It proposes a new indicator model based on institutional trading, this type of trading is based both on the operation of the I.P.D.A algorithm and on the “modus operandi” of market makers. Mainly in capital injections, reaction points and liquidity zones, which this script will identify on the chart.
Liquidity, this term refers to the ability of any asset to be bought or sold in a market without having a significant impact on the exchange rate. A market is liquid when its instruments are bought and sold regularly and easily, this indicator is useful for any liquid market.
The I.P.D.A. algorithm is contemplated in time sequences of 20,40,60 days. According to this model, applying the principle of fractality, it contemplates the following confluences for the identification of the structure.
This is a model for identifying ruptures in structures, both continuations and changes, this system will serve as a reference mainly for finding the POI.
CHOCH: (Change of character)
When we use this concept we refer to the process of changing structure. Important: The only way we have to confirm a change in trend is that after a CHOCH, the price makes a BOS in the direction of that CHOCH. This would be a confirmation of the change in trend.
BOS: (Structure Rupture)
It means a continuation of the structure continuing with the break of the trend, that is, if we come from an upward structure it will continue to make higher highs and on the contrary, if we come from a bearish structure, it will continue to make lower lows.
Reference of liquid points as a reference mode depending on the time
HIGHS & LOWS. Reference-based liquidity for intraday trading based on major H&L.
EQH & ELQ
These key points indicate liquid areas, and we can identify them as retail patterns. Knowing the algorithm, we know that it neutralizes the maximum possible liquidity, therefore, these areas will be our reference.
ORDERBLOCKS
An Order Block is identified by the last opposing candle before a strong move. These zones are price levels where Market Makers accumulate the most liquidity in order to reverse the price.
FVG/IMBALANCES
An imbalance/FVG is an imbalance between supply and demand, which creates a liquidity gap, leaving orders to be filled. Imbalances act as a magnet for the price, and in the future they will tend to be filled in.
KILLZONE
A KILLZONE is the space of time where the 3 most important sessions in the market begin their operations seeking to take advantage of the full movement of the next session.
ALERTS
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