Equilibrium Gauge

An effective tool for traders, the Equilibrium Gauge indicator is designed to identify significant price shocks and subsequent market reactions. It automatically detects large, impactful candles and projects three key zones—Shock, Absorption, and Tension—to forecast potential areas of market reversal or continuation. When the price enters the critical "Tension Zone" and specific conditions are met, the indicator will generate a clear BUY or SELL arrow, providing a straightforward signal for potential trade entries.

Advantages and Features

• Automatic Event Detection: The indicator constantly scans the chart for unusually large price movements (spikes or "shocks") based on your sensitivity settings.

• Dynamic Zone Creation: Once a shock event is identified, it instantly draws three distinct zones on your chart:

  • Shock Zone (Red): The initial area of the price spike where the imbalance occurred.

  • Absorption Zone (Yellow): The area where the market often digests the initial shock, representing a period of consolidation or indecision.

  • Tension Zone (Green): The most critical area. When the price returns to this zone, it signifies a potential retest of the original price level, indicating that the market may be ready to reverse.

• Clear BUY/SELL Signals: The indicator's primary feature is its ability to generate simple arrow signals.

  • A  BUY arrow (Lime) appears when, after a bullish spike, the price re-enters the Tension Zone and a bullish candle forms.

  • A  SELL arrow (Red) appears when, after a bearish spike, the price re-enters the Tension Zone and a bearish candle forms.

• On-Screen Status Panel: A convenient panel in the top-left corner keeps you informed of the indicator's current status, whether it's searching for an event or monitoring active zones.

• Fully Customizable: You have complete control over the indicator's sensitivity, colors, and arrow appearance to match your trading style and chart theme.

Input Parameters

Detection Settings

• SpikeMultiplier: 4.0 - Determines the sensitivity for detecting a price spike. A lower number makes the indicator more sensitive to smaller price movements, while a higher number will only identify very large spikes.

• AveragePeriod: 50 - The lookback period used to calculate the average size of a candle. This average is then used to identify a "spike" candle.

• SearchPeriod: 1000 - The number of recent bars the indicator will search through to find a qualifying spike event.

Arrow Signal Settings

• ShowArrows: true - Set to true to display BUY/SELL arrows when conditions are met. Set to false to hide them.

• BuyArrowColor: clrLime - Sets the color for the BUY signal arrow.

• SellArrowColor: clrRed - Sets the color for the SELL signal arrow.

• ArrowSize: 2 - Adjusts the size of the signal arrows.

• ArrowDistance: 15 - The distance (in points) the arrow will be drawn away from the signal candle's high or low.

Display Settings

• ShockZoneColor: Red (semi-transparent) - Sets the color for the Shock Zone.

• AbsorptionZoneColor: Yellow (semi-transparent) - Sets the color for the Absorption Zone.

• TensionZoneColor: Green (semi-transparent) - Sets the color for the Tension Zone.