Rotation Factor: Buy/Sell Pressure for Market/Volume Profile

Rotation Factor is a simple formula to figure out the buy and sell pressure of the overall day. Rotation Factor is usually combined with Market Profile or Volume Profile analysis. It is designed to be used on the 30min timeframe with a 1D interval reset. It can be used on other timeframes, but results will vary. Some Rotation Factor traders like to use it on a daily with a 1M interval reset for longer term trading.

The formula is very clean because it only focuses on price action, highs and lows. The formula is as follows:

Current Bar makes Higher High and Higher Low +2 points
Current Bar makes Lower High and Lower Low -2 Points
Current Bar makes Higher High and Lower Low 0 Points
Current Bar makes Lower High and Higher Low 0 Points
Current High and Previous High are Equal and Higher Low +1 Points
Current Bar makes Higher High but Current and Previous lows are equal +1 Points
Current Bar makes Lower High but Current and Previous lows are equal -1 Points
Current High and Previous High are Equal and Lower Low -1 Points

I hope you enjoy this indicator, if you have any questions let me know in the comments.

Informacje o Wersji:

Original code was bugged when converted to pine v.4. Massive Thank You to joebaus on Tradingview for his help converting it to pine Version 5. The indicator should work as intended now.