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ATK/DEF Price Action Composite
PAC — Price Action Composite Indicator
Description
PAC (Price Action Composite) is a multi-factor price action analysis tool designed to visualize and organize market behavior through a combination of candle structure, trend conditions, and volume-based money flow analysis.
Unlike traditional single-factor indicators, PAC combines several independent market observations into one composite framework to help analyze how price is behaving under different market conditions.
The indicator focuses on the relationship between candle anatomy, directional strength, trend alignment, and participation intensity.
Core Concepts
1. Candle Structure Analysis
PAC analyzes the internal structure of each candle by measuring:
Body Strength
Body Strength represents the relationship between candle body size and the total candle range.
It helps visualize directional candle pressure:
Positive values indicate stronger upward candle structure.
Negative values indicate stronger downward candle structure.
Values near zero represent weaker directional commitment.
Upper Wick Ratio
Measures the proportion of the upper wick compared with the complete candle range.
This helps identify areas where price attempted higher levels but experienced rejection.
Higher values indicate stronger upper rejection characteristics.
Lower Wick Ratio
Measures the proportion of the lower wick compared with the complete candle range.
This highlights areas where lower prices were tested and rejected.
Higher values indicate stronger lower rejection characteristics.
2. Trend Environment
PAC uses two moving averages to classify the current market environment:
20-period moving average
60-period moving average
The trend module evaluates price position and moving average alignment to categorize market conditions:
Uptrend
Price is positioned above both moving averages with bullish alignment.
Downtrend
Price is positioned below both moving averages with bearish alignment.
Bounce
Price is recovering above the short-term average while the longer-term structure remains weaker.
Pullback
Price is below the short-term average while the longer-term structure remains stronger.
Neutral
Market structure does not show clear directional alignment.
3. Money Flow Analysis
PAC incorporates Chaikin Money Flow (CMF) to measure the relationship between:
Closing location within the candle range
volume
Accumulation and distribution pressure
The money flow component helps visualize participation characteristics:
Strong Inflow
Higher positive money flow pressure.
Mild Inflow
Moderate positive participation.
Neutral
Balanced market participation.
Mild Outflow
Moderate negative pressure.
Strong Outflow
Higher negative money flow pressure.
4. Candle Classification
Each candle is categorized according to:
Body-to-range proportion
Directional strength
Candle expansion characteristics
The classification includes:
Doji
Small candle body indicating limited directional commitment.
Strong Bull
Large positive candle body showing stronger upward candle structure.
Strong Bear
Large negative candle body showing stronger downward candle structure.
Mild Bull
Positive candle structure with moderate strength.
Mild Bear
Negative candle structure with moderate weakness.
Information Panel
PAC includes a compact monitoring panel displaying:
Current trend environment
Upper wick ratio
Lower wick ratio
Candle body strength
Money flow condition
Candle classification
Overall market monitoring status
The panel is designed to provide a quick overview of current price behavior without relying on a single measurement.
Calculation Approach
PAC does not attempt to forecast future price movement.
Instead, it combines multiple market observations into a structured visualization system:
Candle Behavior + Trend Structure + Volume Participation = Composite Market Condition
The purpose is to help users interpret current market characteristics and compare different price action environments.
Intended Use
PAC is designed for traders who study:
Candlestick behavior
Market structure
Trend conditions
Volume participation
Price reaction characteristics
It can be used as a supporting analytical tool alongside a own methodology process.
Notes
PAC is an analytical visualization tool.
It does not generate guaranteed outcomes and does not provide or autom decisions.
Description
PAC (Price Action Composite) is a multi-factor price action analysis tool designed to visualize and organize market behavior through a combination of candle structure, trend conditions, and volume-based money flow analysis.
Unlike traditional single-factor indicators, PAC combines several independent market observations into one composite framework to help analyze how price is behaving under different market conditions.
The indicator focuses on the relationship between candle anatomy, directional strength, trend alignment, and participation intensity.
Core Concepts
1. Candle Structure Analysis
PAC analyzes the internal structure of each candle by measuring:
Body Strength
Body Strength represents the relationship between candle body size and the total candle range.
It helps visualize directional candle pressure:
Positive values indicate stronger upward candle structure.
Negative values indicate stronger downward candle structure.
Values near zero represent weaker directional commitment.
Upper Wick Ratio
Measures the proportion of the upper wick compared with the complete candle range.
This helps identify areas where price attempted higher levels but experienced rejection.
Higher values indicate stronger upper rejection characteristics.
Lower Wick Ratio
Measures the proportion of the lower wick compared with the complete candle range.
This highlights areas where lower prices were tested and rejected.
Higher values indicate stronger lower rejection characteristics.
2. Trend Environment
PAC uses two moving averages to classify the current market environment:
20-period moving average
60-period moving average
The trend module evaluates price position and moving average alignment to categorize market conditions:
Uptrend
Price is positioned above both moving averages with bullish alignment.
Downtrend
Price is positioned below both moving averages with bearish alignment.
Bounce
Price is recovering above the short-term average while the longer-term structure remains weaker.
Pullback
Price is below the short-term average while the longer-term structure remains stronger.
Neutral
Market structure does not show clear directional alignment.
3. Money Flow Analysis
PAC incorporates Chaikin Money Flow (CMF) to measure the relationship between:
Closing location within the candle range
volume
Accumulation and distribution pressure
The money flow component helps visualize participation characteristics:
Strong Inflow
Higher positive money flow pressure.
Mild Inflow
Moderate positive participation.
Neutral
Balanced market participation.
Mild Outflow
Moderate negative pressure.
Strong Outflow
Higher negative money flow pressure.
4. Candle Classification
Each candle is categorized according to:
Body-to-range proportion
Directional strength
Candle expansion characteristics
The classification includes:
Doji
Small candle body indicating limited directional commitment.
Strong Bull
Large positive candle body showing stronger upward candle structure.
Strong Bear
Large negative candle body showing stronger downward candle structure.
Mild Bull
Positive candle structure with moderate strength.
Mild Bear
Negative candle structure with moderate weakness.
Information Panel
PAC includes a compact monitoring panel displaying:
Current trend environment
Upper wick ratio
Lower wick ratio
Candle body strength
Money flow condition
Candle classification
Overall market monitoring status
The panel is designed to provide a quick overview of current price behavior without relying on a single measurement.
Calculation Approach
PAC does not attempt to forecast future price movement.
Instead, it combines multiple market observations into a structured visualization system:
Candle Behavior + Trend Structure + Volume Participation = Composite Market Condition
The purpose is to help users interpret current market characteristics and compare different price action environments.
Intended Use
PAC is designed for traders who study:
Candlestick behavior
Market structure
Trend conditions
Volume participation
Price reaction characteristics
It can be used as a supporting analytical tool alongside a own methodology process.
Notes
PAC is an analytical visualization tool.
It does not generate guaranteed outcomes and does not provide or autom decisions.
Скрипт с открытым кодом
В истинном духе TradingView, создатель этого скрипта сделал его открытым исходным кодом, чтобы трейдеры могли проверить и убедиться в его функциональности. Браво автору! Вы можете использовать его бесплатно, но помните, что перепубликация кода подчиняется нашим Правилам поведения.
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.
Скрипт с открытым кодом
В истинном духе TradingView, создатель этого скрипта сделал его открытым исходным кодом, чтобы трейдеры могли проверить и убедиться в его функциональности. Браво автору! Вы можете использовать его бесплатно, но помните, что перепубликация кода подчиняется нашим Правилам поведения.
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.