Comparing Price Direction Across Multiple Timeframes

Summary

The Confluence Detector plots the current timeframe’s closing prices alongside deviations derived from two user-selected, lower timeframes. Its premise is that closer lines indicate more agreement in price direction across the selected periods, while widening gaps indicate disagreement. The author presents line expansion as a possible reason to avoid trading and contraction as a condition that may be safer for trading.

The example compares a 30-minute chart with 15-minute and 5-minute periods. The shorter-period bars complete within each longer-period bar, and their closes update the deviation plots. The description says current, unfinished bars are included, while historical plotting relies on OHLC data and final bar closes rather than tick history. This is an experimental visual indicator: the page gives a construction and interpretation, but no tested performance, precise signal rules, or evidence that confluence improves trading results.

Key ideas

• The indicator compares closing-price direction on the current timeframe with two shorter timeframes.
• Widening plot separation represents disagreement, while narrowing separation represents greater agreement.
• The described example requires the selected comparison periods to be shorter than the chart period.
• Historical plots use bar OHLC information rather than a full record of historical ticks.
• The author characterizes the indicator as experimental and provides no performance evaluation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.