ES ZONES

WHAT IT DOES
This indicator displays proprietary calculated support, resistance, and key directional levels specifically for ES futures contracts. It provides both daily levels (for intraday trading) and weekly levels (for swing trading).

HOW IT WORKS - METHODOLOGY
The levels are calculated using a proprietary methodology that integrates four data sources:

1. VOLUME PROFILE ANALYSIS
- Analyzes market-defined volume distributions to identify key reference locations
- Applies dynamic (calculated daily) volatility adjustments to these locations to arrive at Zones
- Weights volume concentrations by proprietary methods (not standard POC, initial balance, or value areas)

2. MARKET PROFILE INTEGRATION
- Incorporates specific elements - initial balance ranges, value area migrations, single prints - using a proprietary systematic process
- Uses discretionary composite profile analysis across multiple timeframes
- Systematically applied proprietary methods based on years of analysis prep experience and real-world trading effectiveness.  Not academic or standard profile theory methods.

3. ORDER FLOW DATA
- Integrates specific metrics - cumulative delta, bid/ask imbalances at key price levels, absorption patterns - visible from multiple timeframe footprint chart analysis
- Uses proprietary, experience-based order flow signatures to identify institutional participation zones

4. VOLATILITY ADJUSTMENT
- The Zones dynamically adapt their width based on VIX-driven volatility adjustment algorithm (calculated end of each day)

The KEY LEVEL placement is unique in that it distills the totality of the analysis from these many market-generated data sources to create a dynamic directional bias level that adapts to changing market conditions on a daily and weekly basis.

Unlike standard volume profile or market profile indicators or an order flow tool, the ES Zones analysis synthesizes all three data types to a simple-to-use but robust set of zones.

WHY ES FUTURES ONLY
The ES Zones are specifically for ES futures only because all data sources and analysis are derived from market-generated information produced by the trading activity and trading volume in the ES futures contract.

HOW TO USE

• KEY LEVEL: Bullish bias above, bearish bias below
• Daily KEY for intraday trading
• Weekly KEY for swing trading
• When above KEY: Target R1, R2, R3 levels
• When below KEY: Target S1, S2, S3 levels
• Levels act as potential support/resistance and profit targets
• Combine daily and weekly levels for confluence-based strategies