Multi-Timeframe Stochastic Alert [tradeviZion]# Multi-Timeframe Stochastic Alert : Complete User Guide
## 1. Introduction
### What is the Multi-Timeframe Stochastic Alert?
The Multi-Timeframe Stochastic Alert is an advanced technical analysis tool that helps traders identify potential trading opportunities by analyzing momentum across multiple timeframes. It combines the power of the stochastic oscillator with multi-timeframe analysis to provide more reliable trading signals.
### Key Features and Benefits
- Simultaneous analysis of 6 different timeframes
- Advanced alert system with customizable conditions
- Real-time visual feedback with color-coded signals
- Comprehensive data table with instant market insights
- Motivational trading messages for psychological support
- Flexible theme support for comfortable viewing
### How it Can Help Your Trading
- Identify stronger trends by confirming momentum across multiple timeframes
- Reduce false signals through multi-timeframe confirmation
- Stay informed of market changes with customizable alerts
- Make more informed decisions with comprehensive market data
- Maintain trading discipline with clear visual signals
## 2. Understanding the Display
### The Stochastic Chart
The main chart displays three key components:
1. ** K-Line (Fast) **: The primary stochastic line (default color: green)
2. ** D-Line (Slow) **: The signal line (default color: red)
3. ** Reference Lines **:
- Overbought Level (80): Upper dashed line
- Middle Line (50): Center dashed line
- Oversold Level (20): Lower dashed line
### The Information Table
The table provides a comprehensive view of stochastic readings across all timeframes. Here's what each column means:
#### Column Explanations:
1. ** Timeframe **
- Shows the time period for each row
- Example: "5" = 5 minutes, "15" = 15 minutes, etc.
2. ** K Value **
- The fast stochastic line value (0-100)
- Higher values indicate stronger upward momentum
- Lower values indicate stronger downward momentum
3. ** D Value **
- The slow stochastic line value (0-100)
- Helps confirm momentum direction
- Crossovers with K-line can signal potential trades
4. ** Status **
- Shows current momentum with symbols:
- ▲ = Increasing (bullish)
- ▼ = Decreasing (bearish)
- Color matches the trend direction
5. ** Trend **
- Shows the current market condition:
- "Overbought" (above 80)
- "Bullish" (above 50)
- "Bearish" (below 50)
- "Oversold" (below 20)
#### Row Explanations:
1. ** Title Row **
- Shows "🎯 Multi-Timeframe Stochastic"
- Indicates the indicator is active
2. ** Header Row **
- Contains column titles
- Dark blue background for easy reading
3. ** Timeframe Rows **
- Six rows showing different timeframe analyses
- Each row updates independently
- Color-coded for easy trend identification
4. **Message Row**
- Shows rotating motivational messages
- Updates every 5 bars
- Helps maintain trading discipline
### Visual Indicators and Colors
- ** Green Background **: Indicates bullish conditions
- ** Red Background **: Indicates bearish conditions
- ** Color Intensity **: Shows strength of the signal
- ** Background Highlights **: Appear when alert conditions are met
## 3. Core Settings Groups
### Stochastic Settings
These settings control the core calculation of the stochastic oscillator.
1. ** Length (Default: 14) **
- What it does: Determines the lookback period for calculations
- Higher values (e.g., 21): More stable, fewer signals
- Lower values (e.g., 8): More sensitive, more signals
- Recommended:
* Day Trading: 8-14
* Swing Trading: 14-21
* Position Trading: 21-30
2. ** Smooth K (Default: 3) **
- What it does: Smooths the main stochastic line
- Higher values: Smoother line, fewer false signals
- Lower values: More responsive, but more noise
- Recommended:
* Day Trading: 2-3
* Swing Trading: 3-5
* Position Trading: 5-7
3. ** Smooth D (Default: 3) **
- What it does: Smooths the signal line
- Works in conjunction with Smooth K
- Usually kept equal to or slightly higher than Smooth K
- Recommended: Keep same as Smooth K for consistency
4. ** Source (Default: Close) **
- What it does: Determines price data for calculations
- Options: Close, Open, High, Low, HL2, HLC3, OHLC4
- Recommended: Stick with Close for most reliable signals
### Timeframe Settings
Controls the multiple timeframes analyzed by the indicator.
1. ** Main Timeframes (TF1-TF6) **
- TF1 (Default: 10): Shortest timeframe for quick signals
- TF2 (Default: 15): Short-term trend confirmation
- TF3 (Default: 30): Medium-term trend analysis
- TF4 (Default: 30): Additional medium-term confirmation
- TF5 (Default: 60): Longer-term trend analysis
- TF6 (Default: 240): Major trend confirmation
Recommended Combinations:
* Scalping: 1, 3, 5, 15, 30, 60
* Day Trading: 5, 15, 30, 60, 240, D
* Swing Trading: 15, 60, 240, D, W, M
2. ** Wait for Bar Close (Default: true) **
- What it does: Controls when calculations update
- True: More reliable but slightly delayed signals
- False: Faster signals but may change before bar closes
- Recommended: Keep True for more reliable signals
### Alert Settings
#### Main Alert Settings
1. ** Enable Alerts (Default: true) **
- Master switch for all alert notifications
- Toggle this off when you don't want any alerts
- Useful during testing or when you want to focus on visual signals only
2. ** Alert Condition (Options) **
- "Above Middle": Bullish momentum alerts only
- "Below Middle": Bearish momentum alerts only
- "Both": Alerts for both directions
- Recommended:
* Trending Markets: Choose direction matching the trend
* Ranging Markets: Use "Both" to catch reversals
* New Traders: Start with "Both" until you develop a specific strategy
3. ** Alert Frequency **
- "Once Per Bar": Immediate alerts during the bar
- "Once Per Bar Close": Alerts only after bar closes
- Recommended:
* Day Trading: "Once Per Bar" for quick reactions
* Swing Trading: "Once Per Bar Close" for confirmed signals
* Beginners: "Once Per Bar Close" to reduce false signals
#### Timeframe Check Settings
1. ** First Check (TF1) **
- Purpose: Confirms basic trend direction
- Alert Triggers When:
* For Bullish: Stochastic is above middle line (50)
* For Bearish: Stochastic is below middle line (50)
* For Both: Triggers in either direction based on position relative to middle line
- Settings:
* Enable/Disable: Turn first check on/off
* Timeframe: Default 5 minutes
- Best Used For:
* Quick trend confirmation
* Entry timing
* Scalping setups
2. ** Second Check (TF2) **
- Purpose: Confirms both position and momentum
- Alert Triggers When:
* For Bullish: Stochastic is above middle line AND both K&D lines are increasing
* For Bearish: Stochastic is below middle line AND both K&D lines are decreasing
* For Both: Triggers based on position and direction matching current condition
- Settings:
* Enable/Disable: Turn second check on/off
* Timeframe: Default 15 minutes
- Best Used For:
* Trend strength confirmation
* Avoiding false breakouts
* Day trading setups
3. ** Third Check (TF3) **
- Purpose: Confirms overall momentum direction
- Alert Triggers When:
* For Bullish: Both K&D lines are increasing (momentum confirmation)
* For Bearish: Both K&D lines are decreasing (momentum confirmation)
* For Both: Triggers based on matching momentum direction
- Settings:
* Enable/Disable: Turn third check on/off
* Timeframe: Default 30 minutes
- Best Used For:
* Major trend confirmation
* Swing trading setups
* Avoiding trades against the main trend
Note: All three conditions must be met simultaneously for the alert to trigger. This multi-timeframe confirmation helps reduce false signals and provides stronger trade setups.
#### Alert Combinations Examples
1. ** Conservative Setup **
- Enable all three checks
- Use "Once Per Bar Close"
- Timeframe Selection Example:
* First Check: 15 minutes
* Second Check: 1 hour (60 minutes)
* Third Check: 4 hours (240 minutes)
- Wider gaps between timeframes reduce noise and false signals
- Best for: Swing trading, beginners
2. ** Aggressive Setup **
- Enable first two checks only
- Use "Once Per Bar"
- Timeframe Selection Example:
* First Check: 5 minutes
* Second Check: 15 minutes
- Closer timeframes for quicker signals
- Best for: Day trading, experienced traders
3. ** Balanced Setup **
- Enable all checks
- Use "Once Per Bar"
- Timeframe Selection Example:
* First Check: 5 minutes
* Second Check: 15 minutes
* Third Check: 1 hour (60 minutes)
- Balanced spacing between timeframes
- Best for: All-around trading
### Visual Settings
#### Alert Visual Settings
1. ** Show Background Color (Default: true) **
- What it does: Highlights chart background when alerts trigger
- Benefits:
* Makes signals more visible
* Helps spot opportunities quickly
* Provides visual confirmation of alerts
- When to disable:
* If using multiple indicators
* When preferring a cleaner chart
* During manual backtesting
2. ** Background Transparency (Default: 90) **
- Range: 0 (solid) to 100 (invisible)
- Recommended Settings:
* Clean Charts: 90-95
* Multiple Indicators: 85-90
* Single Indicator: 80-85
- Tip: Adjust based on your chart's overall visibility
3. ** Background Colors **
- Bullish Background:
* Default: Green
* Indicates upward momentum
* Customizable to match your theme
- Bearish Background:
* Default: Red
* Indicates downward momentum
* Customizable to match your theme
#### Level Settings
1. ** Oversold Level (Default: 20) **
- Traditional Setting: 20
- Adjustable Range: 0-100
- Usage:
* Lower values (e.g., 10): More conservative
* Higher values (e.g., 30): More aggressive
- Trading Applications:
* Potential bullish reversal zone
* Support level in uptrends
* Entry point for long positions
2. ** Overbought Level (Default: 80) **
- Traditional Setting: 80
- Adjustable Range: 0-100
- Usage:
* Lower values (e.g., 70): More aggressive
* Higher values (e.g., 90): More conservative
- Trading Applications:
* Potential bearish reversal zone
* Resistance level in downtrends
* Exit point for long positions
3. ** Middle Line (Default: 50) **
- Purpose: Trend direction separator
- Applications:
* Above 50: Bullish territory
* Below 50: Bearish territory
* Crossing 50: Potential trend change
- Trading Uses:
* Trend confirmation
* Entry/exit trigger
* Risk management level
#### Color Settings
1. ** Bullish Color (Default: Green) **
- Used for:
* K-Line (Main stochastic line)
* Status symbols when trending up
* Trend labels for bullish conditions
- Customization:
* Choose colors that stand out
* Match your trading platform theme
* Consider color blindness accessibility
2. ** Bearish Color (Default: Red) **
- Used for:
* D-Line (Signal line)
* Status symbols when trending down
* Trend labels for bearish conditions
- Customization:
* Choose contrasting colors
* Ensure visibility on your chart
* Consider monitor settings
3. ** Neutral Color (Default: Gray) **
- Used for:
* Middle line (50 level)
- Customization:
* Should be less prominent
* Easy on the eyes
* Good background contrast
### Theme Settings
1. **Color Theme Options**
- Dark Theme (Default):
* Dark background with white text
* Optimized for dark chart backgrounds
* Reduces eye strain in low light
- Light Theme:
* Light background with black text
* Better visibility in bright conditions
- Custom Theme:
* Use your own color preferences
2. ** Available Theme Colors **
- Table Background
- Table Text
- Table Headers
Note: The theme affects only the table display colors. The stochastic lines and alert backgrounds use their own color settings.
### Table Settings
#### Position and Size
1. ** Table Position **
- Options:
* Top Right (Default)
* Middle Right
* Bottom Right
* Top Left
* Middle Left
* Bottom Left
- Considerations:
* Chart space utilization
* Personal preference
* Multiple monitor setups
2. ** Text Sizes **
- Title Size Options:
* Tiny: Minimal space usage
* Small: Compact but readable
* Normal (Default): Standard visibility
* Large: Enhanced readability
* Huge: Maximum visibility
- Data Size Options:
* Recommended: One size smaller than title
* Adjust based on screen resolution
* Consider viewing distance
3. ** Empowering Messages **
- Purpose:
* Maintain trading discipline
* Provide psychological support
* Remind of best practices
- Rotation:
* Changes every 5 bars
* Categories include:
- Market Wisdom
- Strategy & Discipline
- Mindset & Growth
- Technical Mastery
- Market Philosophy
## 4. Setting Up for Different Trading Styles
### Day Trading Setup
1. **Timeframes**
- Primary: 5, 15, 30 minutes
- Secondary: 1H, 4H
- Alert Settings: "Once Per Bar"
2. ** Stochastic Settings **
- Length: 8-14
- Smooth K/D: 2-3
- Alert Condition: Match market trend
3. ** Visual Settings **
- Background: Enabled
- Transparency: 85-90
- Theme: Based on trading hours
### Swing Trading Setup
1. ** Timeframes **
- Primary: 1H, 4H, Daily
- Secondary: Weekly
- Alert Settings: "Once Per Bar Close"
2. ** Stochastic Settings **
- Length: 14-21
- Smooth K/D: 3-5
- Alert Condition: "Both"
3. ** Visual Settings **
- Background: Optional
- Transparency: 90-95
- Theme: Personal preference
### Position Trading Setup
1. ** Timeframes **
- Primary: Daily, Weekly
- Secondary: Monthly
- Alert Settings: "Once Per Bar Close"
2. ** Stochastic Settings **
- Length: 21-30
- Smooth K/D: 5-7
- Alert Condition: "Both"
3. ** Visual Settings **
- Background: Disabled
- Focus on table data
- Theme: High contrast
## 5. Troubleshooting Guide
### Common Issues and Solutions
1. ** Too Many Alerts **
- Cause: Settings too sensitive
- Solutions:
* Increase timeframe intervals
* Use "Once Per Bar Close"
* Enable fewer timeframe checks
* Adjust stochastic length higher
2. ** Missed Signals **
- Cause: Settings too conservative
- Solutions:
* Decrease timeframe intervals
* Use "Once Per Bar"
* Enable more timeframe checks
* Adjust stochastic length lower
3. ** False Signals **
- Cause: Insufficient confirmation
- Solutions:
* Enable all three timeframe checks
* Use larger timeframe gaps
* Wait for bar close
* Confirm with price action
4. ** Visual Clarity Issues **
- Cause: Poor contrast or overlap
- Solutions:
* Adjust transparency
* Change theme settings
* Reposition table
* Modify color scheme
### Best Practices
1. ** Getting Started **
- Start with default settings
- Use "Both" alert condition
- Enable all timeframe checks
- Wait for bar close
- Monitor for a few days
2. ** Fine-Tuning **
- Adjust one setting at a time
- Document changes and results
- Test in different market conditions
- Find your optimal timeframe combination
- Balance sensitivity with reliability
3. ** Risk Management **
- Don't trade against major trends
- Confirm signals with price action
- Use appropriate position sizing
- Set clear stop losses
- Follow your trading plan
4. ** Regular Maintenance **
- Review settings weekly
- Adjust for market conditions
- Update color scheme for visibility
- Clean up chart regularly
- Maintain trading journal
## 6. Tips for Success
1. ** Entry Strategies **
- Wait for all timeframes to align
- Confirm with price action
- Use proper position sizing
- Consider market conditions
2. ** Exit Strategies **
- Trail stops using indicator levels
- Take partial profits at targets
- Honor your stop losses
- Don't fight the trend
3. ** Psychology **
- Stay disciplined with settings
- Don't override system signals
- Keep emotions in check
- Learn from each trade
4. ** Continuous Improvement **
- Record your trades
- Review performance regularly
- Adjust settings gradually
- Stay educated on markets
In den Scripts nach "bear" suchen
EMA Ribbon + ADX MomentumHere's a description for your TradingView indicator publication:
The EMA Ribbon + ADX Momentum indicator combines exponential moving averages (EMA) with the Average Directional Index (ADX) to identify strong trends and potential trading opportunities. This powerful tool offers:
🎯 Key Features:
EMA Ribbon (10, 21, 34, 55) for trend direction
ADX integration for trend strength confirmation
Clear visual signals with color-coded backgrounds
Real-time trend status display
Strength metrics with exact percentage values
📊 How It Works:
EMA Ribbon: Four EMAs form a ribbon pattern that shows trend direction through their stacking order
ADX Integration: Confirms trend strength when above the threshold (default 25)
Visual Signals:
Green background: Strong bullish trend
Red background: Strong bearish trend
Gray background: Neutral or weak trend
📈 Trading Signals:
STRONG BULL: EMAs properly stacked bullish + high ADX + DI+ > DI-
STRONG BEAR: EMAs properly stacked bearish + high ADX + DI- > DI+
BULL/BEAR TREND: Shows regular trend conditions without strength confirmation
NEUTRAL: No clear trend structure
🔧 Customizable Parameters:
ADX Length: Adjust trend calculation period
ADX Threshold: Modify strength confirmation level
ADX Panel Toggle: Show/hide the ADX indicator panel
💡 Best Uses:
Trend following strategies
Entry/exit timing
Trade confirmation
Market structure analysis
Risk management tool
This indicator helps traders identify not just trend direction, but also trend strength, making it particularly useful for both position entry timing and risk management. The clear visual signals and real-time metrics make it suitable for traders of all experience levels.
