Multi Kernel Regression [ChartPrime]The "Multi Kernel Regression" is a versatile trading indicator that provides graphical interpretations of market trends by using different kernel regression methods. It's beneficial because it smoothes out price data, creating a clearer picture of price movements, and can be tailored according to the user's preference with various options.
What makes this indicator uniquely versatile is the 'Kernel Select' feature, which allows you to choose from a variety of regression kernel types, such as Gaussian, Logistic, Cosine, and many more. In fact, you have 17 options in total, making this an adaptable tool for diverse market contexts.
The bandwidth input parameter directly affects the smoothness of the regression line. While a lower value will make the line more sensitive to price changes by sticking closely to the actual prices, a higher value will smooth out the line even further by placing more emphasis on distant prices.
It's worth noting that the indicator's 'Repaint' function, which re-estimates work according to the most recent data, is not a deficiency or a flaw. Instead, it’s a crucial part of its functionality, updating the regression line with the most recent data, ensuring the indicator measurements remain as accurate as possible. We have however included a non-repaint feature that provides fixed calculations, creating a steady line that does not change once it has been plotted, for a different perspective on market trends.
This indicator also allows you to customize the line color, style, and width, allowing you to seamlessly integrate it into your existing chart setup. With labels indicating potential market turn points, you can stay on top of significant price movements.
Repaint : Enabling this allows the estimator to repaint to maintain accuracy as new data comes in.
Kernel Select : This option allows you to select from an array of kernel types such as Triangular, Gaussian, Logistic, etc. Each kernel has a unique weight function which influences how the regression line is calculated.
Bandwidth : This input, a scalar value, controls the regression line's sensitivity towards the price changes. A lower value makes the regression line more sensitive (closer to price) and higher value makes it smoother.
Source : Here you denote which price the indicator should consider for calculation. Traditionally, this is set as the close price.
Deviation : Adjust this to change the distance of the channel from the regression line. Higher values widen the channel, lower values make it smaller.
Line Style : This provides options to adjust the visual style of the regression lines. Options include Solid, Dotted, and Dashed.
Labels : Enabling this introduces markers at points where the market direction switches. Adjust the label size to suit your preference.
Colors : Customize color schemes for bullish and bearish trends along with the text color to match your chart setup.
Kernel regression, the technique behind the Multi Kernel Regression Indicator, has a rich history rooted in the world of statistical analysis and machine learning.
The origins of kernel regression are linked to the work of Emanuel Parzen in the 1960s. He was a pioneer in the development of nonparametric statistics, a domain where kernel regression plays a critical role. Although originally developed for the field of probability, these methods quickly found application in various other scientific disciplines, notably in econometrics and finance.
Kernel regression became really popular in the 1980s and 1990s along with the rise of other nonparametric techniques, like local regression and spline smoothing. It was during this time that kernel regression methods were extensively studied and widely applied in the fields of machine learning and data science.
What makes the kernel regression ideal for various statistical tasks, including financial market analysis, is its flexibility. Unlike linear regression, which assumes a specific functional form for the relationship between the independent and dependent variables, kernel regression makes no such assumptions. It creates a smooth curve fit to the data, which makes it extremely useful in capturing complex relationships in data.
In the context of stock market analysis, kernel regression techniques came into use in the late 20th century as computational power improved and these techniques could be more easily applied. Since then, they have played a fundamental role in financial market modeling, market prediction, and the development of trading indicators, like the Multi Kernel Regression Indicator.
Today, the use of kernel regression has solidified its place in the world of trading and market analysis, being widely recognized as one of the most effective methods for capturing and visualizing market trends.
The Multi Kernel Regression Indicator is built upon kernel regression, a versatile statistical method pioneered by Emanuel Parzen in the 1960s and subsequently refined for financial market analysis. It provides a robust and flexible approach to capturing complex market data relationships.
This indicator is more than just a charting tool; it reflects the power of computational trading methods, combining statistical robustness with visual versatility. It's an invaluable asset for traders, capturing and interpreting complex market trends while integrating seamlessly into diverse trading scenarios.
In summary, the Multi Kernel Regression Indicator stands as a testament to kernel regression's historic legacy, modern computational power, and contemporary trading insight.
Bollinger Bands (BB)
Bollinger Bands Lab - by InFinitoVariation of the Moving Average Lab that includes Bollinger Bands functionality for any manually created Moving Average. It includes:
- Standard Deviations for any MA
- Fixed Symmetrical Deviations for any MA that remain at a constant % away from the MA
- The same Moving Average creation settings from the Moving Average Lab
"The Moving Average Lab allows to create any possible combination of up to 3 given MAs. It is meant to help you find the perfect MA that fits your style, strategy and market type.
This script allows to average, weight, double and triple multiple types and lengths of Moving Averages
Currently supported MA types are:
SMA
EMA
VWMA
WMA
SMMA (RMA)
HMA
LSMA
DEMA
TEMA
Features:
- Double or Triple any type of Moving Average using the same logic used for calculating DEMAs and TEMAs
- Average 2 or 3 different types and lengths of Moving Average
- Weight each MA manually
- Average up to 3 personalized MAs
- Average different Moving Averages with different length each "
The preview screenshot shows:
- The combination of:
- 200 LSMA - Weight: 1
- 200 HMA - Weight: 2
- 200 VWMA - Weight: 1 - Double
- The regular Bollinger Band setting, 2 standard deviations
- Two fixed symmetrical deviations at 15% and 20% away from the XMA
Bollinger Bands and SMA Channel Buy and Sell
This Indicator is a combination of a standard BB indicator incorporated with a SSL Channel by ErwinBeckers which is Simple Moving average with a length of set at 10 (Default) and calculates the high and low set for the default 10 to form a Channel.
