Trend Stability Index (TSI)Overview
The Trend Stability Index (TSI) is a technical analysis tool designed to evaluate the stability of a market trend by analyzing both price movements and trading volume. By combining these two crucial elements, the TSI provides traders with insights into the strength and reliability of ongoing trends, assisting in making informed trading decisions.
Key Features
• Dual Analysis: Integrates price changes and volume fluctuations to assess trend stability.
• Customizable Periods: Allows users to set evaluation periods for both trend and volume based on their trading preferences.
• Visual Indicators: Displays the Trend Stability Index as a line chart, highlights neutral zones, and uses background colors to indicate trend stability or instability.
Configuration Settings
1. Trend Length (trendLength)
• Description: Determines the number of periods over which the price stability is evaluated.
• Default Value: 15
• Usage: A longer trend length smooths out short-term volatility, providing a clearer picture of the overarching trend.
2. Volume Length (volumeLength)
• Description: Sets the number of periods over which trading volume changes are assessed.
• Default Value: 15
• Usage: Adjusting the volume length helps in capturing significant volume movements that may influence trend strength.
Calculation Methodology
The Trend Stability Index is calculated through a series of steps that analyze both price and volume changes:
1. Price Change Rate (priceChange)
• Calculation: Utilizes the Rate of Change (ROC) function on the closing prices over the specified trendLength.
• Purpose: Measures the percentage change in price over the trend evaluation period, indicating the direction and momentum of the price movement.
2. Volume Change Rate (volumeChange)
• Calculation: Applies the Rate of Change (ROC) function to the trading volume over the specified volumeLength.
• Purpose: Assesses the percentage change in trading volume, providing insight into the conviction behind price movements.
3. Trend Stability (trendStability)
• Calculation: Multiplies priceChange by volumeChange.
• Purpose: Combines price and volume changes to gauge the overall stability of the trend. A higher positive value suggests a strong and stable trend, while negative values may indicate trend weakness or reversal.
4. Trend Stability Index (TSI)
• Calculation: Applies a Simple Moving Average (SMA) to the trendStability over the trendLength period.
• Purpose: Smooths the trend stability data to create a more consistent and interpretable index.
Trend/Ranging Determination
• Stable Trend (isStable)
• Condition: When the TSI value is greater than 0.
• Interpretation: Indicates that the current trend is stable and likely to continue in its direction.
• Unstable Trend / Range-bound Market
• Condition: When the TSI value is less than or equal to 0.
• Interpretation: Suggests that the trend may be weakening, reversing, or that the market is moving sideways without a clear direction.
Visualization
The TSI indicator employs several visual elements to convey information effectively:
1. TSI Line
• Representation: Plotted as a blue line.
• Purpose: Displays the Trend Stability Index values over time, allowing traders to observe trend stability dynamics.
2. Neutral Horizontal Line
• Representation: A gray horizontal line at the 0 level.
• Purpose: Serves as a reference point to distinguish between stable and unstable trends.
3. Background Color
• Stable Trend: Green background with 80% transparency when isStable is true.
• Unstable Trend: Red background with 80% transparency when isStable is false.
• Purpose: Provides an immediate visual cue about the current trend’s stability, enhancing the interpretability of the indicator.
Usage Guidelines
• Identifying Trend Strength: Utilize the TSI to confirm the strength of existing trends. A consistently positive TSI suggests strong trend momentum, while a negative TSI may signal caution or a potential reversal.
• Volume Confirmation: The integration of volume changes helps in validating price movements. Significant price changes accompanied by corresponding volume shifts can reinforce the reliability of the trend.
• Entry and Exit Signals: Traders can use crossovers of the TSI with the neutral line (0 level) as potential entry or exit points. For instance, a crossover from below to above 0 may indicate a bullish trend initiation, while a crossover from above to below 0 could suggest bearish momentum.
• Combining with Other Indicators: To enhance trading strategies, consider using the TSI in conjunction with other technical indicators such as Moving Averages, RSI, or MACD for comprehensive market analysis.
Example Scenario
Imagine analyzing a stock with the following observations using the TSI:
• The TSI has been consistently above 0 for the past 30 periods, accompanied by increasing trading volume. This scenario indicates a strong and stable uptrend, suggesting that buying opportunities may be favorable.
• Conversely, if the TSI drops below 0 while the price remains relatively flat and volume decreases, it may imply that the current trend is losing momentum, and the market could be entering a consolidation phase or preparing for a trend reversal.
Conclusion
The Trend Stability Index is a valuable tool for traders seeking to assess the reliability and strength of market trends by integrating price and volume dynamics. Its customizable settings and clear visual indicators make it adaptable to various trading styles and market conditions. By incorporating the TSI into your trading analysis, you can enhance your ability to identify and act upon stable and profitable trends.
Oszillatoren
True Range Trend StrengthThis script is designed to analyze trend strength using True Range calculations alongside Donchian Channels and smoothed moving averages. It provides a dynamic way to interpret market momentum, trend reversals, and anticipate potential entry points for trades.
Key Functionalities:
Trend Strength Oscillator:
Calculates trend strength based on the difference between long and short momentum derived from ATR (Average True Range) adjusted stop levels.
Smooths the trend strength using a simple moving average for better readability.
Donchian Channels on Trend Strength Oscillator:
Plots upper and lower Donchian Channels on the smoothed trend strength oscillator.
Traders can use these levels to anticipate breakout points and determine the strength of a trend.
Zero-Cross Shading:
Highlights bullish and bearish zones with shaded backgrounds:
Green for bullish zones where smoothed trend strength is above zero.
Red for bearish zones where smoothed trend strength is below zero.
Moving Averages for Oscillator:
Overlays fast and slow moving averages on the oscillator to provide crossover signals:
Fast MA Cross Above Slow MA: Indicates bullish momentum.
Fast MA Cross Below Slow MA: Indicates bearish momentum.
Alerts:
Alerts are available for MA crossovers, allowing traders to receive timely notifications about potential trend reversals or continuation signals.
Anticipating Entries with Donchian Channels:
The integration of Donchian Channels offers an edge in anticipating excellent trade entries.
Traders can use the oscillator's position relative to the channels to gauge oversold/overbought conditions or potential breakouts.
Use Case:
This script is particularly useful for traders looking to:
Identify the strength and direction of market trends.
Time entries and exits based on dynamic Donchian Channel levels and trend strength analysis.
Incorporate moving averages and visual cues for better decision-making.
Sigma ScoreFunction and Purpose
The Sigma Score indicator is a tool for analyzing volatility and identifying unusual price movements of a financial instrument over a specified timeframe. It calculates the "Sigma Score," which measures how far the current price change deviates from its historical average in terms of standard deviations. This helps identify potential extremes and unusual market conditions.
Features
Timeframe Control
Users can select the desired timeframe for analysis (e.g., minutes, hours, days). This makes the indicator adaptable to various trading styles:
Supported timeframes: Minutes (M1, M5, M10, M15), Hours (H1, H4, H12), Days (D), Weeks (W), Months (M).
Sigma Score Calculation
The indicator computes the logarithmic return between consecutive price values.
It calculates a simple moving average (SMA) and the standard deviation (StDev) of these returns.
