ADX Thrust Reversal & Trend
Created by Love Sharma, CMT, CFTe
the idea is simple. there needs to be thrust in prices before adx goes above any barrier or level say 25/10 or even 10/ The Di plus or Di minus should be above ADX. This indicates the change in direction or change in underlying price and obviously followed by ADX indicator which is dependent on user which level it exceed.
The ADX - Shows Trend Strength
The =/- Di show Thrust or reversal in prices.
it helps in entering the directional change in prices early rather than waiting for ADX
ADX
Monthly Performance Table by Dr. MauryaWhat is this ?
This Strategy script is not aim to produce strategy results but It aim to produce monthly PnL performance Calendar table which is useful for TradingView community to generate a monthly performance table for Own strategy.
So make sure to read the disclaimer below.
Why it is required to publish?:
I am not satisfied with the monthly performance available on TV community script. Sometimes it is very lengthy in code and sometimes it showing the wrong PNL for current month.
So I have decided to develop new Monthly performance or return in value as well as in percentage with highly flexible to adjust row automatically.
Features :
Accuracy increased for current month PnL.
There are 14 columns and automatically adjusted rows according to available trade years/month.
First Column reflect the YEAR, from second column to 13 column reflect the month and 14 column reflect the yearly PnL.
In tabulated data reflects the monthly PnL (value and (%)) in month column and Yearly PnL (value and (%)) in Yearly column.
Various color input also added to change the table look like background color, text color, heading text color, border color.
In tabulated data, background color turn green for profit and red for loss.
Copy from line 54 to last line as it is in your strategy script.
Credit: This code is modified and top up of the open-source code originally written by QuantNomad. Thanks for their contribution towards to give base and lead to other developers. I have changed the way of determining past PnL to array form and keep separated current month and year PnL from array. Which avoid the false pnl in current month.
Strategy description:
As in first line I said This strategy is aim to provide monthly performance table not focused on the strategy. But it is necessary to explain strategy which I have used here. Strategy is simply based on ADX available on TV community script. Long entry is based on when the difference between DIPlus and ADX is reached on certain value (Set value in Long difference in Input Tab) while Short entry is based on when the difference between DIMinus and ADX is reached on certain value (Set value in Short difference in Input Tab).
Default Strategy Properties used on chart(Important)
This script backtest is done on 1 hour timeframe of NSE:Reliance Inds Future cahrt, using the following backtesting properties:
Balance (default): 500 000 (default base currency)
Order Size: 1 contract
Comission: 20 INR per Order
Slippage: 5 tick
Default setting in Input tab
Len (ADX length) : 14
Th (ADX Threshhold): 20
Long Difference (DIPlus - ADX) = 5
Short Difference (DIMinus - ADX) = 5
We use these properties to ensure a realistic preview of the backtesting system, do note that default properties can be different for various reasons described below:
Order Size: 1 contract by default, this is to allow the strategy to run properly on most instruments such as futures.
Comission: Comission can vary depending on the market and instrument, there is no default value that might return realistic results.
We strongly recommend all users to ensure they adjust the Properties within the script settings to be in line with their accounts & trading platforms of choice to ensure results from the strategies built are realistic.
Disclaimer:
This script not provide indicative of any future results.
This script don’t provide any financial advice.
This strategy is only for the readymade snippet code for monthly PnL performance calender table for any own strategy.
two_ma_logicLibrary "two_ma_logic"
The core logic for the two moving average strategy that is used as an example for the internal logic of
the "Template Trailing Strategy" and the "Two MA Signal Indicator"
ma(source, maType, length)
ma - Calculate the moving average of the given source for the given length and type of the average
Parameters:
source (float) : - The source of the values
maType (simple string) : - The type of the moving average
length (simple int) : - The length of the moving average
Returns: - The resulted value of the calculations of the moving average
getDealConditions(drawings, longDealsEnabled, shortDealsEnabled, endDealsEnabled, cnlStartDealsEnabled, cnlEndDealsEnabled, emaFilterEnabled, emaAtrBandEnabled, adxFilterEnabled, adxSmoothing, diLength, adxThreshold)
Parameters:
drawings (TwoMaDrawings)
longDealsEnabled (simple bool)
shortDealsEnabled (simple bool)
endDealsEnabled (simple bool)
cnlStartDealsEnabled (simple bool)
cnlEndDealsEnabled (simple bool)
emaFilterEnabled (simple bool)
emaAtrBandEnabled (simple bool)
adxFilterEnabled (simple bool)
adxSmoothing (simple int)
diLength (simple int)
adxThreshold (simple float)
TwoMaDrawings
Fields:
fastMA (series__float)
slowMA (series__float)
emaLine (series__float)
emaUpperBand (series__float)
emaLowerBand (series__float)
RDX Relative Directional IndexRDX Relative Directional Index, Strength + Direction + Trend. This indicator is the combination of RSI and DMI or ADX. RDX aims at providing Relative direction of the price along with strength of the trend. This acts as both RSI and Average Directional Index. as the strength grows the RSI line becomes wider and when there is high volatility and market fluctuation the line becomes thinner. Color decides the Direction. This indicator provides sideways detection of RSI signal.
RDX Width: This determines the strength of RSI and Strength of ADX, The strength grows RDX band grows wider, as strength decreases band shrinks and merge into the RSI line. for exact working simply disable RSI plot on the indicator. when there is no strength the RSI vanishes..
Technical:
RSI : with default 14 period
ADX : Default 14 period
RDX=RSI+(ADX-20)/5
Color Code:
Red: Down Direction
Green: Up Direction
Sideways:
A rectangular channel is plotted on RSI 50 Level
Oversold Overbought:
Oversold and Overbought Levels are plotted for normal RSI Oversold and Overbought detection.
Buy/Sell:
Buy sell signals from ADX crossover are plotted and its easy to determine
Strength + Direction + Trend in one go
Hope the community likes this...
Contibute for more ideas and indicators..
Heeger Alert | Didi's Needles setup [HeegerBot]Indicator based on Color Candles - Didi's Needles setup , but now exclusively focused on generating alerts.
With this indicator, you can set up alerts and notifications on TradingView for up to 15 assets based on Didi Aguiar's setup. Additionally, you can specify whether the alert should trigger at the candle close or X minutes before the close.
A session filter has also been added, allowing you to configure alerts to trigger only during a specific session.
Description of monitored signals:
The setup involves the crossing of three moving averages, along with the trend analysis in the ADX and the open Bollinger Bands.
The moving averages will be named "Didi Index". We will have the 3-period average as "Fast Average", the 8-period average as "Median Average", and the 20-period average as "Slow Average". When the Fast Average crosses the Median Average, we will have an alert, and when the Slow Average crosses the Median Average, we will have a confirmation. To adjust the Didi Index in the signals, the Median Average was normalized, that is, it will always be equal to 0. For the Slow and Fast Average, we will only consider the percentage difference in relation to the Median Average.
In addition to the moving averages, we analyze whether the ADX is rising, with DI+ above DI- to indicate an uptrend, or if the ADX is rising, with DI- above DI+ to indicate a downtrend. We also check if the Bollinger Bands are open. With these conditions, we will have a Needle.
Now I'm going to detail how I set this up on the indicator and some filters that I inserted for my personal use, along with some additional signals from the setup.