The Settings for the Bollinger Band is the standard settings on a normal Bollinger Band - Length 20, source close and Standard dev 2
The setting for the SMA is length 10 and the high and low calculated or that length to form a channel.
The SMA Channel gives a green line for the Up channel and the Red line for the down Channel.
The basis of the indicator is that the Candle close above the Basis line of the BB and the SMA green line will give a buy indicator
and the same for Sell indicator the candle close below the basis BB and the SMA line Red will give a Sell indicator.
Please note that this indicator is a mix of 2 basic indicators found in Trading view, giving Buy and Sell indicators to make things easier to not look for this visually.
This code will be open source for anyone to use or back test or use it for whatever they want.
This code is for my own personal trading and cannot be relied upon. This indicator cannot be used and cannot guarantee anything, and caution should always be taken when trading. Use this with other indicators to give certanty.
Again use this for Paper Trading only.
I want to thank TradingView for its platform that facilitates development and learning.
Banded Chikou Breakout — Quantifying Ichimoku MomentumTitle: Banded Chikou Breakout — Quantifying Ichimoku Momentum
Overview:
Banded Chikou Breakout (BCB) is a unique, algorithmic script designed to augment the capabilities of traders seeking substantial breakout opportunities. Constructed on the robust principles of the Ichimoku trading strategy, BCB is designed to quantify and filter the Chikou Span's significant breakouts above or below the price action. This script does not aim to replace the Ichimoku system; instead, it enhances it, providing an optimized tool for momentum trading.
Rationale:
Ichimoku traders often scrutinize the Chikou Span's position relative to price action to identify market trends. However, determining whether the Chikou Span is above or below due to a genuine trend or mere market noise can be challenging in choppy markets. BCB resolves this predicament by offering a unique way to interpret the Chikou Span's movement. It does so by quantifying the Chikou Span's momentum and utilizing Bollinger Bands to determine its significance. By effectively differentiating substantial movements from the insignificant, BCB can help traders better navigate the market and increase their potential for profitable trades.
How it Works:
BCB combines three key elements: a Momentum Script (simulating Chikou Span), a Bollinger Band Script, and a Timeframe Switcher, all working together to provide a refined trading perspective.
Momentum Script: Calculates the price difference between the current price and the price 'n' periods ago, transforming the Chikou Span into a quantifiable momentum value that signifies the strength and speed of a market move.
Bollinger Band Script: Computes a Simple Moving Average (SMA) around the momentum, plotting two 'bands' at a specified standard deviation from this SMA. This functionality allows traders to discern when the Chikou Span's momentum is abnormally high or low, signifying a potential significant breakout.
Timeframe Switcher: This feature lets traders apply the BCB script to a different timeframe from the one they are currently viewing. This capability can help traders identify higher timeframe breakouts and trade them with precision on the lower timeframe.
How to Use:
BCB is designed to complement the Ichimoku strategy for effective breakout identification.
Add the BCB script to your trading chart. It plots the momentum (yellow line) and Bollinger Bands (green lines) with the area between the bands shaded blue.
Utilize the Ichimoku strategy to identify larger and smaller timeframe trends.
Optional: Leverage the timeframe switcher to synchronize your trades with higher timeframe trends while operating on lower timeframes.
If the BCB momentum line crosses the upper Bollinger Band while the Ichimoku indicates a bullish trend, it signifies a potential significant upward breakout. Similarly, a cross below the lower band during a bearish trend could denote a significant downward breakout.
Remember, without the context provided by the Ichimoku system's trend analysis, BCB can yield false breakouts. It is, therefore, crucial to use these tools in tandem. I like to check for an Ichimoku trend on the 4H and 1H charts, and then use BCB on charts <60 minutes to capture trends with precision.
TTP VIX SpyTTP VIX Spy is an indicator that uses data from TVC:VIX to better time entries in the market.
The assumption used is that when the VIX is coming down from the top of its range then the risk on assets can move to the upside and when the VIX is is pushing higher there's a high likelihood or risk on assets going down.
This indicator observes the momentum of VIX using MACD. It offers two different signals both for longs and shorts: signal 1 and 2.
Signal 1 is activate when the begging of a new trend for the VIX is confirmed.
Signal 2 is activated when the VIX pulls back from an extreme value.
You can configure the parameters of the internal super trend and the look back for the slope applied to price and RSIs.
The indicator offers the following filter parameters:
- Price RSI slope: it filters signals that have RSI slope pointing in the opposite direction of the signal.
- Counter trend: it filters signals that are not counter trending super trend.
- Wide BBW: it filters signals that happen when there hasn't been high price volatility
- Price slope: it filters signals when the price is not pointing in the direction of the signal (buy: up, sell: down)
- VIX RSI filter: it filters VIX RSI values overextended. MACD can be in the right range, but sometimes RSI contradicts it. By default is OFF since it can cause false negatives.
- Working days only: it filters signals that occur in the weekend.
The colours below the price action show how the VIX momentum is changing. Transitions from red into pink and then green show how the fear is fading which tends to lead to lead to bullish moves, and the opposite when the transitions are from green to red.
Performance and initial thoughts.
I have tried VIX Spy on both BINANCE:BTCUSDT.P and BINANCE:ETHUSDT.P and it seems to offer a decent win ratio. As you can see I had to add many filter to remove bad entries and left toggles available to decide which ones you want to use.
I tried the signal in the 4H, 1H and 15min with mixed results. I tend to incline for the results in the 1H.
VIX signal offers a backtestable stream and alerts both for signals 1 and 2.
custom Bollinger bands with filters - indicator (AS)-----------Description-------------
This indicator is basically Bollinger bands with many ways to customize. It uses highest and lowest values of upper and lower band for exits. I think something is wrong with the script but cant find any mistakes – most probably smoothing. The ATR filter is implemented but is working incorrectly. In code you can also turn it into strategy but I do not recommend it for now as it is not ready yet.
