Trapped Traders [ScorsoneEnterprises]

8月22日

This indicator identifies and visualizes trapped traders - market participants caught on the wrong side of price movements with significant volume imbalances. By analyzing volume delta at specific price levels, it reveals where traders are likely experiencing unrealized losses and may be forced to exit their positions.

The point of this tool is to identify where the liquidity in a trend may be.

var lowerTimeframe = switch
    useCustomTimeframeInput => lowerTimeframeInput
    timeframe.isseconds     => "1S"
    timeframe.isintraday    => "1"
    timeframe.isdaily       => "5"
    => "60"

[openVolume, maxVolume, minVolume, lastVolume] = ta.requestVolumeDelta(lowerTimeframe)

price_quantity = map.new<float, float>()
is_red_candle = close < open
is_green_candle = close > open

for i=0 to lkb-1 by 1
    current_vol = price_quantity.get(close)
    new_vol = na(current_vol) ? lastVolume : current_vol + lastVolume
    price_quantity.put(close, new_vol)
    
    if is_green_candle and new_vol < 0
        price_quantity.put(close, new_vol)

    else if is_red_candle and new_vol > 0
        price_quantity.put(close, new_vol)

We see in this snippet, the lastVolume variable is the most recent volume delta we can receive from the lower timeframe, we keep updating the price level we're keeping track of with that lastVolume from the lower timeframe.

This is the bulk of the concept as this level and size gives us the idea of how many traders were on the wrong side of the trend, and acting as liquidity for the profitable entries. The more, the stronger.

There are 3 ways to visualize this. A basic label, that will display the size and if positive or negative next to the bar, a gradient line that goes 10 bars to the future to be used as a support or resistance line that includes the quantity, and a bubble chart with the quantity. The larger the quantity, the bigger the bubble.



We see in this example on CL1! that there are lines plotted throughout this price action that price interacts with in meaningful way. There are consistently many levels for us.



Here on ES1! we see the labels on the chart, and the size set to large. It is the same concept just another way to view it.



This chart of RTY1! shows the bubble chart visualization. It is a way to view it that is pretty non invasive on the chart.

Every timeframe is supported including daily, weekly, and monthly.

The included settings are the display style, like mentioned above. If the user would like to see the volume numbers on the chart. The text size along with the transparency percentage. Following that is the settings for which lower timeframe to calculate the volume delta on. Finally, if you would like to see your inputs in the status line.

No indicator is 100% accurate, use "Trapped Traders" along with your own discretion.

8月24日

版本注释

Changed label location and size.

Added it as a setting.