OPEN-SOURCE SCRIPT
Peak Activity Range [LuxAlgo]
The Peak Activity Range indicator is a tool that automatically identifies high-volume price zones to establish support and resistance boundaries while providing a detailed analysis of volume distribution and breakout activity. By detecting significant volume peaks, the script highlights the price action of those specific candles to create dynamic ranges that act as key market interest zones.
🔶 USAGE
The indicator identifies "Peak Activity Ranges" based on volume spikes. These ranges serve as key horizontal zones where significant market interest has occurred, often representing institutional participation.
🔹 Signal Modes
The script plots small triangles (▲/▼) to indicate potential entries based on the selected mode in the settings. To prevent false signals, the indicator uses a state-based logic that requires price to return to the solid average line to reset the signal state.
🔹 Volume Distribution
Within each identified range, a dynamic Volume Profile is generated. This profile anchors to the right side of the zone and expands leftward, representing the volume transacted at specific price levels within that specific range.
🔶 DETAILS
🔹 Volume Peak Detection
The script uses a pivot-based approach to find volume highs. When a volume peak is confirmed (after the "Pivot Length" duration), the indicator retroactively creates a range based on the high and low of the candle that generated that volume. Any signals generated during the confirmation period are recalculated to ensure accuracy.
🔹 Internal Levels
Each range contains two primary internal lines to guide the trader:
🔶 SETTINGS
🔹 General
🔹 Volume Profile
🔹 Style
🔶 USAGE
The indicator identifies "Peak Activity Ranges" based on volume spikes. These ranges serve as key horizontal zones where significant market interest has occurred, often representing institutional participation.
🔹 Signal Modes
The script plots small triangles (▲/▼) to indicate potential entries based on the selected mode in the settings. To prevent false signals, the indicator uses a state-based logic that requires price to return to the solid average line to reset the signal state.
- Breakout: A bullish signal is triggered when the price closes above the range high, and a bearish signal is triggered when the price closes below the range low.
- Retest: A bullish signal is triggered when a candle opens below the range high but closes above it. A bearish signal is triggered when a candle opens above the range low but closes below it.
🔹 Volume Distribution
Within each identified range, a dynamic Volume Profile is generated. This profile anchors to the right side of the zone and expands leftward, representing the volume transacted at specific price levels within that specific range.
🔶 DETAILS
🔹 Volume Peak Detection
The script uses a pivot-based approach to find volume highs. When a volume peak is confirmed (after the "Pivot Length" duration), the indicator retroactively creates a range based on the high and low of the candle that generated that volume. Any signals generated during the confirmation period are recalculated to ensure accuracy.
🔹 Internal Levels
Each range contains two primary internal lines to guide the trader:
- Solid Line: Represents the exact midpoint (average) of the high-volume candle's range. It acts as a "fair value" level; crossing this level resets the signal state.
- Dashed Line: Represents the Point of Control (POC). This is the specific price level within the range where the highest amount of volume was transacted, calculated from the internal volume profile.
🔶 SETTINGS
🔹 General
- Pivot Length: The number of bars used to confirm a volume pivot high. Larger values identify more significant, longer-term ranges.
- Signal Mode: Switch between "Breakout" and "Retest" logic for triangle signals.
🔹 Volume Profile
- Show Volume Profile: Toggles the visibility of the internal volume distribution bars.
- Profile Rows: Determines the vertical granularity (number of price bins) of the Volume Profile.
- Max Width %: Controls the maximum horizontal extension of the profile as a percentage of the range duration.
🔹 Style
- Bullish/Bearish Fill: Colors for the range background and volume profile bars.
- Bullish/Bearish Lines: Colors for the solid (average) and dashed (POC) lines.
- Signal Colors: Custom colors for the upward and downward breakout/retest triangles.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Build your own edge with AI: luxalgo.com
All content provided by LuxAlgo is for informational & educational purposes only. Past performance does not guarantee future results.
All content provided by LuxAlgo is for informational & educational purposes only. Past performance does not guarantee future results.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Build your own edge with AI: luxalgo.com
All content provided by LuxAlgo is for informational & educational purposes only. Past performance does not guarantee future results.
All content provided by LuxAlgo is for informational & educational purposes only. Past performance does not guarantee future results.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.