The Sigma Score is derived as the difference between the current return and the average, divided by the standard deviation.
Visual Representation
Sigma Score Plot: The Sigma Score is displayed as a line.
Horizontal Threshold Lines:
A middle line (0) for reference.
Upper and lower threshold lines (default: 2.0 and -2.0) for highlighting extremes.
Background Highlighting:
Green for values above the upper threshold (positive deviations).
Red for values below the lower threshold (negative deviations).
Custom Settings
Timeframe
Select the timeframe for analysis using a dropdown menu (default: D for daily).
Thresholds
Upper Threshold: Default = 2.0 (positive extreme area).
Lower Threshold: Default = -2.0 (negative extreme area).
Both values can be adjusted to modify the indicator's sensitivity.
Use Cases
Identifying Extremes: Values above or below the thresholds can signal unusual market conditions, such as overbought or oversold areas.
Analyzing Market Anomalies: The Sigma Score quantifies how unusual a price movement is based on historical data.
Visual Aid: Threshold lines and background highlighting simplify the interpretation of boundary conditions.
Notes and Limitations
Timeframe Dependency: Results may vary depending on the selected timeframe. Shorter timeframes highlight short-term movements, while longer timeframes capture broader trends.
Volatility Sensitivity: The indicator is sensitive to changes in market volatility. Sudden price swings may produce extreme Sigma values.
Summary
The Sigma Score indicator is a powerful tool for traders and analysts to quickly identify unusual market conditions and make informed decisions. Its flexibility in adjusting timeframes and thresholds makes it a versatile addition to any trading strategy.
Dynamic RSI with Overbought/Oversold LinesDynamic RSI with Overbought/Oversold Lines
This indicator enhances the traditional RSI (Relative Strength Index) by dynamically adjusting the overbought and oversold levels based on the highest and lowest RSI values over a user-defined period. The indicator plots these levels as horizontal lines, allowing traders to visually identify when the market is "overbought" or "oversold."
Features:
Dynamic Overbought/Oversold Levels: Automatically adjusts the overbought and oversold levels based on the highest and lowest RSI values within the defined period, ensuring more accurate signals tailored to the current market conditions.
Customizable RSI Period: Choose your preferred RSI period to suit your trading strategy.
Signal Alerts: Visual signals are displayed when the RSI crosses into the overbought or oversold zone, indicating potential reversal points.
Background Color Alerts: The background changes color when the RSI exceeds overbought or oversold levels, making it easier to spot these important zones at a glance.
Clean and Simple: A minimalist design focusing on the key elements, making it suitable for all traders.
How to Use:
Overbought Zone: When the RSI moves above the overbought line (red), it may indicate that the asset is overbought, signaling a potential price reversal or pullback.
Oversold Zone: When the RSI moves below the oversold line (green), it may indicate that the asset is oversold, signaling a potential price bounce or reversal.
This dynamic RSI indicator is perfect for those looking to capture market extremes and improve their trading decisions. It's especially useful for timeframes like 30-minute and 1-hour charts, where market conditions tend to shift more rapidly.
MultiLayer Awesome Oscillator Saucer Strategy [Skyrexio]Overview
MultiLayer Awesome Oscillator Saucer Strategy leverages the combination of Awesome Oscillator (AO), Williams Alligator, Williams Fractals and Exponential Moving Average (EMA) to obtain the high probability long setups. Moreover, strategy uses multi trades system, adding funds to long position if it considered that current trend has likely became stronger. Awesome Oscillator is used for creating signals, while Alligator and Fractal are used in conjunction as an approximation of short-term trend to filter them. At the same time EMA (default EMA's period = 100) is used as high probability long-term trend filter to open long trades only if it considers current price action as an uptrend. More information in "Methodology" and "Justification of Methodology" paragraphs. The strategy opens only long trades.
Unique Features
No fixed stop-loss and take profit: Instead of fixed stop-loss level strategy utilizes technical condition obtained by Fractals and Alligator to identify when current uptrend is likely to be over (more information in "Methodology" and "Justification of Methodology" paragraphs)
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Multilayer trades opening system: strategy uses only 10% of capital in every trade and open up to 5 trades at the same time if script consider current trend as strong one.
Short and long term trend trade filters: strategy uses EMA as high probability long-term trend filter and Alligator and Fractal combination as a short-term one.
Methodology
The strategy opens long trade when the following price met the conditions:
1. Price closed above EMA (by default, period = 100). Crossover is not obligatory.
2. Combination of Alligator and Williams Fractals shall consider current trend as an upward (all details in "Justification of Methodology" paragraph)
3. Awesome Oscillator shall create the "Saucer" long signal (all details in "Justification of Methodology" paragraph). Buy stop order is placed one tick above the candle's high of last created "Saucer signal".
4. If price reaches the order price, long position is opened with 10% of capital.
5. If currently we have opened position and price creates and hit the order price of another one "Saucer" signal another one long position will be added to the previous with another one 10% of capital. Strategy allows to open up to 5 long trades simultaneously.
6. If combination of Alligator and Williams Fractals shall consider current trend has been changed from up to downtrend, all long trades will be closed, no matter how many trades has been opened.
Script also has additional visuals. If second long trade has been opened simultaneously the Alligator's teeth line is plotted with the green color. Also for every trade in a row from 2 to 5 the label "Buy More" is also plotted just below the teeth line. With every next simultaneously opened trade the green color of the space between teeth and price became less transparent.
Strategy settings
In the inputs window user can setup strategy setting: EMA Length (by default = 100, period of EMA, used for long-term trend filtering EMA calculation). User can choose the optimal parameters during backtesting on certain price chart.
Justification of Methodology
Let's go through all concepts used in this strategy to understand how they works together. Let's start from the easies one, the EMA. Let's briefly explain what is EMA. The Exponential Moving Average (EMA) is a type of moving average that gives more weight to recent prices, making it more responsive to current price changes compared to the Simple Moving Average (SMA). It is commonly used in technical analysis to identify trends and generate buy or sell signals. It can be calculated with the following steps:
1.Calculate the Smoothing Multiplier:
Multiplier = 2 / (n + 1), Where n is the number of periods.
2. EMA Calculation
EMA = (Current Price) × Multiplier + (Previous EMA) × (1 − Multiplier)
In this strategy uses EMA an initial long term trend filter. It allows to open long trades only if price close above EMA (by default 50 period). It increases the probability of taking long trades only in the direction of the trend.
Let's go to the next, short-term trend filter which consists of Alligator and Fractals. Let's briefly explain what do these indicators means. The Williams Alligator, developed by Bill Williams, is a technical indicator designed to spot trends and potential market reversals. It uses three smoothed moving averages, referred to as the jaw, teeth, and lips:
Jaw (Blue Line): The slowest of the three, based on a 13-period smoothed moving average shifted 8 bars ahead.
Teeth (Red Line): The medium-speed line, derived from an 8-period smoothed moving average shifted 5 bars forward.
Lips (Green Line): The fastest line, calculated using a 5-period smoothed moving average shifted 3 bars forward.
When these lines diverge and are properly aligned, the "alligator" is considered "awake," signaling a strong trend. Conversely, when the lines overlap or intertwine, the "alligator" is "asleep," indicating a range-bound or sideways market. This indicator assists traders in identifying when to act on or avoid trades.
