Sunil BB Blast Heikin Ashi StrategySunil BB Blast Heikin Ashi Strategy
The Sunil BB Blast Heikin Ashi Strategy is a trend-following trading strategy that combines Bollinger Bands with Heikin-Ashi candles for precise market entries and exits. It aims to capitalize on price volatility while ensuring controlled risk through dynamic stop-loss and take-profit levels based on a user-defined Risk-to-Reward Ratio (RRR).
Key Features:
Trading Window:
The strategy operates within a user-defined time window (e.g., from 09:20 to 15:00) to align with market hours or other preferred trading sessions.
Trade Direction:
Users can select between Long Only, Short Only, or Long/Short trade directions, allowing flexibility depending on market conditions.
Bollinger Bands:
Bollinger Bands are used to identify potential breakout or breakdown zones. The strategy enters trades when price breaks through the upper or lower Bollinger Band, indicating a possible trend continuation.
Heikin-Ashi Candles:
Heikin-Ashi candles help smooth price action and filter out market noise. The strategy uses these candles to confirm trend direction and improve entry accuracy.
Risk Management (Risk-to-Reward Ratio):
The strategy automatically adjusts the take-profit (TP) level and stop-loss (SL) based on the selected Risk-to-Reward Ratio (RRR). This ensures that trades are risk-managed effectively.
Automated Alerts and Webhooks:
The strategy includes automated alerts for trade entries and exits. Users can set up JSON webhooks for external execution or trading automation.
Active Position Tracking:
The strategy tracks whether there is an active position (long or short) and only exits when price hits the pre-defined SL or TP levels.
Exit Conditions:
The strategy exits positions when either the take-profit (TP) or stop-loss (SL) levels are hit, ensuring risk management is adhered to.
Default Settings:
Trading Window:
09:20-15:00
This setting confines the strategy to the specified hours, ensuring trading only occurs during active market hours.
Strategy Direction:
Default: Long/Short
This allows for both long and short trades depending on market conditions. You can select "Long Only" or "Short Only" if you prefer to trade in one direction.
Bollinger Band Length (bbLength):
Default: 19
Length of the moving average used to calculate the Bollinger Bands.
Bollinger Band Multiplier (bbMultiplier):
Default: 2.0
Multiplier used to calculate the upper and lower bands. A higher multiplier increases the width of the bands, leading to fewer but more significant trades.
Take Profit Multiplier (tpMultiplier):
Default: 2.0
Multiplier used to determine the take-profit level based on the calculated stop-loss. This ensures that the profit target aligns with the selected Risk-to-Reward Ratio.
Risk-to-Reward Ratio (RRR):
Default: 1.0
The ratio used to calculate the take-profit relative to the stop-loss. A higher RRR means larger profit targets.
Trade Automation (JSON Webhooks):
Allows for integration with external systems for automated execution:
Long Entry JSON: Customizable entry condition for long positions.
Long Exit JSON: Customizable exit condition for long positions.
Short Entry JSON: Customizable entry condition for short positions.
Short Exit JSON: Customizable exit condition for short positions.
Entry Logic:
Long Entry:
The strategy enters a long position when:
The Heikin-Ashi candle shows a bullish trend (green close > open).
The price is above the upper Bollinger Band, signaling a breakout.
The previous candle also closed higher than it opened.
Short Entry:
The strategy enters a short position when:
The Heikin-Ashi candle shows a bearish trend (red close < open).
The price is below the lower Bollinger Band, signaling a breakdown.
The previous candle also closed lower than it opened.
Exit Logic:
Take-Profit (TP):
The take-profit level is calculated as a multiple of the distance between the entry price and the stop-loss level, determined by the selected Risk-to-Reward Ratio (RRR).
Stop-Loss (SL):
The stop-loss is placed at the opposite Bollinger Band level (lower for long positions, upper for short positions).
Exit Trigger:
The strategy exits a trade when either the take-profit or stop-loss level is hit.
Plotting and Visuals:
The Heikin-Ashi candles are displayed on the chart, with green candles for uptrends and red candles for downtrends.
Bollinger Bands (upper, lower, and basis) are plotted for visual reference.
Entry points for long and short trades are marked with green and red labels below and above bars, respectively.
Strategy Alerts:
Alerts are triggered when:
A long entry condition is met.
A short entry condition is met.
A trade exits (either via take-profit or stop-loss).
These alerts can be used to trigger notifications or webhook events for automated trading systems.
Notes:
The strategy is designed for use on intraday charts but can be applied to any timeframe.
It is highly customizable, allowing for tailored risk management and trading windows.
The Sunil BB Blast Heikin Ashi Strategy combines two powerful technical analysis tools (Bollinger Bands and Heikin-Ashi candles) with strong risk management, making it suitable for both beginners and experienced traders.
Feebacks are welcome from the users.
Volatilität
Advanced Options Trading Indicator: Buy & Sell Signal Generator This powerful custom indicator combines the Relative Strength Index (RSI) and Moving Average (MA) to help traders identify optimal entry and exit points in the options market. The indicator generates real-time buy and sell signals based on RSI crossovers and price positioning relative to the moving average, providing actionable insights for traders seeking to make informed decisions. Additionally, it calculates potential call and put option strike prices with a buffer for added flexibility and precision, ensuring a well-rounded approach to options trading.
Machine Learning Price Target Prediction Signals [AlgoAlpha]Introducing the Machine Learning Price Target Predictions, a cutting-edge trading tool that leverages kernel regression to provide accurate price targets and enhance your trading strategy. This indicator combines trend-based signals with advanced machine learning techniques, offering predictive insights into potential price movements. Perfect for traders looking to make data-driven decisions with confidence.
What is Kernel Regression and How It Works
Kernel regression is a non-parametric machine learning technique that estimates the relationship between variables by weighting data points based on their similarity to a given input. The similarity is determined using a kernel function, such as the Gaussian (RBF) kernel, which assigns higher weights to closer data points and progressively lower weights to farther ones. This allows the model to make smooth and adaptive predictions, balancing recent data and historical trends.
Key Features
🎯 Predictive Price Targets : Uses kernel regression to estimate the magnitude of price movements.
📈 Dynamic Trend Analysis : Multiple trend detection methods, including EMA crossovers, Hull Moving Average, and SuperTrend.
🔧 Customizable Settings : Adjust bandwidth for kernel regression and tweak trend indicator parameters to suit your strategy.
📊 Visual Trade Levels : Displays take-profit and stop-loss levels directly on the chart with customizable colors.
📋 Performance Metrics : Real-time win rate, recommended risk-reward ratio, and training data size displayed in an on-chart table.
🔔 Alerts : Get notified for new trends, take-profit hits, and stop-loss triggers.
How to Use
🛠 Add the Indicator : Add it to your favorites and apply it to your chart. Configure the trend detection method (SuperTrend, HMA, or EMA crossover) and other parameters based on your preferences.
📊 Analyze Predictions : Observe the predicted move size, recommended risk-reward ratio, and trend direction. Use the displayed levels for trade planning.
🔔 Set Alerts : Enable alerts for trend signals, take-profit hits, or stop-loss triggers to stay informed without constant monitoring.
How It Works
The indicator calculates features such as price volatility, relative strength, and trend signals, which are stored during training periods. When a trend change is detected, the kernel regression model predicts the likely price move based on these features. Predictions are smoothed using the specified bandwidth to avoid overfitting while ensuring timely responses to feature changes. Visualized take-profit and stop-loss levels help traders optimize risk management. Real-time metrics like win rate and recommended risk-reward ratios provide actionable insights for decision-making.
Optimized Engulfing StrategyOptimized Engulfing Strategy
The Optimized Engulfing Strategy is a trend-following system designed to capitalize on bullish and bearish engulfing patterns in the market. It uses a combination of price action, trend direction, and volatility-based risk management to execute high-probability trades.
Key Components:
Bullish Engulfing Pattern:
A bullish engulfing candle is identified when:
The current candle closes above its open (bullish).
The previous candle closes below its open (bearish).
The current candle's close is higher than the previous candle's open.
The current candle's open is lower than the previous candle's close.
This pattern signals potential bullish momentum.
Bearish Engulfing Pattern:
A bearish engulfing candle is identified when:
The current candle closes below its open (bearish).
