Sequential - Heatmap [R2D2]

The Professional Edge in Trend Exhaustion
In a market environment saturated with noise, the most valuable tool for a trader is clarity. Standard trend-following indicators often lag, and traditional reversal markers can be premature. The Sequential: Heatmap is a sophisticated trend-exhaustion indicator designed to identify precise market inflection points where a trend has reached its mathematical limit.

By focusing on the Exhaustion Phase (counts 7, 8, and 9) and integrating Perfection Logic, this tool filters out "weak" setups, highlighting only the high-probability price flips that professional institutional traders watch.

How It Works: The Logic of Exhaustion
The Sequential operates on the principle of price symmetry. A "Setup" occurs when a series of at least nine consecutive bars close higher (for a Sell Setup) or lower (for a Buy Setup) than the close of the bar four periods prior.

The "Perfected" Difference
A standard 9-count is often not enough for a high-conviction entry. This publication-ready script includes Perfection Logic:

• *Perfected Buy (9★)

: The low of bar 8 or 9 must be lower than the lows of both bars 6 and 7.

Perfected Sell (9★): The high of bar 8 or 9 must be higher than the highs of both bars 6 and 7.
This ensures that the final move in the sequence is a true "climax" before the reversal begins.

Step-by-Step Usage Guide
Step 1: Monitor the Heatmap
As a trend develops, the bars will remain standard. Once the sequence hits count 7, the Heatmap Gradient activates.

• Faint Color: Momentum is beginning to stretch.
  
• Deep Saturated Color: The trend is entering the danger zone for a reversal.
  

Step 2: Identify the 9★ Completion
Wait for the number 9 to appear. If a star (★) is attached, the setup is "Perfected". This is your primary signal that the current move is mathematically overextended.

Step 3: Define Your Risk with Risk Lines
Upon completion of a 9-count, the script draws a solid thin horizontal line:

• Green Line (Resistance): The ceiling of the move. Use this as a profit target for longs or a hard stop for shorts.
  
• Red Line (Support): The floor of the move. Use this as a profit target for shorts or a hard stop for longs.

Trading Like a Pro: Strategies for Success
To use this tool effectively at a professional level, follow these three core tenets:

1. Don’t Front-Run the 9: Amateur traders often try to "guess" the reversal at count 5 or 6. Professionals wait for the Perfected 9 to close. The heatmap is designed to keep you patient.
   
2. The "Risk Line" Breaker: If price closes beyond a Risk Line (e.g., closes above the green resistance line), the exhaustion has failed, and a "Setup Trend Extension" is occurring. In this case, exit your reversal trade immediately; the trend is stronger than the exhaustion.
   
3. Confluence with Higher Timeframes: A Perfected 9 on a 15-minute chart is strong; a Perfected 9 on a 15-minute chart that aligns with a 4-hour Risk Line is institutional grade.