The Williams Fractals, another tool introduced by Bill Williams, are used to pinpoint potential reversal points on a price chart. A fractal forms when there are at least five consecutive bars, with the middle bar displaying the highest high (for an up fractal) or the lowest low (for a down fractal), relative to the two bars on either side.
Key Points:
Up Fractal: Occurs when the middle bar has a higher high than the two preceding and two following bars, suggesting a potential downward reversal.
Down Fractal: Happens when the middle bar shows a lower low than the surrounding two bars, hinting at a possible upward reversal.
Traders often combine fractals with other indicators to confirm trends or reversals, improving the accuracy of trading decisions.
How we use their combination in this strategy? Let’s consider an uptrend example. A breakout above an up fractal can be interpreted as a bullish signal, indicating a high likelihood that an uptrend is beginning. Here's the reasoning: an up fractal represents a potential shift in market behavior. When the fractal forms, it reflects a pullback caused by traders selling, creating a temporary high. However, if the price manages to return to that fractal’s high and break through it, it suggests the market has "changed its mind" and a bullish trend is likely emerging.
The moment of the breakout marks the potential transition to an uptrend. It’s crucial to note that this breakout must occur above the Alligator's teeth line. If it happens below, the breakout isn’t valid, and the downtrend may still persist. The same logic applies inversely for down fractals in a downtrend scenario.
So, if last up fractal breakout was higher, than Alligator's teeth and it happened after last down fractal breakdown below teeth, algorithm considered current trend as an uptrend. During this uptrend long trades can be opened if signal was flashed. If during the uptrend price breaks down the down fractal below teeth line, strategy considered that uptrend is finished with the high probability and strategy closes all current long trades. This combination is used as a short term trend filter increasing the probability of opening profitable long trades in addition to EMA filter, described above.
Now let's talk about Awesome Oscillator's "Sauser" signals. Briefly explain what is the Awesome Oscillator. The Awesome Oscillator (AO), created by Bill Williams, is a momentum-based indicator that evaluates market momentum by comparing recent price activity to a broader historical context. It assists traders in identifying potential trend reversals and gauging trend strength.
AO = SMA5(Median Price) − SMA34(Median Price)
where:
Median Price = (High + Low) / 2
SMA5 = 5-period Simple Moving Average of the Median Price
SMA 34 = 34-period Simple Moving Average of the Median Price
Now we know what is AO, but what is the "Saucer" signal? This concept was introduced by Bill Williams, let's briefly explain it and how it's used by this strategy. Initially, this type of signal is a combination of the following AO bars: we need 3 bars in a row, the first one shall be higher than the second, the third bar also shall be higher, than second. All three bars shall be above the zero line of AO. The price bar, which corresponds to third "saucer's" bar is our signal bar. Strategy places buy stop order one tick above the price bar which corresponds to signal bar.
After that we can have the following scenarios.
Price hit the order on the next candle in this case strategy opened long with this price.
Price doesn't hit the order price, the next candle set lower low. If current AO bar is increasing buy stop order changes by the script to the high of this new bar plus one tick. This procedure repeats until price finally hit buy order or current AO bar become decreasing. In the second case buy order cancelled and strategy wait for the next "Saucer" signal.
If long trades has been opened strategy use all the next signals until number of trades doesn't exceed 5. All trades are closed when the trend changes to downtrend according to combination of Alligator and Fractals described above.
Why we use "Saucer" signals? If AO above the zero line there is a high probability that price now is in uptrend if we take into account our two trend filters. When we see the decreasing bars on AO and it's above zero it's likely can be considered as a pullback on the uptrend. When we see the stop of AO decreasing and the first increasing bar has been printed there is a high probability that this local pull back is finished and strategy open long trade in the likely direction of a main trend.
Why strategy use only 10% per signal? Sometimes we can see the false signals which appears on sideways. Not risking that much script use only 10% per signal. If the first long trade has been open and price continue going up and our trend approximation by Alligator and Fractals is uptrend, strategy add another one 10% of capital to every next saucer signal while number of active trades no more than 5. This capital allocation allows to take part in long trades when current uptrend is likely to be strong and use only 10% of capital when there is a high probability of sideways.
Backtest Results
Operating window: Date range of backtests is 2023.01.01 - 2024.11.25. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Initial capital: 10000 USDT
Percent of capital used in every trade: 10%
Maximum Single Position Loss: -5.10%
Maximum Single Profit: +22.80%
Net Profit: +2838.58 USDT (+28.39%)
Total Trades: 107 (42.99% win rate)
Profit Factor: 3.364
Maximum Accumulated Loss: 373.43 USDT (-2.98%)
Average Profit per Trade: 26.53 USDT (+2.40%)
Average Trade Duration: 78 hours
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters.
How to Use
Add the script to favorites for easy access.
Apply to the desired timeframe and chart (optimal performance observed on 3h BTC/USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
Adapted RSI w/ Multi-Asset Regime Detection v1.1The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of an asset's recent price changes to detect overbought or oversold conditions in the price of said asset.
In addition to identifying overbought and oversold assets, the RSI can also indicate whether your desired asset may be primed for a trend reversal or a corrective pullback in price. It can signal when to buy and sell.
The RSI will oscillate between 0 and 100. Traditionally, an RSI reading of 70 or above indicates an overbought condition. A reading of 30 or below indicates an oversold condition.
The RSI is one of the most popular technical indicators. I intend to offer a fresh spin.
Adapted RSI w/ Multi-Asset Regime Detection
Our Adapted RSI makes necessary improvements to the original Relative Strength Index (RSI) by combining multi-timeframe analysis with multi-asset monitoring and providing traders with an efficient way to analyse market-wide conditions across different timeframes and assets simultaneously. The indicator automatically detects market regimes and generates clear signals based on RSI levels, presenting this data in an organised, easy-to-read format through two dynamic tables. Simplicity is key, and having access to more RSI data at any given time, allows traders to prepare more effectively, especially when trading markets that "move" together.
How we calculate the RSI
First, the RSI identifies price changes between periods, calculating gains and losses from one look-back period to the next. This look-back period averages gains and losses over 14 periods, which in this case would be 14 days, and those gains/losses are calculated based on the daily closing price. For example:
Average Gain = Sum of Gains over the past 14 days / 14
Average Loss = Sum of Losses over the past 14 days / 14
Then we calculate the Relative Strength (RS):
RS = Average Gain / Average Loss
Finally, this is converted to the RSI value:
RSI = 100 - (100 / (1 + RS))
Key Features
Our multi-timeframe RSI indicator enhances traditional technical analysis by offering synchronised Daily, Weekly, and Monthly RSI readings with automatic regime detection. The multi-asset monitoring system allows tracking of up to 10 different assets simultaneously, with pre-configured major pairs that can be customised to any asset selection. The signal generation system provides clear market guidance through automatic regime detection and a five-level signal system, all presented through a sophisticated visual interface with dynamic RSI line colouring and customisable display options.
Quick Guide to Use it
Begin by adding the indicator to your chart and configuring your preferred assets in the "Asset Comparison" settings.
Position the two information tables according to your preference.
The main table displays RSI analysis across three timeframes for your current asset, while the asset table shows a comparative analysis of all monitored assets.
