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Price Action - Delivery Algorithm (Zeiierman)

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Overview
Price delivery algorithms in trading refer to complex computational algorithms used to determine the optimal price for executing trades. These algorithms are particularly relevant in electronic and algorithmic trading environments where large volumes of trades are executed automatically.

These algorithms are designed to analyze market data, including prices, volumes, and historical trends, to determine the most favorable price at which to execute a trade. They can take into account various factors such as market liquidity, price impact, and timing to optimize trade execution.


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How It Works
Optimal price zones can be calculated in many different ways; we have decided to use a cycle method that determines the current dominant trend. The indicator functions by isolating a trend within a specific frequency range from various data.

Filter Logic and Loop:
The indicator computes a weighted average of historical prices over a range of past data points. It employs a loop to iterate over these past data points, applying a unique weight to each, depending on its position relative to the trend period.

Weight Calculation:
Weights are determined using triangle wave functions. The triangle wave function ensures that the weighting oscillates in synchronization with the desired trend period.

Summation:
The indicator aggregates the weighted prices from past periods to generate a single value for each point in time. This value signifies the strength and direction of the trend at the specified frequency. The results are used to determine the specific price zones.

How to Use
The price zones help traders identify the best times to enter and exit the market, similar to how support and resistance zones are used. The strategy is based on using price delivery algorithm zones to enter the market in areas commonly used by institutions for placing larger orders. The main advantage of this strategy is having the support of these heavier players.

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Settings
Delivery Algorithm: This setting allows you to select the calculation method for the Delivery Algorithm. There are several options including "Price", "Swing High", "Swing Low", "Swing Mean", "Momentum", "Expansion", and "Volume". Each option represents a different way of analyzing market data, focusing on different aspects of price action or market dynamics. The choice here will influence how the algorithm interprets and responds to market data.

The corresponding length value is about the responsiveness of the Delivery Algorithm. Adjusting this value affects the algorithm's sensitivity to changes in market conditions. A higher value makes the algorithm more responsive, meaning it will react more strongly to recent market changes. This could be useful in volatile markets. On the other hand, a lower value makes the algorithm less responsive, resulting in more gradual adjustments. This might be preferable in more stable market conditions to avoid reacting to what might be considered 'market noise.'

Delivery Sensitivity: This setting adjusts the sensitivity of the algorithm's calculations to price movements. A higher value tends to smooth out the algorithm's output by considering a wider range of price data, which can be useful for identifying longer-term trends. A lower value makes the algorithm more sensitive to recent price movements, which can be helpful for short-term trading or scalping strategies. The option to enable Scalping Mode is particularly relevant for traders focusing on short-term, quick trades.


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Disclaimer

The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.

All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.

My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Informacje o Wersji
Major Improvements!

  • High and Low Signals are added.
  • Positive price action can now be enabled



Best
Informacje o Wersji
Improvements!

  • Performance Improvements
  • Improved Computing Performances
  • ToolTip Added
  • Alerts Added

Informacje o Wersji
Improvements!

  • Trend Tracker Line Added. (Scalping & Trend Mode) + Alerts!

Informacje o Wersji
Delivery Algorithm added
  • Price
  • Swing High
  • Swing Low
  • Swing Mean
  • Momentum
  • Volume
Informacje o Wersji
Minor Fix
Informacje o Wersji
  • Sessions and Divider added
Informacje o Wersji
  • Minor Change
Informacje o Wersji
  • Performance Improvements
Informacje o Wersji
  • Chart update

Informacje o Wersji
  • Enhanced zone detection
Informacje o Wersji
Performance Improvements!
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