PowerBar (Purple Dot) – Price & Volume Spike📌 Overview
This indicator is inspired by the well-known “Purple Dot” indicator popularized by Manas Arora, designed to help traders identify fast-moving stocks exhibiting strong price and volume momentum.
This indicator flags high-activity bars called "PowerBars" — bars where:
Rate of Change (ROC) is equal to or above a user-defined threshold (default 5%)
Volume is equal to or a user-defined threshold (default 500,000)
These bars are visually marked with purple dots and can serve as a signal of strength, interest, or volatility spike.
🔍 How It Works
The indicator:
Calculates bar-level conditions based on:
ROC >= Threshold (e.g., 5%)
Volume >= Threshold (e.g., 500,000)
Flags qualifying bars with a purple dot below the candle
Aggregates PowerBar count over selectable historical periods (1 week, 1M, 3M, 6M, 9M, 12M)
Displays total PowerBars and total return (%) over the selected time period in a clean visual table
🛠 Features
Purple Dot Plotting: Marks bars where price changes rapidly (based on a user-defined Rate of Change threshold) and where volume exceeds a set minimum, signaling potential momentum bursts.
Flexible Timeframes: Count PowerBars and calculate stock return over selectable lookback periods ranging from 1 week to 12 months, adaptable to various trading styles and markets.
PowerBar Count: Tracks and displays the number of PowerBars within the chosen period, helping quantify momentum frequency.
Return Calculation: Shows the percentage return over the selected time horizon, supporting performance validation.
Customizable Summary Table: On-chart table with dark/light themes, adjustable size, and position offers a clean overview of key metrics.
Dual Modes:
Chart Mode: Ideal for single-stock analysis with visual dot markers and performance stats.
PineScreener Mode: Outputs data suitable for PineScreener scanning.
⚙️ Parameters
ROC Threshold (%): Minimum bar-to-bar price change in percentage to signal a PowerBar (default 5%).
Volume Threshold: Minimum volume for a bar to qualify (default 500,000).
PowerBar and Return Periods: Choose from 1 week up to 12 months.
Visual Customization: Enable/disable purple dots, configure the summary table’s appearance, and select dark or light theme.
Mode Selection: Switch easily between Chart Mode and PineScreener Mode based on use case.
📬 Alerts
Set alerts for PowerBars (purple dots) to get notified when a strong price-volume bar appears.
Priceandvolume
Price & Volume Breakout Fibonacci Probability [TradeDots]📝 OVERVIEW
The "Price & Volume Breakout Fibonacci Probability" indicator is designed to detect the probability of the maximum run-up and drawdown of each breakout trade on an asset, assisting traders in optimizing their take profit and stop loss strategies.
🧮 CALCULATIONS
The algorithm detects price and volume breakouts to activate the Fibonacci levels displayed on the chart. It calculates these levels using the period pivot high and low, with the close price of the breakout bar as the reference price.
The indicator then forward-tests within an user-selected number of bars, detecting the maximum run-up and drawdown during that period. Consequently, it calculates the probability of the price hitting either side of the Fibonacci levels, showing the likelihood of reaching take profit and stop loss targets for each breakout trade.
📊 EXAMPLE
The above example shows two breakout trades, circled within the yellow rectangle zone.
The first trade has a maximum run-up above the +0.382 Fibonacci level zone and a maximum drawdown below the -0.618 Fibonacci level zone.
When the price reaches the maximum run-up, it only has a ~45% probability of moving further upward into the last two zones (25% + 19.44%). This indicates that setting a take profit at a higher level may have less than a 50% chance of success.
Conversely, when the price reaches its maximum drawdown, there is only an ~8% probability of moving further downward into the last drawdown zone. This could indicate a potential reversal.
⚙️ SETTINGS
Breakout Condition: Determines the type of breakout condition to track: "Price", "Volume", "Price & Volume".
Backtest Period: The maximum run-up and drawdown are detected within this bar period.
Price Breakout Period: Specifies the number of bars the price needs to break out from.
Volume Breakout Period: Specifies the number of bars the volume needs to break out from.
Trendline Confirmation: Confirms that the close price needs to be above the trendline.
📈 HOW TO USE
By understanding the probabilities of price movements to both the upside and downside, traders can set take profit and stop loss targets with greater accuracy.
For instance, placing a stop loss order below the zone with the highest probability minimizes the chances of being stopped out of a profitable trade. Conversely, setting a take profit target at the zone with the highest probability increases the win rate.
Additionally, if the price breaches multiple Fibonacci levels during the breakout period, it may indicate an abnormal state, signaling a potential reversal or pullback. This can help traders exit trades in a timely manner.
Traders can adjust their take profit and stop loss levels based on their individual risk tolerance.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
