OPEN-SOURCE SCRIPT
Group 1: Monthly Permission + Value Location
This indicator is your monthly gatekeeper: it decides whether trading is allowed and shows where price sits in long-term value, before you ever think about entries.
This script answers one question, clearly and consistently:
“Should I even be trading right now, and where is price sitting inside the big monthly map?”
It is not an entry tool.
It does not tell you when to buy or sell.
It sets permission and context so you don’t make trades in bad environments.
Think of it as the front gate to your system.
What you see on the chart
1. Monthly value levels (manually entered)
You manually enter:
Monthly VAL (Value Area Low)
Monthly VAH (Value Area High)
Optional: Monthly POC, HVN1, HVN2 (display only)
These levels define the monthly value area.
The script never recalculates them or moves them.
Why manual?
Your system defines value from FRVP anchoring.
Automation would break your rules.
This keeps the indicator honest and predictable.
2. Monthly permission: Risk ON vs Risk OFF
The script evaluates the last three completed monthly candles and checks for environments where price is unreliable.
It will mark Risk OFF if any of the following are true:
A. Monthly alternation (chop)
The last three non-doji monthly candles alternate direction
Example: up → down → up
This means direction is not sticking
B. Repeated high volatility
Monthly RangeRatio ≥ your threshold
Happens in 2 of the last 3 months
Indicates unstable movement, not controlled expansion
C. Volume spike during chop
Monthly VolumeRatio spikes above your threshold
Occurs while alternation or chop is present
Indicates emotional participation without structure
If any of those are true → Risk OFF
Otherwise → Risk ON
This matches your rule:
“Avoid environments where closes don’t stick.”
3. Monthly location badge (where price is sitting)
The script classifies the current monthly close into one of five clear states:
Outside Above VAH
Outside Below VAL
Inside (Near VAH)
Inside (Near VAL)
Inside Value
“Near” is defined as a percentage of value width (default 10%), not a guess.
This gives you a fast answer to:
Am I inside value or outside?
If inside, am I near an edge or in the middle?
No interpretation required.
4. Readout dashboard (optional table)
If enabled, the dashboard shows:
Monthly Permission: Risk ON / Risk OFF
Location status (from the badge logic)
Monthly RangeRatio
Monthly VolumeRatio
Monthly ADX(14)
Anchor age (days since you anchored monthly value)
This is a status panel, not a signal board.
How you’re meant to use it
Step 1: Check permission first
If Risk OFF → you do nothing
You do not look for setups
You do not drop to weekly or daily
This enforces discipline.
Step 2: Note monthly location
Inside value → only value rotation logic is allowed later
Outside value → expansion logic may be allowed later
Near an edge → expect interaction, not immediate continuation
This sets the boundaries for all lower-timeframe decisions.
Step 3: Move on to Group 2 only if allowed
This script does not:
Choose Roadmap A or B
Trigger entries
Select targets
That happens later, on weekly and daily charts.
Group 1 only answers:
“Is the environment tradable, and where are we in the big picture?”
What this script deliberately does NOT do
No entries
No exits
No alerts
No pattern guessing
No automated value calculation
No repainting
It is intentionally boring.
That’s the point.
Why this matters (especially for newer traders)
Most traders lose money before the trade:
Trading during chop
Trading inside value as if it’s trending
Trading high volatility without structure
This script prevents that by:
Forcing you to check environment first
Giving you objective monthly context
Removing emotional decision-making
If this script says Risk OFF, you’re already doing the right thing by standing aside.
This script answers one question, clearly and consistently:
“Should I even be trading right now, and where is price sitting inside the big monthly map?”
It is not an entry tool.
It does not tell you when to buy or sell.
It sets permission and context so you don’t make trades in bad environments.
Think of it as the front gate to your system.
What you see on the chart
1. Monthly value levels (manually entered)
You manually enter:
Monthly VAL (Value Area Low)
Monthly VAH (Value Area High)
Optional: Monthly POC, HVN1, HVN2 (display only)
These levels define the monthly value area.
The script never recalculates them or moves them.
Why manual?
Your system defines value from FRVP anchoring.
Automation would break your rules.
This keeps the indicator honest and predictable.
2. Monthly permission: Risk ON vs Risk OFF
The script evaluates the last three completed monthly candles and checks for environments where price is unreliable.
It will mark Risk OFF if any of the following are true:
A. Monthly alternation (chop)
The last three non-doji monthly candles alternate direction
Example: up → down → up
This means direction is not sticking
B. Repeated high volatility
Monthly RangeRatio ≥ your threshold
Happens in 2 of the last 3 months
Indicates unstable movement, not controlled expansion
C. Volume spike during chop
Monthly VolumeRatio spikes above your threshold
Occurs while alternation or chop is present
Indicates emotional participation without structure
If any of those are true → Risk OFF
Otherwise → Risk ON
This matches your rule:
“Avoid environments where closes don’t stick.”
3. Monthly location badge (where price is sitting)
The script classifies the current monthly close into one of five clear states:
Outside Above VAH
Outside Below VAL
Inside (Near VAH)
Inside (Near VAL)
Inside Value
“Near” is defined as a percentage of value width (default 10%), not a guess.
This gives you a fast answer to:
Am I inside value or outside?
If inside, am I near an edge or in the middle?
No interpretation required.
4. Readout dashboard (optional table)
If enabled, the dashboard shows:
Monthly Permission: Risk ON / Risk OFF
Location status (from the badge logic)
Monthly RangeRatio
Monthly VolumeRatio
Monthly ADX(14)
Anchor age (days since you anchored monthly value)
This is a status panel, not a signal board.
How you’re meant to use it
Step 1: Check permission first
If Risk OFF → you do nothing
You do not look for setups
You do not drop to weekly or daily
This enforces discipline.
Step 2: Note monthly location
Inside value → only value rotation logic is allowed later
Outside value → expansion logic may be allowed later
Near an edge → expect interaction, not immediate continuation
This sets the boundaries for all lower-timeframe decisions.
Step 3: Move on to Group 2 only if allowed
This script does not:
Choose Roadmap A or B
Trigger entries
Select targets
That happens later, on weekly and daily charts.
Group 1 only answers:
“Is the environment tradable, and where are we in the big picture?”
What this script deliberately does NOT do
No entries
No exits
No alerts
No pattern guessing
No automated value calculation
No repainting
It is intentionally boring.
That’s the point.
Why this matters (especially for newer traders)
Most traders lose money before the trade:
Trading during chop
Trading inside value as if it’s trending
Trading high volatility without structure
This script prevents that by:
Forcing you to check environment first
Giving you objective monthly context
Removing emotional decision-making
If this script says Risk OFF, you’re already doing the right thing by standing aside.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.