EMA Cross Fibonacci Entry with RetracementThe EMA Cross Fibonacci Entry with Retracement is a trading strategy that combines two popular technical analysis tools: Exponential Moving Averages (EMAs) and Fibonacci retracement levels. Here's a brief overview of how this strategy typically works:
### Exponential Moving Averages (EMAs)
1. **EMAs Calculation**: EMAs give more weight to recent price data, making them more responsive to price changes. Commonly used periods for EMAs in this strategy are the 50-period and 200-period EMAs.
2. **EMA Cross**: The strategy looks for a "golden cross" (short-term EMA crosses above the long-term EMA) as a potential buy signal, and a "death cross" (short-term EMA crosses below the long-term EMA) as a potential sell signal.
### Fibonacci Retracement Levels
1. **Fibonacci Retracement**: This tool is used to identify potential support and resistance levels based on the Fibonacci sequence. The key retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%.
2. **Drawing Retracement Levels**: Traders draw Fibonacci retracement levels from a significant peak to a significant trough (or vice versa) to identify potential retracement levels where the price might reverse.
### Combining EMA Cross with Fibonacci Retracement
1. **Identify EMA Cross**: First, traders look for an EMA cross. For example, a golden cross where a shorter EMA (e.g., 50 EMA) crosses above a longer EMA (e.g., 200 EMA) suggests a bullish trend.
2. **Wait for Retracement**: After identifying a cross, traders wait for the price to retrace to a Fibonacci level. The key levels to watch are 38.2%, 50%, and 61.8%.
3. **Entry Point**: The entry point is when the price retraces to a Fibonacci level and shows signs of reversal (e.g., bullish candlestick patterns, support at Fibonacci levels). This is typically when traders enter a long position.
4. **Confirmation with EMA**: Ensure that the EMAs support the trend. For a buy entry, the short-term EMA should remain above the long-term EMA.
### Example of a Bullish Entry
1. **Golden Cross**: 50 EMA crosses above 200 EMA.
2. **Retracement**: Price retraces to the 38.2% Fibonacci level.
3. **Entry Signal**: At the 38.2% level, a bullish candlestick pattern (e.g., hammer) forms, indicating potential support.
4. **Entry Point**: Enter a long position at the close of the bullish candlestick.
### Risk Management
1. **Stop Loss**: Place a stop loss below the next Fibonacci retracement level or below the recent swing low to limit potential losses.
2. **Take Profit**: Set a take profit target based on a risk-reward ratio, previous resistance levels, or further Fibonacci extensions.
### Conclusion
The EMA Cross Fibonacci Entry with Retracement strategy is a systematic approach to identifying entry points in a trending market. By combining the responsiveness of EMAs with the predictive power of Fibonacci retracement levels, traders aim to enter trades at optimal points, increasing their chances of success while managing risk effectively.
Moving Averages
Fractalyst Moving Average [Adaptive] | FractalystWhat's the indicator purpose and functionality?
Moving averages are widely used technical indicators in trading.
Typically, they provide reliable entry signals in trending markets but can falter during consolidation periods.
Now, imagine a moving average that adjusts to market conditions.
The Fractalyst Moving Average does just that by adapting to the market's noise level, which is the erratic price movement within trends or consolidation phases.
This indicator incorporates market structure into moving averages to more effectively identify potential market trends.
By dynamically calculating moving averages based on external swing highs and lows, it offers robust trend identification and adapts to different market conditions, giving traders valuable insights into current market condition.
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How does FRMA react in a trending and consolidating market?
When the market trends, the FRMA adjusts quickly to price movements, closely tracking the trend and positioning itself close to prices. This responsiveness allows it to provide timely signals and effectively capture trends.
However, in consolidating markets where there is little net change in price over time, the FRMA reacts slowly. As consolidation prolongs, the FRMA may even cease to move significantly, appearing non-reactive. This characteristic helps minimize false signals and unnecessary trades during periods of market indecision.
Notice how the FRMA tracks prices closely when the market is trending. When the market begins to consolidate, however, the FRMA becomes relatively unresponsive and stays horizontal.
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What are the underlying calculations behind FRMA?
Identifying Swing Highs and Lows: FRMA begins by identifying the most recent external swing highs and lows, which are key pivot points in the market's price structure.
Defining Market Structure: It calculates the distance between these external swing levels. When price remains confined between these levels, indicating a horizontal market, it signifies minor intermediate ranges or a lack of clear trend direction.
Adapting to Breaks of Structure: When a new break of structure occurs—such as a significant price movement above a previous swing high or below a swing low—the FRMA updates dynamically.
It adjusts its values to reflect the midpoint (50%) of the distance between the external swing highs and lows.
This adjustment helps the FRMA react promptly to changes in different market environments.
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How to use the FRMA in trading?
In a trend-following context, the FRMA provides clear signals for trading:
Buying Signal: Look to buy when the FRMA is rising. This indicates that the market is in an uptrend, with prices consistently moving higher. Buying at these points aligns with the trend momentum and increases the likelihood of capturing profitable movements.
Selling Signal: Consider selling when the FRMA is falling. A declining FRMA suggests that the market is in a downtrend, where prices are consistently decreasing. Selling during these periods helps capitalize on downward movements and potential profit-taking opportunities.
Avoiding Trades: Avoid trading when the FRMA appears horizontal and the market is consolidating. This indicates a lack of clear trend direction or significant price movement, which can lead to choppy price action and increased risk of false signals. Waiting for the FRMA to resume a clear trend direction can help avoid unnecessary losses in consolidating markets.
Note: These rules are just examples and may generate numerous false signals. Even when the FRMA is less responsive, it can exhibit frequent changes in direction.
Traders should apply additional filters or confirmatory indicators to refine their trading decisions and mitigate the impact of false signals.
Depending on whether they're employing mean-reversion or trend-following trading styles, traders need to adjust other market filters accordingly.
It's crucial to conduct thorough backtesting using various market conditions and filters to validate and optimize their trading strategies effectively.
This process helps traders identify the settings that best align with their trading goals and market conditions.
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What makes this moving average unique compared to others?
Yes, it's another moving average, but the Fractalyst Adaptive Moving Average stands out for a compelling reason.
Its calculation is more sophisticated, leveraging market structure to identify potential consolidation and trending environments, similar to conventional moving averages such as SMA and EMA.
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How does the FRMA's stack up against the other moving averages?
Since markets are always evolving, using adaptive strategy elements like the FRMA certainly makes a whole lot of sense.
However, from a practical standpoint, the only way to find out would be to exhaustively backtest the various moving averages across all markets of interest.
Establishing equivalency between the FRMA and other moving averages may be a little challenging, since the FRMA does not use a single integer value for its lookback period.