So this is my first script and I am looking for any advice, ideas to improve this script, sets of parameters, markets to apply, logical mistakes in code or any ideas that you may have. Indicator was initially designed for EURUSD 5MIN but I would be interested in other ideas.
-----------SETTINGS--------------
---START - In starting settings we can choose
Line 1: what parts to use BB/DC/ATR
Line 2: what parts to plot on chart
Line 3 Whether or not apply smoothing to BB or ATR filter
Line 4 Calculate deviation for BB from price or Moving average
Line 5 Fill colors and plot other parts for debug (overlay=false)
Line 6:( for strategy) – enable Long/Short Trades
---BB and DC – here we modify Bollinger bands and Donchian
Line 1: Length and type of BB middle line and also length of DC from BB
Line 2: Length and type of BB standard deviation and multiplier
Line 3: Length and type of BB smoothing and %width for BB filter
---ATR filter – (not ready fully yet)
Line 1: type and length of ATR
Line 2: threshold and smoothing value of ATR
---DATE and SESSION
Line 1: apply custom date or session?
Line 2: session hours settings
Line 3:Custom starting date
Line 4: Custom Ending date
-----------HOW TO USE--------------
We open Long if BB width is bigger than threshold and close when upper band is no longer highest in the period set. Exact opposite with Short
5EMA BollingerBand Nifty Stock Scanner
What ?
We all heard about (well: over-heard) 5-EMA strategy. Which falls into the broader category of mean reversal type of trading setup.
What is mean reversal?
Price (or any time series, in fact) tries to follow a mean . Whenever price diverges from the mean it tries to meet it back.
It is empirically observed by some traders (I honestly don't know who first time observed it) that in Indian context specially, 5 Exponential Moving Average (5-EMA) works pretty good as that mean.
So whenever price moves away from that 5-EMA, it ultimately comes back and attain total nirvana :) Means: if price moved way higher than the 5EMA without touching it, then price will correct to meet it's 5-EMA and if price moved way lower, it will be uplifted to meet it's 5-EMA. Funny - but it works !
Now there are already enough social media coverage on this 5-EMA strategy/setup. Even TradingView has some excellent work done on these setups. Kudos to all those great souls.
So when we came to know about this, we were thinking what we should do for the community. Because it is well cover topic (specially in Indian context). Also, there are public indicators.
Then we thought why not come up with a scanner which will scan all the Nifty-50 constituent stocks and find out on the fly, real-time which all stocks are matching this 5-EMA setup and causing a Buy/Sell trade recommendation.
Hence here we are with the first version of our first scanner on the 5EMA setup (well it has some more masala than merely a 5-EMA setup).
Why?
Parts of why is already covered up.
Now instead of blindly following 5-EMA setup, we added the Bollinger band as well. Again: it's also not new. There are enough coverage in social media about the 5-EMA+BB strategy/setup. We mercilessly borrowed from all of these.
Suppose you have an indicator.
Now you apply the indicator in your chart. And then you need to (rock) and roll through your watchlist of Nifty-50 stocks (note: TradingView has no default watchlist of Nifty-50 stock by default - you have to create one custom watchlist to list all manually) to find out which all are matching the setup, need to take a note about the trade recomendations (entry, SL, target) and other stuffs like VWAP, Volume, volatility (Bollinger Band Width).
Not any more.
This scanner will track all the Nifty-50 stocks (technically: 40 stocks other than Banking stocks) and provide which one to Buy or Sell (if any), what's the entry, SL, target, where is the VWAP of the day, what's the picture in volume (high, low, rising, falling) and the implied volatility (using Bolling band width). Also it has a naive alerting mechanism as well.
In fact the code is there to monitor the (Future) OI also and all the OI drama (OI vs price and all the 4 stuffs like long build up, long unwinding, short covering, short buildup). But unfortunately, due to some limitations of the TradingView (that one can not monitor more than 40 `ta.security` call) we have to comment out the code. If you wish you can monitor only 20 stocks and enable the OI monitoring also (20 for stocks + 20 for their OI monitoring .. total 40 `ta.security` call).
How?
To know the divergence from 5-EMA we just check if the high of the candle (on closing) is below the 5-EMA. Then we check if the closing is inside the Bollinger Band (BB). That's a Buy signal. SL: low of the candle, T: middle and higher BB.
Just opposite for selling. 5-EMA low should be above 5-EMA and closing should be inside BB (lesser than BB higher level). That's a Sell signal. SL: high of the candle, T: middle and lower BB.
Along with we compare the current bar's volume with the last-20 bar VWMA (volume weighted moving average) to determine if the volume is high or low.
Present bar's volume is compared with the previous bar's volume to know if it's rising or falling.
VWAP is also determined using `ta.vwap` built-in support of TradingView.
The Bolling Band width is also notified, along with whether it is rising or falling (comparing with previous candle).
Simple, but effective.
Customization
As usual the EMA setup (5 default), the BB setup (20 SMA with 1.5 standard deviation), we provided option wherther to include or exclude BB role in the 5-EMA setup (as we found out there are two schools of thought .. some people use BB some don't. Lets make all happy :))
We also provide options to choose other symbols using Settings if they wish so. We have the default 40 non banking Nifty stocks (why non-banking? - Bank Nifty is in ATH :) .. enough :)). But if user wishes can monitor others too (provided the symbol is there in TradingView).
Although we strongly recommend the timeframe as 30 minutes , you can choose what's fit you most.
The output of the scanner is a table. By default the table is placed in the right-bottom (as we are most comfortable with that). However you can change per your wish. We have the option to choose that.
What is unique in it ?
