RSI (Kernel Optimized) | Flux Charts💎 GENERAL OVERVIEW
Introducing our new KDE Optimized RSI Indicator! This indicator adds a new aspect to the well-known RSI indicator, with the help of the KDE (Kernel Density Estimation) algorithm, estimates the probability of a candlestick will be a pivot or not. For more information about the process, please check the "HOW DOES IT WORK ?" section.
Features of the new KDE Optimized RSI Indicator :
A New Approach To Pivot Detection
Customizable KDE Algorithm
Realtime RSI & KDE Dashboard
Alerts For Possible Pivots
Customizable Visuals
❓ HOW TO INTERPRET THE KDE %
The KDE % is a critical metric that reflects how closely the current RSI aligns with the KDE (Kernel Density Estimation) array. In simple terms, it represents the likelihood that the current candlestick is forming a pivot point based on historical data patterns. a low percentage suggests a lower probability of the current candlestick being a pivot point. In these cases, price action is less likely to reverse, and existing trends may continue. At moderate levels, the possibility of a pivot increases, indicating potential trend shifts or consolidations.Traders should start monitoring closely for confirmation signals. An even higher KDE % suggests a strong likelihood that the current candlestick could form a pivot point, which could lead to a reversal or significant price movement. These points often align with overbought or oversold conditions in traditional RSI analysis, making them key moments for potential trade entry or exit.
📌 HOW DOES IT WORK ?
The RSI (Relative Strength Index) is a widely used oscillator among traders. It outputs a value between 0 - 100 and gives a glimpse about the current momentum of the price action. This indicator then calculates the RSI for each candlesticks, and saves them into an array if the candlestick is a pivot. The low & high pivot RSIs' are inserted into two different arrays. Then the a KDE array is calculated for both of the low & high pivot RSI arrays. Explaining the KDE might be too much for this write-up, but for a brief explanation, here are the steps :
1. Define the necessary options for the KDE function. These are : Bandwidth & Nº Steps, Array Range (Array Max - Array Min)
2. After that, create a density range array. The array has (steps * 2 - 1) elements and they are calculated by (arrMin + i * stepCount), i being the index.
3. Then, define a kernel function. This indicator has 3 different kernel distribution modes : Uniform, Gaussian and Sigmoid
4. Then, define a temporary value for the current element of KDE array.
5. For each element E in the pivot RSI array, add "kernel(densityRange.get(i) - E, 1.0 / bandwidth)" to the temporary value.
6. Add 1.0 / arrSize * to the KDE array.
Then the prefix sum array of the KDE array is calculated. For each candlestick, the index closest to it's RSI value in the KDE array is found using binary search. Then for the low pivot KDE calculation, the sum of KDE values from found index to max index is calculated. For the high pivot KDE, the sum of 0 to found index is used. Then if high or low KDE value is greater than the activation threshold determined in the settings, a bearish or bullish arrow is plotted after bar confirmation respectively. The arrows are drawn as long as the KDE value of current candlestick is greater than the threshold. When the KDE value is out of the threshold, a less transparent arrow is drawn, indicating a possible pivot point.
🚩 UNIQUENESS
This indicator combines RSI & KDE Algorithm to get a foresight of possible pivot points. Pivot points are important entry, confirmation and exit points for traders. But to their nature, they can be only detected after more candlesticks are rendered after them. The purpose of this indicator is to alert the traders of possible pivot points using KDE algorithm right away when they are confirmed. The indicator also has a dashboard for realtime view of the current RSI & Bullish or Bearish KDE value. You can fully customize the KDE algorithm and set up alerts for pivot detection.
⚙️ SETTINGS
1. RSI Settings
RSI Length -> The amount of bars taken into account for RSI calculation.
Source -> The source value for RSI calculation.
2. Pivots
Pivot Lengths -> Pivot lengths for both high & low pivots. For example, if this value is set to 21; 21 bars before AND 21 bars after a candlestick must be higher for a candlestick to be a low pivot.
3. KDE
Activation Threshold -> This setting determines the amount of arrows shown. Higher options will result in more arrows being rendered.
Kernel -> The kernel function as explained in the upper section.
Bandwidth -> The bandwidth variable as explained in the upper section. The smoothness of the KDE function is tied to this setting.
Nº Bins -> The Nº Steps variable as explained in the upper section. It determines the precision of the KDE algorithm.
Entry
Entry Fragger - Strategy
For basic instructions please visit my other script "Entry Fragger".
The Signal Logic is explained there.
v1.4:
- Added advanced backtesting with fully customizable entries.
- Fully automated Buy Signals (profitable).