Signals are colour-coded for instant recognition, with green indicating bullish conditions and red for bearish conditions. Pay special attention to regime changes and signal transitions, using multi-timeframe confluence to identify stronger signals.
How it Works (Regime Detection & Signals)
When we say 'Regime', a regime is determined by a persistent trend or in this case momentum and by leveraging this for RSI, which is a momentum oscillator, our indicator employs a relatively simple regime detection system that classifies market conditions as either Bullish (RSI > 50) or Bearish (RSI < 50). Our benchmark between a trending bullish or bearish market is equal to 50. By leveraging a simple classification system helps determine the probability of trend continuation and the weight given to various signals. Whilst we could determine a Neutral regime for consolidating markets, we have employed a 'neutral' signal generation which will be further discussed below...
Signal generation occurs across five distinct levels:
Strong Buy (RSI < 15)
Buy (RSI < 30)
Neutral (RSI 30-70)
Sell (RSI > 70)
Strong Sell (RSI > 85)
Each level represents different market conditions and probability scenarios. For instance, extreme readings (Strong Buy/Sell) indicate the highest probability of mean reversion, while neutral readings suggest equilibrium conditions where traders should focus on the overall regime bias (Bullish/Bearish momentum).
This approach offers traders a new and fresh spin on a popular and well-known tool in technical analysis, allowing traders to make better and more informed decisions from the well presented information across multiple assets and timeframes. Experienced and beginner traders alike, I hope you enjoy this adaptation.
USDJPY vanilla indicatorThis Pine Script indicator, USDJPY Strength Index, helps traders evaluate the strength and momentum of the USD/JPY currency pair. It combines the strength of the US Dollar Index (DXY), the inverse of the Japanese Yen Index (JPYX), and the trend of USD/JPY based on moving averages.
Key Features:
1. Strength Measurement: Calculates a score between 0–100 to indicate USD/JPY momentum.
• Above 70: Strong bullish signal (uptrend likely).
• Below 30: Strong bearish signal (downtrend likely).
2. Trend Analysis: Uses 21 EMA and 50 EMA differences to assess trend direction and strength.
3. Visual Indicators:
• Blue line: USDJPY Strength Index.
• Orange line: 50-period EMA of the index for longer-term trends.
• Background colors: Green (bullish) and red (bearish) highlight strong momentum zones.
This indicator provides clear signals to help traders make informed buy or sell decisions for the USD/JPY pair.
tipp: use horizontal line for mark last low and high. when the blue line comes back again you must be ready for open position if the line bounce back. use engulfing pattern for extra confirmation.
Kalman Trend Strength Index (K-TSI)The Kalman Trend Strength Index (K-TSI) is an innovative technical indicator that combines the Kalman filter with correlation analysis to measure trend strength in financial markets. This sophisticated tool aims to provide traders with a more refined method for trend analysis and market dynamics interpretation.
The use of the Kalman filter is a key feature of the K-TSI. This advanced algorithm is renowned for its ability to extract meaningful signals from noisy data. In financial markets, this translates to smoothing out price action while maintaining responsiveness to genuine market movements. By applying the Kalman filter to price data before performing correlation analysis, the K-TSI potentially offers more stable and reliable trend signals.
The synergy between the Kalman-filtered price data and correlation analysis creates an oscillator that attempts to capture market dynamics more effectively. The correlation component contributes by measuring the strength and consistency of price movements relative to time, while the Kalman filter adds robustness by reducing the impact of market noise. Basing these calculations on Kalman-filtered data may help reduce false signals and provide a clearer picture of underlying market trends.
A notable aspect of the K-TSI is its normalization process. This approach adjusts the indicator's values to a standardized range (-1 to 1), allowing for consistent interpretation across different market conditions and timeframes. This flexibility, combined with the noise-reduction properties of the Kalman filter, positions the K-TSI as a potentially useful tool for various market environments.
In practice, traders might find that the K-TSI offers several potential benefits:
Smoother trend identification, which could aid in detecting the start and end of trends more accurately.
Possibly reduced false signals, particularly in choppy or volatile markets.
Potential for improved trend strength assessment, which might lead to more confident trading decisions.
Consistent performance across different timeframes, due to the adaptive nature of the Kalman filter and the normalization process.
The K-TSI's visual representation as a color-coded histogram further enhances its utility. The changing colors and intensities provide an intuitive way to gauge both the direction and strength of trends, making it easier for traders to quickly assess market conditions.
While the K-TSI builds upon existing concepts in technical analysis, its integration of the Kalman filter with correlation analysis offers traders an interesting tool for market analysis. It represents an attempt to address common challenges in technical analysis, such as noise reduction and trend strength quantification.
As with any technical indicator, the K-TSI should be used as part of a broader trading strategy rather than in isolation. Its effectiveness will depend on how well it aligns with a trader's individual approach and market conditions. For traders looking to explore a more refined trend strength oscillator, the Kalman Trend Strength Index could be a worthwhile addition to their analytical toolkit.
ADX and DI Trend meter and status table IndicatorThis ADX (Average Directional Index) and DI (Directional Indicator) indicator helps identify:
Trend Direction & Strength:
LONG: +DI above -DI with ADX > 20
SHORT: -DI above +DI with ADX > 20
RANGE: ADX < 20 indicates choppy/sideways market
Trading Signals:
Bullish: +DI crosses above -DI (green triangle)
Bearish: -DI crosses below +DI (red triangle)
ADX Strength Levels:
Strong: ADX ≥ 50
Moderate: ADX 30-49
Weak: ADX 20-29
No Trend: ADX < 20
Best Uses:
Trend confirmation before entering trades
Identifying ranging vs trending markets
Exit signal when trend weakens
Works well on multiple timeframes
Most effective in combination with other indicators
The table displays current trend direction and ADX strength in real-time
Kalman Synergy Oscillator (KSO)The Kalman Synergy Oscillator (KSO) is an innovative technical indicator that combines the Kalman filter with two well-established momentum oscillators: the Relative Strength Index (RSI) and Williams %R. This combination aims to provide traders with a more refined tool for market analysis.
The use of the Kalman filter is a key feature of the KSO. This sophisticated algorithm is known for its ability to extract meaningful signals from noisy data. In financial markets, this translates to smoothing out price action while maintaining responsiveness to genuine market movements. By applying the Kalman filter to price data before calculating the RSI and Williams %R, the KSO potentially offers more stable and reliable signals.
The synergy between the Kalman-filtered price data and the two momentum indicators creates an oscillator that attempts to capture market dynamics more effectively. The RSI contributes its strength in measuring the magnitude and speed of price movements, while Williams %R adds sensitivity to overbought and oversold conditions. Basing these calculations on Kalman-filtered data may help reduce false signals and provide a clearer picture of underlying market trends.
A notable aspect of the KSO is its dynamic weighting system. This approach adjusts the relative importance of the RSI and Williams %R based on their current strengths, allowing the indicator to emphasize the most relevant information as market conditions change. This flexibility, combined with the noise-reduction properties of the Kalman filter, positions the KSO as a potentially useful tool for different market conditions.
In practice, traders might find that the KSO offers several potential benefits:
Smoother oscillator movements, which could aid in trend identification and reversal detection.
