HIGH VALUE CONSOLIDATION ZONES SCANNER

Intelligent Consolidation Detection with Heatmap Visualization

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Find high-probability consolidation zones. See where price actually traded.

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WHAT THIS INDICATOR DOES

Most consolidation scanners simply draw boxes around price ranges. This indicator goes further by analyzing the quality of each touch — distinguishing between body-in-zone (strong participation) and wick-only (weak participation) touches.

The result is a heatmap that shows you exactly where price has spent the most time within each zone, helping you identify the most reliable levels for entries, exits, and stop placement.

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CORE LOGIC AND CALCULATION

The indicator scans recent price action for overlapping candle ranges. When a sufficient number of candles overlap consistently, a consolidation zone is detected. The minimum consecutive candles required is configurable, as is the maximum number of dissenting candles allowed within the sequence.

For each zone, the indicator tracks how many candles have their body inside the zone versus how many only touch the zone with their wicks. Body-in-zone candles indicate strong participation, while wick-only candles indicate weaker interest. This distinction forms the basis of the strength score.

A dynamic heatmap is built by analyzing the distribution of candle activity within each zone. Price levels with higher activity are shown in warmer colors (red/orange), while lower activity levels are shown in cooler colors (blue). This provides an immediate visual of where price has actually traded.

Multiple zones can be merged if they overlap in price and are close in time, reducing chart clutter and creating broader, more meaningful zones.

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KEY FEATURES

- AUTOMATIC CONSOLIDATION DETECTION: Identifies zones where candles consistently overlap, with configurable minimum consecutive candles and dissent tolerance.

- HEATMAP VISUALIZATION: Shows activity density within each zone, with warmer colors indicating higher candle activity.

- BODY VS WICK SCORING: Distinguishes strong touches (body in zone) from weak touches (wick only), providing a strength score for each zone.

- MERGING LOGIC: Adjacent zones that overlap in price and are close in time are merged into broader, more meaningful zones.

- ZONE RE-ENTRY ALERTS: Optional alerts when price re-enters a previously detected zone, with configurable cooldown.

- AGE FADING: Zones gradually fade as they age, keeping focus on recent, relevant areas.

- CONFIGURABLE LOOKBACK: Choose between bar-based or hour-based lookback periods.

- STRENGTH FILTERING: Filter out weak zones based on minimum strength score.

- CUSTOMIZABLE VISUALS: Zone color, fill opacity, border thickness, label position, and extension right bars.

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PARAMETER GUIDE

SETTINGS

Minimum Consecutive Candles: The minimum number of candles that must overlap consistently to form a zone. Higher values produce larger, more significant zones. Lower values produce smaller zones. Default is 6.

Max Dissenting Candles: The maximum number of non-overlapping candles allowed within the sequence. A value of 0 requires perfect consecutive overlap. Higher values allow some gaps. Default is 1.

Overlap Tolerance (Pips): The tolerance in pips for considering a candle as overlapping the zone. Default is 3.0. Increase this for wider zones on volatile pairs. Decrease for tighter zones.

Lookback Mode: Choose between Bars and Hours for the lookback period. Bars mode uses a fixed number of candles. Hours mode calculates the number of candles based on the chart timeframe.

Lookback Period (Bars): The number of bars to scan for zones. Default is 100. Increase for longer-term zones on higher timeframes. Decrease for focus on recent activity on lower timeframes.

Lookback Hours: The number of hours to scan for zones. Default is 24. Use with Hours mode.

Merge Adjacent Zones: When enabled, zones that overlap in price and are close in time are merged. Default is true.

Merge Bar Proximity: The maximum number of bars between zones to consider them for merging. Default is 3.

Merge Pip Proximity: The maximum price distance in pips to consider zones for merging. Default is 3.0.

Minimum Zone Width (Pips): The minimum width a zone must have to be displayed. Default is 0.1. Increase to filter out extremely narrow zones.

Max Zone Age (Bars): The maximum age of a zone in bars. Zones older than this are removed. Default is 0 (off).

HEATMAP

Heatmap Style: Choose between Off, MultiColor, or SingleColor. MultiColor uses the full spectrum from blue to red. SingleColor uses variations of the selected zone color.

Min Band Width (Pips): The minimum width of individual heatmap bands. Default is 0.1.

Min Heatmap Candle Count: The minimum number of candles that must overlap a band for it to be displayed. Default is 4. Increase to show only the most active bands.

STRENGTH SCORING

Body Weight: The weight assigned to body-in-zone candles in the strength score. Default is 2.0. Higher values prioritize candles with body inside the zone.

Wick Weight: The weight assigned to wick-only candles in the strength score. Default is 1.0. Lower values reduce the importance of wick-only touches.

Minimum Strength Score: The minimum strength score required for a zone to be displayed. Default is 0 (off). Increase to filter out weak zones.

VISUALS

Fill Opacity Percent: The opacity of the zone fill. Default is 50 percent.

Color Intensity Percent: The intensity of the zone colors. Default is 120 percent.

Enable Age Fading: When enabled, zones fade as they age. Default is false.

Show Core Border: When enabled, a border is drawn around the zone. Default is true.

Border Thickness: The thickness of the zone border. Default is 1.

Zone Color: The color used for zones when heatmap is off or in SingleColor mode. Default is Gold.

Show Label: When enabled, a label is shown on each zone. Default is false.

Show Strength In Label: When enabled, the strength score is shown in the label. Default is false.

Label Position: Position of the label on the zone: Top, Center, or Bottom. Default is Center.

Label Color: The color of the zone label. Default is White.

Extend Right Bars: The number of bars to extend the zone to the right. Default is 0.

ALERTS

Alert on Zone Re-Entry: When enabled, alerts are triggered when price re-enters a zone. Default is false.

Alert Cooldown (Bars): The minimum number of bars between alerts for the same zone. Default is 5.

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USE CASES

- Identify consolidation zones for breakout or mean-reversion strategies

- Use body-in-zone vs wick-only scoring to assess zone quality

- Heatmap reveals the most active price levels within each zone

- Zone re-entry alerts capture retests of key levels

- Use with trend indicators to filter zones by market direction

- Place stops above or below high-quality consolidation zones

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RECOMMENDED WORKFLOW

Step 1: Attach the indicator to your chart with default settings.

Step 2: Identify zones with high strength scores and high body-in-zone ratios.

Step 3: Examine the heatmap to see where price activity is concentrated.

Step 4: Use zones as potential support/resistance levels for entries and exits.

Step 5: Enable alerts for zone re-entry to catch retests.

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PRACTICAL EXAMPLE

On a EURUSD H1 chart, the indicator detects a consolidation zone between 1.0850 and 1.0875 with 10 consecutive candles. The zone has 8 body-in-zone candles and 2 wick-only candles, giving a strength score of 18 (8*2 + 2*1).

The heatmap shows concentrated activity between 1.0860 and 1.0870 (red band), indicating where price has spent the most time. This becomes your focus area for entries.

When price breaks above the zone and later retests it, the re-entry alert triggers, providing a potential second-entry opportunity.

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TECHNICAL NOTES

- Overlay indicator (draws on price chart)

- Works on any timeframe and symbol

- Configurable lookback (bars or hours)

- No repainting; calculations are historical

- Optimized for performance

- Compatible with cTrader

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SUPPORT

Lifetime updates included.

FOR MORE INFORMATION - Click Developer's Profile below.