Auction Dashboard V2

This is not an indicator that tells you “buy/sell".

It is a market-state classification engine for auction-based index futures trading ( ES / NQ / MNQ etc.).


🧠 WHAT THIS SCRIPT REALLY IS

Auction Dashboard v3 answers one question only:

> What type of market are we in right now — and how aggressive should I be?

Everything else (entries, exits) is secondary.


🧩 CORE IDEA (THE FOUNDATION)

Markets are auctions.
Each day resolves into one of a few repeatable states:

1. Initiative (trend / drive)
2. Balance (rotation)
3. Failure (reversal)

This script:

* Identifies which auction we are in
* Confirms who is in control
* Filters out low-quality periods
* Tells you what style of trade is appropriate

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1️⃣ PREVIOUS DAY VALUE (THE ANCHOR)

What it does

pinescript
pdh / pdl → VAH / VAL
```

* Uses true previous day high/low from Daily TF
* Builds value area from that range
* These levels do not change intraday

Why it matters

Institutions reference:

* Yesterday’s value
* Overnight acceptance/rejection of that value

Without this → your framework collapses.

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2️⃣ ASIA & LONDON INVENTORY

What it does

* Checks where Asia and London closed
* Classifies them as:

* ABOVE VALUE
* BELOW VALUE
* IN VALUE

Why it matters

This tells you:

* Whether overnight participants accepted or rejected prior value
* Whether RTH opens with inventory imbalance

Example:

* Asia ABOVE + London ABOVE → bullish pressure
* Asia BELOW + London BELOW → bearish pressure
* Conflict → caution

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3️⃣ RTH OPENING AUCTION TYPE

What it does

At NY open:

* Classifies open as:

* DRIVE ABOVE VALUE
* DRIVE BELOW VALUE
* OPEN IN RANGE

Why it matters

This defines the day type potential:

* Drive → initiative traders active
* Range → balance / responsive behavior

This is one of the most important parts of the script.

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4️⃣ TIME & PARTICIPATION FILTERS (PROTECTION)

The script actively disables trading when:

* First few minutes after open (noise)
* Volume is too low
* VWAP is flat (no direction)
* Late RTH (chop & stop hunts)

Why it matters

Prop firms don’t care about your “edge” if you:

* Overtrade
* Trade chop
* Trade late day randomness

This is survival logic.

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5️⃣ VWAP CONTEXT (FAIR PRICE)

What it does

* Tracks VWAP
* Measures:

* Distance from VWAP (relative to ATR)
* VWAP slope (direction)

Why it matters

VWAP tells you:

* Who is in control
* Whether price is accepting or rejecting fair value

Small distance = chop
Large distance + slope = expansion

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6️⃣ HIGHER TIMEFRAME BIAS (ALIGNMENT)

What it does

Compares HTF open vs close.

* Bullish
* Bearish
* Neutral

Why it matters

You do not fade strength against HTF flow unless failure appears.

This prevents:

* Fighting trends
* Low expectancy fades

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7️⃣ ORDER FLOW – CVD (REAL PARTICIPATION)

What it does

* Builds cumulative delta from volume
* Detects "structural divergence" using pivots

Why it matters

Price can lie.
Participation doesn’t.

Divergence = effort vs result mismatch
That’s where reversals come from.

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8️⃣ LIVE MARKET STATE ENGINE (THE HEART)

The script classifies the market into:

🟢 INITIATIVE UP

* Open above value
* Above VWAP
* HTF bullish
* CVD rising

→ **Continuation only**

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🔴 INITIATIVE DOWN

* Open below value
* Below VWAP
* HTF bearish
* CVD falling

→ **Continuation only**

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🟡 BALANCE

* No clear initiative
* Rotation around VWAP

→ Fade extremes only

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⚠️ DRIVE FAILURE

* Initiative attempt
* Loses VWAP
* CVD reverses

→ **Best reversal trades**

This is where most retail traders get destroyed — and where pros make money.

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9️⃣ CONFIDENCE ENGINE (RISK ADJUSTMENT)

What it does

Scores:

* Auction quality
* Overnight agreement
* Range expansion
* VWAP distance
* Order flow health

Outputs:

* LOW
* MEDIUM
* HIGH

Why it matters

Same setup ≠ same size.

This tells you:

* Full size
* Reduced size
* No trade

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🔟 ACTION ROW (EXECUTION GUIDANCE)

This is the only row you actually need to look at:

* FULL SIZE LONG
* FULL SIZE SHORT
* REDUCED SIZE
* AGGRESSIVE FADE
* NO TRADE

Everything above exists **only to justify this line**.

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🎯 WHAT THIS SCRIPT IS *NOT*

❌ Not a signal generator
❌ Not an auto-trading system
❌ Not a scalping tool

It will **not save you** if:

* You chase
* You revenge trade
* You ignore stops

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🧠 HOW A PRO USES THIS

1. Wait for **market state**
2. Trade **only the correct model**
3. Size according to confidence
4. Stand down when disabled

That’s it.

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FINAL TRUTH

If you can’t make money with this framework:

* The problem is execution or psychology
* Not information
* Not indicators

This is already more structure than "90% of traders ever use".