Note: As with all technical indicators, best results are achieved when used in conjunction with other forms of analysis and proper risk management.
PERFECT PIVOT RANGE DR ABIRAM SIVPRASAD (PPR)PERFECT PIVOT RANGE (PPR) by Dr. Abhiram Sivprasad
The Perfect Pivot Range (PPR) indicator is designed to provide traders with a comprehensive view of key support and resistance levels based on pivot points across different timeframes. This versatile tool allows users to visualize daily, weekly, and monthly pivots along with high and low levels from previous periods, helping traders identify potential areas of price reversals or breakouts.
Features:
Multi-Timeframe Pivots:
Daily, weekly, and monthly pivot levels (Pivot Point, Support 1 & 2, Resistance 1 & 2).
Helps traders understand price levels across various timeframes, from short-term (daily) to long-term (monthly).
Previous High-Low Levels:
Displays the previous week, month, and day high-low levels to highlight key zones of historical support and resistance.
Traders can easily see areas of price action from prior periods, giving context for future price movements.
Customizable Options:
Users can choose which pivot levels and high-lows to display, allowing for flexibility based on trading preferences.
Visual settings can be toggled on and off to suit different trading strategies and timeframes.
Real-Time Data:
All pivot points and levels are dynamically calculated based on real-time price data, ensuring accurate and up-to-date information for decision-making.
How to Use:
Pivot Points: Use daily, weekly, or monthly pivot points to find potential support or resistance levels. Prices above the pivot suggest bullish sentiment, while prices below indicate bearishness.
Previous High-Low: The high-low levels from previous days, weeks, or months can serve as critical zones where price may reverse or break through, indicating potential trade entries or exits.
Confluence: When pivot points or high-low levels overlap across multiple timeframes, they become even stronger levels of support or resistance.
This indicator is suitable for all types of traders (scalpers, swing traders, and long-term investors) looking to enhance their technical analysis and make more informed trading decisions.
Here are three detailed trading strategies for using the Perfect Pivot Range (PPR) indicator for options, stocks, and commodities:
1. Options Buying Strategy with PPR Indicator
Strategy: Buying Call and Put Options Based on Pivot Breakouts
Objective: To capitalize on sharp price movements when key pivot levels are breached, leading to high returns with limited risk in options trading.
Timeframe: 15-minute to 1-hour chart for intraday option trading.
Steps:
Identify the Key Levels:
Use weekly pivots for intraday trading, as they provide more significant levels for options.
Enable the "Previous Week High-Low" to gauge support and resistance from the previous week.
Call Option Setup (Bullish Breakout):
Condition: If the price breaks above the weekly pivot point (PP) with high momentum (indicated by a strong bullish candle), it signifies potential bullishness.
Action: Buy Call Options at the breakout of the weekly pivot.
Confirmation: Check if the price is sustaining above the pivot with a minimum of 1-2 candles (depending on timeframe) and the first resistance (R1) isn’t too far away.
Target: The first resistance (R1) or previous week’s high can be your target for exiting the trade.
Stop-Loss: Set a stop-loss just below the pivot point (PP) to limit risk.
Put Option Setup (Bearish Breakdown):
Condition: If the price breaks below the weekly pivot (PP) with strong bearish momentum, it’s a signal to expect a downward move.
Action: Buy Put Options on a breakdown below the weekly pivot.
Confirmation: Ensure that the price is closing below the pivot, and check for declining volumes or bearish candles.
Target: The first support (S1) or the previous week’s low.
Stop-Loss: Place the stop-loss just above the pivot point (PP).
Example:
Let’s say the weekly pivot point (PP) is at 1500, the price breaks above and sustains at 1510. You buy a Call Option with a strike price near 1500, and the target will be the first resistance (R1) at 1530.
2. Stock Trading Strategy with PPR Indicator
Strategy: Swing Trading Using Pivot Points and Previous High-Low Levels
Objective: To capture mid-term stock price movements using pivot points and historical high-low levels for better trade entries and exits.
Timeframe: 1-day or 4-hour chart for swing trading.
Steps:
Identify the Trend:
Start by determining the overall trend of the stock using the weekly pivots. If the price is consistently above the pivot point (PP), the trend is bullish; if below, the trend is bearish.
Buy Setup (Bullish Trend Reversal):
Condition: When the stock bounces off the weekly pivot point (PP) or previous week’s low, it signals a bullish reversal.
Action: Enter a long position near the pivot or previous week’s low.
Confirmation: Look for a bullish candle pattern or increasing volumes.
Target: Set your first target at the first resistance (R1) or the previous week’s high.
Stop-Loss: Place your stop-loss just below the previous week’s low or support (S1).
Sell Setup (Bearish Trend Reversal):
Condition: When the price hits the weekly resistance (R1) or previous week’s high and starts to reverse downwards, it’s an opportunity to short-sell the stock.
Action: Enter a short position near the resistance.
Confirmation: Watch for bearish candle patterns or decreasing volume at the resistance.
Target: Your first target would be the weekly pivot point (PP), with the second target as the previous week’s low.
Stop-Loss: Set a stop-loss just above the resistance (R1).
Use Previous High-Low Levels:
The previous week’s high and low are key levels where price reversals often occur, so use them as reference points for potential entry and exit.
Example:
Stock XYZ is trading at 200. The previous week’s low is 195, and it bounces off that level. You enter a long position with a target of 210 (previous week’s high) and place a stop-loss at 193.
3. Commodity Trading Strategy with PPR Indicator
Strategy: Trend Continuation and Reversal in Commodities
Objective: To capitalize on the strong trends in commodities by using pivot points as key support and resistance levels for trend continuation and reversal.
Timeframe: 1-hour to 4-hour charts for commodities like Gold, Crude Oil, Silver, etc.
Steps:
Identify the Trend:
Use monthly pivots for long-term commodities trading since commodities often follow macroeconomic trends.
The monthly pivot point (PP) will give an idea of the long-term trend direction.
Trend Continuation Setup (Bullish Commodity):
Condition: If the price is consistently trading above the monthly pivot and pulling back towards the pivot without breaking below it, it indicates a bullish continuation.
Action: Enter a long position when the price tests the monthly pivot (PP) and starts moving up again.
Confirmation: Look for a strong bullish candle or an increase in volume to confirm the continuation.
Target: The first resistance (R1) or previous month’s high.
Stop-Loss: Place the stop-loss below the monthly pivot (PP).
Trend Reversal Setup (Bearish Commodity):
Condition: When the price reverses from the monthly resistance (R1) or previous month’s high, it’s a signal for a bearish reversal.
Action: Enter a short position at the resistance level.
Confirmation: Watch for bearish candle patterns or decreasing volumes at the resistance.
Target: Set your first target as the monthly pivot (PP) or the first support (S1).
Stop-Loss: Stop-loss should be placed just above the resistance level.
Using Previous High-Low for Swing Trades:
The previous month’s high and low are important in commodities. They often act as barriers to price movement, so traders should look for breakouts or reversals near these levels.
Example:
Gold is trading at $1800, with a monthly pivot at $1780 and the previous month’s high at $1830. If the price pulls back to $1780 and starts moving up again, you enter a long trade with a target of $1830, placing your stop-loss below $1770.
Key Points Across All Strategies:
Multiple Timeframes: Always use a combination of timeframes for confirmation. For example, a daily chart may show a bullish setup, but the weekly pivot levels can provide a larger trend context.
Volume: Volume is key in confirming the strength of price movement. Always confirm breakouts or reversals with rising or declining volume.
Risk Management: Set tight stop-loss levels just below support or above resistance to minimize risk and lock in profits at pivot points.
Each of these strategies leverages the powerful pivot and high-low levels provided by the PPR indicator to give traders clear entry, exit, and risk management points across different markets
Advanced Stochastic ForLoopAdvanced Stochastic ForLoop
OVERVIEW
Advanced Stochastic ForLoop is an improved version of Stochastic it is designed to calculate an array of values 1 or -1 depending if soruce for calculations is above or below basis.
It takes avereage of values over a range of lengths, providing trend signals smothed based on various moving averages in order to get rid of noise.
It offers flexibility with different signal modes and visual customizations.
TYPE OF SIGNALS
-FAST (MA > MA or MA > 0.99)
-SLOW (MA > 0)
-THRESHOLD CROSSING (set by user treshold for both directions)
-FAST THRESHOLD (when theres an change in signal by set margin e.g 0.4 -> 0.2 means bearsih when FT is set to 0.1, when MA is > 0.99 it will signal bullish, when MA < -0.99 it will signal bearish)
Generaly Lime color of line indicates Bullish, Fuchsia indicates Bearish.
This colors are not set in stone so you can change them in settings.
Alerts included when line color is:
-Bullish Trend, line color is lime
-Bearish Trend, line color is fuchsia
Credit
Idea for this script was from one of indicators created by www.tradingview.com
Warning
This indicator can be really noisy depending on the settings, signal mode so it should be used preferably as a part of an strategy not as a stand alone indicator
Remember the lower the timeframe you use the more noise there is.
No single indicator should be used alone when making investment decisions.
Bollinger Bands ForLoopBollinger Bands ForLoop
OVERVIEW
BB ForLoop is an improved version of Bollinger Bands it is designed to calculate an array of values 1 or -1 depending if soruce for calculations is above or below basis.
It takes avereage of values over a range of lengths, providing trend signals smothed based on various moving averages in order to get rid of noise.
It offers flexibility with different signal modes and visual customizations.
TYPE OF SIGNALS
-FAST (MA > MA or MA > 0.99)
-SLOW (MA > 0)
-THRESHOLD CROSSING (when cross above/below treshold set independently for both directions)
-FAST THRESHOLD (when there's change in signal by set margin e.g (0.4 -> 0.2) means bearsih when FT is set to 0.1, when MA is > 0.99 it will signal bullish, when MA < -0.99 it will signal bearish)
Generaly Lime color of line indicates Bullish, Fuchsia indicates Bearish.
This colors are not set in stone so you can change them in settings.
-Bullish Trend, line color is lime
-Bearish Trend, line color is fuchsia
Credit
Idea for this script was from one of indicators created by www.tradingview.com
Warning
Be careful when using this indicator especialy combining DEMA with FT (Fast Treshold).
This indicator can be really noisy depending on the settings, signal mode so it should be used preferably as a part of an strategy not as a stand alone indicator
Remember the lower the timeframe you use the more noise there is.
No single indicator should be used alone when making investment decisions.
SMCL - Trend Change StructuresSMCL Indicator - Detailed Functionality
The SMCL (Structure Market Change Levels) indicator is designed to help traders visually detect and analyze changes in market structure. It focuses on identifying key pivot points and possible trend reversals by marking Change of Character (CHoCH) signals and calculating important levels like Premium and Discount zones.
Key Features:
Bullish and Bearish Structure Detection: Marks key trend changes on the chart using price pivots, with options to display only bullish or bearish structures.
Premium and Discount Zones Visualization: Identifies areas where the price may be in an overbought (Premium) or oversold (Discount) zone.
Win Rate Calculation: Calculates and displays the win rate on the chart to help you assess the indicator's effectiveness in real-time.
Full Customization: Adjust the colors of the structures and Premium/Discount zones to match your analysis style.
How to Use:
Bullish Structures: Look for CHoCH labels above recent highs indicating a potential shift to an uptrend.
Bearish Structures: Watch for CHoCH labels below recent lows indicating a potential shift to a downtrend.
Premium/Discount Levels: Use these zones to identify potential overbought or oversold conditions, ideal for planning entries or exits.
Win Rate: Monitor the win rate to gauge the reliability of the indicator over time.
This indicator is ideal for both intraday traders and swing traders looking for a simple yet powerful tool to identify market trend changes. Try it out and improve your trading decisions!
Technical Details:
1. Inputs:
Structure Period (prd): Defines the lookback period for detecting significant highs and lows (pivots). A higher period will consider a broader price range, identifying more prominent structures.
Response Period (resp): Determines how reactive the indicator is to recent price movements, affecting how quickly new structures are identified.
Show Bullish Structure (bull): A toggle to display bullish (uptrend) market structures on the chart.
Show Bearish Structure (bear): A toggle to display bearish (downtrend) market structures on the chart.
Show Premium & Discount (showPD): When enabled, the indicator will draw Premium (overbought) and Discount (oversold) levels on the chart.