Assuming the backtests produced roughly equal results, I’d personally prefer to use the FRMA. Its adaptive qualities give me confidence that the strategy can weather changing market conditions.
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User-inputs and customizations
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Terms and Conditions | Disclaimer
Our charting tools are provided for informational and educational purposes only and should not be construed as financial, investment, or trading advice. They are not intended to forecast market movements or offer specific recommendations. Users should understand that past performance does not guarantee future results and should not base financial decisions solely on historical data.
Built-in components, features, and functionalities of our charting tools are the intellectual property of @Fractalyst Unauthorized use, reproduction, or distribution of these proprietary elements is prohibited.
By continuing to use our charting tools, the user acknowledges and accepts the Terms and Conditions outlined in this legal disclaimer and agrees to respect our intellectual property rights and comply with all applicable laws and regulations.
Multiple Non-Linear Regression [ChartPrime]This indicator is designed to perform multiple non-linear regression analysis using four independent variables: close, open, high, and low prices. Here's a breakdown of its components and functionalities:
Inputs:
Users can adjust several parameters:
Normalization Data Length: Length of data used for normalization.
Learning Rate: Rate at which the algorithm learns from errors.
Smooth?: Option to smooth the output.
Smooth Length: Length of smoothing if enabled.
Define start coefficients: Initial coefficients for the regression equation.
Data Normalization:
The script normalizes input data to a range between 0 and 1 using the highest and lowest values within a specified length.
Non-linear Regression:
It calculates the regression equation using the input coefficients and normalized data. The equation used is a weighted sum of the independent variables, with coefficients adjusted iteratively using gradient descent to minimize errors.
Error Calculation:
The script computes the error between the actual and predicted values.
Gradient Descent: The coefficients are updated iteratively using gradient descent to minimize the error.
// Compute the predicted values using the non-linear regression function
predictedValues = nonLinearRegression(x_1, x_2, x_3, x_4, b1, b2, b3, b4)
// Compute the error
error = errorModule(initial_val, predictedValues)
// Update the coefficients using gradient descent
b1 := b1 - (learningRate * (error * x_1))
b2 := b2 - (learningRate * (error * x_2))
b3 := b3 - (learningRate * (error * x_3))
b4 := b4 - (learningRate * (error * x_4))
Visualization:
Plotting of normalized input data (close, open, high, low).
The indicator provides visualization of normalized data values (close, open, high, low) in the form of circular markers on the chart, allowing users to easily observe the relative positions of these values in relation to each other and the regression line.
Plotting of the regression line.
Color gradient on the regression line based on its value and bar colors.
Display of normalized input data and predicted value in a table.
Signals for crossovers with a midline (0.5).
Interpretation:
Users can interpret the regression line and its crossovers with the midline (0.5) as signals for potential buy or sell opportunities.
This indicator helps users analyze the relationship between multiple variables and make trading decisions based on the regression analysis. Adjusting the coefficients and parameters can fine-tune the model's performance according to specific market conditions.
(Envelopes)USS Enterprise1. This indicator is created for those who still believe in the functionality of moving averages. Indicator consists of several envelopes of moving averages and two separate averages. The selection of these moving averages is linked to Fibonacci theories and calculations.
2. The indicator shows moving averages (envelopes) of all market participants. From the smallest to the giants.
3. It should be noted that all averages are mainly calibrated to a 15-minute time frame. But I'm not saying that you can't use it on any TF. Because market is fractal.
Groups:
1. (YELLOW ENVELOPES) The first group are scalpers and big traders. Yellow envelope! This is the largest group of traders, but with the smallest capital on the market. Why did I choose this envelope? To show who is in control of the market. The average duration of holding the price of this envelope is 12-16 hours (in trend phase) and therefore it is suitable for intra-day trading. If the price closes below this envelope, we know that their strength was no longer sufficient. However, as long as these two yellow curves do not cross each other, we consider this group of traders to be still dominant/active and their weakening was only partial, for example, due to a pullback, or due to manipulation of the price of stronger players.
2. (LIGHT BLUE ENVELOPE) When I mentioned pullback. Understand it as the return of the price in the trend. But who is capable of these pullbacks in the trend? Our second group of traders. Institutions. (Light blue color). Only their amount of money can cause the price to return to their point of interest and that is the light blue envelope. The average ability to hold the trend of the institutions is something around 1-2 days. If the price closes with a slow decline/rise below this/above this envelope, we can expect that their strength is still large enough. However, if there are movements that seem to cut through this envelope, it is the first indication that the institutions are losing strength. If there is a crossover of any yellow average across both institutional ones, we can expect a much bigger pullback in the trend. This pullback is then again mainly under the control of the institutions (rejections from the light blue envelope.) But where can this pullback go? Another market participant will tell us that!
3. (DARK BLUE ENVELOPE) Market makers are another participant. Their task is to maintain balance on the market. This means that the market does not only go up or only down. That's what the envelope of market makers is for. This envelope is considered a trend defender. What makes it special. It can hold a trend even for days. We can consider the return to this envelope as a supply and demand strategy. In the trend, the price will come back here as a pullback and then rocket back into the original trend. I'll tell you what you probably guessed, yes, we are moving here at the EMA200 level. So if the institutional (light blue) traders lose their strength, believe me that the envelope of the market makers is a very likely stop! When does a trend change occur and not a pullback? If there is a crossing of the light blue average with the entire envelope of market makers. The next test from the other side of this envelope confirms the trend change.
4. Let's skip the black envelope for the moment.
5. (PURPLE ENVELOPE) Let's explain the purple envelope. It is the envelope of market makers and especially hedge funds. What do you think when the price closes below the EMA200 (originally a bull trend) and even tests it below? "We have a trend change now we definitely have a down trend!!!" Uhm. NOPE :D. That's their job. To show you what they want you to believe. What does this result in? Filling their large orders, which eventually means that you were caught and liquidated with your positions. By testing, you will find out how many times you thought there was a trend change, but after you see how the price reacts from the purple envelope, you will understand that until now you did not know at all when a general trend change occurs. When we talk about a trend change in the long term , occurs when the EMA200 (dark blue envelope) crosses this purple envelope. This purple envelope is able to keep the price trending for an average of 3 weeks.
Don't get caught that the trend change is when the price closes below the EMA200.Or "golden cross"
6. (BLACK ENVELOPE) Did we miss something though? So let's go back to the meaning of the black envelope. When you take a good look at the trend and notice all the envelopes lined up nicely and focus on the dark blue envelope and the purple envelope. Don't you feel like you're seeing Fibonacci's return? Or as if you see the price in the premium zone?.78%-88%. Yes, it's exactly this envelope. Sometimes market makers and funds are satisfied with the price in this envelope and are willing to continue buying or selling from this envelope. However, keep in mind, this can be a stop before testing the purple envelope - mostly the range is formed in this black envelope. Expect in such a case that they will test the purple envelope. Otherwise, take this envelope as a sign of a premium zone.