Possibly reduced whipsaws, particularly in choppy or volatile markets.
Potential for improved divergence detection, which might lead to more timely reversal signals.
Consistent performance across different timeframes, due to the adaptive nature of the Kalman filter.
While the KSO builds upon existing concepts in technical analysis, its integration of the Kalman filter with traditional momentum indicators offers traders an interesting tool for market analysis. It represents an attempt to address common challenges in technical analysis, such as noise reduction and false signal minimization.
As with any technical indicator, the KSO should be used as part of a broader trading strategy rather than in isolation. Its effectiveness will depend on how well it aligns with a trader's individual approach and market conditions. For traders looking to explore a more refined momentum oscillator, the Kalman Synergy Oscillator could be a worthwhile addition to their analytical toolkit.
Detrended Price Oscillator [NexusSignals]Detrended Price Oscillator (DPO) is a detrended price oscillator, used in technical analysis, strips out price trends in an effort to estimate the length of price cycles from peak to peak or trough to trough.
DPO is not a momentum indicator, instead highlights peaks and troughs in price, which are used to estimate buy and sell points in line with the historical cycle. (cf. to investopedia)
DPO indicator made by NexusSignals components :
a filled area that allow users to see easy the trend of an asset;
a sma moving average on chart (default length is 20)
a 20 sma on oscillator, both ma's are color coded to show uptrend / downtrend
a donchian channel applied to the dpo to show breakouts, breakdowns and resistances/support, reversals
few alerts for price crossing above ma, cross above the 0 dpo line, and for cross above and below the donchian channels top and bottom
How you can use DPO indicator ?
The detrended price oscillator (DPO) can be used for measuring the distance between peaks and troughs in the indicator that may help traders to make future decisions as they can locate the most recent trough and determine when the next one may occur in the meassured distance on oscillator between peaks and troughs.
You can use the indicator to find the potential price reversals, for example when the price of an asset is in a bearish trend and the dpo is bouncing from the donchian channel bottom, that may be a potential swing low for that asset, same thing in a bullish trend when the dpo rejecting at top of donchian channel may be a trend reversal, a pullback or swing high.
When DPO is above the 0 trend is in an uptrend and when dpo is below the zero the asset is possible to move into a downtrend.
Also crosses of DPO above and below the DPO moving average may signalising a trend change.
RSI + Normalized Fisher Transform with SignalsThis indicator combines three tools for market analysis: the Relative Strength Index (RSI), the RSI's moving average, and the Fisher Transform. RSI is a momentum oscillator that measures the speed and change of price movements, helping identify overbought and oversold conditions. The RSI moving average is a smoothed version of the RSI that filters noise and confirms trends. The Fisher Transform is a mathematical technique that transforms price data into a Gaussian normal distribution, making it easier to identify turning points. It has been normalized to the same scale as the RSI (0-100) for consistency.
Purpose
The goal of this indicator is to identify potential buy and sell opportunities with varying degrees of strength (strong and weak). By combining the RSI, its moving average, and the Fisher Transform, the indicator ensures signals are based on both momentum and reversals, making it highly versatile across different market conditions.
Key Features
This indicator provides strong and weak buy and sell signals. A strong buy occurs when the RSI crosses above its moving average while both the RSI and its moving average are oversold (below the default threshold of 30), and the Fisher Transform reverses direction within the same or prior bar while also being oversold. A weak buy occurs when the Fisher Transform is oversold, and the RSI crosses above its moving average while its value is between the default oversold threshold (30) and 50. A strong sell occurs when the RSI crosses below its moving average while both the RSI and its moving average are overbought (above the default threshold of 70), and the Fisher Transform reverses direction within the same or prior bar while also being overbought. A weak sell occurs when the Fisher Transform is overbought, and the RSI crosses below its moving average while its value is between 50 and the default overbought threshold (70).
The indicator includes customizable thresholds and lengths. Users can adjust the oversold and overbought thresholds to suit their trading style. The RSI length, moving average length, and Fisher Transform length are also customizable. The Fisher Transform is scaled to the RSI’s range of 0-100 to simplify analysis and signal interpretation.
How to Use the Indicator
On the chart, you will see the RSI line in blue, the RSI moving average in orange, and the Fisher Transform in purple. Horizontal lines at the default oversold (30) and overbought (70) levels mark critical zones for signals. Adjust these thresholds in the indicator settings as needed.
Strong buy signals are shown as larger, darker green arrows below the price. Weak buy signals are small lime arrows below the price. Strong sell signals are larger, darker red arrows above the price. Weak sell signals are small fuchsia arrows above the price.
Signal Interpretation
A strong buy indicates a highly favorable buying opportunity. This typically occurs when the asset is in a downtrend but shows signs of reversal, particularly in oversold zones. A weak buy suggests a potential buying opportunity but with less conviction, often when the market is neutral to slightly bearish but showing upward momentum. A strong sell indicates a highly favorable selling opportunity, usually occurring when the asset is in an uptrend but shows signs of reversal, particularly in overbought zones. A weak sell suggests a potential selling opportunity but with less conviction, often in neutral to slightly bullish markets showing downward momentum.
Practical Tips
Avoid using signals in isolation. Combine this indicator with other tools such as trendlines, moving averages, or support/resistance levels for greater accuracy. Adjust the parameters for different assets to match their volatility. For volatile assets, consider wider thresholds like 20/80 for oversold/overbought levels. For less volatile assets, tighter thresholds like 35/65 may be more appropriate. Use higher timeframes to confirm signals before trading on lower timeframes. Be cautious in sideways markets, as both RSI and the Fisher Transform perform better in trending conditions.
Instructions for Adjustments
To change the oversold or overbought levels, open the indicator settings by clicking the gear icon and modify the "Oversold Threshold" and "Overbought Threshold" values. To adjust lengths for RSI and Fisher Transform, update the "RSI Length," "RSI Moving Average Length," and "Fisher Transform Length" settings. If needed, toggle signal visibility by enabling or disabling specific arrows (Strong Buy, Weak Buy, Strong Sell, Weak Sell) in the "Style" tab.
Best Practices
Risk management is essential. Always set appropriate stop-loss levels and position sizes based on your risk tolerance. Backtest the indicator on historical data to understand its performance and behavior for your chosen asset and timeframe. Combining this indicator with volume or volatility analysis (Bollinger Band Width, for example) can help confirm signal validity.
This indicator simplifies decision-making by identifying high-probability trading opportunities using a combination of momentum, trend, and reversals. Follow these instructions to fully utilize its capabilities without needing to analyze the underlying code.
Smoothed Renko OscillatorSMOOTHED RENKO OSCILLATOR
Technical indicator combining Renko charting with oscillator mechanics for price momentum analysis. Brick size determines sensitivity of price movement detection, with adjustable smoothing for noise reduction.
Parameters include brick size (default 10), smoothing period (5), oscillator period (14), and smoothing type selection (EMA/SMA/WMA). Values above zero indicate bullish momentum, below zero bearish momentum, with ±40-50 marking potential reversal zones. Zero-line crossovers suggest trend changes.
Larger brick settings reduce noise but delay signals, while smaller bricks increase sensitivity. EMA smoothing provides faster response, while SMA/WMA offer more stable readings. The indicator supports trend confirmation, momentum measurement, divergence analysis, and entry/exit timing.
