What this script does:
The purpose of this script is to help traders identify when the major sectors of the market are moving in one direction – also known as a “market trend day”.
How this script works:
The indicator uses QQQ, SMH and NVDA to represent the technology side of the market, and XLF, XLV & IWM to represent everything else. It tracks where price is within the day’s range for each of those symbols, and presents that data in a table and also in a dot-based “map”.
How to use this script:
Using the dot-based map, you can see if all symbols were ever at the highs or lows of their range together. You can use this information to decide which direction you should be trading (ie. with trend). For example, in order for there to be healthy bullish moves in the market, you would want this indicator to show you that all sectors are at the highs or trending in that direction.
Why did I make this indicator?
I used to think that all sectors needed to be at the highs together all day long for a trend day. Then recently we had a market trend day where that wasn’t the case. Afterwards, one of my mentors (ChartingManDan at The Chart Guys) clarified that all he needed to see was that at some point all of them were at the highs or lows together. So, it’s a bit more loose than I had originally understood. So, I made this slightly different version of the sector highs/lows indicator so you can visually see if that happened throughout the day.
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