Base Zones
Supply and demand by the textbook: a tight base, a decisive departure. RBR, DBR, DBD, RBD labelled, retired after N touches.
About this indicator
I keep a journal of every zone I trade, and I wanted the indicator to follow the definition I actually use, not a looser one. A base is one to five candles with small bodies relative to their range. What turns it into a zone is the departure candle: large body and large against ATR. The approach into the base only sets the label, so a run of ordinary candles into a base counts as well as one big candle. Zones are classified RBR, DBR, DBD or RBD and labelled. Each carries a touch count and retires after your chosen number of tests, since a zone that has been worked three times is not fresh supply. Defaults are permissive enough to find zones on a quiet chart. If you only want the obvious ones, raise the departure threshold. I run mine at 1.3x ATR.
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