7. (ORANGE,TEAL and RED MA) The Orange,Teal and Red averages show a pure bank level. That is, our mentioned giants on the market. You will see for yourself on the market with what accuracy the banks return to these averages. You will see for yourself that trends really change only at these averages. You must have told yourself several times why and how patterns that resemble a letter are created in the market V or the letter A. Congratulations! Thanks to my indicator, you already know today! Because of these bank averages!!!
I wish you the best of luck with this indicator and hopefully it helps as many people as possible understand trends and how important simple lines can be! Which and how many envelopes or moving averages you will use is entirely up to you!
Warning: Everything published in this description or the functionality of this indicator serves only as educational content! Only YOU are responsible for all profits and losses!
Moving avg with regMoving avg with reg
A Moving avg with reg is a series of moving averages plotted on the same chart, each with different time periods. This visual tool helps traders identify the underlying trend and potential reversal points in the market. By observing the interaction and spacing between the moving averages, traders can gauge the market's strength and momentum.
Key Points:
Trend Identification: Multiple moving averages help confirm the direction of the trend. If the shorter-period moving averages are above the longer-period ones, it indicates an uptrend, and vice versa.
Reversal Signals: When shorter-period moving averages cross longer-period ones, it may signal a potential trend reversal.
Market Strength: The spacing between the moving averages indicates the strength of the trend. Wider spacing suggests a strong trend, while narrow spacing may indicate a weakening trend.
Regression Line
A Regression Line, specifically the Linear Regression Indicator (LRI), is a statistical tool used to determine the direction and strength of a trend by fitting a straight line to the price data over a specified period. This line minimizes the distance between itself and the actual price points, providing a clear visual representation of the trend.
Key Points:
Trend Direction: The slope of the regression line indicates the direction of the trend. A positive slope suggests an uptrend, while a negative slope indicates a downtrend.
Price Deviations: The distance between the actual price and the regression line can highlight overbought or oversold conditions. Large deviations may suggest a potential correction.
Predictive Power: By extending the regression line, traders can make predictions about future price movements based on the current trend.
Stochastic Biquad Band Pass FilterThis indicator combines the power of a biquad band pass filter with the popular stochastic oscillator to provide a unique tool for analyzing price movements.
The Filter Length parameter determines the center frequency of the biquad band pass filter, affecting which frequency band is isolated. Adjusting this parameter allows you to focus on different parts of the price movement spectrum.
The Bandwidth (BW) controls the width of the frequency band in octaves. It represents the bandwidth between -3 dB frequencies for the band pass filter. A narrower bandwidth results in a more focused filtering effect, isolating a tighter range of frequencies.
The %K Length parameter sets the period for the stochastic calculation, determining the range over which the stochastic values are calculated.
The %K Smoothing parameter applies a simple moving average to the %K values to smooth out the oscillator line.
The %D Length parameter sets the period for the %D line, which is a simple moving average of the %K line, providing a signal line for the oscillator.
Key Features of the Stochastic Biquad Band Pass Filter
Biquad filters are known for their smooth response and minimal phase distortion, making them ideal for technical analysis. In this implementation, the biquad filter is configured as a band pass filter, which allows frequencies within a specified band to pass while attenuating frequencies outside this band. This is particularly useful in trading to isolate specific price movements, making it easier to detect patterns and trends within a targeted frequency range.
The stochastic oscillator is a popular momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. Combining it with a biquad band pass filter enhances its effectiveness by focusing on specific frequency bands of price movements.
By incorporating this stochastic biquad band pass filter into your trading toolkit, you can enhance your chart analysis with clearer insights into specific frequency bands of price movements, leading to more informed trading decisions.
Biquad Band Pass FilterThis indicator utilizes a biquad band pass filter to isolate and highlight a specific frequency band in price data, helping traders focus on price movements within a targeted frequency range.
The Length parameter determines the center frequency of the filter, affecting which frequency band is isolated. Adjusting this parameter allows you to focus on different parts of the price movement spectrum.
The Bandwidth (BW) controls the width of the frequency band in octaves. It represents the bandwidth between -3 dB frequencies for the band pass filter. A narrower bandwidth results in a more focused filtering effect, isolating a tighter range of frequencies.
Key Features of Biquad Filters
Biquad filters are a type of digital filter that provides a combination of low-pass, high-pass, band-pass, and notch filtering capabilities. In this implementation, the biquad filter is configured as a band pass filter, which allows frequencies within a specified band to pass while attenuating frequencies outside this band. This is particularly useful in trading to isolate specific price movements, making it easier to detect patterns and trends within a targeted frequency range.
Biquad filters are known for their smooth response and minimal phase distortion, making them ideal for technical analysis. The customizable length and bandwidth allow for flexible adaptation to different trading strategies and market conditions. Designed for real-time charting, the biquad filter operates efficiently without significant lag, ensuring timely analysis.
By incorporating this biquad band pass filter into your trading toolkit, you can enhance your chart analysis with clearer insights into specific frequency bands of price movements, leading to more informed trading decisions.
Biquad High Pass FilterThis indicator utilizes a biquad high pass filter to filter out low-frequency components from price data, helping traders focus on high-frequency movements and detect rapid changes in trends.
The Length parameter determines the cutoff frequency of the filter, affecting how quickly the filter responds to changes in price. A shorter length allows the filter to react more quickly to high-frequency movements.
The Q Factor controls the sharpness of the filter. A higher Q value results in a more precise filtering effect by narrowing the frequency band. However, be cautious when setting the Q factor too high, as it can induce resonance, amplifying certain frequencies and potentially making the filter less effective by introducing unwanted noise.
Key Features of Biquad Filters
Biquad filters are a type of digital filter that provides a combination of low-pass, high-pass, band-pass, and notch filtering capabilities. In this implementation, the biquad filter is configured as a high pass filter, which allows high-frequency signals to pass while attenuating lower-frequency components. This is particularly useful in trading to highlight rapid price movements, making it easier to spot short-term trends and patterns.
Biquad filters are known for their smooth response and minimal phase distortion, making them ideal for technical analysis. The customizable length and Q factor allow for flexible adaptation to different trading strategies and market conditions. Designed for real-time charting, the biquad filter operates efficiently without significant lag, ensuring timely analysis.
By incorporating this biquad high pass filter into your trading toolkit, you can enhance your chart analysis with clearer insights into rapid price movements, leading to more informed trading decisions.