This is more of an indicator. This is a scanner (of Nifty-50 stocks). So you can apply (our recommendation is in 30m timeframe) it to any chart (does not matter which chart it is) and it will show every 30 mins (which is also configurable) which all stocks (along with trade levels) to Buy and Sell according to the setup.
It will ease your trading activity.
You can concentrate only on the execution, the filtering you can leave it to this one.
Limitations
There is a build in limitation of the TradingView platform is that one can call only upto 40 securities API. Not beyond that. So naturally we are constraint by that. Otherwise we could monitor 190 Nifty F&O stocks itself.
30m is the recommended timeframe. In very lower (say 5m) this script tends to go out of heap (out of memory). Please note that also.
How to trade using this?
Put any chart in 30m (recommended) timeframe.
Apply this screener from Indicators (shortcut to launch indicators is just type / in your keyboard).
This will provide the Buy (shown in green color) or Sell (shown in red color) recommendations in a table, at every 30m candle closing.
Note the volume and BB width as well.
Wait for at least 2 5-minutes candles to close above/below the recommended level .
Take the trade with the SL and target mentioned.
Mentions
@QuantNomad. The whole implementation concept we mercilessly borrowed from him, even some of his code snippet we took it (after asking him through one of his videos comment section and seeking explicit permission which he readily granted within an hour). Thank You sir @QuantNomad. Indebted to you.
Monika (Rawat) ji: for reviewing, correcting, providing real time examples during live market hours, often compromising her own trading activities, about the effectiveness and usefulness of this setup. Thank You madam ji. Indebted to you.
There are innumerable contents in social media about this. Don't even know whom all we checked. Thanks to all of them.
Happy Trading (in stocks - isn't enough of Indices already?)
Disclaimer
This piece of software does not come up with any warrantee or any rights of not changing it over the future course of time.
We are not responsible for any trading/investment decision you are taking out of the outcome of this indicator.
SuperBollingerTrend (Expo)█ Overview
The SuperBollingerTrend indicator is a combination of two popular technical analysis tools, Bollinger Bands, and SuperTrend. By fusing these two indicators, SuperBollingerTrend aims to provide traders with a more comprehensive view of the market, accounting for both volatility and trend direction. By combining trend identification with volatility analysis, the SuperBollingerTrend indicator provides traders with valuable insights into potential trend changes. It recognizes that high volatility levels often accompany stronger price momentum, which can result in the formation of new trends or the continuation of existing ones.
█ How Volatility Impacts Trends
Volatility can impact trends by expanding or contracting them, triggering trend reversals, leading to breakouts, and influencing risk management decisions. Traders need to analyze and monitor volatility levels in conjunction with trend analysis to gain a comprehensive understanding of market dynamics.
█ How to use
Trend Reversals: High volatility can result in more dramatic price fluctuations, which may lead to sharp trend reversals. For example, a sudden increase in volatility can cause a bullish trend to transition into a bearish one, or vice versa, as traders react to significant price swings.
Volatility Breakouts: Volatility can trigger breakouts in trends. Breakouts occur when the price breaks through a significant support or resistance level, indicating a potential shift in the trend. Higher volatility levels can increase the likelihood of breakouts, as they indicate stronger market momentum and increased buying or selling pressure. This indicator triggers when the volatility increases, and if the price is near a key level when the indicator alerts, it might trigger a great trend.
█ Features
Peak Signal Move
The indicator calculates the peak price move for each ZigZag and displays it under each signal. This highlights how much the market moved between the signals.
Average ZigZag Move
All price moves between two signals are stored, and the average or the median is calculated and displayed in a table. This gives traders a great idea of how much the market moves on average between two signals.
Take Profit
The Take Profit line is placed at the average or the median price move and gives traders a great idea of what they can expect in average profit from the latest signals.
-----------------
Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
FibonRSI / ErkOziHello,
This software is a technical analysis script written in the TradingView Pine language. The script creates a trading indicator based on Fibonacci retracement levels and the RSI indicator, providing information about price movements and asset volatility by using Bollinger Bands.
There are many different scripts in the market that draw RSI and Fibonacci retracement levels. However, this script was originally designed by me and shared publicly on TradingView.
***The indicator uses RSI (Relative Strength Index) and Bollinger Bands (BB) as the basis for the FibonRSI strategy. RSI measures the strength of a price movement, and BB measures the volatility of an asset. The FibonRSI strategy is based on the idea that the Fibonacci ratios and RSI can be used to predict a asset's price retracement levels.
***The script allows for various parameters to be adjusted. Users can specify the price source type and adjust the periods for RSI and Bollinger Bands. The standard deviation number for Bollinger Bands can also be customized.
***The script calculates the current RSI indicator position and the basic, upper, and lower levels of Bollinger Bands. It then calculates and draws the Fibonacci retracement levels. The color of the RSI line is determined by the upper and lower distribution levels of Bollinger Bands. Additionally, the color of the Fibonacci retracement levels can also be customized by the user.
***This script can be used to determine potential buy and sell signals using Fibonacci retracement levels and RSI. For example, when the RSI is oversold and the price is close to a Fibonacci retracement level, it can be interpreted as a buying opportunity. Similarly, when the RSI is overbought and the price is close to a Fibonacci retracement level, it can be interpreted as a selling opportunity.
***The script takes input parameters such as the price source used for calculation, the period for the RSI indicator, the period for the Moving Average in Bollinger Bands, and the number of standard deviations used in Bollinger Bands.
***The script's conditions include elements such as calculating the current position of the RSI indicator, calculating the upper and lower Bollinger Bands, calculating the dispersion factor, and calculating Fibonacci levels.
***The parameters in the code can be adjusted for calculation, including the price type used, the RSI period, the Moving Average period for BB, and the standard deviation count for BB. After this, the current position of the RSI, Moving Average, and standard deviation for BB are calculated. After calculating the upper and lower BB, the levels above and below the average are calculated using a specific dispersion constant.
