ALERTA CHART / Indicators
Indicators
The most comprehensive guide to understanding Alerta Chart's professional tools. Learn the language of signals and follow institutional footprints.
Smart Money Concepts
Smart Money Concepts (SMC); tracks the footprints of institutional investors. • OB (Order Block): Institutional buy/sell zones. Green boxes are support, red boxes are resistance. • FVG (Fair Value Gap): 'Magnet' gaps that price tends to return to fill.
Detailed Insights
- OB (Order Block): 'Fortress' zones where institutional buy/sell orders are clustered. A strong reaction is expected at these boxes (Green: Buy, Red: Sell).
- FVG (Fair Value Gap): 'Magnet' gaps created after rapid market moves. Price inevitably returns to fill these imbalances.
Displacement Scanner
Displacement Scanner; catches sudden and powerful market explosions. • DISP Label: Signal indicating big players have entered and the trend is accelerating. • Triangle Markers: Points to the exact start and direction (Buy/Sell) of the move.
Volume Profile
Volume Profile; analyzes price interest in a vertical format. • POC (Yellow Line): The Point of Control where most trading occurred and price spent the most time. • Blue Bars: Show price levels where volume is concentrated (support/resistance).
Confluence Heatmap
Confluence Heatmap; the safest zones confirmed by multiple signals. • Glowing Areas: Where data like SMC, RSI, and Volatility converge at the same point. • Intensity: The brighter the color, the higher the probability of a reaction in that zone.
Detailed Insights
- Art of Confirmation: Instead of looking at a single indicator, target 'glowing' points where 3-4 different datasets converge.
- Heatmap: The more intense the color (closer to white), the more 'solid' that zone is as support or resistance.
- Usage: Instead of complex analysis, focus on these high-probability energy points automatically calculated by our system.
Volatility Pulse
Volatility Pulse; catches the first move that breaks the calm before a market storm. • White Dots (PULSE): Marks the exact moment price explodes from a tight range. • Signal: White spheres appearing on the chart alert you that a new trend has begun.
Bollinger Squeeze
Bollinger Squeeze; finds indecision zones where the market is coiled like a spring. • Blue Background: Indicates price is trapped in a box and a major breakout is imminent. • Logic: The longer the squeeze lasts, the more powerful the following move will be.
RSI Extremity
RSI Extremity Heatmap; highlights candles where price is either overheated or undervalued. • Red Glow: Indicates the market is overbought (overheated) and a sell-off may be near. • Green Glow: Indicates the market is oversold (cheap) and a reaction might occur.
Premium / Discount
Premium / Discount Zone; automatically draws the most profitable buy/sell areas. • Upper Red Zone (Premium): Represents where price is expensive, suitable for selling. • Lower Green Zone (Discount): Represents where price is cheap, suitable for buying. • White Line: The Equilibrium (balanced) price level.
Detailed Insights
- Premium/Discount (P/D): Splits a price range into two at the 50% level. The top half is 'Premium' (Expensive), the bottom half is 'Discount' (Cheap).
- Strategy: A rational investor never buys in the 'Premium' zone. Always waiting for a drop into the 'Discount' zone protects your balance.
- Equilibrium: The middle line of the range is where price is considered 'fair'.
Session & Liquidity
Session Liquidity Levels; marks key price levels that institutional players use as 'magnets'. • PDH/PDL: Previous Daily High and Low. Price often sweeps these levels before reversing. • PWH/PWL: Previous Weekly High and Low. Extremely powerful trend reversal and liquidity points. • Midpoints (0.5): The equilibrium point of the range.
ICT Killzones
ICT Killzones; highlights specific time windows with background boxes where volatility and institutional activity are highest. • Asian Range: The initial consolidation area that often sets the day's bias. • London/NY Open: The 'Killzone' hours where trends are often initiated or manipulation (Judas Swing) occurs.
Detailed Insights
- Time is Everything: The market doesn't move the same every hour. 'Killzone' hours are when the most money changes hands.
- Judas Swing (Deviations): At the NY open, there's often a 'fake' move in one direction before price turns to its real path. These boxes mark those times.
