MACD_base_and_reference_TF//====================================================================================================================
The "MACD_with_reference" indicator aims to illustrate the MACD (Moving Average Convergence Divergence) on two distinct timeframes: the base timeframe (typically the chart's timeframe, e.g., 1D) and the reference timeframe (defaulted to 1W). This tool provides a means to determine momentum shifts within the stock, potentially guiding traders in adjusting or trimming positions.
// ================================================== INFO ==================================================
Key Features of the Indicator:
- Dual Timeframe MACD: Displays MACD on both the primary (base) and higher (reference) timeframes - transparent.
- Momentum Analysis: indication of MACD crossdown of the signal line on the refenence TF to indicate momentum loss on the higher timeframe, guiding decisions to manage positions.
- MACD Line Status: Beneath the chart, a red/green bar line signifies the MACD line's position relative to the signal line on the higher timeframe.
- Alert Creation: Allows for alerts on the MACD and signal line crossdown on the higher timeframe, aiding in planning stop-loss settings for owned stocks.
// ================================================== NOTES ==================================================
The "MACD_with_reference" indicator finds optimal usage in several scenarios:
- Chart Analysis: Replacing the MACD indicator during chart reviews.
- Alert Setup: Setting alerts for owned stocks to plan ahead for stop-loss placements or position closures.
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// Continue the script code...
Схождение/расхождение скользящих средних (MACD)
FxCanli PanelEN - FxCanli TradingView Panel Indicator shows the status of RSI, Stochastic, MACD and AO indicators in many TradingView symbols at the same time.
You can follow the market by geting an alarm instantly or at candle close about these indicators.
AT THE DEMO VERSION, YOU CAN FOLLOW ONLY 2 SYMBOL AT THE SAME TIME
TR - FxCanli TradingView Panel Göstergesi aynı anda birçok TradingView sembolünde RSI, Stokastik, MACD ve AO göstergelerinin durumunu gösterir.
Bu göstergeler hakkında anlık veya mum kapanışında alarm alarak piyasayı takip edebilirsiniz.
DEMO VERSİYONUNDA AYNI ANDA SADECE 2 SEMBOLÜ TAKİP EDEBİLİRSİNİZ
RSI Indicator details / RSI İndikatörü detayları
Green box / Yeşil Kutu
EN - At Over Sold Zone
TR - Aşırı Satım Bölgesinde
Pink box / Pembe Kutu
EN - At Over Bought Zone
TR - Aşırı Alım Bölgesinde
Yellow box / Sarı Kutu
EN - Exit from Over Bought/Sold Zone
TR - Aşırı Alım/Satım Bölgesinden Çıkınca
Stochastic Indicator details / Stochastic İndikatörü detayları
Green box / Yeşil Kutu
EN - At Over Sold Zone
TR - Aşırı Satım Bölgesinde
Pink box / Pembe Kutu
EN - At Over Bought Zone
TR - Aşırı Alım Bölgesinde
Yellow box / Sarı Kutu
EN - Exit from Over Bought/Sold Zone
TR - Aşırı Alım/Satım Bölgesinden Çıkınca
MACD Indicator details / MACD İndikatörü detayları
Green box / Yeşil Kutu
EN - MACD Line crossing UP SIGNAL Line
TR - MACD Çizgisi, SİNYAL Çizgisini YUKARI Keser
Pink box / Pembe Kutu
EN - MACD Line crossing DOWN SIGNAL Line
TR - MACD Çizgisi, SİNYAL Çizgisini AŞAĞI Keser
AO Indicator details / AO İndikatörü detayları
Green box / Yeşil Kutu
EN - AO crossing UP ZERO Level
TR - AO Sıfır Seviyesini YUKARI Keser
Pink box / Pembe Kutu
EN - AO crossing DOWN ZERO Level
TR - AO Sıfır Seviyesini ASAGI Keser
Alerts and Notifications / Alarm ve Bildirimler
EN - You can get ALL or ANY of these Alerts
TR - Herhangi birinin veya tamamının alarmlarını alabilirsiniz
DEMO - FxCanli PanelEN - FxCanli TradingView Panel Indicator shows the status of RSI, Stochastic, MACD and AO indicators in many TradingView symbols at the same time.
You can follow the market by geting an alarm instantly or at candle close about these indicators.
AT THE DEMO VERSION, YOU CAN FOLLOW ONLY 2 SYMBOL AT THE SAME TIME
TR - FxCanli TradingView Panel Göstergesi aynı anda birçok TradingView sembolünde RSI, Stokastik, MACD ve AO göstergelerinin durumunu gösterir.
Bu göstergeler hakkında anlık veya mum kapanışında alarm alarak piyasayı takip edebilirsiniz.
DEMO VERSİYONUNDA AYNI ANDA SADECE 2 SEMBOLÜ TAKİP EDEBİLİRSİNİZ
RSI Indicator details / RSI İndikatörü detayları
Green box / Yeşil Kutu
EN - At Over Sold Zone
TR - Aşırı Satım Bölgesinde
Pink box / Pembe Kutu
EN - At Over Bought Zone
TR - Aşırı Alım Bölgesinde
Yellow box / Sarı Kutu
EN - Exit from Over Bought/Sold Zone
TR - Aşırı Alım/Satım Bölgesinden Çıkınca
Stochastic Indicator details / Stochastic İndikatörü detayları
Green box / Yeşil Kutu
EN - At Over Sold Zone
TR - Aşırı Satım Bölgesinde
Pink box / Pembe Kutu
EN - At Over Bought Zone
TR - Aşırı Alım Bölgesinde
Yellow box / Sarı Kutu
EN - Exit from Over Bought/Sold Zone
TR - Aşırı Alım/Satım Bölgesinden Çıkınca
MACD Indicator details / MACD İndikatörü detayları
Green box / Yeşil Kutu
EN - MACD Line crossing UP SIGNAL Line
TR - MACD Çizgisi, SİNYAL Çizgisini YUKARI Keser
Pink box / Pembe Kutu
EN - MACD Line crossing DOWN SIGNAL Line
TR - MACD Çizgisi, SİNYAL Çizgisini AŞAĞI Keser
AO Indicator details / AO İndikatörü detayları
Green box / Yeşil Kutu
EN - AO crossing UP ZERO Level
TR - AO Sıfır Seviyesini YUKARI Keser
Pink box / Pembe Kutu
EN - AO crossing DOWN ZERO Level
TR - AO Sıfır Seviyesini ASAGI Keser
Alerts and Notifications / Alarm ve Bildirimler
EN - You can get ALL or ANY of these Alerts
TR - Herhangi birinin veya tamamının alarmlarını alabilirsiniz
Heatmap MACD StrategyHello traders
A customer gave me the idea indirectly after I made an update to that script:
Supertrend MTF Heatmap
Important Notes
The backtest results aren't relevant for this educational script publication.