Biquad Low Pass FilterThis indicator utilizes a biquad low pass filter to smooth out price data, helping traders identify trends and reduce noise in their analysis.
The Length parameter acts as the length of the moving average, determining the smoothness and responsiveness of the filter. Adjusting this parameter changes how quickly the filter reacts to price changes.
The Q Factor controls the sharpness of the filter. A higher Q value results in a narrower frequency band, enhancing the precision of the filter. However, be cautious when setting the Q factor too high, as it can induce resonance, amplifying certain frequencies and potentially making the filter less effective by introducing noise.
Key Features of Biquad Filters
Biquad filters are a type of digital filter that provides a combination of low-pass, high-pass, band-pass, and notch filtering capabilities. In this implementation, the biquad filter is configured as a low pass filter, which allows low-frequency signals to pass while attenuating higher-frequency noise. This is particularly useful in trading to smooth out price data, making it easier to spot underlying trends and patterns.
Biquad filters are known for their smooth response and minimal phase distortion, making them ideal for technical analysis. The customizable length and Q factor allow for flexible adaptation to different trading strategies and market conditions. Designed for real-time charting, the biquad filter operates efficiently without significant lag, ensuring timely analysis.
By incorporating this biquad low pass filter into your trading toolkit, you can enhance your chart analysis with clearer insights into price movements, leading to more informed trading decisions.
Internal Bar Strength IBS [Anan]This indicator calculates and displays the Internal Bar Strength (IBS) along with its moving average. The IBS is a measure that represents where the closing price is relative to the high-low range of a given period.
█ Main Formula
The core of this indicator is the Internal Bar Strength (IBS) calculation. The basic IBS formula is:
ibs = (close - low) / (high - low)
I enhanced the original formula by incorporating a user-defined length parameter. This modification allows for greater flexibility in analysis and interpretation. The extended version enables users to adjust the indicator's length according to their specific needs or market conditions. Notably, setting the length parameter to 1 reproduces the behavior of the original formula, maintaining backward compatibility while offering expanded functionality:
ibs = (close - ta.lowest(low, ibs_length)) / (ta.highest(high, ibs_length) - ta.lowest(low, ibs_length))
Where:
- `close` is the closing price of the current bar
- `lowest low` is the lowest low price over the specified IBS length
- `highest high` is the highest high price over the specified IBS length
█ Key Features
- Calculates IBS using a user-defined length
- Applies a moving average to the IBS values
- Offers multiple moving average types
- Includes optional Bollinger Bands or Donchian Channel overlays
- Visualizes bull and bear areas
█ Inputs
- IBS Length: The period used for IBS calculation
- MA Type: The type of moving average applied to IBS (options: SMA, EMA, SMMA, WMA, VWMA, Bollinger Bands, Donchian)
- MA Length: The period used for the moving average calculation
- BB StdDev: Standard deviation multiplier for Bollinger Bands
█ How to Use and Interpret
1. IBS Line Interpretation:
- IBS values range from 0 to 1
- Values close to 1 indicate the close was near the high, suggesting a bullish sentiment
- Values close to 0 indicate the close was near the low, suggesting a bearish sentiment
- Values around 0.5 suggest the close was near the middle of the range
2. Overbought/Oversold Conditions:
- IBS values above 0.8 (teal zone) may indicate overbought conditions
- IBS values below 0.2 (red zone) may indicate oversold conditions
- These zones can be used to identify potential reversal points
3. Trend Identification:
- Consistent IBS values above 0.5 may indicate an uptrend
- Consistent IBS values below 0.5 may indicate a downtrend
4. Using Moving Averages:
- The yellow MA line can help smooth out IBS fluctuations
- Crossovers between the IBS and its MA can signal potential trend changes
5. Bollinger Bands/Donchian Channel:
- When enabled, these can provide additional context for overbought/oversold conditions
- IBS touching or exceeding the upper band may indicate overbought conditions
- IBS touching or falling below the lower band may indicate oversold conditions
Remember that no single indicator should be used in isolation. Always combine IBS analysis with other technical indicators, price action analysis, and broader market context for more reliable trading decisions.
SD Distance Mean BetaThe "SD Distance Mean Indicator" is a currently a developing tool designed to enhance trading precision by dynamically adjusting to market conditions. This indicator provides insights into price deviations from the mean, helping traders make inf OANDA:XAUUSD ormed decisions based on significant price movements.
Key Features:
Adaptive Length Adjustment:
The indicator dynamically adjusts the calculation period based on the Average True Range (ATR). This allows it to respond to different market conditions, using a shorter length during consolidations and a longer length during trends.
Standardized Distance Calculation:
The indicator calculates the distance of the current price from the mean and standardizes it using the standard deviation. This standardized distance is then smoothed to reduce noise and provide clearer signals.
Dynamic Standard Deviation (SD) Levels:
SD levels are adjusted dynamically based on ATR, providing a more accurate representation of price volatility. These levels are further smoothed to minimize wiggling on shorter timeframes like the 30-minute chart.
Visual Cues for Trading Signals:
The indicator plots multiple SD levels (+1, +2, +3, +4 and their negatives) and highlights significant price movements. When the standardized distance line hits or exceeds these levels, it signals potential overbought or oversold conditions.
Customizable Smoothing: The smoothing length for both the standardized distance and SD levels can be customized to suit different trading strategies and timeframes. Default values are set to provide a balance between responsiveness and stability.
Usage:
Identifying Reversals : The indicator helps in spotting potential reversal points. When the smoothed standardized distance line hits +2 SD or -2 SD and rebounds, it signals a possible price reversal back towards the mean.
Confirming Trends: Dynamic SD levels provide a clear visual representation of price volatility, helping traders confirm trend strength and potential breakout points.
Enhancing Precision: By dynamically adjusting to market conditions, the indicator enhances trading precision, making it suitable for various market environments.
This script is an essential addition to any trader's toolkit, offering a blend of adaptability, precision, and visual clarity to support more informed trading decisions.
Settings:
Short Length: Period length used during consolidations.
Long Length: Period length used during trends.
ATR Length: Length for ATR calculation.
ATR Threshold: Threshold value to switch between short and long lengths.
Smoothing Length: Length for smoothing the standardized distance.
SD Smoothing Length: Length for smoothing the dynamic SD levels.
By using this indicator, traders can leverage its adaptive capabilities to navigate various market conditions effectively and enhance their trading performance on XAUUSD and other assets.
