Swing Failure Pattern SFP [TradingFinder] SFP ICT Strategy🔵 Introduction
The Swing Failure Pattern (SFP), also referred to as a "Fake Breakout" or "False Breakout," is a vital concept in technical analysis. This pattern is derived from classic technical analysis, price action strategies, ICT concepts, and Smart Money Concepts.
It’s frequently utilized by traders to identify potential trend reversals in financial markets, especially in volatile markets like cryptocurrencies and forex. SFP helps traders recognize failed attempts to breach key support or resistance levels, providing strategic opportunities for trades.
The Swing Failure Pattern (SFP) is a popular strategy among traders used to identify false breakouts and potential trend reversals in the market. This strategy involves spotting moments where the price attempts to break above or below a previous high or low (breakout) but fails to sustain the move, leading to a sharp reversal.
Traders use this strategy to identify liquidity zones where stop orders (stop hunt) are typically placed and targeted by larger market participants or whales.
When the price penetrates these areas but fails to hold the levels, a liquidity sweep occurs, signaling exhaustion in the trend and a potential reversal. This strategy allows traders to enter the market at the right time and capitalize on opportunities created by false breakouts.
🟣 Types of SFP
When analyzing SFPs, two main variations are essential :
Real SFP : This occurs when the price breaks a critical level but fails to close above it, then quickly reverses. Due to its clarity and strong signal, this SFP type is highly reliable for traders.
Considerable SFP : In this scenario, the price closes slightly above a key level but quickly declines. Although significant, it is not as definitive or trustworthy as a Real SFP.
🟣 Understanding SFP
The Swing Failure Pattern, or False Breakout, is identified when the price momentarily breaks a crucial support or resistance level but cannot maintain the movement, leading to a rapid reversal.
The pattern can be categorized as follows :
Bullish SFP : This type occurs when the price dips below a support level but rebounds above it, signaling that sellers failed to push the price lower, indicating a potential upward trend.
Bearish SFP : This pattern forms when the price surpasses a resistance level but fails to hold, suggesting that buyers couldn’t maintain the higher price, leading to a potential decline.
🔵 How to Use
To effectively identify an SFP or Fake Breakout on a price chart, traders should follow these steps :
Identify Key Levels: Locate significant support or resistance levels on the chart.
Observe the Fake Breakout: The price should break the identified level but fail to close beyond it.
Monitor Price Reversal: After the breakout, the price should quickly reverse direction.
Execute the Trade: Traders typically enter the market after confirming the SFP.
🟣 Examples
Bullish Example : Bitcoin breaks below a $30,000 support level, drops to $29,000, but closes above $30,000 by the end of the day, signaling a Real Bullish SFP.
Bearish Example : Ethereum surpasses a $2,000 resistance level, rises to $2,100, but then falls back below $2,000, forming a Bearish SFP.
🟣 Pros and Cons of SFP
Pros :
Effective in identifying strong reversal points.
Offers a favorable risk-to-reward ratio.
Applicable across different timeframes.
Cons :
Requires experience and deep market understanding.
Risk of encountering false breakouts.
Should be combined with other technical tools for optimal effectiveness.
🔵 Settings
🟣 Logical settings
Swing period : You can set the swing detection period.
SFP Type : Choose between "All", "Real" and "Considerable" modes to identify the swing failure pattern.
Max Swing Back Method : It is in two modes "All" and "Custom". If it is in "All" mode, it will check all swings, and if it is in "Custom" mode, it will check the swings to the extent you determine.
Max Swing Back : You can set the number of swings that will go back for checking.
🟣 Display settings
Displaying or not displaying swings and setting the color of labels and lines.
🟣 Alert Settings
Alert SFP : Enables alerts for Swing Failure Pattern.
Message Frequency : Determines the frequency of alerts. Options include 'All' (every function call), 'Once Per Bar' (first call within the bar), and 'Once Per Bar Close' (final script execution of the real-time bar). Default is 'Once per Bar'.
Show Alert Time by Time Zone : Configures the time zone for alert messages. Default is 'UTC'.
🔵 Conclusion
The Swing Failure Pattern (SFP), or False Breakout, is an essential analytical tool that assists traders in identifying key market reversal points for successful trading.
By understanding the nuances between Real SFP and Considerable SFP, and integrating this pattern with other technical analysis tools, traders can make more informed decisions and better manage their trading risks.
Trendanalyse
Median Supertrend | viResearchMedian Supertrend | viResearch
Conceptual Foundation and Innovation
The "Median Supertrend" indicator, developed by viResearch, offers a unique approach to identifying trends by combining a median-based smoothing mechanism with a modified Supertrend calculation. Unlike the traditional Supertrend, which relies solely on price data, this version calculates a median percentile of the closing price over a specified length, resulting in a more accurate representation of underlying trends.
Technical Composition and Calculation
The "Median Supertrend" enhances the conventional Supertrend formula by introducing improvements to minimize lag and improve responsiveness to market volatility.
Median Smoothing:
The script uses the 50th percentile of the closing price over a user-defined period to provide a smoother representation of price movements, reducing the influence of short-term price spikes or dips for more stable trend analysis.
Supertrend Calculation:
The indicator applies the Average True Range (ATR) to determine the upper and lower trend bands, which are then shifted above or below the smoothed price (median) by a multiple of the ATR, customizable by users to adjust sensitivity.
Trend Logic:
The script uses the upper and lower bands to detect whether the price is trending upwards or downwards and introduces persistence logic to prevent excessive shifting of the bands during consolidating market phases. This mechanism ensures that once the trend changes, the bands adjust smoothly rather than oscillating with each price movement.
Directional Analysis:
Based on price action relative to the trend bands, a directional variable (d) is computed to track whether the price crosses above or below these bands, signaling uptrends or downtrends. The script also includes events to detect transitions from bullish to bearish trends and vice versa, with the option to set alerts for timely decision-making.
Features and User Inputs
The "Median Supertrend" offers several customizable parameters to suit different trading styles:
Supertrend Length: Defines the period used to calculate the smoothing, allowing users to adjust the indicator's sensitivity based on market conditions.
Multiplier: Controls how far the trend bands are placed from the median price. Traders can increase the multiplier for less frequent trend changes or decrease it for more sensitive detection.
Median Length: Governs the length over which the median price is calculated, providing further customization to balance responsiveness and stability.
Practical Applications
The "Median Supertrend" is particularly useful in markets with rapid trend reversals and high volatility, offering an effective way to filter out noise and capture significant trend changes promptly.
Key Uses:
Trend Following: The indicator's primary function is to identify prevailing trends and guide traders in aligning with the market's direction, with its smoothing mechanism helping to ensure reliable trend signals.
Trend Reversal Detection: By tracking crossovers and crossunders relative to the Supertrend bands, the indicator helps traders detect potential reversals early, making it valuable in fast-moving markets.
Strategic Positioning: With adjustable sensitivity and real-time alerts, the "Median Supertrend" can adapt to a variety of trading strategies, from scalping to longer-term trend-following.
Advantages and Strategic Value
The "Median Supertrend" offers advantages over traditional trend indicators:
Reduced Noise: Median smoothing reduces noise from extreme price movements, ensuring more reliable trend signals.
Customizability: With adjustable length and multiplier settings, the indicator allows traders to fine-tune its sensitivity for different market conditions.