- Adjustable timeframes for signal logic. (requested)
Every setting affects the accuracy and profitability greatly now, based on settings applied.
The strategy performs best on high timeframes with larger capital and no leverage.
Useless for Forex, but absolutely smashes stocks and crypto on mid to high timeframes.
Please read through my other scripts description.
Set values as preferred and try your assets.
It does NOT work on low timeframes and forex!
Hint: BTC 4H, Custom Timeframe 1h, Moon Mode and Show Sell Signals enabled, R2R: 2.
Range Average Retest Model [LuxAlgo]The Range Average Retest Model tool highlights setups from the range average retest entry model, a model using the retest of the average between two opposite swing points as an entry.
This tool uses long-term volatility coupled with user-defined multipliers to filter out swing areas and set take profit and stop loss levels for all trades.
Key features include:
Draw up to 165 swing areas and their associated trades
Filter out swing areas using Pivot Length , Selection Mode and Threshold parameters
Filter out trades with Maximum Distance and Minimum Distance parameters
Enable or disable swing areas and select default colors
Enable or disable overlapping trades and change the default colors for Take Profit and Stop Loss zones
🔶 USAGE
The "Range Average Retest Model" is an entry model that enters a position when the price retests the average made between two swing points. Users can determine the period of the detected swing points from the "Pivot Length" setting.
The conditions for long or short trades, regardless of whether the swing area is bullish or bearish, are as follows:
Long positions: the current bar close is below the swing area average and the last bar close was above it.
Short positions: the current bar close is above the swing area average price and the last bar close was below it.
Each trade is displayed on the chart with a line connecting it to its swing area highlighting the range average, a green area for the take profit, and a red area for the stop loss.
Both the Take Profit and Stop Loss levels are calculated by applying your own multiplier in the settings panel to the long-term volatility measure, in this case, the average true range over the last 200 bars.
Trades will remain open until they reach either the Stop Loss or Take Profit price levels.
🔹 Filtering Swing Areas
The daily chart of the Nasdaq-100 futures (NQ) with pivot length 2 and bullish selection mode: it only detects bullish swing areas, but they are smaller and more numerous.
Traders can manipulate the behavior of the swing areas from the settings panel.
The Selection mode will filter areas by bias: it will detect bullish areas, bearish areas, or both.
The Threshold parameter is applied to the long-term volatility to filter out areas where the average prices are too close together; the higher the value, the greater the difference between the average prices must be.
🔹 Trades
3-minute chart of the Nasdaq-100 futures (NQ) with pivot length 5, bearish selection mode maximum distance 4, and stop loss 2: many trades detected with very asymmetric risk/reward.
The behavior of the trades is also manipulated from the settings panel.
The maximum and minimum distance parameters specify the number of bars a trade must be away from a swing area.
The Take Profit and Stop Loss parameters are applied to the long-term volatility to obtain their respective price levels.
🔹 Overlapping Trades
Same chart as before, but with overlapping trades: messy, right?
By default the tool does not show overlapping trades, this allows for a cleaner chart.
In the settings panel traders can enable overlapping mode, in which case the tool will show all available trades.
Traders must be aware that the chart can be very crowded.
🔶 SETTINGS
🔹 Swings
Pivot Length: How many bars are used to confirm a swing point. The larger this parameter is, the larger and fewer swing areas will be detected.
Selection Mode: Swing area detection mode, detect only bullish swings, only bearish swings, or both.
Threshold: Swing area comparator. This threshold is multiplied by a measure of volatility (average true range over the last 200 bars), for a new swing area to be detected it must have an average level that is sufficiently distant from the average level of any untouched swing area, this parameter controls that distance.
🔹 Trades
Maximum distance: Maximum distance allowed between a swing area and a trade.
Minimum distance: Minimum distance allowed between a swing area and a trade.
Take profit: The size of the take profit - this threshold is multiplied by a measure of volatility (the average true range over the last 200 bars).
Stop loss: The size of the stop-loss: this threshold is multiplied by a measure of volatility (the average true range over the last 200 bars).
Entry Assistant & News AlertIntention Of This Indicator
This indicator is intended to be used as an assistant in combination with a technical strategy.
This indicator has several functions intended to assist you at entering positions.
