Spread Entry Balance of PowerThis is a bar chart showing the strength of a potential option spread entry using 8 conditions for each side of a trade, bull or bear.
In theory, if the SE Strength (Spread Entry Strength) is at one of the extremes of the Bear or Bull side, then a spread is prime for entry.
To calculate this, the 8 conditions receive a 1 or zero dependent on whether the condition is true (1) or false (0), and then all of those are summed. The primary gist of the strength comes from Nishant's book, or my interpretation thereof, with some additives that limits what I need to review (such as condition 8 below.)
The 8 Bull Conditions are:
1) Bollinger Bands are outside of the Keltner Channels
2) ADX is trending up
3) RSI is trending up
4) -DI is trending down
5) RSI is under 30
6) Price is below the lower Keltner Channel
7) Price is between the lower Bollinger Band and the Bollinger basis.
8) Price at one point within the last 5 bars was below the lower Bollinger Band
The 8 Bear Conditions are the inverse conditions (except the first), and the conditions are given a negative disposition (meaning they sum to -8 :)):
1) Bollinger Bands are outside of the Keltner Channels
2) ADX is trending down
3) RSI is trending down
4) +DI is trending up
5) RSI is over 70
6) Price is above the upper Keltner Channel
7) Price is between the upper Bollinger Band and the Bollinger basis.
8) Price at one point within the last 5 bars was above the upper Bollinger Band
In den Scripts nach "美国夏威夷+prime公司" suchen
Neglected Volume by DGTVolume is one piece of information that is often neglected, however, learning to interpret volume brings many advantages and could be of tremendous help when it comes to analyzing the markets. In addition to technicians, fundamental investors also take notice of the numbers of shares traded for a given security.
What is Volume?
The volume represents all the recorded trades for a security that occurs in a given time interval. It is a measurement of the participation, enthusiasm, and interest in a given security. Think of volume as the force that drives the market. Volume substantiates, energizes, and empowers price. When volume increases, it confirms price direction; when volume decreases, it contradicts price direction.
In theory, increases in volume generally precede significant price movements. However, If the price is rising in an uptrend but the volume is reducing or unchanged, it may show that there’s little interest in the security, and the price may reverse.
A high volume usually indicates more interest in the security and the presence of institutional traders. However, a rapidly rising price in an uptrend accompanied by a huge volume may be a sign of exhaustion.
Traders usually look for breaks of support and resistance to enter positions. When security break critical levels without volume, you should consider the breakout suspect and prime for a reversal off the highs/lows
Volume spikes are often the result of news-driven events. Volume spike will often lead to sharp reversals since the moves are unsustainable due to the imbalance of supply and demand
note : there’s no centralized exchange where trades are recorded, so the volume data represents what happens at a particular exchange only
In most charting platforms, the volume indicator is presented as color-coded bars, green if the security closes up and red if the security closed lower, where the height of the bars show the amount of the recorded trades
Within this study, Relative Volume , Volume Weighted Bars and Volume Moving Average are presented, where Relative Volume relates current trading volume to past trading volume over long period, Volume Weighted Bars presents price bars colored based on short period past trading volume average, and Volume Moving Average is average of volume over shot period
Relative Volume is presented as color-coded bars similar to regular Volume indicator but uses four color codes instead two. Notable increases of volume are presented in green and red while average values with back and gray, hence adding ability to emphasis notable increases in the volume. It is kind of a like a radar for how "in-play" a security is. Users are allowed to change the threshold, default value is set to Fibonacci golden ration standard deviation away from its moving average.
Volume Weighted Bars, a study of Kıvanç Özbilgiç, aims to present if price movements are supported by Volume. Volume Weighted Bars are calculated based on shot period volume moving average which will reflect more recent changes in volume. Price actions with high volume will be displayed with darker colors, average volume values will remain as they are and low volume values will be indicated with lighter colors.
Volume Moving Average, Is short period volume moving average, aims to display visually the volume changes. Please not that Relative Volume bars are calculated based on standard deviation of long volume moving average.
