Chermane's ATM Model

Chermane's ATM Model Indicator

Designed For:

• ICT-style trading (liquidity runs, time-based models)
  
• NY session scalping and day trading
  
• Precision execution near institutional levels
  

Concept by: ChermaneTrades
The model operates around the New York trading day, focusing on liquidity formed during the pre-market hours (7:00-9:30 AM EST) with trade execution opportunities after the market open. The system identifies significant highs and lows, tracks their interaction with price, and provides visual tools for potential reversal scenarios.

Core Strategy Rules

1. Identify Key Levels: Find the highest high and lowest low formed between 7:00-9:30am EST
   
2. Wait for Sweep: Observe if price sweeps either the highest high or lowest low
   
3. Look for Reversal Signs: Seek confirmation patterns suggesting potential reversal
   
4. Trade Execution: Enter trades targeting the opposing liquidity zone after 7am
   
5. Time Window: Valid entry period is strictly 9:30-10:30am EST
   

Indicator Components
1. Opening Price Reference Lines

• Midnight (00:00) and 8:30am Opening Prices: Key reference levels
  
• Customizable display options (visibility, labels, colors, styles)
  

2. Vertical Session Markers

• 7:00am EST Line: Marks start of observation period
  
• 00:00 Line: Optional midnight marker
  

3. Liquidity Sweep Detection

• Buyside (Highest High): Tracked between 7:00-9:29am
  
• Sellside (Lowest Low): Tracked between 7:00-9:29am
  
• Visual alerts when levels are broken (with customizable line styles)
  

4. Session Highlighting

• 9:30-10:00am: First potential entry window
  
• 10:00-11:30am: Extended observation period
  

5. Dealing Range (Quadrants)

• Automatically draws Fibonacci-based levels (0%, 25%, 50%, 75%, 100%) after liquidity break
  
• Levels extend dynamically as price moves beyond initial range
  
• Customizable display options for each level
  

6. FVG/IFVG Detection

• Identifies Fair Value Gaps (FVGs) and Inverted Fair Value Gaps (IFVGs)
  
• Configurable minimum gap size and extension period
  
• Color-coded boxes for bullish FVGs (green), bearish FVGs (red), and IFVGs (yellow)
  

Enhancement Factors

• Model works best when considering the relationship to midnight and 8:30 opening prices
  
• Opening range gaps provide additional confirmation
  
• Works particularly well when price is above both opening prices and takes out the highest high
  

When the Model Fails

• Strong trending days
  
• High resistance/consolidation days
  
• Best to avoid trading or use lower leverage during these conditions
  

Practical Implementation
The indicator provides visual tools to:

1. Identify key liquidity levels formed in the early session
   
2. Track how price interacts with these levels
   
3. Highlight optimal trading windows
   
4. Provide reference points for trade decisions
   

The Pine Script code handles all the time-based calculations automatically, adjusting for the New York timezone and properly marking the relevant sessions and price levels.

Backtesting Recommendation

• As suggested in the rules, traders should:
  
• Review past 2 months of morning sessions
  
• Annotate charts as if trading live
  
• Identify successful and unsuccessful setups
  
• Build confidence by observing the model's behavior in different market conditions