The previous candle closes above its open (bullish).
The current candle's close is lower than the previous candle's open.
The current candle's open is higher than the previous candle's close.
This pattern signals potential bearish momentum.
Trend Confirmation:
Trades are only taken in the direction of the trend:
Buy: When the 50-period SMA (simple moving average) is above the 200-period SMA, indicating an uptrend.
Sell: When the 50-period SMA is below the 200-period SMA, indicating a downtrend.
Risk Management:
Stop Loss: Placed below the low of the engulfing candle (for buys) or above the high (for sells), with an additional buffer based on the ATR (Average True Range) multiplied by a user-defined factor (default: 1.5).
Take Profit: Calculated using a fixed risk-to-reward ratio (default: 1:2), ensuring a potential reward that is double the risk.
Session Filtering:
Trades can be limited to specific trading hours using a customizable session filter (default: 24 hours).
Trade Execution:
Separate logic is implemented for buy and sell trades, allowing independent toggling of long or short positions via user inputs.
Visualization:
Bullish and bearish engulfing candles are highlighted on the chart for clarity.
The ATR value is displayed in the top-right corner of the chart for reference.
How It Works:
Identify a bullish or bearish engulfing pattern.
Confirm the direction of the trend using the 50 SMA and 200 SMA.
Ensure the market is within the allowed session filter (e.g., London or New York sessions).
Enter a trade if all conditions are met:
Long trades for bullish engulfing patterns in an uptrend.
Short trades for bearish engulfing patterns in a downtrend.
Manage the trade using a stop loss and take profit based on ATR and the risk-reward ratio.
ADX (levels)This Pine Script indicator calculates and displays the Average Directional Index (ADX) along with the DI+ and DI- lines to help identify the strength and direction of a trend. The script is designed for Pine Script v6 and includes customizable settings for a more tailored analysis.
Features:
ADX Calculation:
The ADX measures the strength of a trend without indicating its direction.
It uses a smoothing method for more reliable trend strength detection.
DI+ and DI- Lines (Optional):
The DI+ (Directional Index Plus) and DI- (Directional Index Minus) help determine the direction of the trend:
DI+ indicates upward movement.
DI- indicates downward movement.
These lines are disabled by default but can be enabled via input settings.
Customizable Threshold:
A horizontal line (hline) is plotted at a user-defined threshold level (default: 20) to highlight significant ADX values that indicate a strong trend.
Slope Analysis:
The slope of the ADX is analyzed to classify the trend into:
Strong Trend: Slope is higher than a defined "medium" threshold.
Moderate Trend: Slope falls between "weak" and "medium" thresholds.
Weak Trend: Slope is positive but below the "weak" threshold.
A background color changes dynamically to reflect the strength of the trend:
Green (light or dark) indicates trend strength levels.
Custom Colors:
ADX color is customizable (default: pink #e91e63).
Background colors for trend strength can also be adjusted.
Independent Plot Window:
The indicator is displayed in a separate window below the price chart, making it easier to analyze trend strength without cluttering the main price chart.
Parameters:
ADX Period: Defines the lookback period for calculating the ADX (default: 14).
Threshold (hline): A horizontal line value to differentiate strong trends (default: 20).
Slope Thresholds: Adjustable thresholds for weak, moderate, and strong trend slopes.
Enable DI+ and DI-: Boolean options to display or hide the DI+ and DI- lines.
Colors: Customizable colors for ADX, background gradients, and other elements.
How to Use:
Identify Trend Strength:
Use the ADX value to determine the strength of a trend:
Below 20: Weak trend.
Above 20: Strong trend.
Analyze Trend Direction:
Enable DI+ and DI- to check whether the trend is upward (DI+ > DI-) or downward (DI- > DI+).
Dynamic Slope Detection:
Use the background color as a quick visual cue to assess trend strength changes.
This indicator is ideal for traders who want to measure trend strength and direction dynamically while maintaining a clean and organized chart layout.
Adaptive Fourier Transform Supertrend [QuantAlgo]Discover a brand new way to analyze trend with Adaptive Fourier Transform Supertrend by QuantAlgo , an innovative technical indicator that combines the power of Fourier analysis with dynamic Supertrend methodology. In essence, it utilizes the frequency domain mathematics and the adaptive volatility control technique to transform complex wave patterns into clear and high probability signals—ideal for both sophisticated traders seeking mathematical precision and investors who appreciate robust trend confirmation!
🟢 Core Architecture
At its core, this indicator employs an adaptive Fourier Transform framework with dynamic volatility-controlled Supertrend bands. It utilizes multiple harmonic components that let you fine-tune how market frequencies influence trend detection. By combining wave analysis with adaptive volatility bands, the indicator creates a sophisticated yet clear framework for trend identification that dynamically adjusts to changing market conditions.
🟢 Technical Foundation
The indicator builds on three innovative components:
Fourier Wave Analysis: Decomposes price action into primary and harmonic components for precise trend detection
Adaptive Volatility Control: Dynamically adjusts Supertrend bands using combined ATR and standard deviation
Harmonic Integration: Merges multiple frequency components with decreasing weights for comprehensive trend analysis
🟢 Key Features & Signals
The Adaptive Fourier Transform Supertrend transforms complex wave calculations into clear visual signals with:
Dynamic trend bands that adapt to market volatility
Sophisticated cloud-fill visualization system
Strategic L/S markers at key trend reversals
Customizable bar coloring based on trend direction
Comprehensive alert system for trend shifts
🟢 Practical Usage Tips
Here's how you can get the most out of the Adaptive Fourier Transform Supertrend :
1/ Setup:
Add the indicator to your favorites, then apply it to your chart ⭐️
Start with close price as your base source
Use standard Fourier period (14) for balanced wave detection
Begin with default harmonic weight (0.5) for balanced sensitivity
Start with standard Supertrend multiplier (2.0) for reliable band width
2/ Signal Interpretation:
Monitor trend band crossovers for potential signals
Watch for convergence of price with Fourier trend
Use L/S markers for trade entry points
Monitor bar colors for trend confirmation
Configure alerts for significant trend reversals
🟢 Pro Tips
Fine-tune Fourier parameters for optimal sensitivity:
→ Lower Base Period (8-12) for more reactive analysis
→ Higher Base Period (15-30) to filter out noise
→ Adjust Harmonic Weight (0.3-0.7) to control shorter trend influence
Customize Supertrend settings:
→ Lower multiplier (1.5-2.0) for tighter bands
→ Higher multiplier (2.0-3.0) for wider bands
→ Adjust ATR length based on market volatility
Strategy Enhancement:
→ Compare signals across multiple timeframes
→ Combine with volume analysis
→ Use with support/resistance levels
→ Integrate with other momentum indicators
India VIXThe VIX chart represents the Volatility Index, commonly referred to as the "Fear Gauge" of the stock market. It measures the market's expectations of future volatility over the next 30 days, based on the implied volatility of NSE index options. The VIX is often used as an indicator of investor sentiment, reflecting the level of fear or uncertainty in the market.
Here’s a breakdown of what you might observe on a typical VIX chart:
VIX Value: The y-axis typically represents the VIX index value, with higher values indicating higher levels of expected market volatility (more fear or uncertainty), and lower values signaling calm or stable market conditions.
VIX Spikes: Large spikes in the VIX often correspond to market downturns or periods of heightened uncertainty, such as during financial crises or major geopolitical events. A high VIX is often associated with a drop in the stock market.
VIX Drops: A decline in the VIX indicates a reduction in expected market volatility, usually linked with periods of market calm or rising stock prices.
Trend Analysis: Technical traders might use moving averages or other indicators on the VIX chart to assess the potential for future market movements.
Inverse Relationship with the Stock Market: Typically, there is an inverse correlation between the VIX and the stock market. When stocks fall sharply, volatility increases, and the VIX tends to rise. Conversely, when the stock market rallies or remains stable, the VIX tends to fall.
A typical interpretation would be that when the VIX is low, the market is relatively stable, and when the VIX is high, the market is perceived to be uncertain or volatile.