# Needle Alert
Firstly, we have the "Needle Alert" signal. This signal occurs when the Fast Average crosses the Median Average, along with the trend confirmation in the ADX and the opening of the Bollinger Bands. The filter is set at "1", which means we will only consider the needle alert when the percentage difference between the Slow Average and the Median Average is below 1%. This signal can be used as an entry point or to monitor the asset. Let's go through the examples:
• For a "Buy Alert", the Fast Average must cross the Median Average from bottom to top, and the percentage difference between the Slow Average and the Median Average should be less than +1% and greater than 0, as indicated by the Didi Index.
• For a "Sell Alert", the Fast Average must cross the Median Average from top to bottom, and the percentage difference between the Slow Average and the Median Average should be greater than -1% and less than 0, as indicated by the Didi Index.
We also have the alert projection, which serves as a signal to attract attention and monitor the asset. I use a "0.1" filter, which means that the percentage difference between the Fast Average and the Median Average must be equal to or less than 0.1%. Let's look at the example:
• For a "Buy Alert Projection", the Fast Average should be below the Median Average, and the percentage difference between the Fast Average and the Median Average should be greater than -0.1% and less than 0. In addition, the Slow Average should be above the Median Average in the Didi Index.
• For a "Buy Alert Projection", the Fast Average should be below the Median Average, and the percentage difference between the Fast Average and the Median Average should be greater than -0.1% and less than 0. In addition, the Slow Average should be above the Median Average in the Didi Index.
# Needle
After the Needle Alert, we have the Needle Confirmation, which occurs when the Slow Average crosses the Median Average after the alert. This signal is used to enter the operation. Let's divide this signal into two parts:
1. Needle: We use a filter of "3" (adjustable). This means that, to be considered a "Needle", the candle distance between the Alert (crossing of the Fast Average with the Median Average) and the Confirmation (crossing of the Slow Average with the Median Average) must be equal to or less than 3 candles. Also, there needs to be a trend on the ADX and the Bollinger Bands should be open.
2. Queijo Minas Needle (QM): Essentially, it's a Needle that occurs outside of the filter, with a candle distance between the Alert and the Confirmation above "3" candles. A trend on the ADX and open Bollinger Bands are also necessary.
To anticipate the Needle Confirmation, we use the "Needle Projection" signal. This signal has two filters: the "Needle Projection with Alert", set as "0.1%", and the "Needle Projection after the Alert", set as "0.3%".
1. The "Needle Projection with Alert" generates the signal when the "Needle Alert" occurs (crossing of the Fast Average with the Median Average), as long as the difference between the Slow Average and the Median Average is less than 0.1%.
2. The "Needle Projection after the Alert" generates the signal when the Fast Average has already crossed the Median Average, and the difference between the Slow Average and the Median Average should be less than 0.3%.
# BJMA (Spider Woman's Kiss)
There is another variation of the needle called BJMA. Essentially, it occurs when the Fast Average and the Slow Average approach the Median Average (each on one pole), but do not cross the Median and return to where they came from. In this signal, we have two filters: "Delta BJMA previous candle" and "Delta BJMA current candle". Let's see an example:
• Buy BJMA: First, we observe the previous candle, where the Fast Average must be above 0 (above the Median Average) and the percentage difference should be less than 0.02. In relation to the Slow Average, the configuration is the same, but in the negative sense, that is, it should be below 0 and above -0.02. Now, in the current candle, the Fast Average should be above 0 and below 0.05, while the Slow Average should be below 0 and above -0.05.
• Sell BJMA: First, we observe the previous candle, where the Fast Average must be below 0 (below the Median Average) and the percentage difference should be greater than -0.02. In relation to the Slow Average, the configuration is the same, but in the positive sense, that is, it should be above 0 and below 0.02. Now, in the current candle, the Fast Average should be below 0 and above -0.05, while the Slow Average should be above 0 and below 0.05.
Now, let's look at two signals that are commonly used to stay in a position.
# Fake Point
The Fake Point is primarily used to identify retracements before a continuation of the prevailing trend. Typically, it is preceded by a Needle Confirmation or BJMA signal. Here are some examples:
• Fake Sell (Signal to Maintain a Buy Position): The Fast Average crosses the Median from top to bottom (entering the negative pole of the Didi Index), while the Slow Average, which is already below the Median (below 0), continues to decline further, increasing the percentage difference between the Fast and Slow Averages in the negative pole.
• Fake Buy (Signal to Maintain a Sell Position): It is the same as the fake sell scenario but in the positive pole. The Fast Average crosses the Median, entering the positive pole of the Didi Index, while the Slow Average, which was already above the Median, continues to increase the percentage difference with the Median. For example, if the Slow Average was at +1 on the Didi Index, it would now be at +1.3.
There is also another variation of the Fake Breakout that takes into consideration the ADX (Average Directional Index) to confirm the trend direction. In other words, if we have a fake sell signal that suggests a buy position, we want the ADX to indicate a buying trend, and vice versa.
# Bought and Sold
This signal basically checks whether the indicators continue to confirm the previous signals. There are two variations: "Bought/Sold" and "Bought/Sold without Bollinger Bands". Let's see an example:
• Bought: The Didi Index is in the buying position, which means the Fast Average is above the Median Average (above 0), and the Slow Average is below the Median Average. Additionally, the ADX is indicating a buying trend and the Bollinger Bands are open.
• Sold: The Didi Index is in the selling position, which means the Fast Average is below 0 and the Slow Average is above 0. Moreover, the ADX is indicating a selling trend and the Bollinger Bands are open.
• Bought/Sold without Bollinger Bands: It's the same signal, but without considering whether the Bollinger Bands are open or not.
We can also consider the "Bought/Sold" signal based on the Trix and Stochastic, which would be additional confirmations of the movement.
Personally, I do not activate the Bought/Sold signal.
Now we come to signals to exit the position or take partial profits.
# Close
This exit signal is based on the following indicators: ADX, Bollinger Bands, Trix, and Stochastic. We wait for the ADX Kick or the falling ADX, along with the Bollinger Bands closing, and the Trix and Stochastic changing to the opposite side. Let's see some examples:
• Close a Buy: The ADX was in a buying trend (ADX rising and DI+ above DI-), but then the ADX Kick occurs or the ADX starts to fall. In addition, the Bollinger Bands close, and the Trix and Stochastic should switch to the sell signal.
• Close a Sell: The ADX was in a selling trend (ADX rising and DI- above DI+), but then the ADX Kick occurs or the ADX starts to fall. Also, the Bollinger Bands close, and the Trix and Stochastic should switch to the buy signal.
All indicators must provide signals together, but it is not necessary for all to occur in the exact same candle. For example:
1. The ADX Kick may occur, and the Trix and Stochastic switch to the buy signal, but the Bollinger Bands still remain open. In this case, we still do not have the exit signal.
2. In the next candle, the ADX continues to fall (after the Kick), the Trix and Stochastic continue to indicate buying, but this time the Bollinger Bands close. In this case, we have the "Close a Sell" signal.
It is important that all indicators are in accordance with the necessary signals, even if they occur in different candles, in order for the exit signal to be triggered.
# Close with Alert
This signal occurs when the Didi Index switches to the opposite side from where it was, along with a trend on the ADX, provided it's not a fake point. Let's see some examples:
• Close Buy - Sell Alert: Suppose we were in a buy position on the previous candle. In the current candle, the Fast Average crosses the Median Average from top to bottom, and the ADX indicates a sell trend. In this case, we completely close our buy position or make a partial realization.
