is displayed only while the evidence supports the upward state. A bearish channel is shown under corresponding downside conditions.
The beginning of a new opposite channel is also treated as meaningful information.
If a bullish channel begins while the active state is Sale, the framework can print a Buy. If a bearish channel begins while the active state is Buy, it can print a Sale.
This allows a clear directional transition to replace an outdated opposing state.
Buy and Sale Qualification
Buy and Sale signals require agreement between several parts of the same response process.
The framework evaluates:
acceptance beyond the developing value region;
recovery through the control region after temporary displacement;
liquidity-style rejection followed by local structural confirmation;
candle body quality and closing position;
participation expansion;
directional evidence;
proximity to confirmed Price Reference Lines;
interaction with the Adaptive Participation Envelope;
agreement with the Directional Strength Channel.
On intraday charts, the framework also evaluates short-term buying and selling pressure, rejection behaviour, initiative movement, local liquidity responses and adaptive directional behaviour.
This intraday assessment acts as confirmation inside the same signal process rather than generating a separate independent signal stream.
Signal State Control
The final signal engine follows an alternating directional state.
After a Buy has been accepted, another Buy cannot print until a Sale has first been accepted. After a Sale, another Sale cannot print until a Buy has been accepted.
This prevents repeated same-direction labels during one continuing directional phase.
Signals are evaluated on confirmed bars. The script does not intentionally use future data or forward plotting to place signals on earlier candles.
Chart Controls
Users can independently control the visibility of the Directional Strength Channel, Price Reference Lines, Adaptive Participation Envelope and Buy/Sale labels.
Colors and line widths can also be adjusted for the upper and lower reference lines, participation-envelope boundaries and bullish/bearish channel borders.
Practical Use
The indicator is intended to organize market context rather than replace trade planning.
Price Reference Lines show confirmed structural areas. The Adaptive Participation Envelope identifies extended session movement. The Directional Strength Channel shows the accepted directional state. Buy and Sale labels identify moments where the complete response framework accepts a directional change or continuation.
The script does not calculate position size, stop-loss levels, targets, expected returns or strategy performance.
Signals may fail during abrupt news events, thin liquidity, irregular volume reporting or rapidly changing market conditions. Structural references require confirmation and therefore appear only after the underlying turning area has been established.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
S B Prasad Trading Ecosystem Email sbptradingecosystem@gmail.com, Mobile no 9903367725
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
S B Prasad Trading Ecosystem Email sbptradingecosystem@gmail.com, Mobile no 9903367725
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.