Oscillator Price Divergence & Trend Strategy (DPS) // AlgoFyreThe Oscillator Price Divergence & Trend Strategy (DPS) strategy combines price divergence and trend indicators for trend trading. It uses divergence conditions to identify entry points and a trend source for directional bias. The strategy incorporates risk management through dynamic position sizing based on a fixed risk amount. It allows for both long and short positions with customizable stop-loss and take-profit levels. The script includes visualization options for entry, stop-loss, and take-profit levels, enhancing trade analysis.
TABLE OF CONTENTS
🔶 ORIGINALITY
🔸Divergence-Trend Combination
🔸Dynamic Position Sizing
🔸Customizable Risk Management
🔶 FUNCTIONALITY
🔸Indicators
🞘 Trend Indicator
🞘 Oscillator Source
🔸Conditions
🞘 Long Entry
🞘 Short Entry
🞘 Take Profit
🞘 Stop Loss
🔶 INSTRUCTIONS
🔸Adding the Strategy to the Chart
🔸Configuring the Strategy
🔸Backtesting and Practice
🔸Market Awareness
🔸Visual Customization
🔶 CONCLUSION
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🔶 ORIGINALITY The Divergence Trend Trading with Dynamic Position Sizing strategy uniquely combines price divergence indicators with trend analysis to optimize entry and exit points. Unlike static trading strategies, it employs dynamic position sizing based on a fixed risk amount, ensuring consistent risk management. This approach allows traders to adapt to varying market conditions by adjusting position sizes according to predefined risk parameters, enhancing both flexibility and control in trading decisions. The strategy's integration of customizable stop-loss and take-profit levels further refines its risk management capabilities, making it a robust tool for both trending and volatile markets.
🔸Divergence-Trend Combination By combining trend direction with divergence conditions, the strategy enhances the accuracy of entry signals, aligning trades with prevailing market trends.
🔸Dynamic Position Sizing This strategy calculates position sizes dynamically, based on a fixed risk amount, allowing traders to maintain consistent risk exposure across trades.
🔸Customizable Risk Management Traders can set flexible risk-reward ratios and adjust stop-loss and take-profit levels, tailoring the strategy to their risk tolerance and market conditions.
🔶 FUNCTIONALITY The Divergence Trend Trading with Dynamic Position Sizing strategy leverages a combination of trend indicators and price and oscillator divergences to identify optimal trading opportunities. This strategy is designed to capitalize on medium to long-term price movements and works best on h1, h4 or D1 timeframes. It allows traders to manage risk effectively while taking advantage of both long and short positions.
🔸Indicators 🞘 Trend Indicator: A long trend is used to determine market direction, ensuring trades align with prevailing trends.
Recommendation: We recommend using the Adaptive MAs (Hurst, CVaR, Fractal) // AlgoFyre indicator with the following settings for trend detection. However, you can use any trend indicator that suits your trading style, e.g. an EMA 200.
🞘 Oscillator Source: The oscillator source is used for momentum price divergence identification. Any momentum oscillator can be used, e.g. RSI, Stochastic etc. A good oscillator is the Stochastic with the following settings:
🔸Conditions 🞘 Long Entry: A long entry condition is met if price closes above the trend AND selected divergence conditions are met, e.g. regular bullish divergence with a 10 bar lookback period with the divergence being below the 50 point mean. If the info table shows all 3 columns in the same color, the entry conditions are met and a position is opened.
🞘 Short Entry: A short entry condition is met if price closes below the trend AND selected divergence conditions are met, e.g. regular bearish divergence with a 10 bar lookback period with the divergence being above the 50 point mean.
🞘 Take Profit: Take Profit is determined by the Risk to Reward Ratio settings depending on the price distance between the entry price and the stop loss price, e.g. if stop loss is 1% away from entry and Risk Reward Ratio is 3:1 then Take Profit will be set at 3% from entry.
🞘 Stop Loss: Stop loss is a fixed level away from the trend source. For long positions, stop loss is set below the trend, and for short positions, above the trend.
🔶 INSTRUCTIONS The Divergence Trend Trading with Dynamic Position Sizing strategy can be set up by adding it to your TradingView chart and configuring parameters such as the oscillator source, trend source, and risk management settings. This strategy is designed to capitalize on short-term price movements by dynamically adjusting position sizes based on predefined risk parameters. Enhance the accuracy of signals by combining this strategy with additional indicators like trend-following or momentum-based tools. Adjust settings to better manage risk and optimize entry and exit points.
🔸Adding the Strategy to the Chart:
Go to your TradingView chart.
Click on the "Indicators" button at the top.
Search for "Divergence Trend Trading with Dynamic Position Sizing // AlgoFyre" in the indicators list.
Click on the strategy to add it to your chart.
🔸Configuring the Strategy:
Open the strategy settings by clicking on the gear icon next to its name on the chart.
Oscillator Source: Select the source for the oscillator. An oscillator like Stochastic needs to be attached to the chart already in order to be used as an oscillator source to be selectable.
Trend Source: Choose the trend source to determine market direction. A trend indicator like Adaptive MAs (Hurst, CVaR, Fractal) // AlgoFyre needs to be attached to the chart already in order to be used as a trend source to be selectable.
Stop Loss Percentage: Set the stop loss distance from the trend source as a percentage.
Risk/Reward Ratio: Define the desired risk/reward ratio for trades.
🔸Backtesting and Practice:
Backtest the strategy on historical data to understand how it performs in various market environments.
Practice using the strategy on a demo account before implementing it in live trading.
🔸Market Awareness:
Keep an eye on market news and events that might cause extreme price movements. The strategy reacts to price data and might not account for news-driven events that can cause large deviations.
🔸Visual Customization Visualization Settings: Customize the display of entry price, take profit, and stop loss levels.
Color Settings: Switch to the AlgoFyre theme or set custom colors for bullish, bearish, and neutral states.
Table Settings: Enable or disable the information table and adjust its position.
🔶 CONCLUSION
The Divergence Trend Trading with Dynamic Position Sizing strategy provides a robust framework for capitalizing on short-term market trends by combining price divergence with dynamic position sizing. This strategy leverages divergence conditions to identify entry points and utilizes a trend source for directional bias, ensuring trades align with prevailing market conditions. By incorporating dynamic position sizing based on a fixed risk amount, traders can effectively manage risk and adapt to varying market conditions. The strategy's customizable stop-loss and take-profit levels further enhance its risk management capabilities, making it a versatile tool for both trending and volatile markets. With its strategic blend of technical indicators and risk management, the Divergence Trend Trading strategy offers traders a comprehensive approach to optimizing trade execution and maximizing potential returns.
Oszillatoren
TrendVizPro (BETA)The provided script is a Pine Script code designed for TradingView that creates a sophisticated technical indicator known as “TrendVizPro (BETA).” This script performs advanced trend analysis using various tools, including candle patterns, RSI (Relative Strength Index), simple moving averages (SMA), previous-day price levels, and multi-timeframe analysis.
Key Features:
Candle Style Selection: Users can choose between traditional candlesticks or Heiken Ashi candlesticks for better visualization of trends.
Trend Identification:
Uptrend, Downtrend, and Neutral Trend conditions are determined using smoothed Heiken Ashi candles and the relationship between short and long SMAs.
The script highlights trends using customizable colors (green for uptrend, red for downtrend, white for neutral).
RSI Calculation:
Calculates the RSI and indicates overbought/oversold market conditions with visual signals.
Customizable RSI lengths, overbought/oversold levels, and associated colors.
Price Targeting System:
Automatically calculates potential price targets based on historical volatility, which can be overridden manually.
Upper and lower target price lines can be plotted, showing where the price might move based on historical data or user-defined percentages.
Multi-Timeframe Analysis:
A table is displayed that shows the RSI, trend, and condition (overbought, oversold, or neutral) across various timeframes (3m, 5m, 15m, 30m, 1h, 2h, 4h, Daily).
The table adapts dynamically based on the data for each timeframe.
Previous Day’s High, Low, and Average:
Plots lines representing the previous day’s high, low, and average price levels.
The midpoint between these values is also plotted for additional context.
Trading Signals:
Long and short trading signals are generated based on the trend’s strength and direction.
Exit signals are plotted to indicate potential points to exit trades.
How to Use:
Input Settings:
Candle Style: Select “Traditional Candle” or “Super Trend Heiken Ashi Candle” to choose how price data is visualized.
Trend Colors: Customize the colors for different trend conditions (Uptrend, Neutral, Downtrend).
RSI Settings: Adjust the RSI length, overbought/oversold levels, and corresponding signal colors.
Price Target: Toggle the autopilot mode to use historical data to calculate potential price targets, or manually input a percentage for custom target prices.
Table and Signal Visibility: Decide whether to display the multi-timeframe analysis table, open price, previous day levels, and various trading signals (long, short, exit).
Analyzing the Chart:
When applied to a chart, the indicator plots different price levels (open price, previous day levels, target prices) using lines.
The current trend is displayed via candle colors, and uptrend/downtrend signals are shown on the chart using arrows (long or short positions).
The multi-timeframe table provides a quick overview of trend and RSI conditions for different timeframes.
Signal Use:
Long Signals: Indicated by green arrows below bars, suggesting a strong uptrend.
Short Signals: Indicated by red arrows above bars, signaling a strong downtrend.
Exit Signals: Marked with X symbols, indicating when to consider exiting a long or short position.
Trend Entry and Exit:
Trend Entry/Exit Lines: When activated, orange lines mark optimal trend entry points, and blue lines show potential trend exit points.
Customizable Visuals:
The background color and plot styles (dashed lines, solid lines, labels) are customizable to make the chart more visually distinct and easy to interpret.
Advanced Use Cases:
Multi-Timeframe Traders: Use the multi-timeframe analysis table to check how trends and RSI values behave across different intervals, helping to identify key support/resistance levels or trend continuation points.
Intraday Trading: The script is highly effective for day traders, as it allows visualization of important intraday levels, such as previous highs/lows and current trend conditions.
Swing Trading: Swing traders can leverage the autopilot price target feature to identify optimal exit points based on historical price behavior.