Best used in conjunction with price action and additional indicators for comprehensive market analysis. Particularly effective in trending markets for momentum confirmation and potential reversal identification.
Delta OscillatorAn advanced technical indicator that helps traders identify buying and selling pressure in the market by analyzing volume-based price movements.
Features
Real-time calculation of buying and selling volume
Cumulative delta conversion into oscillator format (-50 to +50 range)
Color-coded visualization (green for buying pressure, red for selling pressure)
Customizable period length for calculations
How It Works
The indicator:
Calculates buying/selling volume based on price direction
Accumulates delta over time
Normalizes values into oscillator format
Displays results as a colored line chart
Trading Applications
Identify potential trend reversals
Measure buying/selling momentum
Confirm price action signals
Spot divergences with price
Installation
Copy the provided Pine Script code
Open TradingView Chart → Pine Editor
Paste the code and click "Add to Chart"
Settings
Period: Adjustable timeframe for calculations (default: 14)
Visualization: Line width and colors can be customized
RS Cycles [QuantVue]The RS Cycles indicator is a technical analysis tool that expands upon traditional relative strength (RS) by incorporating Beta-based adjustments to provide deeper insights into a stock's performance relative to a benchmark index. It identifies and visualizes positive and negative performance cycles, helping traders analyze trends and make informed decisions.
Key Concepts:
Traditional Relative Strength (RS):
Definition: A popular method to compare the performance of a stock against a benchmark index (e.g., S&P 500).
Calculation: The traditional RS line is derived as the ratio of the stock's closing price to the benchmark's closing price.
RS=Stock Price/Benchmark Price
Usage: This straightforward comparison helps traders spot periods of outperformance or underperformance relative to the market or a specific sector.
Beta-Adjusted Relative Strength (Beta RS):
Concept: Traditional RS assumes equal volatility between the stock and benchmark, but Beta RS accounts for the stock's sensitivity to market movements.
Calculation:
Beta measures the stock's return relative to the benchmark's return, adjusted by their respective volatilities.
Alpha is then computed to reflect the stock's performance above or below what Beta predicts:
Alpha=Stock Return−(Benchmark Return×β)
Significance: Beta RS highlights whether a stock outperforms the benchmark beyond what its Beta would suggest, providing a more nuanced view of relative strength.
RS Cycles:
The indicator identifies positive cycles when conditions suggest sustained outperformance:
Short-term EMA (3) > Mid-term EMA (10) > Long-term EMA (50).
The EMAs are rising, indicating positive momentum.
RS line shows upward movement over a 3-period window.
EMA(21) > 0 confirms a broader uptrend.
Negative cycles are marked when the opposite conditions are met:
Short-term EMA (3) < Mid-term EMA (10) < Long-term EMA (50).
The EMAs are falling, indicating negative momentum.
RS line shows downward movement over a 3-period window.
EMA(21) < 0 confirms a broader downtrend.
This indicator combines the simplicity of traditional RS with the analytical depth of Beta RS, making highlighting true relative strength and weakness cycles.
Indicator DashboardThis script creates an 'Indicator Dashboard' designed to assist you in analyzing financial markets and making informed decisions. The indicator provides a summary of current market conditions by presenting various technical analysis indicators in a table format. The dashboard evaluates popular indicators such as Moving Averages, RSI, MACD, and Stochastic RSI. Below, we'll explain each part of this script in detail and its purpose:
### Overview of Indicators
1. **Moving Averages (MA)**:
- This indicator calculates Simple Moving Averages (“SMA”) for 5, 14, 20, 50, 100, and 200 periods. These averages provide a visual summary of price movements. Depending on whether the price is above or below the moving average, it determines the market direction as either “Bullish” or “Bearish.”
2. **RSI (Relative Strength Index)**:
- The RSI helps identify overbought or oversold market conditions. Here, the RSI is calculated for a 14-period window, and this value is displayed in the table. Additionally, the 14-period moving average of the RSI is also included.
3. **MACD (Moving Average Convergence Divergence)**:
- The MACD indicator is used to determine trend strength and potential reversals. This script calculates the MACD line, signal line, and histogram. The MACD condition (“Bullish,” “Bearish,” or “Neutral”) is displayed alongside the MACD and signal line values.
4. **Stochastic RSI**:
- Stochastic RSI is used to identify momentum changes in the market. The %K and %D lines are calculated to determine the market condition (“Bullish” or “Bearish”), which is displayed along with the calculated values for %K and %D.
### Table Layout and Presentation
The dashboard is presented in a vertical table format in the top-right corner of the chart. The table contains two columns: “Indicator” and “Status,” summarizing the condition of each technical indicator.
- **Indicator Column**: Lists each of the indicators being tracked, such as SMA values, RSI, MACD, etc.
- **Status Column**: Displays the current status of each indicator, such as “Bullish,” “Bearish,” or specific values like the RSI or MACD.
The table also includes rounded indicator values for easier interpretation. This helps traders quickly assess market conditions and make informed decisions based on multiple indicators presented in a single location.
### Detailed Indicator Status Calculations
1. **SMA Status**: For each moving average (5, 14, 20, 50, 100, 200), the script checks if the current price is above or below the SMA. The status is determined as “Bullish” if the price is above the SMA and “Bearish” if below, with the value of the SMA also displayed.
2. **RSI and RSI Average**: The RSI value for a 14-period is displayed along with its 14-period SMA, which provides an average reading of the RSI to smooth out volatility.
3. **MACD Indicator**: The MACD line, signal line, and histogram are calculated using standard parameters (12, 26, 9). The status is shown as “Bullish” when the MACD line is above the signal line, and “Bearish” when it is below. The exact values for the MACD line, signal line, and histogram are also included.
4. **Stochastic RSI**: The %K and %D lines of the Stochastic RSI are used to determine the trend condition. If %K is greater than %D, the condition is “Bullish,” otherwise it is “Bearish.” The actual values of %K and %D are also displayed.
### Conclusion
The 'Indicator Dashboard' provides a comprehensive overview of multiple technical indicators in a single, easy-to-read table. This allows traders to quickly gauge market conditions and make more informed decisions. By consolidating key indicators like Moving Averages, RSI, MACD, and Stochastic RSI into one dashboard, it saves time and enhances the efficiency of technical analysis.
This script is particularly useful for traders who prefer a clean and organized overview of their favorite indicators without needing to plot each one individually on the chart. Instead, all the crucial information is available at a glance in a consolidated format.
Market Session Times and Volume [Market Spotter]Market Session Times and Volume
Market Session Times
Inputs
The inputs tab consists of timezone adjustment which would be the chosen timezone for the plotting of the market sessions based on the market timings.
Further it contains settings for each box to show/hide and change box colour and timings for Asian, London and New York Sessions.
How it works
The indicator primarily works by marking the session highs and lows for the chosen time in the inputs, each of the sessions can be input a custom time value which would plot the box. It helps to identify the important price levels and the trading range for each individual session.
The midpoint of each session is marked with a dashed line. The indicator also marks a developing session while it being formed as well to identify potential secondary levels.
Usage
It can be used to trade session breakouts, false breaks and also divide the daily movement into parts and identify possible patterns while trading.
