Chroma Structure [Orderflowing]

2024年2月12日

Chroma Structure | Trend Identification | Pivot Analysis | Market Structure
Built using Pine Script V5.

Introduction
The Chroma Structure Indicator is an analytical tool designed for traders looking for a single script to help in analyzing the market using trend, pivots & structure.
Explainer:

This system integrates Trend Identification, Pivot Analysis, and Market Structure, offering a unique (but not perfect) framework for analysis.

Innovation and Inspiration
Drawing inspiration from a mix of market psychology, chaos theory, technical analysis, and established technical analysis concepts and proprietary code.
The Chroma Structure Indicator stands out for its innovative and colorful approach.

Price Fractals and Price-Fatigue Concepts
The pivot analysis and market structure components of the Chroma Structure Indicator are inspired from the study of price fractals and price-fatigue concepts.

Code for Trend Identification
The trend identification functionality within the Chroma Structure Indicator incorporates elements from our Ribbon Trend Code.

Originality and Usefulness
The originality of the Chroma Structure Indicator is in its 'full frame' approach to market analysis, combining technical analysis elements to offer a view of the markets behavior.

Core Features
Trend Identification: Uses a selection of the chosen moving average, allowing for customized trend analysis sensitive to market volatility. (EMA, SMA, WMA, HMA, Laguerre, LINREG & DEMA)
Pivot Analysis: Features price-fatigue concepts to identify pivotal market turning points, customizable to match individual trading strategies.
Market Structure: Offers a view of market levels and patterns, with the option to include key Fibonacci retracement levels.

Core Settings

1. Trend Identification

Foundation
At its core, the Trend Identification component can use a mix of moving averages, each selected for its properties with market momentum and smoothing of price data.
This blend allows for adaptation to volatility.

Customization
Traders have the ability to choose Trend Threshold, Signal/Filter & MA Types. (EMA, SMA, WMA, HMA, Laguerre, LINREG & DEMA)
Traders can also choose to view signals displayed on the chart with the 'Show Signals & Text' option.

(This can also be done without the Chroma Candles):


Application
Traders can customize the parameters, including type and length, to match their trading style.
This flexibility ensures that the trend signals remain relevant, whether in fast-moving Crypto or more stable Equity/FX markets.

2. Pivot Analysis

Foundation
Pivot Analysis in the concept of market/price exhaustion, where pivotal turning points are identified through a reading of price action and volume.
This analysis is tuned to detect potential shifts, offering early warnings of potential reversals.

Application
By adjusting the sensitivity settings, traders can tailor the Pivot Analysis to their risk tolerance and trading time-horizon.
Whether looking for short-term scalping moves or longer-term swing trades, this component provides help with potential entry and exit points.

3. Market Structure

Foundation
The Market Structure component is a fractal-based approach to give market levels and patterns.
This method has traditional fractal analysis to identify the structure that show areas of potential support, resistance, and changes in structure with breaks.

Customization
Traders can set the length threshold for market structure fractals.
Traders can set the configuration type, either using the candle body data or include wicks price data.
Traders have the flexibility to select key retracement levels (0.5, 0.618) and optionally include the 1.618 level for deeper market structure analysis.
The inclusion of Points of Interest (POI) lines further adds to the structural levels provided by the indicator.

Application
Traders can use the Market Structure to potentially plan their trades around structural levels, gives a potential way to exercise risk management and profit-taking.
The visual representation of these structures can help with the identification of breakout zones, consolidation areas, and potential reversal points.

Functionality
The Chroma Structure Indicator has been further fitted with functionalities like Points of Interest (POI) and pivot alerts.
These additions provide traders with signal alerts, enabling for faster reaction to signals from the indicator.

Detailed Functionality
The indicator's trend component adjusts in real-time (with no repainting) to market changes based on the signal configuration.
Pivot analysis is tuned to detect shifts in market momentum, offering traders early warnings of potential reversals.
The market structure analysis delves into the fractal nature of markets, identifying potentially significant levels.