What Else?
Apart from the volume itself, your ability to assess what volume is telling you in conjunction with price action can be a key factor in your ability to turn a profit in the market. It makes little sense to analyze the volume alone. To correctly interpret the volume data, it shall be seen in the light of what the price is doing. there are a lot of other indicators that are based on the volume data as well as price action. Analysing those volume indicators has always helped traders and investors to better understand what is happening in the market.
Here are the ones adapted with this study. Some of them used as a source for our aim, some adapted as they are with slight changes to fit visually to this study and please note that the numerical presentation may differ from their regular use
• On Balance Volume
• Divergence Indicator
• Correlation Coefficient
• Chaikin Money Flow
Shortly;
On Balance Volume
The On Balance Volume indicator, is a technical analysis indicator that relates volume flow to changes in a security’s price. It uses a cumulative total of positive and negative trading volume to predict the direction of price. The OBV is a volume-based momentum oscillator, so it is a leading indicator — it changes direction before the price
Granville, creator of OBV, proposed the theory that changes in volume precede price movements in a measurable way. He believed that volume was the main force behind major market moves and thought of OBV’s prediction of price changes as a compressed spring that expands rapidly when released.
It is believed that the OBV shows the interactions between the institutional and retail traders in the market
If the price makes a new high, the OBV should also make a new high. If the OBV makes a lower high when the price makes a higher high, there’s a classical bearish divergence — indicating that only the retail traders are buying. Another type of bearish divergence occurs when the price remains relatively quiet and fails to make a higher high but the OBV soars higher than the previous high — indicating that the institutional traders are accumulating short positions. On the other hand, if the price makes a lower low and the OBV makes a higher low, there is a classical bullish divergence, showing that the institutional traders don’t believe in that move
With this study, Momentum and Acceleration (optional) of OBV is calculated and presented, where momentum is most commonly referred to as a rate and measures the acceleration of the price and/or volume of a security. It is also referred to as a technical analysis indicator and oscillator that is able to determine market trends.
Additionally, smoothing functionality with Least Squares Method is added
Divergences especially, should always be noted as a possible reversal in the current trend, so the divergence indicator is adapted with this study where the Momentum of OBV is assumed as Oscillator with similar usages as to RSI. Divergence is most often used to track and analyze the momentum in an asset’s price and the odds of a price reversal within the current trend. The divergence indicator warns traders and technical analysts of changes in a price/volume trend, oftentimes that it is weakening or changing direction.
Correlation Coefficient
The correlation coefficient is a statistical measure of the strength of the relationship between the relative movements of two variables. A correlation of -1.0 shows a perfect negative correlation, while a correlation of 1.0 shows a perfect positive correlation. A correlation of 0.0 shows no linear relationship between the movement of the two variables. In other words, the closer the Correlation Coefficient is to 1.0, indicates the instruments will move up and down together as it is mostly expected with volume and price. So the Correlation Coefficient Indicator aims to display when the price and volume (on balance volume) is in correlation and when not. With this study blue represent positive correlation while orange negative correlation. The strength of the correlation is determined by the width of the bands, to emphasis the effect horizontal lines are drawn with values set to 0.5 and -0.5. the values above 0.5 (or below -0.5) shows stronger correlation.
Chaikin Money Flow , provide optionally as a companion indicator
The Chaikin money flow indicator (CMF) is a volume indicator that measures the money flow volume over a chosen period. The money flow volume is a measure of the volume and where the price closed relative to the trading session’s range. It comes from the idea that buying pressure is indicated by a rising volume and recurrent closes in the upper part of the session’s price range while selling pressure is demonstrated by an increasing volume and repeated closes in the lower part of the price range.