Conclusion:
This indicator is a comprehensive tool designed for traders seeking to automate their trend and signal analysis. With flexible settings, it can cater to multiple trading styles, from scalping to swing trading, all within the TradingView platform.
RSI from Rolling VWAP [CHE]Introducing the RSI from Rolling VWAP Indicator
Elevate your trading strategy with the RSI from Rolling VWAP —a cutting-edge indicator designed to provide unparalleled insights and enhance your decision-making on TradingView. This advanced tool seamlessly integrates the Relative Strength Index (RSI) with a Rolling Volume-Weighted Average Price (VWAP) to deliver precise and actionable trading signals.
Why Choose RSI from Rolling VWAP ?
- Clear Trend Detection: Our enhanced algorithms ensure accurate identification of bullish and bearish trends, allowing you to capitalize on market movements with confidence.
- Customizable Time Settings: Tailor the time window in days, hours, and minutes to align perfectly with your unique trading strategy and market conditions.
- Flexible Moving Averages: Select from a variety of moving average types—including SMA, EMA, WMA, and more—to smooth the RSI, providing clearer trend analysis and reducing market noise.
- Threshold Alerts: Define upper and lower RSI thresholds to effortlessly spot overbought or oversold conditions, enabling timely and informed trading decisions.
- Visual Enhancements: Enjoy a visually intuitive interface with color-coded RSI lines, moving averages, and background fills that make interpreting market data straightforward and efficient.
- Automatic Signal Labels: Receive immediate bullish and bearish labels directly on your chart, signaling potential trading opportunities without the need for constant monitoring.
Key Features
- Inspired by Proven Tools: Building upon the robust foundation of TradingView's Rolling VWAP, our indicator offers enhanced functionality and greater precision.
- Volume-Weighted Insights: By incorporating volume into the VWAP calculation, gain a deeper understanding of price movements and market strength.
- User-Friendly Configuration: Easily adjust settings to match your trading preferences, whether you're a novice trader or an experienced professional.
- Hypothesis-Driven Analysis: Utilize hypothetical results to backtest strategies, understanding that past performance does not guarantee future outcomes.
How It Works
1. Data Integration: Utilizes the `hlc3` (average of high, low, and close) as the default data source, with customization options available to suit your trading needs.
2. Dynamic Time Window: Automatically calculates the optimal time window based on an auto timeframe or allows for fixed time periods, ensuring flexibility and adaptability.
3. Rolling VWAP Calculation: Accurately computes the Rolling VWAP by balancing price and volume over the specified time window, providing a reliable benchmark for price action.
4. RSI Analysis: Measures momentum through RSI based on Rolling VWAP changes, smoothed with your chosen moving average for enhanced trend clarity.
5. Actionable Signals: Detects and labels bullish and bearish conditions when RSI crosses predefined thresholds, offering clear indicators for potential market entries and exits.
Seamless Integration with Your TradingView Experience
Adding the RSI from Rolling VWAP to your TradingView charts is straightforward:
1. Add to Chart: Simply copy the Pine Script code into TradingView's Pine Editor and apply it to your desired chart.
2. Customize Settings: Adjust the Source Settings, Time Settings, RSI Settings, MA Settings, and Color Settings to align with your trading strategy.
3. Monitor Signals: Watch for RSI crossings above or below your set thresholds, accompanied by clear labels indicating bullish or bearish trends.
4. Optimize Your Trades: Leverage the visual and analytical strengths of the indicator to make informed buy or sell decisions, maximizing your trading potential.
Disclaimer:
The content provided, including all code and materials, is strictly for educational and informational purposes only. It is not intended as, and should not be interpreted as, financial advice, a recommendation to buy or sell any financial instrument, or an offer of any financial product or service. All strategies, tools, and examples discussed are provided for illustrative purposes to demonstrate coding techniques and the functionality of Pine Script within a trading context.
Any results from strategies or tools provided are hypothetical, and past performance is not indicative of future results. Trading and investing involve high risk, including the potential loss of principal, and may not be suitable for all individuals. Before making any trading decisions, please consult with a qualified financial professional to understand the risks involved.
By using this script, you acknowledge and agree that any trading decisions are made solely at your discretion and risk.
Get Started Today
Transform your trading approach with the RSI from Rolling VWAP indicator. Experience the synergy of momentum and volume-based analysis, and unlock the potential for more accurate and profitable trades.
Download now and take the first step towards a more informed and strategic trading journey!
For further inquiries or support, feel free to contact
Best regards
Chervolino
Inspired by the acclaimed Rolling VWAP by TradingView
Z-Scored Moving Average Suite [KFB Quant]Z-Scored Moving Average Suite
This indicator combines several types of moving averages—Simple, Exponential, and Weighted—with a Z-Score calculation to give a clearer understanding of price trends in relation to their historical averages. It is used to detect overbought (OB) and oversold (OS) conditions, allowing you to see when an asset is deviating significantly from its mean.
Key Components:
Moving Averages: The suite includes Simple (SMA), Exponential (EMA), and Weighted (WMA) Moving Averages. For each, a single, double, and triple version is calculated to smooth out noise.
Z-Score: The Z-Score measures how far the current price is from its moving average in terms of standard deviations, helping to highlight unusual price behavior.
Overbought and Oversold Levels:
- When the Z-Score crosses above a predefined threshold (1.5 by default), the asset is considered Overbought (OB).
- When the Z-Score drops below a certain level (-1.5 by default), the asset is seen as Oversold (OS).
Visualization:
- The histogram represents the average Z-Score of all the moving averages combined, colored based on bullish (blue) or bearish (brown) trends.
- Individual Z-Scores for each moving average type (SMA, EMA, WMA) are also plotted, providing further insight into the momentum and direction.
Signals:
- The table in the chart shows a summary of Z-Scores for each type of moving average. It also provides a quick glance at whether the asset is in a bullish or bearish phase, if the Z-Scores are rising or falling, and whether the asset is overbought or oversold.
This tool is highly customizable, with adjustable lengths for the moving averages and Z-Scores, making it a flexible addition to any trading strategy that relies on mean-reversion or trend analysis.
Disclaimer: This tool is provided for informational and educational purposes only and should not be considered as financial advice. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Sector Trend MapThe Sector Trend Map is a powerful tool designed to provide a sentiment heatmap for major market sectors. This indicator tracks the average trend direction across 11 key sectors, including Technology, Financials, Healthcare, Energy, and more. By monitoring each sector's sentiment, the Sector Trend Map helps traders quickly assess whether sectors are bullish or bearish, allowing for better-informed trading decisions.
This indicator plots a visual heatmap showing the sentiment strength for each sector on a scale from 0 to 100. The colors range from green for bullish sentiment to red for bearish sentiment. Additionally, it displays a real-time percentage of sectors that are bullish and bearish in a dynamic table located in the bottom right corner of the chart.
This indicator simplifies sector sentiment analysis by providing clear visual cues, making it easy to stay on top of market dynamics and make data-driven trading decisions.
Key Features:
Sentiment Heatmap: Displays a heatmap of sector sentiment ranging from bullish (green) to bearish (red).
Bullish/Bearish Percentages: A dynamic table showing the percentage of sectors that are bullish or bearish.
Tracks 11 Key Sectors: Monitors sectors such as Technology, Financials, Energy, Healthcare, and more.
Simple and Clear Visuals: Provides easy-to-read color coding for quick decision-making.
Customizable Moving Averages: Select between SMA, EMA, WMA, or DEMA for the trend calculation.
Market Hours Sensitivity: Indicator operates during regular market hours, ensuring relevance for day traders and active traders.
Overlay Sentiment Colors on Candles:
This feature allows you to overlay the sentiment (green for bullish, red for bearish) directly onto the price chart candles. You can enable or disable this option based on your preference.
How to Use the Sector Trend Map:
The heatmap is divided into different sectors. Each sector is colored based on its current sentiment:
🟢 Green (Bullish sentiment)
🔴 Red (Bearish sentiment)
Sentiment is calculated on a scale from 0 to 100, with 50 being the neutral point. Sectors above 50 are bullish, while sectors below 50 are bearish.
Bullish/Bearish Percentage Table:
A table is displayed in the bottom right corner of the screen, showing the percentage of sectors that are currently bullish and bearish.
Bullish %: The percentage of sectors above 50 on the sentiment scale.
Bearish %: The percentage of sectors below 50 on the sentiment scale.
Market Hours Activity:
The indicator only calculates and displays data during market hours (09:30 AM to 4:00 PM EST), ensuring it stays relevant to intraday trading. Outside of market hours, the indicator remains inactive.
Best Used For:
Intraday Traders: Get real-time sector sentiment during market hours and make better trading decisions based on sector strength or weakness.
Swing Traders: Monitor sector trends to spot shifts in market sentiment over time.
Sector Rotation Strategies: Use the indicator to identify which sectors are gaining or losing strength, aiding in sector rotation strategies.
Practical Example:
If 7 out of the 11 sectors display a bullish sentiment, the table will show 63.64% as bullish and 36.36% as bearish. The heatmap will show green sectors for those above the 50 sentiment threshold, allowing you to visually spot the sectors leading the market.
Gabriel's RSI ICHIMOKU CLOUDThe RSI Ichimoku Cloud combines the strengths of the Relative Strength Index (RSI) with the Ichimoku Cloud, offering a robust visualization of momentum and trend signals. This indicator helps traders identify potential trend reversals and key support/resistance levels by blending RSI with the Ichimoku Cloud components.
Key Features:
RSI Component:
Uses a customizable RSI length (default: 21) to detect overbought and oversold conditions.
Upper and Lower Bands (70 and 30) are plotted as dashed lines, highlighting critical zones of strength and weakness.
Bullish (green) and Bearish (red) cross signals are provided when RSI crosses key levels.
Ichimoku Cloud:
Conversion Line (Tenkan Sen): A 9-period Donchian channel (default), representing short-term price movements. Plotted in blue.
Base Line (Kijun Sen): A 26-period Donchian channel (default), representing mid-term price movements. Plotted in red.
Leading Span A (Senkou Span A): The average of the Conversion Line and Base Line, projected forward (displacement: 26). Plotted in green with transparency.
Leading Span B (Senkou Span B): A 52-period Donchian channel (default), projected forward (displacement: 26). Plotted in red with transparency.