Responsiveness: Median-based smoothing, coupled with the ATR, provides a more responsive and adaptive measure of trend direction, particularly valuable in volatile markets.
Summary and Usage Tips
The "Median Supertrend" indicator is a potent tool for capturing market trends with increased precision and reduced lag. It combines the best features of traditional Supertrend indicators with the added stability of median-based smoothing, making it highly effective in volatile markets. Traders are encouraged to experiment with the length and multiplier settings to optimize the indicator for their specific trading strategies, while alerts and visual cues further enhance its utility.
Please keep in mind the following text: Backtests are based on past results and are not indicative of future performance.
N Bar Reversal Detector [LuxAlgo]The N Bar Reversal Detector is designed to detect and highlight N-bar reversal patterns in user charts, where N represents the length of the candle sequence used to detect the patterns. The script incorporates various trend indicators to filter out detected signals and offers a range of customizable settings to fit different trading strategies.
🔶 USAGE
The N-bar reversal pattern extends the popular 3-bar reversal pattern. While the 3-bar reversal pattern involves identifying a sequence of three bars signaling a potential trend reversal, the N-bar reversal pattern builds on this concept by incorporating additional bars based on user settings. This provides a more comprehensive indication of potential trend reversals. The script automates the identification of these patterns and generates clear, visually distinct signals to highlight potential trend changes.
When a reversal chart pattern is confirmed and aligns with the price action, the pattern's boundaries are extended to create levels. The upper boundary serves as resistance, while the lower boundary acts as support.
The script allows users to filter patterns based on the trend direction identified by various trend indicators. Users can choose to view patterns that align with the detected trend or those that are contrary to it.
🔶 DETAILS
🔹 The N-bar Reversal Pattern
The N-bar reversal pattern is a technical analysis tool designed to signal potential trend reversals in the market. It consists of N consecutive bars, with the first N-1 bars used to identify the prevailing trend and the Nth bar confirming the reversal. Here’s a detailed look at the pattern:
Bullish Reversal : In a bullish reversal setup, the first bar is the highest among the first N-1 bars, indicating a prevailing downtrend. Most of the remaining bars in this sequence should be bearish (closing lower than where they opened), reinforcing the existing downward momentum. The Nth (most recent) bar confirms a bullish reversal if its high price is higher than the high of the first bar in the sequence (standard pattern). For a stronger signal, the closing price of the Nth bar should also be higher than the high of the first bar.
Bearish Reversal : In a bearish reversal setup, the first bar is the lowest among the first N-1 bars, indicating a prevailing uptrend. Most of the remaining bars in this sequence should be bullish (closing higher than where they opened), reinforcing the existing upward momentum. The Nth bar confirms a bearish reversal if its low price is lower than the low of the first bar in the sequence (standard pattern). For a stronger signal, the closing price of the Nth bar should also be lower than the low of the first bar.
🔹 Min Percentage of Required Candles
This parameter specifies the minimum percentage of candles that must be bullish (for a bearish reversal) or bearish (for a bullish reversal) among the first N-1 candles in a pattern. For higher values of N, it becomes more challenging for all of the first N-1 candles to be consistently bullish or bearish. By setting a percentage value, P, users can adjust the requirement so that only a minimum of P percent of the first N-1 candles need to meet the bullish or bearish condition. This allows for greater flexibility in pattern recognition, accommodating variations in market conditions.
🔶 SETTINGS
Pattern Type: Users can choose the type of the N-bar reversal patterns to detect: Normal, Enhanced, or All. "Normal" detects patterns that do not necessarily surpass the high/low of the first bar. "Enhanced" detects patterns where the last bar surpasses the high/low of the first bar. "All" detects both Normal and Enhanced patterns.
Reversal Pattern Sequence Length: Specifies the number of candles (N) in the sequence used to identify a reversal pattern.
Min Percentage of Required Candles: Sets the minimum percentage of the first N-1 candles that must be bullish (for a bearish reversal) or bearish (for a bullish reversal) to qualify as a valid reversal pattern.
Derived Support and Resistance: Toggles the visibility of the support and resistance levels/zones.
🔹 Trend Filtering
Filtering: Allows users to filter patterns based on the trend indicators: Moving Average Cloud, Supertrend, and Donchian Channels. The "Aligned" option only detects patterns that align with the trend and conversely, the "Opposite" option detects patterns that go against the trend.
🔹 Trend Indicator Settings
Moving Average Cloud: Allows traders to choose the type of moving averages (SMA, EMA, HMA, etc.) and set the lengths for fast and slow moving averages.
Supertrend: Options to set the ATR length and factor for Supertrend.
Donchian Channels: Option to set the length for the channel calculation.
🔶 RELATED SCRIPTS
Reversal-Candlestick-Structure.
Reversal-Signals.
Season ChartThis overlay is built on the idea of seasonal charts.
It is constructed by taking the percentage change from each close and recording that change for every trading day of any year that is within the sample. We then take the average for each day of all the years.
These averages are then cumulated to create the chart as per traditional seasonal chart construction.
I have also taken a trimmed mean of the averages to try and dampen the impact one off moves that may have a dramatic effect on the daily averages (for example the crash to $0 in oil in April 2020) however, even removing 10% may not guarantee one off moves won’t affect the average.
The construction of the chart is completely dependent on the data provided by TradingView and so it is recommended that if longer sample sizes are used, the user go back to check that the years contained within the sample have a full history. Some data may have large gaps in their history and this can distort the seasonality readings.
I have attempted to align the chart with the first trading day of the year, but the start of some months may be out by a day or two as it becomes difficult to track all weeks with differing market holidays closures each year and this in turn varies the total amount of actual trading days in each year as well as leap years.
This overlay is designed for the Daily time frame only and will not work on Crypto or any other instrument that trades outside of usual business weekdays. Future updates may include the ability to adapt to Crypto instruments.
All feedback and comments welcome!
Open Equals Low/High Candles
This Indicator basically helps us to get the candles where Open = Low & Open =High.
Significance:
1) Open = Low Candles
----> Such candles are very powerful, as the Open = Low marks that there aren't any sellers left below the price on that day. Denoting BULLS power and aggression.
2) Open = High Candles
----> Open = High Candles signify that as soon as the markets opened, Bears were very strong, and no buyers left above the opening price for that candle. Denoting Strong BEARISH sentiment and aggression.
PS: This indicator can be used across all timeframes and indices. As it is purely based on Price-Action study.
RSI based MAGot it! Here’s some information in English specifically about the **RSI-based Moving Average (RSI-based MA)** that we wrote the Pine Script code for:
### RSI-Based Moving Average (RSI-based MA)
An **RSI-based Moving Average (RSI-based MA)** is a technical analysis tool that combines the Relative Strength Index (RSI) with moving averages to provide more insight into market trends and potential reversals. This indicator can be particularly useful for identifying the beginning and end of trends, allowing traders to make more informed decisions.
### How RSI-based MA Works
The RSI-based MA indicator calculates the moving average of the RSI values rather than the asset's price itself. In the script you asked for, we implemented two RSI-based moving averages: one for a 1-minute timeframe and another for a 5-minute timeframe. This dual timeframe approach can help traders spot trends more accurately and identify shifts in momentum across different time periods.