Both buying and selling pressures are accompanied by an increase in volume, but the location of the closing prices are in accordance with the direction of price
Special thanks to @InvestCHK and @hjsjshs , who have enormously contributed while preparing this study
related studies:
Disclaimer:
Trading success is all about following your trading strategy and the indicators should fit within your trading strategy, and not to be traded upon solely
The script is for informational and educational purposes only. Use of the script does not constitute professional and/or financial advice. You alone have the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd TradingView user liable for any possible claim for damages arising from any decision you make based on use of the script
Ruckard TradingLatinoThis strategy tries to mimic TradingLatino strategy.
The current implementation is beta.
Si hablas castellano o espanyol por favor consulta MENSAJE EN CASTELLANO más abajo.
It's aimed at BTCUSDT pair and 4h timeframe.
STRATEGY DEFAULT SETTINGS EXPLANATION
max_bars_back=5000 : This is a random number of bars so that the strategy test lasts for one or two years
calc_on_order_fills=false : To wait for the 4h closing is too much. Try to check if it's worth entering a position after closing one. I finally decided not to recheck if it's worth entering after an order is closed. So it is false.
calc_on_every_tick=false
pyramiding=0 : We only want one entry allowed in the same direction. And we don't want the order to scale by error.
initial_capital=1000 : These are 1000 USDT. By using 1% maximum loss per trade and 7% as a default stop loss by using 1000 USDT at 12000 USDT per BTC price you would entry with around 142 USDT which are converted into: 0.010 BTC . The maximum number of decimal for contracts on this BTCUSDT market is 3 decimals. E.g. the minimum might be: 0.001 BTC . So, this minimal 1000 amount ensures us not to entry with less than 0.001 entries which might have happened when using 100 USDT as an initial capital.
slippage=1 : Binance BTCUSDT mintick is: 0.01. Binance slippage: 0.1 % (Let's assume). TV has an integer slippage. It does not have a percentage based slippage. If we assume a 1000 initial capital, the recommended equity is 142 which at 11996 USDT per BTC price means: 0.011 BTC. The 0.1% slippage of: 0.011 BTC would be: 0.000011 . This is way smaller than the mintick. So our slippage is going to be 1. E.g. 1 (slippage) * 0.01 (mintick)
commission_type=strategy.commission.percent and commission_value=0.1 : According to: binance . com / en / fee / schedule in VIP 0 level both maker and taker fees are: 0.1 %.
BACKGROUND
Jaime Merino is a well known Youtuber focused on crypto trading
His channel TradingLatino
features monday to friday videos where he explains his strategy.
JAIME MERINO STANCE ON BOTS
Jaime Merino stance on bots (taken from memory out of a 2020 June video from him):
'~
You know. They can program you a bot and it might work.
But, there are some special situations that the bot would not be able to handle.
And, I, as a human, I would handle it. And the bot wouldn't do it.
~'
My long term target with this strategy script is add as many
special situations as I can to the script
so that it can match Jaime Merino behaviour even in non normal circumstances.
My alternate target is learn Pine script
and enjoy programming with it.
WARNING
This script might be bigger than other TradingView scripts.
However, please, do not be confused because the current status is beta.
This script has not been tested with real money.
This is NOT an official strategy from Jaime Merino.
This is NOT an official strategy from TradingLatino . net .
HOW IT WORKS
It basically uses ADX slope and LazyBear's Squeeze Momentum Indicator
to make its buy and sell decisions.
Fast paced EMA being bigger than slow paced EMA
(on higher timeframe) advices going long.
Fast paced EMA being smaller than slow paced EMA
(on higher timeframe) advices going short.
It finally add many substrats that TradingLatino uses.
