OPEN-SOURCE SCRIPT
First day candle high and low of month
Updated
This script is designed to mark the high and low levels of the first candle of each month on the chart. These levels are often considered significant support and resistance zones, as they can represent key liquidity points in the market.
The idea behind this tool is based on the observation that the low of the first monthly candle can act as a critical support level, especially during a bullish market trend. If the price breaks below this low in a bull market, it may indicate a potential manipulation or stop-loss hunting rather than a genuine shift in trend. Similarly, the high of the first monthly candle may serve as a key resistance level, particularly in consolidating or range-bound markets.
By dynamically plotting these levels, the script provides traders with valuable insights into potential liquidity zones and significant market reactions. It allows for customizable line colors and lengths, making it adaptable to various trading styles and preferences.
This tool is particularly useful for traders who wish to align their strategies with institutional market behaviors, as it highlights areas where liquidity is likely to be targeted. Use it as part of your broader analysis to identify potential trade setups, manage risk effectively, and understand market dynamics more comprehensively.
The idea behind this tool is based on the observation that the low of the first monthly candle can act as a critical support level, especially during a bullish market trend. If the price breaks below this low in a bull market, it may indicate a potential manipulation or stop-loss hunting rather than a genuine shift in trend. Similarly, the high of the first monthly candle may serve as a key resistance level, particularly in consolidating or range-bound markets.
By dynamically plotting these levels, the script provides traders with valuable insights into potential liquidity zones and significant market reactions. It allows for customizable line colors and lengths, making it adaptable to various trading styles and preferences.
This tool is particularly useful for traders who wish to align their strategies with institutional market behaviors, as it highlights areas where liquidity is likely to be targeted. Use it as part of your broader analysis to identify potential trade setups, manage risk effectively, and understand market dynamics more comprehensively.
Release Notes
This script is designed to mark the high and low levels of the first candle of each month on the chart. These levels are often considered significant support and resistance zones, as they can represent key liquidity points in the market.The idea behind this tool is based on the observation that the low of the first monthly candle can act as a critical support level, especially during a bullish market trend. If the price breaks below this low in a bull market, it may indicate a potential manipulation or stop-loss hunting rather than a genuine shift in trend. Similarly, the high of the first monthly candle may serve as a key resistance level, particularly in consolidating or range-bound markets.
By dynamically plotting these levels, the script provides traders with valuable insights into potential liquidity zones and significant market reactions. It allows for customizable line colors and lengths, making it adaptable to various trading styles and preferences.
This tool is particularly useful for traders who wish to align their strategies with institutional market behaviors, as it highlights areas where liquidity is likely to be targeted. Use it as part of your broader analysis to identify potential trade setups, manage risk effectively, and understand market dynamics more comprehensively.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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