VWAP Fibonacci Bands (Zeiierman)█ Overview
The VWAP Fibonacci Bands is a sophisticated yet user-friendly indicator designed to assist traders in visualizing market trends, volatility, and potential support/resistance levels. Developed by Zeiierman, this tool integrates the MIDAS (Market Interpretation Data Analysis System) methodology with Standard Deviation Bands and user-defined Fibonacci levels to provide a comprehensive market analysis framework.
This indicator is built for traders who want a dynamic and customizable approach to understanding market movements, offering features that adapt to varying market conditions. Whether you're a scalper, swing trader, or long-term investor.
█ How It Works
⚪ Anchor Point System
The indicator begins its calculations based on an anchor point, which can be set to:
A specific date for historical analysis or alignment with significant market events.
A timeframe-based reset, dynamically restarting calculations at the beginning of each selected period (e.g., daily, weekly, or monthly).
This dual-anchor method ensures flexibility, allowing the indicator to align with various trading strategies.
⚪ MIDAS Calculation
The MIDAS calculation is central to this indicator. It uses cumulative price and volume data to compute a volume-weighted average price (VWAP), offering a trendline that reflects the true value weighted by trading activity.
⚪ Standard Deviation Bands
The upper and lower bands are calculated using the standard deviation of price movements around the MIDAS line.
⚪ Fibonacci Levels
User-defined Fibonacci ratios are used to plot additional support and resistance levels between the bands. These levels provide visual cues for potential price reversals or trend continuations.
█ How to Use
⚪ Trend Identification
Uptrend: The price remains above the MIDAS line.
Downtrend: The price stays below the MIDAS line and aligns with the lower bands.
⚪ Support and Resistance
The upper and lower bands act as support and resistance levels.
Fibonacci levels provide intermediate zones for potential price reversals.
⚪ Volatility Analysis
Wider bands indicate periods of high volatility.
Narrower bands suggest low-volatility conditions, often preceding breakouts.
⚪ Overbought/Oversold Conditions
Look for the price beyond the upper or lower bands to identify extreme conditions.
█ Settings
Set Anchor Method
Anchor Method: Choose between Timeframe or Date to define the starting point of calculations.
Anchor Timeframe: For Timeframe mode, specify the interval (e.g., Daily, Weekly).
Anchor Date: For Date mode, set the exact starting date for historical alignment.
Set Std Dev Multiplier
Controls the width of the bands:
Higher values widen the bands, filtering out minor fluctuations.
Lower values tighten the bands for more responsive analysis.
Set Fibonacci Levels
Define custom Fibonacci ratios (e.g., 0.236, 0.382) to plot intermediate levels between the bands.
█ Tips for Fine-Tuning
⚪ For Trend Trading:
Use higher Std Dev Multipliers to focus on long-term trends and avoid noise. Adjust Anchor Timeframe to Weekly or Monthly for broader trend analysis.
⚪ For Reversal Trading:
Tighten the bands with a lower Std Dev Multiplier.
Use shorter anchor timeframes for intraday reversals (e.g., Hourly).
⚪ For Volatile Markets:
Increase the Std Dev Multiplier to accommodate wider price swings.
⚪ For Quiet Markets:
Decrease the Std Dev Multiplier to highlight smaller fluctuations.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Risk-Adjusted Trend IndicatorThe Risk-Adjusted Trend Indicator is a comprehensive tool designed to evaluate market trends while factoring in risk levels. By combining trend strength, volatility, and dynamic scaling, this indicator provides traders with clear, actionable signals for optimal entries and exits. Its focus on risk-adjusted metrics ensures that signals are both reliable and contextually informed by prevailing market conditions.
Key Features:
1. Exponential Moving Average (EMA):
• The EMA serves as the foundation for trend detection, offering a smoothed representation of price movement over a user-defined period.
• Aids in distinguishing bullish and bearish trends effectively.
2. Average True Range (ATR):
• ATR is used to gauge market volatility, ensuring that the indicator adapts to changing market conditions.
• Facilitates the normalization of trend strength relative to current market volatility.
3. Risk-Adjusted Trend Score:
• Computes the difference between the price and EMA and normalizes it using the ATR to account for risk.
• This metric allows traders to focus on trends with favorable risk-reward ratios, filtering out weak or high-risk setups.
4. Dynamic Scaling:
• Adjusts the risk-adjusted score to fit within the chart’s price range, making the visualization intuitive and easy to interpret.
5. Buy/Sell Signals:
• Buy signals are triggered when the risk-adjusted score crosses above a positive threshold.
• Sell signals are triggered when the score crosses below a negative threshold.
• Signals are plotted directly on the chart with intuitive markers for quick decision-making.
6. Background Color Zones:
• Highlights bullish and bearish trend zones using subtle background shading, enhancing visual clarity.
Reason for Combining These Elements
The Risk-Adjusted Trend Indicator blends elements of trend analysis, volatility measurement, and risk assessment to address a fundamental challenge in trading: identifying high-confidence trades that align with a trader’s risk tolerance. Here’s why these components were chosen and how they work together:
1. EMA (Trend Detection):
• Provides a reliable baseline for trend direction, ensuring that the indicator aligns with the market’s prevailing trend.
2. ATR (Volatility Normalization):
• Adjusts trend strength calculations based on market volatility, allowing the indicator to adapt to varying market conditions and avoid false signals in high-volatility environments.
3. Risk-Adjusted Score:
• By factoring in both trend strength and volatility, this score ensures that only trends with favorable risk-reward dynamics are highlighted.
• This approach minimizes overtrading and reduces exposure to high-risk setups.
4. Dynamic Scaling:
• Ensures that the indicator’s outputs remain visually accessible, regardless of the asset or timeframe being analyzed.
• Enhances usability by aligning the score with price action on the chart.
5. Visual Aids (Signals and Background Zones):
• The inclusion of visual signals and background zones simplifies decision-making, making the tool suitable for both novice and experienced traders.
Simple Trend Strength & MomentumThis indicator will show a combination of Trend Strength, Volatility using an Adaptive Moving Average (AMA), and Market Momentum.
You can use this indicator to identify trends, volatility, and momentum shifts in real-time, making it an excellent tool for both trend-following and breakout strategies.
The three main features of this indicator are:
Adaptive Moving Average (AMA): Tracks the trend direction with a dynamic smoothing factor that adjusts based on market volatility. The AMA line changes color based on trend strength (green for bullish, red for bearish). I manually compute the Adaptive Moving Average (AMA) using a smoothing factor derived from the market's efficiency ratio. I have used fastLength and slowLength to control the responsiveness of the AMA.
Volatility Bands: Plots upper and lower bands around the AMA line, indicating price volatility. These bands dynamically adjust based on ATR, with a color gradient that changes intensity based on market volatility.
Momentum Circles: Positive momentum (ROC above the threshold) is shown as a green circle below the bar, while negative momentum is marked by a red circle above the bar. This makes it easy to spot momentum shifts.
The green dots in the indicator represent positive momentum. Specifically, they are displayed when the Rate of Change (ROC) of the price exceeds a predefined threshold (set as threshold in the input). This indicates that the market is experiencing upward price movement at a rate faster than the defined threshold.
How it works:
Rate of Change (ROC) measures the percentage change in price over a specified period (in this case, 14 periods).
When the ROC is greater than the set threshold (1.5 by default), a green circle (dot) is plotted below the price bar to signal that there is significant positive momentum.
This can be seen as an indicator of bullish momentum, where price is increasing at a relatively fast pace compared to previous periods.
The green dots help you spot when the price is moving upward rapidly, potentially signaling a good time to enter a long position or watch for further price action.
NOTE: It is vice versa for red dots.
Multi-Timeframe Volatility ATR - [by Oberlunar]This script (for now in beta release) is specifically designed for scalping or traders operating on lower timeframes (if you are in a timeframe of one minute wait one minute to collect statistics). Its primary purpose is to provide detailed insights into market volatility by calculating the ATR (Average True Range) and its percentage changes, allowing traders to quickly identify shifts in market conditions.
The ATR is calculated across six user-defined timeframes, which can include very short intervals such as 5 or 15 seconds. This setup enables real-time monitoring of volatility, which is critical for scalping strategies. The script collects a rolling history of the last five ATR values for each timeframe. These historical values are used to calculate percentage changes by comparing the current ATR with the oldest value in the history, offering a clear view of how volatility is evolving over time.