I used realistic backtesting data but didn't look too much into optimizing the results, as this isn't the point of why I'm publishing this script.
I wanted to showcase that any Heatmap script can be converted into a strategy.
The strategy default settings are:
Initial Capital: 100000 USD
Position Size: 1 contract
Commission Percent: 0.075%
Slippage: 1 tick
No margin/leverage used
For example, those are realistic settings for trading CFD indices with low timeframes, but not the best possible settings for all assets/timeframes.
Concept
The Heatmap MACD Strategy allows selecting one MACD in five different timeframes.
You'll get an exit signal whenever one of the 5 MACDs changes direction.
Then, the strategy re-enters whenever all the MACDs are in the same direction again.
It takes:
long trades when all the 5 MACD histograms are bullish
short trades when all the 5 MACD histograms are bearish
You can select the same timeframe multiple times if you don't need five timeframes.
For example, if you only need the 30min, the 1H, and 2H, you can set your timeframes as follow:
30m
30m
30m
1H
2H
Risk Management Features
Nothing too fancy
All the features below are pips-based
Stop-Loss
Trailing Stop-Loss
Stop-Loss to Breakeven after a certain amount of pips has been reached
Take Profit 1st level and closing X% of the trade
Take Profit 2nd level and close the remaining of the trade
What's next?
I'll publish this script's open-source Pineconnector, ProfitView, and AutoView versions for educational purposes.
Thank you
Dave
MACD AreaThis indicator calculates and displays the cumulative area for each region above and below the zero line in the MACD histogram. This area measurement serves as a momentum metric, where larger cumulative areas indicate stronger momentum. Divergences between the area and price can also potentially indicate an impending reversal. For example, when the stock price makes a higher high but the area makes a lower high, the current momentum may be unsustainable.
Double MACD Pattern 1.0This script is designed to assist traders in identifying potential trading signals and trends based on the MACD indicator. Users can adjust the input parameters to fine-tune the indicator to their trading preferences. When specific conditions are met, alerts are generated to notify the user of potential trading opportunities.
Indicator Description:
The script defines a custom indicator that calculates and plots two sets of Moving Average Convergence Divergence (MACD) lines along with their signal lines.
It allows users to configure various parameters for MACD calculation, such as fast and slow lengths for both MACD 1 and MACD 2, as well as signal lengths for both.
Plotting:
The script plots the MACD lines and signal lines for both MACD 1 and MACD 2 on the chart with different colors and line styles.
It also plots a middle line at zero for reference.
Alerts:
The script defines conditions for generating alerts based on MACD crossover and crossunder events for both MACD 1 and MACD 2.
Alerts are generated for the following scenarios:
A long signal is generated when MACD 1 crosses under its signal line while MACD 2 crosses over its signal line.
A short signal is generated when MACD 1 crosses over its signal line while MACD 2 crosses under its signal line.
An up trend signal is generated when MACD 2 crosses over MACD 1.
A down trend signal is generated when MACD 1 crosses over MACD 2.
Alerts are included in the script to notify users of these specific trading signals.
Please note that this script is meant for educational purposes and should be used cautiously in a real trading environment. It's important to have a thorough understanding of technical analysis and risk management when using such indicators in actual trading.
Weighted Oscillator Convergence DivergenceThe Weighted Oscillator Convergence Divergence (WOCD) aims to help traders identify potential trend reversals or momentum shifts in financial markets by calculating and visualizing the difference between a smoothed oscillator (WMA) value and its exponential moving average (EMA) and simple moving average (SMA) counterparts. This indicator is particularly useful for traders who want an alternative perspective on price momentum and divergence.
Key Features:
Inputs:
Length: The user can specify the number of bars to consider for calculations (default is 9).
Smoothing 1: Defines the smoothing factor for the first smoothed value (default is 5).
Smoothing 2: Specifies the smoothing factor for the second smoothed value (default is 7).
Ma Type: There are three types of moving averages you can choose (Wilder, non-lag, Weighted is by default).
Color Settings: Users can customize the indicator's colors for various elements, such as length, smoothing values, and different sections of the histogram.
Calculation:
WOCD calculates the raw oscillator value by subtracting the close price from a 3-period High, Low, Close (HLC3) moving average.
It then applies smoothing to this raw oscillator value using two different methods: exponential moving average (EMA) and simple moving average (SMA) with user-defined smoothing periods.
Histogram Plot:
The indicator plots a histogram based on the difference between the smoothed oscillator and the first smoothed value.
When the histogram is above zero and rising, it is colored according to the "Above Grow" color setting. When it's above zero and falling, it uses the "Fall" color for visualization.
Similarly, when the histogram is below zero and rising, it is colored according to the "Below Grow" color setting, and when it's below zero and falling, it uses the "Fall" color.
Oscillator and Smoothed Values:
The indicator also plots the smoothed oscillator, smoothed value 1 (EMA-based), and smoothed value 2 (SMA-based) on the chart.
Zero Line:
A horizontal line at zero is drawn on the chart for reference.
How to Use the WOCD Indicator:
Trend Identification: Observe the histogram's direction and color. A rising histogram above zero may indicate bullish momentum, while a falling histogram below zero could signal bearish momentum.
Divergence: Look for divergences between price action and the histogram. When the histogram and price move in opposite directions, it can be a potential reversal signal.
Crossovers: Pay attention to crossovers between the smoothed oscillator and its smoothed counterparts (EMA and SMA). These crossovers can indicate changes in trend strength or direction.
Zero Line: The zero line can act as a reference point. Positive histogram values suggest bullish sentiment, while negative values indicate bearish sentiment.
Comparison to MACD Indicator:
The WOCD indicator shares some similarities with the Moving Average Convergence Divergence (MACD) indicator but also has distinct differences:
Similarities:
Both WOCD and MACD are momentum oscillators designed to identify potential trend reversals and divergences.
They use moving averages (EMA in the case of MACD) to smooth the raw oscillator values.
Both indicators provide histogram representations of the difference between the oscillator and its smoothed counterpart.
Differences:
WOCD uses a 3-period High, Low, Close (HLC3) moving average to calculate the raw oscillator value, whereas MACD uses the difference between two exponential moving averages (usually 12-period and 26-period EMAs).
The smoothing in WOCD employs both EMA and SMA, while MACD exclusively uses EMA.
WOCD allows users to customize colors for various elements, enhancing visual clarity.
Alxuse MACD for tutorialAll abilities of MACD, moreover :
Drawing upper band and lower band & the ability to change values, change colors, turn on/off show.
Crossing MACD line and SIGNAL line in multi timeframe & there are symbols (Circles) with green color (Buy) and red color (Sell) & the ability to change colors, turn on/off show.
