█ Overview The "Consolidation Indicator" is a custom indicator for TradingView designed to identify consolidation periods in the price chart. Consolidation typically occurs when the price of an asset moves within a narrow range, and this indicator helps traders recognize such conditions. It can be a useful tool for traders looking to identify potential breakouts or periods of reduced volatility.
█ Indicator Settings 1 — Timeframe: This setting allows you to select the timeframe for which you want to analyze consolidation. You can choose from various timeframes available in TradingView.
2 — Price Smoothing Length: This parameter controls the smoothing of price data. You can adjust the value, with a minimum of 1, to control the level of smoothing applied to the price data.
3 — Average Range Length (range_len): This setting defines the length of the average range used in the calculation of the indicator. By default, it is set to 14.
4 — Threshold for Narrow Range (NR_threshold): The indicator will consider a price range as narrow if it falls below this threshold as a percentage of the average range. It is set to 80% by default.
5 — Consecutive Narrow Ranges for Consolidation: This parameter allows you to specify how many consecutive narrow price ranges are required to confirm a consolidation period. The default value is 3.
6 — Candle Color: You can choose the color for the consolidation candles. The default is a bright green color.
█ Indicator Output The indicator visually displays consolidation and breakout periods on the price chart using colored candles and breakout icons.
• Candles: During a consolidation period, the indicator colorizes the candles in a specified color (default is green) with a transparency that decreases as the number of consecutive narrow ranges increases. This allows you to easily spot consolidation periods on the chart.
• Breakout Icons: The indicator also places a breakout icon (💥) below the price chart to indicate potential breakout opportunities. When a breakout condition is met, the icon appears with an orange color.
█ Alerts The indicator provides two alert conditions:
1 — Consolidation Begins: This alert triggers when a consolidation period starts. It indicates that the price is moving within a narrow range compared to the average range.
2 — Breakout: This alert triggers when a potential breakout from the consolidation is detected.
█ How to Use 1 — Apply the "Consolidation Indicator" to your TradingView chart by adding it as a custom indicator.
2 — Customize the indicator settings based on your trading preferences, such as timeframe, smoothing length, and threshold for a narrow range.
3 — Monitor the chart for colored candles. The indicator will color candles to highlight consolidation periods.
4 — Look for the breakout icon (💥) below the chart, which indicates potential breakout opportunities.
5 — Set up alerts to be notified when a consolidation begins or a breakout is detected, helping you stay on top of potential trading opportunities.
Keep in mind that this indicator is a tool to assist in identifying consolidation periods, and it should be used in conjunction with other analysis methods for comprehensive trading decisions.
Versionshinweise
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Added breakout direction based on recent price action (hullma)
Good Indicator, bit problem in using it as the green candle & black candle not visible unless indicator is clicked for settings. Appreciate if recified & Thank you.
ZOROKOGI2128
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Dear cyatophilum thank you as always.
The color of the breaks and candles changes when charting the 8H and timeframe in the Consolidation indicator's MTF. If they are not the same, does that mean they are multi timeframe? Please enlighten us on this.
cyatophilum
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@ZOROKOGI2128, if you use another timeframe for the consolidation, it has to be higher than the current chart's to avoid repainting. It will then analyse the consolidation on higher timeframe candles, which can be useful to get stronger signals.
ZOROKOGI2128
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@cyatophilum, Dear cyatophilum Thank you for your reply. I understand.
Thank you very much
mentalPepper11546
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thank you
ukmpits
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@cyatophilum Sir, Is there any future Improvement? Thanks mate
inter_good
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very nice! thxxxx
raja74sekhar
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Could you please add VWAP to this indicator will help more to identify trend please consider my suggestion sir
raja74sekhar
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Ok now I got it, after unselect my chart candle colors thanks a lot
raja74sekhar
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Looks good, but breakout green candle visible only if we press on attached indicator, otherwise only breakout message visible please rectify the problem
Good Indicator, bit problem in using it as the green candle & black candle not visible unless indicator is clicked for settings. Appreciate if recified & Thank you.