Gunzo Market SR is a set of 3 tools combined for trend analysis on day trading strategy.
VWAP (Volume Weighted Average Price) : The VWAP indicator is generally used for trend analysis. For example if the VWAP line is under the closing price for a long period of time, the trend is strong. In this script, the VWAP has been optimized for day trading as the indicator is calculated inside the daily range, and resets when a new day starts. This way the indicator reflects the daily trend and not the overall trend. You can also use the position of closing price according to the VWAP to find optimal entry points according to the indicator.
Highs / Lows : The Highs / Lows are generally used for trend analysis too. The High / Lows are mainly used to identify prices that have been key during the past and that we can use as an indication for the following candles. In this script, the Highs / Lows are computed on the daily period and then displayed on the current period (recommended to use on a daily period or lower). This way the indicator reflects the highest point and the lowest point of the day (can be modified to have a longer range of pivot days even if I recommend to stay on 1 day for day trading).
Support / Resistance : The Support / Resistance is generally used for trend analysis too. The Support / Resistance are found by searching local high and lows. The longer the supports and resistance are, the strongest it can be considered. In this script, the Highs / Lows are computed by default on a lower time frame (usually 3-4 times lower). For example on a 15 minute graph, the Highs / Lows will be computed on the 5 minute graph (can be modified if the displayed result is not optimized for your asset).
How to use this set of tools : I personally recommend to use this tool at the start of your day of trading. This way you will get a clear vision of the daily situation and try to identify key prices and the trend for the current day. I then suggest to set up an alert on the key price to be notified when you're getting close to it.
Sürüm Notları
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updated screenshot
Sürüm Notları
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Fixed a bug on the vwap calculation on time frames greater or equal to 1 hour. Fixed a bug in the cumulative sum of vwap. Added conditions for setting up alerts on key moment of the script (crossed above, crossed under). Added a legend in the script for better understanding the script. Reorganized the "thanks area" and added more thanks. Added min values for inputs. Fixed minor code alignement.
Is anyone here able to comment as to any relationship between this fine work and the Market Cipher ?
qbui_
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Thanks for the script. Can you give a brief explanation to what each of the colors and dotted lines are. You'll have many more asking in the future.
Gunzo_TV
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@qbui_, Good idea for improving the description of the script ! I will update it in the next update of the script. Until then you can find below a brief explanation on all the symbols :
TOP BLUE THIN LINE : highest value of the day
BOTTOM BLUE THIN LINE : lowest value of the day
LIGHT BLUE AREA : area between highest and lowest value of the day
BLUE DOTS : center of range (highest value + lowest value of the day / 2)
PURPLE DOTS : resistance on the lower time frame
YELLOW DOTS : support on the lower time frame
It works in stocks too?