Crossing MACD line and SIGNAL line in multi timeframe according to the values of upper band and lower band & there are symbols (Triangles) with green color (Long) and red color (Short) & the ability to change colors, turn on/off show.
The ability used in the alert section and create customized alerts.
To receive valid alerts the replay section , the timeframe of the chart must be the same as the timeframe of the indicator.
MACD (Moving Average Convergence/Divergence)
Definition
MACD is an extremely popular indicator used in technical analysis. MACD can be used to identify aspects of a security's overall trend. Most notably these aspects are momentum, as well as trend direction and duration. What makes MACD so informative is that it is actually the combination of two different types of indicators. First, MACD employs two Moving Averages of varying lengths (which are lagging indicators) to identify trend direction and duration. Then, MACD takes the difference in values between those two Moving Averages (MACD Line) and an EMA of those Moving Averages (Signal Line) and plots that difference between the two lines as a histogram which oscillates above and below a center Zero Line. The histogram is used as a good indication of a security's momentum.
MACD Line is a result of taking a longer term EMA and subtracting it from a shorter term EMA.The most commonly used values are 26 days for the longer term EMA and 12 days for the shorter term EMA, but it is the trader's choice.
The Signal Line.
The Signal Line is an EMA of the MACD Line described in Component 1. The trader can choose what period length EMA to use for the Signal Line however 9 is the most common.
The MACD Histogram.
As time advances, the difference between the MACD Line and Signal Line will continually differ. The MACD histogram takes that difference and plots it into an easily readable histogram. The difference between the two lines oscillates around a Zero Line.
A general interpretation of MACD is that when MACD is positive and the histogram value is increasing, then upside momentum is increasing. When MACD is negative and the histogram value is decreasing, then downside momentum is increasing.
What to look for
The MACD indicator is typically good for identifying three types of basic signals; Signal Line Crossovers, Zero Line Crossovers, and Divergence.
SIGNAL LINE CROSSOVERS
A Signal Line Crossover is the most common signal produced by the MACD. First one must consider that the Signal Line is essentially an indicator of an indicator. The Signal Line is calculating the Moving Average of the MACD Line. Therefore the Signal Line lags behind the MACD line. That being said, on the occasions where the MACD Line crosses above or below the Signal Line, that can signify a potentially strong move.
The strength of the move is what determines the duration of Signal Line Crossover. Understanding and being able to analyze move strength, as well as being able to recognize false signals, is a skill that comes with experience.
The first type of Signal Line Crossover to examine is the Bullish Signal Line Crossover. Bullish Signal Line Crossovers occur when the MACD Line crosses above the Signal Line.
The second type of Signal Line Crossover to examine is the Bearish Signal Line Crossover. Bearish Signal Line Crossovers occur when the MACD Line crosses below the Signal Line.
Zero line crossovers
Zero Line Crossovers have a very similar premise to Signal Line Crossovers. Instead of crossing the Signal Line, Zero Line Crossovers occur when the MACD Line crossed the Zero Line and either becomes positive (above 0) or negative (below 0).
The first type of Zero Line Crossover to examine is the Bullish Zero Line Crossover. Bullish Zero Line Crossovers occur when the MACD Line crosses above the Zero Line and go from negative to positive.
The second type of Zero Line Crossover to examine is the Bearish Zero Line Crossover. Bearish Zero Line Crossovers occur when the MACD Line crosses below the Zero Line and go from positive to negative.
Divergence
Divergence is another signal created by the MACD. Simply put, divergence is when the MACD and actual price are not in agreement.
For example, Bullish Divergence occurs when price records a lower low, but the MACD records a higher low. The movement of price can provide evidence of the current trend, however changes in momentum as evidenced by the MACD can sometimes precede a significant reversal.
Bearish Divergence is, of course, the opposite. Bearish Divergence occurs when price records a higher high while the MACD records a lower high.
Summary
What makes the MACD such a valuable tool for technical analysis is that it is almost like two indicators in one. It can help to identify not just trends, but it can measure momentum as well. It takes two separate lagging indicators and adds the aspect of momentum which is much more active or predictive That kind of versatility is why it has been and is used by trader's and analysts across the entire spectrum of finance.
Despite MACD's obvious attributes, just like with any indicator, the trader or analyst needs to exercise caution. There are just some things that MACD doesn't do well which may tempt a trader regardless. Most notably, traders may be tempted into using MACD as a way to find overbought or oversold conditions. This is not a good idea. Remember, MACD is not bound to a range, so what is considered to be highly positive or negative for one instrument may not translate well to a different instrument.
With sufficient time and experience, almost anybody who wants to analyze chart data should be able to make good use out of the MACD.
The added features to the indicator are made for training, it is advisable to use it with caution in tradings.
ZN Market CycleDescription
The purpose of this indicator is to create symbols that try to show the most accurate positions possible for trading. The formation of BUY/SELL symbols is based on the intersection of RSI, MACD and 6 bar moving average. Additionally, BOLLINGER bands were used to determine the lower and upper points. For example, while the price is falling, it will create an BOTTOM symbol when the price crosses the lower BOLLINGER band upwards. If this transition is accompanied by the RSI breaking its average upwards, it will produce the STRONG BOTTOM symbol. If the RSI average crosses the RSIMA direction upwards, it will produce the DEEP symbol. Of course, the scenario described above is also valid in the opposite direction. The purpose of the icons on the screen is indicated by the text above them. However, a detailed explanation of what these symbols do is given below.
Symbols
The symbols are explained one by one below.
BOTTOM: Indicates that the fall has slowed down or may have been completed.
STRONG BOTTOM: Indicates that the fall has stopped or may have been completed.
TOP: Indicates that the ascent has slowed down or may have been completed.
STRONG TOP: Indicates that the ascent has stopped or may have been completed.
BUY: Indicates the convenient location to make a buying. Buying pressure may increase after this symbol.
STRONG BUY: Indicates the most suitable location for buying. It should be considered that a strong buying wave may come after the appearance of this symbol.
SELL: Indicates the appropriate location to selling Selling pressure may increase after this symbol.
STRONG SELL: Indicates the most suitable position to selling. It should be considered that a strong selling wave may come after the appearance of this symbol.
PEAK: It indicates that the uptrend has come to an end.
DEEP: It indicates that the downtrend has come to an end.
ARROWS: Arrows show the trend direction. Since it varies a lot, it should be used to follow the trend rather than buy/sell. However, the appearance of a downward arrow shortly after a buy signal should suggest that the buy signal is fake. In this case, the buying position can be closed. This also applies to the selling process.
Best Use
This indicator should be used for SPOT trades. Regardless, since it is not possible to know exactly the direction of the market, it should be considered to buy gradually at buy signals and sell gradually at sell signals.
