CBO

Step 1) New Consolidation detected

Step 2) Determine the Price action pattern and the Trendlines for context

Step 3) Wait for a clear brake from the consolidation, POC Levels or Trendlines work the best

Step 4) Determine your possible profit Target/s with the PT / SR levels and their probabilities and strength

Step 5) Place initial stoploss below the POC or other Support levels (Longs) and vice versa for shorts. Trail the stoploss if you wish with the SR Levels and / or the Anchored VWAP.

The market moves in phases from consolidation to expansion and back again. This indicator aims to capture the consolidation phases and then exploit or capture the expansion that follows.

1. We need to know where to place our Profit Targets. Basing it on a simple 1, 2, 3 ATR just doesnt cut it. Its far better to base it on significant support and resistance levels.
2. Knowing the probability of reaching any of these levels are also invaluable. As an example if the price has moved to the 4 th resistance level form the breakout and the level has a probability of 0.26 then we know we only have a 26 % chance of the price moving higher and it might be best to have exited most of your position at this level. Also when level 1 has a probability of 0.67 then we know that we have a 67% chance of reaching this level. It might be close but it has a very good chance to make for a profitable scalp trade.

Our SR levels (Profit Targets) are defined by POC levels, Pivots , LVNs , HVNs and more. Levels are added if they are significant enough and removed when the are no longer relevant or negated. They are also further refined to find the POC in every bar instead of simply the Close or High/ Low or Pivot High/Low . This make for really accurate levels which is absolutely essential for profitability.

This indicator doesn’t simply look at pivot highs and lows , or equal highs and lows to define the consolidation block but it rather finds the patterns that lead to the consolidation, These patterns are defined by price action , accumulation and distribution of volume (heat), past support and resistance levels and momentum metrics.

These consolidations can show up as Wedges, Flags , Pennants ,Ranges or Trend Channels etc. As these patterns often lead to major moves the goal is to define these patterns timeously and accurately and profit from the moves that follow from them.

These trendlines are very helpful with defining entry levels as well as projecting where the price might go after the consolidation. They also offer good support and resistance levels in a trend which are great for pullback trades. Price levels where support and resistance levels intersect with trendlines creates very significant levels to trade from.

We calculate the cumulative delta from when a new consolidation is confirmed. This helps to determine if the buyers or sellers are in control. Delta flips makes for good trade setups as it shows the shift in buyer vs seller behavior.

This indicator anchors the VWAP when a new consolidation is formed. This is an ideal time to anchor a VWAP as the consolation should precede a new trend with the VWAP defining the new trend. Its really helpful to use as a trialing stoploss or trade pullbacks from the VWAP level in the trend direction.

We have included some of the features of our Q-Bars / Heat Bars indicators in this indicator.. The patterns , VWAP, Cum Delta etc. shows us the context or the larger picture. The Heat shows us the micro or intrabar information that we need to know.

We have also added alerts that will notify you when:

1. a New consolidation has formed
2. Any of the Profit Target Levels, Up or Down are reached.

These Alerts simply speak the wording that you tell it to speak.