blackOrb Price

blackOrb's Aspiration: Enhancing the Functionality of Area Charts

At its core, an area chart analysis serves as the foundational structure for blackOrb Price. Area charts can be seen as an addition to conventional price charts. Unlike price line charts, which connect closing prices with lines, an area chart fills the space between high and low prices, creating a visual representation of price ranges. This approach can offer several advantages, particularly in assessing price volatility and price dynamics.
A wider area between high and low suggests high volatility, while a narrower area indicates lower volatility. The orientation of the closing price concerning the high-low range provides insights into whether buyers or sellers are exerting influence on the market.

Combined with the following elements, this chart tool can support comprehensive data-driven trading analysis:
- Integrated moving averages for price dynamic insights
- Zigzag pivot identification for price level insights
- Stochastic lookback analysis for turning point insights
- Ghost mode for comparative insights

Technical Methodology

I. Integrated Moving Averages for Price Dynamic Insights
Incorporating various MA alternatives allows traders to gain insights into not only price dynamics but also their underlying strength, which is reflected in trading activity. This strength is visually depicted by the derived price line within blackOrb's Price Area Chart.
Among the array of MA alternatives, VWMA stands out as a suitable implementation choice for integrating volume data. It goes beyond the scope of a simple moving average, considering both price and volume in its calculation, as shown in the following formula:

(C1 x V1 + C2 x V2 + ... + CN x Vn) / (V1 + V2 + ... + Vn)

II. Zigzag Pivot Identification for Price Level Insights
Zigzag Pivot Identification can be a valuable tool for recognizing possible price movements and potential turning points. It operates by pinpointing pivotal moments where prices alter their course. Essential components of this method involve comparing time units both to the left and right within a designated price dynamic phase, effectively defining the search range for pivotal points.
For instance, in the analysis below, the search is for the highest price point that hasn't been surpassed in the last 10 time units to the left and 10 time units to the right:

ta.pivothigh(10, 10)

The lookback variables analyze price points by simultaneously examining a specified number of time units before and after a potential pivot point as the central reference. A pivot is identified when a price point remains unbreached throughout this period.
Note: This method retroactively validates structures, implying that this tool may redraw or adjust its values as price data evolves. This leads to inconsistency and a lack of predictability.

III. Stochastic Lookback Analysis for Turning Point Insights
The stochastic calculation methodology of this feature centers around the following formula:

100 * (close - lowest(low, length)) / (highest(high, length) - lowest(low, length))

This key formula employs a stochastic calculation methodology that assesses the percentage deviation of the closing price from the lowest low over a specified timeframe (length), relative to the span between the highest high and the lowest low. The outcome is normalized within a range of 0 to 100, providing insights into the relative position of the closing price within the high-low range. Traders can define the specific periods over which the stochastic calculation is performed.
Based on this stochastic analysis, the indicator integrates area chart coloring, affording users the flexibility to adjust the sensitivity of area chart coloring according to customized stochastic look-back evaluation phases. Consequently, the coloration by length evaluation can mirror a comprehension of market dynamics.
Note: However, it's important to recognize that the efficacy of evaluation coloring might be compromised during periods of lateral price movement, characterized by less prominent market trends.

IV. Ghost Mode for Comparative Insights
Unveiling convergences and divergences, the Ghost Mode overlays two price charts, which can reveal price trajectories and reactions (e.g. Apple stock's potential response to the NASDAQ 100 Technology Sector Index).
Note: This approach may not capture nuanced correlations during intricate market scenarios.

Note on Usability

This tool is an intricately designed area chart, meticulously created to serve as a fundamental canvas for the seamless integration of other more granular trading indicators.
blackOrb Price can have synergies with blackOrb Candle as both indicators combined can give a bigger picture for supporting comprehensive and multifaceted data-driven trading analysis.
This indicator isn't intended for standalone trading application. Instead, it offers an alternative approach to traditional area charts, serving as a supplementary tool for orientation within broader trading strategies. Irrespective of market conditions, it can harmonize with a wider range of trading styles and instruments/trading pairs/indices like Stocks, Gold, EURUSDSPX500, GBPUSD, BTCUSD and Oil.

Inspiration and Publishing

Taking genesis from the inspirations amongst others provided by TradingView Pine Script Wizard Kodify, blackOrb Price is a multi-encompassing script meticulously forged from scratch. It aspires to furnish a comprehensive area chart approach, borne out of personal experiences and a strong dedication in supporting the trading community. We eagerly await valuable feedback to refine and further enhance this tool.
Refined indicator Settings Input descriptions for:
- Easier usability
- Clearer understanding of the indicator's capabilities
- Informed trade management