Moving Average Trend Meter [UkutaLabs]█ OVERVIEW
The Moving Average Trend Meter is a powerful trading indicator that visualizes current market strength. This indicator uses a series of four EMAs (Exponential Moving Averages) to determine short, medium and long term market strength. Each of the three rows of boxes corresponds to an EMA, with the top being the fast, the middle being the medium and the bottom being the slow. Depending on whether each EMA is above or below the source EMA, its corresponding row will be colored accordingly, with the boxes appearing green if the source is above it or red if it is below.
This indicator also displays when the strength of the market is transitioning between bullish and bearish, indicating that there may be an upcoming reversal.
The purpose of this script is to simplify the trading experience of users by providing an easier way to visualize current market strength using a series of EMAs.
█ USAGE
This indicator provides an easy to understand method of visualizing the current market strength based on the positioning of four EMAs. By default, the period for these EMAs are selected based on key Fibonacci levels, and the period of each one can be customized in the indicator settings.
Depending on whether or not the source EMA is above or below each of the other three EMAs, the boxes of the corresponding rows will be colored to indicate the current strength of the market.
If all three boxes are drawn the same color, a dot of the same color will be drawn above the boxes.
█ SETTINGS
Configuration
• Source EMA: Determines the period of the source EMA.
• Fast EMA: Determines the period of the fast EMA.
• Med EMA: Determines the period of the medium EMA.
• Slow EMA: Determines the period of the slow EMA.
Colors
• Bullish Color: Determines the color of boxes when the source EMA is above the respective EMA.
• Bearish Color: Determines the color of boxes when the source EMA is below the respective EMA.
• Bullish Transition Color: Determines the color of boxes when the current bar closes above the respective EMA while the source is below it.
• Bearish Transition Color: Determines the color of boxes when the current bar closes below the respective EMA while the source is above it.
Heiken Ashi Ribbon [UkutaLabs]█ OVERVIEW
The Heiken Ashi Ribbon is a powerful trading tool that creates a strong ribbon that indicates market strength. This ribbon is created using four moving averages that use Heiken Ashi values (high, low, open and close) as its input values.
The ribbon will also be colored green, red or grey depending on whether or not its direction aligns with current market strength.
█ USAGE
The Heiken Ashi Ribbon is created using a series of four moving averages that uses values from the Heiken Ashi bars as its inputs. The user has the ability to select whether the moving averages are EMAs or SMAs, as well as the ability to control the period of the moving averages.
If the moving average calculated using the Heiken Ashi Open is below the moving average calculated using the Heiken Ashi Close, the ribbon will be colored green, indicating a bullish trend. If the moving average calculated using the Heiken Ashi Open is above the moving average calculated using the Heiken Ashi Open, the ribbon will be colored red, indicating a bearish trend.
This indicator also uses a series of hidden EMAs to determine market strength. If these EMAs do not align with the direction of the Heiken Ashi Ribbon, the Ribbon will instead be colored grey, indicating uncertainty in the market, as well as a possible reversal.
█ SETTINGS
Configuration
• Moving Average Type: Determines whether or not the Heiken Ashi Moving Averages will be drawn as EMAs or SMAs.
• Moving Average Period: Determines the period of the Heiken Ashi Moving Averages.
Moving Average
• Moving Average Input: Determines the input values for the hidden EMAs.
GMMA Toolkit [QuantVue]The GMMA Toolkit is designed to leverage the principles of the Guppy Multiple Moving Average (GMMA). This indicator is equipped with multiple features to help traders identify trends, reversals, and periods of market compression.
The Guppy Multiple Moving Average (GMMA) is a technical analysis tool developed by Australian trader and author Daryl Guppy in the late 1990s.
It utilizes two sets of Exponential Moving Averages (EMAs) to capture both short-term and long-term market trends. The short-term EMAs represent the activity of traders, while the long-term EMAs reflect the behavior of investors.
By analyzing the interaction between these two groups of EMAs, traders can identify the strength and direction of trends, as well as potential reversals.
Due to the nature of GMMA, charts can become cluttered with numerous lines, making analysis challenging.
However, this indicator simplifies visualization by using clouds to represent the short-term and long-term EMA groups, determined by filling the area between the maximum and minimum EMAs in each group.
The GMMA Toolkit goes a step further and includes an oscillator that measures the difference between the average short-term and long-term EMAs, providing a clear visual representation of trend strength and direction.
The farther the oscillator is from the 0 level, the stronger the trend. It is plotted on a separate panel with values above zero indicating bullish conditions and values below zero indicating bearish conditions.
The inclusion of the oscillator in the GMMA Toolkit allows traders to identify earlier buy and sell signals based on the GMMA oscillator crossing the zero line compared to traditional crossover methods.
Lastly, the GMMA Toolkit features compression dots that indicate periods of market consolidation.
By measuring the spread between the maximum and minimum EMAs within both short-term and long-term groups, the indicator identifies when these spreads are significantly narrower than average by comparing the current spread to the average spread over a lookback period.
This visual cue helps traders anticipate potential breakout or breakdown scenarios, enhancing their ability to react to imminent trend changes.
By simplifying the visualization of the Guppy Multiple Moving Averages with clouds, providing earlier buy and sell signals through the oscillator, and highlighting periods of market consolidation with compression dots, this toolkit offers traders insightful tools for navigating market trends and potential reversals.
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Filtered MACD with Backtest [UAlgo]The "Filtered MACD with Backtest " indicator is an advanced trading tool designed for the TradingView platform. It combines the Moving Average Convergence Divergence (MACD) with additional filters such as Moving Average (MA) and Average Directional Index (ADX) to enhance trading signals. This indicator aims to provide more reliable entry and exit points by filtering out noise and confirming trends. Additionally, it includes a comprehensive backtesting module to simulate trading strategies and assess their performance based on historical data. The visual backtest module allows traders to see potential trades directly on the chart, making it easier to evaluate the effectiveness of the strategy.
🔶 Customizable Parameters :
Price Source Selection: Users can choose their preferred price source for calculations, providing flexibility in analysis.
Filter Parameters:
MA Filter: Option to use a Moving Average filter with types such as EMA, SMA, WMA, RMA, and VWMA, and a customizable length.
ADX Filter: Option to use an ADX filter with adjustable length and threshold to determine trend strength.
MACD Parameters: Customizable fast length, slow length, and signal smoothing for the MACD indicator.
Backtest Module:
Entry Type: Supports "Buy and Sell", "Buy", and "Sell" strategies.
Stop Loss Types: Choose from ATR-based, fixed point, or X bar high/low stop loss methods.
Reward to Risk Ratio: Set the desired take profit level relative to the stop loss.
Backtest Visuals: Display entry, stop loss, and take profit levels directly on the chart with
colored backgrounds.
Alerts: Configurable alerts for buy and sell signals.