#### Key Features of RSI-based MA:
1. **Dual Timeframe Analysis**:
- The script plots two RSI-based moving averages on the same chart:
- **1-minute RSI-based MA**: A moving average calculated based on RSI values over a 1-minute interval.
- **5-minute RSI-based MA**: A moving average calculated based on RSI values over a 5-minute interval.
- Using different timeframes helps traders see both short-term and longer-term trends simultaneously.
2. **RSI Levels**:
- The RSI-based MA plots values between 0 and 100, similar to the RSI itself. Traders can use typical RSI levels, such as 70 (overbought) and 30 (oversold), to identify potential entry and exit points.
- **Overbought condition**: When the RSI-based MA moves above 70, it indicates the asset might be overbought, suggesting a potential for price to drop.
- **Oversold condition**: When the RSI-based MA drops below 30, it signals that the asset might be oversold, indicating a potential price increase.
3. **Crossovers**:
- **Bullish signal**: If the shorter 1-minute RSI-based MA crosses above the longer 5-minute RSI-based MA, this could indicate a new upward trend beginning.
- **Bearish signal**: Conversely, if the 1-minute RSI-based MA crosses below the 5-minute RSI-based MA, it could suggest the beginning of a downward trend.
### Potential Advantages
- **Smoother Trend Identification**: By applying moving averages to RSI, you can smooth out the short-term fluctuations in RSI values, making it easier to identify the underlying trend.
- **Versatility**: The indicator can be customized for different timeframes and settings, allowing it to be tailored to various trading strategies and asset classes.
- **Enhanced Signals**: Combining RSI and moving averages helps filter out noise, providing more reliable signals for potential trend changes or continuations.
### Potential Limitations
- **Lagging Indicator**: Like most moving averages, RSI-based MAs are lagging indicators. They tend to react after price movements have already begun, which could result in delayed signals.
- **False Signals**: In ranging or highly volatile markets, RSI-based MA may give false signals, indicating a trend reversal or continuation that does not occur.
- **Should Not Be Used Alone**: It's often recommended to use RSI-based MA alongside other technical indicators (like MACD, Bollinger Bands, or moving average crossovers) to confirm signals and reduce the risk of false readings.
### Conclusion
The RSI-based MA can be a powerful tool for traders looking to enhance their understanding of market trends and momentum. By combining RSI with moving averages, traders can smooth out RSI readings and gain a clearer view of the market’s direction. However, as with any indicator, it should be used in conjunction with other tools and strategies to maximize its effectiveness and reduce risk.
Honey Badger and Dip and Rip Days**Definitions**
A Honey Badger Day is defined as a day where the market dips below a certain threshold but then closes above it. Specifically:
- The day's low is less than or equal to the lower of either the opening price or the previous day's closing price.
- The day's closing price is greater than or equal to this same lower threshold.
Dip and Rip Day:A Dip and Rip Day is characterized by a more pronounced dip followed by a stronger recovery. The criteria are:
- The day's low is below 0.11% of the lower of the day's opening price or the previous day's closing price.
- The day's closing price is at least 0.405% higher than its opening price.
- The day's closing price is at least 0.792% higher than its low.
- The day's closing price is at least 0.405% higher than the previous day's closing price.
Both patterns indicate a day where the market experiences a dip but then recovers, with the Dip and Rip pattern showing a more dramatic movement in both directions.
High-Low Cloud Trend [ChartPrime]The High-Low Cloud Trend - ChartPrime indicator, combines the concepts of trend following and mean reversion into a dynamic cloud representation. This indicator constructs high and low bands based on lookback periods, which adjust dynamically to reflect market conditions. By highlighting the upper and lower extremes, it provides a visual gauge for potential reversals and continuation points.
◆ KEY FEATURES
Dynamic Cloud Bands : Uses high and low derived from user-defined lookback periods to create reactive bands that illustrate trend strength and potential reversal zones.
Color-coded Visualization : Applies distinct colors to the bands based on the trend direction, improving readability and decision-making speed.
Mean Reversion Detection : Identifies points where price extremes may revert to a mean, signaling potential entry or exit opportunities based on deviation from expected values.
Flexible Visualization : Offers options to display volume or price-based metrics within labels, enhancing analytical depth.
◆ FUNCTIONALITY DETAILS
Band Formation : Calculates two sets of bands; one based on a primary lookback period and another for a shorter period to capture mean reversion points.
◆ USAGE
Trend Confirmation : Use the main bands to confirm the prevailing market trend, with the cloud filling acting as a visual guide.
Breakout Identification : Monitor for price breaks through the cloud to identify strong momentum that may suggest a viable breakout.
Risk Management : Adjust positions based on the proximity of price to either band, using these as potential support or resistance areas.
Mean Reversion Strategies : Apply mean reversion techniques when price touches or crosses the bands, indicating a possible return to a central value.
⯁ USER INPUTS
Lookback Period : Sets the primary period for calculating high and low bands.
Mean Reversion Points : Toggles the identification of mean reversion opportunities within the bands.
Volume/Price Display : Chooses between displaying volume or price information in the indicator's labels for enhanced detail.
The High-Low Cloud Trend indicator is a versatile and powerful tool for traders who engage in both trend following and mean reversion strategies. It provides a clear visual representation of market dynamics, helping traders to make informed decisions based on established and emerging patterns. This indicator's dual approach ensures that it is suitable for various trading styles and market conditions.
Standardized PSAR Oscillator [AlgoAlpha]Enhance your trading experience with the "Standardized PSAR Oscillator" 🪝, a powerful tool that combines the Parabolic Stop and Reverse (PSAR) with standardization techniques to offer more nuanced insights into market trends and potential reversals.
🔑 Key Features:
- 🛠 Customizable PSAR Settings: Adjust the starting point, increment, and maximum values for the PSAR to tailor the indicator to your strategy.
- 📏 Standardization: Smooth out volatility by standardizing the PSAR values using a customizable EMA, making reversals easier to identify.
- 🎨 Dynamic Color-Coding: The oscillator changes colors based on market conditions, helping you quickly spot bullish and bearish trends.
- 🔄 Divergence Detection: Automatic detection of bullish and bearish divergences with customizable sensitivity and confirmation settings.
- 🔔 Alerts: Set up alerts for key events like zero-line crossovers and trend weakening, ensuring you never miss a critical market move.
🚀 How to Use:
✨ Add the Indicator: Add the indicator to favorites by pressing the star icon, adjust the settings to suite your needs.
👀 Monitor Signals: Watch for the automatic plotting of divergences and reversal signals to identify potential market entries and exits.
🔔 Set Alerts: Configure alerts to get notified of key changes without constantly monitoring the charts.
🔍 How It Works:
The Standardized PSAR Oscillator is an advanced trading tool that refines the traditional PSAR (Parabolic Stop and Reverse) indicator by incorporating several key enhancements to improve trend analysis and signal accuracy. The script begins by calculating the PSAR, a widely used indicator known for its effectiveness in identifying trend reversals. To make the PSAR more adaptive and responsive to market conditions, it is standardized using an Exponential Moving Average (EMA) of the high-low range over a user-defined period. This standardization helps to normalize the PSAR values, making them more comparable across different market conditions.
