Trading Hub Analytics: Dynamic Initial Range & Gap Scanner v1.0 - User Manual

Introduction

The "Dynamic Initial Range & Gap Scanner" is a comprehensive trading tool designed to help traders identify significant price movements, gaps, and key levels based on initial market ranges and volume oscillations. This guide will help you understand how to use this script effectively.

Key Features

1. Opening Range Calculation:

   • Calculates the initial high and low range within a specified session time.
   • Highlights significant levels for better visualization.

2. Profit Target Identification:

   • Provides two customizable profit target levels based on the initial range.

3. Gap Detection:

   • Identifies bullish and bearish gaps from previous sessions.
   • Marks gaps on the chart with dynamic labeling.

4. Volume Oscillator:

   • Tracks volume trends to identify potential strength or weakness in price movements.
   • Offers visual cues for volume oscillator crossovers.

5. Candlestick Pattern Detection:

   • Recognizes important reversal patterns such as Morning Star and Kicker patterns.
   • Plots labels directly on the chart to highlight these patterns.

User Settings

1. General Settings:

• length: The number of bars to look back for gap detection (1 to 3000).
• width: Line width for plotting gaps (1 to 5).
• pt1: Percentage for the first profit target (1 to 15).
• pt2: Percentage for the second profit target (1 to 30).
• res: Resolution for session time ('15' by default).
• sessNum: Session number to analyze (0 for daily, 1 for Asian, 2 for Europe, 3 for US).

2. Opening Range Settings:

• Defines the high and low for the selected session.
• Plots high and low lines on the chart with corresponding colors.

3. Profit Target Settings:

• Calculates and plots profit target lines based on the initial range.

4. Gap Detection Settings:

• Dynamically detects and marks gaps on the chart with labels.
• Gap lines are plotted with adjustable widths.

5. Volume Oscillator Settings:

• volOscLength: Length of the short-term volume SMA.
• VolumeOscillatormultiplier: Multiplier for the long-term volume SMA.

6. Candlestick Patterns Settings:

• showBullCandleReversal: Toggle to show bullish reversal patterns.
• Custom offsets for each pattern to fine-tune label placements.

Using the Script

1. Configure Inputs:

   • Set your desired input values in the settings panel.
   • Adjust session number to focus on a specific trading session.

2. Visual Analysis:

   • Observe the initial high and low range plotted on the chart.
   • Watch for lines indicating profit targets and gaps.

3. Volume Oscillator:

   • The oscillator line indicates volume trend strength.
   • Look for green lines for bullish trends and red lines for bearish trends.
   • Pay attention to crosses above/below the zero line for trend signals.

4. Gap Detection:

   • Identified gaps are marked with labels and lines.
   • Use this information to gauge potential market reactions and plan trades.

5. Candlestick Patterns:

   • Bullish patterns such as Hammer, Inverted Hammer, Morning Star, Bullish Engulfing, and Piercing Line are labeled on the chart.
   • Bearish patterns such as Dark Cloud Cover, Hanging Man, Shooting Star, Bearish Engulfing, and Evening Star are similarly marked.
   • Utilize these patterns for spotting potential market reversals.

Interpretation Tips

• Opening Range:

  • Use the high and low range to set initial support and resistance levels.

• Profit Targets:

  • Plan exits at the plotted profit target levels to maximize gains.

• Volume Oscillator:

  • High positive values indicate strong buying interest, while high negative values suggest strong selling pressure.

• Gap Detection:

  • Gaps often act as support/resistance zones and can signal continuation or reversal.

• Candlestick Patterns:

  • Recognize these patterns to enter or exit trades at potential reversal points.

Example Usage

1. Morning Star Pattern:

   • If the script detects a Morning Star pattern, it will label it on the chart.
   • Consider a long position if this pattern forms near a support level or after a downtrend.

2. Volume Oscillator Cross:

   • When the volume oscillator crosses above zero, consider it as a bullish signal.
   • Confirm this signal with price action or other indicators.

3. Profit Targets:

   • If the price reaches the first profit target, consider partial profit-taking.
   • If it continues to the second target, secure further gains or adjust your stop-loss.

By following this user manual, traders can effectively leverage the "Dynamic Initial Range & Gap Scanner" to enhance their trading strategies and make informed decisions based on comprehensive technical analysis.