It should be followed for at least a 4-hour period. We do not recommend its use as the margin of error will increase in shorter time periods.
After a buy signal comes, a short decline may occur and the rise may begin. An immediate rise should not be expected after the signal arrives. Since the signals are not guaranteed to work 100%, we do not recommend you to trade with all your money.
No Repainting
Repainting is definitely not done. After the symbols appear, the closing should be expected. Once the closing occurs, the symbol will now be permanent.
Disclaimer
This indicator is for informational purposes only and should be used for educational purposes only. You may lose money if you rely on this to trade without additional information. Use at your own risk.
Version
v1.0
Zaree - Bull & Bear Volume VoidThe "Zaree - Bull & Bear Volume Void" (BBVV) indicator is a versatile tool designed to help traders assess the dynamics of bull and bear power in the market, with a focus on volume-based analysis. This indicator offers a range of features that aid in identifying potential shifts in market sentiment and strength.
Details of the Indicator:
Volume Void Color Settings: This indicator allows you to customize the colors used for different conditions, such as strong bull areas, slowing bull areas, strong bear areas, and slowing bear areas. These colors play a crucial role in visualizing the indicator's output.
Volume Void Settings: The BBVV indicator provides options for selecting specific volume void functions, which include "Relative Volume Comparison," "Percentage of Average Volume," "Fixed Volume Threshold," "Volatility-Adjusted Volume," "Compare to Previous Volume Bars," "Volume Percentile Rank," and "Market Session Comparison." Each function has its own criteria for evaluating volume conditions.
Void Bull Sensitivity and Void Bear Sensitivity: These are key parameters in the settings. The values you choose for void bull sensitivity and void bear sensitivity will significantly impact the background color displayed by the indicator. Properly configuring these values is crucial for the indicator's effectiveness.
Moving Average Settings: You can specify the source and length of moving averages used in the indicator. This helps in smoothing out data and providing a clearer picture of bull and bear power.
Void Color Background Conditions: The indicator dynamically changes the background color of the chart based on the current market conditions. It takes into account bull and bear power, as well as the configured sensitivity levels to determine whether the market is in a strong or slowing bull/bear phase.
MACD and Signal Lines: The indicator also displays MACD and signal lines on the chart, helping traders identify potential bullish and bearish crossovers.
Histogram Bars: Histogram bars are used to represent the strength of bull and bear power. Above-zero bars indicate bullish strength, while below-zero bars indicate bearish strength.
How to Use the Indicator:
Begin by customizing the color settings for different market conditions to your preference.
Select a volume void function that aligns with your trading strategy and objectives.
Configure the void bull sensitivity and void bear sensitivity values carefully. These values should reflect your desired sensitivity to volume conditions.
Choose the source and length of moving averages based on your analysis requirements.
Pay attention to the background color of the chart. It will change dynamically based on the current market conditions, providing insights into the strength of bull and bear power.
Observe the MACD and signal lines for potential bullish or bearish crossovers, which can be used as additional confirmation signals.
Interpret the histogram bars to gauge the strength of bull and bear power.
Example of Usage:
As a swing trader with a focus on volume analysis, you can use the BBVV indicator to enhance your trading decisions. Here's an example of how you might use the indicator:
Select "Relative Volume Comparison" as the volume void function to assess volume relative to a simple moving average.
Configure void bull sensitivity and void bear sensitivity to match your risk tolerance and trading style.
Choose "SMA" as the moving average type with a suitable length.
Pay attention to the background color changes in the chart. Strong bull areas may indicate potential bullish opportunities, while strong bear areas may signal bearish conditions.
Monitor the MACD and signal lines for potential crossovers, aligning them with the background color to validate your trading decisions.
Use the histogram bars to assess the strength of bull and bear power, helping you gauge market sentiment.
Remember that the BBVV indicator is a valuable tool to complement your trading strategy. It provides insights into volume dynamics and market conditions, allowing you to make informed trading choices.
Be sure to adjust the indicator settings according to your trading preferences and always consider the broader market context in your analysis.
Macd 6 timeframes ( include chart time with histogram) AboSary 15min, 1h, 4h, D, W, (chart time) + Histogram
All can be show or hide by you and change colors :)
ماكد يشمل 6 فواصل زمنية 15د، 1ساعة، 4ساعات, يوم، اسبوع بالاضافة الى مكاد للفاصل المستخدم بالشارت ايضاً هيستوغرام لنفس الفاصل المعروض في الشارت
مثال لو وضعت نصف ساعة تجد مكاد نص ساعة والهستوغرام كذلك نصف ساعة
جميع الخيارات يمكنك اغلاق اي منها وتغيير الوانها
Volatility Adjusted MACDMACD, short for moving average convergence/divergence, is a trading indicator used in technical analysis of securities prices, created by Gerald Appel in the late 1970s. It is designed to reveal changes in the strength, direction, momentum, and duration of a trend in a stock's price.
The MACD indicator (or "oscillator") is a collection of three time series calculated from historical price data, most often the closing price. These three series are: the MACD series proper, the "signal" or "average" series, and the "divergence" series which is the difference between the two. The MACD series is the difference between a "fast" (short period) exponential moving average (EMA), and a "slow" (longer period) EMA of the price series. The average series is an EMA of the MACD series itself.
This version of MACD follows the work of Alex Spiroglou, DipTA(ATAA), CFTe in his 2022 paper that was awarded Charles H. Dow Award by CMT Association . The paper is available on papers.ssrn.com or on website.of CMT Association.
Please refer to the paper for details on construction and trading rules . I personally find the volatility adjusted version as described in this paper more responsive in terms of signals and divergences.
Dual-Supertrend with MACD - Strategy [presentTrading]## Introduction and How it is Different
The Dual-Supertrend with MACD strategy offers an amalgamation of two trend-following indicators (Supertrend 1 & 2) with a momentum oscillator (MACD). It aims to provide a cohesive and systematic approach to trading, eliminating the need for discretionary decision-making.
Key advantages over traditional single-indicator strategies:
- Dual Supertrend Validation: Utilizes two Supertrend indicators with different ATR periods and factors to confirm the trend direction. This double-check mechanism minimizes false signals.
- Momentum Confirmation: The MACD histogram acts as a momentum filter, confirming entries and exits, thus adding an extra layer of validation.
- Objective Entry and Exit: The strategy generates buy and sell signals based on a combination of trend direction and momentum, leaving no room for subjective interpretation.
- Automated Trade Management: The strategy includes built-in settings for commission, slippage, and initial capital, automating the trade execution process.
- Adaptability: The strategy allows for easy customization of all its parameters, adapting to a trader's specific needs and varying market conditions.
BTCUSD 8hr chart Long Condition
BTCUSD 6hr chart Long Short Condition
## Strategy, How it Works
The strategy operates on a set of clearly defined rules, primarily focusing on the trend direction confirmed by the Dual-Supertrend and the momentum as indicated by the MACD histogram.
