Innotrade Multi-TF SMMA + VWAP Price Action

Welcome to the Innotrade Price Action Concept, a comprehensive indicator designed to demystify market movements and empower your trading decisions. This script integrates multiple powerful analytical tools into a single, cohesive framework, focusing on how price behaves in relation to key levels, volume, and specific candlestick formations. It's built to help you "read the story" the market is telling.
What is the Innotrade Price Action Concept? (In Simple Terms):
Think of the market as a dynamic environment where buyers and sellers are constantly interacting. The Innotrade Price Action Concept aims to interpret these interactions by observing:
The Overall Trend: Are buyers or sellers generally in control?
Specific Price Behaviors: Are there strong, decisive moves, or signs of hesitation and potential reversals?
Volume Clues: Is there conviction behind the price movements? Are big players involved?
Key "Fair Value" Areas: Where has the market established important price zones?
Contextual Signals: Are there specific patterns forming under particular market conditions that offer an edge?
This script provides the tools to analyze these aspects, all working together.
Core Pillars of the Innotrade Price Action Concept (Features Explained):
Pillar 1: Trend & Market Structure (Smoothed Moving Averages - SMMAs & Clouds)
Innotrade SMMAs (SMMA 1 & SMMA 2):
These are your primary guides for understanding trend direction and dynamic support/resistance.
SMMA 1 (default 9-period, green/red) is the faster-reacting average, showing short-term sentiment.
SMMA 2 (default 21-period, lime/maroon) is the slower average, indicating the more established trend.
The Story: When SMMA 1 is above SMMA 2 and both are angling up, buyers are generally in control (uptrend). The opposite suggests a downtrend.
Innotrade SMMA Clouds:
These shaded areas around each SMMA represent zones of volatility and potential support/resistance.
The Story: Price interacting with these clouds can signal bounces or breakthroughs. A widening cloud might indicate increasing volatility.
Pillar 2: Candlestick Storytelling (Bar Pattern Recognition)
The Innotrade Concept emphasizes that individual candles and short sequences tell a story. This script automatically highlights key "chapters":
Elephant Bars (Momentum): Very large candles signaling strong conviction. (Bullish: Green, Bearish: Red)
The Story: A strong push in one direction.
Tail Bars (Indecision/Reversal): Small bodies, long wicks (pin bars). (Bullish: Lime, Bearish: Maroon)
The Story: Price was rejected at a certain level, hinting at a potential shift.
180 Bars (Strong Reversal): An Elephant Bar quickly and strongly reversed. (Bullish: Blue, Bearish: Purple)
The Story: A sudden, powerful change in sentiment.
RBI (Red Bar Ignored / Potential Continuation Down): A bearish candle after two bullish ones. (Teal)
The Story: Buyers tried, but sellers overwhelmed them, possibly continuing the downtrend.
GBI (Green Bar Ignored / Potential Continuation Up): A bullish candle after two bearish ones. (Orange)
The Story: Sellers tried, but buyers stepped in, possibly continuing the uptrend.
Pillar 3: Volume Intelligence (PVSRA Candle Coloring)
Price action is more reliable when confirmed by volume. PVSRA (Price Volume Spread Range Analysis) helps:
If enabled, candles are colored based on their range, closing position, and volume.
The Story: Helps spot if "smart money" or significant interest is behind a move. (Special Vector Colors: Red, Green, Violet, Blue highlight these moments).
Pillar 4: Fair Value & Key Levels (Innotrade Multi-Timeframe VWAP)
Innotrade VWAP (Volume Weighted Average Price):
This isn't just any average; it's the average price weighted by how much volume was traded at each price level. It's a key reference for institutional traders.
The script plots VWAP for multiple timeframes (Daily, Weekly, Monthly, Quarterly, Yearly).
The Story: VWAP levels often act as magnets for price, or as dynamic support/resistance. Trading above the Daily VWAP can be seen as bullish for the day, and below as bearish.
VWAP Standard Deviation Bands:
Optional bands around a selected VWAP show common deviations from the "fair value."
The Story: Extreme deviations might signal overextension and a potential pullback towards the VWAP.
Previous Period VWAP Levels:
Yesterday's (or last week's, etc.) VWAP can be a powerful psychological level.
Pillar 5: Contextual Signals (GBI/RBI Text Labels)
This adds a specific layer to the Innotrade Concept:
"GBI" Text: Appears under a GBI candle pattern only if the price is currently below SMMA 1.
The Story: A bullish GBI pattern is forming, but it's fighting against short-term bearish pressure (below SMMA 1). If it succeeds, the move could be stronger.
"RBI" Text: Appears under an RBI candle pattern only if the price is currently above SMMA 1.
The Story: A bearish RBI pattern is forming, but it's fighting against short-term bullish pressure (above SMMA 1). If it succeeds, the move down could be more significant.
How to Apply the Innotrade Price Action Concept (The Strategy):
The core of the Innotrade Price Action Concept is CONFLUENCE – waiting for multiple signals from the pillars above to align.
Step 1: Understand the Dominant Trend & Market Structure.
Are SMMAs trending up or down? Is SMMA 1 above/below SMMA 2?
Where is price relative to the key Innotrade VWAP levels (e.g., Daily, Weekly VWAP)?
Is price inside or breaking out of an SMMA Cloud?
Step 2: Look for Candlestick Stories at Key Areas.
As price approaches an SMMA, a VWAP level, or a cloud edge, watch for the formation of Elephant Bars, Tail Bars, or 180 Bars.
Does a PVSRA "vector" candle appear, confirming volume interest at this level?
Step 3: Identify GBI/RBI Setups for Specific Context.
If a GBI pattern forms below SMMA 1, and you see the "GBI" text, this could be an early sign of buyers attempting to overcome short-term resistance. Look for follow-through.
If an RBI pattern forms above SMMA 1, and you see the "RBI" text, this could be an early sign of sellers attempting to break short-term support. Look for follow-through.
Step 4: Seek Confirmation and Manage Risk.
High Probability Setups: The strongest signals occur when:
A bullish bar pattern (e.g., Bullish Elephant, Bullish Tail, GBI text) forms near support (SMMA, VWAP, Cloud bottom) within an established uptrend.
A bearish bar pattern (e.g., Bearish Elephant, Bearish Tail, RBI text) forms near resistance (SMMA, VWAP, Cloud top) within an established downtrend.
PVSRA volume confirms the move.
Example Trade Idea (Bullish):
Price is above SMMA 2 and SMMA 1 (uptrend).
Price pulls back to touch SMMA 1 or the Daily VWAP.
A Bullish Tail Bar or Bullish Elephant Bar forms, OR a GBI pattern with "GBI" text appears.
A green/blue PVSRA candle confirms buying interest.
This confluence of signals suggests a potential entry.
Always use appropriate stop-loss orders and manage your risk.
Customization:
The Innotrade Price Action Concept is adaptable. You can:
Adjust SMMA lengths.
Customize all colors to your preference.
Toggle on/off VWAPs, Clouds, and PVSRA coloring.
Fine-tune bar pattern parameters.
Enable/disable GBI/RBI text and alerts.
Disclaimer:
The Innotrade Price Action Concept and this script are for educational and informational purposes.
This is NOT financial advice. Trading involves significant risk.
Past performance does not guarantee future results.
Always test thoroughly and combine with your own judgment and risk management.
Acknowledgements:
This script embodies the "Innotrade Price Action Concept," bringing together established analytical techniques into a unified framework for market analysis.