This indicator is intended to be used with strategies that place Stop Losses above / below candles, and entries at the BOC ( Break Of The Previous Candle , For Longs it is when price goes above the previous candles high, For Shorts it is when price goes below the previous candles low)
This indicator allows you to enter daily news release times, and it will warn you before and after that news release time ( to help you stay out of trading news )
This indicator Draw / Displays the following
A line below ( for Longs ) / above ( for Shorts ) the current candle, with an additional pip value for extra space ( this displays where to place your Stop Loss )
A label displaying the price of the Stop Loss line, to assist in placing the Stop Loss
A line displaying where the BOC is ( based off of going Long or going Short )
A box that appears when the BOC has occurred ( entry signal )
A line displaying where the news release is going to happen ( only according to your time input settings )
A box that surrounds the news release ( only according to your time input settings )
A table in the bottom right corner that shows you when there is Active News ( only according to your time input settings )
Inputs
Inputs to change the aesthetics ( colours etc. )
Numeric inputs to modify the placement / spacing of the Stop Loss / Entry signal / News
Toggles to activate or deactivate features
Disclaimer
This indicator does not guaranteed to work for every instrument ( always test before use! )
It is not at all intended to be a signal indicator on its own, but rather only to give a signal when used with specific technical strategies that us BOC entries.
This indicator is not guaranteed to be accurate, or error free.
This indicator is not signalling winning entries or high probability entries.
You must manually enter the news time inputs, this indicator does not automatically show you when there is a news release
This is a combination indicator of my Entry Assistant and my News Alert indicator, both can be found and used separately.
Three-Day Rolling PivotThe three-day rolling pivot is another pivot concept,
which may be used by intermediate positions, for several days or even weeks.
It can be utilized in many ways, such as to determine an entry point or trailing stop.
As the name suggests, this pivot is based on the last three days.
I learned this concept of the book "The logical Trader" by Mark Fisher.
Kudos go to him!
My version of the Three-Day Rolling Pivot uses actual data!
And all similar scripts I have found so far calculate future data and don't take into account the original data.
I hope this script will help some people to do some better decisions.
And I am pleased to get some advice to make this script even better!
Future data vs original data
Pine Script v5 Reference Manual:
Merge strategy for the requested data position... This merge strategy can lead to undesirable effect of getting data from "future" on calculation on history. This is unacceptable in backtesting strategies, but can be useful in indicators.
e2e4 on Stack Overflow said:
Pine v1-v2's security() function is using the lookahead parameter by default, which could be modified in v3-v5...
stackoverflow.com
I haven't found a script which put this into account jet.
I leave this option available for people that wanna more speculated data. But it's disabled by default.
Long/Short Example
You can enter Long when the market cross over the upper line (default color is green) and you should put your trailing stop 1-5 ticks below the lower line (default color is red).
The opposite when Shorting, then the market has to cross down the lower line and your trailing stop should be 1-5 ticks above the upper line.
How does this script work:
First it fetches the highest high of ...
yesterday,
the day before yesterday,
and the day before that.
After that the script looks for the highest high of all three.
Next it does the same for previous lowest low.
Last but not least, it fetches the closing price of the last day.
After that it adds all three prices together and divide them by three.
This result in a three day pivot price.
Then it adds the highest high and lowest low of the three last days and divide it by two.
This gives us the second number we need to calculate the differential.
The differential is the gap between the three day pivot price and the second number.
Sometimes the second number is bigger than the three day pivot price so I took that into account too. Other wise the colors plotted would be on the wrong site.
Finally, the script is rounding the numbers to the nearest minimum tick of that security.
VWOP: Volume Weighted & Oscillated PriceWhile playing around with the standard "ta.vwap" I wondered why there was no length input, so I did some research on what the underlying calculation actually is, and did my best to augment it so as to allow for a variable length based on an oscillator value.
Normal VWAP = (Number of Shares Bought x Typical Price) / Total Volume
In my VWOP Calculation, typical price is replaced by selected moving average type or "matype" and then multiplied by the volume.
Then a total value is calculated using math.sum with a length value that changes according to a selected oscillator's value. The total is then divided by
the sum of just volume using the same oscillating length value. Result is then passed through the selected"matype" once more to give the final result.
Indicator designed for use as a entry/exit indicator in conjunction with more traditional moving averages and/or signal filters. Useful for taking volume + an oscillator into account along with price, instead of just the price as with a simple moving average.
[Old] TL with K/K and CustomizationThe old version of Trap Light before the most recent update. In order to facilitate the table functionality that is currently available for Trap Light, I had to make some values that are used in calculations hard-coded. By request, I'm quickly making this version available.
Trap Light
Description
Trap Light is an indicator that uses the K value of the Stochastic RSI to indicate potential long or short entries. It was designed to operate like a traffic stop light that is displayed near the current candle so that you don't have to look away from the candlesticks while trading.
Kriss/Kross is simply a cross over/under strategy that utilizes the 10 EMA and the 50 EMA .
