Opening Price Deviations with Alerts

Overview

The Timeframe Opening Price Deviations indicator helps traders visualize how price deviates from a key reference point—the opening price of a selected timeframe (Daily, Weekly, or Monthly). It calculates upper and lower deviation levels based on a percentage step and plots these levels on the chart. This can help traders identify potential areas of support and resistance.

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How It Works

Opening Price Reference:

• The script retrieves the opening price of the selected timeframe (Daily, Weekly, or Monthly).
  

Deviation Levels Calculation:

• Five upper and lower deviation levels are calculated based on a percentage step input by the user.
  
• Each level is determined by multiplying the opening price by (1 ± step size).
  

Visualization

• The indicator plots the calculated levels as horizontal lines above and below the opening price.
  
  
• Labels appear only on the latest bar, displaying the exact price level along with its percentage deviation from the opening price.
  
  
• User has the option to turn on/off or change the bar colours. If price is within the 1st deviation lines that's considered neutral coloured orange as default. If price is above/below the first deviation levels the bar colours will be green or red.
  

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Potential Use Cases

Support & Resistance Zones 🟢🔴

• The deviation levels can act as potential areas where price may reverse or consolidate based on historical price behaviour.
  

Breakout & Reversion Strategies 📈📉

• If price breaks above an upper deviation level, it could indicate momentum continuation.
  
• If price rejects from a level, it might suggest a mean reversion opportunity.
  

Trend Strength Analysis 🔍

• The distance between the price and deviation levels can help traders assess whether a trend is strong (moving away from the opening price) or weak (hovering near the opening price).
  

Intraday vs. Multi-Timeframe Perspective 🕒

• By selecting different timeframes (Daily, Weekly, Monthly), traders can align intraday price movements with higher timeframe reference points for added confluence.
  

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Customization Options

• Timeframe Selection: Choose between Daily, Weekly, or Monthly opening prices.
  
• Deviation Step (%): Adjust the step size to control the spacing between deviation levels.
  
• Colour Bars: User Is able to change the colour of the bars.
  

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Alerts

This Indicator also has alerts for when price crosses above/below a deviation line. It will tell you the ticker, price and time

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Final Notes

This indicator is purely for technical analysis and should not be used as a standalone trading system. It works best when combined with price action, volume analysis, or other indicators of you're choosing to refine trade decisions.

Happy Trading! 🚀📊

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