2. Colors:
Bullish Color (bullColor): The color used to highlight bullish market structures.
Bearish Color (bearColor): The color used to highlight bearish market structures.
Premium Color (premColor): The color used to display the Premium (overbought) level.
Discount Color (discColor): The color used to display the Discount (oversold) level.
3. Structure Detection:
High and Low Pivot Points (Up, Dn): The indicator continuously tracks the highest and lowest prices over the specified structure period (prd). These pivot points are used to identify potential trend changes.
Change of Character (CHoCH) Detection:
When a new high is detected (Up > previous Up), it signifies a potential bullish trend change. A label with "CHoCH" is placed on the chart, if bullish structures are enabled.
Similarly, when a new low is detected (Dn < previous Dn), it signifies a potential bearish trend change. A "CHoCH" label is placed if bearish structures are enabled.
4. Premium & Discount Levels:
Premium Level (PremiumTop): Calculated as 10% below the detected high pivot. It represents a zone where the price may be considered overbought, suggesting a possible reversal or pullback.
Discount Level (DiscountTop): Calculated as 10% above the detected low pivot. It represents a zone where the price may be considered oversold, suggesting a possible buying opportunity.
These levels are drawn on the chart if the showPD option is enabled, helping traders visually assess the market's condition.
5. Probability Calculation:
Win Rate Calculation (WinRate): The indicator tracks the number of times the market structure changes from bullish to bearish and vice versa. It calculates the win rate as the ratio of bullish to bearish changes, providing insight into the strength of the detected structures.
This win rate is displayed on the chart in the latest bar, giving a real-time assessment of the indicator's performance.
6. Display Options:
The indicator offers full customization of colors and visibility for different components, allowing traders to tailor the visuals to their preferences.
Labels and lines are drawn with a 50% opacity by default, making them less intrusive while still visible on the chart.
Three Anchored Moving Averages (VWAP / SMA / EMA)
This indicator allows users to anchor three types of moving averages (Simple Moving Average (SMA), Exponential Moving Average (EMA), and Volume Weighted Average Price (VWAP)) to specific points in time (anchor points)
Key Features:
Select from three Moving Average Types:
Simple Moving Average (SMA): Averages the closing prices over a specified period.
Exponential Moving Average (EMA): Gives more weight to recent prices, making it more responsive to new information.
Volume Weighted Average Price (VWAP): Averages the price weighted by volume, useful for understanding the average price at which the asset has traded over a period.
Up to Three Anchor Points:
Users can set up to three different anchor points to calculate the moving averages from specific dates and times. This allows for analysis of price action starting from significant points or specific events. For example, you can anchor to the low and high of a move to identify key levels or to points where the price takes off from a previous anchored MA.
Customisable Sentiment Options:
Each anchor point can be associated with a sentiment input (Auto, Bull, Bear, None), which influences if the MAs are displayed as lines or zones/bands:
Auto: Automatically determines the sentiment based on whether anchor points are on pivot highs and lows. If anchored to a pivot high, the system will assume a bearish sentiment and display a red band or zone between the MA OHLC4 and High. Anchoring to a pivot low will display a green band (OHLC4 - Low).
Bull: Forces a bullish sentiment (Green Band - OHLC4 to Low)
Bear: Forces a bearish sentiment (Red Band - OHLC4 to High)
None: Ignores sentiment and displays a single line (OHLC4)
Chart Matching:
The indicator includes an option to display the moving averages only if the chart symbol matches a specified ticker. This feature ensures that the indicator is relevant to the specific asset being analysed.
How to Use the Indicator:
1. Set Anchor Points: When added to your chart, select three anchor points by point and click. If you only wish to anchor to a single point, click on that point three times and disable the other two in settings once the indicator is applied.
2. Select Moving Average Type: Choose between SMA, EMA, or VWAP using the dropdown menu. EMAs are the most responsive.
3. Enable/Disable Anchor Points: Use the checkboxes to enable or disable each anchor point.
4. Select Sentiment Type: Choose between Auto, Bull, Bear, or None.
5. Chart Matching: Optionally, specify a chart symbol to restrict the indicator's display to that particular asset.
6. Interpret the Plots: The indicator plots the high, mid, and low values of the selected moving average type from each anchor point. The fills between these plots help identify potential support and resistance zones. These should be used as points of interest for pullback reversals or potential continuation if the price breaks through.
Practical Applications:
Trend Analysis: Identify the overall trend direction from specific historical points.
Support and Resistance: Determine key dynamic support and resistance levels based on anchored moving averages.
Event-Based Analysis: Anchor the moving averages to significant events (e.g., earnings releases, economic data) to study their impact on price trends.
Multi Timeframe Analysis: Higher Timeframe Anchors can be used to identify longer term trend analysis. Switching to a lower timeframe for execution triggers at these points wont distort the MA levels as they are anchored to a specific point in time
Intraday or Swing Trading: trend analysis using anchor points can be used for any style of trading (Intraday / Swing / Invest). Use anchored levels as points of interest and wait for hints in price action to try and catch the next move.
Fibo Level DailyOverview
The "Fibo Level Daily" strategy is designed for trading Bitcoin (BTC) using the 1-hour timeframe. This strategy relies on Fibonacci levels calculated from the previous day's range and determines entry and exit points based on whether the previous daily candle was bullish or bearish.
How It Works
Fibonacci Levels Calculation:
The indicator calculates Fibonacci levels (0.8, 0.5, and 0.2) based on the high and low of the previous day.
The levels are calculated as follows:
0.8: This level is calculated by multiplying the difference between the previous day's high and low by 0.8 and adding the result to the previous day's low.
0.5: This is the midpoint of the previous day's range.
0.2: This level is calculated by multiplying the difference between the previous day's high and low by 0.2 and adding the result to the previous day's low.
Identifying the Previous Day's Trend:
The indicator checks if the previous daily candle closed bullish (close greater than open) or bearish (close less than open).
Setting Entry and Take Profit Levels:
If the previous daily candle was bearish:
Sell Entry: Wait for the price to rise to the 0.5 level (midpoint of the previous day's range) to enter a sell position.
Take Profit: The profit target is set at the 0.2 level.
If the previous daily candle was bullish:
Buy Entry: Wait for the price to drop to the 0.5 level (midpoint of the previous day's range) to enter a buy position.
Take Profit: The profit target is set at the 0.8 level.
Visual Representation on the Chart:
The indicator draws horizontal lines on the chart representing the Fibonacci levels (0.8, 0.5, and 0.2) from the previous day. These lines help visualize entry and exit points clearly.
Additionally, the last 15 minutes of the daily session are highlighted with a light red background to indicate the session's end.
Conditions of Use:
Timeframe: This indicator is specifically designed for use on the 1-hour timeframe.
Assets: While it can be used on any asset, it is optimized for trading Bitcoin (BTC).
Steps to Use the Indicator
Add the Indicator:
Insert the "Fibo Level Daily" indicator script into your trading platform (such as TradingView).
Select Timeframe:
Change the chart timeframe to 1 hour.
Interpret the Levels:
Observe the horizontal lines drawn on the chart representing the Fibonacci levels.
Identify whether the previous daily candle was bullish or bearish.
Wait for the Entry Price:
For a bearish previous daily candle: Wait for the price to rise to the 0.5 level to enter a sell position.
For a bullish previous daily candle: Wait for the price to drop to the 0.5 level to enter a buy position.
Set the Profit Target:
For a sell: Set your profit target at the 0.2 level.
For a buy: Set your profit target at the 0.8 level.
Execute the Trade:
Initiate the trade once the price reaches the entry level and set your take profit according to the identified trend from the previous day.
Conclusion
The "Fibo Level Daily" strategy provides a clear and precise methodology for identifying entry and exit points in Bitcoin using Fibonacci levels. By following this step-by-step guide, any trader can take advantage of market movements based on the previous day's price action, optimizing their trading opportunities on the 1-hour timeframe.
AHS_MicroGaps_ReversalAttempts V1.0MicroGaps + ReversalAttempts Indicator
Summary:
The "MicroGaps + ReversalAttempts" is a custom TradingView indicator that identifies and visualizes micro gaps, detects reversal attempts after gaps, and optionally plots moving averages and the first-hour trading range. The indicator plots micro gaps as boxes on the chart and marks potential reversal attempts with arrows.
Features:
1. Micro Gaps**:
- Show Micro Gaps: Toggle to display micro gaps on the chart.
- Max Number of Gaps: Limit the number of gaps displayed.
- Minimal Deviation: Set the minimum size for detected gaps as a percentage of the average high-low range for the last 14 bars.
- Limit Max Gap Trail Length: Limit the maximum length (in bars) that a gap is tracked.
2. Gap Colors:
- Up Gaps: Set the border and background colors for upward gaps.
- Down Gaps: Set the border and background colors for downward gaps.
3. Reversal Attempts:
- 1st Reversal Attempt Bulls: Color for the first bullish reversal attempt after a micro gap.
- 1st Reversal Attempt Bears: Color for the first bearish reversal attempt after a micro gap.
4. Moving Averages:
- EMA 1 and EMA 2: Set lengths, colors, and toggle visibility for two EMAs.
- Show EMA Cross: Option to display markers where the EMAs cross each other.
5. First Hour Box:
- Show First Hour Box: Toggle to display the first hour's high and low range as a shaded area.
- Activate First Hour High/Low View: Toggle to highlight the first hour high/low range.
Usage:
1. Adding the Indicator:
- Add the "MicroGaps + ReversalAttempts" indicator to your TradingView chart.
2. Configuring Inputs:
- Micro Gaps: Enable the "Show Micro Gaps" option to visualize gaps.
- Set Parameters: Adjust the parameters for the maximum number of gaps, minimal deviation, and gap trail length.
- Gap Colors: Customize the colors for upward and downward gaps.
- Reversal Attempts: Set colors for the first bullish and bearish reversal attempts.
3. Using the Visuals:
- Micro Gaps: Gaps are displayed as colored boxes on the chart.
- Reversal Attempts: Arrows are plotted above/below the bars to indicate potential reversal attempts after gaps.
- Moving Averages: Configure the lengths and colors of two EMAs and optionally display markers at their crossover points.
- First Hour Box: Enable and customize the first hour high/low range visualization.
4. Alerts:
- Alerts are triggered for the appearance and closure of gaps. Configure these alerts as needed for your trading strategy.
5. First Hour Range:
- The first hour's trading range can be highlighted, providing visual cues about potential support and resistance levels during the session.
This indicator helps traders identify significant market events like micro gaps and reversal attempts, supplemented with moving averages and first-hour range visualization for a comprehensive analysis tool.
Range Sentiment | FractalystWhat’s the purpose of this indicator?
This indicator aims to calculate the percentage level of bullish or bearish fluctuations within equally divided price sections, in the latest price range.
----
How does this indicator calculate the current sentiment?
This indicator calculates the current sentiment by identifying the highest swing high and the lowest swing low, then evenly dividing the distance between them into percentage amounts. If the price is above the 50% mark, it indicates bullishness, whereas if it's below 50%, it suggests bearishness.
----
Is this sentiment the same as the ones on online websites?
No, the sentiment as discussed earlier, is based on analyzing price action on charts and calculating the current range in percentage.
----
What methods do other websites typically use to determine market sentiment?
1. Broker Data Aggregation: Compiling data from various forex brokers to assess the percentage of long and short positions taken by traders.
2. Lot Size Analysis: Considering the size of positions taken by traders, where a significant number of large positions in one direction may indicate strong bullish or bearish sentiment.
3. Order Flow Analysis: Tracking the flow of orders in the forex market, with an increase in buy orders suggesting bullish sentiment and a surge in sell orders indicating bearish sentiment.
4. Sentiment Surveys: Conducting surveys among forex traders to gather opinions about future price movements and gauge sentiment.
----
What are the options to display the current market sentiment?
1. Table - located at top centre of your charts
2. Label - indicating the 50% level of the current range mentioned above
----
How can I analyze how the sentiment worked on historical data?
There are 3 available options:
1. Shapes
2. Candles
3. Background
- White colour/transparent background denote a weak or uncertain trend, where the bullish or bearish degree is less than 60%.
- Blue colour indicates that the price is trading bullish.
- Red colour indicates that the price is trading bearish.
----
On what market and timeframe this indicator operates on?
The Range Sentiment indicator is applicable to all markets and timeframes.
When switching between timeframes, the values remain consistent because it utilizes the daily bias to determine the sentiment for the current day.
----
How can I use this indicator?
1. Add "Range Sentiment | Fractalyst" to your TradingView chart.
2. Choose the pair you want to analyze or trade intraday/during session.
3. Make sure the sentiment is showing you a bullish or a bearish degree of higher than 60%.
(To avoid potentially choppy price action)
4. Use your favourite entry model to trade in the same direction that the sentiment is showing you.
5. Determine your take profit based on the daily swing level OR previous daily high if the bullish degree is above +60% and previous daily low if the bearish degree is +60%.
6. Risk adjustment and Trade management based on your personal preferences.
Example:
----
User-input settings and customizations
----
What makes this indicator original?
1. It utilizes the daily timeframe's current range to determine the day's bias degree in percentage.
2. Apart from presenting the current sentiment in a sentimental table, it also visualizes the 50% threshold as a label, indicating where price may shift direction from a sentiment perspective.
3. It offers the feature to analyze historical data, allowing users to observe indicator performance through shapes, candles, and background colors.
4. By integrating market sentiment directly into the charts, it simplifies the trading process, removing the reliance on online websites and services for sentiment analysis, which often rely on limited brokerage data and resources.
5. Unlike most sentiment websites that primarily focus on forex pairs sentiment data, this indicator stands out by its capability to analyze sentiment across all markets. Moreover, it provides real-time updates, ensuring traders have access to the latest sentiment information regardless of the market they are trading in.
----
Terms and Conditions | Disclaimer
Our charting tools are provided for informational and educational purposes only and should not be construed as financial, investment, or trading advice. They are not intended to forecast market movements or offer specific recommendations. Users should understand that past performance does not guarantee future results and should not base financial decisions solely on historical data.
By continuing to use our charting tools, the user acknowledges and accepts the Terms and Conditions outlined in this legal disclaimer.
Change in DominanceTitle: Change in Dominance Indicator
Description:
This is a tool designed to gauge the prevailing trend in the cryptocurrency market. By analyzing the Rate of Change (ROC) in percentage terms over the previous 9 bars for BTC Dominance (BTC.D), Ethereum Dominance (ETH.D), Other Altcoins Dominance (OTHER.D), and USDT Dominance (USDT.D).
How It Works:
The indicator calculates the ROC for BTC.D, ETH.D (aggregated as part of the Altcoin market), OTHER.D (also included in the Altcoin calculation), and USDT.D.
