Live Market - Performance MonitorLive Market - Performance Monitor – Study Material & Usage Guide
Overview:
The Live Market - Performance Monitor is a multi-layered TradingView indicator that assists traders in identifying high-probability setups by combining key technical elements: order block detection, dynamic trendline analysis, volume and volatility filtering, signal validation, and ATR-based target projection. This guide provides the essential logic, formulas, and practical steps to help users apply the system effectively.
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Key Functional Features and Formulas
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1. Order Block Detection
The indicator identifies price zones where strong institutional buying or selling has likely occurred, based on candle sequences.
• User Input: Number of consecutive candles to define relevance (e.g., 3–7 bars)
• Validation Formula:
• Price Move % = |Close(n) - Close(1)| / Close(n) × 100
• Bullish Order Block: A bearish candle followed by consecutive bullish candles
• Bearish Order Block: A bullish candle followed by consecutive bearish candles
Only valid zones that meet a minimum price move threshold are retained and plotted.
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2. Trendline Logic
Trendlines are dynamically plotted using price pivots.
• Pivot Calculation: Highs and lows over a lookback period (e.g., 10 bars)
• Trendline Slope:
• Slope = (Pivot_new - Pivot_old) / (Time_new - Time_old)
• Trendline Projection:
• Projected Price = StartPrice + Slope × (CurrentTime - StartTime)
These lines act as dynamic support/resistance zones and are used to confirm breakout trades.
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3. Volume and ATR Filters
Signals are filtered using real-time volume and volatility analysis to eliminate low-quality setups.
• Average Volume:
• AvgVol = SMA(Volume, 20)
• Volume Spike Condition:
• Volume > AvgVol × VolumeThreshold
• ATR (Volatility Filter) – Calculated using 14-bar period:
• (High - Low) > ATR × ATRMultiplier
When both filters are passed, the market is considered active and valid for trade.
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4. Signal Generation Logic
• Bullish Signal: Triggered when:
o Price breaks above a resistance zone or bullish order block
o Volume and ATR filters confirm activity
o Trend alignment: EMA9 > EMA21 > EMA50
• Bearish Signal: Triggered under opposite conditions:
o Price breaks below a support zone or bearish order block
o Trend alignment: EMA9 < EMA21 < EMA50
Labels such as "BUY" or "SELL" appear on the chart at the trigger candle.
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5. Target and Stop Loss Projection
The script dynamically calculates TP (take profit) and SL (stop loss) levels based on the ATR.
• For Long Trades:
• TP = High + (ATR × 2)
• SL = Low - (ATR × 1)
• For Short Trades:
• TP = Low - (ATR × 2)
• SL = High + (ATR × 1)
These levels are plotted on the chart and adjust as price evolves.
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6. Performance Tracking
The script automatically tracks wins and losses for each signal based on TP/SL outcomes.
• Win Rate Formula:
• Win Rate (%) = (Number of Wins / Total Signals) × 100
This is useful for evaluating the system over time and adjusting risk or position sizing.
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Practical Usage Steps
1. Apply the Indicator
o Add to your chart via Pine Editor or Indicators menu.
o Configure all input parameters including OB periods, pivot lookback, volume threshold, and ATR multiplier.
2. Signal Monitoring
o Wait for a "BUY" or "SELL" label to appear on the chart.
o Confirm alignment using:
EMA trend stacking (e.g., EMA9 > EMA21 > EMA50)
RSI/MACD momentum
Volume and ATR filters
3. Trade Execution
o Enter the trade on the candle following the signal.
o Use the plotted TP/SL lines to manage the trade.
o Monitor price action; exit if trend shifts or targets are achieved.
4. Review Performance
o Use the win rate and PnL counters to monitor your success.
o Analyze losing trades for trend or filter failures and optimize settings accordingly.
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Alerts
The script includes alert support for:
• Signal Triggers: BUY or SELL label detection
• Take Profit / Stop Loss Hits: Automatically notifies when TP or SL is reached
These can be configured for push, email, or webhook delivery via TradingView alert settings.
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Disclaimer from aiTrendview
This tool and the content provided by aiTrendview.com are for educational and research purposes only. They do not constitute investment advice, trading recommendations, or financial guidance. All forms of trading involve significant risk. Past performance does not guarantee future outcomes. Users are fully responsible for their trading decisions, including risk management, position sizing, and due diligence. It is strongly advised to test all strategies on a demo account before applying them to live capital. Consult a licensed financial advisor if necessary.
Signalanalysis
MathSpecialFunctionsConvolve1DLibrary "MathSpecialFunctionsConvolve1D"
Convolution is one of the most important mathematical operations used in signal processing. This simple mathematical operation pops up in many scientific and industrial applications, from its use in a billion-layer large CNN to simple image denoising.
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Reference:
www.algorithm-archive.org
numpy.org
lloydrochester.com
www.geeksforgeeks.org
f(signal, filter)
Convolve
Parameters:
signal (array) : List with signal data.
filter (array) : List with weights to apply to the signal data.
Returns: Discrete, linear convolution of `signal` and `filter`.