CONDITIONS FOR THE SCRIPT
current_rsi = ta.rsi(src, for_rsi) // Current position of the RSI indicator
basis = ta.ema(current_rsi, for_ma)
dev = for_mult * ta.stdev(current_rsi, for_ma)
upper = basis + dev
lower = basis - dev
dispersion = 1
disp_up = basis + (upper - lower) * dispersion
disp_down = basis - (upper - lower) * dispersion
// Fibonacci Levels
f100 = basis + (upper - lower) * 1.0
f78 = basis + (upper - lower) * 0.78
f65 = basis + (upper - lower) * 0.65
f50 = basis
f35 = basis - (upper - lower) * 0.65
f23 = basis - (upper - lower) * 0.78
f0 = basis - (upper - lower) * 1.0
***When calculating Fibonacci levels, the distance between the average of BB and the upper and lower BB is used. These levels are 0%, 23.6%, 35%, 50%, 65%, 78.6%, and 100%. Finally, the RSI line that changes color according to a specific RSI position, Fibonacci levels, and BB are visualized. Additionally, the levels of 70, 30, and 50 are also shown.
The script then sets the color of the RSI position according to the EMA and draws Bollinger Bands, RSI, Fibonacci levels, and the 70, 30, and 50 levels.
In conclusion, this script enables traders to analyze market trends and make informed decisions. It can also be customized to suit individual trading strategies.
This script analyzes the RSI indicator using Bollinger Bands and Fibonacci levels. The default settings are 14 periods for RSI, 233 periods and 2 standard deviations for BB. The MA period inside BB is selected as the BB period and is used when calculating Fibonacci levels.
***The reason for selecting these settings is to provide enough time for BB period to confirm a possible trend. Additionally, the MA period inside BB is matched with the BB period and used when calculating Fibonacci levels.
***Fibonacci levels are calculated from the distance between the upper and lower bands of BB and show how RSI movement is related to these levels. Better results can be achieved when RSI periods are set to Fibonacci numbers such as 21, 55, and 89. Therefore, the use of Fibonacci numbers is recommended when adjusting RSI periods. Fibonacci numbers are among the technical analysis tools that can capture the reflection of naturally occurring movements in the market. Therefore, the use of Fibonacci numbers often helps to better track fluctuations in the market.
Finally, the indicator also displays the 70 and 30 levels and the middle level (50) with Fibonacci levels drawn in circles. Changing these settings can help optimize the Fibonacci levels and further improve the indicator.
Thank you in advance for your suggestions and opinions......
Probability Envelopes (PBE)Introduction
In the world of trading, technical analysis is vital for making informed decisions about the future direction of an asset's price. One such tool is the use of indicators, mathematical calculations that can help traders predict market trends. This article delves into an innovative indicator called the Probability Envelopes Indicator, which offers valuable insights into the potential price levels an asset may reach based on historical data. This in-depth look explores the statistical foundations of the indicator, highlighting its key components and benefits.
Section 1: Calculating Price Movements with Log Returns and Percentages
The Probability Envelopes Indicator provides the option to use either log returns or percentage changes when calculating price movements. Each method has its advantages:
Log Returns: These are calculated as the natural logarithm of the ratio of the current price to the previous price. Log returns are considered more stable and less sensitive to extreme price fluctuations.
Percentage Changes: These are calculated as the percentage difference between the current price and the previous price. They are simpler to interpret and easier to understand for most traders.
Section 2: Understanding Mean, Variance, and Standard Deviation
The Probability Envelopes Indicator utilizes various statistical measures to analyze historical price movements:
Mean: This is the average of a set of numbers. In the context of this indicator, it represents the average price movement for bullish (green) and bearish (red) scenarios.
Variance: This measure represents the dispersion of data points in a dataset. A higher variance indicates a greater spread of data points from the mean. Variance is calculated as the average of the squared differences from the mean.
Standard Deviation: This is the square root of the variance. It is a measure of the amount of variation or dispersion in a dataset. In the context of this indicator, standard deviations are used to calculate the width of the bands around the expected mean.
Section 3: Analyzing Historical Price Movements and Probabilities
The Probability Envelopes Indicator examines historical price movements and calculates probabilities based on their frequency:
The indicator first identifies and categorizes price movements into bullish (green) and bearish (red) scenarios.
It then calculates the probability of each price movement occurring by dividing the frequency of the movement by the total number of occurrences in each category (bullish or bearish).
The expected green and red movements are calculated by multiplying the probabilities by their respective price movements and summing the results.
The total expected movement, or weighted average, is calculated by combining the expected green and red movements and dividing by the total number of occurrences.
Section 4: Constructing the Probability Envelopes
The Probability Envelopes Indicator utilizes the calculated statistics to construct its bands:
The expected mean is calculated using the total expected movement and applied to the current open price.
An exponential moving average (EMA) is used to smooth the expected mean, with the smoothing length determining the degree of responsiveness.
The upper and lower bands are calculated by adding and subtracting the mean green and red movements, respectively, along with their standard deviations multiplied by a user-defined multiplier.
Section 5: Benefits of the Probability Envelopes Indicator
The Probability Envelopes Indicator offers numerous advantages to traders:
Enhanced Decision-Making: By providing probability-based estimations of future price levels, the indicator can help traders make more informed decisions and potentially improve their trading strategies.
Versatility: The indicator is applicable to various financial instruments, such as stocks, forex, commodities, and cryptocurrencies, making it a valuable tool for traders in different markets.
Customization: The indicator's parameters, including the use of log returns, multiplier values, and smoothing length, can be adjusted according to the user's preferences and trading style. This flexibility allows traders to fine-tune the Probability Envelopes Indicator to better suit their needs and goals.