2. Volumes
Inputs
The volume part has 2 inputs - Smoothing and Normalisation. The smoothing period can simply be used to take in charge volumes of last X bars and normalisation can be used for calculating relative volumes based on last Y bars.
How it works
The indicator takes into account the buy and sell volumes of last X bars and then displays that as a relative smoothed volume which helps to identify longer term build or distribution of volume. It plots the positive volume from 0 to 100 and negative volume from 0 to -100 which has been normalised. The colors identify gradual increase or decrease in volumes
Usage
It can also be used to trade volume spikes well and can identify potential market shifts
BTC vs Altcoin CorrelationThis Pine Script indicator calculates and visualizes the rolling correlation between Bitcoin (BTC) and a selected altcoin, while providing insights into the percentage of time the correlation remains above a user-defined threshold. Users can independently configure the correlation calculation period and the lookback period for measuring the percentage of time above the threshold. The correlation is displayed as a color-coded line: green when above the threshold and red otherwise, with a dashed horizontal line marking the threshold level. A dynamic table displays the current correlation value and the percentage of time spent above the threshold within the specified period, enabling quick evaluation of correlation dynamics between BTC and the chosen altcoin.
RSI Difference (Fast and Slow)Introduction
Oscillators like the RSI are fundamental tools for identifying trends in financial markets. Their ability to measure price momentum allows traders to detect overbought, oversold levels, and divergences, anticipating trend changes. Are there ways to improve the use of traditional RSI? How can we obtain more detailed information about current trends? This indicator answers these questions by expanding the functionalities of the traditional RSI and offering an additional tool for analysis.
How does it work?
This indicator provides a framework for trend analysis based on the following setup:
Fast RSI
Slow RSI
SMA of the fast RSI
SMA of the slow RSI
Histogram
Custom Indicator Settings
My preferred configuration is based on the 13 and 55 moving averages. The rest of the setup is as follows:
I typically use the 13 and 55 moving averages to configure both the RSI and short- and long-term moving averages.
Interpretation and Signals: Including a Long-Period RSI
Including a long-period RSI helps identify key patterns in market behavior. Crossovers between the two can be used to establish entry patterns:
If the fast RSI crosses above the slow RSI, this could indicate a long-entry pattern.
If the fast RSI crosses below the slow RSI, this could indicate a short-entry pattern.
Interpretation and Signals: Including Moving Averages
Including moving averages for both the short- and long-period RSI can help identify the base trend of the movement and, consequently:
Avoid false signals.
Trade in favor of the trend.
A simple way to start working with these is to use the crossover of the moving averages to identify the current trend:
If the short-period SMA is above the long-period SMA, the trend is bullish.
If the short-period SMA is below the long-period SMA, the trend is bearish.
Interpretation and Signals: The Histogram
The histogram represents the difference between the moving averages. If the histogram is positive, the short average is above the long average. If the histogram is below zero, the short average is below the long average. Divergences with price provide signals of potential exhaustion in the movement, indicating a possible reversal.
Indicator Details
This indicator builds upon the traditional RSI by integrating additional features that enhance its utility for traders. Here’s how each component is calculated and how they contribute to the originality of the script:
Fast RSI and Slow RSI: The fast RSI is calculated using a shorter lookback period, allowing it to capture rapid changes in momentum. The slow RSI uses a longer period to smooth out fluctuations and provide a broader view of the trend. These two RSIs work together to identify significant momentum shifts.
SMA of RSI values: The simple moving averages (SMA) of the fast and slow RSI help filter out noise and provide clear crossover signals. The SMAs are calculated using standard formulas but applied to the RSI values rather than price data, which adds a layer of insight into momentum trends.
Histogram calculation: The histogram represents the difference between the SMA of the fast RSI and the SMA of the slow RSI. This value gives a visual representation of the convergence or divergence of momentum. When the histogram crosses zero, it signifies a potential shift in the underlying trend.
This indicator combines multiple layers of analysis: fast and slow momentum, trend confirmation through SMAs, and divergence detection via the histogram. This multi-dimensional approach provides traders with a more comprehensive tool for trend analysis and decision-making.
Conclusion
This article has explored how to use this indicator to identify trends, leverage entry patterns, and analyze divergences by combining the fast RSI, slow RSI, their moving averages, and a histogram. Additionally, I’ve detailed how I usually interpret this indicator:
Identifying RSI patterns to anticipate momentum changes.
Using SMAs to confirm base trends.
Leveraging the histogram to detect divergences and potential price reversals.
Cryptocurrency StrengthMulti-Currency Analysis: Monitor up to 19 different currencies simultaneously, including major pairs like USD, EUR, JPY, and GBP, as well as emerging market currencies such as CNY, INR, and BRL.
Customizable Display: Easily toggle the visibility of each currency and personalize their colors to suit your preferences, allowing for a tailored analysis experience.
Real-Time Strength Measurement: The indicator calculates and displays the relative strength of each currency in real-time, helping you identify potential trends and trading opportunities.
Clear Visual Representation: With color-coded lines and a dynamic legend, the indicator presents complex currency relationships in an easy-to-understand format.
Advantages
Comprehensive Market View: Gain insights into the broader forex market dynamics by analyzing multiple currencies at once.
Trend Identification: Quickly spot strong and weak currencies, aiding in the identification of potential trending pairs.
Divergence Detection: Use the indicator to identify divergences between currency strength and price action, potentially signaling reversals or continuation patterns.
Flexible Time Frames: Apply the indicator across various time frames to align with your trading strategy, from intraday to long-term analysis.
Enhanced Decision Making: Make more informed trading decisions by understanding the relative strength of currencies involved in your trades.
Unique Qualities
TSI-Based Calculations: Utilizes the True Strength Index for a more nuanced and responsive measure of currency strength compared to simple price-based indicators.
Adaptive Legend: The indicator features a dynamic legend that updates automatically based on the selected currencies, ensuring a clutter-free and relevant display.
Emerging Market Inclusion: Unlike many standard currency strength indicators, this tool includes a wide range of emerging market currencies, providing a truly global perspective.
Whether you're a seasoned forex trader or just starting out, this Currency Strength Indicator offers valuable insights that can complement your existing strategy and potentially improve your trading outcomes. Its combination of comprehensive analysis, customization options, and clear visualization makes it an essential tool for navigating the complex world of currency trading.
Currency StrengthThis innovative Currency Strength Indicator is a powerful tool for forex traders, offering a comprehensive and visually intuitive way to analyze the relative strength of multiple currencies simultaneously. Here's what makes this indicator stand out:
Extensive Currency Coverage
One of the most striking features of this indicator is its extensive coverage of currencies. While many similar tools focus on just the major currencies, this indicator includes:
Major currencies: USD, EUR, JPY, GBP, CHF, CAD, AUD, NZD
Additional currencies: CNY, HKD, KRW, MXN, INR, RUB, SGD, TRY, BRL, ZAR, THB
This wide range allows traders to gain insights into a broader spectrum of the forex market, including emerging markets and less commonly traded currencies.
