Buyer vs Seller Control

Buyer vs Seller Control Analysis

Technical indicator measuring market participation through candlestick wick analysis

Overview:

This indicator analyzes the relationship between closing prices and candlestick wicks to measure buying and selling pressure. It calculates two key metrics and displays their moving averages to help identify market sentiment shifts.

Calculation Method:

The indicator measures two distinct values for each candle:

• Buyer Control Value: Distance from candle low to closing price

  (close - low)

• Seller Control Value: Distance from candle high to closing price

  (high - close)

Both values are then smoothed using a Simple Moving Average (default period: 20) to reduce noise and show clearer trends.

Visual Components:

1. Lime Line: 20-period SMA of buyer control values
   
2. Fuchsia Line: 20-period SMA of seller control values
   
3. Area Fill: Colored region between the two lines
   
4. Histogram: Difference between buyer and seller control SMAs
   
5. Zero Reference Line: Horizontal line at zero level
   
6. Information Table: Current numerical values (optional display)
   

Interpretation:

When the lime line (buyer control) is above the fuchsia line (seller control), it indicates that recent candles have been closing closer to their highs than to their lows on average.

When the fuchsia line is above the lime line, recent candles have been closing closer to their lows than to their highs on average.

Fill Color Logic:

• Lime (green) fill appears when buyer control SMA > seller control SMA
  
• Fuchsia (red) fill appears when seller control SMA > buyer control SMA
  
• Fill transparency adjusts based on the magnitude of difference between the two SMAs
  
• Stronger differences result in more opaque fills
  

Settings:

• Moving Average Period: Adjustable from 1-200 periods (default: 20)
  
• Show Info Table: Toggle to display/hide the numerical values table
  

Technical Notes:

• The indicator works on any timeframe
  
• Values are displayed in the same units as the underlying asset's price
  
• The histogram shows the mathematical difference between the two SMA lines
  
• Transparency calculation uses a 50-period lookback for dynamic scaling
  

This indicator provides a quantitative approach to analyzing candlestick patterns by focusing on where prices close relative to their intraday ranges.