Three lines represent the trends for Bitcoin (BTC), Altcoins (ETH and OTHER combined), and USDT respectively:
Green Line: Represents the trend for BTC. A higher green line indicates a dominance of BTC in the market trend, suggesting money flow into Bitcoin.
Silver Line: Indicates the Altcoin trend (combining ETH and OTHER). When the silver line is the highest among the three, it signals that Altcoins are leading the market, which can be considered bullish as it suggests money is flowing into Altcoins.
Red Line: Represents the USDT trend. A dominant red line over others implies a bearish market sentiment, indicating money flow out of cryptocurrencies and into USDT.
Usage Tips:
Altcoin Bullishness: When the silver line is above both the red and green lines, it suggests a bullish trend for Altcoins, indicating that money is flowing into the Altcoin sector of the market.
Market Bearishness: If the red line surpasses the silver and green lines, it could be a signal that investors are moving their funds into USDT, often a sign of bearish market sentiment.
BTC Bullishness: A higher green line compared to the silver and red lines implies that Bitcoin is the dominant force in the market, suggesting a bullish sentiment for BTC.
Session Sweeps [LuxAlgo]The Session Sweeps indicator combines ICT-based features for a complete trading methodology involving market sessions, market structure, and fair value gaps to find optimal entry conditions for trading price action.
Traders frequently tend to place stop/limit orders at the high and low points of major trading sessions such as Asian (Tokyo), European (London), and North American (New York), resulting in the establishment of liquidity pools at those particular levels. The Session Sweeps indicator is crafted to recognize and underscore occurrences of session sweeps or liquidity sweeps during these major trading sessions.
🔶 USAGE
Default settings utilize major forex trading sessions, yet users can select their preferred opening and closing times, rename the sessions, or adjust the colors. It's important to note that the specified times for each session align with the respective local timezones: Asian (Tokyo) UTC+9, European (London) UTC, and North American (New York) UTC-5.
If the price briefly crosses either the highest or lowest point of a market session. These movements, aiming at triggering stop losses, suggest potential shifts in the market direction. Detecting such movements is the fundamental purpose and core functionality of the script.
🔹Market Structure Shifts
A Market Structure Shift refers to a change in market direction, either from an uptrend to a downtrend or vice versa. A part of a common entry model when using session sweeps is waiting for the formation of a CHoCH after a session sweep.
🔹Fair Value Gaps
A Fair Value Gap (FVG) holds particular appeal for price action traders, emerging when there are inefficiencies or imbalances in the market, often a result of uneven buying and selling activity. The underlying concept of FVGs is that the market tends to revisit these inefficiencies before resuming its trajectory in alignment with the initial impulsive move.
After the formation of a CHoCH traders can enter a position when the price enters the area of a Fair Value Gap (FVG).
🔹Setup Examples
This entry setup is commonly used by ICT traders and is shared for informational & educational purposes only.
Long Positions (5-Minute Timeframe):
Wait for the previous session's low to be swept.
Look for a Bullish Choch.
Find a Bullish FVG formed by or before the Choch.
Entry Point: At the FVG.
Take Profit (TP): At the session high or aim for a 1:2 Risk-Reward Ratio.
Stop Loss (SL): At the session low or nearest Swing Low.
Take partial profits at intermediate swings, but don’t shift SL prematurely.
Short Positions (5-Minute Timeframe):
Wait for the previous session's high to be swept.
Look for a Bearish Choch.
Find a FVG formed by or before the Choch.
Entry Point: At the FVG.
Take Profit (TP): At the previous session's low or aim for a 1:2 RR.
Stop Loss (SL): At the session high or nearest Swing High.
Take partial profits at intermediate swings, but don’t shift SL prematurely.
🔶 SETTINGS
🔹Session Sweeps
Buyside Sweep Zones, Color, and Margin: toggles the visibility of bullside sweep zones, customizes the associated color, and sets the margin value defining the range of a bullside sweep zone.
Sellside Sweep Zones, Color, and Margin: toggles the visibility of sell-side sweep zones, customizes the associated color, and sets the margin value defining the range of a sell-side sweep zone.
Sweep Margin Length: specifies the maximum allowed length of a sweep zone invalidation, the length over which the price slightly invalidated the margin range.
Detect Sweeps Once per Session: if enabled will detect only once a sweep zone within a session.
Hide Fake Sweep Zones, and Color: controls the visibility and color of the fake sweep zones.
🔹Sessions
Session (Asia, London, New York AM, and New York PM), Start Time, and End Time: enables or disables the visibility of the named market session range, and customization of the session hours.
Color: color customization option of the named session.
Extend Max/Min: extends the highest and lowest price levels of the named session until the end of the next enabled session. This option is recommended to be enabled when sweep zone detection is activated to observe the relationship between the sweep zone and previous session extreme levels.
Extend Mid: extends the mean price levels of the named session until the end of the next enabled session. The extended line may serve as potential support and resistance levels.
Fill: enables/disables background coloring of the named session.
New York DST | London DST: enabling this option initiates Daylight Saving Time (DST) for New York or London. Note: Daylight Saving Time is not applied to the Asian (Tokyo) session.
Sessions Extreme Lines | Sessions Names: toggles the visibility of the highest and lowest price levels, as well as the names, for all market sessions.
Session Lines Width: sets the width of the lines for all sessions.
Session Fill Transparency: sets the background color transparency of the range for all sessions.
🔹Market Structure Shifts
Market Structure Shifts: toggles the visibility of market structure shifts, also known as change of character (CHoCH).
Detection Length: specifies the detection length.
Market Structure Shifts; Bull & Bear: color customization options.
🔹Fair Value Gaps
Fair Value Gaps: toggles the visibility of the fair value gaps.
Fair Value Gap Width Filter: specifies the filtering multiplier; additional details can be found in the tooltip of the respective input option.
Bullish & Bearish Imbalance: color customization options.
🔹Sessions Tabular View
Sessions Tabular View: toggles the visibility of the tabular view of the sessions, displaying date &time, status, and countdown counter.
Hide if not Forex Market Instrument: checks the market and automatically enables/disables the option based on the market instrument.
Table Text Size & Position: size and placement customization options
🔶 LIMITATIONS
Please be aware that fair value gap filtering cannot be applied to the initial 144 candles (with a fixed-length ATR) as the ATR value necessary for filtering won't be available during this period.
🔶 RELATED SCRIPTS
Buyside-Sellside-Liquidity
Sessions
Liquidity-Voids-FVG
Thank you to our community for the recommendation of this script. To explore additional conceptual scripts and related content, we invite you to visit >>> LuxAlgo-Scripts .
ICT Unicorn Model [LuxAlgo]The ICT Unicorn Model indicator highlights the presence of "unicorn" patterns on the user's chart which is derived from the lectures of "The Inner Circle Trader" (ICT) .
Detected patterns are followed by targets with a distance controlled by the user.
🔶 USAGE
At its core, the ICT Unicorn Model relies on two popular concepts, Fair Value Gaps and Breaker Blocks. This combination highlights a future area of support/resistance.
A Bullish Unicorn Pattern consists out of:
A Lower Low (LL), followed by a Higher High (HH)
A Fair Value Gap (FVG), overlapping the established Breaker Block
A successful re-test of the FVG which confirms the pattern.
A Bearish Unicorn Pattern consists of:
A Higher High (HH), followed by a Lower Low (LL)
A Fair Value Gap (FVG), overlapping the established Breaker Block
A successful re-test of the FVG which confirms the pattern
The pattern detection depends on detected swings, which can be controlled by the Swing setting. Using higher values of this setting will return longer-term breaker blocks.
🔹 Using Risk/Reward Targets
A confirmed Unicorn pattern will show a blue ( Target ) / grey ( Stop Loss) "Risk/Reward" areas (RR).
When the Stop Loss or Target is hit, a white line is shown on the concerned side.
The Risk/Reward ratio can be adjusted in the "Targets" settings.
🔹 Trailing Stop
As seen in the previous snapshots, besides the RR areas, this indicator also includes an optional Trailing Stop .
This can be helpful to lower your risk, by exiting earlier than if you would wait until the Stop Loss is hit.
This example shows a successful bullish and bearish Unicorn Pattern . In this scenario, the Trailing Stop could be used for partial Take Profit.
The goal of this publication is to show confirmed Unicorn Patterns . To increase the chance of success, it is important to evaluate the bigger picture & use this in confluence with your price action analysis. For example, look for potential areas of liquidity, consider this pattern only during certain market sessions, avoid trading during heavy impact news, &/or incorporate other aspects of technical analysis rather than just following this pattern blindly.
🔶 DETAILS
🔹 Combine
When disabled, all potential Unicorn Patterns will delete previous unconfirmed patterns:
Enabling Combine ensures the last Unicorn Patterns in the opposite direction will remain.
While the latter bullish pattern became invalid, another one formed.
The combination of the previous bearish pattern, and looking at the big picture, the bullish pattern did not have much chance to be successful.
While disabling 'combine' helps minimize clutter, enabling this feature can give a pattern more chance to hit the SL/Target level.
🔹 Mitigated FVG
Users can determine if a pattern becomes invalid due to a mitigated FVG, causing the pattern to be deleted.
🔹 New pattern detected
When a new pattern is detected, the previous unconfirmed pattern in the same direction (bullish - bullish or bearish - bearish) will be deleted. This will always be the case, whether "Combine' is enabled or disabled.
When the previous pattern was confirmed but no SL or Target level was hit, this pattern will stop updating.
🔶 SETTINGS
🔹 Unicorn
Swings: This sets the length of swings, used for the underlying ZigZag and Unicorn Patterns detection.
Bull: Enable/disable Bullish patterns, and set the color of FVG box and Trailing Stop .
Bear: Enable/disable Bearish patterns, and set the color of FVG box and Trailing Stop .
Combine: When enabled, patterns in opposite directions (bullish/bearish) can exist at the same time. disabling this feature tends to give less clutter. See the "Usage" section for more information.
🔹 Targets
Risk/Reward: Sets the Risk/Reward ratio.
Trailing Stop: Set the length of small swings, which is used for the Trailing Stop .
Fibonacci internal Break of Range PinescriptlabsThe uniqueness of this script lies in the synergy and dynamic interaction resulting from the advanced combination of key elements of technical analysis in the way it strategically merges Fibonacci Levels with the Linear Regression Channel and the internal price structure, creating a highly synergistic market analysis system.
The Linear Regression Channel, drawn from price regression and its standard deviation over a defined number of bars, offers a graphical representation of the prevailing market trend. The combination of this channel with Fibonacci Levels is deliberate and critical: the levels serve as additional filters to validate range breakouts within the channel, and vice versa, channel breakouts enhance the importance of Fibonacci levels by adjusting to the market context, represented by the specific length and displacement within the chart.
Fibonacci levels are updated with each new bar, and the detection of Break of Range (BoR) is integrated with the Fibonacci level plot to highlight significant breakout points. A unique aspect of this script is the way breakouts are identified not only by the price crossing certain Fibonacci levels but also by volume context and candlestick patterns, such as Engulfing patterns, which signal potential changes in market trends.
This interaction between the Linear Regression Channel and Fibonacci Levels, for example, a bullish price breakout above the upper channel boundary simultaneously crossing a significant Fibonacci level, suggests not only a possible continuation of the uptrend but also a strong support level established. Similarly, a bearish price breakout below the lower channel boundary, coinciding with a Fibonacci level, may signal a trend reversal confirmation and a new resistance level.
This script delves further into signal convergence, where the interaction between Break of Range and Fibonacci levels marks bullish and bearish breakouts, respectively, and when these signals coincide with breakouts of any Fibonacci level, they provide cross-confirmation that increases confidence in the generated signal. "BoR+Fib🔼" and "BoR+Fib🔽."
Additionally, the script introduces an innovative implementation of the Linear Regression Channel, which uses a customizable period and standard deviation to plot upper and lower trendlines. This approach allows traders to anticipate potential re-entry points after a breakout, as prices often retest the channel edges, providing low and high entry confirmation opportunities.
A differentiating technical aspect is the conditional logic implemented for bullish and bearish trend signal confirmation. For example, the script calibrates signals based on the intersection of price action with critical Fibonacci levels and confirmed candlestick patterns, enhancing signal reliability compared to using these indicators in isolation.
Key Features:
1. Dynamic calculation of Fibonacci levels.
2. Detection of internal price range breakouts (Break of Range).
3. Linear Regression Channel.
4. Detection of candlestick patterns (Engulfing Patterns).
Dynamic Fibonacci Level Calculation and Internal Range Breakout Detection (Break of Range):
The fusion of Fibonacci levels with the detection of internal range breakouts is crucial because it allows for precise identification of market turning points. Fibonacci levels act as initial filters, indicating potential support and resistance zones. When the price crosses a key Fibonacci level, especially in conjunction with an internal range breakout, the resulting signal is stronger and more reliable. This confluence significantly increases the probability of sustainable price movement.
Broken:
Function: The code identifies breakouts when the price crosses a key Fibonacci level (0%, 100%). A breakout is significant if the price crosses and holds beyond these levels.
Interaction: Breakouts validate Fibonacci levels. For example, a breakout above the 0% Fibonacci level can confirm an uptrend.
Structure Change:
Function: In the code, Structure Change can be interpreted through the detection of pivot patterns and price structure change signals, which we identify as Break of Range.
Interaction: This component acts as confirmation for range breakouts and Fibonacci levels. For example, if a range breakout is followed by a change in price structure (such as the formation of a new higher high), it strengthens the validity of the range breakout signal.
"BoR+Fib🔽": Indicates a bearish range breakout that has also crossed a Fibonacci level downward. This can be interpreted as a sell signal or a bearish trend indication.
"BoR+Fib🔼": Represents a bullish range breakout that has also crossed a Fibonacci level upward. It can be interpreted as a buy signal or a bullish trend indication.
Linear Regression Channel:
Function: The Linear Regression Channel is calculated and drawn using a defined number of bars to establish the overall market trend. Calculations involve summing and averaging closing prices and their products with the time index to calculate the regression line and its standard deviation. The script uses this channel to contextualize Fibonacci signals and range breakouts, with breakouts occurring in the direction of the channel's trend.
Interaction: Provides context to Fibonacci signals and range breakouts. For example, if a range breakout occurs in the same direction as indicated by the Linear Regression Channel, this adds credibility to the signal.
Integration Benefit: The Linear Regression Channel provides an overall trend context. When a range breakout signal and a Fibonacci level coincide within the direction indicated by the channel, the signal's validity is strengthened.
Signal Convergence: An ideal scenario occurs when all elements converge. For example, a good entry point could be when the price experiences a range breakout from a significant Fibonacci level, there is a change in price structure in the same direction, and all of this aligns with the trend indicated by the Linear Regression Channel.
