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Screener | Fractalyst

What’s the purpose of this indicator?

This indicator is part of the Optirange suite, which analyzes all timeframes using a mechanical top-down approach to determine the overall market bias. It helps you identify the specific timeframes and exact levels for positioning in longs, shorts, or guiding you on whether to stay away from trading a particular market condition.

The purpose of the Screener indicator is to track the contextual bias of multiple markets simultaneously on the charts without the need to switch between pairs. This allows traders to monitor various assets in real-time, enhancing decision-making efficiency and identifying potential trading opportunities more effectively.
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How does this indicator identify the overall market bias?

This indicator employs a systematic top-down approach, analyzing market structure, fractal blocks, and their mitigations from the 12M timeframe down to the 1D timeframe to uncover the story behind the market. This method helps identify the overall market bias, whether it’s bullish, bearish, or in consolidating conditions.

Below is a flowchart that illustrates the calculation behind the market context identification, demonstrating the systematic approach:

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According to the above trade plan, why do we only look for mitigations within Fractal Blocks of X1/X2?

In this context, "X" stands for a break in the market's structure, and the numbers (1 and 2) indicate the sequence of these breaks within the same trend direction, either up or down.

We focus on mitigations within Fractal Blocks during the X1/X2 stages because these points mark the early phase (X1) and the continuation (X2) of a trend. By doing so, we align our trades with the market's main direction and avoid getting stopped out in the middle of trends.

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How does this indicator identify ranges in a mechanical way?

Since the indicator is part of the Optirange suite, it follows the exact rules that Optirange utilizes to identify breaks of market structures in a mechanical manner.

Let’s take a closer look at how the ranges are calculated:

1- First, we need to understand the importance of following a set of mechanical rules in identifying market structure:

The image above illustrates the difference between a subjective and a mechanical approach to analyzing market structure. The subjective method often leads to uncertainty, where traders might struggle to pinpoint exact breaks in structure, resulting in inconsistent decision-making. Questions like “Is this a break?” or “Maybe this one...?” reflect the ambiguity of manual interpretation, which can cause confusion and errors in trading.

On the other hand, the mechanical approach depicted on the right side of the image follows a clear, rule-based method to define breaks in market structure. This systematic approach eliminates guesswork by providing precise criteria for identifying structural changes, such as marking structural invalidation levels where market bias shifts from bullish to bearish or vice versa. The mechanical method not only offers consistency but also integrates statistical probabilities, enhancing the trader's ability to make data-driven decisions.

By adhering to these mechanical rules, the Screener indicator ensures that ranges are identified consistently, allowing traders to rely on objective analysis rather than subjective interpretation. This approach is crucial for accurately defining market structures and making informed trading decisions.

2- Now let's take a look at a practical example of how the indicator utilizes Pivot points with a period of 2 to identify ranges:

In this image, we see a Bearish Scenario on the left and a Bullish Scenario on the right. The indicator starts by identifying the first significant swing on the chart. It then validates this swing by checking if there is a preceding swing high (for a bearish scenario) or swing low (for a bullish scenario). Once validated, the indicator confirms a break of structure when price closes below or above these points, respectively.

For instance, in the Bearish Scenario:

The first significant swing is identified.
The script checks for a preceding swing high before confirming any structural break.
A candle closure below the swing low confirms the first bearish break of structure.
This results in a confirmed market bias towards bearishness, with structural liquidity levels indicated for potential price targets.
In the Bullish Scenario:

The process is mirrored, identifying the first swing low and validating it with a preceding swing low.
A closure above this swing confirms the bullish break of structure.
This leads to a market bias towards bullishness, with invalidation levels to watch if the trend shifts.

This practical example demonstrates how the indicator systematically identifies market ranges, ensuring that traders can make informed decisions based on clear, rule-based criteria.
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How does this indicator identify ranges in a mechanical way, What are the underlying calculations?
Fractal blocks refer to the most extreme swing candle within the latest break. They can serve as significant levels for price rejection and may guide movements toward the next break, often in confluence with topdown analysis for added confirmation.