Percentage changes are displayed dynamically in a table, with color-coded feedback to indicate the direction of the change: green for increases, red for decreases, and gray for stability or insufficient data. This visual representation makes it easy to spot whether market volatility is rising or falling at a glance.
By progressively collecting data, the script becomes increasingly effective as more ATR values are accumulated. This functionality is especially useful for traders on lower timeframes, where rapid changes in volatility can signal breakout opportunities or shifts in market dynamics.
Soon I will update personalized ATR parameters, and lookback strategies for statistics.
Choppiness Index (levels)This Pine Script is a Choppiness Index Indicator with gradient visual enhancements. The Choppiness Index is a technical analysis tool that measures the "choppiness" or sideways movement of the market. It ranges from 0 to 100, where higher values indicate a more consolidated or sideways market, and lower values suggest a trending market.
Key Features:
Choppiness Index Calculation:
The script calculates the Choppiness Index based on the Average True Range (ATR) and the highest and lowest prices over a user-defined period (length).
Visual Bands:
Horizontal dashed lines are drawn at levels 55 (Upper Band), 50 (Middle Band), and 45 (Lower Band) to define key levels for interpreting the indicator.
Gradient Fills:
A blue fill is applied between the upper and lower bands (45–55) for visual clarity.
Dynamic gradients are applied to the areas:
Above the Upper Band (55–100): A green gradient fill where the color intensity increases with higher values.
Below the Lower Band (0–45): A red gradient fill where the color intensity increases with lower values.
Offset Option:
The offset input allows users to shift the Choppiness Index plot horizontally for visualization or alignment purposes.
Usage:
This indicator helps traders quickly assess market conditions:
Values above 55 indicate a choppy, non-trending market.
Values below 45 indicate a trending market.
The gradient fills make it easier to spot extreme conditions visually.
Customization:
Users can adjust:
length: The calculation period for the Choppiness Index.
offset: Horizontal shift of the Choppiness Index plot.
The gradient colors (green and red) and transparency levels are customizable in the script.
This enhanced visualization is ideal for traders who want a clear and intuitive representation of market choppiness, combined with visually striking gradient fills for quick analysis of market conditions.
US Treasury Yields ROC1. Motivation and Context
The yield curve, which represents the relationship between bond yields and their maturities, plays a pivotal role in macroeconomic analysis and market forecasting. Changes in the slope or curvature of the yield curve are often indicative of investor expectations about economic growth, inflation, and monetary policy. For example:
• Steepening curves may indicate economic optimism and rising inflation expectations.
• Flattening curves are often associated with slower growth or impending recessions.
Analyzing these dynamics with quantitative tools such as the rate of change (ROC) enables traders and analysts to identify actionable patterns in the market. As highlighted by Gürkaynak, Sack, and Wright (2007), the term structure of interest rates embeds significant economic information, and understanding its movements is crucial for both policy makers and market participants.
2. Methodology
2.1 Input Parameters
The script takes the following key input:
• ROC Period (roc_length): Determines the number of bars over which the rate of change is calculated. This is an adjustable parameter (14 by default), allowing users to adapt the analysis to different timeframes.
2.2 Data Sources
The yields of the US Treasury securities for different maturities are fetched from TradingView using the request.security() function:
• 2-Year Yield (TVC:US02Y)
• 5-Year Yield (TVC:US05Y)
• 10-Year Yield (TVC:US10Y)
• 30-Year Yield (TVC:US30Y)
These yields are central to identifying trends in short-term versus long-term rates.
2.3 Visualization
Plots: The ROC values for each maturity are plotted in distinct colors for clarity:
• 2Y: Blue
• 5Y: Yellow
• 10Y: Green
• 30Y: Red
Background Highlight: The script uses color-coded backgrounds to visualize the identified curve regimes:
• Bull Steepener: Neon Green
• Bear Steepener: Bright Red
• Bull Flattener: Blue
• Bear Flattener: Orange
2.4 Zero Line
A horizontal zero line is included as a reference point, allowing users to easily identify transitions from negative to positive ROC values, which may signal shifts in the yield curve dynamics.
3. Implications for Financial Analysis
By automating the identification of yield curve dynamics, this script aids in:
• Macroeconomic Forecasting:
Steepeners and flatteners are associated with growth expectations and monetary policy changes. For instance, Bernanke and Blinder (1992) emphasize the predictive power of the yield curve for future economic activity.
• Trading Strategies:
Yield curve steepening or flattening can inform bond market strategies, such as long/short duration trades or curve positioning.
4. References
1. Bernanke, B. S., & Blinder, A. S. (1992). “The Federal Funds Rate and the Channels of Monetary Transmission.” American Economic Review, 82(4), 901–921.
2. Gürkaynak, R. S., Sack, B., & Wright, J. H. (2007). “The U.S. Treasury Yield Curve: 1961 to the Present.” Journal of Monetary Economics, 54(8), 2291–2304.
3. TradingView Documentation. “request.security Function.” Retrieved from TradingView.
Multi-Band Comparison (Uptrend)Multi-Band Comparison
Overview:
The Multi-Band Comparison indicator is engineered to reveal critical levels of support and resistance in strong uptrends. In a healthy upward market, the price action will adhere closely to the 95th percentile line (the Upper Quantile Band), effectively “riding” it. This indicator combines a modified Bollinger Band (set at one standard deviation), quantile analysis (95% and 5% levels), and power‑law math to display a dynamic picture of market structure—highlighting a “golden channel” and robust support areas.
Key Components & Calculations:
The Golden Channel: Upper Bollinger Band & Upper Std Dev Band of the Upper Quantile
Upper Bollinger Band:
Calculation:
boll_upper=SMA(close,length)+(boll_mult×stdev)
boll_upper=SMA(close,length)+(boll_mult×stdev) Here, the 20-period SMA is used along with one standard deviation of the close, where the multiplier (boll_mult) is 1.0.
Role in an Uptrend:
In a healthy uptrend, price rides near the 95th percentile line. When price crosses above this Upper Bollinger Band, it confirms strong bullish momentum.
Upper Std Dev Band of the Upper Quantile (95th Percentile) Band:
Calculation:
quant_upper_std_up=quant_upper+stdev
quant_upper_std_up=quant_upper+stdev The Upper Quantile Band, quant_upperquant_upper, is calculated as the 95th percentile of recent price data. Adding one standard deviation creates an extension that accounts for normal volatility around this extreme level.
The Golden Channel:
When the price crosses above the Upper Bollinger Band, the Upper Std Dev Band of the Upper Quantile immediately shifts to gold (yellow) and remains gold until price falls below the Bollinger level. Together, these two lines form the “golden channel”—a visual hallmark of a healthy uptrend where the price reliably hugs the 95th percentile level.
Upper Power‑Law Band
Calculation:
The Upper Power‑Law Band is derived in two steps:
Determine the Extreme Return Factor:
power_upper=Percentile(returns,95%)
power_upper=Percentile(returns,95%) where returns are computed as:
returns=closeclose −1.
returns=close close−1.
Scale the Current Price:
power_upper_band=close×(1+power_upper)
power_upper_band=close×(1+power_upper)
Rationale and Correlation:
By focusing on the upper 5% of returns (reflecting “fat tails”), the Upper Power‑Law Band captures extreme but statistically expected movements. In an uptrend, its value often converges with the Upper Std Dev Band of the Upper Quantile because both measures reflect heightened volatility and extreme price levels. When the Upper Power‑Law Band exceeds the Upper Std Dev Band, it can signal a temporary overextension.
Upper Quantile Band (95% Percentile)
Calculation:
quant_upper=Percentile(price,95%)
quant_upper=Percentile(price,95%) This level represents where 95% of past price data falls below, and in a robust uptrend the price action practically rides this line.
Color Logic:
Its color shifts from a neutral (blackish) tone to a vibrant, bullish hue when the Upper Power‑Law Band crosses above it—signaling extra strength in the trend.
Lower Quantile and Its Support
Lower Quantile Band (5% Percentile):
Calculation:
quant_lower=Percentile(price,5%)
quant_lower=Percentile(price,5%)
Behavior:
In a healthy uptrend, price remains well above the Lower Quantile Band. It turns red only when price touches or crosses it, serving as a warning signal. Under normal conditions it remains bright green, indicating the market is not nearing these extreme lows.