Dynamic Volatility Visualization: Adjusts the width of the Linear Regression Channel based on market volatility.
Validation and Entry Confirmation after Linear Regression Channel Breakout:
Breakout Validation: The Linear Regression Channel breakout is validated not only by price crossing but also by an increase in volume, suggesting a significant breakout rather than a temporary fluctuation.
Entry Confirmation ('Low and High Entry Confirmation'):
Confirmation Bars: A specific number of bars (configurable entry) closing outside the channel are required to confirm an entry. This reduces the risk of false signals.
Channel Re-Test: After the breakout, the price often retests the channel's edge. An entry is confirmed if the price bounces from this area, validating the initial breakout.
Auxiliary Indicators: Oscillators or momentum indicators are used to confirm trend strength after the breakout.
Candlestick Pattern Detection (Engulfing Patterns):
Engulfing Pattern Identification: bullishEngulfing is activated in a bullish pattern with a previous bearish trend and a specific bullish candle. bearishEngulfing is activated in a bearish pattern with a previous bullish trend and a specific bearish candle.
Special Trend Signals:
Bullish signals are displayed as blue circles with "⬆️," while bearish signals are displayed as red circles with "⬇️."
Bullish Signals: Indicate that the price has crossed above certain Fibonacci levels, and the current trend is considered bullish, as the most recent closing price is higher than the closing price of a specific bar in the past.
Bearish Signals: Indicate that the price has crossed below certain Fibonacci levels, and the current trend is considered bearish, as the most recent closing price is lower than the closing price of a specific bar in the past.
Integration with 3Commas for Automation:
Signal Automation: The ability to integrate with platforms like 3Commas allows for the automatic execution of
strategies based on the script's signals, where a bot could execute trades based on the chart-generated signals, facilitating more efficient trading, reducing reaction time, and as an automated script, we only need to input our short Bot Id or our Long Bot ID into the previously loaded message alert.
Español:
La singularidad de este script radica en la sinergia y la interacción dinámica que resulta de la combinación avanzada de elementos clave del análisis técnico en la forma en que fusiona estratégicamente los Niveles de Fibonacci con el Canal de Regresión Lineal y la estructura interna del precio creando un sistema de análisis de mercado altamente sinérgico.
El Canal de Regresión Lineal, dibujado a partir de la regresión de precios y su desviación estándar sobre un número definido de barras, ofrece una representación gráfica de la tendencia predominante del mercado. La combinación de este canal con los Niveles de Fibonacci es deliberada y crítica: los niveles sirven como filtros adicionales para validar las rupturas de rango dentro del canal, y viceversa, las rupturas del canal potencian la importancia de los niveles de Fibonacci ajustándose al contexto del mercado, representado por la longitud y desplazamiento específicos dentro del gráfico.
Los niveles de Fibonacci se actualizan con cada nueva barra, La detección de rupturas de rango (Break of Range) se integra con la trama de niveles de Fibonacci para destacar los puntos de ruptura significativos. Un enfoque único de este script es la manera en que las rupturas no solo se identifican por el cruce de precios de ciertos niveles de Fibonacci sino también por el contexto de volumen y patrones de velas, como los patrones Engulfing, que señalan cambios potenciales en la tendencia del mercado.
Esta interacción entre el Canal de Regresión Lineal y los Niveles de Fibonacci Por ejemplo: una ruptura alcista del precio a través del límite superior del canal al mismo tiempo que cruza un nivel de Fibonacci significativo sugiere no solo una posible continuación de la tendencia alcista sino también un fuerte nivel de soporte establecido. Similarmente, una ruptura bajista del precio a través del límite inferior del canal, coincidiendo con un nivel de Fibonacci, puede señalar una confirmación de cambio de tendencia y un nuevo nivel de resistencia.
Este script profundiza aún más en la confluencia de señales, donde la interacción entre Break of Range y los niveles de Fibonacci marcan rupturas alcistas y bajistas respectivamente, y cuando estas señales coinciden con rupturas del de cualquier nivel de Fibonacci, proporcionan una confirmación cruzada que aumenta la confianza en la señal generada. "BoR+Fib🔼" y "BoR+Fib🔽"
Además, el script presenta una innovadora implementación de Canal de Regresión Lineal, que utiliza un periodo personalizable y una desviación estándar para trazar las líneas de tendencia superior e inferior. Este enfoque permite a los traders anticipar posibles puntos de reentrada después de una ruptura, con el precio a menudo retestando los bordes del canal, proporcionando así oportunidades de confirmación de entrada baja y alta.
Un aspecto técnico diferenciador es la lógica condicional implementada para la confirmación de señales de tendencia alcista y bajista. Por ejemplo, el script calibra señales basadas en la intersección de la acción del precio con los niveles críticos de Fibonacci y los patrones de velas confirmados, mejorando la confiabilidad de las señales en comparación con el uso de estos indicadores de forma aislada.
Características Principales:
1. Cálculo dinámico de niveles de Fibonacci.
2. Detección de rupturas internas del rango de precios (Break of Range).
3. Canal de regresión lineal.
4. Detección de patrones de velas (Patrones Engulfing).
Cálculo Dinámico de Niveles de Fibonacci y Detección de Rupturas Internas (Break of Range):
La fusión de los niveles de Fibonacci con la detección de rupturas internas del rango es crucial porque permite identificar con precisión los puntos de inflexión del mercado. Los niveles de Fibonacci funcionan como filtros iniciales, indicando potenciales zonas de soporte y resistencia. Cuando el precio cruza un nivel clave de Fibonacci, especialmente en conjunto con una ruptura interna del rango, la señal resultante es más robusta y fiable. Esta confluencia incrementa significativamente la probabilidad de que el movimiento del precio sea sostenible
Broken:
Función: El código identifica las rupturas cuando el precio cruza un nivel de Fibonacci clave (0%, 100%). Una ruptura es significativa si el precio cruza y se mantiene más allá de estos niveles.
Interacción: Las rupturas validan los niveles de Fibonacci. Por ejemplo, una ruptura por encima del nivel de Fibonacci del 0% puede confirmar una tendencia alcista.
Cambio de Estructura:
Función: En el código, el Cambio de Estructura se puede interpretar a través de la detección de patrones de pivote y señales de cambio en la estructura de precios, que identificamos como Break of Range.
Interacción: Este componente actúa como una confirmación de las rupturas de rango y los niveles de Fibonacci. Por ejemplo, si una ruptura de rango es seguida por un cambio en la estructura de precios (como la formación de un nuevo máximo más alto), esto refuerza la validez de la señal de ruptura de rango.
"BoR+Fib🔽": Indica una ruptura bajista del rango que también ha cruzado un nivel de Fibonacci hacia abajo. Esto puede interpretarse como una señal de venta o una indicación de tendencia bajista.
"BoR+Fib🔼": Representa una ruptura alcista del rango que también ha cruzado un nivel de Fibonacci hacia arriba. Puede interpretarse como una señal de compra o una indicación de tendencia alcista.
Canal de Regresión Lineal:
Función: El Canal de Regresión Lineal se calcula y dibuja utilizando un número definido de barras para establecer la tendencia general del mercado. Los cálculos involucran la suma y el promedio de los precios de cierre y sus productos con el índice de tiempo, para calcular la línea de regresión y su desviación estándar, el script utiliza este canal para contextualizar las señales de Fibonacci y las rupturas de rango, con rupturas que ocurren en la dirección de la tendencia del canal.
Interacción: Proporciona contexto a las señales de Fibonacci y rupturas de rango. Por ejemplo, si una ruptura de rango ocurre en la misma dirección que la tendencia indicada por el Canal de Regresión Lineal, esto añade credibilidad a la señal.
Beneficio de la Integración:El Canal de Regresión Lineal proporciona un contexto de tendencia general. Cuando una señal de ruptura de rango y un nivel de Fibonacci coinciden dentro de la dirección de la tendencia indicada por el canal, se fortalece la validez de la señal.
Convergencia de Señales: Un escenario ideal ocurre cuando todos los elementos convergen. Por ejemplo, un buen punto de entrada podría ser cuando el precio experimenta una ruptura de rango desde un nivel de Fibonacci importante, hay un cambio de estructura en la misma dirección, y todo esto ocurre en línea con la tendencia indicada por el Canal de Regresión Lineal.
Visualización de Volatilidad Dinámica: Ajusta el ancho del canal de regresión lineal en función de la volatilidad del mercado.
Validación y Confirmación de la Entrada después de la Ruptura del Canal de Regresión:
Confirmación de Ruptura: La ruptura del canal de regresión se valida no solo por el cruce del precio, sino también por un aumento en el volumen, lo que sugiere una ruptura significativa en lugar de una fluctuación temporal.
Confirmación de Entrada ('Confirmación de Entrada Baja y Alta'):
Barras de Confirmación: Se requiere un número específico de barras (entrada configurable) que cierren fuera del canal para confirmar una entrada. Esto reduce el riesgo de señales falsas.
Re-Test del Canal: Después de la ruptura, el precio a menudo vuelve a probar el borde del canal. Una entrada se confirma si el precio rebota desde esta área, validando la ruptura inicial.
Indicadores Auxiliares: Se utilizan osciladores o indicadores de impulso para confirmar la fuerza de la tendencia después de la ruptura.
Detección de Patrones de Velas (Patrones Engulfing):
Identificación de Patrones Engulfing: bullishEngulfing se activa en un patrón alcista con una tendencia bajista previa y una vela alcista específica. bearishEngulfing se activa en un patrón bajista con una tendencia alcista previa y una vela bajista específica.
Señales Especiales de Tendencia:
Las señales alcistas se muestran como círculos azules con "⬆️", mientras que las señales bajistas se muestran como círculos rojos "⬇️".
Señales Alcistas: Indican que el precio ha cruzado por encima de ciertos niveles de Fibonacci y la tendencia actual se considera alcista, ya que el precio de cierre más reciente es mayor que el precio de cierre de una barra específica en el pasado.
Señales Bajistas: Indican que el precio ha cruzado por debajo de ciertos niveles de Fibonacci y la tendencia actual se considera bajista, ya que el precio de cierre más reciente es menor que el precio de cierre de una barra específica en el pasado.
Integración con 3Commas para Automatización:
Automatización de Señales: La capacidad de integrar con plataformas como 3Commas permite la ejecución automática de estrategias basadas en las señales del script donde un bot podría ejecutar operaciones basadas en las señales generadas por el gráfico., facilitando un trading más eficiente y reduciendo el tiempo de reacción y como un script automatizado solo necesitamos poner en la alerta del mensaje previamente cargado nuestro short Bot Id o nuestro Long Bot ID.
Smart Money Oscillator [ChartPrime]The "Smart Money Oscillator " is a premium and discount zone oscillator with BOS and CHoCH built in for further analysis of price action. This indicator works by first determining the the premium and discount zones by using pivot points and high/lows. The top of this oscillator represents the current premium zone while the bottom half of this oscillator represents the discount zone. This oscillator functionally works like a stochastic oscillator with more sophisticated upper and lower bounds generated using smart money concept theories. We have included a moving average to allow the user to visualize the currant momentum in the oscillator. Another key feature we have included lagging divergences to help traders visualize potential reversal conditions.
Understanding the concepts of Premium and Discount zones, as well as Break of Structure (BoS) and Change of Character (CHoCH), is crucial for traders using the Smart Money Oscillator. These concepts are rooted in market structure analysis, which involves studying price levels and movements.
Premium Zone is where the price is considered to be relatively high or 'overbought'. In this zone, prices have risen significantly and may indicate that the asset is becoming overvalued, potentially leading to a reversal or slowdown in the upward trend.
The Discount Zone represents a 'discount' or 'oversold' area. Here, prices have fallen substantially, suggesting that the asset might be undervalued. This could be an indicator of a potential upward reversal or a pause in the downward trend.
Break of Structure (BoS) is about the continuation of a trend. In a bullish trend, a BoS is identified by the break of a recent higher high. In a bearish trend, it's the break of a recent Lower Low. BoS indicates that the trend is strong and likely to continue in its current direction. It's a sign of strength in the prevailing trend, whether up or down.
Change of Character (CHoCH) is an indication of a potential end to a trend. It occurs when there's a significant change in the market's behavior, contradicting the current trend. For example, in an uptrend characterized by higher highs and higher lows, a CHoCH may occur if a new high is formed but then is followed by an impulsive move downwards. This suggests that the bullish trend may be weakening and a bearish reversal could be imminent. CHoCH is essentially a sign of trend exhaustion and potential reversal.
With each consecutive BoS, the signal line of the oscillator will deepen in color. This allows you to visually see the strength of the current trend. The maximum strength of the trend is found by keeping track of the maximum number of consecutive BoS's within a window of 10. This calculation excludes periods without any BoS's to allow for a more stable max.
Quick Update is a feature that implements a more aggressive algorithm to update the highs and lows. Instead of updating the pivot points exclusively to update the range levels, it will attempt to use the current historical highs/lows to update the bounds. This results in a more responsive range at the cost of stability. There are pros and cons for both settings. With Quick Update disabled, the indicator will allow for strong reversals to register without the indicator maxing out. With Quick Update enabled, the indicator will show shorter term extremes with the risk of the signal being pinned to the extremities during strong trends or large movements. With Quick Update disabled, the oscillator prioritizes stability, using a more historical perspective to set its bounds. When Quick Update is enabled, the oscillator becomes more responsive, adjusting its bounds rapidly to reflect the latest market movements.
The Scale Offset feature allows the indicator to break the boundaries of the oscillator. This can be useful when the market is breaking highs or lows allowing the user to identify extremities in price. With Scale Offset disabled the oscillator will always remain inside of the boundaries because the extremities will be updated instantly. When this feature is enabled it will update the boundaries one step behind instead of updating it instantly. This allows the user to more easily see overbought and oversold conditions at the cost of incurring a single bar lag to the boundaries. Generally this is a good idea as this behavior makes the oscillator more sensitive to recent price spikes or drops, reflecting sudden market movements more accurately. It accentuates the extremities of the market conditions, potentially offering a more aggressive analysis. The main trade-off with the Scale Offset feature is between sensitivity and potential overreaction. It offers a more immediate and exaggerated reflection of market conditions but might also lead to misinterpretations in certain scenarios, especially in highly volatile markets.
Divergence is used to predict potential trend reversals. It occurs when the price of an asset and the reading of an oscillator move in opposite directions. This discrepancy can signal a weakening of the current trend and possibly indicate a potential reversal.