To further enhance signal clarity, the standardized PSAR is then smoothed using a Weighted Moving Average (WMA). This combination of EMA and WMA creates an oscillator that not only captures trend direction but also smooths out market noise, providing a cleaner signal. The oscillator's values are color-coded to visually indicate its position relative to the zero line, with additional emphasis on whether the WMA is rising or falling—this helps traders quickly interpret the trend’s strength and direction.
The oscillator also includes built-in divergence detection by comparing pivot points in price action with those in the oscillator. This feature helps identify potential discrepancies between the price and the oscillator, signaling possible trend reversals. Alerts can be configured for when the oscillator crosses the zero line or when a trend shows signs of weakening, ensuring that traders receive timely notifications to act on emerging opportunities. These combined elements make the Standardized PSAR Oscillator a robust tool for enhancing your trading strategy with more reliable and actionable signals
Periodical Trend [BigBeluga]The Periodical Trend indicator is designed to provide a detailed analysis of market trends and volatility. It utilizes a combination of Moving Averages and volatility measures to plot trend line, highlight potential trend reversals, and indicate mean reversion opportunities. The indicator offers customizable display options, allowing traders to adjust for sensitivity, volatility bands, and price deviation visibility.
🔵 KEY FEATURES
● Periodical Trend Analysis
Uses (high + volatility) or (low - volatility) as the foundation for trend analysis with a set period.
// Condition to update the AVG array based on the selected mode
if mode == "Normal"
? bar_index == 122
: bar_index % period == 0
AVG.push(close) // Add the close price to the AVG array
// Update AVG array based on the period and price comparison
if bar_index % period == 0
if close > AVG.last() // If the current close is greater than the last stored value in AVG
AVG.push(low - vlt) // Add the low price minus volatility to the array
if close < AVG.last() // If the current close is lower than the last stored value in AVG
AVG.push(high + vlt) // Add the high price plus volatility to the array
Provides adjustable sensitivity modes ("Normal" and "Sensitive") for different market conditions.
Trend direction is visualized with dynamic color coding based on the relationship between the trend line and price.
● Volatility Bands
Displays upper and lower volatility bands derived from a moving average of price volatility (high-low).
The bands help identify potential breakout zones, overbought, or oversold conditions.
Users can toggle the visibility of the bands to suit their trading style.
● Mean Reversion Signals
Detects mean reversion opportunities when price deviates significantly from the trend line.
Includes both regular and strong mean reversion signals, marked directly on the chart.
Signals are based on oscillator crossovers, offering potential entry and exit points.
● Price Deviation Oscillator
Plots an oscillator that measures the deviation of price from the average trend line.
The oscillator is normalized using standard deviation, highlighting extreme price deviations.
Traders can choose to display the oscillator for in-depth analysis of price behavior relative to the trend.
● Dynamic Trend Coloring
The indicator colors the background on the direction of the trend.
Green indicates bullish trends, while blue indicates bearish trends.
The trend colors adapt dynamically to market conditions, providing clear visual cues for traders.
🔵 HOW TO USE
● Trend Analysis
The trend line represents the current market direction. A green trend line suggests a bullish trend, while a blue trend line indicates a bearish trend.
Use the trend line in conjunction with volatility bands to confirm potential breakouts or areas of consolidation.
● Volatility Bands
Volatility bands offer insight into potential overbought or oversold conditions.
Price exceeding these bands can signal a strong trend continuation or a possible reversal.
● Mean Reversion Strategies
Look for mean reversion signals (regular and strong) when price shows signs of reverting to the trend line after significant deviation.
Regular signals are represented by small dots, while strong signals are represented by larger circles.
These signals can be used as entry or exit points, depending on the market context.
● Price Deviation Analysis
The oscillator provides a detailed view of price deviations from the trend line.
A positive oscillator value indicates that the price is above the trend, while a negative value suggests it is below.
Use the oscillator to identify potential overbought or oversold conditions within the trend.
🔵 USER INPUTS
● Period
Defines the length of the period used for calculating the trend line. A higher period smooths out the trend, while a shorter period makes the trend line more sensitive to price changes.
● Mode
Choose between "Normal" and "Sensitive" modes for trend detection. The "Sensitive" mode responds more quickly to price changes, while the "Normal" mode offers smoother trend lines.
● Volatility Bands
Toggle the display of upper and lower volatility bands. These bands help identify potential areas of price exhaustion or continuation.
● Price Deviation
Toggle the display of the price deviation oscillator. This oscillator shows the deviation of the current price from the trend line and highlights extreme conditions.
● Mean Reversion Signals
Toggle the display of mean reversion signals. These signals highlight potential reversal points when the price deviates significantly from the trend.
● Strong Mean Reversion Signals
Toggle the display of stronger mean reversion signals, which occur at more extreme deviations from the trend.
● Width
Adjust the thickness of the trend line for better visibility on the chart.
🔵 CONCLUSION
The Periodical Trend indicator combines trend analysis, volatility bands, and mean reversion signals to provide traders with a comprehensive tool for market analysis. By offering customizable display options and dynamic trend coloring, this indicator can adapt to different trading styles and market conditions. Whether you are a trend follower or a mean reversion trader, the Periodical Trend indicator helps identify key market opportunities and potential reversals.
For optimal results, it is recommended to use this indicator alongside other technical analysis tools and within the context of a well-structured trading strategy.
[MACC] Moving Average Candle ColorThe simplest trading framework is using moving average. This indicator is harnessing that very method.
What It Does:
This indicator helps you see market trends at a glance by changing the color of the candlesticks based on the relationship between two Exponential Moving Averages (EMAs). When the 9-period EMA is above the 21-period EMA, candlesticks turn green, suggesting a bullish trend. When the 9 EMA is below the 21 EMA, candlesticks turn red, indicating a bearish trend.
Why You'll Love It:
Easy Trend Visualization: Quickly spot trends and potential reversals with color-coded candlesticks.
Customizable Settings: Adjust the lengths of the EMAs to fit your trading style. Just change the values in the settings panel and watch the indicator update in real-time.
Optional EMA Lines: See the EMA lines plotted on your chart for added context and trend confirmation.
How to Use It:
Green Candlesticks: It’s a sign that the trend is likely upward.
Red Candlesticks: signaling a potential downward trend.
Customization:
EMA Lengths: You can set the lengths for the 9 EMA and 21 EMA to whatever fits your trading strategy best.
Colors: Adjust the colors if you want to match your chart’s theme.
Get Started: Add this indicator to your TradingView chart and tweak the settings to see how it helps you track market trends more effectively.
Cherio...
Greer BuyZone toolGreer BuyZone Tool
Description:
The Greer BuyZone Tool is a custom Pine Script indicator designed to help identify potential long-term investment opportunities by marking BuyZones on the chart. This tool utilizes the Aroon indicator in combination with Fibonacci numbers to define periods where the asset might be a good candidate for dollar-cost averaging.
Features:
BuyZone Detection: The script identifies and marks the beginning and end of a BuyZone with vertical lines and labels.
Visual Markers: A red vertical line and label indicate the start of a BuyZone, while a green vertical line and label mark the end of a BuyZone.
Aroon Indicator Calculation: Utilizes the Aroon indicator with a Fibonacci length (233) to determine key price levels.
How to Use:
Setup: Add the Greer BuyZone Tool to your TradingView chart. It will display vertical lines and labels marking the BuyZone periods.