Lower Std Dev Band of the Lower Quantile:
This line is calculated by subtracting one standard deviation from quant_lowerquant_lower and typically serves as absolute support in nearly all conditions (except during gap or near-gap moves). Its consistent role as support provides traders with a robust level to monitor.
How to Use the Indicator:
Golden Channel and Trend Confirmation:
As price rides the Upper Quantile (95th percentile) perfectly in a healthy uptrend, the Upper Bollinger Band (1 stdev above SMA) and the Upper Std Dev Band of the Upper Quantile form a “golden channel” once price crosses above the Bollinger level. When this occurs, the Upper Std Dev Band remains gold until price dips back below the Bollinger Band. This visual cue reinforces trend strength.
Power‑Law Insights:
The Upper Power‑Law Band, which is based on extreme (95th percentile) returns, tends to align with the Upper Std Dev Band. This convergence reinforces that extreme, yet statistically expected, price moves are occurring—indicating that even though the price rides the 95th percentile, it can only stretch so far before a correction or consolidation.
Support Indicators:
Primary and Secondary Support in Uptrends:
The Upper Bollinger Band and the Lower Std Dev Band of the Upper Quantile act as support zones for minor retracements in the uptrend.
Absolute Support:
The Lower Std Dev Band of the Lower Quantile serves as an almost invariable support area under most market conditions.
Conclusion:
The Multi-Band Comparison indicator unifies advanced statistical techniques to offer a clear view of uptrend structure. In a healthy bull market, price action rides the 95th percentile line with precision, and when the Upper Bollinger Band is breached, the corresponding Upper Std Dev Band turns gold to form a “golden channel.” This, combined with the Power‑Law analysis that captures extreme moves, and the robust lower support levels, provides traders with powerful, multi-dimensional insights for managing entries, exits, and risk.
Disclaimer:
Trading involves risk. This indicator is for educational purposes only and does not constitute financial advice. Always perform your own analysis before making trading decisions.
majikal78
Custom Volume Ratio Indicator
The Custom Volume Ratio Indicator is a unique tool designed for traders to analyze price movements in relation to trading volume. This indicator calculates the ratio of the price range (the difference between the highest and lowest prices of a candle) to the volume of that candle. By visualizing this ratio, traders can gain insights into market dynamics and potential price movements.
Key Features:
1. Price Range Calculation: The indicator computes the price range for each candle by subtracting the lowest price from the highest price. This gives traders an understanding of how much price fluctuated during that specific time frame.
2. Volume Measurement: It utilizes the trading volume of each candle, which reflects the number of shares or contracts traded during that period. Volume is a critical factor in confirming trends and reversals in the market.
3. Ratio Visualization: The primary output of the indicator is the ratio of price range to volume. A higher ratio may indicate increased volatility relative to volume, suggesting potential trading opportunities. Conversely, a lower ratio could imply a more stable market environment.
4. Color-Coded Bars: The bars representing the ratio are color-coded based on the candle's closing price relative to its opening price. Green bars indicate bullish candles (where the close is higher than the open), while red bars indicate bearish candles (where the close is lower than the open). This visual cue helps traders quickly assess market sentiment.
5. Background Highlighting: The indicator also features a subtle background color to enhance visibility, making it easier for traders to focus on key areas of interest on the chart.
Use Cases:
• Trend Confirmation: Traders can use the volume ratio to confirm existing trends. A rising ratio alongside increasing volume may suggest a strong bullish trend, while a declining ratio could indicate weakening momentum.
• Volatility Assessment: By analyzing the price range relative to volume, traders can identify periods of high volatility. This information can be crucial for setting stop-loss orders or determining entry points.
• Market Sentiment Analysis: The color-coded bars provide immediate insight into market sentiment, allowing traders to make informed decisions based on recent price action.
Overall, the Custom Volume Ratio Indicator serves as a valuable addition to any trader's toolkit, providing essential insights into market behavior and helping to inform trading strategies.
CandelaCharts - OHLC Volatility Range Map 📝 Overview
Unlock the power of volatility analysis with the OHLC Volatility Range Map!
Volatility reveals the intensity and speed of price movements, often accompanied by manipulative wicks extending in the opposite direction of a candle’s close.
These sharp moves, common in volatile markets, are designed to mislead traders into taking positions against the prevailing trend. Such manipulation signals potential volatility spikes and offers key insights into market dynamics.
By analyzing these patterns, traders can anticipate the candle's distribution phase, where the price expands to new highs or lows during heightened volatility.
This phase provides crucial clues for spotting liquidity draws, retracement opportunities, and potential reversals, making the OHLC Volatility Range Map an indispensable tool for navigating fast-moving markets.
📦 Features
This tool offers a range of powerful features to enhance your trading analysis:
Real-time Data Feed : Stay updated with live candlestick stats, with each new candle updating OHLC data and performing ongoing historical calculations, even on sub-minute timeframes.
User-Friendly Interface : Designed for advanced traders, the intuitive interface allows easy navigation and customization of display settings, offering a personalized experience for data-driven analysis.
⚙️ Settings
Method: Sets the desired calculation algorithm.
Visualization: Controls the display modes.
Current volatility: Display the current-day volatility.
Use NY Midnight Open: Sets the day start
⚡️ Showcase
Here’s a visual showcase of the tool in action, highlighting its key features and capabilities:
Histogram
Barchart
📒 Usage
Here’s how you can use the OHLC Volatility Range Map to enhance your analysis:
Add OHLC Volatility Range Map to your Tradingview chart.
Watch at high-volatility zones that align with your analysis.
Combine this data with other models and insights to strengthen your trading strategy.
Example 1
By following these steps, you'll unlock powerful insights to refine and elevate your trading strategies.
🔹 Notes
Available calculation methods:
Mean
Median
🚨 Alerts
The indicator does not provide any alerts!
⚠️ Disclaimer
These tools are exclusively available on the TradingView platform.
Our charting tools are intended solely for informational and educational purposes and should not be regarded as financial, investment, or trading advice. They are not designed to predict market movements or offer specific recommendations. Users should be aware that past performance is not indicative of future results and should not rely on these tools for financial decisions. By using these charting tools, the purchaser agrees that the seller and creator hold no responsibility for any decisions made based on information provided by the tools. The purchaser assumes full responsibility and liability for any actions taken and their consequences, including potential financial losses or investment outcomes that may result from the use of these products.
By purchasing, the customer acknowledges and accepts that neither the seller nor the creator is liable for any undesired outcomes stemming from the development, sale, or use of these products. Additionally, the purchaser agrees to indemnify the seller from any liability. If invited through the Friends and Family Program, the purchaser understands that any provided discount code applies only to the initial purchase of Candela's subscription. The purchaser is responsible for canceling or requesting cancellation of their subscription if they choose not to continue at the full retail price. In the event the purchaser no longer wishes to use the products, they must unsubscribe from the membership service, if applicable.
We do not offer reimbursements, refunds, or chargebacks. Once these Terms are accepted at the time of purchase, no reimbursements, refunds, or chargebacks will be issued under any circumstances.
By continuing to use these charting tools, the user confirms their understanding and acceptance of these Terms as outlined in this disclaimer.
Systematic Risk Aggregation ModelThe “Systematic Risk Aggregation Model” is a quantitative trading strategy implemented in Pine Script™ designed to assess and visualize market risk by aggregating multiple financial risk factors. This model uses a multi-dimensional scoring approach to quantify systemic risk, incorporating volatility, drawdowns, put/call ratios, tail risk, volume spikes, and the Sharpe ratio. It derives a composite risk score, which is dynamically smoothed and plotted alongside adaptive Bollinger Bands to identify trading opportunities. The strategy’s theoretical framework aligns with modern portfolio theory and risk management literature (Markowitz, 1952; Taleb, 2007).
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Key Components of the Model
1. Volatility as a Risk Proxy
The model calculates the standard deviation of the closing price over a specified period (volatility_length) to quantify market uncertainty. Volatility is normalized to a score between 0 and 100, using its historical minimum and maximum values.
Reference: Volatility has long been regarded as a critical measure of financial risk and uncertainty in capital markets (Hull, 2008).
