There are some additional features, but the dot graphs are king.
Currently the dynamic s/r's being used in the dot plots are:
Senkou A (red)
Senkou B (green)
ZLEMA ( )
200 ( salmon )
You'll see a dashed line through the middle of the resistances section (red) and supports section (green). Cloud indicators are plotted above the dashed line, and ZLEMA's are below.
How it Works - Visual
As stated in the intro - if a dynamic s/r is currently above the current price and acting as a resistance, the indicator plots a dot above the histogram in the red box. If a dynamic s/r is acting as support, a dot is plotted in the green box below. Additionally, there is an optional histogram (default is on) that will further visualize this relationship. The histogram is a simple summation of the resistances above and the supports below.
Here's a visual to assist with what that means. This chart includes all of those dynamic s/r's in the dynamic dot dashboard (the on-chart parts are individually added, not part of this tool).
You can see that as a dynamic support is lost, the corresponding dot is moved from the supports section at the bottom (green), to the resistances section at the top (red). The opposite being true as resistances are being overtaken (broken resistances are moved to the support section (red)). You can see that the raw chart is just... a mess. Which kinda of accentuates one of the key goals of this indicator: to get all that dynamic support info without a mess of a chart like that.
How To Use It
There are a lot of ways to use this information, but the most notable of which is to detect shifts in the market cycle.
For this example, take a look at the dynamic s/r dots in the resistances category (red background). You can see clearly that there are distinctive blocks of high density dots that have clear beginnings and ends. When we transition from a high density of dots to none in resistances, that means we are flipping them as support and entering a bull cycle. On the other hand, when we go from low density of dots as resistances to high density, we're pivoting to a bear cycle. Easy as that, you can quickly detect when market cycles are beginning or ending.
Alternatively, you can add your preferred linear SR's, fibs, etc. to the chart and quickly glance at the dashboard to gauge how dynamic SR's may be contributing to the risk of your trade.
Who It's For
New traders: by looking at dot density alone, you can use Dot Dynamics to spot transitionary phases in market cycles.
Experienced traders: keep your charts clean and the information easy to digest.
Developers: I created this originally as a starting point for more complex algos I'm working on. One algo is reading this dot dashboard and taking a position size relative to the s/r's above and below. Another cloud algo is using the results as inputs to spot good setups.
There is an option (off by default, shown in the headline image above) to fill the bar colors based on how many dynamic s/r's are above or below the current price. This can make things easier for some users, confusing for others. I defaulted them to off as I don't want colors to confuse the primary value proposition of the indicators, which is the dot heat map. You can turn on colored bars in the settings.
One thing to note with the colored bars: they plot the color purely by the dot densities. Random spikes in the gradient colors (i.e. red to lime or green) can be a useful thing to notice, as they commonly occur at places where the price is bouncing between dynamic s/r's and can indicate a paradigm shift in the market cycle.
Timeframes and Assets
This can be used effectively on all assets (stocks, crypto, forex, etc) and all time frames. As always with any indicator, the higher TF's are generally respected more than lower TF's.
Thanks for checking it out! I've been trading crypto for years and am just now beginning to publish my ideas, secret-sauce scripts and handy tools (like this one). If you enjoyed this indicator and would like to see more, a like and a follow is greatly appreciated 😁.
V2 Release - Custom Inputs and UI Improvements
The purpose of this V2 release is to increase flexibility, improve control over inputs, update UI of settings, and add theming/color customization.
- Users can now select from ZLMAs, EMAs, SMAs, or HMAs instead of just being locked into ZLMAs (still default)
- Users can now enter custom values for their selection of ZLMA/EMA/SMA/HMA (default is 99 and 200)
- Users can now toggle whether or not to show dots. Keep them on if you want to maintain the detailed report (default and recommended), or toggle off for a simpler indicator.
- Users can toggle on/off Cloud indicators.
- Dark Mode (now default): a higher contrast color scheme using a gradient from teal to orange. Designed specifically for users with a dark chart background, but usable for all. Toggling off will go back to the red/green scheme (darker, and may look better for some users with a light background). Users can, as always, update these colors in the "Style" tab in the settings to anything you want.
- Added sections and generally cleaned up settings so they are more legible and users can easily see what inputs effect the result.
- Fixed bug that prevented the histogram from fully disappearing when toggled off.
- Remove unused code left over from development.
- Cleaned up comments
Here we can see the two themes against a dark vs light background.
Top Left: dark background, dark mode on.
Top Right: dark background, dark mode off.
Bottom Left: light background, dark mode on.
Bottom Right: light background, dark mode off.
With the addition of multiple themes, the key is now updated to:
Dark Mode ON (bright colors):
Tenkan - aqua
Kijun - light pink
Senkou A - red
Senkou B - green
MA1 - lavender
MA2 - salmon
Dark Mode OFF (dark colors):
Tenkan - blue
Kijun - pink
Senkou A - red
Senkou B - green
MA1 - navy
MA2 - burgundy