Aibuyzone Spot & Swing Zones

Aibuyzone Spot & Swing Zones is a technical tool that helps identify potential buy zones during established bullish trends.
It is designed for spot and swing traders who prefer to buy pullbacks within broader uptrends.
This indicator does not place trades or make predictions — it only highlights contextual market areas for study.

How It Works

Trend Alignment Filter
A higher-timeframe EMA and two local EMAs determine trend direction.
Only when both the local and higher-timeframe trends agree as bullish will a potential buy zone be considered valid.

Dynamic Buy Zone (Value Area)
The indicator measures a rolling price range over a user-selected number of bars (e.g., last 50).
The lower fraction of this range (configurable percentage) becomes the buy zone band.
When price revisits this lower section during a bullish trend, it is interpreted as a potential value or discount area.

Liquidity Sweep Filter (Optional)
Detects bars that make a new low relative to recent candles and then close back up with a strong lower wick.
This condition can indicate a possible liquidity grab or stop-hunt event that precedes reversals.

RSI Pullback Filter (Optional)
Confirms that price momentum has cooled during the pullback phase.
Signals occur when RSI falls within a defined “pullback” zone (default 30–55), helping avoid chasing overextended moves.

Confluence Scoring
Each of the three criteria — buy zone presence, liquidity sweep, RSI pullback — adds one point to a confluence score.
A signal only appears when the score meets or exceeds the chosen threshold (for example, 2 of 3).

Visual Elements

Fast and Slow EMAs for short-term trend visualization.

A shaded area marking the dynamic buy zone.

Optional background tint when the overall trend is bullish.

Optional labels below bars when confluence criteria are met.

Alert condition available for custom user alerts.

Suggested Use

Select a higher timeframe that fits your trading horizon (e.g., 4h for swing, 1d for position trading).

Use the shaded band as a visual guide for where price may offer “discounts” within an uptrend.

Combine with support/resistance, volume, or other confluence methods for confirmation.

Adjust the confluence requirement for stricter or looser signals.

Disclaimer

This script is provided for educational and analytical purposes only.
It does not constitute financial advice or a recommendation to buy or sell any asset.
All trading involves risk — always perform your own analysis and manage risk according to your own judgment.