Description: Consolidation is a technical analysis term used to describe a assets's price movement within a given support and resistance range for a period of time. Consolidations happen either during trending market phases or before a new trend. Consolidation is generally interpreted as market indecisiveness and uncertainty as to which way the market will go next caused due to trader indecisiveness, which ends when the asset's price moves above or below the trading level. A consolidation level could be broken for several reasons, such as the release of materially important news or the triggering of a succession of limit orders. Markets spend a great amount of time ranging and going sideways. It pays off to know how to identify and trade consolidations because they happen so frequently. Periods of consolidation can be found in price charts for any time interval, and these periods can last for days, weeks, or months. Technical traders look for support and resistance levels in price charts and then use these levels to make buy and sell decisions. Typically, traders look for certain consolidation patterns: sideways ranges, downward or upward sloping ranges (also called flags), or triangular consolidations (triangles, wedges and pennants). In contrast, this script offers an alternative, fairly straightforward but effective, way to pinpoint consolidation periods using a forecast oscillator method and simply highlighting relevant regions in the chart (with a yellow background). In the settings menu you can select one of the three calculation methods, but all of them are based on the forecast oscillator. The indicator settings depend on the asset and on the timeframe. For example for the 2H timeframe BTSUSD preferred settings are period:10/method:2/threshold:0.2, and for the 15M timeframe BTSUSD the settings are period:10/method:2/threshold:0.02. Feel free to experiment with settings to suit your needs.
Hi! It looks like a great indicator, but it seems to repaint...
capissimo
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@Qubusu, it was supposed to be that way. If you want it to be non-repainting ple replace the line 'float dataset = close[barstate.isrealtime ? 1 : 0]' with 'float dataset = open'