There are 2 types of indicators in the market. Leading and Lagging.
I always prefer to choose a leading which can help me determine my trades future hand.
This script provides few levels which are not just leading but also perfect. This script can be used only on the current day/week/month and can't be used to predict the next sessions movement as this script uses current open price.
Open line - Line drawn based on the open of the candle. I feel this is one of the underrated line. This is a very powerful resistance and support line.
Average 10 days levels - These are just calculated based on average 10 previous days.
Logic is - since the script has stayed within the range for past 10 days it remains to stay in the same levels even today.
So on average this levels works 8/10 times which is very bigger in stock market.
Fibonnaci levels zones - This zone is derived from Thomas de-mark book. This is also a simple level where fibonnaci ratio is used to determine the levels from today's open.
Outer levels - They are also same fibonacci levels which are very much respected by all the stocks and indices.
Provided adjustment levels to determine the range for Day/Week/Month.
Added some code from one of my favorite indicator variable moving average. Thanks to the author of the script.
How to trade using this script.
Apply 10 days average and Fibonacci level zones in the chart
Range bound movement
When the stock open. Try to predict from price action whether the stock is going to be in a small range. Then do a strangle of the strikes just outside the zone.
When the stock seems to be little volatile both the levels applied act a good resistance. Take positions once the range in broken or reversal is happening from the level.
This script is unique because these are not drawn levels based on previous day unlike or Fibonacci, current day open is important in this script.
tip - Use it in banknifty and Nifty with Range bound strategy I have mentioned above.