BuyZone Identification: Use the red lines and labels ("BZ Begins ->>") to identify the start of a BuyZone, and the green lines and labels ("<<- BZ Ends") to determine when the BuyZone ends.
Long-Term Investment: This tool is intended for long-term investing and dollar-cost averaging strategies, not for day trading.
Disclaimer:
This script is provided for informational purposes only and is not intended as financial advice. The Greer BuyZone Tool is designed to assist in identifying potential long-term investment opportunities and is not suitable for day trading. The use of this tool involves risk, and there is no guarantee of profitability. Users are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The creator of this script assumes no liability for any losses or damages resulting from the use of this indicator.
Author: Sean Lee Greer
Date: 9/1/2024
Dynamic Trailing Stop with Trend ChangeKey features of this script:
Trend Identification: Uses previous day's high/low breaks to identify trend changes.
Uptrend starts when price closes above the previous day's high.
Downtrend starts when price closes below the previous day's low.
Dynamic Trailing Stop:
In an uptrend, the stop is set to the previous day's low and trails higher.
In a downtrend, the stop is set to the previous day's high and trails lower.
Visual Indicators:
Green triangle for uptrend start, red triangle for downtrend start.
Green/red line for the trailing stop.
Background color changes to light green in uptrends, light red in downtrends.
Alerts:
Trend change alerts when a new trend is identified.
Stop hit alerts when price crosses the trailing stop, suggesting a potential exit.
This implementation allows you to:
Identify trend changes based on previous day's high/low breaks.
Trail your stop loss dynamically as the trend progresses.
Get visual and alert-based signals for trend changes and potential exit points.
For swing trading, you could:
Enter long when an uptrend starts (green triangle).
Set your initial stop loss to the trailing stop (green line).
Exit if the price closes below the trailing stop or a downtrend starts (red triangle).
(Reverse for short trades)
Remember, while this strategy can be effective, it's important to combine it with other forms of analysis and proper risk management. The effectiveness can vary depending on the volatility of the asset and overall market conditions. Always test thoroughly before using in live trading.
VWAP SlopePublishing one of the simplest yet one of my favorite concepts. Had to publish since I didn't really find any script for this on TV.
VWAP slope.
This is nothing fancy because it's just calculating "slope" with a very basic level formula
vwap_slope = (vwap - vwap ) / length
Above zero line, it's positive zone.
Below zero line, it's a negative zone.
The idea is to avoid choppy conditions and stay true to larger readings, sometimes when we have vwap directly on chart and when price interacts with it, we tend to take the lot of bad trades.
The intention here is to avoid just that.
This is also good at tracking failure of change in sentiments, this failure is very important, because one's failure occurs there is significant movement in the opposite direction of the failure.
Since there isn't much alteration to this idea, there is not much to talk about tbh.
Just remember, this is an educational idea and not assurance of future performance.
Regards.
Sniper Signal- Description
The Sniper Signal is a sophisticated technical indicator designed for traders seeking to maximize accuracy in identifying key turning points within a market. This indicator is built on a dual approach, combining the power of the Wave Trend Momentum Oscillator (WTMO) with the robustness of a long-term Simple Moving Average (SMA), making it an ideal tool for trading in dynamic and trending market environments.
The WTMO is known for its ability to capture momentum and underlying price direction, providing early signals of trend changes. By smoothing price movements using an exponential moving average (EMA), the WTMO accurately identifies when price is overextending in one direction, which may precede a reversal.
The 100-period SMA acts as a critical trend filter, ensuring that trades are only made in the direction of the prevailing market flow. This approach ensures that signals generated by the WTMO align with the long-term trend, filtering out false signals that can appear in sideways or low volatility markets.
The Sniper Signal is not just an indicator that marks entries and exits; it is a complete strategy in itself, designed for traders who understand the importance of trading in the direction of the prevailing trend. Buy signals are generated only when momentum is at its lowest point (WT1 < -5) and the price is supported by a confirmed uptrend (price above the SMA). Conversely, sell signals are only triggered when momentum is at extremely high levels (WT1 > 5) and the market shows clear signs of weakness (price below the SMA).
This combination of momentum and trend analysis creates a balanced approach that allows traders to capture significant moves in the market, while minimizing exposure to unnecessary risk. The Sniper Signal is particularly effective in markets with well-defined trends, where the key to success lies in entering the market at optimal points and exiting before a significant reversal occurs.
In summary, the Sniper Signal is an advanced tool designed for serious traders looking to take advantage of the combination of momentum and trend to execute high probability trades in moving markets.
- How to use the script?
The Sniper Signal indicator code is written in Pine Script, the native programming language of TradingView. To use this indicator, users must copy the code and paste it into the Pine Script editor within the TradingView platform. Once they have done this, they can save and add the script to their chart to begin displaying buy and sell signals directly on their price charts.
When using the Sniper Signal, traders should pay attention to the signals represented by the triangles on the chart: an upward-facing blue triangle indicates a possible buying opportunity, while a downward-facing red triangle suggests a possible selling opportunity. It is crucial that users also watch the 100-period Simple Moving Average (SMA), shown as a gray line on the chart, to ensure that trades align with the overall market trend. This helps filter out less reliable signals and improves the accuracy of trading decisions.
- Open-source reuse
The indicator code is based on common and widely used concepts in technical analysis, such as the Wave Trend Momentum Oscillator (WTMO) and the Simple Moving Average (SMA). These components are not proprietary and are part of the general knowledge in the trading community, which means that many developers can create their own versions based on these same principles.
Liquidity weighted SupertrendOverview
The Liquidity Weighted Supertrend Indicator (LWST) is an advanced iteration of the traditional Supertrend indicator, meticulously crafted to improve trend detection by incorporating liquidity into its calculations. By weighting price movements according to trading volume, the LWST becomes more responsive to significant market activities, offering traders a more accurate depiction of market trends.
Indicator Description
The Liquidity Weighted Supertrend Indicator is a versatile and adaptive tool designed to assist traders in recognizing trends and potential reversal points within the market. This indicator features two operational modes: Aggressive and Smoothed, allowing traders to tailor trend detection to their specific trading style and market conditions.
Key Features
Two Supertrend Modes:
Aggressive Mode: This mode offers more responsive signals, ideal for short-term trading. It utilizes an Exponential Moving Average (EMA) to smooth the price data, resulting in quicker reactions to market changes.
Smoothed Mode: This mode provides more stable signals, suitable for longer-term trading, by employing a Simple Moving Average (SMA). Note that when "Smoothed" mode is selected, the "Fast MA length" input is not utilized, focusing instead on producing smoother trend lines.
LWMA Calculation:
The Liquidity Weighted Moving Average (LWMA) is a distinctive feature of the LWST, blending volume and price action to filter out market noise and pinpoint significant price movements. This calculation begins with the liquidity factor, determined by multiplying volume with the price change, which is then smoothed using an EMA for accuracy.
Customizable Parameters:
Factor: Adjusts the Supertrend line's sensitivity to price movements.
Supertrend Length: Defines the lookback period for the Average True Range (ATR) calculation, which affects the width of the Supertrend channel.
Fast and Slow MA Lengths: Allows customization of the fast and slow moving averages used in the LWMA calculation, offering further control over the indicator's responsiveness.
