STWP Market Compass

🧭 STWP Market Compass — Educational Framework

Author: simpletradewithpatience (STWP)
Markets: Equities, Indices, and Futures
Best Timeframes: 5-min to 1-hour for active observation | Higher timeframes for broader structure
Built With: Pine Script v5
A structured market-awareness dashboard designed to help traders understand the current market environment — not predict it.
Built under the Simple Trade With Patience (STWP) methodology, this framework encourages disciplined observation, contextual thinking, and clarity in reading price behavior.

📌 Overview
The STWP Market Compass is an educational tool that organizes multiple layers of market information into a clean, real-time dashboard.
Instead of generating buy/sell signals, it helps traders answer the most important question first:
👉 “What kind of market am I operating in right now?”
By combining trend structure, price location, volatility conditions, and momentum phase, the compass promotes thoughtful participation rather than reactive decision-making.
The goal is simple:
Better environment reading → Better trading behavior.





📊 What the Dashboard Helps You Understand
✅ Market Phase
Identifies whether conditions favor directional movement or rotational behavior.
✅ Trend Structure
Uses EMA alignment to highlight whether buyers or sellers are exerting greater control.
✅ Price Position
Shows where price is trading relative to recent value zones — helping traders avoid chasing extended moves.
✅ Nearby Reference Level
Automatically points to the closest prior-day high or low, encouraging respect for important reaction areas.
✅ Volatility Condition
Distinguishes between expanding and contracting ranges — a key factor in expectation setting.
✅ Structure Reference
Displays recent swing levels to improve awareness of potential support or resistance zones.
✅ Condition Alert
Highlights when price extends in a weak-trend environment — a scenario often associated with false moves or exhaustion.

💡 Educational Purpose
This framework is ideal for traders who want to:
• Develop patience before entering trades
• Improve timing by understanding market context
• Avoid overtrading in low-quality conditions
• Recognize when markets are stable vs. uncertain
• Build structured decision habits
It is intentionally designed to support independent thinking, not indicator dependency.


📆 Best Practices for Use
• Apply to liquid instruments for smoother behavior.
• Use intraday charts to study how environments shift during the session.
• Combine with price structure, demand–supply zones, or volume analysis for deeper insight.
• Treat the dashboard as context, not a trigger.
Strong traders read the environment first — and act second.

⚙️ Design Philosophy
The STWP Market Compass was built on a simple belief:
👉 Clarity reduces emotional decisions.
Every label is intentionally straightforward so that both developing and experienced traders can interpret conditions without unnecessary complexity.
This is not a shortcut tool.
It is a decision-support framework.
Observe first. Act with discipline.

⚠️ Important Notes
✅ Created purely for educational and informational purposes
✅ No automated signals or strategy logic included
✅ Does not provide entries, exits, or investment recommendations
✅ Encourages structured market study
Avoid relying on any single indicator in isolation.

⚠️ Disclaimer
This script is provided solely for educational purposes and does not constitute financial advice or a recommendation to buy or sell any financial instrument.
Trading involves substantial risk and may not be suitable for all investors. Always consult a SEBI-registered financial advisor or licensed professional before making trading decisions.
The author is not responsible for financial losses resulting from the use or interpretation of this tool.
By using this script, you acknowledge and accept these terms.

🤝 Final Note
Built with patience and structure by simpletradewithpatience (STWP) — for traders who believe that understanding the market is more important than chasing it.
Read the environment. Stay disciplined. Let patience guide execution.
📈 Trade Less. Understand More.