It is based on the previous days ATR and the current days opening tick.
It takes that info and uses Fibonacci to automatically draw key levels for the day.
I have added the BULL BAR ( Green bar ) and Bear Bar ( Red Bar ) to signal as a Go Long / Go Short line in the sand.
The Tan bars are also proven key "Take Profit" levels.
These are, on average, major points of reversals, dip buys or consolidation.
I use this on the 5min timeframe and a close above or below a key level is my signal and direction. Auto Levels have proven to be a great indicator of major support and resistance.
( working on labeling alerts next )
**HOW I USE THIS INDICATOR**
I use the 5m timeframe and generally wait to trade after the 3rd tick closes for direction.
If I get a 5min candle closing ABOVE the green "Bull Bar" I go long. If it closes BELOW the Red Bear Bar, I go short.
I do not trade in the area below the green and red bars. That is a chop zone. It has to leave that zone to count as a tradeable move. ( of course if I get a solid rejection at the bull or bear bar Ill scalp the reversal inside the chop zone )
The tan filled bars are, on average, Take Profit zones. These are likely points of contention, consolidation or areas most will close longs or shorts. You can see accumulation around these bars as buyers and sellers fight to see what the next direction is.
This indicator works great on all major commodities. The more an Algo is involved, the more accurate it can be.
I am working on labeling for easier alerts as well as a quicker load at open and only current day potting. Until then backtest the levels for any prior day for accuracy on your favorite ticker.
Please hit me up on Twitter or just view my tweets to see how I use it. Feedback welcome. This is my first script. I only know what I have learned with this one.
Added in an input to select a custome Previous Day ATR. Default 14. Input script courtesy of @bigbang74 on Twitter
These candles will highlight Green or Red if the volume is higher than average. They will remain hollow ( or whatever color you select ) if volume is below average. The % can also be adjusted.
This has proven to be a great indicator of when price action is going to break THROUGH the next level as well as follow through into the next levels resistance. It also saves an indicator if you are using Volume or Relative Volume to help you with price action.
Will also have to work on the aesthetic and phantom generated levels for prior days via the box.
Thanks for the script additions Twitter Handle @bigbang74 !
Please grab the updated script AutoLevels 3.0 which includes EMA Clouds, RSI indicators, Volume Candles and customizable Level Extensions.
Thank you to everyone for your feedback!
This script will no longer be upated.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.