• Close Sell - Buy Alert: Suppose we were in a sell position on the previous candle. In the current candle, the Fast Average crosses the Median Average from bottom to top, and the ADX indicates a buy trend. In this case, we completely close our sell position or make a partial realization.
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Indicador baseado no Color Candles - Didi's Needles setup , mas agora focado exclusivamente na geração de alertas.
Com esse indicador, você pode configurar alertas e notificações no TradingView para até 15 ativos com base no setup de Didi Aguiar. Além disso, é possível definir se o alerta deve ser acionado no fechamento do candle ou X minutos antes do fechamento.
Também foi adicionado um filtro de sessão que permite configurar os alertas para serem acionados apenas durante uma sessão específica.
Descrição dos sinais monitorados:
O setup consiste no cruzamento de 3 médias móveis, juntamente com a análise da tendência no ADX e das bandas de Bollinger abertas.
As médias móveis serão nomeadas "Didi Index". Teremos a média de 3 períodos como "Média Rápida", a média de 8 períodos como "Média Mediana" e a média de 20 períodos como "Média Lenta". Quando a Média Rápida cruzar a Média Mediana, teremos um alerta e, quando a Média Lenta cruzar a Média Mediana, teremos uma confirmação. Para ajustar o Didi Index nos sinais, a Média Mediana foi normalizada, isto é, ela sempre será igual a 0. Para a Média Lenta e a Média Rápida, levaremos em consideração apenas a diferença percentual em relação à Média Mediana.
Além das médias móveis, analisamos se o ADX está em ascensão, com o DI+ acima do DI- para indicar uma tendência de alta, ou se o ADX está subindo, com o DI- acima do DI+ para indicar uma tendência de baixa. Também verificamos se as bandas de Bollinger estão abertas. Com essas condições, teremos uma Agulhada.
Agora vou detalhar como estabeleci isso no indicador e alguns filtros que inseri para o meu uso pessoal, além de alguns sinais adicionais do setup.
# Alerta de Agulhada
Primeiramente, temos o sinal de "Alerta de Agulhada". Este sinal acontece quando a Média Rápida cruza a Média Mediana, junto com a confirmação da tendência no ADX e a abertura das Bandas de Bollinger. O filtro está ajustado em "1", o que significa que só levaremos em consideração o alerta de agulhada quando a diferença percentual entre a Média Lenta e a Média Mediana estiver abaixo de 1%. Esse sinal pode ser utilizado como um ponto de entrada ou para monitorar o ativo. Vamos aos exemplos:
• Para um "Alerta de Compra", a Média Rápida deve cruzar a Média Mediana de baixo para cima, e a diferença percentual entre a Média Lenta e a Média Mediana deve ser menor que +1% e maior que 0, conforme indicado pelo Didi Index.
• Para um "Alerta de Venda", a Média Rápida deve cruzar a Média Mediana de cima para baixo, e a diferença percentual entre a Média Lenta e a Média Mediana deve ser maior que -1% e menor que 0, conforme indicado pelo Didi Index.
Também temos a projeção do alerta, que serve como um sinal para chamar atenção e monitorar o ativo. Eu uso um filtro de "0.1", o que significa que a diferença percentual entre a Média Rápida e a Média Mediana deve ser igual ou menor que 0.1%. Vamos ver o exemplo:
• Para uma "Projeção de Alerta de Compra", a Média Rápida deve estar abaixo da Média Mediana, e a diferença percentual entre a Média Rápida e a Média Mediana deve ser maior que -0.1% e menor que 0. Além disso, a Média Lenta deve estar acima da Média Mediana no Didi Index.
• Para uma "Projeção de Alerta de Compra", a Média Rápida deve estar abaixo da Média Mediana, e a diferença percentual entre a Média Rápida e a Média Mediana deve ser maior que -0.1% e menor que 0. Além disso, a Média Lenta deve estar acima da Média Mediana no Didi Index.
# Agulhada
Após o Alerta de Agulhada, temos a confirmação da Agulhada, que ocorre quando a Média Lenta cruza a Média Mediana após o alerta. Esse sinal é utilizado para entrar na operação. Vamos dividir esse sinal em duas partes:
1. Agulhada: Utilizamos um filtro de "3" (ajustável). Isso significa que, para ser considerada uma "Agulhada", a distância em velas entre o Alerta (cruzamento da Média Rápida com a Média Mediana) e a Confirmação (cruzamento da Média Lenta com a Média Mediana) deve ser igual ou menor que 3 velas. Além disso, é necessário ter uma tendência no ADX e as Bandas de Bollinger devem estar abertas.
2. Agulhada Queijo Minas (QM): Basicamente, é uma agulhada que ocorre fora do filtro, com uma distância em velas entre o Alerta e a Confirmação acima de "3" velas. Também é necessário ter uma tendência no ADX e as Bandas de Bollinger devem estar abertas.
Para antecipar a confirmação da Agulhada, utilizamos o sinal de "Projeção de Agulhada". Esse sinal possui dois filtros: o "Projeção de Agulhada com Alerta", configurado como "0.1%", e o "Projeção de Agulhada após o Alerta", configurado como "0.3%".
1. "Projeção de Agulhada com Alerta" gera o sinal quando ocorre o "Alerta de Agulhada" (cruzamento da Média Rápida com a Média Mediana), desde que a diferença entre a Média Lenta e a Média Mediana seja menor que 0.1%.
2. "Projeção de Agulhada após o Alerta" gera o sinal quando a Média Rápida já cruzou a Média Mediana, e a diferença entre a Média Lenta e a Média Mediana deve ser menor que 0.3%.
# BJMA (Beijo da Mulher Aranha)
Existe uma outra variação da agulhada chamada BJMA. Essencialmente, ocorre quando a Média Rápida e a Média Lenta se aproximam da Média Mediana (cada uma em um polo), mas não cruzam a Mediana e voltam para o lado de onde vieram. Nesse sinal, temos dois filtros: "Delta BJMA vela anterior" e "Delta BJMA vela atual". Vejamos um exemplo:
• BJMA de Compra: Primeiramente, observamos a vela anterior, onde a Média Rápida deve estar acima de 0 (acima da Média Mediana) e a diferença percentual deve ser menor que 0.02. Em relação à Média Lenta, a configuração é a mesma, porém no sentido negativo, ou seja, ela deve estar abaixo de 0 e acima de -0.02. Agora, na vela atual, a Média Rápida deve estar acima de 0 e abaixo de 0.05, enquanto a Média Lenta deve estar abaixo de 0 e acima de -0.05.
• BJMA de Venda: Primeiramente, observamos a vela anterior, onde a Média Rápida deve estar abaixo de 0 (abaixo da Média Mediana) e a diferença percentual deve ser maior que -0.02. Em relação à Média Lenta, a configuração é a mesma, porém no sentido positivo, ou seja, ela deve estar acima de 0 e abaixo de 0.02. Agora, na vela atual, a Média Rápida deve estar abaixo de 0 e acima de -0.05, enquanto a Média Lenta deve estar acima de 0 e abaixo de 0.05.
Agora vamos abordar dois sinais que são normalmente utilizados para manter uma posição.
# Ponto Falso (Fake Point)
O Ponto Falso é usado para identificar uma retração antes de retomar o movimento. Geralmente, ele ocorre após um sinal de Agulhada ou BJMA. Vejamos exemplos:
• Venda Falsa (sinal para manter uma posição de compra): A Média Rápida cruza a Média Mediana de cima para baixo (entrando no polo negativo do Didi Index), enquanto a Média Lenta, que já está abaixo da Média Mediana (abaixo de 0), continua caindo, aumentando assim a diferença percentual entre a Média Lenta e a Média Mediana no polo negativo.