2. Drawdown Assessment
The drawdown metric captures the relative distance of the current price from the highest price over the specified period (drawdown_length). This is converted into a normalized score to reflect the magnitude of recent losses.
Reference: Drawdown is a key metric in risk management, often used to measure potential downside risk in portfolios (Maginn et al., 2007).
3. Put/Call Ratio as a Sentiment Indicator
The strategy integrates the put/call ratio, sourced from an external symbol, to assess market sentiment. High values often indicate bearish sentiment, while low values suggest bullish sentiment (Whaley, 2000). The score is normalized similarly to other metrics.
4. Tail Risk via Modified Z-Score
Tail risk is approximated using the modified Z-score, which measures the deviation of the closing price from its moving average relative to its standard deviation. This approach captures extreme price movements and potential “black swan” events.
Reference: Taleb (2007) discusses the importance of considering tail risks in financial systems.
5. Volume Spikes as a Proxy for Market Activity
A volume spike is defined as the ratio of current volume to its moving average. This ratio is normalized into a score, reflecting unusual trading activity, which may signal market turning points.
Reference: Volume analysis is a foundational tool in technical analysis and is often linked to price momentum (Murphy, 1999).
6. Sharpe Ratio for Risk-Adjusted Returns
The Sharpe ratio measures the risk-adjusted return of the asset, using the mean log return divided by its standard deviation over the same period. This ratio is transformed into a score, reflecting the attractiveness of returns relative to risk.
Reference: Sharpe (1966) introduced the Sharpe ratio as a standard measure of portfolio performance.
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Composite Risk Score
The composite risk score is calculated as a weighted average of the individual risk factors:
• Volatility: 30%
• Drawdown: 20%
• Put/Call Ratio: 20%
• Tail Risk (Z-Score): 15%
• Volume Spike: 10%
• Sharpe Ratio: 5%
This aggregation captures the multi-dimensional nature of systemic risk and provides a unified measure of market conditions.
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Dynamic Bands with Bollinger Bands
The composite risk score is smoothed using a moving average and bounded by Bollinger Bands (basis ± 2 standard deviations). These bands provide dynamic thresholds for identifying overbought and oversold market conditions:
• Upper Band: Signals overbought conditions, where risk is elevated.
• Lower Band: Indicates oversold conditions, where risk subsides.
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Trading Strategy
The strategy operates on the following rules:
1. Entry Condition: Enter a long position when the risk score crosses above the upper Bollinger Band, indicating elevated market activity.
2. Exit Condition: Close the long position when the risk score drops below the lower Bollinger Band, signaling a reduction in risk.
These conditions are consistent with momentum-based strategies and adaptive risk control.
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Conclusion
This script exemplifies a systematic approach to risk aggregation, leveraging multiple dimensions of financial risk to create a robust trading strategy. By incorporating well-established risk metrics and sentiment indicators, the model offers a comprehensive view of market dynamics. Its adaptive framework makes it versatile for various market conditions, aligning with contemporary advancements in quantitative finance.
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References
1. Hull, J. C. (2008). Options, Futures, and Other Derivatives. Pearson Education.
2. Maginn, J. L., Tuttle, D. L., McLeavey, D. W., & Pinto, J. E. (2007). Managing Investment Portfolios: A Dynamic Process. Wiley.
3. Markowitz, H. (1952). Portfolio Selection. The Journal of Finance, 7(1), 77–91.
4. Murphy, J. J. (1999). Technical Analysis of the Financial Markets. New York Institute of Finance.
5. Sharpe, W. F. (1966). Mutual Fund Performance. The Journal of Business, 39(1), 119–138.
6. Taleb, N. N. (2007). The Black Swan: The Impact of the Highly Improbable. Random House.
7. Whaley, R. E. (2000). The Investor Fear Gauge. The Journal of Portfolio Management, 26(3), 12–17.
Improved Trend Shot | JeffreyTimmermansImproved Trend Shot
The "Improved Trend Shot" is an advanced trend-following tool that integrates cutting-edge features and the principles of John Ehlers’ SuperSmoother Filter to provide traders with more accurate trend detection and better decision-making. This enhanced version includes multiple smoothing types, customizable lengths, dynamic alerts, and a comprehensive dashboard to help traders quickly interpret market conditions.
This script is inspired by "TRW" . However, it is more advanced and includes additional features and options.
Key Features and Improvements
Smoothed Lines and Trend Detection
The core of the Improved Smooth Trend Shot relies on three key lines to capture market momentum:
Fast Line: Highly sensitive to short-term price changes, offering rapid responsiveness to market movements.
Middle Line: Provides a medium-term view of market trends, acting as a more stable reference.
Slow Line: Focuses on long-term trends, offering a broader perspective on market direction.
These three smoothed lines interact dynamically to create a visual color-coded cloud that helps traders easily interpret market conditions:
Green Cloud: Indicates an upward trend when the Fast line is above the Slow line.
Red Cloud: Signals a downward trend when the Fast line is below the Slow line.
The cloud color adjusts based on the relative positioning of the Fast, Middle, and Slow lines, helping traders to identify bullish or bearish trends with ease.
Dynamic Cloud Visualization and Alerts
The cloud and trend lines adapt to market conditions, updating in real-time to reflect changes in trend strength and momentum. Traders can also set up real-time alerts to notify them of important trend shifts, such as:
Fast and Slow Crossovers: Alerts when the Fast line crosses the Slow line.
Middle and Slow Crossovers: Alerts when the Middle line crosses the Slow line.
This makes it easier to capture trading opportunities and respond promptly to market changes.
Enhanced Smoothing Options
Traders can now choose from multiple smoothing types, including:
EMA (Exponential Moving Average)
SMA (Simple Moving Average)
DEMA (Double Exponential Moving Average)
WMA (Weighted Moving Average)
Each smoothing type has different properties, allowing traders to select the best fit for their trading style. The smoothing length can also be customized, offering flexibility in fine-tuning how sensitive or stable the trend lines should be.
Improved Signal Logic and Precision
The signal logic has been optimized for better precision. Now, the system provides more accurate buy and sell alerts based on:
Trend Detection: The color-coded cloud and the relative positions of the Fast, Middle, and Slow lines help visualize whether the trend is bullish or bearish.
Rising and Falling Indicators: The indicator also checks if each line is rising or falling over the last three bars, offering early signals of momentum shifts.
Dashboard Insights
The dashboard provides real-time updates on the positions and movements of the smoothed lines:
Line Positions: Displays the positions of the Fast, Middle, and Slow lines.
Trend Direction: Shows whether each line is rising or falling.
Price Levels: Displays the price levels for each of the smoothed lines, offering clear reference points for market evaluation.
These features help traders better understand the state of the market, offering valuable insights for both trend-following and reversal-based strategies.
Crossovers and Signal Triggers
The Improved Smooth Trend Shot focuses on crossovers between the different smoothed lines as primary trading signals. There are two types of crossovers:
Fast Shots: This occurs when the Fast line crosses the Slow line.
Slow Shots: This occurs when the Middle line crosses the Slow line.
These crossovers serve as key entry or exit points for traders, helping them spot potential trend reversals. The improved logic ensures that crossovers are accurately detected, reducing the chances of false signals.
Customization Options
The Improved Smooth Trend Shot offers a high degree of customization:
Smoothing Length: Adjust the smoothing period to balance between fast responses and stable trends.
Source Selection: Default to the average of high and low prices (hl2), or choose other price sources.
Smoothing Type: Select from EMA, SMA, DEMA, or WMA for personalized trend analysis.
Signal Type: Choose between Fast Shots or Slow Shots based on the type of crossover you want to focus on.
Long, Medium, and Short-Term Applications
Although the default settings are optimized for long-term trend analysis, the Improved Smooth Trend Shot is highly adaptable. By adjusting the smoothing length and selecting different smoothing types, traders can use the tool for:
Short-Term Trading: Focus on fast responses to market shifts using shorter smoothing periods.
Medium-Term Trading: Tailor the settings to capture intermediate trends.
Long-Term Trend Analysis: Use longer smoothing periods for a more stable and comprehensive view of market dynamics.
Advanced ATR Filtering and Alerts
The inclusion of ATR (Average True Range) filtering helps ensure that signals are triggered only when significant price movements occur. This helps reduce noise and false signals, ensuring traders only act on meaningful market shifts.
