Double Purge Theory (DPT)

26 Nov 2024

The purpose of this script is to identify the Double Purge Theory-MMXM i.e. the run on liquidity on both the sell-side and the buy-side liquidity.

The simple use case behind this script is to provide additional entry confluence for your trade setups and more efficient stop loss placement on any given timeframe.

DPT in itself is a price signature that generally occurs before price makes impulsive move in the direction of the higher time frame narrative. It is not to be used as a standalone indicator for building narrative/framing bias.

How to use this script ?
1) Wait for the indicator to display the BLUE CANDLE highlight (DPT candle) that indicates the double purge has occurred. [the color is set to blue by default , you can change it by going into the settings tab]
2) The DPT should occur at/after price has tapped into a key level and is within the ICT killzones.
3) Position to frame your trade setup once you get a candle with a body close below / above the DPT candle , depending on your bias and stop loss placement at DPT candle high/low or after the body closure as mentioned in step 2.

For example :

https://www.tradingview.com/x/mqPFuDQ9/

https://www.tradingview.com/x/GqMZfv7O/

21 Feb

Catatan Rilis

What is new in DPT V2 update :

1) Added alerts for DPT, now you can set alerts to go off whenever DPT occurs :
Go to TradingView and open your chart.
Click on the "Alerts" icon (🔔) in the top panel.
Click "Create Alert".
In the Condition dropdown, select the DPT indicator.
Choose "Any alert function call".
Select alert frequency (e.g., once per bar).
Set your preferred notification method (popup, email, webhook, etc.).
Click Create.

2) Bias selection :
This will let users select the sweep they want to filter , if a user selects bullish bias , only bullish sweeps will be shown and if user selects bearish bias then, only bearish sweep shall be shown.
You still have the option to view both.