OPEN-SOURCE SCRIPT
IU Price Density(Market Noise)
This Price density Indicator will help you understand what and how market noise is calculated and treated.
Market noise = when the market is moving up and down without any clear direction
The Price Density Indicator is a technical analysis tool used to measure the concentration or "density" of price movements within a specific range. It helps traders differentiate between noisy, choppy markets and trending ones.
I’ve developed a custom Pine Script indicator, "IU Price Density," designed to help traders distinguish between noisy, indecisive markets and clear trading opportunities. It can be applied across multiple markets.
How this work:
Formula = (Σ (High𝑖 - Low𝑖)) / (Max(High) - Min(Low))
Where,
High𝑖 = the high price at the 𝑖 data point.
Low𝑖 = the low price at the 𝑖 data point.
Max(High) = highest price over the data set.
Max(Low) = Lowest price over the data set.
How to use it :
This indicator ranges from 0 to 10
Green(0-3) = Trending Market
Orange(3-6) = Market is normal
Red(6-10) = Noise market
💡 Key Features:
Dynamic Visuals: The indicator uses color-coded signals—green for trending markets and red for noisy, volatile conditions—making it easy to identify optimal trading periods at a glance.
Background Shading: With background colors highlighting significant market conditions, traders can quickly assess when to engage or avoid certain trades.
Customizable Parameters: The length and smoothing factors allow for flexibility in adapting the indicator to various assets and timeframes.
Whether you're a swing trader or an intraday strategist, this tool provides valuable insights to improve your market analysis. I’m excited to bring this indicator to the community!
Market noise = when the market is moving up and down without any clear direction
The Price Density Indicator is a technical analysis tool used to measure the concentration or "density" of price movements within a specific range. It helps traders differentiate between noisy, choppy markets and trending ones.
I’ve developed a custom Pine Script indicator, "IU Price Density," designed to help traders distinguish between noisy, indecisive markets and clear trading opportunities. It can be applied across multiple markets.
How this work:
Formula = (Σ (High𝑖 - Low𝑖)) / (Max(High) - Min(Low))
Where,
High𝑖 = the high price at the 𝑖 data point.
Low𝑖 = the low price at the 𝑖 data point.
Max(High) = highest price over the data set.
Max(Low) = Lowest price over the data set.
How to use it :
This indicator ranges from 0 to 10
Green(0-3) = Trending Market
Orange(3-6) = Market is normal
Red(6-10) = Noise market
💡 Key Features:
Dynamic Visuals: The indicator uses color-coded signals—green for trending markets and red for noisy, volatile conditions—making it easy to identify optimal trading periods at a glance.
Background Shading: With background colors highlighting significant market conditions, traders can quickly assess when to engage or avoid certain trades.
Customizable Parameters: The length and smoothing factors allow for flexibility in adapting the indicator to various assets and timeframes.
Whether you're a swing trader or an intraday strategist, this tool provides valuable insights to improve your market analysis. I’m excited to bring this indicator to the community!
סקריפט קוד פתוח
ברוח TradingView אמיתית, מחבר הסקריפט הזה פרסם אותו בקוד פתוח, כך שסוחרים יוכלו להבין ולאמת אותו. כל הכבוד למחבר! אתה יכול להשתמש בו בחינם, אבל השימוש החוזר בקוד זה בפרסום כפוף לכללי הבית. אתה יכול להכניס אותו למועדפים כדי להשתמש בו בגרף.
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כתב ויתור
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