Signals and Available Alerts:
1. Max Sell (Red Sell Label)
When K is equal to 100.00.
This is the strongest sell signal, remember that you only need to make sure that the trend is reversing before you make an entry, because several of these signals can appear in a row if a strong trend hasn't yet reversed.
2. Sell (Red Sell Label)
When K is equal to or greater than 99.50.
A sell signal.
3. Close to Sell (Red Down Arrow)
When K is equal to or greater than 95.00.
A sell signal may be produced soon.
4. Not Ready (Yellow Circle)
When K is less than 95 and greater than 5.00.
This indicates that neither a sell nor buy signal are close to being produced.
5. Close to Buy (Green Up Arrow)
When K is equal to or less than 5.00.
A buy signal may be produced soon.
6. Buy (Green Buy Label)
When K is equal to or less than 0.50 and greater than 0.00.
A buy signal.
7. Max Buy (Green Buy Label)
When K is equal to 0.00.
Strongest buy signal, remember to make sure that the trend is reversing before making an entry.
8. Kriss (Buy)
A buy signal when the 10 EMA (Blue) crosses above the 50 EMA (Yellow). This is also illustrated by the triggering candle being colored blue.
9. Kross (Sell)
A sell signal when the 10 EMA (Blue) crosses below the 50 EMA (Yellow). This is also illustrated by the triggering candle being colored yellow.
Customization of many different options is available, and the code is open-source for your reference, etc.
Remember to do you own due diligence and feel free to leave a comment with questions, etc.
TrapLightTrap Light is built off the stochastic RSI to provide convenience and make your entries while scalping either long/short more straightforward.
Notes/Disclaimer:
This indicator is not guaranteed to work every time. Use it at your own discretion and perform your own due diligence. None of this is financial advice.
The main idea behind this is that when the stochastic RSI reaches such extremes that it often moves in a favorable direction.
K = momentum or the blue line of the stochastic RSI indicator.
Perks:
Don't have to look away from candlesticks and measure stochastic RSI's K level.
Simple visual indication of what to do.
Don't have to stare at your chart all day waiting for things to get exciting.
How to Use:
(Above the current candlestick on any timeframe)
1. When K is greater than or equal to 99.5, it shows a sell signal. This is to indicate a short entry.
2. When K is less than or equal to 0.5, it shows a buy signal. This is to indicate a long entry.
3. If neither the conditions for a short/long entry are present, it shows a circle that is like a traffic light.
Red Light: When K is between 99.5 and 95, a red circle is shown to indicate that a short entry may be available soon.
Yellow Light: When K is between 95 and 5, a yellow circle is shown to indicate that neither a long nor short entry may be available soon.
Green Light: When K is between 5 and 0.5, a green circle is shown to indicate that a long entry may be available soon.
Alerts:
Set an alert on the ticker you trade to notify you when either the green or red light is present so that you have time to prepare to make an entry either long/short.
The Code:
The PineScript is open-source and annotated to explain different parts of the script for ease of understanding.
@Credit to Kingson1 for this strategy and his feedback on its creation/implementation.
Juicy TrendThis script is simple.
It uses EMA and HMA crosses to find entries and exits.
There is an option for sourcing Heikin Ashi based entries/exits.
There is an option for Stop Loss percentage.
It is made for finding Long entries on the 45min chart.
You can optimize the signals by adjusting the moving average lengths.
The default settings are for BTC/USDT 45min.
Suggestion, reduce the Stop Loss percentage for smaller / more volatile assets.
Gain/StopLoss Percentage LinesGain/StopLoss Percentage Lines is a quick way to enter your Entry Price in to a stock and track the percentage of gain or loss at the 5% and 10% markers.
Click on the gear settings icon and type in your entry price. The percentage is defaulted to 5%. You can change this to a different percentage at this screen. Note that whatever number you enter will be doubled for the upper and lower lines. For instance, if you want to set your first red line stop loss and green gain line at 2.5%, your two other upper and lower green and red lines will be at 5%.
However, this will not change the text on the tab marker.
To change the tab text, go in to the Pine Editor and change the green text that says "5% Gain" and "5% Loss" to your new percentages.
Bjorgum MTF MAScope:
Up to 3 MA's can be applied at the users discretion
Choose between 10 different average types including favorites from the Bjorgum series from HEMA to Reversal T3's
Each MA can be independently set
Go Multi-timeframe! Any MA can be set to any timeframe of reference you choose (ex. using 3 different timeframes of higher resolution to your chart reference to establish a multi-time frame trend)
RSI HEATMAP. Use the bar color or the MA color selection toggle to set your color to reference RSI on a gradient. This helps to establish clear visual reference to momentum on top of trend analysis
Assigning RSI bar color to an MA of a higher time frame can allow you to see visual reference of momentum of the greater trend that may be at play.