Analysis and Interpretation
The Chroma Structure Indicator offers a layered analysis, with each component building upon the others to provide a potentially "full frame" view of the asset.
The synergy between Trend Identification, Pivot Analysis, and Market Structure enables traders to see the asset based on a confluence of factors, leading to a more uniform analysis approach.

Structure and Chroma Candle Coloring

• Structure: The indicator shows the market structure; H/H (Higher High), L/H (Lower High), L/L (Lower Low), and H/L (Higher Low), providing visual cues for potential trend directions.
  
• Structure Context / Break: Indicate structural contexts or potential breakout points.
  

Chroma Candles:

• Green Candles show a bullish trend or an uptrend.
  
• Red Candles represent a bearish trend or a downtrend.
  
• Grey Candles shows a lack of a clear trend or a potential trend shift, signaling caution or a time of consolidation.
  
• Blue Candles suggest a bullish bias or a potential uptrend, often appearing at the beginning of upward momentum.
  
• Cyan/Light Green/Light Blue Candles are indicative of a bullish reversal or potential early signs of an uptrend reversal.
  
• Yellow/Orange/Purple Candles signal a bearish reversal or potential early signs of a downtrend reversal, urging traders to prepare for possible changes in market direction.
  

Usage and Applications
This indicator works for various instruments.
It can help traders with:

• Combining trend, pivot, and structure to plan potential trade entries and exits.
  
• Offering visual help of the mechanics driving price movements.
  
• Identifying key levels for setting potential stop losses and take profits, based on structure and pivot points through the colored candles.
  

Example of POI (Point of Interest):


Example of All Fibonacci Levels ON:


Example of Chroma Signals & Text ON:


Example of All Optional Settings ON:


The Value
By integrating these analysis concepts into a single tool, the Chroma Structure Indicator offers value to traders.
Its approach provides visuals of the potential underlying market structure, trend & potential pivots.

Conclusion
The Chroma Structure Indicator is a tool that stands out from the crowd.
It's a good addition for your trading system and can potentially give a full frame view of change in the market and its structure.
Its development is the result of extensive testing and countless revisions, designed to save time on your analysis.

Disclaimer
While the Chroma Structure Indicator is a unique tool for analysis, it is important for traders to remember that no tool can guarantee success.
Past performance is not indicative of future results.
Do not solely rely on the signals from the Chroma Structure indicator.
The indicator is meant to be used as confluence to an existing strategy.

2024年4月7日

發行說明

V1.1 - Reworked Inputs Section
Introduced 50% Line (Between 0.5 & 0.618 Fib)
Updated Signal Sprites

2024年8月22日

發行說明

V1.2 - Major Update
Added Confluences; Long/Short Stop Loss Levels, Order Blocks/Breaker Blocks, and FVG/Imbalance.
General Improvements in Input Section
Updated Bar Color Logic & Added New Custom Color Inputs
Added Pivot and Signal Color Customization - Signals -> Fully Customizable. (Parameter Tuning+)

2024年8月22日

發行說明

V1.2.1 - Chart Preview Image

2024年8月27日

發行說明

V1.3 - Changed Inputs Section - Color Options - Added toggle to show "break lines"

2024年9月2日

發行說明

V1.3.1 - Added Optional Liquidity Sweeps Confluence
Signal Sprites Updated To Match The Colors Selected In Bar Color Settings

2024年9月18日

發行說明

V1.4 - Bar Coloring & Performance Improvements
Every signal in the bar coloring is now fully customizable with toggle options.

2月17日

發行說明

V1.5 - Pine Script™ v6 Update
Changed default settings to provide a better standard experience

2月18日

發行說明

V1.5.1 - Patched OB/BB drawing logic
Fixed history referencing

5月15日

發行說明

V1.5.2 - Pivot and Structure Accuracy
Updated default settings for better pivot points and structure length.

5月16日

發行說明

V1.6 - Added multi-timeframe screener for 10 timeframes.
Added screener color customization.
Note: Screener may impact performance.

5月29日

發行說明

V1.6.1 - Screener & Customization
Added further user inputs.
Introduced default candle colors when Trend Colors are toggled off.
Added a size option for the screener table