The essence of the indicator is to search for demand and supply zones. After the zone is formed, the price is likely to break off this zone. See the video below for more clarity.
The main advantage of this indicator is that after price formation we may talk of 95% price breakoff. We can not guarantee that it will be huge, but it will happen for sure. The second and following breakoff can also happen, but less probably.
We should also bear in mind that there is no point in trading if two opposite zones are located too close to each other (the price is between them).
The indicator is not redrawing. After the zone is drawn it will not disappear. I use this indicator over one year and recommend H1 timeframe (the zone does not mean an entry condition, this is a sign of probable breakoff. Look for entries inside or close to the zone).
The indicator settings:
BackLimit = 20000: number of bars from quotes history for searching zones
show_breached_zones: show/hide broken zones.
Priceout = 1: ratio for finding zones. Before looking for the zone the price should move from a local high/low candle at the distance which is “n” times as much as the local candle. PriceOut setting is responsible for that).
Spacezone - Zones with an indent in points . For instance, Spacezone = 20 points, Priceout = 2, then if the local candle is equal to 30 points, the zone is applied after the price passes 60 points. And after observance of PriceOut condition the zone with an indent is applied!
Minwidth: disabled if 0. Minimum zone width in points. If it exceeds 0, we apply the zone according to Defaultwidth. It has been developed specifically for small local candles. For instance: Minwidth = 20 points, which means that a local candle equal to 20 points or less will be applied according to Defaultwidth, for example, 40 points.
Defaultwidth: default zone width in points (we define zone width which is better for us). It works if Minwidth exceeds 0
This setting is also used for wide zones if Maxwidth exceeds 0.
Maxwidth: disabled if 0. Maximum zone width in points.
For instance: Maxwidth=100 points, and the local candle on the current timeframe (H1) is equal to or exceeds 100 points. So we apply what we have in Defaultwidth.
Max_width_pecentage: percentage the zone will be reduced by if Maxwidth parameter is exceeded.