OPEN-SOURCE SCRIPT
Stoch Heat Lines
Yeah, the heatmap can be confusing at first, but stochastics are way more complex than people think. Its not just “oversold” to “oversold” most of the time. Sometimes u get a double bottom, sometimes it doesnt even reach oversold. They’re not signals, they’re waves that start on lower timeframes, roll into higher ones, and eventually feed back down again.
For example, we draw a trendline on the 3H RSI and say “trend broken.” That’s technically true, but it doesn’t tell you which trend you broke. Sometimes you only break a small internal wave and RSI curves back up from ~46. Other times you break a larger structure and RSI keeps pushing toward 20.
That difference isn’t visible on a single RSI line.
By watching the top third of the heatmap, you can see which higher-timeframe waves are losing structure. If it shifts from red to orange to yellow, you likely broke a small wave. If it turns green or blue, the move is actually bearish and driven by higher-timeframe pressure.
For example, we draw a trendline on the 3H RSI and say “trend broken.” That’s technically true, but it doesn’t tell you which trend you broke. Sometimes you only break a small internal wave and RSI curves back up from ~46. Other times you break a larger structure and RSI keeps pushing toward 20.
That difference isn’t visible on a single RSI line.
By watching the top third of the heatmap, you can see which higher-timeframe waves are losing structure. If it shifts from red to orange to yellow, you likely broke a small wave. If it turns green or blue, the move is actually bearish and driven by higher-timeframe pressure.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.