- Asian Range: This tight range formed overnight acts as a 'base' to determine the bias for the rest of the day.
Trend Strength
Trend Strength Heatmap; visualizes the current market direction and momentum as a background overlay. • Emerald Green: Very strong uptrend. Zones where buyers are in full control. • Rose Red: Very strong downtrend. Zones where sellers are in full control. • Neutral/Grey: Choppy market or indecision phase. Indicates the trend has not yet clarified. • Algorithm: Combines ADX, DI (Directional Index), and Momentum data to provide a 'professional' market outlook.
Detailed Insights
- Heatmap Logic: You can understand the market's 'mood' just by looking at the background color.
- Color Nuances: Emerald green shows high buying appetite, while Rose red shows aggressive selling pressure.
- Usage: Avoiding trades in grey zones and only looking for signals in the dominant trend direction (Green/Red) is a professional approach.
Liquidity Vacuum
Liquidity Vacuum & Velocity; highlights momentum zones where price moved extremely fast. • Glowing Candles (Aura): Represents liquidity gaps where price moved fast enough to create a 'vacuum'. • Logic: Points where large candle bodies and momentum converge. Price often returns to fill these gaps (magnet effect) later. • Colors: Creates a Teal/White glow for Bullish moves and a Pink/White glow for Bearish moves.
Detailed Insights
- Aura Effect: The glow around a candle means price has created a 'liquidity vacuum' in that area.
- Velocity Signal: These candles indicate speed and volume far beyond normal, leaving a gap (HV) that needs to be filled.
- Targeting: Remember that price will often want to retest these vacuum zones later; they make excellent take-profit or entry points.
Trend Ribbon
Trend Intelligence Ribbons; a professional trend-following tool composed of 8 different EMAs. • Green/Teal Ribbon: Represents a strong uptrend and buying interest. • Red/Rose Ribbon: Represents a strong downtrend and selling pressure. • Fanning out: Indicates momentum is accelerating; Narrowing: Indicates a trend shift or choppy market.
Supply & Demand
Supply & Demand Zones; identifies 'momentum' areas where institutional buyers and sellers moved the price rapidly. • Demand Zone (Green): Low areas where price rallied quickly; represents potential buying interest. • Supply Zone (Red): High areas where price dropped quickly; represents potential selling pressure. • Fresh (unmitigated) zones are areas where price is most likely to react upon its first return.
Detailed Insights
- Fresh Zone Logic: Following only 'Unmitigated' zones (those being tested for the first time) provides the highest success rate.
- Zone Color: Green zones are where institutional buyers are waiting, and red zones are where sellers are lurking.
- Usage: When price enters these boxes, you can look for confirmation (like a long wick) before making a move.
Institutional Traps
Institutional Traps; Detects candles with abnormally high volume to mark potential trap levels. • Glowing Line: An automatically anchored horizontal support from the cost basis of institutional players. • Signal: Catches areas where large players entered the market and potentially 'trapped' retail traders.
Detailed Insights
- Institutional Footprint: Catches the key levels where whales and market makers entered with massive volume.
- Invisible Support/Resistance: Draws hidden cost basis levels that are not obvious on the price chart but revealed by volume data.
- Strategy Usage: Glowing lines are turn around points that trap retail traders, making them excellent trade entry locations when price returns.
Swing Failure Pattern
SFP Wick Traps; Highlights areas where price swept the liquidity of previous critical high/lows and reversed. • Trap Zone (Box): Draws the area where the wick performed the liquidity hunt and where a potential reversal might start. • Highlighted Wick: Confirms that a strong Bull/Bear Trap has occurred.
Detailed Insights
- Liquidity Hunt Alert: Highlights the trap when price breaks a critical previous high or low and immediately reverses (Swing Failure).
- Visual Confirmation: Transparent boxes represent the trap zone, and glowing thick wicks represent the actual stop-hunt action.
- Strategy Usage: Designed to take trades in the opposite direction of trapped retail traders, using the wick as confirmation.
