OPEN-SOURCE SCRIPT
Stochastic Heat Map
Title: Delta-Filtered Stochastic Heat Map
► Core Concept & Originality
This script modifies the public domain Stochastic Heat Map concept by replacing standard overbought/oversold color gradients with a Volume-Delta confirmation matrix.
The traditional Stochastic Heat Map plots a series of stochastic oscillators to visualize momentum as a wave. However, traditional oscillators are mathematically bound (0 to 100), meaning they often falsely signal "exhaustion" (turning red) during strong, sustained trends simply because the value is pegged near 100. This indicator solves that structural limitation by integrating a Delta Proxy directly into the color engine, cross-referencing momentum levels with actual buying and selling pressure.
► Underlying Logic & Calculations
The Momentum Wave: The script calculates 28 individual Stochastic oscillators. The lookback lengths increment systematically (from fast to slow) to create a visual wave of overall price momentum across multiple cyclical lengths simultaneously.
The Delta Proxy: The script calculates a basic volume delta for each bar. If the Close is greater than or equal to the Open, the volume is treated as positive (buying pressure). If the Close is strictly less than the Open, the volume is treated as negative (selling pressure).
The Color Matrix: The indicator's color output is strictly dictated by the alignment of the Stochastic value and the Delta Proxy:
Bullish Agreement: High Stochastic + Positive Delta = Bright Bullish Colors. This indicates true strength, where volume is actively supporting the high momentum.
Bearish Agreement: Low Stochastic + Negative Delta = Bright Bearish Colors. This indicates true weakness, where volume is actively supporting the downward momentum.
Divergence / Exhaustion: If the Stochastic is high but the Delta is negative (or vice versa), the script outputs muted, darker colors. This warns the trader of a potential loss of volume support at momentum extremes.
► How to Use It
Trend Confirmation: Traders can look for the entire block of 28 lines to align in a bright, single-color theme to confirm a healthy, volume-backed trend.
Spotting Reversals: Watch for color shifts at the extreme peaks and troughs of the wave. If the momentum wave is high but the colors suddenly shift to a bearish theme, it indicates that sellers are taking control of the volume at the top of the range, preempting a potential reversal before the momentum wave actually curves downward.
► Core Concept & Originality
This script modifies the public domain Stochastic Heat Map concept by replacing standard overbought/oversold color gradients with a Volume-Delta confirmation matrix.
The traditional Stochastic Heat Map plots a series of stochastic oscillators to visualize momentum as a wave. However, traditional oscillators are mathematically bound (0 to 100), meaning they often falsely signal "exhaustion" (turning red) during strong, sustained trends simply because the value is pegged near 100. This indicator solves that structural limitation by integrating a Delta Proxy directly into the color engine, cross-referencing momentum levels with actual buying and selling pressure.
► Underlying Logic & Calculations
The Momentum Wave: The script calculates 28 individual Stochastic oscillators. The lookback lengths increment systematically (from fast to slow) to create a visual wave of overall price momentum across multiple cyclical lengths simultaneously.
The Delta Proxy: The script calculates a basic volume delta for each bar. If the Close is greater than or equal to the Open, the volume is treated as positive (buying pressure). If the Close is strictly less than the Open, the volume is treated as negative (selling pressure).
The Color Matrix: The indicator's color output is strictly dictated by the alignment of the Stochastic value and the Delta Proxy:
Bullish Agreement: High Stochastic + Positive Delta = Bright Bullish Colors. This indicates true strength, where volume is actively supporting the high momentum.
Bearish Agreement: Low Stochastic + Negative Delta = Bright Bearish Colors. This indicates true weakness, where volume is actively supporting the downward momentum.
Divergence / Exhaustion: If the Stochastic is high but the Delta is negative (or vice versa), the script outputs muted, darker colors. This warns the trader of a potential loss of volume support at momentum extremes.
► How to Use It
Trend Confirmation: Traders can look for the entire block of 28 lines to align in a bright, single-color theme to confirm a healthy, volume-backed trend.
Spotting Reversals: Watch for color shifts at the extreme peaks and troughs of the wave. If the momentum wave is high but the colors suddenly shift to a bearish theme, it indicates that sellers are taking control of the volume at the top of the range, preempting a potential reversal before the momentum wave actually curves downward.
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.
*PM me after for access.*
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.
*PM me after for access.*
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.