PROTECTED SOURCE SCRIPT
CRT overlay 2
Zaktualizowano
Overview
The "CRT overlay 2" is designed to plot key levels and detect market patterns based on the 4-hour candle around a specific start time (5AM). It incorporates elements like the high, low, and 50% level of a key 4-hour candle, and also tracks Fair Value Gaps (FVGs) to help identify potential price imbalances in the market. The indicator is primarily based on Candle Range Theory (CRT), which focuses on the significance of price movements within key candles and their relation to future market activity.
How the Script is Made
Key Components:
4-hour CRT Candle: The script identifies a specific 4-hour candle using a customizable start time (by default, it’s set to the 5 AM candle).
High, Low, and Midline Levels: For this selected 4-hour candle, the script calculates and draws the high, low, and 50% midpoint. These levels are used as reference points for further analysis.
Fair Value Gaps (FVGs): The script detects price gaps between candles (where the third candle does not fully overlap the first), which can act as areas of potential support or resistance. The user can toggle the plotting of midlines for these gaps.
Time Restrictions: The script limits its key functionalities (e.g., detecting highs, lows, and gaps) to a specific time window, between the target hour and the end hour (e.g., 5 AM to 10 AM).
Extensions and Visibility:
The plotted high, low, and midlines of the 4-hour candle extend a certain number of bars forward for visibility.
These lines stop extending after the end of the defined session (e.g., after 10 AM).
Wick Length Calculation:
The script calculates the length of a candle's wick as a percentage of the total range of the candle, which may provide insights into market rejections or momentum shifts.
Fair Value Gap (FVG) Detection:
The script detects both bullish and bearish FVGs based on a 3-candle pattern, plotting the gaps with customizable colors. The FVGs are then drawn on the chart for visual guidance.
Midlines of these gaps can also be drawn, and outdated or filled FVGs are removed after a set number of bars or if they are filled by price action.
How to Use It
Indicator Setup:
After adding the indicator to your chart, you will be able to customize settings for your desired timezone and the target 4-hour candle. By default, the script is set to the 5 AM candle, but this can be changed to any hour depending on your analysis needs.
The "CRT Candle Start" and "CRT Candle End" allow you to define the time range when the high, low, and midlines will be plotted and tracked.
Key Levels:
The script draws white lines for the high and low of the selected 4-hour candle, along with a green dashed line for the 50% mid-level. These lines serve as significant support and resistance levels.
During the defined session (e.g., 5 AM to 10 AM), these lines will actively extend and be visible on your chart.
After the session ends, these lines stop extending but remain on the chart for reference.
Fair Value Gaps (FVGs):
The script automatically identifies gaps between candles and plots them on the chart with colored boxes (green for bullish gaps, orange for bearish gaps). These areas can serve as potential reversal or continuation zones.
You can choose whether or not to plot a dashed line at the 50% mark of these FVGs. This midline can be important for targeting partial fills or retracements.
Sweep Alerts and Higher Highs/Lower Lows:
The script monitors price action to detect when the market forms the very first higher high or lower low within the high and low range of the 4-hour candle. When a higher high or lower low is detected, the script plots a yellow label on the chart to mark the event and triggers an alert.
These events can indicate potential sweep patterns or liquidity grabs.
FVG Removal:
The script includes a feature to automatically remove FVGs when they are filled by price action or after they become too old (based on a user-defined number of bars). This helps keep the chart clean for further analysis without clutter from outdated information.
Practical Application
Intraday Traders: The script helps traders focus on specific time windows (like 5 AM to 10 AM) and provides key reference levels (high, low, midline) that can guide trading decisions. Breaks and retests of these levels are common trading strategies.
Market Reversal and Continuation: The detection of Fair Value Gaps and higher highs/lower lows within the defined range can be useful for identifying potential reversal points or continuation signals in the market.
Candle Range Theory (CRT): The script is rooted in CRT, which emphasizes the importance of high and low levels of key candles for future price action. This theory is often used by traders looking to identify support/resistance zones or liquidity grabs in the market.
In summary, CRT overlay 2 is designed for precision trading around key timeframes, focusing on levels from the 4-hour candle and incorporating Fair Value Gaps for potential trade entries or exits. Its customizable inputs make it flexible for various strategies, and its focus on time-based levels is aligned with concepts in intraday trading and market structure analysis.