The cloud fill between Senkou Span A and B changes color based on bullish (green) or bearish (red) cloud conditions.
Candlestick Overlay:
The indicator uses RSI values to color-code candlesticks. Bullish candles (RSI > Conversion Line) are green, and bearish candles (RSI < Conversion Line) are red.
Signal Crossovers:
RSI-Based Signals: Bullish and Bearish RSI crossovers with the Base Line trigger visual markers.
Ichimoku Signals: Bullish and Bearish crossovers between the Conversion Line and Base Line provide additional trade signals.
Alerts:
Alerts are triggered based on crossovers, allowing traders to set notifications for key trend changes.
This indicator is ideal for traders looking for a powerful blend of momentum (RSI) and trend-following (Ichimoku) tools in one place, with customizable settings for precise trade entry and exit signals.
Savitzky Golay Median Filtered RSI [BackQuant]Savitzky Golay Median Filtered RSI
Introducing BackQuant's Savitzky Golay Median Filtered RSI, a cutting-edge indicator that enhances the classic Relative Strength Index (RSI) by applying both a Savitzky-Golay filter and a median filter to provide smoother and more reliable signals. This advanced approach helps reduce noise and captures true momentum trends with greater precision. Let’s break down how the indicator works, the features it offers, and how it can improve your trading strategy.
Core Concept: Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a widely used momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100, with levels above 70 typically indicating overbought conditions and levels below 30 indicating oversold conditions. However, the standard RSI can sometimes generate noisy signals, especially in volatile markets, making it challenging to identify reliable entry and exit points.
To improve upon the traditional RSI, this indicator introduces two powerful filters: the Savitzky-Golay filter and a median filter.
Savitzky-Golay Filter: Smoothing with Precision
The Savitzky-Golay filter is a digital filtering technique used to smooth data while preserving important features, such as peaks and trends. Unlike simple moving averages that can distort important price data, the Savitzky-Golay filter uses polynomial regression to fit the data, providing a more accurate and less lagging result.
In this script, the Savitzky-Golay filter is applied to the RSI values to smooth out short-term fluctuations and provide a more reliable signal. By using a window size of 5 and a polynomial degree of 2, the filter effectively reduces noise without compromising the integrity of the underlying price movements.
Median Filter: Reducing Outliers
After applying the Savitzky-Golay filter, the median filter is applied to the smoothed RSI values. The median filter is particularly effective at removing short-lived outliers, further enhancing the accuracy of the RSI by reducing the impact of sudden and temporary price spikes or drops. This combination of filters creates an ultra-smooth RSI that is better suited for detecting true market trends.
Long and Short Signals
The Savitzky Golay Median Filtered RSI generates long and short signals based on user-defined threshold levels:
Long Signals: A long signal is triggered when the filtered RSI exceeds the Long Threshold (default set at 176). This indicates that momentum is shifting upward, and it may present a good buying opportunity.
Short Signals: A short signal is generated when the filtered RSI falls below the Short Threshold (default set at 162). This suggests that momentum is weakening, potentially signaling a selling opportunity or exit from a long position.
These threshold levels can be adjusted to suit different market conditions and timeframes, allowing traders to fine-tune the sensitivity of the indicator.
Customization and Visualization Options
The Savitzky Golay Median Filtered RSI comes with several customization options, enabling traders to tailor the indicator to their specific needs:
Calculation Source: Select the price source for the RSI calculation (default is OHLC4, but it can be changed to close, open, high, or low prices).
RSI Period: Adjust the lookback period for the RSI calculation (default is 14).
Median Filter Length: Control the length of the median filter applied to the smoothed RSI, affecting how much noise is removed from the signal.
Threshold Levels: Customize the long and short thresholds to define the sensitivity for generating buy and sell signals.
UI Settings: Choose whether to display the RSI and thresholds on the chart, color the bars according to trend direction, and adjust the line width and colors used for long and short signals.
Visual Feedback: Color-Coded Signals and Thresholds
To make the signals easier to interpret, the indicator offers visual feedback by coloring the price bars and the RSI plot according to the current market trend:
Green Bars indicate long signals when momentum is bullish.
Red Bars indicate short signals when momentum is bearish.
Gray Bars indicate neutral or undecided conditions when no clear signal is present.
In addition, the Long and Short Thresholds can be plotted directly on the chart to provide a clear reference for when signals are triggered, allowing traders to visually gauge the strength of the RSI relative to its thresholds.
Alerts for Automation
For traders who prefer automated notifications, the Savitzky Golay Median Filtered RSI includes built-in alert conditions for long and short signals. You can configure these alerts to notify you when a buy or sell condition is met, ensuring you never miss a trading opportunity.
Trading Applications
This indicator is versatile and can be used in a variety of trading strategies:
Trend Following: The combination of Savitzky-Golay and median filtering makes this RSI particularly useful for identifying strong trends without being misled by short-term noise. Traders can use the long and short signals to enter trades in the direction of the prevailing trend.
Reversal Trading: By adjusting the threshold levels, traders can use this indicator to spot potential reversals. When the RSI moves from overbought to oversold levels (or vice versa), it may signal a shift in market direction.
Swing Trading: The smoothed RSI provides a clear signal for short to medium-term price movements, making it an excellent tool for swing traders looking to capitalize on momentum shifts.
Risk Management: The filtered RSI can be used as part of a broader risk management strategy, helping traders avoid false signals and stay in trades only when the momentum is strong.
Final Thoughts
The Savitzky Golay Median Filtered RSI takes the classic RSI to the next level by applying advanced smoothing techniques that reduce noise and improve signal reliability. Whether you’re a trend follower, swing trader, or reversal trader, this indicator provides a more refined approach to momentum analysis, helping you make better-informed trading decisions.
As with all indicators, it is important to backtest thoroughly and incorporate sound risk management strategies when using the Savitzky Golay Median Filtered RSI in your trading system.
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
Kalman For Loop [BackQuant]Kalman For Loop
Introducing BackQuant's Kalman For Loop (Kalman FL) — a highly adaptive trading indicator that uses a Kalman filter to smooth price data and generate actionable long and short signals. This advanced indicator is designed to help traders identify trends, filter out market noise, and optimize their entry and exit points with precision. Let’s explore how this indicator works, its key features, and how it can enhance your trading strategies.
Core Concept: Kalman Filter
The Kalman Filter is a mathematical algorithm used to estimate the state of a system by filtering noisy data. It is widely used in areas such as control systems, signal processing, and time-series analysis. In the context of trading, a Kalman filter can be applied to price data to smooth out short-term fluctuations, providing a clearer view of the underlying trend.
Unlike moving averages, which use fixed weights to smooth data, the Kalman Filter adjusts its estimate dynamically based on the relationship between the process noise and the measurement noise. This makes the filter more adaptive to changing market conditions, providing more accurate trend detection without the lag associated with traditional smoothing techniques.
Please see the original Kalman Price Filter
In this script, the Kalman For Loop applies the Kalman filter to the price source (default set to the closing price) to generate a smoothed price series, which is then used to calculate signals.
Adaptive Smoothing with Process and Measurement Noise
Two key parameters govern the behavior of the Kalman filter:
Process Noise: This controls the extent to which the model allows for uncertainty in price changes. A lower process noise value will make the filter smoother but slower to react to price changes, while a higher value makes it more sensitive to recent price fluctuations.
Measurement Noise: This represents the uncertainty or "noise" in the observed price data. A higher measurement noise value gives the filter more leeway to ignore short-term fluctuations, focusing on the broader trend. Lowering the measurement noise makes the filter more responsive to minor changes in price.
These settings allow traders to fine-tune the Kalman filter’s sensitivity, adjusting it to match their preferred trading style or market conditions.
For-Loop Scoring Mechanism
The Kalman FL further enhances the effectiveness of the Kalman filter by using a for-loop scoring system. This mechanism evaluates the smoothed price over a range of periods (defined by the Calculation Start and Calculation End inputs), assigning a score based on whether the current filtered price is higher or lower than previous values.
Long Signals: A long signal is generated when the for-loop score surpasses the Long Threshold (default set at 20), indicating a strong upward trend. This helps traders identify potential buying opportunities.
Short Signals: A short signal is triggered when the score crosses below the Short Threshold (default set at -10), signaling a potential downtrend or selling opportunity.
These signals are plotted on the chart, giving traders a clear visual indication of when to enter long or short positions.
Customization and Visualization Options
The Kalman For Loop comes with a range of customization options to give traders full control over how the indicator operates and is displayed on the chart:
Kalman Price Source: Choose the price data used for the Kalman filter (default is the closing price), allowing you to apply the filter to other price points like open, high, or low.
Filter Order: Set the order of the Kalman filter (default is 5), controlling how far back the filter looks in its calculations.
Process and Measurement Noise: Fine-tune the sensitivity of the Kalman filter by adjusting these noise parameters.
Signal Line Width and Colors: Customize the appearance of the signal line and the colors used to indicate long and short conditions.
Threshold Lines: Toggle the display of the long and short threshold lines on the chart for better visual clarity.
The indicator also includes the option to color the candlesticks based on the current trend direction, allowing traders to quickly identify changes in market sentiment. In addition, a background color feature further highlights the overall trend by shading the background in green for long signals and red for short signals.
Trading Applications
The Kalman For Loop is a versatile tool that can be adapted to a variety of trading strategies and markets. Some of the primary use cases include:
Trend Following: The adaptive nature of the Kalman filter helps traders identify the start of new trends with greater precision. The for-loop scoring system quantifies the strength of the trend, making it easier to stay in trades for longer when the trend remains strong.
Mean Reversion: For traders looking to capitalize on short-term reversals, the Kalman filter's ability to smooth price data makes it easier to spot when price has deviated too far from its expected path, potentially signaling a reversal.
Noise Reduction: The Kalman filter excels at filtering out short-term price noise, allowing traders to focus on the broader market movements without being distracted by minor fluctuations.
Risk Management: By providing clear long and short signals based on filtered price data, the Kalman FL helps traders manage risk by entering positions only when the trend is well-defined, reducing the chances of false signals.
Alerts and Automation
To further assist traders, the Kalman For Loop includes built-in alert conditions that notify you when a long or short signal is generated. These alerts can be configured to trigger notifications, helping you stay on top of market movements without constantly monitoring the chart.
