[TTI] Jon Tr3ndy Edges

📜 ––––HISTORY & CREDITS––––
Jon's Tr3ndy Edges was birthed from extensive research and studying the methodology of Jonathan McKeever, aka "Trendy Jon", an options trader from the Simpler community. The originality of the indicator lies in its unique way of identifying potential supply and demand zones on the price char. Its primary objective is to showcase potential market edges (levels) based on the principle of historical price levels and fibonacci.


🦄–––UNIQUENESS–––
What sets The "Edges" apart from other similar tools is its underlying logic and the way it processes market data. While many scripts might plot the high and low of different timeframes timeframes or use a Fibonacci multiple, "Edges" combines multi time frame analytical techniques to dynamically identify significant market zones. The "Edges" employs multi-timeframe analytics, analyzing Yearly, Monthly, Weekly, and Daily data to dynamically identify significant market zones. It uses a non-standard percentage factor of 0.887 for its calculations to pinpoint statistically significant levels. Trend is determined based on the location of the price to these Edge Levels. For example, if the close price is greater than or equal to the upper edge, it is considered extremely bullish (more on that below). This intricate blend of features ensures that "Edges" offers something genuinely unique to the TradingView community.

Through Fourier Transform techniques, our indicator filters out market noise to focus on the dominant trend, providing a clearer perspective on market direction. The technique involves collecting price data (OHLC - Open, High, Low, Close) over a certain time period, we then use the Fourier Transform to convert this time-domain data into frequency-domain data. This will result in a spectrum of frequencies that make up the original signal. By identifying dominant frequencies or cycles that stand out from the rest. These frequencies often correspond to the most significant trends in the price data. We then use the identified dominant frequencies to reconstruct the signal, effectively filtering out the less significant frequencies or 'noise'. Finally we apply inverse Fourier Transform to convert the filtered frequency-domain data back into the time domain. The result is a 'smoother' signal that represents the dominant trend.


🛠️ ––––WHAT IT DOES––––
👉The Inputs
User-friendly Inputs: The indicator is equipped with multiple inputs for the users, such as:
• Enabling or disabling Edges, Daily, and Targets
• Selection between NONE, LINES, and ARROWS for Accel/Decel
• Enabling cloud display
• Positioning for Banner labels on the chart

👉The Edges
Yearly, Monthly, Weekly, and Daily Edges: This is the crux of the indicator. While many scripts might plot highs and lows of timeframes, the "Tr3ndy Edges" refines this by adding a layer of Fibonacci-based calculations. It calculates the relative position of the current price to historical highs and lows using statistical Fibonacci multiples. These calculations are not mere plots but are a methodical effort to pinpoint levels that have statistical significance in the market.
These edges serve as potential support and resistance levels that are categorised as:
• Yearly - High, Mid, and Low - blue
• Monthly High, Mid, and Low - purple
• Weekly - High, Mid, and Low - yellow
• Daily - High, Mid, and Low - orange

👉The Clouds
Clouds - These are fills around the edges that provide potential 'safe zones' between levels. The clouds are not merely aesthetic but are calculated based on the edge levels with a statistical approach to ascertain after which level the zone has been breached. This follows the general logic that, in trading many time price respects Zones rather than an absolute number.

👉Accel/Decel Arrows
Accel/Decel Arrows: Beyond being just visual aids, these arrows (or dots, depending on user input) are calculated cues hinting at potential acceleration or deceleration in the market's trend. This feature ensures that traders can anticipate momentum shifts as they materialize, and it's based on the relative positioning of current prices to the computed edges.

👉Targets
Targets: The indicator provides potential target levels based on historical Edge calculations, assisting users in strategising their entry and exit points. These targets are derived from a combination of Fibonacci retracements and historical price action, ensuring they are grounded in both mathematical rigor and real-world market movements.

👉Banner (Labels)
This feature offers a comprehensive overview of the trend condition on different timeframes, ensuring that traders don't miss the bigger picture. Multi-timeframe analysis is a high probability approach to make sure that traders are on the right side of the market. It uses conditions based on the relative position of the closing price to the computed edges, offering insights like "EXT BULLISH" or "EXT BEARISH" that guide traders on prevailing market sentiments.

Customizability: Users can customize the appearance, including edge colors, for each timeframe, allowing for a personalized user experience.

💡 ––––HOW TO USE IT–––
• Install the indicator on the chart and add it to your main trading timeframe.
• Enable the required zones; these can be customized based on your preference.
• The Banner offers a snapshot of prevailing market conditions. Ensure you analyze this before making trading decisions.
• Look for confluence (overlapping) of levels to determine possibilities of price pauses. This feature is instrumental in predicting potential market pullbacks or continuations.
• Incorporate the Tr3ndy Edges with other trusted trading tools in your toolkit for a holistic trading strategy.

REMEMBER, ALL TRADING INCLUDES RISK. NEVER RELY SOLELY ON A SINGLE INDICATOR. INCORPORATE IT INTO YOUR BROADER TRADING METHODOLOGY AS A COMPLEMENTING SOURCE OF INFORMATION.