Risk Management: The Probability Envelopes Indicator can be used as a component of a risk management strategy by providing insight into potential price movements. By identifying potential areas of support and resistance, traders can set stop-loss and take-profit levels more effectively.
Visualization: The graphical representation of the indicator, with its clear upper and lower bands, makes it easy for traders to quickly assess the market and potential price levels.
Section 6: Integrating the Probability Envelopes Indicator into Your Trading Strategy
When incorporating the Probability Envelopes Indicator into your trading strategy, consider the following tips:
Confirmation Signals: Use the indicator in conjunction with other technical analysis tools, such as trend lines, moving averages, or oscillators, to confirm the strength and direction of the market trend.
Timeframes: Experiment with different timeframes to find the optimal settings for your trading strategy. Keep in mind that shorter timeframes may generate more frequent signals but may also increase the likelihood of false signals.
Risk Management: Always establish a proper risk management strategy that includes setting stop-loss and take-profit levels, as well as managing your position sizes.
Backtesting: Test the Probability Envelopes Indicator on historical data to evaluate its effectiveness and fine-tune its parameters to optimize your trading strategy.
Section 7: Cons and Limitations of the Probability Envelopes Indicator
While the Probability Envelopes Indicator offers several advantages to traders, it is essential to be aware of its potential cons and limitations. Understanding these can help you make better-informed decisions when incorporating the indicator into your trading strategy.
Lagging Nature: The Probability Envelopes Indicator is primarily based on historical data and price movements. As a result, it may be less responsive to real-time changes in market conditions, and the predicted price levels may not always accurately reflect the market's current state. This lagging nature can lead to late entry and exit signals.
False Signals: As with any technical analysis tool, the Probability Envelopes Indicator can generate false signals. These occur when the indicator suggests a potential price movement, but the market does not follow through. It is crucial to use other technical analysis tools to confirm the signals and minimize the impact of false signals on your trading decisions.
Complex Statistical Concepts: The Probability Envelopes Indicator relies on complex statistical concepts and calculations, which may be challenging to grasp for some traders, particularly beginners. This complexity can lead to misunderstandings and misuse of the indicator if not adequately understood.
Overemphasis on Past Data: While historical data can be informative, relying too heavily on past performance to predict future movements can be limiting. Market conditions can change rapidly, and relying solely on past data may not provide an accurate representation of the current market environment.
No Guarantees: The Probability Envelopes Indicator, like all technical analysis tools, cannot guarantee success. It is essential to approach trading with realistic expectations and understand that no indicator or strategy can provide foolproof results.
To overcome these limitations, it is crucial to combine the Probability Envelopes Indicator with other technical analysis tools and utilize a comprehensive risk management strategy. By doing so, you can better understand the market and increase your chances of success in the ever-changing financial markets.
Section 8: Probability Envelopes Indicator vs. Bollinger Bands
Bollinger Bands and the Probability Envelopes Indicator are both technical analysis tools designed to identify potential support and resistance levels, as well as potential trend reversals. However, they differ in their underlying concepts, calculations, and applications. This section will provide a deep dive into the differences between these two indicators and how they can complement each other in a trading strategy.
Underlying Concepts and Calculations:
Bollinger Bands:
Bollinger Bands are based on a simple moving average (SMA) of the price data, with upper and lower bands plotted at a specified number of standard deviations away from the SMA.
The distance between the bands widens during periods of increased price volatility and narrows during periods of low volatility, indicating potential trend reversals or breakouts.
The standard settings for Bollinger Bands typically involve a 20-period SMA and a 2 standard deviation distance for the upper and lower bands.
Probability Envelopes Indicator:
The Probability Envelopes Indicator calculates the expected price movements based on historical data and probabilities, utilizing mean and standard deviation calculations for both upward and downward price movements.
It generates upper and lower bands based on the calculated expected mean movement and the standard deviation of historical price changes, multiplied by a user-defined multiplier.
The Probability Envelopes Indicator also allows users to choose between using log returns or percentage changes for the calculations, adding flexibility to the indicator.
Key Differences:
Calculation Method: Bollinger Bands are based on a simple moving average and standard deviations, while the Probability Envelopes Indicator uses statistical probability calculations derived from historical price changes.
Flexibility: The Probability Envelopes Indicator allows users to choose between log returns or percentage changes and adjust the multiplier, offering more customization options compared to Bollinger Bands.
Risk Management: Bollinger Bands primarily focus on volatility, while the Probability Envelopes Indicator incorporates probability calculations to provide additional insights into potential price movements, which can be helpful for risk management purposes.
Complementary Use:
Using both Bollinger Bands and the Probability Envelopes Indicator in your trading strategy can offer valuable insights into market conditions and potential price levels.
Bollinger Bands can provide insights into market volatility and potential breakouts or trend reversals based on the widening or narrowing of the bands.
The Probability Envelopes Indicator can offer additional information on the expected price movements based on historical data and probabilities, which can be helpful in anticipating potential support and resistance levels.
Combining these two indicators can help traders to better understand market dynamics and increase their chances of identifying profitable trading opportunities.
In conclusion, while both Bollinger Bands and the Probability Envelopes Indicator aim to identify potential support and resistance levels, they differ significantly in their underlying concepts, calculations, and applications. By understanding these differences and incorporating both tools into your trading strategy, you can gain a more comprehensive understanding of the market and make more informed trading decisions.
In conclusion, the Probability Envelopes Indicator is a powerful and versatile technical analysis tool that offers unique insights into expected price movements based on historical data and probability calculations. It provides traders with the ability to identify potential support and resistance levels, as well as potential trend reversals. When compared to Bollinger Bands, the Probability Envelopes Indicator offers more customization options and incorporates probability-based calculations for a different perspective on market dynamics.