Final Thoughts
The Kalman For Loop is a powerful and adaptive trading indicator that combines the precision of the Kalman filter with a for-loop scoring mechanism to generate reliable long and short signals. Whether you’re a trend follower or a reversal trader, this indicator offers the flexibility and accuracy needed to navigate complex markets with confidence.
As always, it’s important to backtest the indicator and adjust the settings to fit your trading style and market conditions. No indicator is perfect, and the Kalman FL should be used alongside other tools and sound risk management practices for the best results.
SMI Ergodic Indicator/Oscillator▮ Introduction
The Stochastic Momentum Index Ergodic Indicator (SMII) is a technical analysis tool designed to predict trend reversals in the price of an asset.
It functions as a momentum oscillator, measuring the ratio of the smoothed price change to the smoothed absolute price change over a given number of previous periods.
The Ergodic SMI is based on the True Strength Index (TSI) and integrates a signal line, which is an exponential moving average (EMA) of the SMI indicator itself.
It provides a clearer picture of market trends than the traditional stochastic oscillator by incorporating the concept of "ergodicity", which helps remove market noise.
On ther other hand, the Stochastic Momentum Index Ergodic Oscillator (SMIO) is a histogram that measures the difference between TSI and it's signal line.
By default, in TradingView both SMII and SMIO are provided independently.
Here in this script these two indicators are combined, providing a more comprehensive view of price direction and market strength.
▮ Motivation: why another indicator?
The intrinsic value of this indicator lies in the fact that it allows fine adjustments in both calculation parameters, data source and visualization, features that are not present in the standard indicators or similar.
Also, trend lines breakouts and divergences detector were added.
▮ What to look for
When using the indicator, there are a few things to look out for.
First, look at the SMI signal line.
When the line crosses above -40, it is considered a buy signal, while the crossing below +40 is considered a sell signal.
Also, pay attention to divergences between the SMI and the price.
If price is rising but the SMI is showing negative divergence, it could indicate that momentum is waning and a reversal could be in the offing.
Likewise, if price is falling but the SMI is showing positive divergence, this could indicate that momentum is building and a reversal could also be in the offing.
Divergences can be considered in both indicator and/or histogram.
Examples:
▮ Notes
The indicator presented here offers both the "SMII" and the "SMIO", that is, the "Stochastic Momentum Index Ergodic Indicator" together with the "Stochastic Momentum Index Ergodic Oscillator" (histogram), as per the documentation described in reference links.
So it is important to highlight the differences in relation to my other indicator, Stochastic Momentum Index (SMI) Refurbished .
This last one is purely based on the **SMI**, which is implemented using smoothed ratio between the relative range and the high/low range.
Although they may seem the same in some situations, the calculation is actually different. The TSI tends to be more responsive at the expense of being noisier, while the SMI tends to be smoother. Which of these two indicators is best depends on the situation, the context, and the analyst's personal preference.
Please refer to reference links to more info.
▮ References
SMI documentation
SMII documentation
SMIO documentation
Stochastic RSI OHLC StrategyThe script titled "Stochastic RSI High Low Close Bars" is a versatile trading strategy implemented in Pine Script, designed for TradingView. Here's an overview of its features:
Description
This strategy leverages the Stochastic RSI to determine entry and exit signals in the market, focusing on high, low, and close values of the indicator. It incorporates various trading styles, stop-loss mechanisms, and multi-timeframe analysis to adapt to different market conditions.
Key Features
Stochastic RSI Analysis:
Uses the Stochastic RSI to identify potential entry points for long and short positions.
Tracks high, low, and close values for more granular analysis.
Multiple Trading Styles:
Supports diverse trading styles like Volume Color Swing, RSI Divergence, RSI Pullback, and more.
Allows switching between these styles to suit market dynamics.
Session-Based Trading:
Offers session control, limiting trades to specific hours (e.g., NY sessions).
Can close all positions at the end of the trading day.
Stop-Loss and Take-Profit Mechanisms:
Includes both static and dynamic stop-losses, with options for time-based stops, trailing stops, and momentum-based exits.
Customizable take-profit levels ensure efficient trade management.
Volume Analysis:
Integrates volume indicators to add a bias for trade entries and exits, enhancing signal reliability.
Multi-Timeframe Integration:
Employs multi-timeframe RSI analysis, allowing the strategy to capture broader trends and optimize entries.
This script is designed to provide flexibility and adaptability, making it useful for different trading strategies and market conditions. It is suitable for traders looking to refine their entries and exits with a focus on the Stochastic RSI.
Fetch Z-scoreThis script is enspired by the creator of the Z-score probability indicator made by www.tradingview.com
I took his calculation for the z-score and created my own strategy based on that z-score.
What is z-score? The Z-score represents how far the current price deviates from the moving average, measured in terms of standard deviations
What does this script do with the Z-score?
The script offers several customizable options, including displaying buy and sell signals based on Z-score thresholds and overlaying these signals directly on the chart or below/above the bars.
The idea is that when the Z-score exceeds a certain treshold, a count will start. The count will lead to a signal. For example: Say the Z-score dipped below -1. From there, the script will by default count whether the current Z-score is higher than the Z-score of the past 10 datapoints. If so, a buy signal will be printed on the chart. The idea is that the Z-score will creep up after a low, making sure you buy earyly in the new uptrend, making this a trend followiung system, with early trend detection.
You can choose whether you want the buy and sell signals on the seperate pane, or on the chart by toggeling a simple setting.
What are my favorite settings?
- Timeframe: weekly
- SMA Length: 75
- Z score buy treshold: -1.5
- Z score sell treshold: 3
- Lookback buy period: 20
- Lookback sell period: 20
Market Phases [OmegaTools]The Market Phases indicator utilizes the Detrended Price Oscillator (DPO) to assess various asset classes, bonds, or stock sectors across different market phases. It offers users the ability to monitor and compare trends in multiple markets through a normalized DPO approach, providing insights into relative overbought or oversold conditions. The indicator supports three distinct modes: "Asset Classes," "Bonds," and "Stock Sectors," allowing flexibility in market analysis based on user preference.
Key Features:
Detrended Price Oscillator (DPO) Calculation: The DPO is computed to remove longer-term trends and focus on shorter-term cyclical behavior. The indicator applies normalization using linear interpolation to smooth out the values for better comparison across different markets.
Three Analysis Modes:
Asset Classes: Compares the DPO for major asset classes, including stocks (S&P 500), bonds (US 10-Year), commodities (Gold), and the US Dollar Index (DXY).
Bonds: Analyzes the DPO across various bond categories such as investment-grade bonds (LQD), high-yield bonds (HYG), emerging market bonds (EMB), and corporate bonds.
Stock Sectors: Provides insight into key stock sectors, including Technology (XLK), Utilities (XLU), Financials (XLF), and Healthcare (XLV).
Real-Time Plotting:
The indicator plots the DPO values of the selected assets, bonds, or sectors on the chart. It provides a visual representation of the market phases, helping to identify potential market reversals or trends. Each plot is color-coded for clarity:
Blue: Asset/Sector 1
Red: Asset/Sector 2
Green: Asset/Sector 3
Orange: Asset/Sector 4
Table Display:
A dynamic table is displayed on the chart, showing the DPO values for the selected mode's assets or sectors. This allows quick comparison and evaluation of market trends.
Inputs:
DPO Length: Defines the lookback period for DPO calculation, adjustable between 10 and 500.
Normalization Length: Sets the length for normalizing the DPO values, with options ranging from 100 to 2000.
Mode: Choose between "Asset Classes," "Bonds," or "Stock Sectors" for tailored market analysis.
This tool is perfect for traders seeking to identify cyclical market phases, compare different asset classes, or monitor sector rotation dynamics. Use it to align your trading strategies with broader market trends and uncover potential trading opportunities across multiple markets.
DYNAMIC USD MOMENTUM INDICATOR
Hello traders,
Welcome to my script, an indicator helping you to quickly see the performance of USD in constant daily comparison to other currencies.
This script requests price data from other charts but displays overbought and oversold labels on any selected chart currency pair.
See attached images to spot high probability reversal days when USD is in extremes against multiple other currencies. The output labels represent the currency traded against USD and reaching overbought and oversold zoned on a dynamic RSI scale.
Suggested pairs with higher co relation to stronger or weaker dollar:
AUD/USD, CAD/USD, EUR/USD, GBP/USD, NZD/USD
CHF/USD and JPY/USD require more in depth analysis of individual performance of JPY AND CHF
Distance between EMA 50-100/100-150This script calculates and plots the percentage difference between the 50-period, 100-period, and 150-period Exponential Moving Averages (EMA) on a TradingView chart. The aim is to provide a clear visual representation of the market's momentum by analyzing the distance between key EMAs over time.
Key features of this script:
1. EMA Calculation : The script computes the EMA values for 50, 100, and 150 periods and calculates the percentage difference between EMA 50 and 100, and between EMA 100 and 150.
2. Custom Threshold : Users can adjust a threshold percentage to highlight significant divergences between the EMAs. A default threshold is set to 0.1%.
3. Visual Alerts : When the percentage difference exceeds the threshold, a visual marker appears on the chart:
Green Circles for bullish momentum (positive divergence),
Red Circles for bearish momentum (negative divergence),
Diamonds to indicate the first occurrence of new bullish or bearish signals, allowing users to catch fresh market trends.
4. Dynamic Plotting : The script plots two lines representing the percentage difference for each EMA pair, offering a quick and intuitive way to monitor trends.
Ideal for traders looking to gauge market direction using the relationship between multiple EMAs, this script simplifies analysis by focusing on key moving average interactions.
Multi RSIDynamically display RSIs for current timeframe, 1 min, 5 min, 15 min, 30 min, 1 hour, 4 hour, 1 day, 1 week, and 1 month timeframes.
Lower timeframe RSIs that are too far below the current timeframe will be automatically hidden. E.g., 1 min RSI isn't displayed above 5 minute timeframe and 5 min RSI isn't displayed above 15 minute timeframe.