SETTINGS
__ SETTINGS - Basics
____ SETTINGS - Basics - ADX
(ADX) Smoothing {14}
(ADX) DI Length {14}
(ADX) key level {23}
____ SETTINGS - Basics - LazyBear Squeeze Momentum
(SQZMOM) BB Length {20}
(SQZMOM) BB MultFactor {2.0}
(SQZMOM) KC Length {20}
(SQZMOM) KC MultFactor {1.5}
(SQZMOM) Use TrueRange (KC) {True}
____ SETTINGS - Basics - EMAs
(EMAS) EMA10 - Length {10}
(EMAS) EMA10 - Source {close}
(EMAS) EMA55 - Length {55}
(EMAS) EMA55 - Source {close}
____ SETTINGS - Volume Profile
Lowest and highest VPoC from last three days
is used to know if an entry has a support
VPVR of last 100 4h bars
is also taken into account
(VP) Use number of bars (not VP timeframe): Uses 'Number of bars {100}' setting instead of 'Volume Profile timeframe' setting for calculating session VPoC
(VP) Show tick difference from current price {False}: BETA . Might be useful for actions some day.
(VP) Number of bars {100}: If 'Use number of bars (not VP timeframe)' is turned on this setting is used to calculate session VPoC.
(VP) Volume Profile timeframe {1 day}: If 'Use number of bars (not VP timeframe)' is turned off this setting is used to calculate session VPoC.
(VP) Row width multiplier {0.6}: Adjust how the extra Volume Profile bars are shown in the chart.
(VP) Resistances prices number of decimal digits : Round Volume Profile bars label numbers so that they don't have so many decimals.
(VP) Number of bars for bottom VPOC {18}: 18 bars equals 3 days in suggested timeframe of 4 hours. It's used to calculate lowest session VPoC from previous three days. It's also used as a top VPOC for sells.
(VP) Ignore VPOC bottom advice on long {False}: If turned on it ignores bottom VPOC (or top VPOC on sells) when evaluating if a buy entry is worth it.
(VP) Number of bars for VPVR VPOC {100}: Number of bars to calculate the VPVR VPoC. We use 100 as Jaime once used. When the price bounces back to the EMA55 it might just bounce to this VPVR VPoC if its price it's lower than the EMA55 (Sells have inverse algorithm).
____ SETTINGS - ADX Slope
ADX Slope
help us to understand if ADX
has a positive slope, negative slope
or it is rather still.
(ADXSLOPE) ADX cut {23}: If ADX value is greater than this cut (23) then ADX has strength
(ADXSLOPE) ADX minimum steepness entry {45}: ADX slope needs to be 45 degrees to be considered as a positive one.
(ADXSLOPE) ADX minimum steepness exit {45}: ADX slope needs to be -45 degrees to be considered as a negative one.
(ADXSLOPE) ADX steepness periods {3}: In order to avoid false detection the slope is calculated along 3 periods.
____ SETTINGS - Next to EMA55
(NEXTEMA55) EMA10 to EMA55 bounce back percentage {80}: EMA10 might bounce back to EMA55 or maybe to 80% of its complete way to EMA55
(NEXTEMA55) Next to EMA55 percentage {15}: How much next to the EMA55 you need to be to consider it's going to bounce back upwards again.
____ SETTINGS - Stop Loss and Take Profit
You can set a default stop loss or a default take profit.
(STOPTAKE) Stop Loss % {7.0}
(STOPTAKE) Take Profit % {2.0}
____ SETTINGS - Trailing Take Profit
You can customize the default trailing take profit values
(TRAILING) Trailing Take Profit (%) {1.0}: Trailing take profit offset in percentage
(TRAILING) Trailing Take Profit Trigger (%) {2.0}: When 2.0% of benefit is reached then activate the trailing take profit.
____ SETTINGS - MAIN TURN ON/OFF OPTIONS
(EMAS) Ignore advice based on emas {false}.
(EMAS) Ignore advice based on emas (On closing long signal) {False}: Ignore advice based on emas but only when deciding to close a buy entry.
(SQZMOM) Ignore advice based on SQZMOM {false}: Ignores advice based on SQZMOM indicator.
(ADXSLOPE) Ignore advice based on ADX positive slope {false}
(ADXSLOPE) Ignore advice based on ADX cut (23) {true}
(STOPTAKE) Take Profit? {false}: Enables simple Take Profit.
(STOPTAKE) Stop Loss? {True}: Enables simple Stop Loss.