Example: trying to get short on a 15min while your 1hr and 4hr RSI Heatmap burns deep in oversold.
RSI color can be assigned to the bar color, the MA (1,2 or 3), or both. Alternatively, bar color can be assigned to a more simple rising/ falling MA color and price above/ below the MA for bar color.
ALL MTF FUNCTIONS ARE NON_REPAINTING.
The Idea
The original inspiration behind the script came from an observation of a constant struggle of Pinecoders of both youth or experience to find accurate multi-timeframe indicators that do not repaint, and appear as should on historical bars, while performing reliably in real time. I encourage you to scroll the Pinecoders FAQ on a recent piece explaining the difficulties and caveats of different approaches, but I would like to reference the elimination of the historical bar offset for THIS purpose. MA's are based on closing prices, that is to say they are confirmed and will not change once the bar has closed. There is no need to offset these for historical reference. The purpose of the historical offset is best exemplified, for example, with an intraday strategy involving daily breakouts. Let's entertain going long on a break to a new daily high. We would not know that in real time so we need to reference the previous bars close for BACKTESTING purposes, otherwise we get "lookahead bias". There is no shortage of strategies unintentionally employing this bias out there (I'm sure you have come across them with their unrealistic results).
There is no worry of repainting with the MTF security function included within this script, nor will it offset for something involving lookahead bias. I encourage those that are playing with the code or perhaps writing strategies of their own to borrow the functions within. There is also a function that will return the 10 MA variable selection - yours to keep.
With all that in mind, I wanted a practical script that is easily deployable in everyday trading for the average trader that gives the user a firm grip on their trading steering wheel equipped with the feel of the road. Incorporating several MA's of differing times with the RSI heatmap gives a good visual reference and feel to your trading environment, while offering a level of customization that will fit an individuals personal trading style. The RSI heatmap gradient is per percentage between 30 and 70 and your 2 colors - anything outside of those levels gives you the vibrant bias color
Below I walk through 2 examples of live trades scenarios I made using the mindset the script offers.
The Trade
LONG IZEA
Timeframe: 4hr chart
- 3 Tilson MA's of varying length are deployed at varying intraday time frames
- A bullish pattern in an uptrend offers a possible trade allowing entry from a low risk point from the pattern low
- See the chart for notes and observations using the script
- Notice how the heatmap brightens up as price extends far away from the averages - your risk has elevated for a new position
- Notice the heatmap cool off while price action consolidates sideways
The Trade
SHORT BTCUSDT
Timeframe: 4hr chart
- 3 EMAs are employed - same length (50), with 3 successive timeframe resolutions
- A downtrend is formed with a sharp move to stack the EMAs into layers
- A pull back opportunity presents itself in bearish consolidation
- Notice a Doji star at resistance establishing a swing high as RSI cools off into the EMA dynamic resistance for entry
- An '"equal legs" measured move can be used for a trade target with a stop out above the swing high.
- Again, take note of distance from EMA's, the heatmap in combination with trend development surrounding the MA's
These were just two ideas to show you an example of how to implement some strategy into your trading and to get some interesting use from the indicator. Hope you enjoyed the read and happy trading.
Boom Hunter - Entry Point Screener AlertsStock screener for Boom Hunter and Boom Hunter Pro entry zones. This script will screen 18 different stocks for entry zones.
1. Enter in any ticker ID's from charts you wish to scan in the settings.
2. Go to desired timeframe.
3. Click add alert button at top toolbar.
4. Select Boom Screener indicator, input alert notification settings and/or change alert name and click create.
The script will then scan the stocks and alert you of any entry zones from the timeframe you set the alerts.
A new alert needs to be created for each timeframe you wish to screen.
Boom Hunter ProBoom Hunter Pro is the ultimate indicator for targeting perfect long entries and epic shorts. Boom Hunter comes with a super fast oscillator that uses Ehlers Early Onset Trend (EOT). This is the Center Of Gravity Oscillator (COG) with a super smoothing filter and a roofing filter. This indicator is tuned for 1 hour charts but can be used on any time frame.
Colored bars can be turned on to assist in finding an entry. Purple signifies a drag and potential dump.
Fibonacci lines can be turned on to track price action and find entries/exit.
This indicator follows the same rules as COG. For more information please see my COG HOWTO here:
Relative Volume Screener AlertsThis script will screen 12 different stocks and current chart (13 in total) for entry points from my relative volume indicator.
