OPEN-SOURCE SCRIPT
Full Day Midpoint Line with Dynamic StdDev Bands (ETH & RTH)

A Pine Script indicator designed to plot a midpoint line based on the high and low prices of a user-defined trading session (typically Extended Trading Hours, ETH) and to add dynamic standard deviation (StdDev) bands around this midpoint.
Session Midpoint Line:
Interpretation:
Dynamic StdDev Bands:
Interpretation:
Trend Identification:
Support/Resistance Trading:
Breakout/Breakdown Strategies:
Volatility Assessment:
The "Full Day Midpoint Line with Dynamic StdDev Bands" is a versatile and visually intuitive indicator well-suited for day traders focusing on session-specific price action. Its dynamic midpoint and volatility-adjusted bands provide valuable insights into support, resistance, and potential reversals or breakouts.
Session Midpoint Line:
- The midpoint is calculated as the average of the session's highest high and lowest low during the defined ETH period (e.g., 4:00 AM to 8:00 PM).
- This line represents a central tendency or "fair value" for the session, similar to a pivot point or volume-weighted average price (VWAP) anchor.
Interpretation:
- Prices above the midpoint suggest bullish sentiment, while prices below indicate bearish sentiment.
- The midpoint can act as a dynamic support/resistance level, where price may revert to or react at this level during the session.
Dynamic StdDev Bands:
- The bands are calculated by adding/subtracting a multiple of the standard deviation of the midpoint values (tracked in an array) from the midpoint.
- The standard deviation is dynamically computed based on the historical midpoint values within the session, making the bands adaptive to volatility.
Interpretation:
- The upper and lower bands represent potential overbought (upper) and oversold (lower) zones.
- Prices approaching or crossing the bands may indicate stretched conditions, potentially signaling reversals or breakouts.
Trend Identification:
- Use the midpoint as a reference for the session’s trend. Persistent price action above the midpoint suggests bullishness, while below indicates bearishness.
- Combine with other indicators (e.g., moving averages, RSI) to confirm trend direction.
Support/Resistance Trading:
- Treat the midpoint as a dynamic pivot point. Price rejections or consolidations near the midpoint can be entry points for mean-reversion trades.
- The StdDev bands can act as secondary support/resistance levels. For example, price reaching the upper band may signal a potential short entry if accompanied by reversal signals.
Breakout/Breakdown Strategies:
- A strong move beyond the upper or lower band may indicate a breakout (bullish above upper, bearish below lower). Confirm with volume or momentum indicators to avoid false breakouts.
- The dynamic nature of the bands makes them useful for identifying significant price extensions.
Volatility Assessment:
- Wider bands indicate higher volatility, suggesting larger price swings and potentially riskier trades.
- Narrow bands suggest consolidation, which may precede a breakout. Traders can prepare for volatility expansions in such scenarios.
The "Full Day Midpoint Line with Dynamic StdDev Bands" is a versatile and visually intuitive indicator well-suited for day traders focusing on session-specific price action. Its dynamic midpoint and volatility-adjusted bands provide valuable insights into support, resistance, and potential reversals or breakouts.
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这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。
开源脚本
本着TradingView的真正精神,此脚本的创建者将其开源,以便交易者可以查看和验证其功能。向作者致敬!虽然您可以免费使用它,但请记住,重新发布代码必须遵守我们的网站规则。
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。