Like the nature, markets don't like the void, and this is something we can take advantage of by trading gaps on some markets. This technique is well known, so I wanted to write a tiny script based on this strategy to get a bit more comfortable with it. IMPORTANT: Default parameters wont give you good trades on every markets, you need to modify these parameters...
Basic script that sees where absorption maybe occurring by looking at the volume of the last 4 candles relative to the distance of their range.
Basic candle patterns marker marks: - Doji stars - Doji graves - Doji dragonflies - Hammers - Reversed hammers - Hanging mans - Falling stars - Absorption up/down - Tweezers up/down - Three inside ups/downs
This script is designed to alert one to the possible presence of hidden walls, or visible, that are absorbing a lot of volume without letting price change. Therefore acting as Support and Resistance.