🔶 Filtered MACD : Understanding How Filters Work with ADX and MA
ADX Filter:
The Average Directional Index (ADX) measures the strength of a trend. The script calculates ADX using the user-defined length and applies a threshold value.
Trading Signals with ADX Filter:
Buy Signal: A regular MACD buy signal (crossover of MACD line above the signal line) is only considered valid if the ADX is above the set threshold. This suggests a stronger uptrend to potentially capitalize on.
Sell Signal: Conversely, a regular MACD sell signal (crossunder of MACD line below the signal line) is only considered valid if the ADX is above the threshold, indicating a stronger downtrend for potential shorting opportunities.
Benefits: The ADX filter helps avoid whipsaws or false signals that might occur during choppy market conditions with weak trends.
MA Filter:
You can choose from various Moving Average (MA) types (EMA, SMA, WMA, RMA, VWMA) for the filter. The script calculates the chosen MA based on the user-defined length.
Trading Signals with MA Filter:
Buy Signal: A regular MACD buy signal is only considered valid if the closing price is above the MA value. This suggests a potential uptrend confirmed by the price action staying above the moving average.
Sell Signal: Conversely, a regular MACD sell signal is only considered valid if the closing price is below the MA value. This suggests a potential downtrend confirmed by the price action staying below the moving average.
Benefits: The MA filter helps identify potential trend continuation opportunities by ensuring the price aligns with the chosen moving average direction.
Combining Filters:
You can choose to use either the ADX filter, the MA filter, or both depending on your strategy preference. Using both filters adds an extra layer of confirmation for your signals.
🔶 Backtesting Module
The backtesting module in this script allows you to visually assess how the filtered MACD strategy would have performed on historical data. Here's a deeper dive into its features:
Backtesting Type: You can choose to backtest for buy signals only, sell signals only, or both. This allows you to analyze the strategy's effectiveness in different market conditions.
Stop-Loss Types: You can define how stop-loss orders are placed:
ATR (Average True Range): This uses a volatility measure (ATR) multiplied by a user-defined factor to set the stop-loss level.
Fixed Point: This allows you to specify a fixed dollar amount or percentage value as the stop-loss.
X bar High/Low: This sets the stop-loss at a certain number of bars (defined by the user) above/below the bar's high (for long positions) or low (for short positions).
Reward-to-Risk Ratio: Define the desired ratio between your potential profit and potential loss on each trade. The backtesting module will calculate take-profit levels based on this ratio and the stop-loss placement.
🔶 Disclaimer:
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Moving Average Exponential-DonCHI-SUPERTRENDThe "Moving Average Exponential-DonCHI-SUPERTREND" is a trading strategy or indicator that combines three distinct technical analysis tools:
Moving Average Exponential (EMA): This is a type of moving average that gives more weight to recent prices, making it more responsive to price changes compared to a simple moving average.
Donchian Channels (DonCHI): These are bands that are plotted above and below the recent price highs and lows. They help identify the current price volatility and potential breakout points.
SUPERTREND: This is a trend-following indicator that uses the average true range (ATR) to determine the direction of the trend. It provides signals similar to moving averages but with less lag.
Consecutive Closes Above/Below 3 SMA with Z-Score BandsA simple indicator that measures consecutive closes above & below the 3-period simple moving average. An upper and lower Z-score has been calculated to indicate where the 4 standard deviations of the last 60 bars sits.
Useful for identifying directional runs in price.
USD(Uncle Super Trend)The Super Trend Indicator Adopts a Breakthrough Trading Strategy with Resonance of Large and Small Periods, Combining Tools Such as Moving Averages, Bollinger Bands, and ATR to Determine Market Trends and Generate Trading Signals, Helping You Better Grasp Long and Short Trading Opportunities.
Usage Tips:
A long position in the large period MA indicates an upward trend, and a short position in the large period MA indicates a downward trend.
In an upward trend, only go long and not short. A 🚀 icon indicates a long signal, and a 🎉 icon indicates a closing signal.
In a downward trend, only go short and not long. A 📉 icon indicates a short signal, and a 🎉 icon indicates a closing signal.
Moving Averages (MA) Settings:
Users can choose to display two moving averages (MA1 and MA2) and configure their type (SMA, EMA, SMMA, WMA, VWMA), period, data source, and color.
When MA1 is greater than MA2, the area is filled with red; otherwise, it is filled with green.
Bollinger Bands:
Calculate the upper and lower Bollinger Bands (BBUpper and BBLower) based on the user's input period and standard deviation.
Use color to fill the Bollinger Bands area.
ATR Filter:
Set a filter using the Average True Range (ATR) to determine the position of the trend line.
Users can choose whether to use the ATR filter.
Trend Line:
Calculate and draw the trend line based on Bollinger Bands signals (BBSignal) combined with the ATR filter.
Generate buy or sell signals when the price breaks through the upper or lower Bollinger Bands.
Buy/Sell Signals:
Generate a buy signal when the trend direction changes from negative to positive, and a sell signal when it changes from positive to negative.
Use icons to represent buy/sell signals, with the display of icons depending on user configuration.
Smoothed Heiken Ashi Candles with Delayed SignalsThis is a trend-following approach that uses a modified version of Heiken Ashi candles with additional smoothing. Here are the key components and features:
1. Heiken Ashi Modification: The strategy starts by calculating Heiken Ashi candles, which are known for better trend visualization. However, it modifies the traditional Heiken Ashi by using Exponential Moving Averages (EMAs) of the open, high, low, and close prices.
2. Double Smoothing: The strategy applies two layers of smoothing. First, it uses EMAs to calculate the Heiken Ashi values. Then, it applies another EMA to the Heiken Ashi open and close prices. This double smoothing aims to reduce noise and provide clearer trend signals.
3. Long-Only Approach: As the name suggests, this strategy only takes long positions. It doesn't short the market during downtrends but instead exits existing long positions when the sell signal is triggered.
4. Entry and Exit Conditions:
- Entry (Buy): When the smoothed Heiken Ashi candle color changes from red to green (indicating a potential start of an uptrend).
- Exit (Sell): When the smoothed Heiken Ashi candle color changes from green to red (indicating a potential end of an uptrend).
5. Position Sizing: The strategy uses a percentage of equity for position sizing, defaulting to 100% of available equity per trade. This should be tailored to each persons unique approach. Responsible trading would use less than 5% for each trade. The starting capital used is a responsible and conservative $1000, reflecting the average trader.
This strategy aims to provide a smooth, trend-following approach that may be particularly useful in markets with clear, sustained trends. However, it may lag in choppy or ranging markets due to its heavy smoothing. As with any strategy, it's important to thoroughly back test and forward test before using it with real capital, and to consider using it in conjunction with other analysis tools and risk management techniques.
