"Market Order Bubbles" is a volume-based indicator that helps visualize the occurrences of increased aggressiveness in market buying/selling and can serve as a useful confluence for trading reversals or as a simple tool for observing real-time market dynamics.
I created Market Order Bubbles six months ago as an additional tool included in my Liquidation Levels script. Due to their popularity, I decided to publish them as a standalone indicator with some new features. The script is based on a calculation that uses volume data (imitation of CVD) and price action to estimate where there is a surge in the quantity and magnitude of market buy and sell orders. These occurrences are visualized with circles (bubbles) that appear above the bar (market buy orders) or below the bar (market sell orders). Most of the time, the approach to interpreting the bubbles is contrarian, meaning that the appearance of Market Buy Order Bubbles can serve as a confluence to look for shorts, and the appearance of Market Sell Order Bubbles can serve as a confluence to look for longs.
The concept behind taking a contrarian approach:
Market Buy Order Bubbles appear above the price and possibly signal the following: - Short positions being liquidated (exit short = buy order) - New traders entering late longs based on FOMO (enter long = buy order) - Smarter traders getting their limit sell orders filled by aggressive buyers/stopped out shorts ⇒ Possible reversal to the downside / short-term pullback / start of ranging price action (PA)
Market Sell Order Bubbles appear below the price and possibly signal the following: - Long positions being liquidated (exit long = sell order) - New traders entering late shorts based on FOMO (enter short = sell order) - Smarter traders getting their limit buy orders filled by aggressive sellers/stopped out longs ⇒ Possible reversal to the upside / short-term pullback / start of the ranging PA
These events are identified and filtered by EMA and STDEV-based "thresholds," which can be modified in the indicator settings.
1. If the buy/sell volume exceeds the first threshold, a Small Bubble is displayed. 2. If the buy/sell volume surpasses the second threshold, a Medium Bubble is displayed. 3. If the buy/sell volume exceeds the third threshold, a Large Bubble is displayed.
Increasing the multipliers effectively increases the threshold for a given bubble to appear, making the conditions for its occurrence more strict. Decreasing the multipliers effectively decreases the threshold for a given bubble to appear, making the conditions for its occurrence less strict.
Settings Overview "Bubble Position" - Choose whether the bubbles are displayed above/below the candle, at the candle high/low, or at the intrabar POC of the candle. "Strength Gradient Color" - This option adjusts the transparency of the bubble's color relative to the volume on that bar. "Threshold EMA Length" - Choose the length of the EMA used for determining the thresholds. "Threshold STDEV Length" - Choose the length of the ta.stdev() function used on the EMA. "Appearance Delay" - This input allows you to delay the appearance of the bubble for x number of bars. The default is 0. "Show POC" - Show/hide intrabar POCs displayed as "-". "Timeframe-Adjusted Settings" - Different timeframes might require different parameters. In this section, you can set custom parameters (Lengths and Multipliers) for four different timeframes, and the script will automatically switch to those settings as you browse through different timeframes.
Hello, great indicator - for Futures it could be very powerful, thank you for separating from liq levels. I have a request please if possible - in order to backtest could you add +1 and -1 no printing signal to enable external backtesters like Zendog DCA? It would be like this for example - plot(mktup ? 1: mktdown ? -1 : 0,"MarketOrderBubbles_Leviathan", offset=-2,display=display.none) or please indicate any way to be able backtest your work.
Litruxy
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thanks for indicator but in stock market/nq/es everywhere is bubble
saadjawed1
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Would love to get my hands on the script as well to customize it to my needs, any chance we can get our hands on it?
stoja
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Can you make POC more visible, you can barely see it.
TongTongTen
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Thanks a lot. Can you add a filter to not to display the bubbles when there are no volumes such as SPX?
marccollins222
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Thanks for this interesting concept indicator! I am not seeing any candle-specific POC line when I activate that option (which is very useful and would love to see!). Is it working for everyone else? Is there a screen shot with it showing?
mycryptobw
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thanks for sharing this indicator. Is there a way to make the POC bigger so it is more visible and extend it until it gets hit like an NPOC?
ecowolfrb
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Hello and thank you for your work. I'd like to run some testing here, as others have also asked, could I get the script?