Although the Probability Envelopes Indicator has its limitations and potential cons, such as the reliance on historical data and the assumption that past performance is indicative of future results, it remains a valuable addition to any trader's toolkit. By using the Probability Envelopes Indicator in conjunction with other technical analysis tools, such as Bollinger Bands, traders can gain a more comprehensive understanding of the market and make more informed trading decisions.
Ultimately, the success of any trading strategy relies on the ability to interpret and apply multiple indicators effectively. The Probability Envelopes Indicator serves as a unique and valuable tool in this regard, providing traders with a deeper understanding of the market and its potential price movements. By utilizing this indicator in combination with other tools and techniques, traders can increase their chances of success and optimize their trading strategies.
Bollinger Bands %B (ValueRay)One of the key features of this BB%B is its ability to highlight overbought and oversold conditions. This allows you to make informed decisions on when to enter and exit a trade, helping you maximize your profits and minimize your losses.
- Bollinger Bands %B with the ability to change to a different Time Frame.(Defaults to current Chart Time Frame).
- Ability To Turn On/Off Background Highlighting if BB %B is Above/Below 0 / 1 thresholds.
- Ability To Turn On/Off Background Highlighting when BB %B Crosses back above/unser 0/1 thresholds.
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My personal recommandation use: combine with CM_Ultimate RSI Multi Time Frame (ChrisMoody) and have solid oversold/overbought levels, when hes RSI and my BB %B are bot red/green
Bollinger Band ribbonThis indicator plots 9 upper and lower lines with increasing length. Lines are 0.618 upper and lower level of Bollinger band.
Adaptive Channel BreakoutIntroducing the "Adaptive Channel Breakout" indicator, an advanced charting tool that employs the acb function from the PeacefulIndicators library. This powerful indicator helps traders detect potential breakouts and trends by displaying an adaptive channel on the chart.
Key features of the Adaptive Channel Breakout indicator include:
Customizable input parameters: Adjust the moving average length, volatility length, and multiplier to suit your trading preferences and strategy.
Utilizes the acb function from the PeacefulIndicators library, which calculates the adaptive channel using a simple moving average (SMA) and standard deviation to measure volatility. The function also tracks the trend direction based on price crossovers and crossunders.
Clear visual representation: The adaptive channel is displayed as a linebr plot, with the color indicating the current trend direction (green for uptrends and red for downtrends).
Trend signals: The indicator includes up and down arrow labels that signify potential trend reversals, providing traders with valuable entry and exit points.
Overlay functionality: Designed to be displayed directly on the price chart for easy analysis and correlation with price action.
To use the Adaptive Channel Breakout indicator, simply add the script to your chart and customize the input parameters as needed.
BB_MDL_V1Simple indicator that is based on the average line of the bollinger bands and the exponential average of 200 periods.
The customizable variable is bollinger bands length, currently the default is 35, you can tweak it to your liking and see how trend identification changes.
My recommendation is to work in 5-minute time frames in values such as SOL, FTM or MASK (cryptos)
This simple strategy can be combined with many others to gain more insight and get better market entries and exits.
Trend IndicatorThis indicator has different features:
1. Ichimoku = this indicator can plot Ichimoku calculated both in the common formula and with the volume average, you can choose the calculator method for each line.
2. Channel and Bands = this mode allows the user to choose from channel and band, "channel" shows the Keltner channel, and "band" shows the Bollinger bands. Both the indicators are calculated including the volume in the formula of the average midpoint.
3. Color candle = this function allows the user to see two different colors of candles on the chart, the positive color occurs when both the long-term average and the short team average of price calculated using the volume is above the two averages calculated without the volume. This function is great to analyze the volume pressure, useful to identify trend continuation and exhaustion.
4. Extreme reversal zones = this is a version of the Keltner channels calculated over a high number of candles and with high deviation, to identify the potential zones of reversal.
Note that in the "Ichimoku" indicator, the backline is the T.R.A.M.A. indicator, created and published open source by Lux Algo, which I thank for the script.
+ Bollinger Bands WidthHere is my rendition of Bollinger Bands Width. If you are unfamiliar, Bollinger Bands Width is a measure of the distance between the top and bottom bands of Bollinger Bands. Bollinger Bands themselves being a measure of market volatility, BB Width is a simpler, cleaner way of determining the amount of volatility in the market. Myself, I found the original, basic version of BB Width a bit too basic, and I thought that by adding to it it might make for an improvement for traders over the original.
Simple things that I've done are adding a signal line; adding a 'baseline' using Donchian Channels (such as that which is in my Average Candle Bodies Range indicator); adding bar and background coloring; and adding alerts for increasing volatility, and baseline and signal line crosses. It really ends up making for a much improved version of the basic indicator.
A note on how I created the baseline:
First, what do I mean by 'baseline?' I think of it as an area of the indicator where if the BB Width is below you will not want to enter into any trades, and if the BB Width is above then you are free to enter trades based on your system. It's basically a volatility measure of the volatility indicator. Waddah Attar Explosion is a popular indicator that implements something similar. The baseline is calculated thus: make a Donchian Channel of the BB Width, and then use the basis as the baseline while not plotting the actual highs and lows of the Donchian Channel. Now, the basis of a Donchian Channel is the average of the highs and the lows. If we did that here we would have a baseline much too high, however, by making the basis adjustable with a divisor input it no longer must be plotted in the center of the channel, but may be moved much lower (unless you set the divisor to 2, but you wouldn't do that). This divisor is essentially a sensitivity adjustment for the indicator. Of course you don't have to use the baseline. You could ignore it and only use the signal line, or just use the rising and falling of the BB Width by itself as your volatility measure.
I should make note: the main image above at default settings is an 8 period lookback (so, yes, that is quite fast), and the signal line is a Hull MA set to 13. The background and bar coloring are simply set to the rising and falling of the BB Width. Images below will show some different settings, but definitely play with it yourself to determine if it might be a good fit for your system.