(TRAILING) Enable Trailing Take Profit (%) {True}: Enables Trailing Take Profit.
____ SETTINGS - Strategy mode
(STRAT) Type Strategy: 'Long and Short', 'Long Only' or 'Short Only'. Default: 'Long and Short'.
____ SETTINGS - Risk Management
(RISKM) Risk Management Type: 'Safe', 'Somewhat safe compound' or 'Unsafe compound'. ' Safe ': Calculations are always done with the initial capital (1000) in mind. The maximum losses per trade/day/week/month are taken into account. ' Somewhat safe compound ': Calculations are done with initial capital (1000) or a higher capital if it increases. The maximum losses per trade/day/week/month are taken into account. ' Unsafe compound ': In each order all the current capital is gambled and only the default stop loss per order is taken into account. That means that the maximum losses per trade/day/week/month are not taken into account. Default : 'Somewhat safe compound'.
(RISKM) Maximum loss per trade % {1.0}.
(RISKM) Maximum loss per day % {6.0}.
(RISKM) Maximum loss per week % {8.0}.
(RISKM) Maximum loss per month % {10.0}.
____ SETTINGS - Decimals
(DECIMAL) Maximum number of decimal for contracts {3}: How small (3 decimals means 0.001) an entry position might be in your exchange.
EXTRA 1 - PRICE IS IN RANGE indicator
(PRANGE) Print price is in range {False}: Enable a bottom label that indicates if the price is in range or not.
(PRANGE) Price range periods {5}: How many previous periods are used to calculate the medians
(PRANGE) Price range maximum desviation (%) {0.6} ( > 0 ): Maximum positive desviation for range detection
(PRANGE) Price range minimum desviation (%) {0.6} ( > 0 ): Mininum negative desviation for range detection
EXTRA 2 - SQUEEZE MOMENTUM Desviation indicator
(SQZDIVER) Show degrees {False}: Show degrees of each Squeeze Momentum Divergence lines to the x-axis.
(SQZDIVER) Show desviation labels {False}: Whether to show or not desviation labels for the Squeeze Momentum Divergences.
(SQZDIVER) Show desviation lines {False}: Whether to show or not desviation lines for the Squeeze Momentum Divergences.
EXTRA 3 - VOLUME PROFILE indicator
WARNING: This indicator works not on current bar but on previous bar. So in the worst case it might be VP from 4 hours ago. Don't worry, inside the strategy calculus the correct values are used. It's just that I cannot show the most recent one in the chart.
(VP) Print recent profile {False}: Show Volume Profile indicator
(VP) Avoid label price overlaps {False}: Avoid label prices to overlap on the chart.
EXTRA 4 - ZIGNALY SUPPORT
(ZIG) Zignaly Alert Type {Email}: 'Email', 'Webhook'. ' Email ': Prepare alert_message variable content to be compatible with zignaly expected email content format. ' Webhook ': Prepare alert_message variable content to be compatible with zignaly expected json content format.
EXTRA 5 - DEBUG
(DEBUG) Enable debug on order comments {False}: If set to true it prepares the order message to match the alert_message variable. It makes easier to debug what would have been sent by email or webhook on each of the times an order is triggered.
HOW TO USE THIS STRATEGY
BOT MODE: This is the default setting.
PROPER VOLUME PROFILE VIEWING: Click on this strategy settings. Properties tab. Make sure Recalculate 'each time the order was run' is turned off.
NEWBIE USER: (Check PROPER VOLUME PROFILE VIEWING above!) You might want to turn on the 'Print recent profile {False}' setting. Alternatively you can use my alternate realtime study: 'Resistances and supports based on simplified Volume Profile' but, be aware, it might consume one indicator.
ADVANCED USER 1: Turn on the 'Print price is in range {False}' setting and help us to debug this subindicator. Also help us to figure out how to include this value in the strategy.
ADVANCED USER 2: Turn on the all the (SQZDIVER) settings and help us to figure out how to include this value in the strategy.