How the Indicator Works
LWMA Smoothing:
The LWST calculates liquidity by multiplying volume with the absolute difference between the close and open prices. This liquidity value is smoothed using an EMA and compared to its standard deviation, identifying significant price movements. Depending on the selected mode, the price data (hl2) is smoothed either with an EMA (in Aggressive Mode) or an SMA (in Smoothed Mode). It’s important to note that when Smoothed mode is active, the "Fast MA length" input does not affect the output.
Visual Signals:
The Supertrend line is visually represented on the chart, with different colors indicating bullish (lime) and bearish (red) trends.
Buy and sell signals are clearly marked with arrows: green triangles indicate potential buying opportunities (when the price crosses above the Supertrend line), and red triangles suggest selling opportunities (when the price crosses below the Supertrend line).
Additional arrows may appear, signaling potential trend reversals, providing further confirmation for traders.
How to Use the Indicator
Configuring the Indicator:
Supertrend Type: Choose between Aggressive and Smoothed modes depending on your trading strategy and the current market conditions. Aggressive mode is better suited for shorter timeframes, while Smoothed mode provides more consistent signals for longer-term analysis.
Factor and Length Settings: Customize the Factor, Supertrend Length, and Moving Average lengths to fine-tune the sensitivity and responsiveness of the Supertrend line, adapting the indicator to various market environments.
Interpreting the Signals:
Trend Identification: The Supertrend line offers a clear visualization of the current market trend. A green line indicates a bullish trend, suggesting upward price movement, while a red line indicates a bearish trend, signaling potential downward price movement.
Entry and Exit Points: The arrows plotted by the LWST provide straightforward entry and exit signals. Green arrows signal potential buy opportunities, indicating that the price may continue to rise, while red arrows signal potential sell opportunities, suggesting that the price may decline. These visual cues help traders make informed decisions based on the current market trend.
Volume on levels @gauranshgVolume on Levels @gauranshg is a powerful Pine Script designed to visualize trading volume across price levels directly on the chart. This script allows users to observe volume intensity, offering a clearer perspective on price action and potential support/resistance areas. By utilizing a dynamic, customizable multiplier, the volume is normalized and displayed in proportion, ensuring better scalability across various timeframes and assets.
Usage:
Normalization of Volume: Users can input a multiplier to adjust the normalization of volume. This is useful when analyzing assets with differing price and volume ranges.
Input of 1 means 1 Million volume will be marked with green color of opacity 1 and 2 Million as 2 and so on. In case you are looking at chart with very high volume, you might want to increase the multiplies
Default multiplier is set to 1, and can be customized for different scales.
Volume Visualization: The volume is displayed on the chart as background boxes behind price levels, with the opacity of the boxes changing based on the normalized volume. This helps to quickly visualize areas of high and low trading activity.
This script is ideal for investors who wish to enhance their volume analysis by visualizing it directly on price levels in a clear, normalized format.
Bat Harmonic Pattern [TradingFinder] Bat Chart Indicator🔵 Introduction
The Bat Harmonic Pattern, created by Scott Carney in the 1990s, is a sophisticated tool in technical analysis, used to identify potential reversal points in price movements by leveraging Fibonacci ratios.
This pattern is classified into two primary types: the Bullish Bat Pattern, which signals the end of a downtrend and the beginning of an uptrend, and the Bearish Bat Pattern, which indicates the conclusion of an uptrend and the onset of a downtrend.
🟣 Bullish Bat Pattern
The Bullish Bat Pattern is designed to identify when a downtrend is likely to end and a new uptrend is about to begin. The key feature of this pattern is Point D, which typically aligns near the 88.6% Fibonacci retracement of the XA leg.
This point is considered a strong buy zone. When the price reaches Point D after a significant downtrend, it often indicates a potential reversal, presenting a buying opportunity for traders anticipating the start of an upward movement.
🟣 Bearish Bat Pattern
In contrast, the Bearish Bat Pattern forms when an uptrend is nearing its conclusion. Point D, which also typically aligns near the 88.6% Fibonacci retracement of the XA leg, serves as a critical point for traders.
This point is regarded as a strong sell zone, signaling that the uptrend may be ending, and a downtrend could be imminent. Traders often open short positions when they identify this pattern, aiming to capitalize on the anticipated downward movement.
🔵 How to Use
The Bat Pattern consists of five key points: X, A, B, C, and D, and four waves: XA, AB, BC, and CD. Fibonacci ratios play a crucial role in this pattern, helping traders pinpoint precise entry and exit points. In both the Bullish and Bearish Bat Patterns, the 88.6% retracement of the XA leg is a critical level for identifying potential reversal points.
🟣 Bullish Bat Pattern
Traders typically enter buy positions after Point D forms, expecting the downtrend to end and a new uptrend to start. This point, located near the 88.6% retracement of the XA leg, serves as a reliable buy signal.
🟣 Bearish Bat Pattern
Traders usually open short positions after identifying Point D, expecting the uptrend to end and a downtrend to begin. This point, also near the 88.6% retracement of the XA leg, acts as a valid sell signal.
🟣 Trading Tips for the Bat Pattern
Accurate Fibonacci Point Identification : Accurately identify Points X, A, B, C, and D, and calculate the Fibonacci ratios between these points. Point D should ideally be near the 88.6% retracement of the XA leg.
Signal Confirmation with Other Tools : To enhance the pattern's accuracy, avoid trading solely based on the Bat Pattern.
Risk Management : Always use stop-loss orders. In a Bullish Bat Pattern, place the stop-loss below Point X, and in a Bearish Bat Pattern, above Point X. This helps limit potential losses if the pattern fails.
Wait for Price Movement Confirmation : After identifying Point D, wait for the price to move in the anticipated direction to confirm the pattern's validity before entering a trade.
Set Realistic Profit Targets : Use Fibonacci retracement levels to set realistic profit targets, such as 38.2%, 50%, and 61.8% retracement levels of the CD leg. This strategy helps maximize profits and prevents premature exits.
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Forma t: If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
🔵 Conclusion
The Bat Harmonic Pattern is a powerful tool in technical analysis, offering traders the ability to identify critical reversal points using Fibonacci ratios. By recognizing the Bullish and Bearish Bat Patterns, traders can anticipate potential trend reversals and make informed trading decisions.
However, it is essential to combine the Bat Pattern with other technical analysis tools and confirm signals for better trading outcomes. With proper use, this pattern can help traders minimize risk and optimize their entry and exit points in the market.
Landry Light with Moving AverageLandry Light with Moving Average
Overview:
This Pine Script, titled "Landry Light with Moving Average", visualizes the relationship between price action and a chosen moving average (MA) over time. It helps users easily identify periods where the price stays consistently above or below the moving average, which can be a useful indicator of bullish or bearish trends.
Key Features:
Moving Average Type Selection:
The script allows users to choose between two types of moving averages:
Exponential Moving Average (EMA)
Simple Moving Average (SMA)
This is done via a user input option, enabling traders to tailor the indicator to their preferred analysis method.
Moving Average Length:
Users can set the length of the moving average (default is 21 periods). This allows customization based on the trader's time frame, whether short-term or long-term analysis.
Dynamic Moving Average Color:
The moving average line changes color based on the relationship between the price and the MA:
Green: Price is consistently above the MA (bullish condition).
Red: Price is consistently below the MA (bearish condition).
Blue: Price is crossing or close to the MA (neutral or indecisive condition).
