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Bounce Zone
📘 Bounce Zone – Indicator Description
The "Bounce Zone" indicator is a custom tool designed to highlight potential reversal zones on the chart based on volume exhaustion and price structure. It identifies sequences of candles with low volume activity and marks key price levels that could act as "bounce zones", where price is likely to react.
🔍 How It Works
Volume Analysis:
The indicator calculates a Simple Moving Average (SMA) of volume (default: 20 periods).
It looks for at least 6 consecutive candles (configurable) where the volume is below this volume SMA.
Color Consistency:
The candles must all be of the same color:
Green candles (bullish) for potential downward bounce zones.
Red candles (bearish) for potential upward bounce zones.
Zone Detection:
When a valid sequence is found:
For green candles: it draws a horizontal line at the low of the last red candle before the sequence.
For red candles: it draws a horizontal line at the high of the last green candle before the sequence.
Bounce Tracking:
Each horizontal line remains on the chart until it is touched twice by price (high or low depending on direction).
After two touches, the line is automatically removed, indicating the zone has fulfilled its purpose.
📈 Use Cases
Identify areas of price exhaustion after strong directional pushes.
Spot liquidity zones where institutions might step in.
Combine with candlestick confirmation for reversal trades.
Useful in both trending and range-bound markets for entry or exit signals.
⚙️ Parameters
min_consecutive: Minimum number of consecutive low-volume candles of the same color (default: 6).
vol_ma_len: Length of the volume moving average (default: 20).
🧠 Notes
The indicator does not repaint and is based purely on historical candle and volume structure.
Designed for manual strategy confirmation or support for algorithmic setups.
The "Bounce Zone" indicator is a custom tool designed to highlight potential reversal zones on the chart based on volume exhaustion and price structure. It identifies sequences of candles with low volume activity and marks key price levels that could act as "bounce zones", where price is likely to react.
🔍 How It Works
Volume Analysis:
The indicator calculates a Simple Moving Average (SMA) of volume (default: 20 periods).
It looks for at least 6 consecutive candles (configurable) where the volume is below this volume SMA.
Color Consistency:
The candles must all be of the same color:
Green candles (bullish) for potential downward bounce zones.
Red candles (bearish) for potential upward bounce zones.
Zone Detection:
When a valid sequence is found:
For green candles: it draws a horizontal line at the low of the last red candle before the sequence.
For red candles: it draws a horizontal line at the high of the last green candle before the sequence.
Bounce Tracking:
Each horizontal line remains on the chart until it is touched twice by price (high or low depending on direction).
After two touches, the line is automatically removed, indicating the zone has fulfilled its purpose.
📈 Use Cases
Identify areas of price exhaustion after strong directional pushes.
Spot liquidity zones where institutions might step in.
Combine with candlestick confirmation for reversal trades.
Useful in both trending and range-bound markets for entry or exit signals.
⚙️ Parameters
min_consecutive: Minimum number of consecutive low-volume candles of the same color (default: 6).
vol_ma_len: Length of the volume moving average (default: 20).
🧠 Notes
The indicator does not repaint and is based purely on historical candle and volume structure.
Designed for manual strategy confirmation or support for algorithmic setups.
开源脚本
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免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。
开源脚本
秉承TradingView的精神，该脚本的作者将其开源，以便交易者可以查看和验证其功能。向作者致敬！您可以免费使用该脚本，但请记住，重新发布代码须遵守我们的网站规则。
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。