Futures Settlement [NeoButane]

How it works

The settlement price script calculates and plots horizontal lines representing daily, weekly, and monthly settlement prices for futures contracts. It uses the last day's settlement price as a key reference point, with futures contracts having specific settlement times that differ from standard market closes.

For non-futures symbols, the script defaults to using the price at the last second before daily, weekly, or monthly close. The script leverages TradingView's built-in settlement price functionality, ensuring accurate price tracking across different financial instruments and chart configurations.

Why it may be useful

Settlement prices are crucial for traders as they provide objective reference points for market sentiment and potential price movement. These levels help traders identify key support and resistance zones, offering insights into potential entry and exit points for various trading strategies.

By automatically plotting these settlement levels, traders can quickly visualize important price benchmarks without manual calculation. This tool helps traders make more informed decisions by providing a clear view of historical price settlements and potential market turning points.

When to explore it

The settlement price script is most effective when trading futures contracts or seeking precise daily, weekly, and monthly price reference points. It works best for traders who want to understand market structure and identify potential trend continuation or reversal levels.

Traders can use this tool across different timeframes and market instruments, though it is particularly valuable for futures traders who need accurate settlement price information. It is especially useful when combined with other technical indicators to confirm trading signals and validate potential market movements.

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