Breaker, Market Structure, ADR Zones

This is hybrid of multiple scripts spliced together and consists of the following:

1. 1. LuxAlgo's 2023 Breaker Blocks with Signals [LuxAlgo]
   
2. 2. LuxAlgo's 2023 Market Structure CHoCH/BOS (Fractal) [LuxAlgo]
   
3. 3. TFlab's 2024 Market Structures + ZigZag [TradingFinder] CHoCH/BOS - MSS/MSB
   
4. 4. KivancOzbiligic's 2021 Supertrend
   
5. 5. DreadBlitz's 2019 Bollinger Bands on MACD
   
6. 6. LoneSomeTheBlue's 2021 Higher High Lower Low Strategy (With Source Code)
   
7. 7. the author(s) of TradingView's in-house VWAP indicator
   

Special shoutout to the following indicators:

1. UAlgo's Price Action Volumetric Order Blocks [Ualgo]
   Pine Script®
   Pine Script®
2. TTrades Daily Bias by TradeforOpp (based on the youtube video by TTrades
   

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The code produces Breaker Blocks (which are based on ICT concepts), shows Changes of Character "ChoCh" and Breaks of Structure "BOS", Higher Highs and Lower Lows, Volume Weighed Average Price (VWAP), and Average Daily Range (ADR) zones.

It also includes an indicator table to show confluence: whether price is currently above or below VWAP, whether the 13, 21, and 50 emas are ordered bearish or bullish, whether SuperTrend is in a bullish or bearish trend, and the current momentum and speed of the current candle via derivations from Commodity Channel Index (CCI). Finally, it also allows the user to the display Heiken Ashi candle shadows to see trend through the noise.

It is intended to be useful for both swing and day trading.

How to Use This Script:
This indicator is intended as a swiss army knife so you can find multiple ways how to use this.
Probably one of best ways to use this script is wait for a bullish or bearish Breaker Block to appear simultaneously or near-simultaneously with a Change of Character "Choch" in the same direction. Use other elements for confluence, such loss or regain of VWAP or its outer bands, state of the SuperTrend, etc. During day trades, this appears to be especially useful when price falls soon outside the 1st outer VWAP band and continues to close outside of it, suggesting a strong trend for the day.

The CCI indicators in the table are useful for showing both speed and momentum. Contrary to the common perception that CCI above 100+ is "overbought" or CCI below -100 is "oversold", you actually want to trade with, not against these conditions because it implies one side has control. The "CCI" in the table simply lists the current index position, whereas CCI is the 1st derivative of CCI (velocity), and the CCI more akin to an acceleration when CCI is extending beyond its bollinger band.

When viewing the daily timeframe, you will see Average Daily Range zones appear. These are useful as they tend to act as "support" and "resistance". A break through the upper or lower ADR zones within the opening minutes of the session indicates a strong breakout/breakdown. See Range Rush Reversal indicator by Kiakili on how to use ADR zones.

Note: This is version 5 script. The conversion to version 6 is not quite so simple as a click of a button.

Final Notes: Please, by all means test this code for algorithmic trading ala "Michael Automates" on Youtube. If you are an aspiring (or actual) statistical modeler, you should be generating multiple decision-tree-like flags to create triggering conditions for buying and selling (feature engineering. Try incorporate moving up stops), then iterate through different model fits to see what generates the highest net profit and profit factor at the lowest drawdown (there's a lot of target variables you could potentially create to model for). Then check for robustness by testing your model on multiple out-of-time vintages and on multiple asset classes. If they are great results, post your code and results here as a Strategy please!


I can be found at @sax_yak on Twitter (now X).