### Entry Rules
- Long Entry: When both Supertrend indicators are bullish and the MACD histogram is above zero.
- Short Entry: When both Supertrend indicators are bearish and the MACD histogram is below zero.
### Exit Rules
- Exit long positions when either of the Supertrends turn bearish or the MACD histogram drops below zero.
- Exit short positions when either of the Supertrends turn bullish or the MACD histogram rises above zero.
### Trade Management
- The strategy uses a fixed commission rate and slippage in its calculations.
- Automated risk management features are integrated to avoid overexposure.
## Trade Direction
The strategy allows for trading in both bullish and bearish markets. Users can select their preferred trading direction ("long", "short", or "both") to align with their market outlook and trading objectives.
## Usage
- The strategy is best applied on timeframes where the trend is evident.
- Users can modify the ATR periods, factors for Supertrends, and MACD settings to suit their trading needs.
## Default Settings
- ATR Period for Supertrend 1: 10
- Factor for Supertrend 1: 3.0
- ATR Period for Supertrend 2: 20
- Factor for Supertrend 2: 5.0
- MACD Fast Length: 12
- MACD Slow Length: 26
- MACD Signal Smoothing: 9
- Commission: 0.1%
- Slippage: 1 point
- Trading Direction: Both
The strategy comes with these default settings to offer a balanced trading approach but can be customized according to individual trading preferences.
Realtime Divergence for Any Indicator - By John BartleThe main purpose of this script is to show historical and real-time divergences for any oscillating indicator. The secondary purpose is to give the user a lot of precise control over identifying divergences and determining what they are. This is an improved version of my other script which is similarly called "Realtime Divergence for Any Indicator"
There are four types of divergences that are offered:
Bull divergence
Hidden bull divergence
Bear divergence
Hidden Bear divergence
There are three types of potential(real-time) divergences which include:
1) Without right side bars for rightside pivots. Plus without waiting for the rightside pivot bar to complete
2) Without right side bars for rightside pivots. Plus with waiting for the rightside pivot bar to complete
3) With right side bars for rightside pivots. Plus without waiting for the rightside pivot right-most bar to complete
A definite divergence occurs when all specified bars are accounted for and fully formed.
Potential divergences use dashed lines and definite(historical) divergences use solid lines.
In addition to several other categories of settings to filter out unwanted divergences or manipulate the search process, this script also offers Alerts. Remember that alerts must not only be set within this scripts settings but also your "Alerts" panel on your right. It's strange but BOTH must be set for alerts to work...
Other interesting Things To Know:
1)I actually don't trade and so I have no need of a paid account. Unpaid accounts don't have the playback feature so I haven't really tested this script out very well. Sorry. Just let me know if something seems off and IF I have time I'll try to fix it.
2)Keep in mind that Pinescript limits the number of lines that can be shown at one time. This means that if your settings allow for a large number of divergence lines they will be removed from the leftward side of your chart but appear in the rightward side.
3) The time and the values for the price or oscillator are not the same things as each other nor are they physical things with physical space. This means that slopes of lines using the time as X and value as Y can not have definite angles. Consequently, under the setting "DIVERGENCES: SLOPE ANGLE EXCLUSION" YOU have to decide what slope equals what angle by using the setting called "Normalization Factor".
4) Remember that some individual settings apply to both the oscillator and price chart. This means that even if the setting's conditions are fulfilled in one they may not be fulfilled in the other.
5) Under the category "DIVERGENCES: INTERSECTION ALLOWANCE", if you set the "Measurement Type" to Relative Percentage then FYI any single given length will equate to an increasingly smaller percentage the further away from zero it is. Because of this, I think "Reletive Percentage" is probably only useful for price charts or oscillators with big values. Maybe >200 is OK ?
Errors:
1) If you get the error mentioning that the script must complete execution within X amount of time, this is because this is a big script and sometimes takes longer than your service plan's allotted time limit. You can just disable some of the settings to reduce the scripts amount of work and time. The biggest time savers will be to disable some lines and labels
2) If you get an error saying the script accessed a negative index(e.g. ) then try temporarily increasing the "Add More Array Elements" setting to 100-200. Sometimes it fixes the problem.
3) You may sometimes temporarily get an error that reads: "Pine cannot determine the referencing length of a series. Try using max_bars_back in the study or strategy function".
If this happens there are several things that you can do:
3A) Create a copy of my script. Then edit the section of code that looks like this ")//, max_bars_back = INSERT_YOUR_QUANTITY_HERE)" and transform it to look like this new code ", max_bars_back = INSERT_YOUR_QUANTITY_HERE)" then repeatedly try replacing "INSERT_YOUR_QUANTITY_HERE" with an increasingly larger number greater than 244 but less than 5000.
This method will increase your system resources and could cause other problems. Try changing the code back after a few hours and see if all is well again. It is a Pinescript limitation issue and happens when certain functions or variables don't get used at least once within the first 244 bars.
3B) Adjust your settings to hopefully find a divergence within the first 244 bars. If one is found then the problematic variables or functions should get used and the Pinescript 244 bar limitation should be temporarily resolved.
3C) Wait for X number of new bars to occur. If a divergence is eventually found within the first 244 bars that should solve the issue.
Tips:
1) If the amount that a setting changes value is undesirable for each time you click it then you can change that amount in the code. To do that, you'll need your own copy of my script. To make your own copy just click on "create a working copy" in the brown colored strip area above the code. Then within approximately the first 108 lines find the title of the setting you want to change. Then look to it's right to find the parameter called "step =". Change what the step equals to whatever you want. FYI, you can hover your mouse over the blue colored code and a popup will tell you what parameters(i.e. settings) that function(e.g. "input.int()") has available.
Linear Cross Trading StrategyLinear Cross Trading Strategy
The Linear Cross trading strategy is a technical analysis strategy that uses linear regression to predict the future price of a stock. The strategy is based on the following principles:
The price of a stock tends to follow a linear trend over time.
The slope of the linear trend can be used to predict the future price of the stock.
The strategy enters a long position when the predicted price crosses above the current price, and exits the position when the predicted price crosses below the current price.
The Linear Cross trading strategy is implemented in the TradingView Pine script below. The script first calculates the linear regression of the stock price over a specified period of time. The script then plots the predicted price and the current price on the chart. The script also defines two signals:
Long signal: The long signal is triggered when the predicted price crosses above the current price.
Short signal: The short signal is triggered when the predicted price crosses below the current price.
The script enters a long position when the long signal is triggered and exits the position when the short signal is triggered.
Here is a more detailed explanation of the steps involved in the Linear Cross trading strategy:
Calculate the linear regression of the stock price over a specified period of time.