ADVANCED USER 3: (Check PROPER VOLUME PROFILE VIEWING above!) Turn on the 'Print recent profile {False}' setting and report any problem with it.
JAIME MERINO: Just use the indicator as it comes by default. It should only show BUY signals, SELL signals and their associated closing signals. From time to time you might want to check 'ADVANCED USER 2' instructions to check that there's actually a divergence. Check also 'ADVANCED USER 1' instructions for your amusement.
EXTRA ADVICE
It's advised that you use this strategy in addition to these two other indicators:
* Squeeze Momentum Indicator
* ADX
so that your chart matches as close as possible to TradingLatino chart.
ZIGNALY INTEGRATION
This strategy supports Zignaly email integration by default. It also supports Zignaly Webhook integration.
ZIGNALY INTEGRATION - Email integration example
What you would write in your alert message:
||{{strategy.order.alert_message}}||key=MYSECRETKEY||
ZIGNALY INTEGRATION - Webhook integration example
What you would write in your alert message:
{ {{strategy.order.alert_message}} , "key" : "MYSECRETKEY" }
CREDITS
I have reused and adapted some code from
'Directional Movement Index + ADX & Keylevel Support' study
which it's from TradingView console user.
I have reused and adapted some code from
'3ema' study
which it's from TradingView hunganhnguyen1193 user.
I have reused and adapted some code from
'Squeeze Momentum Indicator ' study
which it's from TradingView LazyBear user.
I have reused and adapted some code from
'Strategy Tester EMA-SMA-RSI-MACD' study
which it's from TradingView fikira user.
I have reused and adapted some code from
'Support Resistance MTF' study
which it's from TradingView LonesomeTheBlue user.
I have reused and adapted some code from
'TF Segmented Linear Regression' study
which it's from TradingView alexgrover user.
I have reused and adapted some code from
"Poor man's volume profile" study
which it's from TradingView IldarAkhmetgaleev user.
FEEDBACK
Please check the strategy source code for more detailed information
where, among others, I explain all of the substrats
and if they are implemented or not.
Q1. Did I understand wrong any of the Jaime substrats (which I have implemented)?
Q2. The strategy yields quite profit when we should long (EMA10 from 1d timeframe is higher than EMA55 from 1d timeframe.
Why the strategy yields much less profit when we should short (EMA10 from 1d timeframe is lower than EMA55 from 1d timeframe)?
Any idea if you need to do something else rather than just reverse what Jaime does when longing?
FREQUENTLY ASKED QUESTIONS
FAQ1. Why are you giving this strategy for free?
TradingLatino and his fellow enthusiasts taught me this strategy. Now I'm giving back to them.
FAQ2. Seriously! Why are you giving this strategy for free?
I'm confident his strategy might be improved a lot. By keeping it to myself I would avoid other people contributions to improve it.
Now that everyone can contribute this is a win-win.
FAQ3. How can I connect this strategy to my Exchange account?
It seems that you can attach alerts to strategies.
You might want to combine it with a paying account which enable Webhook URLs to work.
I don't know how all of this works right now so I cannot give you advice on it.
You will have to do your own research on this subject. But, be careful. Automating trades, if not done properly,
might end on you automating losses.
FAQ4. I have just found that this strategy by default gives more than 3.97% of 'maximum series of losses'. That's unacceptable according to my risk management policy.
You might want to reduce default stop loss setting from 7% to something like 5% till you are ok with the 'maximum series of losses'.
FAQ5. Where can I learn more about your work on this strategy?
Check the source code. You might find unused strategies. Either because there's not a substantial increases on earnings. Or maybe because they have not been implemented yet.
FAQ6. How much leverage is applied in this strategy?
No leverage.
FAQ7. Any difference with original Jaime Merino strategy?
Most of the times Jaime defines an stop loss at the price entry. That's not the case here. The default stop loss is 7% (but, don't be confused it only means losing 1% of your investment thanks to risk management). There's also a trailing take profit that triggers at 2% profit with a 1% trailing.