Divergence doesn't always lead to a trend reversal, but it's a warning sign that the current trend might be weakening. Divergence can sometimes give false signals, particularly in strongly trending markets where the oscillator may remain in overbought or oversold conditions for extended periods. The lagging nature of using pivot points to calculate divergences means that all divergences are limited by the pivot look forward input. The upside of using a longer look forward is that the divergences will be more accurate. The obvious con here is that it will be more delayed and might be useless by the time it appears. Its recommended to use the built in divergences as a way to learn how these are formed so you can make your own in real time.
By default, the oscillator uses a smoothing of 3 to allow for a more price like behavior while still being rather smooth compared to raw price data. Conversely, you can increase this value to make this indicator behave smoother. Something to keep in mind is that the amount of delay from real time is equal to half of the smoothing period.
We have included a verity of alerts in this indicator. Here is a list of all of the available alerts: Bullish BOS, Bearish BOS, Bullish CHoCH, Bearish CHoCH, Bullish Divergence, Hidden Bullish Divergence, Bearish Divergence, Hidden Bearish Divergence, Cross Over Average, Cross Under Average.
Below are all of the inputs and their tooltips to get you started:
Settings:
Smoothing: Specifies the degree of smoothing applied to the oscillator. Higher values result in smoother but potentially less responsive signals.
Average Length: Sets the length of the moving average applied to the oscillator, affecting its sensitivity and smoothness.
Pivot Length: Specifies the forward-looking length for pivot points, affecting how the oscillator anticipates future price movements. This directly impacts the delay in finding a pivot.
Max Length: Sets the maximum length to consider for calculating the highest values in the oscillator.
Min Length: Defines the minimum length for calculating the lowest values in the oscillator.
Quick Update: Activates a faster update mode for the oscillator's extremities, which may result in less stable range boundaries.
Scale Offset: When enabled, delays updating minimum and maximum values to enhance signal directionality, allowing the signal to occasionally exceed normal bounds.
Candle Color: Enables coloring of candles based on the current directional signal of the oscillator.
Labels:
Enable BOS/CHoCH Labels: Activates the display of BOS (Break of Structure) and CHoCH (Change of Character) labels on the chart.
Visual Padding: Turns on additional visual padding at the top and bottom of the chart to accommodate labels. Determines the amount of visual padding added to the chart for label display.
Divergence:
Divergence Pivot: Defines the number of bars to the right of the pivot in divergence calculations, influencing the oscillator's responsiveness.
Divergence Pivot Forward: Directly impacts latency. Longer periods results in more accurate results at the sacrifice of delay.
Upper Range: Sets the upper range limit for divergence calculations, influencing the oscillator's sensitivity to larger trends.
Lower Range: Determines the lower range limit for divergence calculations, affecting the oscillator's sensitivity to shorter trends.
Symbol: Allows selection of the label style for divergence indicators, with options for text or symbolic representation.
Regular Bullish: Activates the detection and marking of regular bullish divergences in the oscillator.
Hidden Bullish: Enables the identification and display of hidden bullish divergences.
Regular Bearish: Turns on the feature to detect and highlight regular bearish divergences.
Hidden Bearish: Activates the functionality for detecting and displaying hidden bearish divergences.
Color:
Bullish: Determines the minimum/maximum color gradient for bullish signals, impacting the chart's visual appearance.
Bearish: Defines the minimum/maximum color gradient for bearish signals, affecting their visual representation.
Average: Specifies the color for the average line of the oscillator, enhancing chart readability.
CHoCH: Sets the color for bullish/bearish CHoCH (Change of Character) signals.
Premium/Discount: Determines the color for the premium/discount zone in the oscillator's visual representation.
Text Color: Sets the color for the text in BoS/CHoCH labels.
Regular Bullish: Defines the color used to represent regular bullish divergences.
Hidden Bullish: Specifies the color for hidden bullish divergences.
Regular Bearish: Determines the color for hidden bearish divergences.
Divergence Text Color: Specifies the color for the text in divergence labels.
Ichimoku Oscillator With Divergences [ChartPrime]The Ichimoku Oscillator is a trading indicator designed to streamline the interpretation of Ichimoku clouds. It aims to refine and condense the complexities of the Chikou (the lag line), presenting its implications in real-time through an oscillator format, beneficial for those familiar with Ichimoku components but to have a new interpretation of their indicators.
The basics of an Ichimoku:
Conversion Line (Tenkan-Sen): It represents a midpoint of the highest and lowest prices over a specific period, usually 9 periods, reflecting short-term price movements.
Base Line (Kijun-Sen): It acts similarly to the Conversion Line but over a longer period, typically 26 periods, representing medium-term price movements.
Leading Span A & B (Kumo): Span A is the average of the Conversion Line and Base Line, and Span B is the midpoint of the highest and lowest prices over a usually longer period, typically 52 periods. Their interaction denotes trend direction, and the cloud color changes depending on whether Span A is above or below Span B, indicating bullish or bearish market conditions, respectively.
Lagging Span (Chikou Span): It is the current closing price plotted 26 periods behind, assisting in confirming the trend direction and potential momentum.
Advantage of an Oscillator:
Utilizing the oscillator format allows traders to interpret market dynamics more efficiently by visualizing the momentum and trend strength in a bounded range, enabling quick assessments of overbought or oversold conditions. Creating this oscillator provides multiple advantageous; particularly in sideway markets, helping to identify potential reversal points and offering insights on market entries and exits. When building this oscillator we've put a focus on unique interpretations such as overbought and sold areas and divergences; otherwise not found in traditional Ichimoku techniques. It is important to note these divergences are naturally not 100% real time.
When the oscillator turns green; the market is in an uptrend, red for downtrend and yellow for a transitioning market. The center line and the inner most cloud represent a balanced market state.
Key Features & Input Parameters:
Signal Source: Allows the selection of the price data source for signal generation, such as closing prices, and it’s the foundational parameter upon which the oscillator functions.
Normalization Settings: Users can select the normalization mode (“All”, “Window”, or “Disabled”), influencing how the oscillator scales its values. When enabled, it will scale from 100 to -100, allowing the user to understand better the relative positioning of price data.
Smoothing: This indicator offers advanced smoothing features, with options for additional smoothing, allowing traders to adjust the signal's sensitivity to price movements.
Kumo & Chikou Visibility: Traders can customize the visibility settings of Kumo and Chikou, tailoring the display of each component to their preference, enabling a cleaner and more intuitive view of market conditions.
Color Coding: Each component and condition, like bullish or bearish states, can be color-coded, providing visual cues to enhance the interpretability of market trends and states.
Color on Conversion: The oscillator provides an option to color the signal based on the crossover of the conversion and base lines.
Divergence: The oscillator can detect and highlight regular and hidden bullish and bearish divergences between the signal and price, aiding traders in identifying potential trend reversals or continuations.
Alerts:
The list of inbuilt alerts are provided below:
Inside Cloud: The signal line is inside the cloud.
Up Out of Cloud: The signal line crossed above the cloud.
Down Out of Cloud: The signal line crossed below the cloud.
Future Kumo Cross Bullish: The future Kumo lines have crossed in a bullish manner.
Future Kumo Cross Bearish: The future Kumo lines have crossed in a bearish manner.
Current Kumo Cross Bullish: The current Kumo lines have crossed in a bullish manner.
Current Kumo Cross Bearish: The current Kumo lines have crossed in a bearish manner.
Conversion Base Bullish: The conversion line crossed above the base line.
Conversion Base Bearish: The conversion line crossed below the base line.
Signal Bullish on Conversion Base: The signal line crossed above the maximum of conversion and base lines.
Signal Bearish on Conversion Base: The signal line crossed below the minimum of conversion and base lines.
Chikou Bullish: The Chikou line crossed above zero.
Chikou Bearish: The Chikou line crossed below zero.
Signal Over Max: The signal line crossed above the max level.
Signal Over High: The signal line crossed above the high level.
Signal Under Min: The signal line crossed below the min level.
Signal Under Low: The signal line crossed below the low level.
Chikou Over Max: The Chikou line crossed above the max level.
Chikou Over High: The Chikou line crossed above the high level.
Chikou Under Min: The Chikou line crossed below the min level.
Chikou Under Low: The Chikou line crossed below the low level.
Signal Crossover MA: The signal line crossed over the moving average.
Signal Crossunder MA: The signal line crossed under the moving average.
Regular Bullish Divergence: Regular bullish divergence detected.
Hidden Bullish Divergence: Hidden bullish divergence detected.
Regular Bearish Divergence: Regular bearish divergence detected.
Hidden Bearish Divergence: Hidden bearish divergence detected.
Bounce off of Kumo Up: Bullish Bounce off of Kumo.
Bounce off of Kumo Down: Bearish Bounce off of Kumo.
By providing a cohesive visualization of the Ichimoku elements and market momentum within a bounded range, this oscillator is a unique tool and insight into markets.
Market Internals (TICK, ADD, VOLD, TRIN, VIX)OVERVIEW
This script allows you to perform data transformations on Market Internals, across exchanges, and specify signal parameters, to more easily identify sentiment extremes.
Notable transformations include:
1. Cumulative session values
2. Directional bull-bear Ratios and Percent Differences
3. Data Normalization
4. Noise Reduction
This kind of data interaction is very useful for understanding the relationship between two mutually exclusive metrics, which is the essence of Market Internals: Up vs. Down. Even so, they are not possible with symbol expressions alone. And the kind of symbol expression needed to produce baseline data that can be reliably transformed is opaque to most traders, made worse by the fact that prerequisite symbol expressions themselves are not uniform across symbols. It's very nuanced, and if this last bit was confusing … exactly.
All this to say, rather than forcing that burden onto you, I've baked the baseline symbol expressions into the indicator so: 1) the transform functions consistently ingest the baseline data in the correct format and 2) you don't have to spend time trying to figure it all out. Trading is hard. There's no need to make it harder.
INPUTS
Indicator
Allows you to specify the base Market Internal and Exchange data to use. The list of Market Internals is simplified to their fundamental representation (TICK, ADD, VOLD, TRIN, VIX, ABVD, TKCD), and the list of Exchange data is limited to the most common (NYSE, NASDAQ, All US Stocks). There are also options for basic exchange combinations (Sum or Average of NYSE & NASDAQ).
Mode
Short for "Plot Mode", this is where you specify the bars style (Candles, Bars, Line, Circles, Columns) and the source value (used for single value plots and plot color changes).
Scale
This is the first and second data transformation grouped together. The default is to show the origin data as it might appear on a chart. You can then specify if each bar should retain it's unique value (Bar Value) or be added to a running total (Cumulative). You can also specify if you would like the data to remain unaltered (Raw) or converted to a directional ratio (Ratio) or a percentage (Percent Diff). These options determine the scale of the plot.
Both Ratio and Percent Diff. convert a given symbol into a positive or negative number, where positive numbers are bullish and negative numbers are bearish.
Ratio will divide Bull values by Bear values, then further divide -1 by the quotient if it is less than 1. For example, if "0.5" was the quotient, the Ratio would be "-2".
Percent Diff. subtracts Bear values from Bull values, then divides that difference by the sum of Bull and Bear values multiplied by 100. If a Bull value was "3" and Bear value was "7", the difference would be "-4", the sum would be "10", and the Percent Diff. would be "-40", as the difference is both bearish and 40% of total.
Ratio Norm. Threshold
This is the third data transformation . While quotients can be less than 1, directional ratios are never less than 1. This can lead to barcode-like artifacts as plots transition between positive and negative values, visually suggesting the change is much larger than it actually is. Normalizing the data can resolve this artifact, but undermines the utility of ratios. If, however, only some of the data is normalized, the artifact can be resolved without jeopardizing its contextual usefulness.
The utility of ratios is how quickly they communicate proportional differences. For example, if one side is twice as big as the other, "2" communicates this efficiently. This necessarily means the numerical value of ratios is worth preserving. Also, below a certain threshold, the utility of ratios is diminished. For example, an equal distribution being represented as 0, 1, 1:1, 50/50, etc. are all equally useful. Thus, there is a threshold, above which we want values to be exact, and below which the utility of linear visual continuity is more important. This setting accounts for that threshold.
When this setting is enabled, a ratio will be normalized to 0 when 1:1, scaled linearly toward the specified threshold when greater than 1:1, and then retain its exact value when the threshold is crossed. For example, with a threshold of "2", 1:1 = 0, 1.5:1 = 1, 2:1 = 2, 3:1 = 3, etc.
With all this in mind, most traders will want to set the ratios threshold at a level where accuracy becomes more important than visual continuity. If this level is unknown, "2" is a good baseline.
Reset cumulative total with each new session
Cumulative totals can be retained indefinitely or be reset each session. When enabled, each session has its own cumulative total. When disabled, the cumulative total is maintained indefinitely.
Show Signal Ranges
Because everything in this script is designed to make identifying sentiment extremes easier, an obvious inclusion would be to not only display ranges that are considered extreme for each Market Internal, but to also change the color of the plot when it is within, or beyond, that range. That is exactly what this setting does.
Override Max & Min
While the min-max signal levels have reasonable defaults for each symbol and transformation type, the Override Max and Override Min options allow you to … (wait for it) … override the max … and min … signal levels. This may be useful should you find a different level to be more suitable for your exact configuration.
Reduce Noise
This is the fourth data transformation . While the previous Ratio Norm. Threshold linearly stretches values between a threshold and 0, this setting will exponentially squash values closer to 0 if below the lower signal level.
The purpose of this is to compress data below the signal range, then amplify it as it approaches the signal level. If we are trying to identify extremes (the signal), minimizing values that are not extreme (the noise) can help us visually focus on what matters.
Always keep both signal zones visible
Some traders like to zoom in close to the bars. Others prefer to keep a wider focus. For those that like to zoom in, if both signals were always visible, the bar values can appear squashed and difficult to discern. For those that keep a wider focus, if both signals were not always visible, it's possible to lose context if a signal zone is vertically beyond the pane. This setting allows you to decide which scenario is best for you.
Plot Colors
These define the default color, within signal color, and beyond signal color for Bullish and Bearish directions.
Plot colors should be relative to zero
When enabled, the plot will inherit Bullish colors when above zero and Bearish colors when below zero. When disabled and Directional Colors are enabled (below), the plot will inherit the default Bullish color when rising, and the default Bearish color when falling. Otherwise, the plot will use the default Bullish color for all directions.
Directional colors
When the plot colors should be relative to zero (above), this changes the opacity of a bars color if moving toward zero, where "100" percent is the full value of the original color and "0" is transparent. When the plot colors are NOT relative to zero, the plot will inherit Bullish colors when rising and Bearish colors when falling.
Differentiate RTH from ETH
Market Internal data is typically only available during regular trading hours. When this setting is enabled, the background color of the indicator will change as a reminder that data is not available outside regular trading hours (RTH), if the chart is showing electronic trading hours (ETH).
Show zero line
Similar to always keeping signal zones visible (further up), some traders prefer zooming in while others prefer a wider context. This setting allows you to specify the visibility of the zero line to best suit your trading style.