If RSI for current timeframe is enabled, it will be hidden if the current timeframe is 1 min, 5 min, 15 min, 30 min, 1 hour, 4 hour, 1 day, 1 week, or 1 month and the RSI for that timeframe is already shown.
Can display divergences and moving average if there is an RSI shown that is the same timeframe as the chart timeframe.
Can enable alerts for when RSI(s) are very overbought (greater than or equal to 80), overbought (greater than or equal to 70), oversold (less than or equal to 30), and very oversold (less than or equal to 20).
Normalized Linear Regression (LSMA) OscillatorNormalized Linear Regression (LSMA) Oscillator
By Nathan Farmer
The Normalized LSMA Oscillator is a trend-following indicator that enhances the classic Linear Regression (LSMA) by applying a range of normalization techniques. This indicator allows traders to smooth out and normalize LSMA signals for better trend detection and dynamic market adaptation.
Key Features:
Configurable Normalization Methods:
This indicator offers several normalization techniques, such as Z-Score, Min-Max, Mean Normalization, Robust Scaler, Logistic Function, and Quantile Transformation. Each method helps in refining LSMA outputs to improve clarity in both trending and ranging market conditions.
Smoothing Options:
Smoothing can be applied after normalization, helping to reduce noise in the signals, thus making trend-following strategies that use this indicator more effective.
Recommended Settings:
Logistic Function Normalization: Recommended length of around 12, based on my preferred signal frequency.
Z-Score Normalization: Medium period (close to the default of 50), based on my preferred signal frequency.
Min-Max Normalization: Medium period, based on my preferred signal frequency.
Mean Normalization: Medium period, based on my preferred signal frequency.
Robust Scaler: Medium period, based on my preferred signal frequency.
Quantile Transformation: Medium period, based on my preferred signal frequency.
Usage:
Designed primarily for trend-following strategies, this indicator adapts well to varying market conditions. Traders can experiment with the various normalization and smoothing settings to match the indicator to their specific needs and market preferences.
Recommendation before usage:
Always backtest the indicator for yourself with respect to how you intend to use it. Modify the parameters to suit your needs, over your preferred time frame, on your preferred asset. My preferences are for the assets I happened to be looking at when I made this indicator. Odds are, you're looking at something else, over a different time frame, in a different market environment than what my settings are tailored for.
FXN1 - StochRSI Multiple AssetsThe "FXN1 StochRSI Multi Assets" is a powerful and versatile TradingView script designed for traders looking to analyze multiple assets using the Stochastic RSI (StochRSI) indicator. This script allows traders to compare the StochRSI of two different assets on the same chart, providing a dynamic tool for cross-asset analysis and decision-making.
Key Features:
Multi-Asset Stochastic RSI Calculation:
The "FXN1 StochRSI Multi" script allows users to analyze the Stochastic RSI of two different assets simultaneously. By default, the script compares the US Dollar Index (DXY) and Gold (GC1!), but users can easily customize these inputs to track any two assets of their choice.
Customizable Stochastic RSI Parameters:
The script gives traders full control over the StochRSI calculation by providing adjustable parameters such as:
K Smoothing: The number of periods used to smooth the %K line.
RSI Length: The length of the RSI calculation.
Stochastic Length: The number of periods used for the Stochastic calculation.
These customizable parameters enable traders to fine-tune the StochRSI indicator to suit their trading strategies and timeframes.
Visual Comparison of Two Assets:
The script plots the StochRSI values for both assets on the same chart, making it easy to compare momentum between two markets. Each asset is represented by distinct colors for clear differentiation:
Asset 1 (e.g., DXY) is plotted in a green line.
Asset 2 (e.g., Gold) is plotted in a yellow line.
This visual representation helps traders identify divergences, correlations, and potential trade opportunities based on momentum shifts across multiple assets.
Overbought and Oversold Zones:
The script includes predefined horizontal lines at the 80 (overbought) and 20 (oversold) levels to help traders quickly identify areas where the assets may be overextended. These zones are highlighted in bold, bright colors to stand out:
Overbought (80): A magenta line indicates the upper boundary, signaling potential selling pressure.
Oversold (20): A cyan line marks the lower boundary, signaling potential buying interest.
Use Cases:
Cross-Asset Momentum Analysis:
By tracking the StochRSI of two correlated or inversely correlated assets, traders can gauge shifts in momentum and spot divergences. For example, comparing DXY and Gold can provide valuable insights into the strength of the USD and the potential impact on commodities.
Identifying Potential Reversals:
Traders can use this indicator to detect overbought or oversold conditions in multiple markets simultaneously, making it easier to anticipate potential market reversals or trend continuations.
Diversified Trading Decisions:
Instead of focusing on a single asset, the script helps traders broaden their analysis by monitoring the momentum of two different assets. This makes it ideal for traders looking to diversify their portfolios or hedge positions based on multi-asset trends.
How It Works:
The script calculates the Stochastic RSI for each selected asset using a smooth %K line derived from the RSI of the asset’s closing price. The RSI is smoothed further to calculate the Stochastic value, and these values are plotted over time, giving traders insight into the relative strength and potential reversals for each asset.
The clear, color-coded lines for each asset make it simple to spot key StochRSI crossovers, divergences, and other potential trade signals.
Conclusion:
The "FXN1 StochRSI Multi" indicator offers a unique and practical approach for traders who want to enhance their trading analysis by incorporating the Stochastic RSI of multiple assets. With customizable settings, overbought/oversold zones, and a user-friendly design, this tool provides everything traders need to perform cross-market technical analysis. Whether you are trading forex, commodities, or indices, this script is a valuable addition to your trading toolbox.
RSI Crossover and ADX oscillator [deepakks444]RSI Crossover and ADX Oscillator
The RSI Crossover and ADX Oscillator is a custom indicator designed to help traders identify potential trend reversals and trend strength by analyzing the Relative Strength Index (RSI) across multiple timeframes, combined with the Average Directional Index (ADX) to measure the momentum of a trend. This indicator provides a more comprehensive view of the market, allowing traders to spot possible entry and exit points based on multiple signals and conditions.
How the Script Works:
1. Multi-Timeframe RSI Calculation:
This indicator calculates the RSI for three different timeframes:
RSI 1 (default: 15 minutes)
RSI 2 (default: 1 hour)
RSI 3 (default: Daily)
By comparing the RSI across multiple timeframes, traders can gauge both short-term and longer-term momentum. For example, if the shorter timeframe RSI is moving in the same direction as the longer timeframe RSI, it may confirm the strength of the trend. Conversely, if they diverge, it could signal a potential reversal or weakening of the trend.
Each RSI value can also be smoothed using a variety of smoothing methods (SMA, EMA, WMA, RMA) to reduce noise and produce cleaner signals.
2. RSI Smoothing Options:
The smoothing function helps make RSI readings clearer by filtering out short-term fluctuations. This can be useful in volatile markets where small movements can trigger false signals. The user can select the preferred smoothing method (or choose none) and set the smoothing factor to control the sensitivity of the RSI line.
None: No smoothing applied.
SMA (Simple Moving Average): Averages RSI over a specified period, providing a more straightforward trend line.
EMA (Exponential Moving Average): Puts more weight on recent data points, making the trend line more responsive to recent price movements.
WMA (Weighted Moving Average): A weighted average that emphasizes more recent values.
RMA (Running Moving Average): Another smoothing option similar to SMA but with different calculation properties.
3. ADX Trend Strength Measurement:
The Average Directional Index (ADX) is used to measure the strength of a trend, regardless of its direction. ADX is a widely used tool to confirm whether the market is trending strongly or if the market is in a sideways range.
ADX > 25: Indicates a strong trend.
ADX < 25: Indicates a weak trend or range-bound market.
In this script, the color of the ADX line changes dynamically based on whether the trend is strengthening (green) or weakening (red). This allows traders to quickly assess whether the market conditions are favorable for trend-following strategies.
4. Divergence Detection:
The script includes an option to detect regular bullish and bearish divergence between price and RSI. Divergence occurs when price moves in one direction but RSI moves in the opposite direction, which may indicate that the current trend is weakening and could be about to reverse.
Bullish Divergence: Occurs when the price makes a lower low, but the RSI makes a higher low. This could signal a potential upward reversal.
Bearish Divergence: Occurs when the price makes a higher high, but the RSI makes a lower high. This could signal a potential downward reversal.
These divergence signals help traders spot potential reversal points before they become obvious on the price chart itself.
5. No-Trade Zone:
The no-trade zone is an important feature of this script. It highlights the range between RSI 40 and 60, which represents a neutral or indecisive market condition. When the RSI is within this range, it indicates that the market lacks clear directional momentum, making it a riskier environment for trend-following trades. The script shades this region on the chart, visually warning traders to avoid initiating trades during these periods.
Visual Table Display:
To improve clarity, the script includes a table that shows key values directly on the chart:
RSI 1 (15-minute): Displays the current RSI value for the 15-minute timeframe.
RSI 2 (1-hour): Displays the current RSI value for the 1-hour timeframe.
RSI 3 (Daily): Displays the current RSI value for the Daily timeframe.
ADX: Displays the current ADX value, with color-coding to show whether the trend is strengthening (green) or weakening (red).
Long/Short Signal: This final cell in the table shows whether a potential Long or Short signal is currently active based on RSI crossovers and ADX strength.
The table can be repositioned on the chart according to user preference (Top Right, Top Left, Bottom Right, Bottom Left).
Possible Entry and Exit Points:
Long Entry Criteria:
RSI 1 crosses above RSI 2.
RSI 1 is above its 9-period moving average (to confirm upward momentum).
When these conditions are met, the script will display a potential Long signal in the table, and an alert will be triggered if enabled.
Note : ADX is rising, indicating that the trend strength is increasing. ADX is falling, indicating that the trend is weakening.
Short Entry Criteria:
RSI 1 (15-minute) crosses below RSI 2 (1-hour).
RSI 1 is below its 9-period moving average (to confirm downward momentum).
Note : ADX is rising, indicating that the trend strength is increasing. ADX is falling, indicating that the trend is weakening.
When these conditions are met, the script will display a potential Short signal in the table, and an alert will be triggered if enabled.
Exit Criteria:
Exit a Long position when a Short signal is generated or when a yellow candle appears, which indicates that momentum is weakening.