• Compra Falsa (sinal para manter uma posição de venda): O cenário é semelhante, mas no polo positivo. A Média Rápida cruza a Média Mediana, passando para o lado positivo do Didi Index, enquanto a Média Lenta, que já estava acima da Média Mediana, continua aumentando a diferença percentual em relação à Média Mediana. Por exemplo, se a Média Lenta estava em +1 no Didi Index, agora ela está em +1.3.
Também existe uma variação do Ponto Falso em que verificamos se a tendência no ADX está se mantendo na mesma direção. Ou seja, se tivermos uma Venda Falsa (que seria um sinal para permanecermos em uma posição de compra), é importante que o ADX esteja indicando uma tendência de compra, e vice-versa. Dessa forma, consideramos não apenas o cruzamento das médias, mas também a confirmação da tendência no ADX. Essa variação é chamada de Ponto Falso com Tendência (Fake Point with Trend).
# Comprado e Vendido
Esse sinal, essencialmente, verifica se os indicadores estão mantendo a confirmação dos sinais anteriores. Existem duas variações: "Comprado/Vendido" e "Comprado/Vendido sem Bandas de Bollinger". Vejamos um exemplo:
• Comprado: O Didi Index está em compra, o que significa que a Média Rápida está acima da Média Mediana (acima de 0) e a Média Lenta está abaixo da Média Mediana. Além disso, o ADX está indicando uma tendência de compra e as Bandas de Bollinger estão abertas.
• Vendido: O Didi Index está em venda, o que significa que a Média Rápida está abaixo de 0 e a Média Lenta está acima de 0. Além disso, o ADX está indicando uma tendência de venda e as Bandas de Bollinger estão abertas.
• Comprado/Vendido sem Bollinger: É o mesmo sinal, porém sem considerar se as Bandas de Bollinger estão abertas ou não.
Podemos também considerar o "Comprado/Vendido" com base no Trix e no Estocástico, que seriam confirmações adicionais do movimento.
Eu, pessoalmente, não deixo ativado o sinal de Comprado/Vendido.
Agora chegamos aos sinais de saída da posição ou de realização parcial.
# Fechar (Close)
Este sinal de saída baseia-se nos seguintes indicadores: ADX, Bandas de Bollinger, Trix e Estocástico. Aguardamos o Kick do ADX ou o ADX em queda, juntamente com as Bandas de Bollinger se fechando, e o Trix e o Estocástico mudando para o lado oposto. Vamos ver alguns exemplos:
• Fechar uma Compra (Close Buy): O ADX estava em uma tendência de compra (ADX subindo e DI+ acima do DI-), mas em seguida ocorre o Kick do ADX ou o ADX começa a cair. Além disso, as Bandas de Bollinger se fecham e o Trix e o Estocástico devem mudar para o sinal de venda.
• Fechar uma Venda (Close Sell): O ADX estava em uma tendência de venda (ADX subindo e DI- acima do DI+), mas em seguida ocorre o Kick do ADX ou o ADX começa a cair. Além disso, as Bandas de Bollinger se fecham e o Trix e o Estocástico devem mudar para o sinal de compra.
Todos os indicadores devem fornecer os sinais em conjunto, mas não é necessário que todos ocorram exatamente na mesma vela. Por exemplo:
1. Pode ocorrer o Kick do ADX e o Trix e o Estocástico mudarem para o sinal de compra, mas as Bandas de Bollinger ainda permanecerem abertas. Nesse caso, ainda não teremos o sinal de saída.
2. No candle seguinte, o ADX continua caindo (após o Kick), o Trix e o Estocástico continuam indicando compra, mas desta vez as Bandas de Bollinger se fecham. Nesse caso, teremos o sinal de "Fechamento de uma Venda".
É importante que todos os indicadores estejam em conformidade com os sinais necessários, mesmo que ocorram em velas diferentes, para que seja acionado o sinal de saída.
# Fechar com Alerta (Close with Alert)
Esse sinal ocorre quando o Didi Index muda para o lado oposto do que estava, juntamente com uma tendência no ADX, desde que não seja um ponto falso. Vejamos exemplos:
• Fechar Compra - Alerta de Venda: Suponha que estávamos em uma posição de compra no candle anterior. No candle atual, a Média Rápida cruza a Média Mediana de cima para baixo, e o ADX indica uma tendência de venda. Nesse caso, encerramos completamente nossa posição de compra ou realizamos uma realização parcial.
• Fechar Venda – Alerta de Compra: Suponha que estávamos em uma posição de venda no candle anterior. No candle atual, a Média Rápida cruza a Média Mediana de baixo para cima, e o ADX indica uma tendência de compra. Nesse caso, encerramos completamente nossa posição de venda ou realizamos uma realização parcial.
Volume Based RSI with ADXThe RSI indicator is a powerful tool that utilizes both volume and time to determine market trends. When there is a low volume of trades in a short period of time, but the trading activity is high, it is considered bullish or bearish. In the case of a bullish trend, the RSI indicator will display a green color, while a bearish trend will be represented by a red color. If there is no trading activity, the indicator will display a gray color. Additionally, if the ADX level meets the threshold level, the indicator will display a blue color. However, if the ADX level does not meet the threshold level, the indicator will revert back to displaying a gray color.
TTP SuperTrend ADXThis indicator uses the strength of the trend from ADX to decide how the SuperTrend (ST) should behave.
Motivation
ST is a great trend following indicator but it's not capable of adapting to the trend strength.
The ADX, Average Directional Index measures the strength of the trend and can be use to dynamically tweak the ST factor so that it's sensitivity can adapt to the trend strength.
Implementation
The indicator calculates a normalised value of the ADX based on the data available in the chart.
Based on these values ST will use different factors to increase or reduce the factor use by ST: expansion or compression.
ST expansion vs compression
Expanding the ST would mean that the stronger a trends get the ST factor will grow causing it to distance further from the price delaying the next ST trend flip.
Compressing the ST would mean that the stronger a trends get the ST factor will shrink causing it to get closer to the price speeding up the next ST trend flip.
Features
- Alerts for trend flip
- Alerts for trend status
- Backtestable stream
- SuperTrend color gets more intense with the strength of the trend
Support Resistance BreakthroughThe Support Resistance Breakthrough (SRB) is a comprehensive technical indicator that aims to evaluate market strength and detect potential breakout opportunities. It integrates the following elements:
ADX (Average Directional Index): Helps measure the overall trend strength. You can adjust both the ADX length and smoothing length.
ATR (Average True Range): Provides a measure of market volatility.
RSI (Relative Strength Index): Measures the momentum and helps identify overbought or oversold conditions.
Weighting Scheme: The weighting scheme adds or subtracts a fraction of the ROC of RSI, modulated by ATR and ADX. The weighting percentage can be customized.
Normalization Option: Allows the user to plot normalized values, scaling them between 0 and 100.
Horizontal Lines: Useful reference lines at 0, 50, and 100, displayed when normalization is used.
Interpretation: When the indicator is above the 0 line (or 50 when normalized), there's a high chance of breaking through resistance. Conversely, when it's below the 0 line, there's a high chance of breaking through support. Together with a momentum indicator, such as RSI and/or Stochastic RSI, this indicator functions excellently.
