Price Imbalance Zones from Gaps Between Candle Ranges

Summary

This ProRealTime indicator marks candidate price imbalance zones by comparing candle ranges two bars apart. A support candidate is recorded when the high from two bars earlier is below the current low; a resistance candidate is recorded when the current high is below the earlier low. It stores each level and its bar, then draws a rectangle from near the originating bar through the latest bar or until price crosses the level. The described display uses distinct colors to differentiate zones and whether price has crossed them.

The method is a visual chart aid, not a complete trading strategy. The document provides code and an explanation of its conditions, but no backtest, market sample, entry or exit rules, or evidence that these zones predict reversals. Its support and resistance labels should therefore be treated as the indicator’s naming convention, and the colored regions as price-range references rather than validated buying or selling signals.

Key ideas

• A support zone is recorded when the high two bars earlier is below the current low.
• A resistance zone is recorded when the current high is below the low from two bars earlier.
• The indicator extends each zone until price crosses its recorded level or reaches the latest bar.
• The document offers no performance testing or rules for trading the displayed zones.

Tags

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