Plot the predicted price and the current price on the chart.
Define two signals: the long signal and the short signal.
Enter a long position when the long signal is triggered.
Exit the long position when the short signal is triggered.
The Linear Cross trading strategy is a simple and effective way to trade stocks. However, it is important to note that no trading strategy is guaranteed to be profitable. It is always important to do your own research and backtest the strategy before using it to trade real money.
Here are some additional things to keep in mind when using the Linear Cross trading strategy:
The length of the linear regression period is a key parameter that affects the performance of the strategy. A longer period will smooth out the noise in the price data, but it will also make the strategy less responsive to changes in the price.
The strategy is more likely to generate profitable trades when the stock price is trending. However, the strategy can also generate profitable trades in ranging markets.
The strategy is not immune to losses. It is important to use risk management techniques to protect your capital when using the strategy.
I hope this blog post helps you understand the Linear Cross trading strategy better. Booost and share with your friend, if you like.
MACD 3D with Signals [Quantigenics]Quantigenics MACD 3D with Buy Sell Signals is a MACD-based trading indicator that aims to identify market trends and potential turning points, for Buy/Sell opportunities, by leveraging price data and volatility.
Unlike the traditional MACD indicator, the average price is calculated from the high, low, and close prices, from which a specialized MACD value is derived. This MACD value, combined with an average and standard deviation, takes into account volatility, and is used to generate an upper and lower boundary.
The indicator color-codes market trends: aqua indicates upward trends (signifying increased buying pressure), red suggests downward trends (increased selling pressure). When the MACD value crosses above the upper boundary or falls below the lower boundary, the color changes to yellow indicating a possible reversal point and "Momentum Crossover Signals" can be plotted at this point. "Standard Signal" arrows can also plotted when the MACD 3D changes from auqa to red and vice-versa.
A trendline is drawn at the median value, providing a baseline for comparison. A differential value, which measures the distance between the MACD value and the median line, provides additional insight into the price's deviation from this baseline (divergences from the underlying price can be spotted using this data as well). The differential is color-coded: green when MACD is above the median, and red when it's below, with darker shades representing a decreasing gap.
Alerts can be set to trigger with the "Standard Signal" arrows appearing after MACD 3D changes from auqa to red and vice-versa and when the "Momentum Crossover Signal" arrows appear when the MACD value crosses above the upper boundary or falls below the lower boundary indicating a potential reversal. Providing immediate notifications which can be especially helpful in larger time frames where it may take time for a trade setup to develop.
CME_MINI:NQ1!
OANDA:XAUUSD
Enjoy the MACD 3D indicator. Happy Trading!
Velocity Acceleration Convergence Divergence Indicator [CC]I created the Velocity Acceleration Convergence Divergence Indicator, and it is quite a mouthful if I do say so. I based this script on my two previous scripts: Velocity Indicator and Velocity Acceleration Indicator . This acts like a typical MACD but is much faster with the responses. This indicator is created by finding the difference between the Velocity Indicator and Velocity Acceleration Indicator to determine the overall trend strength of the underlying stock. Like the other scripts, I coded the general buy and sell signals the same, so you would want to buy when the indicator crosses over above the zero midline and sell when it crosses below the zero midline. I have also used the same colors, so darker colors for strong signals and lighter colors for normal signals.
Please let me know if you would like me to publish another script or if you want something custom done!
Adaptive MACD [LuxAlgo]The Adaptive MACD indicator is an adaptive version of the popular Moving Average Convergence Divergence (MACD) oscillator, returning longer-term variations during trending markets and cyclic variations during ranging markets while filtering out noisy variations.
🔶 USAGE
The proposed oscillator contains all the elements within a regular MACD, such as a signal line and histogram. A MACD value above 0 would indicate up-trending variations, while a value under 0 would be indicating down-trending variations.
Just like most oscillators, our proposed Adaptive MACD is able to return divergences with the price.
As we can see in the image above ranging markets will make the Adaptive MACD more conservative toward more cyclical conservations, filtering out both noise and longer-term variations. However, when longer-term variations (such as in a trending market) are prominent the oscillator will conserve longer-term variations.
The R2 Period setting determines when trending/ranging markets are detected, with higher values returning indications for longer intervals.
The fast and slow settings will act similarly to the regular MACD, however, closer values will return more cyclical outputs.
The image above compares our proposed MACD (top) with a regular MACD (bottom), both using fast = 19 and slow = 20 .
🔶 DETAILS
It is common to be solely interested in the trend component when the market is trending, however, during a ranging market it is more common to observe a more prominent cyclical/noise component. We want to be able to preserve one of the components at the appropriate market conditions, however, the regular MACD lack the ability to preserve cyclical component with high accuracy.
The MACD is an IIR bandpass filter. In order to obtain a lower passband bandwidth and a more symmetrical magnitude response (which would allow to conserve more precise cyclical variations) we can directly change the system calculation:
y = (price - price ) × g + ((1 - a1) + (1 - a2)) × y - (1 - a1) × (1 - a2) × y
where:
a1 = 2/(fast + 1)
a2 = 2/(slow + 1)
g = a1 - a2
Using division instead of multiplication on the second feedback weight allows further weighting the 2 samples lagged output, returning a more desirable magnitude response with a higher degree of filtering on both ends of the spectrum as shown in the image below:
We are interested in conserving cycles during ranging markets, and longer-term variations during trending markets, we can do this by interpolating between our two filter coefficients:
α × + (1 - α) ×
where 1 > α > 0 . α is measuring if the market is trending or ranging, with values closer to 1 indicating a trending market. We see that for higher values of α the original coefficient of the MACD is used. The image below shows various magnitude responses given multiple values of α :
We use a rolling R-Squared as α , this measurement has the benefit of indicating if the market is trending or ranging, as well as being constrained within range (0, 1), and having a U-shaped distribution.
If you are interested to learn more about the MACD see:
🔶 SETTINGS
R2 Period: Calculation window of the R-Squared.
Fast: Fast period for the calculation of the Adaptive MACD, lower values will return more noisy results.
Slow: Slow period for the calculation of the Adaptive MACD, higher values will return result with longer-term conserved variations.
Signal: Period of the EMA applied to the Adaptive MACD.
MACD Bands - Multi Timeframe [TradeMaster Lite]We present a customizable MACD indicator, with the following features:
Multi-timeframe
Deviation bands to spot unusual volatility
9 Moving Average types
Conditional coloring and line crossings
👉 What is MACD?
MACD is a classic, trend-following indicator that uses moving averages to identify changes in momentum. It can be used to identify trend changes, overbought and oversold conditions, and potential reversals.