1. Enter in any ticker ID's from charts you wish to scan in the settings.
2. Go to desired timeframe.
3. Click add alert button at top toolbar.
4. Select RVOL Screener Alerts indicator, input alert notification settings and/or change alert name and click create.
The script will then scan the stocks and alert you of any entry points from the timeframe you set the alerts.
A new alert needs to be created for each timeframe you wish to screen.
You can find my relative volume indicator here:
Boom HunterEvery "boom" begins with a pullback... This indicator will help traders find bottoms and perfect entries into a pump. It combines two indicators, Dr. John Ehlers Early Onset Trend (EOT) and the infamous Stochastic RSI. The indicator features a built in dump and dip detector which usually picks up signals a few candles before it happens. The blue wave (EOT) shows trend, when waves travel up so does the price. Likewise for the opposite. Low points are revealed when EOT bottoms out and flat lines. Traders can then use the Stochastic RSI crossover to enter a trade. As the EOT lines get closer together there is more movement in price action, so as they get wider traders can expect sideways action. This indicator works on all timeframes but has had excellent results on hourly chart.
Entry zones are marked with a green dot at top of indicator. This signals a bottom is being formed and traders should look for an entry.
Exit points are marked with a red dot at top of indicator. This signals a peak and great time to exit.
Dips and dumps are indicated in red at bottom of indicator.
Easy Entry/Exit Trend Colors (With Alerts)This is an updated version of user Algokid's script called 'AK MACD BB INDICATOR V 1.00'. You can find that original script here:
I added many alerts along with the Bullish and Bearish alerts when the MACD crosses over the Upperband or crosses down on the Lowerband.
I personally use this indicator with Crypto charts (Bitcoin on a 15min, 1hour, and 4 hour timeframe) as one of many confirmations that it's a good time to enter a trade. This script was made to be easy to follow with the colors of GREEN triangles being a good uptrend or entry confirmation, and RED being a confirmation to sell/short or exit your trade.
It's important to use this indicator in combination with other indicators that can give you more confirmations to enter or exit a trade, and make sure you are on normal candles and not HA or any other candles as you can get wildly inaccurate results.
This script also has the Death & Golden crosses, which is the slow and fast moving averages crossing over each other. I don't use this as an additional confirmation, it's just nice to know where the cross happens.
Stochastic RVIBased on the Stochastic RSI but uses RVI (Relative Volatility Index) as source. Another great tool for finding market lows and entry points. This oscillator is also good for finding accurate diversions.
Entry master RSI pullbackSimply using a single RSI and placing a signal after it crosses the 50 level after being overbought or oversold in the same direction.
CHOP Zone Entry Strategy + DMI/PSAR ExitThis is a Strategy with associated visual indicators and Long/Short and Reverse/Close Position Alerts for the Choppiness Index (CHOP) . It is used to determine if the market is choppy (trading sideways) or not choppy (trading within a trend in either direction). CHOP is not directional, so a DMI script was ported into this strategy to allow for trend confirmation and direction determination; it consists of an Average Directional Index (ADX) , Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) . In addition, a Parabolic SAR is also included to act as a trailing stop during any strong trends.
Development Notes
---------------------------
This indicator, and most of the descriptions below, were derived largely from the TradingView reference manual. Feedback and suggestions for improvement are more than welcome, as well are recommended Input settings and best practices for use.
www.tradingview.com
www.tradingview.com
www.tradingview.com
Recommend using the below DMI and PSAR indicators in conjunction with this script to fully visualize and understand how entry and exit conditions are chosen. Variable inputs should correlate between the scripts for uniformity and visual compatibility.
THANKS to LazyBear and his Momentum Squeeze script for helping me quickly develop a momentum state model for coloring the Chop line by trend.
Strategy Description
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CHOP produces values that determine whether the market is choppy or trending . The closer the value is to 100 , the higher the choppiness levels , while the closer it is to 0 , the stronger the market is trending . Territories for both levels, and their associated upper and lower thresholds, are popularly defined using the Fibonacci Retracements, 61.8 and 38.2.
Basic Use
---------------------------
CHOP is often used to confirm the market condition to help you stay out of sideways markets and only enter when there is movement or imminent explosions. When readings are above the upper threshold, continued sideways movement may be expected, while readings below the lower threshold are typically indicative of a continuing trend. It is also used to anticipate upcoming trendiness changes, with the general belief that extended periods of consolidation (sideways movement) are followed by extended periods of strong, trending, directional movement, and vice versa.
One limitation in this index is that you must be cautious in deciding whether the range or trend will likely continue, or if it will reverse.
