🎯 SHORT BAG DETECTOR

🎯 SHORT BAG DETECTOR: The Liquidation Squeeze Signal
💡 What This Indicator Does
The SHORT BAG DETECTOR is a powerful volatility and volume-based indicator designed to identify high-probability price areas where trapped short sellers (those holding a "short bag" of losing positions) are most vulnerable to a short squeeze or liquidation event.

It automatically scans for a rare confluence of three critical market conditions, generating a single, high-conviction signal (the large orange marker) for optimal entry timing.

🔎 The 3 Confluence Conditions
The main OLD BAG DETECTED! signal only triggers when all three of the following conditions occur simultaneously:

Old Level Touch: The price returns to a significant, aged historical pivot high or low price (established over the last 150 days). This level represents the average entry price for a large number of short or long positions.

Significant Gap: The current day opens with a meaningful price gap (user-defined percentage) against the direction of the trapped traders. This creates immediate urgency and stress for the "bag holders."

Volume Spike: The signal is confirmed by a massive volume spike (user-defined multiplier over average volume). This confirms that the movement is driven by forced liquidation (short-covering) and aggressive buying/selling, not just minor market noise.

📊 Key Features
High-Conviction Orange Signal: Marks the optimal timing for a potential squeeze/reversal driven by short liquidation.

Gap Markers (Green/Red): Clearly identifies significant bullish and bearish gaps on the chart.

Toggleable Minor Levels (Blue Labels): Shows all historical pivot levels being tracked for full context (can be easily disabled in the settings to reduce chart clutter).

📈 How to Use the Signal
The indicator is best used to identify continuation trades or volatile reversals. When the OLD BAG DETECTED! signal appears:

Bullish Signal (When price gaps up to an old low): Indicates a strong potential reversal as shorts from that low level are forced to cover.

Bearish Signal (When price gaps down to an old high): Indicates a potential reversal as longs from that high level are forced to liquidate.

This tool is perfect for traders looking to capitalize on volatility events and forced liquidations.