👉 Multi-timeframe:
This feature allows to analyze the same market data on multiple time frames, which can be in help to identify trends and patterns that would not be visible on a single time frame. When using the multi-timeframe feature, it is important to start with the higher time frame and then look for confirmation on the lower time frames. This will help you to avoid false signals. Please note that only timeframes higher than the chart timeframe is supported currently with this feature enabled. Might get updated in the future.
👉 Deviation bands to spot unusual volatility:
Deviation bands are plotted around the Signal line that can be in help to identify periods of unusual volatility. When the MACD line crosses outside of the deviation bands, it suggests that the market is becoming more volatile and a strong trend may form in that direction.
👉 9 Moving Average types can be used in the script. Each type of moving average offers a unique perspective and can be used in different scenarios to identify market trends.
SMA (Simple Moving Average): This calculates the average of a selected range of values, by the number of periods in that range.
SMMA (Smoothed Moving Average): This takes into account all data available and assigns equal weighting to the values.
EMA (Exponential Moving Average): This places a greater weight and significance on the most recent data points.
DEMA (Double Exponential Moving Average): This is a faster-moving average that uses a proprietary calculation to reduce the lag in data points.
TEMA (Triple Exponential Moving Average): This is even quicker than the DEMA, helping traders respond more quickly to changes in trend.
LSMA (Least Squares Moving Average): This moving average applies least squares regression method to determine the future direction of the trend.
HMA (Hull Moving Average): This moving average is designed to reduce lag and improve smoothness, providing quicker signals for short-term market movements.
VWMA (Volume Weighted Moving Average): This assigns more weight to candles with a high volume, reflecting the true average values more accurately in high volume periods.
WMA (Weighted Moving Average): This assigns more weight to the latest data, but not as much as the EMA.
👉 Conditional coloring :
This feature colors the MACD line line based on it's direction and fills the area between the MACD line and Deviation band edges to highlight the potential volatility and the strength of the momentum. This can be useful to identify when the market is trending strongly and when it is in a more neutral or choppy state.
👉 MACD Line - Signal Line crossings:
This is a classic MACD trading signal that occurs when the MACD line crosses above or below the signal line. Crossovers can be used to identify potential trend reversals. This can be a bullish or bearish signal, depending on the direction of the crossover.
👉 General advice
Confirming Signals with other indicators:
As with all technical indicators, it is important to confirm potential signals with other analytical tools, such as support and resistance levels, as well as indicators like RSI, MACD, and volume. This helps increase the probability of a successful trade.
Use proper risk management:
When using this or any other indicator, it is crucial to have proper risk management in place. Consider implementing stop-loss levels and thoughtful position sizing.
Combining with other technical indicators:
The indicator can be effectively used alongside other technical indicators to create a comprehensive trading strategy and provide additional confirmation.
Keep in Mind:
Thorough research and backtesting are essential before making any trading decisions. Furthermore, it's crucial to have a solid understanding of the indicator and its behavior. Additionally, incorporating fundamental analysis and considering market sentiment can be vital factors to take into account in your trading approach.
Limitations:
This is a lagging indicator. Please note that the indicator is using moving averages, which are lagging indicators.
The indicators within the TradeMaster Lite package aim for simplicity and efficiency, while retaining their original purpose and value. Some settings, functions or visuals may be simpler than expected.
⭐ Conclusion
We hold the view that the true path to success is the synergy between the trader and the tool, contrary to the common belief that the tool itself is the sole determinant of profitability. The actual scenario is more nuanced than such an oversimplification. Our aim is to offer useful features that meet the needs of the 21st century and that we actually use.
🛑 Risk Notice:
Everything provided by trademasterindicator – from scripts, tools, and articles to educational materials – is intended solely for educational and informational purposes. Past performance does not assure future returns.
ManipulatorTrade | InfoBarEnglish
With this indicator, you can track the instrument selected in the settings, there is also RSI, MACD, Stochastic. The InfoBar will show you overbought or oversold, as well as the trend in MACD.
You can track crypto dominance: BTC, ETH, USDT.
Also keep an eye on indices and metals.
There is VWAP which shows the average price weighted by volume over a certain period. All settings can be changed.
Українська
За допомогою даного індикатора ви можете відстежувати інструмент вибраний в налаштуваннях, так само є RSI, MACD, Stochastic. InfoBar вам покаже перекупленність або перепроданість, так само тренд в MACD.
Ви можете відстежувати крипто домінацію: BTC, ETH, USDT.
Так само слідкувати за індексами та металами.
Є VWAP, який показує середню ціну, виважену за обсягом за певний період. Усі налаштування можна змінити.
Русский
С помощью данного индикатора вы можете отслеживать инструмент выбранный в настройках, так же есть RSI, MACD, Stochastic. InfoBar вам покажет перекупленностть или перепроданность, так же тренд в MACD.
Вы можете отслеживать крипто доминацию: BTC, ETH, USDT.
Так же следить за индексами и металлами.
Есть VWAP который показывает среднюю цену, взвешенную по объему за определенный период. Все настройки можно изменить.
Bar Color Long / Short Indicator With Advised SL Rev 1This is the Revised Version of Bar Color Long / Short Indicator With Advised SL with some extra features
Overview
This script is a trading indicator named "Bar Color Long / Short Indicator With Advised SL" designed for the TradingView platform. The indicator's primary purpose is to provide entry signals for long and short positions, based on various technical analysis methods. Additionally, the indicator suggests stop-loss levels for both long and short positions.
User Inputs
The indicator has several user inputs, such as:
Length
Smoothing
Multiplier
Show bar colors (ON/OFF)
When the bar colors are turned off, the alert signals for long and short positions will be displayed instead.
Custom Risk Calculation
The script calculates a custom risk level based on a modified version of the RSI (Relative Strength Index) formula. The custom risk level is divided into three categories: low, medium, and high.
Sentiment Score Calculation
The indicator calculates a sentiment score based on a combination of methods resembling EMA (Exponential Moving Average), MACD (Moving Average Convergence Divergence), and ROC (Rate of Change). The sentiment score is used to determine if the sentiment is positive or negative.
Bollinger Bands Percent and Combined Signal
The Bollinger Bands Percent is calculated, and the custom risk, sentiment score, and Bollinger Bands Percent are combined to generate a new signal. This signal is used in conjunction with EMA10 to determine the bar colors and provide entry signals.
Bar Colors
Based on the combined signal and EMA10, the script determines the bar colors as follows:
Orange: Positive sentiment
Blue: Negative sentiment
Gray: Neutral
Entry Signals and Alerts
When the bar colors are turned off, the indicator displays large green arrow signals for long (buy) positions and red arrow signals for short (sell) positions based on the sentiment and EMA10 conditions. The script also includes alert conditions for long and short signals, which can be used to set up notifications when these signals are triggered in the TradingView platform.