The "CRT overlay 2" is designed to plot key levels and detect market patterns based on the 4-hour candle around a specific start time (5AM). It incorporates elements like the high, low, and 50% level of a key 4-hour candle, and also tracks Fair Value Gaps (FVGs) to help identify potential price imbalances in the market. The indicator is primarily based on Candle Range Theory (CRT), which focuses on the significance of price movements within key candles and their relation to future market activity.
How the Script is Made
Key Components:
4-hour CRT Candle: The script identifies a specific 4-hour candle using a customizable start time (by default, it’s set to the 5 AM candle).
High, Low, and Midline Levels: For this selected 4-hour candle, the script calculates and draws the high, low, and 50% midpoint. These levels are used as reference points for further analysis.
Fair Value Gaps (FVGs): The script detects price gaps between candles (where the third candle does not fully overlap the first), which can act as areas of potential support or resistance. The user can toggle the plotting of midlines for these gaps.
Time Restrictions: The script limits its key functionalities (e.g., detecting highs, lows, and gaps) to a specific time window, between the target hour and the end hour (e.g., 5 AM to 10 AM).
Extensions and Visibility:
The plotted high, low, and midlines of the 4-hour candle extend a certain number of bars forward for visibility.
These lines stop extending after the end of the defined session (e.g., after 10 AM).
Wick Length Calculation:
The script calculates the length of a candle's wick as a percentage of the total range of the candle, which may provide insights into market rejections or momentum shifts.
Fair Value Gap (FVG) Detection:
The script detects both bullish and bearish FVGs based on a 3-candle pattern, plotting the gaps with customizable colors. The FVGs are then drawn on the chart for visual guidance.
Midlines of these gaps can also be drawn, and outdated or filled FVGs are removed after a set number of bars or if they are filled by price action.
How to Use It
Indicator Setup:
After adding the indicator to your chart, you will be able to customize settings for your desired timezone and the target 4-hour candle. By default, the script is set to the 5 AM candle, but this can be changed to any hour depending on your analysis needs.
The "CRT Candle Start" and "CRT Candle End" allow you to define the time range when the high, low, and midlines will be plotted and tracked.
Key Levels:
The script draws white lines for the high and low of the selected 4-hour candle, along with a green dashed line for the 50% mid-level. These lines serve as significant support and resistance levels.
During the defined session (e.g., 5 AM to 10 AM), these lines will actively extend and be visible on your chart.
After the session ends, these lines stop extending but remain on the chart for reference.
Fair Value Gaps (FVGs):
The script automatically identifies gaps between candles and plots them on the chart with colored boxes (green for bullish gaps, orange for bearish gaps). These areas can serve as potential reversal or continuation zones.
You can choose whether or not to plot a dashed line at the 50% mark of these FVGs. This midline can be important for targeting partial fills or retracements.
Sweep Alerts and Higher Highs/Lower Lows:
The script monitors price action to detect when the market forms the very first higher high or lower low within the high and low range of the 4-hour candle. When a higher high or lower low is detected, the script plots a yellow label on the chart to mark the event and triggers an alert.
These events can indicate potential sweep patterns or liquidity grabs.
FVG Removal:
The script includes a feature to automatically remove FVGs when they are filled by price action or after they become too old (based on a user-defined number of bars). This helps keep the chart clean for further analysis without clutter from outdated information.
Practical Application
Intraday Traders: The script helps traders focus on specific time windows (like 5 AM to 10 AM) and provides key reference levels (high, low, midline) that can guide trading decisions. Breaks and retests of these levels are common trading strategies.
Market Reversal and Continuation: The detection of Fair Value Gaps and higher highs/lower lows within the defined range can be useful for identifying potential reversal points or continuation signals in the market.
Candle Range Theory (CRT): The script is rooted in CRT, which emphasizes the importance of high and low levels of key candles for future price action. This theory is often used by traders looking to identify support/resistance zones or liquidity grabs in the market.
In summary, CRT overlay 2 is designed for precision trading around key timeframes, focusing on levels from the 4-hour candle and incorporating Fair Value Gaps for potential trade entries or exits. Its customizable inputs make it flexible for various strategies, and its focus on time-based levels is aligned with concepts in intraday trading and market structure analysis.
Informacje o Wersji
FVG TIMED BASED UPDATE.LABELING UPDATE.
CODE REFRESH.
Informacje o Wersji
-code update-labeling update 1 per session
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