FAQ8. Why this strategy return is so small?
The strategy should be improved a lot. And, well, backtesting in this platform is not guaranteed to return theoric results comparable to real-life returns. That's why I'm personally forward testing this strategy to verify it.
MENSAJE EN CASTELLANO
En primer lugar se agradece feedback para mejorar la estrategia.
Si eres un usuario avanzado y quieres colaborar en mejorar el script no dudes en comentar abajo.
Ten en cuenta que aunque toda esta descripción tenga que estar en inglés no es obligatorio que el comentario esté en inglés.
CHISTE - CASTELLANO
¡Pero Jaime!
¡400.000!
¡Tu da mun!
RSI (w/ Curve and Volatility)This is a centered triple oscillator which measures RSI, RVI (volatility), and Coppock Curve (trend). This is centered so it ranges from negative 50 to positive 50. This indicator is used most accurately when all 3 indicators show above/below 0.
RSI is the bright pink line. RSI determines strength in a direction. When it is above 20 or below -20, a pullback is likely - this could be a prime time to scale out of position. Remember do not enter a trade just because it is oversold, as the strength is still greatly against you.
RVI is the thin lighter line. RVI was created by Donald Dorsey to use in conjunction with other indicators. The instructions for using RVI is to sell/short when below -10 and buy/cover when above 10. Use this indicator to confirm your bias.
The purple area is the Coppock curve . This curve is used to analyze longer term trends in a chart. RSI and RVI struggle to indicate long term trends, use the Coppock curve to confirm your bias. The curve is bullish when above 0 and bearish when below 0. Be cautious when trying to buy or sell it early when its falling. If it is falling and pops back up without reaching 0, it is typically indicate of a big price movement in that direction.
Higher Highs & Lower Lows Stochastics - Vitali ApirineThis is my modified "Higher Highs & Lower Lows Stochastics" employing PSv4.0, originally formulated by Vitali Apirine for TASC - February 2016 Traders Tips. Reading through a TASC magazine of mine, behold, I found a little known indicator that I can't find anywhere on all of Tradingview. That was a tragedy I felt I had to resolve... This indicator is best described as a dual momentum indicator, being helpful with anticipating reversals, spotting emerging trends, and defining correction periods. I felt it worthy of justice to unveil this for all TV members to utilize and also learn from. It's uniqueness is beyond past due for the honor it deserves on Tradingview.
As always, I have included advanced Pine programming techniques that conform to proper "Pine Etiquette". For those of you who are newcomers to Pine Script, this code release may also help you comprehend the "Power of Pine" by employing advanced programming techniques while exhibiting code utilization in a most effective manner. This script's uniqueness displays that we can now override built-in Pine functions. Firstly, you may have noticed that I replaced ema(), sma(), highest(), and lowest(). If you weren't aware of this Pine capability, well, here is a prime example... Now you know! Just heed caution when doing so to ensure your replacement algorithms are 100% sound. Lastly, I also added an additional "Median" line where the companion stochastics seemingly appear to gravitate within a central zone.
NOTICE: You may have observed, there is highest(), lowest(), ema(), and sma() custom functions overwriting Pine built-ins, some of which are audaciously used in ternary. "IF" you are planning to use Pine Script v4.0 functions in ternary, be forewarned, they WILL NOT operate as expected in most scenarios. The reason why I legitimately used them here in ternary is because they are ONLY manually controlled by an input(). If these were dynamically controlled with bar-to-bar dynamic conditional logic, you would most certainly run into serious unexpected programming issues, potentially resulting in hours of frustrations and guaranteed loss of hair. That's my lesson for this release, so never ever forget this when utilizing the full potential of the "Power of Pine". For more information concerning these potential dilemmas, please consult "Execution of Pine functions and historical context inside function blocks" in the "Pine Script v4 User Manual".