Exit a Short position when a Long signal is generated or when a yellow candle appears.
Customizable Inputs:
This script offers several customization options for users:
RSI Length and Timeframes:
Adjust the length of the RSI calculation and the timeframes for each RSI (default: 15-minute, 1-hour, Daily). This allows traders to tailor the script to different market conditions and assets.
Smoothing Method:
Choose how the RSI values are smoothed (None, SMA, EMA, WMA, RMA) and adjust the smoothing factor.
ADX Settings:
Toggle the ADX on/off, and adjust the smoothing factor and DI length to match your preferred trend strength calculation.
Divergence Detection:
Enable or disable divergence detection and set the range of bars for detecting divergence patterns.
Table Position:
Change the location of the table on the chart (Top Right, Top Left, Bottom Right, Bottom Left).
Note : I have used RSI 1 = 3 Minutes, RSI 2 = 15 Minutes and RSI 3 = 1 Hour as input in the shown chart.
Important Notes:
This script is intended for educational purposes only. It is designed to help traders learn how to combine RSI and ADX to analyze trends and momentum, but it should not be used as financial advice or a guaranteed trading strategy.
Always test the script in a demo environment before using it in live trading to understand how it behaves with different assets and timeframes.
Proper risk management and additional confirmations should be used alongside this indicator for effective trading.
RSI TOTAL MOMENTUM1 (resatserhat)SOURCE OF COLORS
Our oscillator is the classic RSI oscillator. However, in the classic RSI oscillator, only RSI14 is taken into account, the user looks at different periods when he wants, and each period shows a different level. This situation confuses the user and prevents him from reaching a clear conclusion. This indicator takes into account the relationship between more than 1 or even 10 RSI periods, and shows us with colors which direction the momentum is in all periods and how strong it is. In other words, the mathematics underlying the coloring is the relationship between different RSI periods.
RSI COLORS
The RSI line has 3 colors: red, green, blue. The red color indicates that the momentum is weakening, the green color indicates that it is strengthening, and the blue color indicates that the momentum is unstable and can switch from red to green or from green to red at any moment.
BOLLINGER BAND COLORS
It is formed by considering the same mathematics as the RSI line colors, but it shows the momentum of larger periods. That is, it changes color later than the RSI line, but it is more reliable and accurate.
Colors in Hidden Divergences
In hidden negative divergences and hidden positive divergences, a single bar usually has an outlier color, this should be taken into consideration.
How to Use Colors?
1. When the RSI shows green bottom, blue bottom or green and blue mixed bottoms, it is a strong bullish signal.
2. When the RSI shows red top, blue top or red and blue mixed tops, it is a strong bearish signal.
3. When the RSI and BAND colors are bearish, it creates a strong signal.
4. When the RSI performs the actions in the 1st definition above the Bollinger Band, the buy signal should be trusted more.
5. When the RSI performs the actions in the 2nd definition below the Bollinger Band, the sell signal should be trusted more.
40-60 LEVELS
The 40-60 levels are strong resistance and support levels. Added for the Andrew Cardwell strategy. Blue, green or blue-green mixed bottoms occurring close to the 60 level bring strong upward movements
Red, blue or red-blue mixed tops occurring close to the 40 level bring strong downward movements.
Also in the oscillator, when RSI14 goes above the 80 level, the background color turns red. When it falls below the 20 level, the background color turns green. The first one indicates a sell zone, the second one indicates a buy zone.
TÜRKÇE
RENKLERİN KAYNAĞI
Osilatörümüz klasik RSI osilatörüdür. Fakat klasik RSI osilatöründe sadece RSI14 dikkate alınır, kullanıcı istediğinde farklı periyotlara bakar ve her periyot farklı bir seviye gösterir. Bu durum kullanıcının zihnini karıştırır, net bir kanıya varmasını önler. İşte bu indikatör 1’den hatta 10’dan fazla RSI periyodu arasındaki ilişkiyi dikkate alarak, bütün periyotlardaki momentumun hangi yönde olduğunu ve hangi güçte olduğunu renklerle bize gösterir. Yani Renklendirmenin temelinde yatan matematik farklı RSI periyotları arasındaki ilişkidir.
RSI RENKLERİ
RSI çizgisi kırmızı, yeşil, mavi olmak üzere 3 renk taşır. Kırmızı renk momentumun zayıfladığını gösterir, yeşil renk güçlendiğini, mavi renk ise momentumun kararsız olduğunu ve her an kırmızdan yeşile veya yeşilden kırmızıya geçebileceğini söyler.
BOLLİNGER BANDI RENKLERİ
RSI çizgisi renkleri ile aynı matematik dikkate alınarak oluşur, fakat daha büyük periyotların momentumunu gösterir. Yani RSI çizgisine göre daha geç renk değiştirir ama daha güvenilir ve kesindir.
Gizli Uyumsuzluklarda Renkler
Gizli negatif uyumsuzluk ve gizli pozitif uyumsuzluklarda genelde tek bir barda aykırı renk oluşur, bu husus dikkate alınmalıdır.
Renkler Nasıl Kullanılmalı?
1. RSI yeşil dip, mavi dip veya yeşil ve mavi karışımı dipler gösterdiğinde yükseliş yönlü güçlü bir sinyaldir.
2. RSI kırmızı tepe, mavi tepe veya kırmızı ve mavi karışışımı tepeler gösterdiğinde düşüş yönlü güçlü bir sinyaldir.
3. RSI ve BAND renkleri ayı olduğunda güçlü bir sinyal oluşturur.
4. RSI bollinger bandının üstünde 1. Tanımdaki eylemleri gerçekleştirdiğinde alım sinyaline daha çok güvenilmeli.
5. RSI bollinger bandının altında 2. Tanımdaki eylemleri gerçekleştirdiğinde satım sinyaline daha çok güvenilmeli.
40-60 SEVİYELERİ
40-60 seviyeleri güçlü direnç ve destek seviyeleridir. Andrew Cardwell stratejisi için eklenmiştir. 60 seviyesine yakın gerçekleşen mavi, yeşil veya mavi-yeşil karışımı dipler güçlü yükseliş hareketleri getirir
40 seviyesine yakın gerçekleşen kırmızı, mavi veya kırmızı-mavi karışımı tepeler güçlü düşüş hareketleri getirir.
Osilatörde ayrıca RSI14 80 seviyesinin üzerine çıktığında arka plan rengi kırmızıya dönüşür. 20 seviyesinin altına düştüğüne arkaplan rengi yeşile dönüşür. İlki satış bölgesi ikincisi alış bölgesi olduğunu haber eder.
Gabriel's Witcher Strategy [65 Minute Trading Bot]Strategy Description: Gabriel's Witcher Strategy
Author: Gabriel
Platform: TradingView Pine Script (Version 5)
Backtested Asset: Avalanche (Coinbase Brokage for Volume adjustment)
Timeframe: 65 Minutes
Strategy Type: Comprehensive Trend-Following and Momentum Strategy with Scalping and Risk Management Features
Overview
Gabriel's Witcher Strategy is an advanced trading bot designed for the Avalanche pair on a 65-minute timeframe. This strategy integrates a multitude of technical indicators to identify and execute high-probability trading opportunities. By combining trend-following, momentum, volume analysis, and range filtering, the strategy aims to capitalize on both long and short market movements. Additionally, it incorporates scalping mechanisms and robust risk management features, including take-profit (TP) levels and commission considerations, to optimize trade performance and profitability.
====Key Components====
Source Selection:
Custom Source Flexibility: Allows traders to select from a wide range of price and volume sources (e.g., Close, Open, High, Low, HL2, HLC3, OHLC4, VWAP, On-Balance Volume, etc.) for indicator calculations, enhancing adaptability to various trading styles.
Various curves of Volume Analysis are employed:
Tick Volume Calculation: Utilizes tick volume as a fallback when actual volume data is unavailable, ensuring consistency across different data feeds.
Volume Indicators: Incorporates multiple volume-based indicators such as On-Balance Volume (OBV), Accumulation/Distribution (AccDist), Negative Volume Index (NVI), Positive Volume Index (PVI), and Price Volume Trend (PVT) for comprehensive market analysis.
Trend Indicators:
ADX (Average Directional Index): Measures trend strength using either the Classic or Masanakamura method, with customizable length and threshold settings. It's used to open positions when the mesured trend is strong, or exit when its weak.
Jurik Moving Average (JMA): A smooth moving average that reduces lag, configurable with various parameters including source, resolution, and repainting options.
Parabolic SAR: Identifies potential reversals in market trends with adjustable start, increment, and maximum settings.
Custom Trend Indicator: Utilizes highest and lowest price points over a specified timeframe to determine current and previous trend bases, visually represented with color-filled areas.
Momentum Indicators:
Relative Strength Index (RSI): Evaluates the speed and change of price movements, smoothed with a custom length and source. It's used to not enter the market for shorts in oversold or longs for overbought conditions, and to enter for long in oversold or shorts for overboughts.
Momentum-Based Calculations: Employs both Double Exponential Moving Averages (DEMA) on a MACD-based RSI to enhance momentum signal accuracy which is then further accelerated by a Hull MA. This is the technical analysis tool that determines bearish or bullish momentum.
OBV-Based Momentum Conditions: Uses two exponential moving averages of OBV to determine bullish or bearish momentum shifts, anomalities, breakouts where banks flow their funds in or Smart Money Concepts trade.
Moving Averages (MA):
Multiple MA Types: Includes Simple Moving Average (SMA), Exponential Moving Average (EMA), Weighted Moving Average (WMA), Hull Moving Average (HMA), and Volume-Weighted Moving Average (VWMA), selectable via input parameters.
MA Speed Calculation: Measures the percentage change in MA values to determine the direction and speed of the trend.
Range Filtering:
Variance-Based Filter: Utilizes variance and moving averages to filter out trades during low-volatility periods, enhancing trade quality.
Color-Coded Range Indicators: Visualizes range filtering with color changes on the chart for quick assessment.
Scalping Mechanism:
Heikin-Ashi Candles: Optionally uses Heikin-Ashi candles for smoother price action analysis.
EMA-Based Trend Detection: Employs fast, medium, and slow EMAs to determine trend direction and potential entry points.
