Price Compass
- Indicators
- Thiago Pereira Pinho
- Version: 1.17
- Activations: 20
The Price Compass is a powerful technical analysis tool designed to act as your trend navigation system in the financial markets.
It evaluates the average directional pressure of the market, effectively filtering short-term noise to identify the dominant movement with clarity. The indicator quantifies how far the current price is from its "central average," providing a precise signal of market orientation (Bullish, Bearish, or Neutral).
Interpretation (The Three Compass States)
The indicator is plotted in a separate sub-window, centered on the Zero Line, and uses three distinct colors to signal the current market state:
| Compass State | Location | Signal | Interpretation |
| North (Bullish) | Above the Zero Line | Positive | Indicates the market is under strong buying pressure. Suggests the start or continuation of an Uptrend. |
| South (Bearish) | Below the Zero Line | Negative | Indicates the market is under strong selling pressure. Suggests the start or continuation of a Downtrend. |
| East-West (Neutral) | Near the Zero Line | Neutral | Indicates consolidation or indecision. The price lacks strong directional force, suggesting a sideways movement or a potential reversal in the making. |
Key Features
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Clear Guidance: Uses a color-coded system to instantly identify the dominant direction (North, South, Neutral).
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Noise Filter: The user can set a percentage threshold ( NeutralThreshold ) to ensure that only significant deviations are classified as an active trend.
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Robust Analysis: Consolidates complex information from multiple periods into a single, reliable signal line.