The combination of these elements makes the SRB an adaptable tool for various trading strategies. It can help identify potential breakout or breakdown areas and gauge the underlying strength of the market.
Compatibility with Adjustable Fibonacci Retracement Indicator: Together with the SRB indicator, the AFIBR can make it easier to determine the likelihood of breaking through support or resistance.
Buy Only Strategy with Dynamic Re-Entry and ExitThe strategy aims to create a simple buy-only trading system based on moving average crossovers and the Weekly Commodity Channel Index (CCI) or Weekly Average Directional Index (ADX). It generates buy signals when the fast-moving average crosses above the slow-moving average and when the Weekly CCI and or Weekly ADX meet the specified conditions.
The strategy also allows for dynamic re-entry, which means it can open new long positions if the price goes above the three moving averages after an exit. However, the strategy will exit the long position if the price closes below the third moving average.
ENTRY CONDITIONS
The script defines the conditions for generating buy signals. It checks for two conditions for a valid buy signal:
• If the fast-moving average crosses above the slow-moving average -THERE IS Dynamic Re-Entry also
• If the user chooses HE OR SHE CAN FILTER TRADES BY USING CCI OR ADX
Dynamic Re-Entry:
the script allows for dynamic re-entry. If there is no active long position and the price is above all three moving averages a new long position is opened.
Exit Conditions
The script defines the exit condition for closing a long position. If the price closes below the third moving average, the script closes the long position.
IMPORTANT NOTICE
ONLY DAILY TIME FRAME
THERE WOULD BE WHIPSAW USE YOUR OWN ACCUMEN TO MINIMISE THEM
ITS ONLY BUY STRATEGY
EXIT CAN BE STRATEGY BASED OR SET PROFIT AND TARGETS AS PER RISK APETITE /RISK MANAGEMENT
DONT TRADE OPTIONS ON THIS
SUITABLE FOR STOCKS OF USA AND INDIAN MARKETS
ALWAYS REMEMBER TO DO YOUR OWN RESEARCH BEFORE TRADING AND INVESTING
Volatility FilterThe "Volatility Filter" script is designed to measure market volatility across two different timeframes and determine whether the market is flat or trending.
It uses custom-tuned versions of four different indicators to measure volatility and distinguish between trending and ranging conditions.
The selected indicators are:
1 - Average Directional Index (ADX) Volatility
2 - Damiani Volameter
3 - Trader Pressure Index (TPI)
4 - Williams Alligator Indicator
The script calculates a filter score for both the current timeframe and a user-specified higher timeframe. It offers two types of filter scores, controlled by the 'FilterType' parameter. The filter score is then visualized on the chart as the main oscillator for the current timeframe and a filled bar for the higher timeframe.
The script utilizes a custom moving average function that provides 17 different ways to calculate a moving average, giving the user extensive flexibility in tailoring the script to their needs.
By using custom indicators and unique score calculation methods across two timeframes, this script provides a comprehensive measure of market volatility, aiding traders in identifying trending and ranging market conditions.
This script also provides two additional parameters for tuning its calculations and output, allowing to adjust the script to any trading style and the characteristics of the market being traded.
1 - Threshold: This parameter sets a threshold that the oscillator needs to surpass for the current market move to be considered as a trend. By adjusting the threshold, traders can control how much volatility is required to register a move as trending. A higher threshold will require more volatility for a trend to be recognized, meaning that the market needs to be moving more strongly for a trend to be identified.
2 - Length: This parameter is used to smooth the oscillator. It determines the number of periods used in the calculation of the moving average of the volatility filter score. A longer length will consider more data points and therefore provide a smoother line, which can be useful in accounting for the fading of trends. When trends start to lose their strength but are still present, a longer length can help in maintaining the recognition of the trend, aiding in making accurate trading decisions.
By adjusting these parameters, traders can fine-tune the script's sensitivity to market volatility and its recognition of trends, providing valuable flexibility in adapting to different market conditions and trading strategies.
ADXcellenceThis advanced trading indicator, inspired by Dr. Charles B. Schaap's book "ADXcellence: Power Trend Strategies", leverages the principles of the Average Directional Index (ADX) to help traders identify and exploit trending conditions in the market.
The ADXcellence Indicator uses multiple levels of analysis to evaluate the strength and direction of trends.
In addition to the classic ADX+DMI input settings, these features are included:
ADX Slope Signal: This parameter, controls the sensitivity of the ADX slope, which will indicate when the trend strength is increasing or decreasing.
The indicator provides three trend levels: strong trend level, trending level, and low volatility level, which can be customized to suit various trading strategies.
The color gradients for the ADX, DI+, and DI- lines are designed to visually represent the trend strength from the low volatility level to the strong trend level. The indicator also uses a dynamic background color, highlighting the periods when the ADX is rising. The color will vary depending on the dominant DI.
The ADXcellence Indicator also offers a unique feature of dynamically adjusting the fill between DI+ and DI-, with the color and fill intensity changing based on the relative value of the two.
This indicator is a powerful tool for traders who use trend-following strategies and is best used in conjunction with other technical analysis tools to confirm signals and avoid potential false signals.
Remember, no indicator is perfect and every trading strategy should include risk management and proper due diligence.
Enjoy :)
RSI + ADX + MACDINDICADOR COMBINADO DE RSI + ADX
Aprovecha las ventajas de cada indicador en uno solo.
Teniendo en un solo indicador el momentum de cada tendencia y la fuerza relativa con sus puntos de sobre compra y sobre venta.
También al poder analizar divergencias en el indicador oscilador RSI y poder crear estrategias de entrada con el ADX
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RSI + ADX COMBINED INDICATOR
Take advantage of each indicator in one.
Having in a single indicator the momentum of each trend and the relative strength with its points of overbought and oversold.
Also by being able to analyze divergences in the RSI oscillator indicator and being able to create entry strategies with the ADX
DERECHOS DEL CREADOR PARA: Dvd_trading
Ta StrategyHello guys
This script follows traditional technical indicators
MACD, ADX, RSI and pivot points
If the price is above the resistance and the MACD has crossover ,and the RSI 14 is above 50
ADX is higher than 20, and DI+ is higher than DI-. This is a buy signal and vice versa for a sell signal
The script moves the stop loss to the entry price after the first target is reached
You can specify the quantity you want to sell when the price reaches the first target
There are also options like if you want the script to entry long or short, or both
you can reverse the strategy if it does not work well
If you want to inquire about any details, please let me know in the comments
DJ Soori Trading StrategyThe strategy combines three indicators: Exponential Moving Average (EMA), Weighted Moving Average (WMA), and Average Directional Index (ADX).
The EMA and WMA are used to track the average price over different time periods.
The ADX measures the strength of a trend in the market.
The strategy generates buy signals when the EMA is higher than the WMA and the ADX is above a certain threshold. It suggests a potential uptrend.
It generates sell signals when the EMA is lower than the WMA and the ADX is above the threshold. It suggests a potential downtrend.
The strategy also considers whether the ADX is rising or falling to indicate the strength of the trend.
The EMA, WMA, and ADX values are plotted on the chart.
Buy and sell signals are shown as labels on the chart, indicating "Buy (Strong)" or "Buy (Weak)" for buy signals, and "Sell (Strong)" or "Sell (Weak)" for sell signals.