Fractal-Based Filtering: Detects regular or BW (Black & White) fractals to confirm trade signals.
Take Profit (TP) Management:
Dynamic TP Levels: Calculates TP levels based on the number of consecutive long or short entries, adjusting targets to maximize profits.
TP Signals and Re-Entry: Plots TP signals on the chart and allows for automatic re-entry upon TP hit, maintaining continuous trade flow.
Risk Management:
Commission Integration: Accounts for trading commissions to ensure net profitability.
Position Sizing: Configured to use a percentage of equity for each trade, adjustable via input parameters.
Pyramiding: Allows up to one additional position per direction to enhance gains during strong trends.
Alerts and Visual Indicators:
Buy/Sell Signals: Plots visual indicators (triangles and flags) on the chart to signify entry and TP points.
Bar Coloring: Changes bar colors based on ADX and trend conditions for immediate visual cues.
Price Levels: Marks significant price levels related to TP and position entries with cross styles.
Input Parameters
Source Settings:
Custom Sources (srcinput): Choose from various price and volume sources to tailor indicator calculations.
ADX Settings:
ADX Type (ADX_options): Select between 'CLASSIC' and 'MASANAKAMURA' methods.
ADX Length (ADX_len): Defines the period for ADX calculation.
ADX Threshold (th): Sets the minimum ADX value to consider a strong trend.
RSI Settings:
RSI Length (len_3): Period for RSI calculation.
RSI Source (src_3): Source data for RSI.
Trend Strength Settings:
Channel Length (n1): Period for trend channel calculation.
Average Length (n2): Period for smoothing trend strength.
Jurik Moving Average (JMA) Settings:
JMA Source (inp): Source data for JMA.
JMA Resolution (reso): Timeframe for JMA calculation.
JMA Repainting (rep): Option to allow JMA to repaint.
JMA Length (lengths): Period for JMA.
Parabolic SAR Settings:
SAR Start (start): Initial acceleration factor.
SAR Increment (increment): Acceleration factor increment.
SAR Maximum (maximum): Maximum acceleration factor.
SAR Point Width (width): Visual width of SAR points.
Trend Indicator Settings:
Trend Timeframe (timeframe): Period for trend indicator calculations.
Momentum Settings:
Source Type (srcType): Select between 'Price' and 'VWAP'.
Momentum Source (srcPrice): Source data for momentum calculations.
RSI Length (rsiLen): Period for momentum RSI.
Smooth Length (sLen): Smoothing period for momentum RSI.
OBV Settings:
OBV Line 1 (e1): EMA period for OBV line 1.
OBV Line 2 (e2): EMA period for OBV line 2.
Moving Average (MA) Settings:
MA Length (length): Period for MA calculations.
MA Type (matype): Select MA type (1: SMA, 2: EMA, 3: HMA, 4: WMA, 5: VWMA).
Range Filter Settings:
Range Filter Length (length0): Period for range filtering.
Range Filter Multiplier (mult): Multiplier for range variance.
Take Profit (TP) Settings:
TP Long (tp_long0): Percentage for long TP.
TP Short (tp_short0): Percentage for short TP.
Scalping Settings:
Scalping Activation (ACT_SCLP): Enable or disable scalping.
Scalping Length (HiLoLen): Period for scalping indicators.
Fast EMA Length (fastEMAlength): Period for fast EMA in scalping.
Medium EMA Length (mediumEMAlength): Period for medium EMA in scalping.
Slow EMA Length (slowEMAlength): Period for slow EMA in scalping.
Filter (filterBW): Enable or disable additional fractal filtering.
Pullback Lookback (Lookback): Number of bars for pullback consideration.
Use Heikin-Ashi Candles (UseHAcandles): Option to use Heikin-Ashi candles for smoother trend analysis.
Strategy Logic
Indicator Calculations:
Volume and Source Selection: Determines the primary data source based on user input, ensuring flexibility and adaptability.
ADX Calculation: Computes ADX using either the Classic or Masanakamura method to assess trend strength.
RSI Calculation: Evaluates market momentum using RSI, further smoothed with custom periods.
Trend Strength Assessment: Utilizes trend channel and average lengths to gauge the robustness of current trends.
Jurik Moving Average (JMA): Smooths price data to reduce lag and enhance trend detection.
Parabolic SAR: Identifies potential trend reversals with adjustable parameters for sensitivity.
Momentum Analysis: Combines RSI with DEMA and OBV-based conditions to confirm bullish or bearish momentum.
Moving Averages: Employs multiple MA types to determine trend direction and speed.
Range Filtering: Filters out low-volatility periods to focus on high-probability trades.
Trade Conditions:
Long Entry Conditions:
ADX Confirmation: ADX must be above the threshold, indicating a strong uptrend.
RSI and Momentum: RSI below 70 and positive momentum signals.
JMA and SAR: JMA indicates an uptrend, and Parabolic SAR is below the price.
Trend Indicator: Confirms the current trend direction.
Range Filter: Ensures market is in an upward range.
Scalping Option: If enabled, additional scalping conditions must be met.
Short Entry Conditions:
ADX Confirmation: ADX must be above the threshold, indicating a strong downtrend.
RSI and Momentum: RSI above 30 and negative momentum signals.
JMA and SAR: JMA indicates a downtrend, and Parabolic SAR is above the price.
Trend Indicator: Confirms the current trend direction.
Range Filter: Ensures market is in a downward range.
Scalping Option: If enabled, additional scalping conditions must be met.
Position Management:
Entry Execution: Places long or short orders based on the identified conditions and user-selected position types (Longs, Shorts, or Both).
Take Profit (TP): Automatically sets TP levels based on predefined percentages, adjusting dynamically with consecutive trades.
Re-Entry Mechanism: Allows for automatic re-entry upon TP hit, maintaining active trading positions.
Exit Conditions: Closes positions when TP levels are reached or when opposing trend signals are detected.
Visual Indicators:
Bar Coloring: Highlights bars in green for bullish conditions, red for bearish, and orange for neutral.
Plotting Price Levels: Marks significant price levels related to TP and trade entries with cross symbols.
Signal Shapes: Displays triangle and flag shapes on the chart to indicate trade entries and TP hits.
Alerts:
Custom Alerts: Configured to notify traders of long entries, short entries, and TP hits, enabling timely trade management and execution.
Usage Instructions
Setup:
Apply the Strategy: Add the script to your TradingView chart set to BTCUSDT with a 65-minute timeframe.
Configure Inputs: Adjust the input parameters under their respective groups (e.g., Source Settings, ADX, RSI, Trend Strength, etc.) to match your trading preferences and risk tolerance.
Position Selection:
Choose Position Type: Use the Position input to select Longs, Shorts, or Both based on your market outlook.
Execution: The strategy will automatically execute and manage positions according to the selected type, ensuring targeted trading actions.
Signal Interpretation:
Buy Signals: Blue triangles below the bars indicate potential long entry points.
Sell Signals: Red triangles above the bars indicate potential short entry points.
Take Profit Signals: Flags above or below the bars signify TP hits for long and short positions, respectively.
Bar Colors: Green bars suggest bullish conditions, red bars indicate bearish conditions, and orange bars represent neutral or consolidating markets.
Risk Management:
Default Position Size: Set to 100% of equity. Adjust the default_qty_value as needed for your risk management strategy.
Commission: Accounts for a 0.1% commission per trade. Adjust the commission_value to match your broker's fees.
Pyramiding: Allows up to one additional position per direction to enhance gains during strong trends.
Backtesting and Optimization:
Historical Testing: Utilize TradingView's backtesting features to evaluate the strategy's performance over historical data.
Parameter Tuning: Optimize input parameters to align the strategy with current market dynamics and personal trading objectives.
Alerts Configuration:
Set Up Alerts: Enable and configure alerts based on the predefined alertcondition statements to receive real-time notifications of trade signals and TP hits.
Additional Features
Comprehensive Indicator Integration: Combines multiple technical indicators to provide a holistic view of market conditions, enhancing trade signal accuracy.
Scalping Options: Offers an optional scalping mechanism to capitalize on short-term price movements, increasing trading flexibility.
Dynamic Take Profit Levels: Adjusts TP targets based on the number of consecutive trades, maximizing profit potential during favorable trends.
Advanced Volume Analysis: Utilizes various volume indicators to confirm trend strength and validate trade signals.
Customizable Range Filtering: Filters trades based on market volatility, ensuring trades are taken during optimal conditions.
Heikin-Ashi Candle Support: Optionally uses Heikin-Ashi candles for smoother price action analysis and reduced noise.
====Recommendations====
Thorough Backtesting:
Historical Performance: Before deploying the strategy in a live trading environment, perform comprehensive backtesting to understand its performance under various market conditions. These are the premium settings for Avalanche Coinbase.
Optimization: Regularly review and adjust input parameters to ensure the strategy remains effective amidst changing market volatility and trends. Backtest the strategy for each crypto and make sure you are in the right brokage when using the volume sources as it will affect the overall outcome of the trading strategy.
Risk Management:
Position Sizing: Adjust the default_qty_value to align with your risk tolerance and account size.
Stop-Loss Implementation: Although the strategy includes TP levels, they're also consided to be a stop-loss mechanisms to protect against adverse market movements.
Commission Adjustment: Ensure the commission_value accurately reflects your broker's fees to maintain realistic backtesting results. Generally, 0.1~0.3% are most of the average broker's comission fees.
Slipage: The slip comssion is 1 Tick, since the strategy is adjusted to only enter/exit on bar close where most positions are available.
Continuous Monitoring:
Strategy Performance: Regularly monitor the strategy's performance to ensure it operates as expected and make adjustments as needed. A max-drawndown hit has been added to operate in case the premium Avalanche settings go wrong, but you can turn it off an adjust the equity percentage to 50% if you are confortable with the high volatile max-drown or even 100% if your account allows you to borrow cash.
Customization:
Indicator Parameters: Tailor indicator settings (e.g., ADX length, RSI period, MA types) to better fit your specific trading style and market conditions.
Scalping Options: Enable or disable scalping based on your trading preferences and risk appetite.
