Timeframe Continuity Bars

Timeframe Continuity Bars is a script that is extremely simple for good reason [I am looking at you TradingView]

So please, do not remove this post because it seems 'simple'

Now that's over with. Lets dive in to understand what timeframe continuity IS and what this indicator does.

Timeframe continuity is defined by 4 or more timeframes and it is the relationship of the last price traded to those 4 opening prices.Standard timeframe continuity would be using the M,W,D,60min timeframes.

The reason we use MTF analysis is because of the truth of what price is and how it works.

Price movement is SOLELY caused due to aggressive buying / selling. Some may attempt to refute this however at the end of the day. If the price is at 100.00 it is because a buyer is willing to buy there and a seller is willing to sell there. If those market participants did not want to buy or sell at 100.00 price would go up or down to meet the more aggressive participant.

So what does this look like you may ask...

If an aggressive buyer takes the offer [buying at the offer / ask] we will see prices go up if they were willing to pay more than the last guy who took the offer.

So price may go from 100.00 to 100.01 because you decided to invest in that stock that day at that time with a market order [aggressive order-type]

This same thing occurs when every other institution creates, adds, reduces, or exits a position. They have to buy or sell and they have to either do it aggressively or do it passively by sitting on the bid / ask and waiting.

So since this is true, we know that the relationship to the opening price is extremely important. This is because if price is above it's open that means buyers were willing to take the offer and buy at higher prices. If price is below it's open it means that sellers were willing to sell at the bid and they sold at lower prices.

So any candlestick chart is simply an aggregation of this aggressive buying/selling that is taking place at all times.

By using the timeframe continuity bars indicator we can measure the distance from the current open across 4 or more timeframes.

By doing this we can identify monthly participation groups, weekly participation groups, daily participation groups, and 60min participation groups.

When all those groups align green or red this is considered full timeframe continuity. Where the monthly weekly daily 60min groups are all taking the offer and buying, or all selling at the bid!

When this aligns this is when price is for CERTAIN going in one direction.

However, It is subject to change every 60 minutes as the 60min determines if those monthly weekly daily buyers are present RIGHT NOW.

So if the 60min changes we go into direct conflict [profit taking] against the month/week/day groups.

If we see the 60min and day align we go into direct conflict [active selling] against the month/week [we have no evidence of buyers when this is true]

if the 60min day and week are red we over-take the monthly group for control. At the time of the week day and 60 being red we have ZERO evidence of the previous monthly buyer/seller that was present.

Now that you understand a little bit about continuity.. Check it out on the chart!

P.S Here is some tips
1) it is not about just all timeframes aligning, we want to see long green / red bars!
2) The opens reset on a cyclical basis. Each day, each week, each month... When the new timeframes open we will see timeframes have the SAME open. When the opens are the same price we have LESS evidence versus having all opens seperate.
3) Investors can use the Y Q M W as their 4 timeframes to see when institutional buying is occurring [go do a case study on GLD and SLV weekly timeframe with these settings]
4) You need to add 4 separate indicators and change the timeframes. It is ideal to then save this layout!
5) The best way to do price analysis is using #TheStrat across all 4 timeframes instead of one timeframe with this indicator. This is soley a tool we use to show changing of control between participation groups!