Linear Regression
Polynomial regressions are great for capturing non-linear patterns in data. TradingView offers a "linear regression curve", which this script is using as a substitute. If you're unfamiliar with either term, think of this like a better moving average.
Symbol
While the Market Internal symbol will display in the status line of the indicator, the status line can be small and require more than a quick glance to read properly. Enabling this setting allows you to specify if / where / how the symbol should display on the indicator to make distinguishing between Market Internals more efficient.
Speaking of symbols, this indicator is designed for, and limited to, the following …
TICK - The TICK subtracts the total number of stocks making a downtick from the total number of stocks making an uptick.
ADD - The Advance Decline Difference subtracts the total number of stocks below yesterdays close from the total number of stocks above yesterdays close.
VOLD - The Volume Difference subtracts the total declining volume from the total advancing volume.
TRIN - The Arms Index (aka. Trading Index) divides the ratio of Advancing Stocks / Volume by the ratio of Declining Stocks / Volume. Given the inverse correlation of this index to market movement, when transforming it to a Ratio or Percent Diff., its values are inverted to preserve the bull-bear sentiment of the transformations.
VIX - The CBOE Volatility Index is derived from SPX index option prices, generating a 30-day forward projection of volatility. Given the inverse correlation of this index to market movement, when transforming it to a Ratio or Percent Diff., its values are inverted and normalized to the sessions first bar to preserve the bull-bear sentiment of the transformations. Note: If you do not have a Cboe CGIF subscription , VIX data will be delayed and plot unexpectedly.
ABVD - The Above VWAP Difference is an unofficial index measuring all stocks above VWAP as a percent difference. For the purposes of this indicator (and brevity), TradingViews PCTABOVEVWAP has has been shortened to simply be ABVD.
TKCD - The Tick Cumulative Difference is an unofficial index that subtracts the total number of market downticks from the total number of market upticks. Where "the TICK" (further up) is a measurement of stocks ticking up and down, TKCD is a measurement of the ticks themselves. For the purposes of this indicator (and brevity), TradingViews UPTKS and DNTKS symbols have been shorted to simply be TKCD.
INSPIRATION
I recently made an indicator automatically identifying / drawing daily percentage levels , based on 4 assumptions. One of these assumptions is about trend days. While trend days do not represent the majority of days, they can have big moves worth understanding, for both capitalization and risk mitigation.
To this end, I discovered:
• Article by Linda Bradford Raschke about Capturing Trend Days.
• Video of Garrett Drinon about Trend Day Trading.
• Videos of Ryan Trost about How To Use ADD and TICK.
• Article by Jason Ruchel about Overview of Key Market Internals.
• Including links to resources outside of TradingView violates the House Rules, but they're not hard to find, if interested.
These discoveries inspired me adopt the underlying symbols in my own trading. I also found myself wanting to make using them easier, the net result being this script.
While coding everything, I also discovered a few symbols I believe warrant serious consideration. Specifically the Percent Above VWAP symbols and the Up Ticks / Down Ticks symbols (referenced as ABVD and TKCD in this indicator, for brevity). I found transforming ABVD or TKCD into a Ratio or Percent Diff. to be an incredibly useful and worthy inclusion.
ABVD is a Market Breadth cousin to Brian Shannon's work, and TKCD is like the 3rd dimension of the TICKs geometry. Enjoy.
MACDh with divergences & impulse system (overlayed on prices)-----------------------------------------------------------------
General Description:
This indicator ( the one on the top panel above ) consists on some lines, arrows and labels drawn over the price bars/candles indicating the detection of regular divergences between price and the classic MACD histogram (shown on the low panel). This script is special because it can be adjusted to fit several criteria when trading divergences filtering them according to the "height" and "width" of the patterns. The script also includes the "extra features" Impulse System and Keltner Channels, which you will hardly find anywhere else in similar classic MACD histogram divergence indicators.
The indicator helps to find trend reversals, and it works on any market, any instrument, any timeframe, and any market condition (except against really strong trends that do not show any other sign of reversion yet).
Please take on consideration that divergences should be taken with caution.
-----------------------------------------------------------------
Definition of classic Bullish and Bearish divergences:
* Bearish divergences occur in uptrends identifying market tops. A classical or regular bearish divergence occurs when prices reach a new high and then pull back, with an oscillator (MACD histogram in this case) dropping below its zero line. Prices stabilize and rally to a higher high, but the oscillator reaches a lower peak than it did on a previous rally.
In the chart above (weekly charts of NKE, Nike, Inc.), in area X (around August 2021), NKE rallied to a new bull market high and MACD-Histogram rallied with it, rising above its previous peak and showing that bulls were extremely strong. In area Y, MACD-H fell below its centerline and at the same time prices punched below the zone between the two moving averages. In area Z, NKE rallied to a new bull market high, but the rally of MACD-H was feeble, reflecting the bulls’ weakness. Its downtick from peak Z completed a bearish divergence, giving a strong sell signal and auguring a nasty bear market.
* Bullish divergences , in the other hand, occur towards the ends of downtrends identifying market bottoms. A classical (also called regular) bullish divergence occurs when prices and an oscillator (MACD histogram in this case) both fall to a new low, rally, with the oscillator rising above its zero line, then both fall again. This time, prices drop to a lower low, but the oscillator traces a higher bottom than during its previous decline.
In the example in the chart above (weekly charts of NKE, Nike, Inc.), you see a bearish divergence that signaled the October 2022 bear market bottom, giving a strong buy signal right near the lows. In area A, NKE (weekly charts) appeared in a free fall. The record low A of MACD-H indicated that bears were extremely strong. In area B, MACD-H rallied above its centerline. Notice the brief rally of prices at that moment. In area C, NKE slid to a new bear market low, but MACD-H traced a much more shallow low. Its uptick completed a bullish divergence, giving a strong buy signal.
-----------------------------------------------------------------
Some cool features included in this indicator:
1. This indicator also includes the “ Impulse System ”. The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram, and identifies inflection points where a trend speeds up or slows down. The moving average identifies the trend, while the MACD-Histogram measures momentum. This unique indicator combination is color coded into the price bars for easy reference.
Calculation:
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Price bars are colored blue when conditions for a Red Price Bar or Green Price Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
The Impulse System works more like a censorship system. Green price bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising (you don't have permission to sell). A red price bar indicates that the bears have taken control because the 13-day EMA and MACD Histogram are falling (you don't have permission to buy). A blue price bar indicates mixed technical signals, with neither buying nor selling pressure predominating (either both buying or selling are permitted).
2. Another "extra feature" included here is the " Keltner Channels ". Keltner Channels are volatility-based envelopes set above and below an exponential moving average.
3. It were also included a couple of EMAs.
Everything can be removed from the chart any time.
-----------------------------------------------------------------
Options/adjustments for this indicator:
*Horizontal Distance (width) between two tops/bottoms criteria.
Refers to the horizontal distance between the MACH histogram peaks involved in the divergence
*Height of tops/bottoms criteria (for Histogram).
Refers to the difference/relation/vertical distance between the MACH HISTOGRAM peaks involved in the divergence: 1st Histogram Peak is X times the 2nd.
*Height/Vertical deviation of tops/bottoms criteria (for Price).
Deviation refers to the difference/relation/vertical distance between the PRICE peaks involved in the divergence.
*Plot Regular Bullish Divergences?.
*Plot Regular Bearish Divergences?.
*Delete Previous Cancelled Divergences?.
*Shows a pair of EMAs.
*Shows Keltner Channels (using ATR)
Keltner Channels are volatility-based envelopes set above and below an exponential moving average.
*This indicator also has the option to show the Impulse System over the price bars/candles.
MACDh with divergences & impulse system-----------------------------------------------------------------
General Description:
This indicator ( the one on the low panel ) is a classic MACD that also shows regular divergences between its histogram and the prices. This script is special because it can be adjusted to fit several criteria when trading divergences filtering them according to the "height" and "width" of the patterns. The script also includes the "extra feature" Impulse System, which you will hardly find anywhere else in similar classic MACD histogram divergence indicators.
The indicator helps to find trend reversals, and it works on any market, any instrument, any timeframe, and any market condition (except against really strong trends that do not show any other sign of reversion yet).
Please take on consideration that divergences should be taken with caution.
-----------------------------------------------------------------
Definition of classic Bullish and Bearish divergences:
* Bearish divergences occur in uptrends identifying market tops. A classical or regular bearish divergence occurs when prices reach a new high and then pull back, with an oscillator (MACD histogram in this case) dropping below its zero line. Prices stabilize and rally to a higher high, but the oscillator reaches a lower peak than it did on a previous rally.
In the chart above (weekly charts of NKE, Nike, Inc.), in area X (around August 2021), NKE rallied to a new bull market high and MACD-Histogram rallied with it, rising above its previous peak and showing that bulls were extremely strong. In area Y, MACD-H fell below its centerline and at the same time prices punched below the zone between the two moving averages. In area Z, NKE rallied to a new bull market high, but the rally of MACD-H was feeble, reflecting the bulls’ weakness. Its downtick from peak Z completed a bearish divergence, giving a strong sell signal and auguring a nasty bear market.
* Bullish divergences , in the other hand, occur towards the ends of downtrends identifying market bottoms. A classical (also called regular) bullish divergence occurs when prices and an oscillator (MACD histogram in this case) both fall to a new low, rally, with the oscillator rising above its zero line, then both fall again. This time, prices drop to a lower low, but the oscillator traces a higher bottom than during its previous decline.
In the example in the chart above (weekly charts of NKE, Nike, Inc.), you see a bearish divergence that signaled the October 2022 bear market bottom, giving a strong buy signal right near the lows. In area A, NKE (weekly charts) appeared in a free fall. The record low A of MACD-H indicated that bears were extremely strong. In area B, MACD-H rallied above its centerline. Notice the brief rally of prices at that moment. In area C, NKE slid to a new bear market low, but MACD-H traced a much more shallow low. Its uptick completed a bullish divergence, giving a strong buy signal.
-----------------------------------------------------------------
Extra feature: Impulse System
This indicator also includes the “ Impulse System ”. The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram, and identifies inflection points where a trend speeds up or slows down. The moving average identifies the trend, while the MACD-Histogram measures momentum. This unique indicator combination is color coded into the price bars or macd histogram bars for easy reference.
Calculation:
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Histogram bars are colored blue when conditions for a Red Histogram Bar or Green Histogram Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
The Impulse System works more like a censorship system. Green histogram bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising (you don't have permission to sell). A red histogram bar indicates that the bears have taken control because the 13-day EMA and MACD Histogram are falling (you don't have permission to buy). A blue histogram bar indicates mixed technical signals, with neither buying nor selling pressure predominating (either both buying or selling are permitted).
The impulse system can be removed from the chart any time.
-----------------------------------------------------------------
Options/adjustments for this indicator:
*Horizontal Distance (width) between two tops/bottoms criteria.
Refers to the horizontal distance between the MACH histogram peaks involved in the divergence
*Height of tops/bottoms criteria (for Histogram).
Refers to the difference/relation/vertical distance between the MACH HISTOGRAM peaks involved in the divergence: 1st Histogram Peak is X times the 2nd.
*Height/Vertical deviation of tops/bottoms criteria (for Price).
Deviation refers to the difference/relation/vertical distance between the PRICE peaks involved in the divergence.
*Plot Regular Bullish Divergences?.
*Plot Regular Bearish Divergences?.
*Delete Previous Cancelled Divergences?.
*This indicator also has the option to show the Impulse System over the MACD histogram bars
Cryptosmart Trading Tool (by heswaikcrypt)Introducing the Cryptosmart Trading Tool (CSTP) - An optimized into Market Sentiment and direction tool
The Cryptosmart Trading Tool (CSTP) is an advanced indicator developed to provide valuable insights into market sentiment and direction. This tool combines existing TA tools and intelligently develops smart algorithms to empower traders with a deeper understanding of market dynamics. Some classic elements are included in the scripting, such as the exponential moving average (EMA), volume, and Relative Strength Index (RSI), to provide a comprehensive analysis of market conditions. By combining these indicators, the script aims to capture different aspects of market sentiment and enhance the accuracy of the analysis.
The Cryptosmart Trading Tool (CSTP) incorporates a unique algorithm that combines trend following analysis, momentum analysis, and volume analysis to provide insights into market sentiment and price action.
Trend Following Analysis:
The algorithm utilizes two exponential moving averages (EMAs): EMA1 and EMA2.
When EMA1 crosses above EMA2, it indicates an uptrend (isUptrend).
When EMA1 crosses below EMA2, it indicates a downtrend.
You adjust the input value to suit your trading strategy, however, 7, 8, 21, 34, and 200 have been tested to produce a fine tuned output.
The bar color indicates blue for bullish sentiment (is uptrend) and white for bearish sentiment (is downtrend).
Momentum Analysis:
The relative strength index (RSI) is calculated based on the closing prices and the specified RSI length.
RSI values above 70 indicate overbought conditions (isOverbought).
RSI values below 30 indicate oversold conditions (isOversold).
Using the isOversoldExtreme and isOverboughtExtreme, the CSTP algorithm detect extreme over bought and oversold conditions and alert with label color green and red.
Volume Analysis:
The algorithm calculates the average volume over a specified length (averageVolume).
The volume ratio is obtained by dividing the current volume by the average volume.
High volume activity is identified when the volume ratio is greater than 1 (isHighVolume).
Major Flip and Arrow Plots:
Major bullish or bearish flips are identified when EMA1 crosses above EMA2 with RSI values above 50 and high volume activity (isBullishFlip) or when EMA1 crosses below EMA2 with RSI values below 50 and high volume activity (isBearishFlip).
Arrow plots are used to display trend direction, upward arrows for major bullish flips and downward arrows for major bearish flips.
The algorithm calculates the bullBearRatio and RSIValueAtFlip to capture the volume ratio and RSI values at major flips.
The bullishRatio and bearishRatio variables store the volume ratio values for the corresponding trend conditions.
Labels are also displayed on the chart to provide information about EMA values and RSI values. This can be independently disabled by the user
The uniqueness of the CSTP algorithm lies in its combination of trend following analysis, momentum analysis, and volume analysis. By considering these factors, the algorithm provides insights into market sentiment and price action. The use of EMAs, RSIs, and volume ratios allows traders to identify potential trends, overbought/oversold conditions, and high volume activity. The visual representation of bar colors and arrows enhances the ease of understanding the sentiment and major flips. CSTP is uniquely presented by using dots, arrows, candlestick colors, and shape labels to indicate the market scenario. This is explained below.
By leveraging multiple indicators and analysis techniques, CSTP aims to provide traders with a holistic understanding of market dynamics and enhance their decision-making process.
