[COG]MTF RZP Heatmap

[COG] MTF RZP Heatmap (Range Zone Pulse)
What It Does
This indicator creates three visual heatmaps that show how current price movement compares to the average range of different timeframes. It helps traders:

Identify when price moves are overextended
Compare momentum across different timeframes
Spot potential reversal points
Understand the relative strength of price movements

How It Works

Range Calculation:

For each selected timeframe, it calculates an average range based on the specified number of periods
The range is measured from high to low for each period
A moving average of these ranges creates a dynamic "normal" range for that timeframe


Position Calculation:

Measures how far price has moved from the period's opening price
Compares this movement to the average range
Converts the movement into a percentage (-100% to +100%)


Visual Display:

Shows three vertical heatmaps, one for each timeframe
Colors graduate from bearish (typically red) to bullish (typically green)
A dot indicator shows the current position within each range
Percentage labels show exact movement relative to average range



Trading Applications

Trend Trading:

Multiple timeframes aligned in the same color suggest strong trend
Use larger timeframes (Daily/Weekly) for trend direction
Use smaller timeframes (4H/1H) for entry timing


Mean Reversion:

Extreme readings (near +100% or -100%) suggest overextended moves
Look for divergences between timeframes
Use when shorter timeframes show extremes but larger timeframes don't


Volatility Trading:

Compare current moves to average ranges
Identify when markets are more volatile than usual
Adjust position sizes based on range expansion/contraction


Multi-Timeframe Analysis:

Compare price action across different time horizons
Identify conflicting signals between timeframes
Use for timeframe alignment in trading decisions



Best Practices for Usage

Timeframe Selection:

Set the first timeframe to your trading timeframe
Set the second timeframe to your trend timeframe
Set the third timeframe to your entry timeframe


Range Period Settings:

Default is 5 periods
Increase for more stable readings
Decrease for more responsive readings


Color Interpretation:

Darker colors indicate stronger moves
Look for alignment across timeframes
Watch for extremes in any timeframe


Trading Setups:

Wait for alignment in multiple timeframes
Use extreme readings for counter-trend trades
Combine with other indicators for confirmation