Power Zones [BreakoutOrFakeout]

Power Zones [BreakoutOrFakeout]
What It Does
Creates dynamic volatility-based zones that expand and contract with market conditions, showing you exactly where price is likely to react. The multi-layer gradient system instantly reveals whether price is in a high-pressure zone (likely reversal) or neutral zone (likely continuation).
Key Features
⚡ 4-Layer Zone System

Outer power zones (strongest reactions)
Inner neutral zones (trend continuation)
Dynamic centerline
All zones adapt to market volatility

🎯 Squeeze Detection

Identifies when volatility contracts (yellow)
Highlights expansion phases (purple)
Alerts before major moves

📊 Power Level Indicators

Purple dots mark extreme distances from center
Shows when price reaches high-power zones
Helps identify reversal points

🎨 Intelligent Color Coding

Zones, lines, and candles change color based on position
Brighter colors = stronger signals
Visual intensity shows opportunity strength

How to Use
Mean Reversion Strategy

Enter opposite direction when price touches outer zones
Purple dots = high probability reversal
Exit at centerline or opposite zone

Breakout Strategy

Yellow squeeze = prepare for breakout
Enter on expansion (purple background)
Ride the momentum to outer zones

Trend Following

Stay long above centerline
Stay short below centerline
Use zones as trailing stop levels

Visual Guide

🔴 Red Zone = Upper pressure area (potential resistance)
🟢 Green Zone = Lower pressure area (potential support)
🔵 Blue Line = Dynamic centerline (trend bias)
🟡 Yellow = Squeeze mode (low volatility)
🟣 Purple = High power or expansion

Settings
Core

Zone Period (10-50): Sensitivity to price action
Zone Width (0.5-4.0): How wide the zones extend
Smoothing (1-10): Reduces zone noise

Visual

Toggle zones, centerline, signals
Adjust transparency and line width
Optional candle coloring

Why Power Zones?
Traditional bands show you lines. Power Zones shows you pressure. The 4-layer gradient system reveals not just where support/resistance might be, but how strong it will be. The squeeze detection gives you a heads-up before big moves, while the power dots show you exactly when price has stretched too far.
Best For
✓ Range traders (fade the zones)
✓ Breakout traders (play the squeezes)
✓ Swing traders (zone-to-zone moves)
✓ Risk management (clear stop levels)
✓ All timeframes and markets
Pro Tips

Squeeze + touch of zone = high probability reversal
Expansion + break of zone = trend continuation
Multiple purple dots = extreme stretch, reversal imminent
Centerline color shows immediate trend bias


⚠️ DISCLAIMER: For educational purposes only. Trading involves substantial risk of loss. Past performance does not guarantee future results. Always use proper risk management and never risk more than you can afford to lose.