Other smoothed Heiken Ashi indicators do not provide buy and sell signals, and only show the change in color to dictate a change in trend. By adding buy and sell signals after the close of the changing candle, alerts can be programmed, which helps this be a more hands off protocol to experiment with. Other smoothed Heiken Ashi indicators do not allow for alarms to be set.
This is a unique HODL strategy which helps identify a change in trend, without the noise of day to day volatility. By switching to a line chart, it removes the candles altogether to avoid even more noise. The goal is to HODL a coin while the color is bullish in an uptrend, but once the indicator gives a sell signal, to sell the holdings back to a stable coin and let the chart ride down. Once the chart gives the next buy signal, use that same capital to buy back into the asset. In essence this removes potential losses, and helps buy back in cheaper, gaining more quantitity fo the asset, and therefore reducing your average initial buy in price.
Most HODL strategies ride the price up, miss selling at the top, then riding the price back down in anticipation that it will go back up to sell. This strategy will not hit the absolute tops, but it will greatly reduce potential losses.
NEXT Volatility-Momentum Moving Average (VolMo MA)Overview
Volatility-Momentum Moving Average (VolMo MA) incorporates two key market dynamics into its price averaging formula: volatility and momentum. Traditional MAs, like EMA, often lag in volatile markets or during strong price moves. By integrating volatility (price range variability) and momentum (rate of price change), we developed a more adaptive and responsive MA.
Key Concepts
Volatility Calculation: Average True Range (ATR) used to quantify market volatility. ATR measures the average price range over a specified period.
Momentum Calculation: Relative Strength Index (RSI) applied to assess market momentum. RSI evaluates the speed and magnitude of price movements.
Moving Average Adjustment: Dynamically weight EMA based on volatility and momentum metrics. When volatility is high, the MA's responsiveness increases. Similarly, strong momentum accelerates the MA adjustment.
Input Parameters:
Length - length of Volatility-Momentum Moving Average (VolMo MA). This input also affects how far back momentum and volatility are considered. Experimentation is highly encouraged.
Sensitivity - controls the Volatility-Momentum adjustment rate applied to the MA. Default is 50, but experimentation is highly encouraged.
Source - data used for calculating the MA, typically Close, but can be used with other price formats and data sources as well. A lot of potential here.
Note: The VolMo MA Indicator plots, both, the Volatility-Momentum Moving Average and EMA for base comparison. You can disable EMA by unticking it under Style tab.
NASDAQ 100 Futures ( CME_MINI:NQ1! ) 1-minute
The following example compares VolMo MA (blue) to EMA (green). Length set to 34, Sensitivity to 40. Notice the difference in responsiveness as price action consolidates and breaks out. The VolMo MA can be used for scalping at lower Length values and 40-60 Sensitivity or as a dynamic support/resistance line at higher Length values.
Alerts
Here is how to set price crossing VolMo MA alerts: open a TradingView chart, attach NEXT NEXT Volatility-Momentum Moving Average (VolMo MA), right-click on chart -> Add Alert. Condition: Symbol (e.g. NQ) >> Crossing >> NEXT Volatility-Momentum Moving Average (VolMo MA) >> VolMo MA >> Once Per Bar Close.
Development Roadmap
Our initial research shows plenty of edge potential for the VolMo MA when used, both, by itself, or interacting with other indicators. To that end, we'll be adding the following features over the next few months:
Visual signal generation via interaction with EMA, price action, and other MAs and indicators - you can already do alerts with TradingView's built-in Alert functionality
Addition of a second, fully configurable VolMo MA for a Double VolMo MA cross strategy
VolMo MA MACD
Automation and Backtesting via Strategy
Uptrick: Comprehensive Market Sentiment DashboardIntroducing "Uptrick: Comprehensive Market Sentiment Dashboard"—an advanced trading indicator designed to provide traders with a complete and detailed overview of market conditions for multiple assets at a glance. This sophisticated tool is engineered to enhance your trading decisions by consolidating key technical indicators into a single, easy-to-read dashboard. Perfect for both novice and experienced traders, the Uptrick Dashboard is built to offer a competitive edge in the dynamic world of trading.
### Purpose
The primary goal of the Uptrick Dashboard is to equip traders with a powerful, all-in-one solution that streamlines market analysis. By combining multiple technical indicators and presenting their outputs in a cohesive format, this dashboard eliminates the need to toggle between different charts and tools. It delivers a clear, immediate understanding of market sentiment across various assets, enabling faster and more informed trading decisions.
### Features and Inputs
The Uptrick Dashboard integrates several widely-used technical indicators, each customizable to fit your specific trading strategy. Here’s a detailed breakdown of the features and input parameters:
1. **Exponential Moving Average (EMA)**
- **Input Parameter:** EMA Length
- **Purpose:** Tracks the asset’s price trend by smoothing out price data over a specified period.
2. **Simple Moving Average (SMA)**
- **Input Parameter:** SMA Length
- **Purpose:** Provides a simpler, more straightforward calculation of price trends compared to EMA.
3. **Relative Strength Index (RSI)**
- **Input Parameter:** RSI Length
- **Purpose:** Measures the magnitude of recent price changes to evaluate overbought or oversold conditions.
4. **Moving Average Convergence Divergence (MACD)**
- **Input Parameters:** MACD Fast Length, MACD Slow Length, MACD Signal Length
- **Purpose:** Identifies changes in the strength, direction, momentum, and duration of a trend.
5. **Bollinger Bands (BB)**
- **Input Parameters:** BB Length, BB StdDev
- **Purpose:** Provides a visual representation of volatility and relative price levels over a specified period.
6. **Ichimoku Cloud**
- **Input Parameters:** Ichimoku Tenkan Length, Ichimoku Kijun Length, Ichimoku Span A Length, Ichimoku Span B Length
- **Purpose:** Offers a comprehensive view of support and resistance levels, momentum, and trend direction.
7. **Supertrend**
- **Input Parameters:** Supertrend ATR Length, Supertrend Multiplier
- **Purpose:** Combines trend direction and volatility to provide buy and sell signals.
8. **Symbols Input**
- **Input Parameter:** Symbols (comma separated)
- **Purpose:** Allows users to specify and monitor multiple assets simultaneously.
### Customization and Flexibility
Each indicator within the Uptrick Dashboard is fully customizable, allowing you to adjust parameters to align with your trading strategy. Whether you prefer short-term trading with faster indicators or long-term analysis with slower, more reliable data, this dashboard can be tailored to meet your needs.