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What are mitigations, What are the underlying calculations?
Mitigations refer to specific price action occurrences identified by the script:

1- When the price reaches the most recent fractal block and confirms a swing candle, the script automatically draws a line from the swing to the fractal block bar and labels it with a checkmark.
2- If the price wicks through the invalidation level and then retraces back to the fractal block while forming a swing candle, the script labels this as a double mitigation on the chart.

This level will serve as the next potential invalidation level if a break occurs in the same direction.

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What does the right table display?

The table located at the right of your chart displays five colored symbols that represent the contextual market bias:

Green: The market is in a bullish condition.
Red: The market is in a bearish condition.
White: The market condition is uncertain, and it is advisable to stay away from trading.

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What does the bottom table display?

The bottom table can be turned on in the Optirange indicator and serves multiple purposes:

Range Counts and Mitigations: It shows the range counts and their mitigations across multiple timeframes, providing a comprehensive view of market dynamics.

Hourly Timeframe Probabilities: The bottom row of the bias table displays the probabilities for various hourly timeframes, helping to identify potential entry levels based on the multi-timeframe bias determined by the Screener.

In a bullish market context, you should look for long positions by focusing on hourly timeframes where buy-side probability exceeds 50%.

In a bearish market context, you should look for short positions by focusing on hourly timeframes where the sell-side probability exceeds 50%.

When the symbol is white within the Screener table, it signals that the market bias is unclear, and it's recommended to stay away from trading in such conditions.

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How the range probabilities are calculated?
Each break of market structure, denoted as X, is assigned a unique ID, starting from X1 for the first break, X2 for the second, and so on.

The probabilities are calculated based on breaks holding, meaning price closing through the liquidity level, rather than invalidation. This probability is then divided by the total count of similar numeric breaks.

For example, if 75 out of 100 bullish X1s become X2, then the probability of X1 becoming X2 on your charts will be displayed as 75% in the following format: ⬆ 75%

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What does the top table display?

The top table on the charts displays the current market context, offering insights into the underlying bias. It highlights the high-timeframe (HTF) bias and guides you on which timeframes you should use to enter long or short positions, based on the probability of success.

Additionally, when the market bias is unclear, the table clearly signals that it's best to avoid trading that specific market until the context or market story becomes clearer. This helps traders make informed decisions and avoid uncertain market conditions.

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How does the Screener indicator identify the market bias/context/story ?

- Market Structure: The Optirange indicator analyzes market structure across multiple timeframes, from a top-down perspective, including 12M, 6M, 3M, 1M, 2W, 1W, 3D, and 1D.

- Fractal Blocks: Once the market structure or current range is identified, the indicator automatically identifies the last push before the break and draws it as a box. These zones acts as a key area where the price often rejects from.

- Mitigations: After identifying the Fractal Block, the indicator checks for price mitigation or rejection within this zone. If mitigation occurs, meaning the price has reacted or rejected from the Fractal Block, the indicator draws a checkmark from the deepest candle within the Fractal Block to the initial candle that has created the zone.

- Bias Table: After identifying the three key elements—market structure, Fractal Blocks, and price mitigations—the indicator compiles this information into a multi-timeframe table. This table provides a comprehensive top-down perspective, showing what is happening from a structural standpoint across all timeframes. The Bias Table presents raw data, including identified Fractal Blocks and mitigations, to help traders understand the overall market trend. This data is crucial for the screener, which uses it to determine the current market bias based on a top-down analysis.

- Screener: Once all higher timeframes (HTF) and lower timeframes (LTF) are calculated using the indicator, it follows the exact rules outlined in the flowchart to determine the market bias. This systematic approach not only helps identify the current market trend but also suggests the exact timeframes to use for finding entry, particularly on hourly timeframes.

Example:

12M Timeframe:

6M Timeframe :

3M Timeframe :

1M Timeframe :

2W Timeframe :

1W Timeframe :

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User-input settings and customizations

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