Option Buying Tool

PRICE ACTION BASED TOOL:
Key Components:
Session Time and First Hour Price Action:

The script defines the session start (09:15) and session end (10:15), and it tracks the high and low prices during the first hour of trading.
At the end of the first hour, labels are placed at the high and low of the first hour, with a small offset for visual clarity.
Buy and Sell Signals:

Buy Signal: Triggered when the price closes above the first-hour high, and the candle wick is less than 20% of the total candle range.
Sell Signal: Triggered when the price closes below the first-hour low, and the candle wick is less than 20% of the total candle range.
Buy and sell signals are visualized with green and red arrows, respectively.
Additional Indicators:

DEMA (Double Exponential Moving Averages): Plots a 20-period and a 50-period DEMA on the chart, which is often used to smooth out price action.
VWAP (Volume Weighted Average Price): The VWAP line is added to give you an idea of the average price weighted by volume throughout the day.
Alerts:

Alerts are set for when a buy or sell signal is triggered, notifying you with a custom message like "🔔 Buy Signal Triggered! Price crossed above first-hour high."
Enhancements & Considerations:
First Hour High/Low: This is important for recognizing breakout opportunities in the first hour of trading. The strategy is focused on taking advantage of volatility in the early market hours.
Candle Wicks: The use of candle wick percentages to filter out signals where the candle body is small (less than 20% of the total candle range) helps avoid false signals from indecisive price action.
DEMA & VWAP: These help smooth out the price action and provide more context to the buy/sell signals. The DEMA is often faster than a regular EMA, while the VWAP gives an average price weighted by volume.
Potential Improvement Areas:
Session Flexibility: You may want to adjust session times (for example, if you're trading in a different market or a different time zone).
Risk Management: Add features like stop-loss and take-profit levels, or risk-to-reward ratio calculations to further refine the strategy.
Additional Filters: You could incorporate other indicators or candlestick patterns to further confirm buy/sell signals.