RedK Trader Pressure Index (TPX)

// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © RedKTrader

//@version=5
indicator('RedK Trader Pressure Index (TPX)', shorttitle='RedK_TPX v5.0', overlay=false, timeframe='', precision=1)

// ======================================================================================================================
// Inputs
// ======================================================================================================================
length  = input.int(title='Avg Length',         defval=7, minval=1)
smooth  = input.int(title='Smoothing',          defval=3, minval=1)

// ****    CLevel is the "critical or control" level, whoever builds pressure that exceeds that level will be in control
clevel  = input.int(title='Control Level',      defval=30, minval=5, maxval=100)

// version 3.0 - adding optional pre-smoothing - will cause a signal lag of ~1 bar @ value of 3 - will be off by default   
pre_s   = input.bool(title='Pre-smoothing?',    defval=false,       inline='pre-smoothing')
pre_sv  = input.int(title='',                   defval=3, minval=1, inline='pre-smoothing')

// ======================================================================================================================
// Calculations
// ======================================================================================================================
//R is the 2-bar range used as "baseline" or denominator 
R           = ta.highest(2) - ta.lowest(2)

// Bull pressure is represented by how far they can pull the high and the low of previous bar up relative to the 2-bar range
hiup        = math.max(ta.change(high), 0)
loup        = math.max(ta.change(low), 0)
bulls       = math.min((hiup + loup) / R, 1) * 100  //prevent big gaps causing a % over 100%
avgbull     = ta.wma(nz(bulls), length)

avgbulls    = pre_s ? ta.wma(avgbull, pre_sv) : avgbull

// Bear pressure is represented by how far they can push the high and the low of previous bar down relative to the 2-bar range
hidn        = math.min(ta.change(high), 0)
lodn        = math.min(ta.change(low), 0)
bears       = math.max((hidn + lodn) / R, -1) * -100  //convert to positive value
avgbear     = ta.wma(nz(bears), length)

avgbears    = pre_s ? ta.wma(avgbear, pre_sv) : avgbear

net         = avgbulls - avgbears
TPX         = ta.wma(net, smooth)  // final smoothing

// ======================================================================================================================
// colors & plots
// ======================================================================================================================
col_bulls   = #33ff0099  // 40% transp
col_bears   = #ff111166  // 60% transp
col_level   = #ffee0070
col_TPXup   = color.white
col_TPXdn   = color.gray
TPXBullish  = TPX > 0

hline(0, color=col_level, linestyle=hline.style_solid, linewidth=1, editable=false)
hline(clevel, title='Control Level', color=col_level, linestyle=hline.style_dotted, linewidth=2)

plot(avgbulls,  title='Bull Pressure',  color=col_bulls, style=plot.style_area,     linewidth=3)
plot(avgbears,  title='Bear Pressure',  color=col_bears, style=plot.style_area,     linewidth=3)
plot(TPX,       title='Net Pressure',   color=TPXBullish ? col_TPXup : col_TPXdn,   linewidth=3)

// ======================================================================================================================
// version 4.0 adds Dominant Pressure Signal and enables basic Alerts

slevel_on   = input.bool(title='Pressure Signal Line?', defval=false,                               inline='signal')
slevel      = input.int(title='',                       defval=70, minval=0, maxval=100, step=5,    inline='signal')

maxbulls    = avgbulls >= clevel
maxbears    = avgbears >= clevel
TPXswing    = ta.cross(TPX, 0)

plot(maxbears and slevel_on ? slevel : na, 'Cold',  style=plot.style_circles,   color=color.new(color.maroon, 0),   linewidth=3)
plot(maxbulls and slevel_on ? slevel : na, 'Hot',   style=plot.style_cross,     color=color.new(color.green, 0),    linewidth=3)

alertcondition(maxbulls, 'TPX Bulls in Control',    'TPX Bull Pressure >= Control Level')
alertcondition(maxbears, 'TPX Bears in Control',    'TPX Bear Pressure >= Control Level')

//  v5.0 adds alert of TPX line changing color (swinging around the 0 line)
alertcondition(TPXswing, 'Net Pressure Swing',      'Net Pressure Swing Detected!')