Cumulative Days Above/Below MA:
The script tracks and displays the number of consecutive days the price remains above or below the moving average:
Cumulative Days Above: Shown as a green histogram above the zero line.
Cumulative Days Below: Shown as a red histogram below the zero line.
This feature helps users identify sustained trends or potential reversals.
Real-time Labels:
The script generates dynamic labels that display the count of cumulative days the price has stayed above or below the moving average.
These labels are positioned near the moving average on the chart, providing an easy reference for traders.
How Users Can Benefit:
Trend Identification:
By visually representing how long the price stays above or below a key moving average, traders can identify strong bullish or bearish trends. This can inform entry and exit points.
Visualizing Market Sentiment:
The colored moving average line and histogram help traders quickly assess market sentiment. A prolonged green MA line suggests a strong uptrend, while a prolonged red line indicates a downtrend.
Adaptability:
With customizable moving average types and lengths, the indicator can be tailored to fit various trading strategies, whether for day trading, swing trading, or long-term investing.
Reversal Signals:
A shift from cumulative days above to cumulative days below (or vice versa) can serve as an early signal of a potential market reversal, allowing traders to adjust their positions accordingly.
Simplified Decision-Making:
The combination of visual cues (colors, histograms, and labels) simplifies decision-making, allowing traders to focus on trend strength rather than complex calculations.
Usage:
To use this script:
Add the Indicator to Your Chart:
Select the desired moving average type and length.
The script will plot the moving average, colored by the trend, and display cumulative days above or below it.
Interpret the Signals:
Use the histogram and labels to gauge the strength of the trend.
Monitor color changes in the moving average for potential trend reversals.
Incorporate into Your Strategy:
Combine this indicator with other tools (e.g., volume analysis, RSI) to confirm signals and refine your trading strategy.
This indicator is particularly useful for traders who follow the "Landry Light" concept, emphasizing the importance of price staying above or below a moving average to determine trend strength.
Swing Points [Syafiq.Jr]The Swing Points indicator by Syafiq.Jr is designed to identify and visualize pivotal market structures such as Higher Highs (HH), Lower Highs (LH), Lower Lows (LL), and Higher Lows (HL) directly on the chart. This tool is essential for traders who utilize swing trading strategies and rely on understanding market trends through key price levels.
Key Features:
Pivot Strength: Configurable pivot strength to customize the sensitivity of swing points.
Customizable Visuals: Users can adjust the colors and visibility of the zones for each swing point category (HH, LH, LL, HL) based on their preferences.
Multiple Timeframe Support: The indicator offers the flexibility to display swing points from the current timeframe or higher timeframes such as 5-minute, 15-minute, 30-minute, 1-hour, 4-hour, and daily intervals.
Dynamic Extension Lines: Automatically extend key levels across the chart for ongoing reference.
Configurable Font Sizes: Adjust the font size for labels marking the swing points to ensure clear visualization.
This indicator is ideal for traders who need to spot and track critical swing points across different timeframes, enabling better decision-making in trending and ranging markets.
Uptrick: Logarithmic Crypto Bands
Description :
Introduction
The `Uptrick: Logarithmic Crypto Bands` indicator introduces an innovative approach to technical analysis tailored specifically for the cryptocurrency markets. By leveraging logarithmic transformations combined with dynamic exponential bands, this indicator offers a sophisticated method for identifying critical support and resistance levels, assessing market trends, and evaluating volatility. Its unique approach stands out from traditional indicators by addressing the specific challenges of high volatility and erratic price movements inherent in cryptocurrency trading.
Originality and Usefulness
** 1. Unique Logarithmic Transformation: **
- Innovation : Unlike traditional indicators that often use raw price data, the Uptrick: Logarithmic Crypto Bands applies a logarithmic transformation to the closing prices: logPrice = math.log(close). This approach is original because it reduces the impact of extreme price fluctuations, providing a smoother and more stable price series. This transformation addresses a common issue in cryptocurrency markets where large price swings can obscure true market trends.
- Advantage : The logarithmic transformation compresses the price range, which allows traders to better identify long-term trends and reduce the noise caused by outlier price movements. This results in a more reliable basis for analysis and enhances the ability to detect meaningful market patterns.
**2. Dynamic Exponential Bands :**
- Innovation : The indicator employs exponential calculations to derive dynamic support and resistance levels based on a central base line : baseLine * math.pow(multiplier, n). Unlike static bands that remain fixed regardless of market conditions, these bands adjust dynamically according to market volatility.
- Advantage : The dynamic nature of the bands provides a more responsive and adaptive tool for traders. As market volatility changes, the bands widen or narrow accordingly, offering a more accurate reflection of potential support and resistance levels. This adaptability improves the tool's effectiveness in varying market conditions compared to static or traditional bands.
Detailed Description and Substantiation
**1. Logarithmic Price Calculation :**
- Code : ` logPrice = math.log(close)
- Description : This calculation converts the closing price into its logarithmic value. By compressing the price range, it minimizes the distortion caused by extreme price movements, which can be particularly pronounced in the volatile cryptocurrency markets.
- Purpose : To provide a stabilized price series that facilitates more accurate trend analysis and reduces the influence of erratic price fluctuations.
**2. Moving Averages of Logarithmic Prices :**
- ** Long-Term Moving Average :**
- Code : maLongLogPrice = ta.sma(logPrice, longLength)
longLength = 2000
- ** Description : A simple moving average of the logarithmic price over a long period. This average helps filter out short-term noise and provides insight into the long-term market trend.
- Purpose : To offer a perspective on the overall market direction, making it easier to identify enduring trends and distinguish them from short-term price movements.
- Short-Term Moving Average :
- Code : maShortLogPrice = ta.sma(logPrice, shortLength) shortLength = 900
- Description : A simple moving average of the logarithmic price over a shorter period. This component captures more immediate price trends and potential reversal points.
- Purpose : To detect short-term trends and changes in market direction, allowing traders to make timely trading decisions based on recent price action.
**3. Base Line Calculation :**
- Code : baseLine = math.exp(maShortLogPrice)
- Description : Converts the short-term moving average of the logarithmic price back to the original price scale. This base line serves as the central reference point for calculating the surrounding bands.
- Purpose : To establish a benchmark level from which the exponential bands are calculated, providing a central reference for assessing potential support and resistance levels.
**4. Band Calculation and Plotting :**
- ** Code :**
- Band 1: plot(baseLine * math.pow(multiplier, 1), color=color.new(color.yellow, 20), linewidth=1, title="Band 1")
- Band 2: plot(baseLine * math.pow(multiplier, 2), color=color.new(color.yellow, 20), linewidth=1, title="Band 2")
- Band 3: plot(baseLine * math.pow(multiplier, 3), color=color.new(color.yellow, 20), linewidth=1, title="Band 3")
- Band 4: plot(baseLine * math.pow(multiplier, 4), color=color.new(color.yellow, 20), linewidth=1, title="Band 4")
- Band 5: plot(baseLine * math.pow(multiplier, 5), color=color.new(color.yellow, 10), linewidth=1, title="Band 5")
- Band 6: plot(baseLine * math.pow(multiplier, 6), color=color.new(color.yellow, 0), linewidth=1, title="Band 6")
- * Multiplier : Set at 1.3, adjusts the spacing between bands to accommodate varying levels of market volatility.
