This is the frequency distribution indicator. It does as the name suggests, It breaks down the frequency distribution of any stock over a user defined lookback period and shows where the accumulations rest by percantage.
This is a function that I used to have to export to Excel or SPSS to do, but now its possible in Pinescript!
Essentially, it breaks down the areas a stock has closed in over a defined period and gives you the accumulation for each area.
What it is used for:
It is used to see where the higher areas of price accumulation rest. This helps us to identify potentially likely retracement areas and pullback areas.
It colour coordinates based on distribution and lists the composition of each zone in a label in each box. The zones are divided by standard deviation, which means that the top and bottom of each range act as substantial areas of support/resistance (as it falls outside the normal variance of a stock).
Customizability:
The indicator is pretty straight forward, you select your desired lookback period and it will adjust accordingly.
Additionally, you can adjust for close, high, low, etc. if you want to see the accumulation and distribution of hights vs, lows vs closes.
You can toggle off the text labels if you don't want them. The green boxes represent the areas of highest accumulation, the red box the areas of lower accumulation.
You can use it on any timeframe you wish. Above is an example of the daily, but you can also use it on the smaller TFs as well:
TSLA on the 5 minute:
And that is the indicator!
Let me know if you have questions or suggestions. Safe trades everyone!
@suvomoy17, Whichever interests you, really. Traditionally I have used it on the daily out of practicality (I used secondary software), but now I have the option, I use it on all TFs.
suvomoy17
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@Steversteves, Thank U .. 💐💐 one request pls give us a unique Relative Strength Index which find Market Trend Direction easily .. I used Your time series model and directional sentiment and EMA 9/21 with Target price [SS] .. your Indicator different from Others ..
Steversteves
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@suvomoy17, Haha thanks, my indicators are different because I am not a technical analyst, I use math as opposed to TA, so I don't actually use RSI and am not the best to redesign it. I think Luxalgo did an attempt at something like this, you can check out their RSI indicators, they tailor more to TAs than I do. The only thing I have that is an attempt at redesigning momentum technicals is my momentum probability indicator which combines RSI, Stochastics and MFI to determine the overall trend and likelihood of continuation and reversal.
suvomoy17
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@Steversteves, I found This .. great working when I on smoothing .. one request pls add option for change Table position and change % text color ..