Conclusion
The Improved Smooth Trend Shot is a powerful and versatile tool that enhances the original SuperSmoother Filter with advanced features like customizable smoothing options, real-time alerts, and an intuitive dashboard. Whether you're a day trader, swing trader, or long-term investor, this enhanced indicator provides a comprehensive and actionable view of market trends.
The combination of enhanced signal accuracy, dynamic trend visualization, and in-depth customization ensures that the Improved Smooth Trend Shot is an indispensable tool for traders across all market conditions.
-Jeffrey
JJ Highlight Time Ranges with First 5 Minutes and LabelsTo effectively use this Pine Script as a day trader , here’s how the various elements can help you manage trades, track time sessions, and monitor price movements:
Key Components for a Day Trader:
1. First 5-Minute Highlight:
- Purpose: Day traders often rely on the first 5 minutes of the trading session to gauge market sentiment, watch for opening price gaps, or plan entries. This script draws a horizontal line at the high or low of the first 5 minutes, which can act as a key level for the rest of the day.
- How to Use: If the price breaks above or below the first 5-minute line, it can signal momentum. You might enter a long position if the price breaks above the first 5-minute high or a short if it breaks below the first 5-minute low.
2. Session Time Highlights:
- Morning Session (9:15–10:30 AM): The market often shows its strongest price action during the first hour of trading. This session is highlighted in yellow. You can use this highlight to focus on the most volatile period, as this is when large institutional moves tend to occur.
- Afternoon Session (12:30–2:55 PM): The blue highlight helps you track the mid-afternoon session, where liquidity may decrease, and price action can sometimes be choppier. Day traders should be more cautious during this period.
- How to Use: By highlighting these key times, you can:
- Focus on key breakouts during the morning session.
- Be more conservative in your trades during the afternoon, as market volatility may drop.
3. Dynamic Labels:
- Top/Bottom Positioning: The script places labels dynamically based on the selected position (Top or Bottom). This allows you to quickly glance at the session's start and identify where you are in terms of time.
- How to Use: Use these labels to remind yourself when major time segments (morning or afternoon) begin. You can adjust your trading strategy depending on the session, e.g., being more aggressive in the morning and more cautious in the afternoon.
Trading Strategy Suggestions:
1. Momentum Trades:
- After the first 5 minutes, use the high/low of that period to set up breakout trades.
- Long Entry: If the price breaks the high of the first 5 minutes (especially if there's a strong trend).
- Short Entry: If the price breaks the low of the first 5 minutes, signaling a potential downtrend.
2. Session-Based Strategy:
- Morning Session (9:15–10:30 AM):
- Look for strong breakout patterns such as support/resistance levels, moving average crossovers, or candlestick patterns (like engulfing candles or pin bars).
- This is a high liquidity period, making it ideal for executing quick trades.
- Afternoon Session (12:30–2:55 PM):
- The market tends to consolidate or show less volatility. Scalping and mean-reversion strategies work better here.
- Avoid chasing big moves unless you see a clear breakout in either direction.
3. Support and Resistance:
- The first 5-minute high/low often acts as a key support or resistance level for the rest of the day. If the price holds above or below this level, it’s an indication of trend continuation.
4. Breakout Confirmation:
- Look for breakouts from the highlighted session time ranges (e.g., 9:15 AM–10:30 AM or 12:30 PM–2:55 PM).
- If a breakout happens during a key time window, combine that with other technical indicators like volume spikes , RSI , or MACD for confirmation.
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Example Day Trader Usage:
1. First 5 Minutes Strategy: After the market opens at 9:15 AM, watch the price action for the first 5 minutes. The high and low of these 5 minutes are critical levels. If the price breaks above the high of the first 5 minutes, it might indicate a strong bullish trend for the day. Conversely, breaking below the low may suggest bearish movement.
2. Morning Session: After the first 5 minutes, focus on the **9:15 AM–10:30 AM** window. During this time, look for breakout setups at key support/resistance levels, especially when paired with high volume or momentum indicators. This is when many institutions make large trades, so price action tends to be more volatile and predictable.
3. Afternoon Session: From 12:30 PM–2:55 PM, the market might experience lower volatility, making it ideal for scalping or range-bound strategies. You could look for reversals or fading strategies if the market becomes too quiet.
Conclusion:
As a day trader, you can use this script to:
- Track and react to key price levels during the first 5 minutes.
- Focus on high volatility in the morning session (9:15–10:30 AM) and **be cautious** during the afternoon.
- Use session-based timing to adjust your strategies based on the time of day.
SV Volatility Indicator BasicThe SV Volatility Indicator Basic in TradingView calculates and visualizes daily and average volatility over specified periods using three lines. Here’s what it does:
1. Daily Volatility Calculation. The indicator computes daily volatility as the percentage difference between the high and low prices relative to the closing price:
2. 30-day Moving Average of Volatility. A simple moving average (SMA) is applied to the daily volatility values over the last 30 days to smooth short-term fluctuations.
3. 90-day Moving Average of Volatility. Similarly, an SMA is calculated over the last 90 days to provide a longer-term view of volatility trends.
4. Visualization:
Three lines are plotted:
Red line: Represents the daily volatility in percentage terms.
Blue line: Displays the 30-day moving average of volatility.
Green line: Shows the 90-day moving average of volatility.
This indicator helps traders analyze market volatility by providing both immediate (daily) and smoothed (30-day and 90-day) measures, aiding in trend identification and risk assessment.
Time-Based VWAP (TVWAP)(TVWAP) Indicator
The Time-Based Volume Weighted Average Price (TVWAP) indicator is a customized version of VWAP designed for intraday trading sessions with defined start and end times. Unlike the traditional VWAP, which calculates the volume-weighted average price over an entire trading day, this indicator allows you to focus on specific time periods, such as ICT kill zones (e.g., London Open, New York Open, Power Hour). It helps crypto scalpers and advanced traders identify price deviations relative to volume during key trading windows.
Key Features:
Custom Time Interval:
You can set the exact start and end times for the VWAP calculation using input settings for hours and minutes (24-hour format).
Ideal for analyzing short, high-liquidity periods.
Dynamic Accumulation of Price and Volume:
The indicator resets at the beginning of the specified session and accumulates price-volume data until the end of the session.
Ensures that the TVWAP reflects the weighted average price specific to the chosen session.
Visual Representation:
The indicator plots the TVWAP line only during the specified time window, providing a clear visual reference for price action during that period.
Outside the session, the TVWAP line is hidden (na).
Use Cases:
ICT Scalp Trading:
Monitor price rebalances or potential liquidity sweeps near TVWAP during important trading sessions.
Mean Reversion Strategies:
Detect pullbacks toward the session’s average price for potential entry points.
Breakout Confirmation:
Confirm price direction relative to TVWAP during kill zones or high-volume times to determine if a breakout is supported by volume.
Inputs:
Start Hour/Minute: The time when the TVWAP calculation starts.
End Hour/Minute: The time when the TVWAP calculation ends.
Technical Explanation:
The indicator uses the timestamp function to create time markers for the session start and end.
During the session, the price-volume (close * volume) is accumulated along with the total volume.
TVWAP is calculated as:
TVWAP = (Sum of (Price × Volume)) ÷ (Sum of Volume)
Once the session ends, the TVWAP resets for the next trading period.
Customization Ideas:
Alerts: Add notifications when the price touches or deviates significantly from TVWAP.
Different Colors: Use different line colors based on upward or downward trends.
Multiple Sessions: Add support for multiple TVWAP lines for different time periods (e.g., London + New York).
Best Range (Day Trading)The indicator is based on a formula very similar to that of the ATR. The average volatility of the last candles (a value adjustable via inputs) is calculated, and this value is then divided (a value adjustable via inputs), providing a specific value in terms of RANGE .
Its use is very straightforward. It was primarily designed for stock indices (Nasdaq & SPX). When used on the DAILY timeframe, it provides the recommended RANGE value for day trading with structural logic.
Its goal is to offer a guiding value for setting the chart to a range-based view that is optimal and as effective as possible in identifying breakouts of specific levels , helping traders avoid false breakouts or misleading structures.