Ultimate Balance StrategyThe Ultimate Balance Oscillator Strategy harnesses the power of the Ultimate Balance Oscillator to deliver a comprehensive and disciplined approach to trading. By combining the insights of the Rate of Change (ROC), Relative Strength Index (RSI), Commodity Channel Index (CCI), Williams Percent Range, and Average Directional Index (ADX) from TradingView, this strategy offers traders a systematic way to navigate the markets with precision.
The core principle of this strategy lies in its ability to identify optimal entry and exit points based on the movement of the Ultimate Balance Oscillator. When the oscillator line crosses below the 0.75 level, a buy signal is generated, indicating a potential opportunity for a bullish trend reversal. Conversely, when the oscillator line crosses above the 0.25 level, it triggers an exit signal, suggesting a possible end to a bullish trend.
Key Features:
1. Objective Market Analysis: The Ultimate Balance Oscillator Strategy provides a disciplined and objective approach to market analysis. By relying on the quantified insights of multiple indicators, it helps traders cut through market noise and focus on key signals, improving decision-making and reducing emotional biases.
2. Enhanced Timing and Precision: This strategy's entry and exit signals are based on the specific thresholds of the Ultimate Balance Oscillator. By waiting for confirmation through the crossing of these levels, traders can potentially enter trades at opportune moments and exit with greater precision, maximizing profit potential and minimizing risk exposure.
3. Customizability and Adaptability: The strategy offers flexibility, allowing traders to customize the parameters to fit their preferred trading style and timeframes. Whether you're a short-term trader or a long-term investor, the Ultimate Balance Oscillator Strategy can be adjusted to suit your specific needs, making it adaptable to various market conditions.
4. Real-time Alerts: Stay informed and never miss a potential trade opportunity with the strategy's built-in alert system. Set personalized alerts for buy and exit signals to receive timely notifications, ensuring you're always aware of the latest developments in the market.
5. Backtesting and Optimization: Before applying the strategy to live trading, it's recommended to conduct thorough backtesting and optimization. By testing the strategy's performance over historical data and fine-tuning the parameters, you can gain insights into its strengths and weaknesses, enabling you to make informed adjustments and increase its effectiveness.
Trading involves risk. Use the Ultimate Balance Oscillator Strategy at your own discretion. Past performance is not indicative of future results.
Ultimate Balance OscillatorIntroducing the Ultimate Balance Oscillator: A Powerful Trading Indicator
Built upon the renowned Rate of Change (ROC), Relative Strength Index (RSI), Commodity Channel Index (CCI), Williams Percent Range, and Average Directional Index (ADX) from TradingView, this indicator equips traders with an unparalleled understanding of market dynamics.
What sets the Ultimate Balance Oscillator apart is its meticulous approach to weighting. Each component is assigned a weight that reflects its individual significance, while carefully mitigating the influence of highly correlated signals. This strategic weighting methodology ensures an unbiased and comprehensive representation of market sentiment, eliminating dominance by any single indicator.
Key Features and Benefits:
1. Comprehensive Market Analysis: The Ultimate Balance Oscillator provides a comprehensive view of market conditions, enabling traders to discern price trends, evaluate momentum shifts, identify overbought or oversold levels, and gauge the strength of prevailing trends. This holistic perspective empowers traders to make well-informed decisions based on a thorough understanding of the market.
2. Enhanced Signal Accuracy: With its refined weighting approach, the Ultimate Balance Oscillator filters out noise and emphasizes the most relevant information. This results in heightened signal accuracy, providing traders with a distinct advantage in identifying optimal entry and exit points. Say goodbye to unreliable signals and welcome a more precise and dependable trading experience.
3. Adaptability to Various Trading Scenarios: The Ultimate Balance Oscillator transcends the constraints of specific markets or timeframes. It seamlessly adapts to diverse trading scenarios, accommodating both short-term trades and long-term investments. Traders can customize this indicator to suit their preferred trading style and effortlessly navigate ever-changing market conditions.
4. Simplicity and Ease of Use: The Ultimate Balance Oscillator simplifies trading analysis by providing a single line on the chart. Its straightforward interpretation and seamless integration into trading strategies make decision-making effortless. By observing bullish or bearish crossovers with the moving average, recognizing overbought or oversold levels, and tracking the overall trend of the oscillator, traders can make well-informed decisions with confidence.
5. Real-time Alerts: Stay ahead of the game with the Ultimate Balance Oscillator's customizable alert system. Traders can set up personalized alerts for bullish or bearish crossovers, breaches of overbought or oversold thresholds, or any specific events that align with their trading strategy. Real-time notifications enable timely action, ensuring traders never miss lucrative trading opportunities.
The Ultimate Balance Oscillator is a robust trading companion, empowering traders to make shrewd and calculated decisions. Embrace its power and elevate your trading endeavors to new heights of precision and success. Discover the potential of the Ultimate Balance Oscillator and unlock a world of trading possibilities.
ADX Momentum Shaded CandlesDescription:
The "ADX Momentum Shaded Candles" indicator (ADXMSC) is an overlay indicator that enhances candlestick charts by adding shading based on the momentum derived from the Average Directional Index (ADX). This indicator provides visual cues about the strength of bullish and bearish momentum by adjusting the transparency of the candlesticks.
How it Works:
The indicator utilizes the ADX indicator to calculate the values of +DI (Directional Indicator Plus) and -DI (Directional Indicator Minus) based on user-defined parameters. It then determines the transparency levels for the bullish and bearish candlesticks based on the calculated values of +DI and -DI. Higher values of +DI or -DI result in lower transparency levels, while lower values increase transparency.
Transparency Calculation:
The transparency of the bullish and bearish candlesticks is adjusted based on the values of +DI and -DI, which reflect the momentum of the price movement. Transparency is inversely proportional to these values, with higher values resulting in lower transparency. To calculate transparency, the indicator uses the formula 100 minus the value of +DI or -DI multiplied by 2. This ensures that higher values of +DI or -DI produce more opaque candlesticks.
Usage:
To effectively use the "ADX Momentum Shaded Candles" indicator (ADXMSC), follow these steps:
1. Apply the indicator to your chart by adding it from the available indicators.
2. Observe the candlesticks on the chart:
- Bullish candlesticks are represented by the original bullish color with adjusted transparency.
- Bearish candlesticks are represented by the original bearish color with adjusted transparency.
3. Analyze the transparency levels of the candlesticks to assess the strength of bullish and bearish momentum. Less transparent candlesticks indicate stronger momentum, while more transparent ones suggest weaker momentum.
4. Combine the visual information from the shaded candlesticks with other technical analysis tools, such as support and resistance levels, trend lines, or oscillators, to confirm potential trade opportunities.
5. Customize the indicator's parameters, such as the ADX length and smoothing, to suit your trading preferences.
6. Implement appropriate risk management strategies, including setting stop-loss orders and position sizing, to manage your trades effectively and protect your capital.
ADX Divergence IndicatorDescription:
The ADX Divergence Indicator (ADXDI) is a technical analysis tool designed to identify potential bullish and bearish signals based on the Average Directional Index (ADX), the Positive Directional Indicator (+DI), and the Negative Directional Indicator (-DI) lines. This overlay indicator plots circles on the chart to highlight these signals.
How it Works:
The ADXDI calculates the ADX, +DI, and -DI values using user-defined parameters. It then evaluates specific conditions to determine potential bullish and bearish signals. The indicator considers rising and falling trends of the +DI and -DI lines, as well as changes in the ADX values. Additionally, it detects a bounce condition when the current ADX is less than the previous ADX value and that ADX value is higher than the one previous to it.