Confidence in price action and trend is higher when two or more indicators are in agreement -- while this strategy combines CHOP with both DMI and PSAR, we would still recommend pairing with other indicators to determine entry or exit trade opportunities.
Recommend also choosing 'Once Per Bar Close' when creating alerts.
Inputs
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Strategy Direction - an option to only trade Short, Long, Both, or only in the direction of the Trend (Follow Trend is the Default).
Sensitivity - an incremental variable to test whether the past n candles are in the same trend state before triggering a delayed long or short alert (1 is the Default). Can help filter out noise and reduces active alerts.
Show Chop Index - two visual styles are provided for user preference, a visible Chop line with a background overlay, or a compact column and label only view.
Chop Lookback Period - the time period to be used in calculating CHOP (14 is the Default).
Chop Offset - changing this number will move the CHOP either forwards or backwards relative to the current market (0 is the Default).
Smooth Chop Line and Length - if enabled, the entered time period will be used in calculating a smooth average of the index (Enabled and 4 are the Defaults).
Color Line to Trend Direction - toggles whether the index line is colored to visually depict the current trend direction (Enabled is the Default).
Color Background - toggles the visibility of a background color based on the index state (Enabled is the Default).
Enable DMI Option - if enabled, then entry will be confirmed by and dependent on the ADX Key Level, with any close or reversal confirmed by both ADX and +/-DI to determine whether there is a strong trend present or not (Enabled is the Default).
ADX Smoothing - the time period to be used in calculating the ADX which has a smoothing component (14 is the Default).
DI Length - the time period to be used in calculating the DI (14 is the Default).
ADX Key Level - any trade with the ADX above the key level is a strong indicator that it is trending (23 to 25 is the suggested setting).
Enable PSAR Option - enables trailing stop loss orders (Enabled is the Default).
PSAR Start - the starting value for the Acceleration Force (0.015 is our chosen Default, 0.02 is more common).
PSAR Increment - the increment in which the Acceleration Force will move (0.001 is our chosen Default, 0.02 is more common).
PSAR Max Value - the maximum value of the Acceleration Factor (0.2 is the Default).
Color Candles Option - an option to transpose the CHOP condition levels to the main candle bars. Note that the outer red and green border will still be distinguished by whether each individual candle is bearish or bullish during the specified timeframe.
Note too that if both DMI and PSAR are deselected, then close determinations will default to a CHOP reversal strategy (e.g., close long when below 38.2 and close short when above 61.8). Though if either DMI or PSAR are enabled, then the CHOP reversal for close determination will automatically be disabled.
Indicator Visuals
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For the candle colors, black indicates tight chop (45 to 55), yellow is loose chop (38.2 to 45 and 55 to 61.8), dark purple is trending down (< 38.2), and dark blue is trending up (> 61.8).
The background color has additional shades to differentiate a wider range of more levels…
• < 30 is dark purple
• 30 to 38.2 is purple
• 38.2 to 45 is light purple
• 45 to 55 is black
• 55 to 61.8 is light blue
• 61.8 to 70 is blue
• > 70 is dark blue
Long, Short, Close, and Reverse labels are plotted on the Chop line, which itself can be colored based on the trend. The chop line can also be hidden for a clean and compact, columnar view, which is my preferred option (see example image below).
Visual cues are intended to improve analysis and decrease interpretation time during trading, as well as to aid in understanding the purpose of this strategy and how its inclusion can benefit a comprehensive trading plan.
DMI and Trend Strength
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To analyze trend strength, the focus should be on the ADX line and not the +DI or -DI lines. An ADX reading above 25 indicates a strong trend , while a reading below 20 indicates a weak or non-existent trend . A reading between those two values would be considered indeterminable. Though what is truly a strong trend or a weak trend depends on the financial instrument being examined; historical analysis can assist in determining appropriate values.
DMI exits trade when ADX is below the user selected key level (e.g., default is 25) and when the +/- DI lines cross (e.g., -DI > +DI exits long position and +DI > -DI exits short position).
PSAR and Trailing Stop
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PSAR is a time and price based indicator that excels at measuring direction and duration, though not the actual strength of a trend, which is why we use this in conjunction with DMI. It is also included in this script as a trailing stop option to maximize gains during strong trends and to mitigate any false ADX strengthening signals.
This creates a parabola that is located below the candle during a Bullish trend and above during a Bearish trend. A buy or reversal is signaled when the price crosses above or below the Parabolic SAR.
Long/Short Entry
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1. CHOP must be over 61.8 (long) or under 38.2 (short).
2. If DMI is enabled, then the ADX signal line must be above the user selected Key Level (default is 25).
3. If Sensitivity is selected, then that past candle must meet the criteria in step 1, as well as all the intermediate candles in between.