Features List Includes:
Dark Background - Easily disabled in indicator Settings->Style for "Light" charts or with Pine commenting
AND much, much more... You have the source!
The comments section below is solely just for commenting and other remarks, ideas, compliments, etc... regarding only this indicator, not others. When available time provides itself, I will consider your inquiries, thoughts, and concepts presented below in the comments section, should you have any questions or comments regarding this indicator. When my indicators achieve more prevalent use by TV members, I may implement more ideas when they present themselves as worthy additions. As always, "Like" it if you simply just like it with a proper thumbs up, and also return to my scripts list occasionally for additional postings. Have a profitable future everyone!
Yield Curve Inversion MonitorIdentifies when the US Treasury Yield Curve inverts (2 and 10 year bond rates).
When they ‘invert’ long-term bonds have a lower interest rate than short-term bonds. In other words, the bond market is pricing in a significant drop in future interest rates (which might be caused by the US Fed fighting off a recession in the future).
In the last 50 years, every time the US treasury yield curve inverted a recession followed within 3 years. On average the S&P500 gained 19.1% following the inversion and peaked 13 months later. In other words, as far as investors are concerned, the recession began roughly one year later.
However, once the market peaks, it then drops 37.6% on average, wiping out all those gains and more.
...Looks like 2020 is shaping up to be another prime example.
3 Medias MóvilesEste es mi primer proyecto de programar un script en pie de 3 medias móviles con un tamaño fijo de 8,21,200
Mega Trend Plus - S&P 500 Trend Follower / Market GaugeFirstly, 100% of the credit goes to Greg Morris @ Stockcharts.com for the article detailing the concept and most of the settings/components. I've simply implemented his idea. I haven't sought permission from him, but given that he was open with the components of the indicator I'm assuming he's happy for me to go ahead and code this in pinescript. See the article here: stockcharts.com
Okay, so this is part of a system/indicator Greg outlined in the article that he calls Trend Gauge. The idea is fairly simple: take a group of indexes that cover the breadth of the market you want to trade, track their relationship/position to their 200 period Exponential Moving Average (EMA), and assign scores to bull/bear crosses + relative location to the EMA. Once you've normalized and aggregated the scores you finish up with a trend following indicator that works surprisingly well.
This part is called Mega Trend Plus, and tracks whether an index is above or below its 200 period EMA. I'll be releasing the second part ("Trend Strength") soon. Once that's done I'll combine them to form the full "Trend Gauge" indicator.
I decided to provide the base version that people can then experiment with and tweak to their liking, so Greg's version shown in the article is smoother than the one provided here. It's up to you to play with smoothing options, and potentially tweak the weightings of the various components. Please see the script for info on what the various inputs are - I've added notes there.
So, how does it do? Well, as you can see from the chart above it works pretty well overall. The S&P 500 has been fairly trendy over the last few decades, so it's been prime territory for a system like this. It would have kept you out of the big bear markets (particularly GFC & 2015-16), and that's the goal of any trend-based system. They thrive on how little they lose, not necessarily on how much they make.
As you can see, the indicator is pretty choppy. So it's not designed (in the current configuration) to provide accurate buy/hold/sell signals. It currently functions more as a market gauge / strength indicator.
Hopefully you find this concept interesting. It's simple, but the best systems often are.
Please add comments below if you come up with an interesting configuration or variation.
Let me know if you have any queries.
DD
20 Day Fade20 Day Fade from MarketGeeks, I like the idea!.
This indicator only looks at daily bars, regardless of what timeframe you are using.
We look for a new 20 day low that closes within the 25th percentile of it's daily range.
We also want our security to be in an uptrend.
Finally we are looking for the next day closing price (or current price) to be atleast 2% above the previous days (20 day low) high.
Once all these conditions are satisfied it produces the text bubble letting you know that it is prime to buy.
The next version I will update with short options as well.
One day I may convert this into a strategy, but probably not. If you want to, please feel free to. All I ask is that you give credit for the base code, as I have done for the idea behind this indicator.