Usage:
To effectively utilize the ADX Divergence Indicator, follow these steps:
1. Apply the ADX Divergence Indicator to your chart by adding it from the available indicators.
2. Observe the circles plotted on the chart:
- Bullish circles (green by default) indicate potential bullish signals.
- Bearish circles (red by default) indicate potential bearish signals.
4. Interpret the signals provided by the indicator:
- A bullish signal occurs when the +DI line rises and the -DI line falls.
- A bearish signal occurs when the -DI line rises and the +DI line falls.
- The presence of a bounce condition (ADX < ADX and ADX > ADX) further strengthens the signal.
5. Combine the signals from the ADX Signals indicator with other technical analysis tools, such as support and resistance levels, trend lines, or candlestick patterns, to confirm potential trade setups.
6. Customize the indicator's parameters, such as the lengths of the DI and ADX calculations or the colors of the plotted circles, to suit your trading preferences.
7. Implement appropriate risk management strategies, including setting stop-loss orders and position sizing, to manage your trades effectively and protect your capital.
TrendFollow-1HThis is a trading strategy specially used on btcusdtperp in binance 1H chart
The most important part of this strategy is to use Support and Resistance with trading volume
Auxiliary indicators are include Directional Movement Index, trading volume, Commodity Channel Index,volume-weighted average price,Range Filter
Why is it not applicable to other trading varieties or exchanges?
Because the activity of each trading target is different from the trading volume, this strategy is very focused on the change of trading volume, so it may not be applicable to every trading variety
The idea of this strategy is to chase when the trend in the market is clear
Determine whether to break support or resistance to identify trends
But the market is full of false breakouts
Therefore, trading volume is an important indicator for judging the true and false.
Therefore, when the price breaks through support or resistance, accompanied by a huge trading volume, and forms a resonance with auxiliary indicators, the strategy will follow the trend, a time stop loss is also set. After entering the market, if there is no immediate profit to the stop profit, you will leave the market first.
But the market is always random, so the profit and loss ratio must be taken into account
Use a fixed stop loss space in exchange for a larger profit space, and ensure that the expected value is positive to make stable profits in the market
Therefore, this strategy uses 3.2% stop loss, 3.3% Take profit1 and 7.2% take profit2
About 1.5:1 profit and loss ratio to ensure positive expected value
Because the market has a clear trend only about 10% of the time
So the trading frequency of this strategy is very low
According to the backtest of up to 2021-01-01 till now , it takes about 5 days to make a transaction
User can choose their own leverage to obtain higher returns. But be sure to prioritize risk.
In order to prevent you from using this strategy without knowing it, the trading date of this strategy is only executed until the release date, and positions will not be opened and closed for subsequent markets.
You can contact me if you want to know more about this strategy
這是專門用於幣安1H圖表中btcusdtperp的交易策略
本策略最重要的部分是將支撐和阻力與交易量一起使用
輔助指標包括ADX,成交量,CCI,VWAP,Range Filter等
為什麼不適用於其他交易品種或交易所？
由於每個交易標的的活躍度與交易量不同，本策略非常注重交易量的變化，因此不一定適用於每個交易品種
這個策略的方法是在趨勢明朗的時候進行趨勢跟隨
確定是否打破支撐或阻力以識別趨勢
但市場充滿假突破
因此，成交量是判斷真假的重要指標。
當價格突破支撐位或阻力位，伴隨著巨大的成交量，並與輔助指標形成共振時，策略會順勢而為，同時設置時間止損。進場後，如果沒有立即獲利到止盈，就離場。
但市場總是隨機的，所以必須考慮盈虧比
用固定的止損空間換取更大的盈利空間，保證預期值為正，才能在市場中穩定獲利
因此，該策略使用 3.2% 止損、3.3% 止盈1 和 7.2% 止盈2
約1.5:1盈虧比，確保正期望值
因為市場只有大約 10% 的時間有明顯的趨勢
所以這個策略的交易頻率很低
根據2021-01-01至今的回測，交易頻率大約5天一次
用戶也可以選擇適合自己的槓桿以獲得更高的收益。但一定要優先考慮風險。
為防止您在不知情的情況下使用本策略，本策略的運行交易的日期僅至2023-05-30止，後續日期將不開倉和平倉。
如果您想了解更多有關此策略的信息，可以聯繫我。
Chop and Trend Index (CTI)The Chop and Trend Index (CTI) is a unique indicator that provides a different perspective on market conditions compared to traditional oscillators. It is designed to identify periods of market chop and strong trends, and it does so by combining two key components: the number of halfback taps and the strength of the trend.
The CTI is calculated by first determining the number of halfback taps over a user-defined length of time. A halfback tap occurs when the high or low of a bar reaches the midpoint (halfback level) of the previous bar. This is a measure of market chop: the more halfback taps, the choppier the market. The fewer halfback taps, the stronger the trend.
The strength of the trend is determined using the Average Directional Index (ADX), a popular trend strength indicator. The ADX is calculated based on the directional movement of the market, with higher values indicating stronger trends.
The CTI combines these two components by multiplying the normalized number of halfback taps by the ADX value. This results in an indicator that rises during strong trends with few halfback taps (either up or down) and falls during periods of market chop.
The CTI is not a directional indicator. Unlike the Relative Strength Index (RSI) or other oscillators, high values do not indicate overbought conditions, and low values do not indicate oversold conditions. Instead, high values indicate a strong trend (and possibly trend exhaustion), while low values indicate strong chop (and possibly an impending breakout in either direction).
The CTI can be used on any market and any timeframe, but it may be particularly useful on longer timeframes where periods of chop and trend are more pronounced.
The CTI includes several user inputs :
Length : This determines the number of bars over which the number of halfback taps is calculated. Increasing this value will make the CTI less sensitive to recent market conditions, while decreasing it will make the CTI more sensitive.
Normalization Window Length : This determines the number of bars over which the CTI is normalized. The CTI is normalized to a scale of 0 to 100 to make it easier to compare across different markets and timeframes.
Chop Threshold : This is the CTI value below which an alert will be triggered indicating a period of severe chop. This could signal an impending breakout and potential upcoming volatility.
Trend Exhaustion Threshold : This is the CTI value above which an alert will be triggered indicating potential trend exhaustion. This could signal a possible mean reversion.
The CTI also includes four colored threshold lines at 10, 25, 75, and 90. These thresholds can be used as a guide to identify periods of chop and trend. For example, CTI values below 10 or above 90 could indicate extreme conditions.
The CTI provides two alert conditions :
Low Threshold Crossed : This alert is triggered when the CTI falls below the user-defined Chop Threshold. This could signal a period of severe chop and the potential for upcoming volatility.
High Threshold Crossed : This alert is triggered when the CTI rises above the user-defined Trend Exhaustion Threshold. This could signal potential trend exhaustion and the possibility of mean reversion.
In conclusion, the CTI is a unique and versatile indicator that can provide valuable insights into market conditions. By identifying periods of chop and trend, it can help traders anticipate potential breakouts and reversals, and adjust their strategies accordingly.
Volatility Adjusted ADX (VADX)I sincerely wish to express my heartfelt gratitude to the vast community of coders on TradingView who have previously crafted various Average Directional Index (ADX) scripts. Their innovative approaches have laid a solid foundation, and I'm incredibly grateful for their inspiring work. In essence, their accomplishments have ignited the creative spark that led to the development of the Volatility Adjusted ADX (VADX) script.
