An experimental script, designed as a visual aid, to highlight two consecutive green candles after a red candle, and two consecutive red candles after a green candle. We can assume these formations to be potential candidates as an origin of a peak and valley. The highest point of the 1st red candle and lowest point of the 1st green candle is to be considered as break levels.
How to use
Expect attacks/tests or a break of these levels in the future. A solid break through these levels may produce a potential retest in the opposite direction. The greater the number of times a zone is tested, the more likely it is to break. By using them as reference points, traders are expected to follow their own set of rules and mark higher probability supply and demand zones in the area.
Alerts are added for either a candle close or wick through the levels. For the alerts the script only trails the latest high and low break levels.
This can be used as an alternative to those who use fractals for market structure.
I'm a supply and demand trader and enjoy your scripts. If I could make a recommendation and suggest you mark the candle where two opposing candles close above versus trade above. For example, if you have a red candle (candle 1) a green candle (candle 2) which closes above the high of the red candle indicates those sellers were taken out, the second green candle (candle 3) that closes above candle 2 confirms the sellers are taken out from candle #1. I love these patterns when they close above the pivot high.
geneclash
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@Rattler, Thanks. I understand what you mean but that would have to be a different indicator. This one is generic as various traders may use it differently.
Peeps_100
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This is an exceptional script Sir. Thank you for allowing the public free use of this Masterpiece!!