It's important to note that while the individual components used in CSTP are not new or unique on their own, the specific algorithm, parameters, and calculations used within the script are what make it distinctive and valuable. By carefully integrating these components, CSTP generates results that are greater than the sum of its parts, providing traders with a comprehensive analysis of market conditions.
Through extensive research, analysis, and testing, we have created a useful tool, fine-tuned to optimize the accuracy and reliability of the script's output, which can assist traders in making more informed trading decisions.
How to Use:
1. Apply the CSTP Script:
- Apply the CSTP script to your TradingView chart to start analyzing market conditions. (Access instructions can be found in the author's details section.)
- Ensure you have the latest version of TradingView to access all the features and functionalities.
2. Customize Parameters:
- Customize the input variables to match your trading preferences and adapt the tool to different markets.
- Experiment with different settings, such as RSI Length and EMA Lengths, to find the optimal configuration for your trading strategy.
3. Interpret the Color-Coded Bars and Wave Labels:
- Green bars indicate bullish sentiment, suggesting potential buying opportunities.
- Red bars indicate bearish sentiment, indicating potential selling opportunities.
- Blue and white bars represent sentiment backed by smart money liquidity, adding an extra layer of analysis.
- The wave labels provide insights into market structure and potential wave patterns.
4. Combine with Candlestick philosophy strategy and parameters used:
- Wait for candlestick closure before making trading decisions based on CSTP's analysis.
- Consider the EMA (yellow) line as an additional tool to confirm entry or exit points.
- Combining CSTP's analysis with candlestick patterns can enhance your decision-making process and improve trade timing.
- Volume Analysis: Compares the current volume to the Simple Moving Average (SMA) of volume using the RSI Length parameter to determine high-volume periods.
- Color-Coded Bars: The color of the bars represents different market sentiments based on all the parameters used including Relative strength index, bullish and bearish
divergence and volume conditions.
- Open Close Cross (OCC) Alerts: Generates dot alert with color code (red=Bearish, green=Bullish) when there is a crossover or crossunder between the close and open
prices
Important Notes:
- Candlestick color matter a lot as then show the sentiment of the market at a given time. and it is an added advantage for a trader to understand candlestick Psychology.
Candlestick conditions
I will use this BINANCE:MTLUSDT chart to explain how it works
Long green Arrow: Bullish call, with green isBullish arrow
Long red Arrow: Bearish call, with isBearish arrow
Blue with red wick and tape: this indicate a bearish sentiment but with some bullish volume, this position is dice which requires a proper understanding of entry and exit. when if this said candle stick closes below the EMA line, wait for the the next candle after it t determining your move. If the next one closes above it, then the direction is still bullish, else the direction has flipped bearish. (special scenario: in the range or consolidative market phase, you may need to wait 3-7 day candle close before you decide. use the coloration as guide to help with your decision making).
Blue with green wick and tape: this indicated strong bullish sentiment backed by liquidity to push. it is important to not the candle close, if the candle closes above the EMA (7 and/or 21) that validates the move, else, you may need to wait for the next candle close to determine the move and momentum of the market. Example is the $COOMPUST chart
White with green wick and tape: this works just like the "Blue candlestick with red wick and tape". follow same procedure
White with red wick and tape: White candle with red wick, indicates bearish sentiment backed by available market liquidity at the time.
If you see the market moving upward and the candlestick keep closing with white color, it is an indication of inorganic move (Check BITFINEX:SUIUST ) the best thing to do is to wait at resistance. a similar scenario can be seen here
Market test:
below are picture of the indicator tested on different assets
CRYPTOCAP:BNB
AUD
Tesla
it is best to book an entry after an arrow indicate (especially for a bullish market) and the candle closes above the EMA (Yellow line).
Risk management.
- ALWAYS PROTECT YOUR PROFIT WHEN YOU SEE ON. THE MARKET IS DYNAMIC
- Trading involves risks, and no tool can guarantee absolute accuracy in predicting market direction. Conduct thorough research and exercise caution when making trading decisions.
- Apply proper risk management strategies and adjust position sizes according to your risk tolerance.
- Stay updated with market news and events that may impact your trading decisions.
Conclusion:
The Cryptosmart Trading Tool (CSTP) provides traders with a powerful advantage by offering valuable insights into market sentiment and direction. To gain access or trial, refer to the author's details section. This indicator combines various analysis techniques to provide a comprehensive view of the market. Remember to apply your own analysis and expertise in conjunction with CSTP for optimal results.
This indicator combines my 8years of trading experience. Enjoy
Disclaimer:
Trading involves risks, and the CSTP script is designed to assist traders by providing valuable insights. It should be used as a supplement to your own analysis and expertise. Exercise caution and make informed trading decisions based on your own research.
MACDh with divergences & impulse system-----------------------------------------------------------------
General Description:
This indicator ( the one on the low panel ) is a classic MACD that also shows regular divergences between its histogram and the prices. This script is special because it can be adjusted to fit several criteria when trading divergences filtering them according to the "height" and "width" of the patterns. The script also includes the "extra feature" Impulse System, which you will hardly find anywhere else in similar classic MACD histogram divergence indicators.
The indicator helps to find trend reversals, and it works on any market, any instrument, any timeframe, and any market condition (except against really strong trends that do not show any other sign of reversion yet).
Please take on consideration that divergences should be taken with caution.
-----------------------------------------------------------------
Definition of classic Bullish and Bearish divergences:
* Bearish divergences occur in uptrends identifying market tops. A classical or regular bearish divergence occurs when prices reach a new high and then pull back, with an oscillator (MACD histogram in this case) dropping below its zero line. Prices stabilize and rally to a higher high, but the oscillator reaches a lower peak than it did on a previous rally.
In the chart above (weekly charts of NKE, Nike, Inc.), in area X (around August 2021), NKE rallied to a new bull market high and MACD-Histogram rallied with it, rising above its previous peak and showing that bulls were extremely strong. In area Y, MACD-H fell below its centerline and at the same time prices punched below the zone between the two moving averages. In area Z, NKE rallied to a new bull market high, but the rally of MACD-H was feeble, reflecting the bulls’ weakness. Its downtick from peak Z completed a bearish divergence, giving a strong sell signal and auguring a nasty bear market.
* Bullish divergences , in the other hand, occur towards the ends of downtrends identifying market bottoms. A classical (also called regular) bullish divergence occurs when prices and an oscillator (MACD histogram in this case) both fall to a new low, rally, with the oscillator rising above its zero line, then both fall again. This time, prices drop to a lower low, but the oscillator traces a higher bottom than during its previous decline.
In the example in the chart above (weekly charts of NKE, Nike, Inc.), you see a bearish divergence that signaled the October 2022 bear market bottom, giving a strong buy signal right near the lows. In area A, NKE (weekly charts) appeared in a free fall. The record low A of MACD-H indicated that bears were extremely strong. In area B, MACD-H rallied above its centerline. Notice the brief rally of prices at that moment. In area C, NKE slid to a new bear market low, but MACD-H traced a much more shallow low. Its uptick completed a bullish divergence, giving a strong buy signal.
-----------------------------------------------------------------
Extra feature: Impulse System
This indicator also includes the “ Impulse System ”. The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram, and identifies inflection points where a trend speeds up or slows down. The moving average identifies the trend, while the MACD-Histogram measures momentum. This unique indicator combination is color coded into the price bars or macd histogram bars for easy reference.
Calculation:
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Histogram bars are colored blue when conditions for a Red Histogram Bar or Green Histogram Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
The Impulse System works more like a censorship system. Green histogram bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising (you don't have permission to sell). A red histogram bar indicates that the bears have taken control because the 13-day EMA and MACD Histogram are falling (you don't have permission to buy). A blue histogram bar indicates mixed technical signals, with neither buying nor selling pressure predominating (either both buying or selling are permitted).
The impulse system can be removed from the chart any time.
-----------------------------------------------------------------
Options/adjustments for this indicator:
*Horizontal Distance (width) between two tops/bottoms criteria.
Refers to the horizontal distance between the MACH histogram peaks involved in the divergence
*Height of tops/bottoms criteria (for Histogram).
Refers to the difference/relation/vertical distance between the MACH HISTOGRAM peaks involved in the divergence: 1st Histogram Peak is X times the 2nd.
*Height/Vertical deviation of tops/bottoms criteria (for Price).
Deviation refers to the difference/relation/vertical distance between the PRICE peaks involved in the divergence.
*Plot Regular Bullish Divergences?.
*Plot Regular Bearish Divergences?.
*Delete Previous Cancelled Divergences?.
*This indicator also has the option to show the Impulse System over the MACD histogram bars
MACDh with divergences & impulse system (overlayed on prices)-----------------------------------------------------------------
General Description:
This indicator ( the one on the top panel above ) consists on some lines, arrows and labels drawn over the price bars/candles indicating the detection of regular divergences between price and the classic MACD histogram (shown on the low panel). This script is special because it can be adjusted to fit several criteria when trading divergences filtering them according to the "height" and "width" of the patterns. The script also includes the "extra features" Impulse System and Keltner Channels, which you will hardly find anywhere else in similar classic MACD histogram divergence indicators.
The indicator helps to find trend reversals, and it works on any market, any instrument, any timeframe, and any market condition (except against really strong trends that do not show any other sign of reversion yet).
Please take on consideration that divergences should be taken with caution.
-----------------------------------------------------------------
Definition of classic Bullish and Bearish divergences:
* Bearish divergences occur in uptrends identifying market tops. A classical or regular bearish divergence occurs when prices reach a new high and then pull back, with an oscillator (MACD histogram in this case) dropping below its zero line. Prices stabilize and rally to a higher high, but the oscillator reaches a lower peak than it did on a previous rally.
In the chart above (weekly charts of NKE, Nike, Inc.), in area X (around August 2021), NKE rallied to a new bull market high and MACD-Histogram rallied with it, rising above its previous peak and showing that bulls were extremely strong. In area Y, MACD-H fell below its centerline and at the same time prices punched below the zone between the two moving averages. In area Z, NKE rallied to a new bull market high, but the rally of MACD-H was feeble, reflecting the bulls’ weakness. Its downtick from peak Z completed a bearish divergence, giving a strong sell signal and auguring a nasty bear market.
* Bullish divergences , in the other hand, occur towards the ends of downtrends identifying market bottoms. A classical (also called regular) bullish divergence occurs when prices and an oscillator (MACD histogram in this case) both fall to a new low, rally, with the oscillator rising above its zero line, then both fall again. This time, prices drop to a lower low, but the oscillator traces a higher bottom than during its previous decline.
In the example in the chart above (weekly charts of NKE, Nike, Inc.), you see a bearish divergence that signaled the October 2022 bear market bottom, giving a strong buy signal right near the lows. In area A, NKE (weekly charts) appeared in a free fall. The record low A of MACD-H indicated that bears were extremely strong. In area B, MACD-H rallied above its centerline. Notice the brief rally of prices at that moment. In area C, NKE slid to a new bear market low, but MACD-H traced a much more shallow low. Its uptick completed a bullish divergence, giving a strong buy signal.
-----------------------------------------------------------------
Some cool features included in this indicator:
1. This indicator also includes the “ Impulse System ”. The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram, and identifies inflection points where a trend speeds up or slows down. The moving average identifies the trend, while the MACD-Histogram measures momentum. This unique indicator combination is color coded into the price bars for easy reference.
Calculation:
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Price bars are colored blue when conditions for a Red Price Bar or Green Price Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
The Impulse System works more like a censorship system. Green price bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising (you don't have permission to sell). A red price bar indicates that the bears have taken control because the 13-day EMA and MACD Histogram are falling (you don't have permission to buy). A blue price bar indicates mixed technical signals, with neither buying nor selling pressure predominating (either both buying or selling are permitted).
2. Another "extra feature" included here is the " Keltner Channels ". Keltner Channels are volatility-based envelopes set above and below an exponential moving average.
3. It were also included a couple of EMAs.
Everything can be removed from the chart any time.
-----------------------------------------------------------------
Options/adjustments for this indicator:
*Horizontal Distance (width) between two tops/bottoms criteria.
Refers to the horizontal distance between the MACH histogram peaks involved in the divergence
*Height of tops/bottoms criteria (for Histogram).
Refers to the difference/relation/vertical distance between the MACH HISTOGRAM peaks involved in the divergence: 1st Histogram Peak is X times the 2nd.
*Height/Vertical deviation of tops/bottoms criteria (for Price).
Deviation refers to the difference/relation/vertical distance between the PRICE peaks involved in the divergence.
*Plot Regular Bullish Divergences?.
*Plot Regular Bearish Divergences?.
*Delete Previous Cancelled Divergences?.
*Shows a pair of EMAs.
*Shows Keltner Channels (using ATR)
Keltner Channels are volatility-based envelopes set above and below an exponential moving average.
*This indicator also has the option to show the Impulse System over the price bars/candles.
Candle Color OverlayDescription:
The Candle Color Overlay (CCO) indicator is a powerful tool for visualizing price movements on a chart. It overlays the chart with customizable colors, highlighting bullish and bearish candles based on their open and close values. This indicator helps traders quickly identify the direction of price movements and assess market sentiment.
How it Works:
The Candle Color Overlay indicator performs the following steps:
1. Calculation of the OHLC (Open, High, Low, Close) values for each candle based on the selected timeframe.
2. Classification of each candle as bullish or bearish:
- A bullish candle is when the closing price is greater than or equal to the opening price.
- A bearish candle is when the closing price is lower than the opening price.
3. Overlaying colors on the chart:
- The indicator applies a bullish color to the background when candles are classified as bullish and a bearish color to the background when candles classified as bearish. This overlay provides a visual representation of price movements.
4. Optional display of price movement labels:
- If enabled, the indicator shows a text label at the bottom of the current candle, indicating the percentage increase or decrease in price during a bullish or bearish background period.
Usage:
To effectively use the Candle Color Overlay indicator, follow these steps:
1. Add the indicator to your chart from the list of available indicators.
2. Configure the indicator's inputs:
- Choose the desired color for bullish candles using the "Bullish Color" input.
- Select the preferred color for bearish candles using the "Bearish Color" input.
- Specify the timeframe for analysis using the "Time Frame" input (default is 1 hour).
- Optionally enable the "Show Background Price Movement" input to display the percentage increase or decrease in price during each background period.
3. Analyze the colored overlay:
- Bullish colors represent candles where the closing price is greater than or equal to the opening price, indicating bullish sentiment.
- Bearish colors represent candles where the closing price is lower than the opening price, indicating bearish sentiment.
4. If enabled, observe the price movement labels
5. Combine the insights from the colored overlay and the price movement labels with other technical analysis tools, such as trend lines, support and resistance levels, or candlestick patterns, to make well-informed trading decisions.