VADX is not your run-of-the-mill script. It distinguishes itself from the myriad of ADX indicators on TradingView due to its unique volatility-adjustment mechanism. The primary purpose of this script is to augment the ADX's ability to quantify trend strength by introducing a layer of sensitivity to volatility shifts through the Average True Range (ATR). The interaction between these two crucial market measurements is where the novelty lies.
While the standard ADX does an excellent job of diagnosing the trend's vigor, its evaluation can sometimes be skewed when markets oscillate between periods of high and low volatility. Integrating the ATR – a reliable indicator of market volatility – into the ADX calculation mitigates this limitation, resulting in a more robust, volatility-adjusted trend strength measurement.
The specifics of the mathematical adjustment, our secret ingredient, will remain undisclosed for proprietary reasons. Nevertheless, I assure you that it creates a dynamic and balanced interplay between the trend strength and volatility, enabling a more nuanced understanding of the market.
The VADX script is user-friendly and includes three main inputs: ADX Smoothing, DI Length, and ATR Length. The ADX Smoothing parameter refines the ADX calculation, DI Length determines the period for the Directional Movement System calculation, and the ATR Length sets the period for the Average True Range.
Using this indicator is as easy as pie. After adding it to your chart, VADX will manifest itself as a separate panel beneath your price chart. When the VADX is escalating, it indicates that the strength of the trend is intensifying. Conversely, a declining VADX suggests diminishing trend strength. Two horizontal lines at the 25 and 75 levels provide a simple interpretation guide – they denote weak and strong trend phases, respectively.
This robust indicator is adaptable and can be effectively applied across multiple markets - from stocks, forex, and futures to cryptocurrencies. It also delivers valuable insights on any timeframe. However, as with any new indicator, I highly recommend initial testing and optimization to match your unique trading style and objectives.
To wrap up, the VADX indicator sets itself apart with its novel volatility adjustment, a feature not commonly found in existing TradingView scripts. This distinctive capability affords traders a more comprehensive view of the trend's strength by accounting for market volatility, adding an extra layer of depth to traditional ADX interpretation. I sincerely hope that this script enriches your trading arsenal and assists you in navigating the market with enhanced precision. As always, happy trading!
Dynamic Action Convergence DivergenceGoodbye MACD. Hello DACD.
The Dynamic Action Convergence Divergence (DACD) indicator presents a unique approach to understanding market trends and potential price reversals. This indicator is distinctly different from the currently published scripts in the following ways:
1. The DACD is rooted in the principles of the Average Directional Index (ADX) — especially as construed by the helpful work of @robertkowalski — but innovates by focusing on the divergence and convergence of the directional movement indicators (DI+ and DI-). This focus offers a more dynamic perspective on price action.
2. The DACD incorporates a histogram representation of the difference between DI+ and DI-, making it easier to visually interpret periods of divergence (potential reversal points) and convergence (potential continuation points).
3. It further enhances interpretation by applying a familiar color scheme to the histogram, allowing for an immediate visual understanding of the trend direction and its strength.
4. Unique to the DACD, it scales the difference between DI+ and DI-, applies a moving average, and then represents this as a line on the graph (referred to as "DI+ - DI-"). This line provides a smoothed view of the difference between DI+ and DI-, offering additional insight into the trend's characteristics.
5. Finally, a second moving average is calculated over the "DI+ - DI-" line, creating a signal line akin to the MACD's signal line. This signal line provides a benchmark to the "DI+ - DI-" line, indicating potential points of trend exhaustion and reversal.
The DACD can be used across various markets, including equities, commodities, forex, and cryptocurrencies, making it a versatile tool for any trader's arsenal. As with any technical indicator, the DACD should be used in conjunction with other indicators and forms of analysis to confirm signals and make more informed trading decisions.
The DACD excels in trending markets where it can highlight potential continuation and reversal points. However, during periods of consolidation or sideways moving markets, the DACD may provide less reliable signals. Therefore, it's essential to consider the overall market context when using the DACD.
The originality of the DACD lies in its novel application of the concepts from the ADX, its unique presentation style, and the additional moving averages applied to the difference between DI+ and DI-. These factors contribute to a unique trading indicator that stands apart from the crowd and offers new opportunities for technical analysis.
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POSTSCRIPT: DACD VS MACD
Goodbye MACD. Hello DACD.
The MACD and DACD, while visually similar due to the familiar color scheme, are fundamentally different in their logic and data processing.
MACD is a trend-following momentum indicator, using the relationship between two moving averages of a security’s price. Its color scheme is well-recognized, assisting traders in quickly interpreting market momentum and potential trend shifts.
On the other hand, DACD, while maintaining a similar visual style for ease of adoption, is rooted in the principles of the Average Directional Index (ADX). It focuses on the divergence and convergence of the directional movement indicators (DI+ and DI-), providing a dynamic perspective on price action.
The familiar color scheme is purposefully used to facilitate easier transition for traders from MACD to DACD, despite their different underpinnings. This allows users to intuitively understand the new indicator while benefiting from its unique insight into market trends.
Trend Momentum SynthesizerBy analyzing the MACD (Moving Average Convergence Divergence) and Squeeze Momentum indicators, this indicator helps identify potential bullish, bearish, or undecided market conditions.
The algorithm within considers the positions of the MACD and Squeeze Momentum indicators to determine the overall market sentiment. When the indicators align and indicate a bullish market condition, the indicator's plot color will be either dark green, green, yellow, or lime, indicating a potential bullish trend. Conversely, if the indicators align and indicate a bearish market condition, the plot color will be maroon or red, denoting a potential bearish trend. When the indicators are inconclusive, the plot color will be orange, suggesting an undecided market.
The ADX is an addon component of this indicator, helping to assess the strength of a trend. By analyzing the ADX, the indicator determines whether a trend is strong enough, providing additional confirmation for potential trade signals. The ADX smoothing and DI (Directional Index) length parameters can be customized to suit individual trading preferences.
By combining these indicators, the algorithm provides traders with a comprehensive view of the market, helping them make informed trading decisions. It aims to assist traders in identifying potential market opportunities and aligns with the objective of maximizing trading performance.
How to use the indicator:
Note: I used back-testing for fine tuning do not base your trades on signals from the testing framework.
Fetch ATR + MA StrategyA trend following indicator that allows traders/investors to enter trades for the long term, as it is mainly tested on the daily chart. The indicator fires off buy and sell signals. The sell signals can be turned off as trader can decide to use this indicator for long term buy signals. The buy signals are indicated by the green diamonds, and the red diamonds show the points on then chart where the asset can be sold.
The indicator uses a couple indicators in order to generate the buy signals:
- ADX
- ATR
- Moving Average of ATR
- 50 SMA
- 200 SMA
The buy signal is generated at the cross overs of the 50 and 200 SMA's while the ATR is lower than then Moving Average of the ATR. The buy signal is fired when these conditions are met and if the ADX is lower than 30.
The thought process is as follows:
When the ATR is lower than its moving average, the price should be in a low volatilty environment. An ADX between 25 and 50 signals a Strong trend. Every value below 25 is an absent or weak trend. So entering a trade when the volatilty is still low but increasing, you'll be entering a trade at the start of a new uptrend. This mechanism also filters out lots of false signals of the simple cross overs.
The sell signals are fired every time the 50 SMA drops below the 200 SMA.