Above, settings are background and bar coloring tuned to BB Width being above the baseline, and also requiring that the BB Width be rising. Background coloring only highlights increasing volatility or volatility above a certain threshold. Grey candles are because the BB Width is above the baseline but falling. We'll see an example without the requirement of BB Width rising, below.
Here, we see that background highlights and aqua candles are more prevalent because I've checked off the requirement that BB Width be rising. The idea is that BB Width is above the baseline therefor there is sufficient volatility to enter trades if our indicators give us the go-ahead.
This here is set to BB Width being above the signal line and also requiring a rising BB Width. Keep in mind the signal line is a Hull MA.
And this fourth and final image uses a volume-weighted MA as the signal line. Bar coloring is turned off, and instead the checkboxes for volatility advancing and declining are turned on under the signal line options. BB Width crosses up the signal line is advancing volatility, while falling below it is declining volatility. Background highlights are set to baseline and not requiring a rising BB Width. This way, with a quick glance you can see if the rising volatility is legitimate, i.e., is the cross up of the signal line coupled with it being above the baseline.
Please enjoy.
Ignition Band Angles are Bollinger Bands with numeric angleI developed Bollinger Bands that provide a numeric value indicating their strength. To achieve this, I used the degree of the angle of attack and color-coded the numbers. The top band displays the number in the upper corner of the chart, the bottom band in the bottom corner, and the Basis is in the left middle. These numbers quantify the slope of the bands, which can be difficult to discern on a chart because stretching out the x and y axis can flatten or exaggerate a slope. With my Bollinger Bands, you get a constant reading that provides an accurate measurement of the angle and strength of a trend. I hope this helps.
Weighted Deviation Bands [Loxx]What are Weighted Deviation Bands?
Variation of the Bollinger bands but it uses linear weighted average and weighted deviation via Mladen Rakic.
What is Weighted Deviation?
This weighted deviation is a sort of all linear weighted deviation. It uses linear weighting in all the steps calculated (which makes it different from the built in deviation in a case when linear weighted ma is used in the ma method). It is more responsive than the standard deviation
Included
Bar coloring
Fibonacci Volatility BandsFibonacci Volatility Bands are just an alternative that allows for more margin than regular Bollinger Bands. They are created based on an average of moving averages that use the Fibonacci sequence as lookback periods.
The use of the Fibonacci Volatility Bands is exactly the same as the Bollinger Bands.
BB Running Away CandleHello,
here is an indicator that can be helpful for your trading that is simple and easy to use.
Our culprit here is a candle that opens and closes below the lower band of Bollinger Band, Black and red lines are put on the high and low of that candle.
Green Arrows are happening when:
1- When candle closes above the black line and Stochastic RSI is in the oversold area >> "Confirmed B"
2- When candle closes above the black line >> "B"
Note that you can choose from the settings whether you want it confirmed or not.
Red Arrows are happening when:
1- Price reached the higher band of Bollinger Bands >> "BB High"
2- Stochastic crosses down from above 80 level >> "Stoch Crossdown"
3- RSI reached above 70 levle >> "RSI Oversold"
Note that you can choose to turn these on or off from the settings.
Settings of indicators are set to default.
NOTE: Alerts are put there however i didn't get the chance to test them, so would like to hear your feedback about them.
THE USE OF THIS INDICATOR IS YOUR OWN RESPONSIBILITY.
wishing you the best.
Faytterro Bandswhat is Faytterro Bands?
it is a channel indicator like "Bollinger Bands".
what it does?
creates a channel using standard deviations and means. thus giving users an idea about the expensive and cheap zones. It uses a special weighted moving average different from standard bollinger bands, it also averages not only price but also deviations.
how it does it?
it uses this formulas:
how to use it?
its usage is the same as "bollinger band".
length represents the number of candles to be taken into account, source represents the source of those candles and stdev represents the coefficient of the standard deviation.
you can use it with other indicators:
Bollinger Bands SignalsDescription:
This indicator works well in trendy markets on long runs and in mean-reverting markets, at almost any timeframe.
That said, higher timeframes are much preferred for their intrinsic ability to cut out noise. The example chart is in 3H TF.
Be mindful, the script shows somewhat erratic jigsaw-like behaviour during consolidation periods when the price
jumps up and down in indecision which way to go. Fortunately, there are scripts out there that detect such periods.
You can choose between 4 Moving Averages, Vidya being the default. Period, Deviation and Bands Width parameters
all of them affect the signal generation.
For the Pine Script coder this script is pretty obvious.
It uses a standard technical analysis indicator - Bollinger Bands - and appends it with a 'width' parameter and
a signal generation procedure.
The signal generation procedure is the heart of this script that keeps the script pumping signals.
The BB width is used as a filter.
You can use this procedure in your own scripts and it will continue generate signals according to your rules.
RSI TREND FILTERRSI TREND Filter on Chart
RSI scaled to fit on chart instead of oscillator, Trend Analysis is easy and Hidden Divergence is revealed using this indicator. This indicator is an aim to reduce confusing RSI Situations. The Oversold and Overbought lines help to determine the price conditions so its easy to avoid Traps.
Oversold and Overbought conditions are marked on Chart to make it useful to confirm a Buy or Sell Signals.
RSI 50 level is plotted with reference to EMA50 and Oversold and Overbought Conditions are calculated accordingly.
Uptrend: RSI Cloud / Candles above RSI 50 Level
Down Trend: RSI Cloud / Candles below RSI 50 Level
Sideways : Candles in the Gray Area above and below RSI 50 Level
Default RSI (14) : is the Candlestick pattern itself
Disclaimer: Use Solely at your own Risk.