Advised Stop-Loss Levels
The indicator plots stop-loss lines for both long and short positions at the last candle, accompanied by labels showing the advised stop-loss levels in numeric values
Rev 1
added / changed :
SMA50 slope check
EMA20 higher or lower than EMA10
color ON/OFF changed
Signal once Buy and Sell
MEO Reversal and AlertHello; This indicator offers a suite of diverse analytical features. These features are typically triggered in unusual overbought and oversold conditions and are primarily used to identify excessive buying or selling and for general monitoring in suspicious cases.
Below is a general overview of the various features of this indicator:
RSI Overbought and Oversold Zones: This feature determines whether the RSI is in the overbought or oversold zones.
RSI Peak and Trough Points: Identifies the peak and trough points of the RSI.
Stoch RSI Peak and Trough Points: Identifies the peak and trough points of the Stoch RSI.
MACD Peak and Trough Points: Identifies the peak and trough points of the MACD.
MACD Overflow Points: Detects the overflow points of the MACD.
WaveTrend Reversal Points: Identifies the reversal points of the WaveTrend.
Money Flow Index (MFI) Potential Reversals: Determines the potential reversal points of the MFI.
Z-Score Outliers: Identifies the deviation points of the Z-Score.
Momentum Reversal Points: Identifies the reversal points of Momentum.
SR Support Resistance Breakouts: Determines the breakout points of support and resistance.
Rate of Change (ROC) Rapid Price Change Points: Identifies the rapid price change points of the ROC.
You can set alert conditions for each feature.
The inspiration for this indicator came from the idea of making a few indicators easier and faster to use together. Instead of tracking three basic indicators as shown in the image, I thought it might be more straightforward to follow the Reversal indicator. I imagined this could generally be a handy tip-off indicator and wanted to share it with you. Please write if you have any questions or if there's something you'd like to ask.
However, remember that this should not be considered as investment advice and should not be used for direct buying or selling operations. Each trade is under the individual user's responsibility.
For frequently asked questions, you can check the TradingView support page here: tr.tradingview.com
GKD-C Zero-lag TEMA Crosses [Loxx]The Giga Kaleidoscope GKD-C Zero-lag TEMA Crosses is a confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-C Zero-lag TEMA Crosses
Zero-lag TEMA Crosses is a spinoff of a the Zero-lag MA as described by David Stendahl in the April 2000 issue of the journal "Technical Analysis of Stocks and Commodities". This indicator uses TEMA calculation mode in order to make the lag lesser compared to the original Zero-lag MA, and that makes this version even faster than the Zero-lag DEMA too. This indicator is the difference between a Fast and Slow Zero-lag TEMA. This indicator is very useful for lower timeframe scalping.
What is the Zero-lag MA?
The Zero-lag MA (Zero-Lag Moving Average) is a technical indicator that was introduced in the April 2000 issue of the journal "Technical Analysis of Stocks and Commodities" by David Stendahl.
The Zero-lag MA is a type of moving average (MA) that is designed to reduce or eliminate the lag that is typically associated with traditional moving averages. Moving averages are a widely used technical analysis tool that helps traders to identify trends and potential trading opportunities. They work by calculating the average price of a security over a given period of time, and then plotting that average on a chart. The most commonly used moving averages are simple moving averages (SMAs) and exponential moving averages (EMAs).
The problem with traditional moving averages is that they can be slow to respond to changes in market conditions. This lag can cause traders to miss out on potential trading opportunities, or to enter or exit trades at the wrong time. The Zero-lag MA was developed as a solution to this problem.
The Zero-lag MA is calculated using a combination of two EMAs and a subtraction formula. The first step in calculating the Zero-lag MA is to calculate two exponential moving averages: a fast EMA and a slow EMA. The fast EMA is calculated over a shorter period of time than the slow EMA. The exact period lengths will depend on the trader's preferences and the security being analyzed.
Once the two EMAs have been calculated, the next step is to take the difference between them. This difference represents the current market trend, with a positive value indicating an uptrend and a negative value indicating a downtrend. However, this difference alone is not enough to create a useful indicator, as it can still suffer from lag.
To further reduce lag, the difference between the two EMAs is multiplied by a factor derived from a third, slower EMA. This slower EMA acts as a smoothing factor, helping to reduce noise and make the indicator more accurate. The exact period length of the slower EMA will depend on the trader's preferences and the security being analyzed.
The final step in calculating the Zero-lag MA is to add the result of the multiplication to the fast EMA. This produces a final value that represents the current market trend with reduced lag. The Zero-lag MA can be plotted on a chart like any other moving average, and can be used to identify trends, potential trading opportunities, and support and resistance levels.
Overall, the Zero-lag MA is designed to provide traders with a more accurate representation of current market conditions by reducing the lag time between price changes and the moving average. By doing so, it can help traders to make more informed trading decisions and improve their overall profitability.
What is the TEMA?
The triple exponential moving average (TEMA) is a technical analysis indicator that was developed to reduce the lag of traditional moving averages, such as the simple moving average (SMA) or the exponential moving average (EMA). The TEMA was first introduced by Patrick Mulloy in the January 1994 issue of the "Technical Analysis of Stocks and Commodities" magazine.
The TEMA is a type of moving average that is calculated by applying multiple exponential smoothing techniques to price data. Unlike traditional moving averages, which apply a single smoothing factor to price data, the TEMA applies three smoothing factors to produce a more responsive and accurate indicator.
To calculate the TEMA, the following steps are taken:
Calculate the single exponential moving average (SMA) of the price data over a given period.
Calculate the double exponential moving average (DEMA) of the SMA over the same period.
Calculate the triple exponential moving average (TEMA) of the DEMA over the same period.
The formula for calculating the TEMA is:
TEMA = 3 * EMA(SMA) - 3 * EMA(EMA(SMA)) + EMA(EMA(EMA(SMA)))
where EMA is the exponential moving average and SMA is the simple moving average.
The TEMA is designed to reduce the lag associated with traditional moving averages by applying multiple smoothing factors to the price data. This helps to filter out short-term price fluctuations and provide a smoother indicator of the underlying trend. The TEMA is also less susceptible to whipsaws, which occur when a security's price moves in one direction and then quickly reverses, causing false trading signals.
The TEMA can be used in a variety of ways in technical analysis. It can be used to identify trends, determine support and resistance levels, and generate trading signals. When the TEMA is rising, it is generally interpreted as a bullish signal, indicating that the price is trending higher. When the TEMA is falling, it is generally interpreted as a bearish signal, indicating that the price is trending lower.
In summary, the TEMA is a more responsive and accurate indicator than traditional moving averages, designed to reduce lag and provide a smoother representation of the underlying trend. It is a useful tool for technical analysts and traders looking to identify trends, support and resistance levels, and potential trading opportunities.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Zero-lag TEMA Crosses as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
