[KVA] ICT Dealing ranges

How it works

The indicator dynamically detects trading ranges by analyzing consecutive price movements, identifying sequences of upward or downward bars to create visual market structure representations. It tracks highest highs and lowest lows, categorizing price movements into bullish (green) and bearish (red) ranges to provide traders with clear visual insights into potential market dynamics.

By drawing horizontal lines at significant high and low points, the script creates reference levels that help traders understand potential institutional order zones and liquidity pools. The flexible parameters allow customization of range detection, enabling traders to adjust the depth of analysis and number of ranges displayed across different timeframes and market conditions.

Why it may be useful

This indicator is crucial for traders seeking to understand market structure and potential institutional trading strategies by revealing hidden market dynamics and order flow. It provides visual representations of potential buying and selling pressure zones, helping traders identify critical support and resistance levels that might not be immediately apparent on standard price charts.

By highlighting order blocks, fair value gaps, and potential liquidity pools, the indicator offers insights into how institutional traders might be positioning themselves. This approach helps traders make more informed decisions by revealing potential entry and exit points based on sophisticated market analysis techniques.

When to explore it

The indicator is most effective in markets with clear directional movements and identifiable trend structures, such as forex, futures, and major stock indices. Traders can utilize this tool during periods of consistent price action where market structure becomes more predictable and institutional trading patterns are more discernible.

It works particularly well in timeframes ranging from 5-minute to daily charts, where enough price history can be analyzed to generate meaningful insights. Traders should combine this indicator with other technical analysis tools to confirm signals and reduce false positive interpretations of market structure.

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