PENTAD THEORY 30 MINUTE INITIAL BALANCE With Candle Highlight

This indicator is designed to highlight the 30-minute initial balance range, visualize key retracement levels, and provide insights into market behavior based on defined conditions. It also enhances clarity by applying specific color changes to the :06 and :36 minute candle in relative 30-minute intervals.

Key Features:

Initial Balance Box:
Automatically creates a price range (box) representing the first 6 minutes of each 30-minute interval.
The box dynamically updates during this period to capture the high and low prices.

Color-Coded Zones:
Inside the Box: Yellow background indicates price trading within the range.
Above the Box: Green background shows price breaking above the range.
Below the Box: Red background reflects price breaking below the range.

EMA Overlay:
Plots 3 customizable EMAs (default lengths: 9, 21, 55).
Each EMA can be toggled on/off and colored individually for trend analysis.

Retracement Levels:
Automatically calculates and displays key Fibonacci retracement levels (61.8% and 38.2%) based on the box size.
Adds a midline for additional price reference.

Candle Highlighting:
The :06 and :36 minute candle in relative 30-minute intervals is highlighted with a customizable blue color to draw attention to specific market activity.
The break above or below the 6 minute candle or the close of the 6 minute candle outside the box can help determine the direction of the 30-minute interval.

How to Use:

Trend Confirmation:
Use the EMAs to identify overall trend direction. For example, a bullish trend is indicated when shorter EMAs (e.g., 9 EMA) are above longer ones (e.g., 55 EMA).

Breakout and Retracement Analysis:
Watch for price breaking out of the initial balance box.
Observe retracement levels (61.8% and 38.2%) as potential areas for reversal or continuation.

Candle Highlight:
Pay special attention to the :06 or :36 minute candle, which is highlighted to signify its relevance in the relative 30-minute cycle.

Customization:
Adjust colors and EMA settings via the input menu to align with your trading style and chart aesthetics.

Ideal For:
Intraday traders looking to analyze initial balance ranges.
Traders focused on breakout, retracement, and trend-following strategies.
Those who benefit from visual clarity and real-time market insights.

Notes:
Ensure your chart is set to a 3-minute timeframe or lower for optimal performance.
This indicator is most effective when combined with other confluence factors, such as support/resistance zones and volume analysis.