### Key Differentiators
What sets the Uptrick Dashboard apart from other market sentiment tools is its unparalleled integration of multiple technical indicators into a single, comprehensive view. This consolidation not only saves time but also provides a more holistic understanding of market conditions. Here’s what makes the Uptrick Dashboard unique:
- **Integrated Analysis:** Combines multiple indicators to provide a unified market sentiment.
- **Customizable Inputs:** Each indicator can be adjusted to suit your specific trading strategy.
- **Multi-Asset Monitoring:** Track and analyze several assets simultaneously.
- **User-Friendly Interface:** Designed for ease of use, presenting data in an organized, visually appealing format.
- **Real-Time Updates:** Continuously updates to reflect the latest market data.
### Future Updates
We are committed to continually improving the Uptrick Dashboard to ensure it remains a valuable tool in your trading arsenal. Users can expect regular updates that will introduce new features, enhance existing functionalities, and incorporate user feedback. Future updates may include:
- **Additional Indicators:** Introducing new technical indicators to provide even deeper insights.
- **Enhanced Visualization:** Improved graphical representations for better data interpretation.
- **Automation Features:** Tools to automate certain trading strategies based on indicator outputs.
- **User Customization:** More options for personalizing the dashboard to fit individual preferences.
### How It Works
The Uptrick Dashboard operates by calculating key technical indicators for each specified asset and displaying the results in a neatly organized table. Here’s a closer look at how it works:
1. **Input Parameters:** Users input their preferred settings for each indicator, including the list of assets to monitor.
2. **Data Retrieval:** The dashboard retrieves real-time market data for each specified asset.
3. **Indicator Calculation:** Using the input parameters, the dashboard calculates the values for each technical indicator.
4. **Visual Display:** Results are displayed in a table format, highlighting key information such as price, 24-hour change, and sentiment indicators (e.g., MACD, RSI, Bollinger Bands).
5. **Final Position:** The dashboard calculates an overall market position (Long, Short, or Neutral) based on the combined outputs of the individual indicators.
### Conclusion
The "Uptrick: Comprehensive Market Sentiment Dashboard" is a must-have tool for traders seeking a streamlined, efficient way to monitor market conditions across multiple assets. By integrating essential technical indicators into a single, customizable dashboard, it provides a comprehensive view of market sentiment, facilitating quicker and more informed trading decisions. Stay ahead of the market with Uptrick and experience the difference that a well-designed, all-in-one trading tool can make.
With regular updates and a commitment to excellence, the Uptrick Dashboard is poised to evolve continually, adapting to the changing needs of traders and the dynamics of the market. Whether you’re a seasoned trader or just starting out, the Uptrick Dashboard offers the insights and flexibility needed to enhance your trading strategy. Invest in the Uptrick Dashboard today and take your trading to the next level.
MA DifferenceThe MA Difference indicator shows 3 histograms representing differences in moving averages between a base MA (10) and 3 MA's: short (20), medium (50), and long (200). It also shows an exponentially weighted trend line which can indicate breakout opportunities, has alerts on all base <-> X crossovers, and shows potential consolidation zones where MA differences are below a user-defined tolerance.
The suggested way to use this indicator is to place a trade when the trend line is above the histogram (and filling the space between them). This indicates that the current MA values are significantly above or below the expected range and that prices are in the midst of breaking out. You may also consult the consolidation zones to eliminate false breakouts and momentary changes in trend. You may also consult the various short, medium, and long crossovers and crossunders to time entries and exits accordingly.
Histograms
The 3 histograms represent the differences between:
Base MA (10) and Short MA (20)
Base MA (10) and Medium MA (50)
Base MA (10) and Long MA (200)
All 4 moving average values can be configured in the indicator's settings. Consistency in direction and color of the histogram indicates a consistent trend across the various moving averages.
Trend Line
The trend line is an exponentially weighted average of the 3 moving averages, scaled by a factor configurable in the settings. When using the trend line, shading will be applied to the difference between the extremes of the histogram and the trend line to indicate that the chart is in a "breakout zone" and is beyond the normal, gradual sway of price action.
Crossovers/Crossunders
You may optionally turn on crossovers and crossunders in the indicator's settings to display when a short, medium, or long crossover occurs against the base moving average. Likewise, alerts are available for each crossover and crossunder for each of the 3 moving average convergences.
Consolidation Zones
Consolidation zones, as well as a line representing the current amount of consolidation, can also be optionally drawn on the chart. These indicate when a security is likely in consolidation, according to the spread of various MA values.
TradeTale 1 Min Nifty/Banknifty/Crypto F&O ScalperThis script explains how 'MACD' along with Avg of Simple Moving Averages can be used to catch trend.
Simple Moving Average (MA):-
A simple moving average (SMA) is used in technical analysis, used to help smooth out price data by creating a constantly updated average price. A rising moving average indicates that the security is in an uptrend, while a declining moving average indicates a downtrend. here in this indicator we have used average of various SMA's.
Moving Average Convergence/Divergence (MACD):-
MACD is a technical indicator to identify price trends, measure trend momentum, and identify market entry points for bullish or bearish trend. Moving average convergence/divergence (MACD) is a trend-following momentum indicator that shows the relationship between two exponential moving averages (EMAs) of a security’s price. MACD traditional default settings is 26/12/9. Where MACD line is calculated by subtracting the 26 period exponential moving average (EMA) from the 12 period EMA and the signal line is a 9 period EMA of the MACD line. But in this indicator we have used modified values of MACD.
Logic of this indicator:-
Long signals when MACD is in Uptrend and is above Avg of SMA's. (also other calculations are used)
Short signals when MACD is in Downtrend and is below Avg of SMA's. (also other calculations are used)
How to Use:-
Long: when Long appears + Bullish Candles + price above Avg SMA Line. (Bullish Entry/ Bear Exit)
Short: when Short appears + Bearish Candles + price below Avg SMA Line. (Bearish Entry/ Bull Exit)
Chart Timeframe:-
Scalping on 1 Minute Chart. But this Indicator works on all timeframes.
Traders should set stop loss and take profit levels as per risk reward ratio.
Note:
- Hide the actual candles for better view from chart setting.
- User can also adjust the sensitivity of the indicator from the setting. Default value is "3"
Like other technical indicators, This indicator also is not a holy grail. It can only assist you in building a good strategy. You can only succeed with proper position sizing, risk management and following correct trading Psychology (No overtrade, No greed, No revenge trade etc).
THIS INDICATOR IS FOR EDUCATIONAL PURPOSE AND PAPER TRADING ONLY. YOU MAY PAPER TRADE TO GAIN CONFIDENCE AND BUILD FURTHER ON THESE. PLEASE CONSULT YOUR FINANCIAL ADVISOR BEFORE INVESTING. WE ARE NOT SEBI REGISTERED.
Hope you all like it
happy learning.
