[GrandAlgo] Candle Trap Zones

The Candle Trap Zones indicator identifies areas where price becomes "trapped" within a defined range and refines these zones using a proprietary algorithm. This unique approach ensures that only the most relevant zones, based on both proximity and price behavior, are highlighted for traders. By integrating advanced features like Fibonacci Cloud visualization and customizable detection parameters, the indicator offers tools to support detailed and adaptable price action analysis.


How It Works:
The Candle Trap Zones indicator evaluates historical price data to identify ranges where price has been trapped. Zones are filtered using proximity detection to prevent overlaps and maintain clarity. Additionally:

• The strength parameter adjusts the sensitivity of zone identification, while the trap detection range determines how far back the algorithm evaluates price data.
  
• The Fibonacci Cloud acts as an extension of the identified zones, providing additional precision by highlighting key levels just outside the zones
  
• The auto-adjustment feature dynamically modifies zones if new zones are formed in close proximity, ensuring the chart reflects the most relevant areas.
  
• The zone extension feature expands zones when price re-enters, allowing traders to track extended interactions with critical levels.
  

Key Features:

1. Proximity-Based Trap Zone Detection
   
   Dynamically identifies and refines trap zones while avoiding overlaps to keep charts clean.
   
   
2. Fibonacci Cloud Integration:
   
   Extends trap zones with Fibonacci-based levels, providing actionable reference points for potential reactions.
   
   
3. Customizable Detection Parameters:
   
   Fine-tune zone detection with adjustable strength and range settings to suit various trading styles.
   
   
4. Real-Time Alerts:
   
   Sends notifications when price enters, exits, or re-tests a trap zone, enabling timely trading decisions.
   
   
5. Dynamic Zone Updates:
   
   Continuously recalculates zones as new data becomes available, reflecting current market conditions.
   
   
6. Clear and Intuitive Visuals:
   
   Trap zones and Fibonacci clouds are highlighted in distinct colors for seamless chart analysis.
   

Use Cases:

• Identify areas where price consolidates or liquidity builds up.
  
• Monitor zones for potential breakouts or reversals.
  
• Fibonacci Clouds serve as additional reference points for anticipating market reactions and refining trade setups
  
• Trap zones may highlight areas of accumulation or distribution where traders can anticipate price reversals or breakouts.
  
• Useful for identifying liquidity zones in range-bound markets or pinpointing key levels for breakout trades in trending markets.
  
• Adaptable for use in Forex, crypto, stocks, and other trading markets.
  

Disclaimer:
This indicator is a technical analysis tool designed to assist traders by providing insights into market conditions. It does not guarantee future price movements or trading outcomes and should not be relied upon as a sole decision-making tool. The effectiveness of this indicator depends on its application, which requires your trading knowledge, experience, and judgment.

Trading involves significant financial risk, including the potential loss of capital. Past performance of any tool or indicator does not guarantee future results. This script is intended for educational and informational purposes only and does not constitute financial or investment advice. Users are strongly encouraged to perform their own analysis and consult with a qualified financial professional before making trading decisions.