We can also observe a division of levels into quartiles (25, 50, 75, 100, 125...). This helps provide reference ranges, allowing the range to be used with rounded numbers .
For example, on Nasdaq , if the indicator set on DAILY provides a value between 200 and 250, then it is advisable to visualize the chart at 200 RANGE for a more aggressive approach or at 250 RANGE for a more conservative approach.
On SPX , which is less volatile, we use increments of 25. If the indicator gives a value between 25 and 50 , then we use 25 for an aggressive approach and 50 for a conservative approach.
Obviously, this refers to FUTURES and the tick movements of MINI contracts.
Channel Breakout by NatXateThe Channel Breakout by NatXate is a multi-channel technical indicator designed to identify potential breakout opportunities based on a combination of Keltner Channels, Donchian Channels, and Bollinger Bands.
This indicator helps traders pinpoint buy and sell signals by analyzing price behavior around key channel boundaries, while filtering out false signals using volatility and momentum criteria such as the Average True Range (ATR) and Bollinger Bands Width (BBW).
Key Features:
Keltner Channel:
The Keltner Channel is calculated using an Exponential Moving Average (EMA) and ATR to define upper and lower boundaries.
The upper and lower Keltner boundaries serve as potential breakout levels.
Donchian Channel:
The Donchian Channel tracks the highest high and lowest low over a user-defined period.
Price breaking above or below these boundaries indicates a potential long or short opportunity.
Bollinger Bands:
Bollinger Bands use a Simple Moving Average (SMA) and standard deviation to define dynamic support and resistance levels.
The upper and lower Bollinger boundaries provide an additional layer of confirmation for breakouts.
Bollinger Bands Width (BBW) Filter:
Measures the width of the Bollinger Bands, which reflects market volatility.
A minimum BBW threshold (minBBW) ensures signals are only generated during periods of sufficient volatility, helping to avoid false signals in consolidating markets.
ATR Filter:
The ATR is used to measure market volatility.
Only signals with ATR exceeding a user-defined percentage of the current price (atrThresholdPercent) are considered valid.
Buy and Sell Conditions:
Buy Signal:
Price breaks above the upper boundary of any of the three channels (Keltner, Donchian, or Bollinger Bands).
ATR is above its threshold, indicating sufficient volatility.
BBW is above the minBBW threshold.
Sell Signal:
Price breaks below the lower boundary of any of the three channels.
ATR is above its threshold.
BBW is above the minBBW threshold.
Non-Repainting Logic:
Signals are confirmed only after the bar closes (barstate.isconfirmed), preventing repainting and ensuring reliable signal generation.
Visual Signals:
Buy signals are marked with a green "B" label below the bar.
Sell signals are marked with a red "S" label above the bar.
The upper and lower boundaries of the Keltner Channel, Donchian Channel, and Bollinger Bands are plotted for visual clarity.
Alerts:
Separate alerts are available for Buy and Sell signals:
Buy Signal: "Channel Breakout Buy Signal by NatXate detected!"
Sell Signal: "Channel Breakout Sell Signal by NatXate detected!"
Alerts trigger once per bar close, making it suitable for real-time trading or monitoring.
How It Works:
Trend Identification:
The indicator identifies trends based on price breakouts above or below the channel boundaries.
Volatility Filtering:
Both ATR and BBW filters ensure that only high-probability breakout signals are shown, reducing noise in low-volatility environments.
Signal Confirmation:
Signals are confirmed after the bar closes to prevent false positives or premature triggers.
Parameters:
Keltner Channel Parameters:
lengthKC: Period for the Keltner Channel's EMA.
multKC: ATR multiplier for Keltner Channel boundaries.
Donchian Channel Parameters:
lengthDC: Period for calculating the highest high and lowest low.
Bollinger Bands Parameters:
lengthBB: Period for the Bollinger Bands' SMA.
multBB: Standard deviation multiplier for Bollinger Bands boundaries.
ATR Filter:
atrLength: Period for calculating ATR.
atrThresholdPercent: Minimum ATR as a percentage of the price for valid signals.
BBW Filter:
minBBW: Minimum Bollinger Bands Width required for signal generation.
Use Cases:
Breakout Trading:
Detect potential buy and sell opportunities when price breaks key channel boundaries during high volatility.
Trend Following:
Use the indicator to confirm trends and enter trades in the direction of the breakout.
Avoiding Low-Volatility Periods:
The BBW and ATR filters help avoid false signals in consolidating or choppy markets.
Recommended Usage:
Combine this indicator with additional tools such as volume analysis or momentum oscillators (e.g., MACD, RSI) for further confirmation.
Suitable for various timeframes, from intraday to swing trading.
Backtest thoroughly to adjust parameters for the specific market and timeframe you trade.
Dynamic Intensity Transition Oscillator (DITO)The Dynamic Intensity Transition Oscillator (DITO) is a comprehensive indicator designed to identify and visualize the slope of price action normalized by volatility, enabling consistent comparisons across different assets. This indicator calculates and categorizes the intensity of price movement into six states—three positive and three negative—while providing visual cues and alerts for state transitions.
Components and Functionality
1. Slope Calculation
- The slope represents the rate of change in price action over a specified period (Slope Calculation Period).
- It is calculated as the difference between the current price and the simple moving average (SMA) of the price, divided by the length of the period.
2. Normalization Using ATR
- To standardize the slope across assets with different price scales and volatilities, the slope is divided by the Average True Range (ATR).
- The ATR ensures that the slope is comparable across assets with varying price levels and volatility.
3. Intensity Levels
- The normalized slope is categorized into six distinct intensity levels:
High Positive: Strong upward momentum.
Medium Positive: Moderate upward momentum.
Low Positive: Weak upward movement or consolidation.
Low Negative: Weak downward movement or consolidation.
Medium Negative: Moderate downward momentum.
High Negative: Strong downward momentum.
4. Visual Representation
- The oscillator is displayed as a histogram, with each intensity level represented by a unique color:
High Positive: Lime green.
Medium Positive: Aqua.
Low Positive: Blue.
Low Negative: Yellow.
Medium Negative: Purple.
High Negative: Fuchsia.
Threshold levels (Low Intensity, Medium Intensity) are plotted as horizontal dotted lines for visual reference, with separate colors for positive and negative thresholds.
5. Intensity Table
- A dynamic table is displayed on the chart to show the current intensity level.
- The table's text color matches the intensity level color for easy interpretation, and its size and position are customizable.
6. Alerts for State Transitions
- The indicator includes a robust alerting system that triggers when the intensity level transitions from one state to another (e.g., from "Medium Positive" to "High Positive").
- The alert includes both the previous and current states for clarity.
Inputs and Customization
The DITO indicator offers a variety of customizable settings:
Indicator Parameters
Slope Calculation Period: Defines the period over which the slope is calculated.
ATR Calculation Period: Defines the period for the ATR used in normalization.
Low Intensity Threshold: Threshold for categorizing weak momentum.
Medium Intensity Threshold: Threshold for categorizing moderate momentum.
Intensity Table Settings
Table Position: Allows you to position the intensity table anywhere on the chart (e.g., "Bottom Right," "Top Left").
Table Size: Enables customization of table text size (e.g., "Small," "Large").
Use Cases
Trend Identification:
- Quickly assess the strength and direction of price movement with color-coded intensity levels.
Cross-Asset Comparisons:
- Use the normalized slope to compare momentum across different assets, regardless of price scale or volatility.
Dynamic Alerts:
- Receive timely alerts when the intensity transitions, helping you act on significant momentum changes.
Consolidation Detection:
- Identify periods of low intensity, signaling potential reversals or breakout opportunities.
How to Use
- Add the indicator to your chart.
- Configure the input parameters to align with your trading strategy.
Observe:
The Oscillator: Use the color-coded histogram to monitor price action intensity.
The Intensity Table: Track the current intensity level dynamically.
Alerts: Respond to state transitions as notified by the alerts.
Final Notes
The Dynamic Intensity Transition Oscillator (DITO) combines trend strength detection, cross-asset comparability, and real-time alerts to offer traders an insightful tool for analyzing market conditions. Its user-friendly visualization and comprehensive alerting make it suitable for both novice and advanced traders.
Disclaimer: This indicator is for educational purposes and is not financial advice. Always perform your own analysis before making trading decisions.