Conclusion
Gabriel's Witcher Strategy is a robust and versatile trading solution designed to navigate the complexities of the Crypto market. By integrating a wide array of technical indicators and providing extensive customization options, this strategy empowers traders to execute informed and strategic trades. Its comprehensive approach, combining trend analysis, momentum detection, volume evaluation, and range filtering, ensures that trades are taken during optimal market conditions. Additionally, the inclusion of scalping features and dynamic take-profit management enhances the strategy's adaptability and profitability potential. Unlike any trading strategy, with both diligent testing and continuous monitoring under the strategy tester, it's possible to achieve sustained success by adjusting the settings to the individual Crypto that need it, for example this one is preset for Avalanche Coinbase 65 Miinutes but it can be adjust for BTCUSD or Etherium if you backtest and search for the right settings.
RSI with Dynamic ColorsThe "RSI with Dynamic Colors" is a custom indicator built on top of the traditional Relative Strength Index (RSI), which helps traders identify overbought or oversold market conditions. This enhanced version includes added functionality like dynamic colors, highlighting specific conditions, and more customization options. Here's a breakdown of how this indicator works:
Indicator Components:
Relative Strength Index (RSI) Calculation:
The RSI is a momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100, helping traders determine if an asset is overbought or oversold.
In this version, the RSI is calculated with a configurable lookback period (default is 14) and applies smoothing to both upward and downward price changes using the Relative Moving Average (RMA).
Dynamic Coloring:
The indicator dynamically changes the color of the RSI line based on its value. Specific thresholds include:
Blue: When the RSI is at or above an extreme overbought level (≥ 85).
Red: When the RSI is in the overbought zone (≥ 70 but < 85).
Yellow: When the RSI is at or below the extreme oversold level (≤ 15).
Green: When the RSI is in the oversold zone (≤ 30 but > 15).
White: When the RSI is between the oversold and overbought zones.
Moving Average Options (MA):
The indicator allows the user to plot an optional moving average of the RSI for additional trend confirmation. Users can select from various types of moving averages, including Simple Moving Average (SMA), Exponential Moving Average (EMA), and others.
Bollinger Bands can be optionally applied around the RSI to visualize volatility.
Overbought and Oversold Highlights:
It provides visual highlights (green for overbought and red for oversold) in the background of the RSI plot, making it easier to identify potential reversal zones.
Divergence Detection (Optional):
The indicator can optionally display regular bullish or bearish divergence, which can signal potential trend reversals. Divergence occurs when price moves in the opposite direction of the RSI.
Bullish divergence is indicated when the price makes lower lows while the RSI makes higher lows.
Bearish divergence is shown when the price makes higher highs while the RSI makes lower highs.
Alerts:
Users can set up alerts for bullish or bearish divergence, making it easier to get notified when key conditions occur in the market.
Use Case:
This custom RSI indicator is designed for traders who want to combine the classic RSI functionality with enhanced visual aids, such as color coding for different RSI zones, customizable moving averages, and Bollinger Bands. It is particularly useful for identifying potential market tops and bottoms by highlighting overbought/oversold conditions and divergence signals.
In summary, this indicator not only retains the traditional RSI's power but also adds new layers of insight through color, moving averages, and divergence detection, helping traders make better-informed decisions.
Signals Pro [traderslog]The "Signals Pro" indicator is an advanced and versatile trading tool designed to help traders accurately identify key buy and sell signals using a combination of technical analysis factors such as candle patterns , RSI (Relative Strength Index) , and candle stability . It is highly customizable and offers a range of options that make it suitable for both short-term and long-term traders. By filtering market noise and providing actionable insights, this indicator enhances decision-making and helps traders capitalize on market movements.
At the core of the "Signals Pro" indicator is the concept of Candle Stability . The Candle Stability Index measures the ratio between a candle's body and its wicks, providing insight into the strength of the price movement during that period. A higher value indicates that the candle is more stable, meaning that the price has moved significantly without much retracement. This stability filter is crucial because it prevents the generation of signals during volatile or choppy market conditions where price direction is uncertain. Traders can adjust the Candle Stability Index from 0 to 1, allowing for precise control over how stable a candle must be for the indicator to generate a signal.
Another key feature is the use of RSI (Relative Strength Index) , a momentum oscillator that measures the speed and change of price movements. The RSI index parameter in the indicator can be customized to detect overbought or oversold conditions. When the RSI falls below the defined threshold, it signals that the market may be oversold , which can indicate a potential buying opportunity . Conversely, when the RSI exceeds a certain value, it suggests that the market is overbought , signaling a potential selling opportunity . This allows traders to time their trades more effectively by entering when market conditions are favorable and exiting before a potential reversal occurs.
The Candle Delta Length is another critical element of the "Signals Pro" indicator. This parameter measures how much the price has increased or decreased over a specific number of candles. By adjusting the Candle Delta Length , traders can define how many periods the indicator should analyze before generating a signal. A longer Candle Delta Length means the price has been trending in one direction for a longer period, providing more reliable signals. For instance, if the price has been steadily decreasing for five candles, this could signal a bullish reversal , triggering a buy signal .
To further enhance its accuracy, the "Signals Pro" indicator includes a unique feature that allows traders to disable repeating signals . This is particularly useful in situations where the market is moving sideways or during low volatility periods, where multiple signals may cluster close together, creating confusion. By enabling the disable repeating signals option, traders can prevent these repeated signals and focus on the most important and confirmed signals, ensuring cleaner charts and reducing the risk of overtrading.
A key technical aspect of the indicator is its ability to detect bullish and bearish engulfing patterns . The indicator looks for bullish engulfing patterns, which occur when a bullish candle fully engulfs the body of the previous bearish candle, signaling a potential bullish reversal . Conversely, bearish engulfing patterns occur when a bearish candle fully engulfs the previous bullish candle, indicating a bearish reversal . By incorporating these candle patterns with the Candle Stability Index and RSI levels , the indicator provides highly reliable signals based on price action and market sentiment.
Visual customization is another major advantage of the "Signals Pro" indicator. Traders can choose from several different label styles , such as text bubbles , triangles , or arrows to mark the buy and sell signals on the chart. This makes the signals stand out and easy to interpret at a glance. Furthermore, the color of these signals can be customized: green for buy signals and red for sell signals , along with options to adjust the text size and label styles for even more personalization. Traders can make the signals more or less prominent based on their preference, enhancing readability and workflow efficiency.
The indicator also includes a comprehensive alert system , ensuring traders never miss an opportunity. Alerts can be set for both buy and sell signals , and the system triggers in real-time when a valid signal is generated. This is especially useful for active traders who want to stay on top of the markets without constantly monitoring their screens. The alert system helps ensure that traders are notified of potential trading opportunities as soon as they arise, allowing them to act quickly in volatile markets.
From a practical standpoint, the "Signals Pro" indicator is designed to work seamlessly across multiple timeframes, making it suitable for scalpers, day traders, swing traders, and even long-term investors. Its flexibility allows it to adapt to different trading styles and time horizons, providing value for a wide range of market participants.
In summary, the Signals Pro indicator offers a robust and customizable solution for identifying buy and sell signals . By combining candle stability , RSI analysis , and engulfing patterns , the indicator provides traders with reliable signals to enter or exit trades. The ability to customize signal appearance, coupled with a real-time alert system , makes the "Signals Pro" indicator an invaluable tool for traders looking to improve their timing and decision-making. Whether you are looking to capture short-term price movements or want to time entries and exits in longer-term trends, this indicator offers the insights needed to navigate the markets with confidence.
Aroon Oscillator [BigBeluga]Aroon Oscillator with Mean Reversion & Trend Signals is a versatile tool that helps traders identify both trend direction and potential mean reversion points. The core Aroon Oscillator tracks the strength of a trend by measuring how long it has been since a high or low price occurred within a specified period. This oscillator provides trend-following signals (LONG/SHORT) along with mean reversion signals, giving traders both the ability to ride trends and anticipate reversals.
The unique feature of this indicator is the Mean Reversion Signals, marked with dots on the main chart, indicating potential points where the trend might reverse or retrace. In addition, trend-following signals (LONG and SHORT) are plotted directly on the chart, providing clear entry and exit points when a trend is beginning or ending.
🔵 IDEA
The Aroon Oscillator with Mean Reversion indicator provides a combined approach of trend analysis and mean reversion. The core idea is to track the health and momentum of trends, while also identifying when those trends might reverse or slow down. This dual approach allows traders to both follow the prevailing market direction and also capture mean reversion opportunities.
The oscillator is smoothed with John Ehlers' Zero Lag function , which helps reduce noise and improves signal clarity by removing lag without sacrificing the indicator's responsiveness.
The indicator uses color-coded signals and an easy-to-read oscillator to visually represent different types of signals on the chart. This makes it easy for traders to spot important changes in market trends and take action based on both the trend-following and mean reversion aspects of the indicator.
🔵 KEY FEATURES & USAGE
Trend Following Signals (LONG/SHORT):
In addition to mean reversion signals, the indicator also provides clear trend-following signals. LONG signals (green arrows) are plotted when the oscillator crosses above zero, indicating a potential uptrend. Conversely, SHORT signals (blue arrows) are plotted when the oscillator crosses below zero, signaling a potential downtrend.
Mean Reversion Signals:
This indicator features unique mean reversion signals, represented by dots on the main chart. These signals occur when the oscillator crosses over or under a smoother signal line, indicating that the current trend might be losing strength and a reversal or retracement is possible. Green dots represent a possible upward reversion, while blue dots signal a potential downward reversion.
Color-Coded Signals and Oscillator:
The Aroon Oscillator is color-coded to make it visually easier for traders to differentiate between trends and mean reversion signals. When the oscillator is above zero, the area is filled with green, and when it is below zero, the area is filled with blue. This visual representation helps traders quickly identify the current market condition at a glance.
🔵 CUSTOMIZATION
Aroon Length & Smoothing: Control the sensitivity of the Aroon Oscillator by adjusting the lookback period and smoothing settings, allowing traders to fine-tune the indicator to match different market conditions.
Mean Reversion Signals: Enable or disable mean reversion signals based on your trading preferences. Adjust the signal line length to control when these reversal signals are triggered.
Color Customization: Customize the colors for the oscillator and signals to match your chart’s color scheme for better visual clarity.