Unique Visual Presentation
The indicator boasts a clear and user-friendly interface:
Each currency is represented by a distinct colored line for easy identification
A legend is prominently displayed at the top of the chart, using color-coded labels for quick reference
Users can customize which currencies to display, allowing for a tailored analysis
This clean, organized presentation enables traders to quickly grasp the relative strengths of different currencies at a glance.
Robust Measurement Methodology
The indicator employs the True Strength Index (TSI) to calculate currency strength, which provides several advantages:
TSI is a momentum oscillator that shows both trend direction and overbought/oversold conditions
It uses two smoothing periods (fast and slow), which helps filter out market noise and provides more reliable signals
The indicator calculates TSI for each currency index (e.g., DXY for USD, EXY for EUR), ensuring a comprehensive strength measurement
By using TSI, this indicator offers a more nuanced and accurate representation of currency strength compared to simpler moving average-based indicators.
Customization and Flexibility
Traders can fine-tune the indicator to suit their needs:
Adjustable TSI parameters (fast and slow periods)
Ability to show/hide specific currencies
Customizable color scheme for each currency line
Practical Applications
This Currency Strength Indicator can be used for various trading strategies:
Identifying potential trend reversals when a currency reaches extreme overbought or oversold levels
Spotting divergences between currency pairs
Confirming trends across multiple timeframes
Enhancing multi-pair trading strategies
By providing a clear, comprehensive, and customizable view of currency strength across a wide range of currencies, this indicator equips traders with valuable insights for making informed trading decisions in the complex world of forex.
RSI Strategy With TP/SL - Lower TFThis Pine Script strategy integrates the Relative Strength Index (RSI) for trade signals with user-defined Take Profit (TP) and Stop Loss (SL) levels. It's designed for flexible application in different market conditions, offering long, short, or dual-direction trading.
Short Description
The strategy uses the RSI to identify overbought and oversold market conditions:
Buy signal: When RSI drops below the specified "Buy Level."
Sell signal: When RSI rises above the "Sell Level."
Additionally, it manages risk and profit targets with:
Take Profit (TP): Exits trades when the price reaches a percentage gain.
Stop Loss (SL): Exits trades to limit losses if the price falls by a certain percentage.
The strategy is versatile and includes options for visualizing performance, monthly profit/loss data, and detailed trade metrics.
How to Use
Set Parameters:
RSI Period: Default is 14. Adjust based on your analysis.
RSI Buy/Sell Levels:
Buy Level: Default is 40. Consider higher levels for conservative entries.
Sell Level: Default is 60. Lower this for earlier exits.
Take Profit (%): Set your profit target (default: 5%).
Stop Loss (%): Set your risk tolerance (default: 2%).
Trade Direction: Choose "Long Only," "Short Only," or "Both."
Interpret Signals:
Buy signals appear when RSI crosses below the buy threshold.
Sell signals appear when RSI crosses above the sell threshold.
Risk Management:
The strategy dynamically calculates TP and SL levels for each trade.
TP/SL is applied using the percentage input based on the entry price.
Monitor Performance:
Review trade statistics in the "Strategy Tester."
Use the monthly performance table to track P/L across months.
Customize Alerts:
Alerts for buy, sell, TP, and SL events can be used to automate notifications.
Key Features
Configurable RSI Settings: Adaptable to various market conditions.
Risk Management: Built-in TP and SL management.
Customizable Trade Direction: Tailored for long-only, short-only, or both directions.
Monthly P/L Table: Visualizes performance trends over time.
Alerts: Notifies when critical trade events occur.
Please do your own research before ase this to your real trading.
Adaptive DEMA Momentum Oscillator (ADMO)Overview:
The Adaptive DEMA Momentum Oscillator (ADMO) is an open-source technical analysis tool developed to measure market momentum using a Double Exponential Moving Average (DEMA) and adaptive standard deviation. By dynamically combining price deviation from the moving average with normalized standard deviation, ADMO provides traders with a powerful way to interpret market conditions.
Key Features:
Double Exponential Moving Average (DEMA):
The core calculation of the indicator is based on DEMA, which is known for being more responsive to price changes compared to traditional moving averages. This makes the ADMO capable of capturing trend momentum effectively.
Standard Deviation Integration:
A normalized standard deviation is used to adaptively weight the oscillator. This makes the indicator more sensitive to market volatility, enhancing responsiveness during high volatility and reducing sensitivity during calmer periods.
Oscillator Representation:
The final oscillator value is derived from the combination of the DEMA-based Z-score and the normalized standard deviation. This final value is visualized as a color-coded histogram, reflecting bullish or bearish momentum.
Color-Coded Histogram:
Bullish Momentum: Values above zero are colored using a customizable bullish color (default: light green).
Bearish Momentum: Values below zero are colored using a customizable bearish color (default: red).
How It Works:
Inputs:
DEMA Length: Defines the period used for calculating the Double Exponential Moving Average. It can be adjusted from 1 to 200 to suit different trading styles.
Standard Deviation Length: Sets the lookback period for standard deviation calculations, which influences the responsiveness of the oscillator.
Standard Deviation Weight (StdDev Weight): Controls the weight given to the normalized standard deviation, allowing customization of the oscillator's sensitivity to volatility.
Calculation Steps:
Double Exponential Moving Average Calculation:
The DEMA is calculated using two exponential moving averages, which helps in reducing lag compared to a simple moving average.
Z-score Calculation:
The Z-score is derived by comparing the difference between the DEMA and its smoothed average (LSMA) to the standard deviation. This indicates how far the current value is from the mean in units of standard deviation.
Normalized Standard Deviation:
The standard deviation is normalized by subtracting the mean standard deviation and dividing by the standard deviation of the values. This helps to make the oscillator adaptive to recent changes in volatility.
Final Oscillator Value:
The final value is calculated by multiplying the Z-score with a factor based on the normalized standard deviation, resulting in a momentum indicator that adapts to different market conditions.
Visualization:
Histogram: The oscillator is plotted as a histogram, with color-coded bars showing the strength and direction of market momentum.
Positive (bullish) values are shown in green, indicating upward momentum.
Negative (bearish) values are shown in red, indicating downward momentum.
Zero Line: A zero line is plotted to provide a reference point, helping users quickly determine whether the current momentum is bullish or bearish.
Example Use Cases:
Momentum Identification:
ADMO helps identify the current market momentum by dynamically adapting to changes in market volatility. When the histogram is above zero and green, it indicates bullish conditions, whereas values below zero and red suggest bearish momentum.
Volatility-Adjusted Signals:
The normalized standard deviation weighting allows the ADMO to provide more reliable signals during different market conditions. This makes it particularly useful for traders who want to be responsive to market volatility while avoiding false signals.
Trend Confirmation and Divergence:
ADMO can be used to confirm the strength of a trend or identify potential divergences between price and momentum. This helps traders spot potential reversal points or continuation signals.
Summary:
The Adaptive DEMA Momentum Oscillator (ADMO) offers a unique approach by combining momentum analysis with adaptive standard deviation. The integration of DEMA makes it responsive to price changes, while the standard deviation adjustment helps it stay relevant in both high and low volatility environments. It's a versatile tool for traders who need an adaptive, momentum-based approach to technical analysis.
Feel free to explore the code and adapt it to your trading strategy. The open-source nature of this tool allows you to adjust the settings and visualize the output to fit your personal trading preferences.
