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Path of Least Resistance

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Path of Least Resistance (PLR)

Concept Overview

The Path of Least Resistance indicator identifies key zones on your chart that act like "muddy" or "sticky" areas where price tends to get bogged down, creating choppy and unpredictable price action. Between these zones lie the "empty spaces" - clear paths where price can move freely with momentum and direction.

The Analogy: Muddy Fields vs Open Roads

Think of your chart like a landscape:

🟫 ZONES (Muddy/Sticky Areas)
  • Fair Value Gaps (FVGs) from higher timeframes
  • Pivot wick zones from higher timeframe pivots
  • Areas where price gets "stuck" and churns
  • Like walking through thick mud - slow, choppy, unpredictable movement
  • Price action becomes erratic and difficult to trade


🟢 EMPTY SPACES (Open Roads)
  • The clear areas between zones
  • Where price can move freely with momentum
  • Like driving on an open highway - smooth, directional movement
  • The "Path of Least Resistance" for price movement


Trading Philosophy

AVOID Trading Within Zones:
  • Price action is typically choppy and unpredictable
  • Higher probability of false signals and whipsaws
  • Like trying to drive through mud - you'll get stuck


TRADE Through the Empty Spaces:
  • Look for moves that travel between zones
  • Price tends to move with momentum and direction
  • Higher probability setups with cleaner price action
  • Like taking the highway instead of back roads


Zone Types Detected

Fair Value Gaps (FVGs)
  • Imbalances from higher timeframe candles
  • Areas where price "owes" a return visit
  • Often act as magnets, creating choppy price action


Pivot Wick Zones
  • Upper and lower wicks from higher timeframe pivots
  • Rejection areas where price previously struggled
  • Often create resistance/support that leads to choppy movement


Color Coding System

The zones dynamically change color based on current price position:

  • 🔴 RED ZONES: Price is below the zone (bearish context)
  • 🟢 GREEN ZONES: Price is above the zone (bullish context)
  • 🔘 GRAY ZONES: Price is within the zone (neutral/choppy area)


The "Mum Trades" Strategy

The best trades - what we call "Mum trades" (trades so obvious even your mum could spot them) - happen in the empty spaces between zones:

✅ High Probability Characteristics:
  • Clear directional movement between zones
  • Less noise and false signals
  • Higher momentum and follow-through
  • Cleaner technical patterns


❌ Avoid These Areas:
  • Trading within the muddy zones
  • Expecting clean moves through sticky areas
  • Fighting against the natural flow of price


Key Features

  • Auto Timeframe Detection: Automatically selects appropriate higher timeframe
  • Dynamic Zone Management: Overlapping zones are automatically cleaned up
  • Real-time Alerts: Get notified when price enters/exits zones
  • Visual Clarity: Clean zone display with extending boundaries


How to Use

  1. Identify the Zones: Let the indicator mark the muddy areas
  2. Find the Paths: Look for clear spaces between zones
  3. Plan Your Trades: Target moves that travel through empty space
  4. Avoid the Mud: Stay away from trading within the zones
  5. Follow the Flow: Trade with the path of least resistance


Remember

Price, like water, always seeks the path of least resistance. By identifying where that path is clear (empty spaces) versus where it's obstructed (zones), you can align your trading with the natural flow of the market rather than fighting against it.


The goal is simple: Trade the highways, avoid the mud.

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