- Description : Bands are plotted at exponential intervals from the base line. Each band represents a potential support or resistance level, with the spacing between them increasing exponentially. The color opacity of each band indicates its level of significance, with closer bands being more relevant for immediate trading decisions.
** How to Use the Indicator :**
**1. Identifying Support and Resistance Levels :**
- Support Levels : The lower bands, closer to the base line, can act as potential support levels. When the price approaches these bands from above, they may indicate areas where the price could stabilize or reverse direction.
- Resistance Levels : The upper bands, further from the base line, serve as resistance levels. When the price nears these bands from below, they can act as barriers to price movement, potentially leading to reversals or stalls.
**2. Confirming Trends :**
- Uptrend Confirmation : When the price consistently remains above the base line and moves towards higher bands, it signals a strong bullish trend. This confirmation helps traders capitalize on upward price movements.
- Downtrend Confirmation : When the price stays below the base line and approaches lower bands, it indicates a bearish trend. This confirmation assists traders in acting on downward price movements.
3. Analyzing Volatility :
- Wide Bands : Wider spacing between bands reflects higher market volatility. This indicates a more turbulent trading environment, where price movements are less predictable. Traders may need to adjust their strategies to handle increased volatility.
- Narrow Bands : Narrower bands suggest lower volatility and a more stable market environment. This can result in more predictable price movements and clearer trading signals.
**4. Entry and Exit Points :**
- Entry Points : Consider buying when the price bounces off the base line or a band, which could signal support in an uptrend.
- Exit Points : Evaluate selling or taking profits when the price nears upper bands or shows signs of reversal at these levels. This approach helps in locking in gains or minimizing losses during a downtrend.
**Chart Example:**
Here you can see how the price reacted getting closer to this level. All green circles show a bounce-off. So just from looking at the chart we can see a potential bounce again pretty soon.
** Disclosure :**
- ** Performance Claims :** The `Uptrick: Logarithmic Crypto Bands` indicator is designed to assist traders in analyzing price levels and trends. It is important to understand that this tool provides historical data analysis and does not guarantee future performance. The features and benefits described are based on historical market behavior and should not be seen as a prediction of future results. Traders should use this indicator as part of a broader trading strategy and consider other factors before making trading decisions.
Multi Adaptive Moving Average (MAMA)The Multi Adaptive Moving Average (MAMA) indicator is an advanced tool for technical analysis, designed to provide traders with a detailed understanding of market trends and potential future price movements. This indicator utilizes multiple Simple Moving Averages (SMAs) and forecasting techniques to enhance decision-making processes.
Simple Moving Averages (SMAs):
Short MA (20-period): This moving average is highly responsive to price changes, making it ideal for capturing short-term trends. It helps traders identify quick market shifts and potential entry or exit points.
Mid MA (50-period): This average strikes a balance between short- and long-term trends, offering insights into the market's intermediate direction. It aids in confirming the sustainability of short-term trends.
Long MA (100-period): By smoothing out price data over a longer period, this moving average is useful for identifying long-term trends and filtering out short-term volatility.
Very Long MA (200-period): Often considered a critical indicator for determining the overall market trend, this average helps confirm the direction and strength of long-term movements.
Forecasting:
Flat Forecast: This approach assumes that prices will remain constant in the near future, which is particularly useful in markets trading sideways without a clear trend direction.
Linear Regression Forecast: This method uses historical data to project future price movements, offering a dynamic forecast based on existing trends. It helps traders anticipate potential price changes and plan their strategies accordingly.
Advantages:
Comprehensive Trend Analysis: By incorporating four different SMAs, the indicator provides a layered view of market trends across various timeframes. This enables traders to identify potential trend reversals and continuations with greater accuracy.
Predictive Insights: The forecasting feature offers traders a forward-looking perspective, enabling them to anticipate market movements and adjust their trading strategies proactively. This can be especially advantageous in volatile markets.
Customization: The MAMA indicator is highly customizable, allowing traders to adjust parameters such as the source of price data and the inclusion of the current unclosed candle. This flexibility ensures that the indicator can be tailored to fit different trading styles and market conditions.
Visual Clarity: The use of distinct colors for each SMA and their forecasts enhances visual interpretation, making it easier for traders to quickly assess market conditions and make informed decisions. The inclusion of a legend further aids in distinguishing between the different moving averages and their respective forecasts.
How to Use:
Trend Confirmation: Use the alignment of the SMAs to confirm market trends. For example, when the Short MA crosses above the Mid and Long MAs, it may indicate a bullish trend, while the opposite could suggest a bearish trend.
Entry and Exit Points: Look for crossovers between the SMAs as potential signals for entering or exiting trades. The forecasts can help in timing these decisions by providing an expectation of future price movements.
Risk Management: Utilize the Very Long MA to set stop-loss and take-profit levels, as it reflects the long-term trend and can help in avoiding trades against the prevailing market direction.
The MAMA indicator is intended to support technical analysis and should not be used as the sole basis for making trading decisions. Financial markets are inherently uncertain, and past performance does not guarantee future results. Traders should use this tool in conjunction with other analytical methods and consider their risk tolerance and investment objectives. It is advisable to conduct thorough research and consult with a financial advisor before making significant trading decisions. Always be aware of the risks involved in trading and invest only what you can afford to lose.
Ultra High/LowThe Ultra High/Low script helps traders track key price levels by automatically marking significant highs and lows on a chart, highlighting potential reversal points for future trading decisions.
Introduction
The Ultra High/Low script identifies and marks significant highs and lows on a trading chart. These are specific points where the price reached a peak or bottomed out before reversing. The script draws lines at these levels, which can be extended, and it also labels the exact price at these points. This makes it easy for traders to see where the price has changed direction previously, helping them make more informed trading decisions.
Detailed Description
In more detail, the Ultra High/Low script is designed using Pine Script™, a programming language used for creating custom indicators and strategies on the TradingView platform. Here's how it works:
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Detection of Pivot Highs and Lows
The script identifies "pivot highs" and "pivot lows." These are points on the chart where the price reached a local maximum or minimum, surrounded by lower highs (for pivot highs) or higher lows (for pivot lows).
The user can customize how many bars to the left and right of the high or low the script should consider to confirm a pivot (Length argument in the settings).
The script uses Pine Script functions for pivot detection. ta.pivothigh() and ta.pivotlow() .
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Drawing Lines and Labels
Once a pivot is identified, the script draws a dashed line from the pivot point to the current price bar. This line helps visualize where significant price reversals have occurred.
The script also adds a label next to these lines showing the exact price of the pivot point. This label also shows "PDH" (Previous Day High) or "PDL" (Previous Day Low) if the pivot is PDH or PDL. Same for "PWH" (Previous Week High) and "PWL" (Previous Week Low).
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Purging and Extending Lines
If the price crosses a pivot line after it has been drawn, the script can either delete the old line (purged line) or keep it and add additional indicators to show that the line has been liquidated.
The script also has options to extend the lines into the right.
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Custom Inputs
The script offers several customizable options, like the color of the lines and labels, whether to show the exact price or not, and whether to extend the lines. This allows traders to tailor the indicator to their specific needs and preferences.
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Overall, the Ultra High/Low script is a powerful visual aid for identifying critical price levels that may influence future price movements, making it easier for traders to make decisions based on historical price behavior.