VWAP Deviations
VWAP Deviations & Elasticity Bands; calculates price detaching from the volume-weighted average and its potential for mean reversion. • Faint Bands: Shows standard deviation zones where price exhibits unusual movement. • Yellow Diamonds (♦️): Signals that momentum is exhausted, the 'elastic band' is overstretched, and price is highly likely to revert sharply to the core VWAP.
Detailed Insights
- Institutional Gravity: VWAP and standard deviation bands calculate how far price has deviated from the core volume-weighted average.
- Elastic Band Effect: When price moves outside the 3rd standard deviation, glowing 'Yellow Diamonds' light up. This shows the elastic band is overstretched and price will revert sharply.
- Strategy: When you see the yellow diamond signals, momentum is highly exhausted; it is a perfect opportunity to look for a mean reversion trade back to the core VWAP.
Wyckoff
Wyckoff Method (Institutional Accumulation); automatically detects the accumulation and distribution phases of major market players. • Phase Analysis (A-E): Visualizes the market stage (Preparation, Breakout, Trend) with professional color-coded boxes. • ATR Dynamic Thresholds: Signals are adaptively calculated based on current volatility (ATR), ensuring reliability across all timeframes. • Volume Confirmed Spring/UTAD: Confirms 'dry supply' in trap zones using volume data to pinpoint the safest entry points. • Backtest Panel: Real-time reporting of the strategy's success metrics (Win Rate, Profit Factor) in the top-left corner of the chart.
Detailed Insights
- Institutional Phase Analysis: Automatically visualizes whether the market is in an 'Accumulation' or 'Distribution' phase.
- Dynamic ATR Thresholds: Generates signals sensitive to current market volatility (ATR) rather than fixed percentages. Works with scientific accuracy regardless of price levels.
- Volume Confirmed Spring/UTAD: Protects you from 'trap' zones by confirming 'dry supply' (low volume) required for a valid Spring/UTAD move.
- Backtest & Signals: Instantly see the historical success rate of automated buy signals generated at Spring and LPS points for the specific pair.
RSI
Relative Strength Index (RSI); a momentum oscillator that measures the speed and change of price movements. Typically used to identify overbought and oversold regions.
MACD
MACD (Moving Average Convergence Divergence); a trend-following momentum indicator that shows the relationship between two moving averages. Tracks trend reversals and momentum shifts.
Bollinger Bands
Bollinger Bands; consists of a moving average and two standard deviation lines above and below it. Visualizes periods of increasing or decreasing volatility.
Stochastic
Stochastic Oscillator; a momentum indicator comparing a specific closing price to a range of its prices over a certain period of time. Used to detect turning points.
Parabolic SAR
Parabolic SAR (Stop and Reverse); a method used in price charts to determine the direction of the trend and mark potential trend reversal points.
Average True Range
Average True Range (ATR); measures the degree of price fluctuation (volatility) over a specific period. It does not show trend direction, only how active the market is.
Commodity Channel Index
Commodity Channel Index (CCI); a versatile indicator that measures an asset's price level relative to its average price level. Used to identify new trends and extreme levels.
EMA 50
50-Period Exponential Moving Average (EMA); used to determine short-to-medium term trend direction. It is more sensitive to recent price movements.
EMA 100
100-Period Exponential Moving Average (EMA); an important psychological and technical level that functions as medium-term trend support or resistance.
EMA 200
200-Period Exponential Moving Average (EMA); one of the most widely used indicators for determining the major direction of the long-term trend. Often seen as the 'Bull' or 'Bear' market boundary.
SMA 50
50-Period Simple Moving Average (SMA); a basic trend indicator formed by taking the arithmetic mean of the price over the last 50 candles.
SMA 100
100-Period Simple Moving Average (SMA); a standard benchmark used for medium-term trend following and identifying institutional buying/selling zones.
SMA 200
200-Period Simple Moving Average (SMA); a classic indicator considered one of the strongest long-term support and resistance levels in the market.
Pricing
The indicators and analyses presented here are not investment advice. Do not make your investment decisions based solely on this data.