4. If "Follow Trend" is selected and PSAR is enabled, then a long position can only open when the momentum and PSAR are in an uptrend, or short when both are in a downtrend, to include all intermediate candles if the Sensitivity option is set on a past candle.
Close/Reverse
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1. If DMI is enabled, then a close flag will be raised when the ADX signal drops below the Key Level (of 25), and -DI crosses over +DI (if long), or +DI crosses over -DI (if short).
2. If PSAR is enabled, then a close flag will be raised when the current trend state is opposite the last state.
3. If both DMI and PSAR are disabled, then a close flag will be raised if the Chop line drops under 38.2 (if long) or goes over 61.8 (if short).
4. If a Long or Short Entry is triggered on the same candle as any of the above close flags, then the position will be reversed, else the position will be closed.
Strategy Alerts
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1. Long Entry
2. Short Entry
3. Reverse
4. Close
The provided backtest result is based on a position sizing of 10% equity with 100k initial capital. When testing SPX, disabling the DMI performed the best, but EURUSD performed poorly without it enabled, and TSLA had a small reduction in net profit. Timeframe likewise differed between commodities with TSLA performing best at 30M, SPX at 15M, and EURUSD at 4H. I do not plan on using this as a standalone strategy, but I also was expecting better results with the inclusion of EMI and PSAR to compliment the CHOP. Key elements of this script will likely be included in future, more holistic strategies.
Disclaimer
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Past performance may not be indicative of future results. Due to various factors, including changing market conditions, the strategy may no longer perform as well as in historical backtesting. This post and the script are not intended to provide any financial advice. Trade at your own risk.
No known repainting, though there may be if an offset is introduced in the Inputs. I did my best not to code any other variables that repaint, but cannot fully attest to this fact.
Buy and Hold entry finderHello everyone!
This is a indicator based on the MACD and the distance between the current price and the Exponential moving Average .
The signal gets triggered if the current MACD (with default settings) is under 0 and the Distance from the Ema gets smaller if under ema or gets bigger if over ema . In edition you can set a max distance from the ema .
This indicator was invented for buy and hold strategy s only.
I invented this indicator to find better entrys for my saving plans on the MSCI WORLD AND MSCI EMERGING MARKETS ETF on the 1 day timeframe.
Instead of investing every month, i only invest on the green Arrow Signal.
For example, lets say there is no buy signal for 3 months, then i invest the summary of the three months on the buy signal.
OSCAR Oscillator by GenZai - NNFXOSCAR Oscillator by GenZai
Green line is the Oscar Rough
Red line is the Oscar
By default based on the 8 last candles and smoothed using RMA
Purple line is the Slow Oscar
By default based on the 16 last candles and smoothed using WMA
HOW TO USE
Exit signaling
This indicator can be used as an exit indicator when line cross each other.
Entry signaling
When the green line crosses up, it indicates a long entry
When the red line crosses up, it indicates a short entry
Overbought/Oversold
When the indicator crosses the dashed grey lines it indicates Overbought Oversold
Slow Oscar Add-on
This is an Add-on to the orignal Oscar indicator
Can be hidden if you want the original experience of the Oscar indicator.
Can be used as a confirmation indicator by looking at the direction of the slope to verify is your are trending long or trending short.
Can be used as a baseline to confirm signals given by Oscar
Can be used to tweak your signals and test different settings.
Stock or Forex?
The program was originally written for stocks, but works equally well with the Forex market.
How this indicator is calculated ?
This is the formula we use to calculate the Oscar:
let A = the highest high of the last eight days (including today)
let B = the lowest low of the past eight days (including today)
let C = today's closing price
let X = yesterday's oscillator figure (Oscar)
Today's "rough" oscillator equals (C-B) divided by (A-B) times 100.
Next we "smooth" our rough number (let's call it Y) like this:
Final oscillator number = ((X divided by 3) times 2), plus (Y divided by 3).
SETTINGS:
You can choose between different smoothing options:
RMA: Moving average used in RSI. It is the Adjusted exponential moving averages (also known as Wilder's exponential moving average)
SMA : Simple moving average
EMA : Exponential moving average
WMA : Weighted moving average
Fractal Adaptive Entry IndicatorThis entry indicator was inspired by John Ehle'rs "Fractal Adaptive Moving Average"
It's a very sensitive entry indicator that must be paired with a long-term trend detector in order to filter false positives.
Warning I have not backtested this indicator and will not make any claims to its performance.
Visually, it looks promising, however, backtesting and statistical analysis takes time.
Happy trading
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