Gaussian Price Filter [BackQuant]Gaussian Price Filter
Overview and History of the Gaussian Transformation
The Gaussian transformation, often associated with the Gaussian (normal) distribution, is a mathematical function characteristically prominent in statistics and probability theory. The bell-shaped curve of the Gaussian function, expressing the normal distribution, is ubiquitously employed in various scientific and engineering disciplines, including financial market analysis. This transformation's core utility in trading and economic forecasting is derived from its efficacy in smoothing data series and highlighting underlying trends, which are pivotal for making strategic trading decisions.
The Gaussian filter, specifically, is a type of data-smoothing algorithm that mitigates the random "noise" of market price data, thus enhancing the visibility of crucial trend changes and patterns. Historically, this concept was adapted from fields such as signal processing and image editing, where precise extraction of useful information from noisy environments is critical.
1. What is a Gaussian Transformation?
A Gaussian transformation involves the application of a Gaussian function to a set of data points. The function is applied as a filter in the context of trading algorithms to smooth time series data, which helps in identifying the intrinsic trends obscured by market volatility. The transformation is characterized by its parameter, sigma (σ), representing the standard deviation, which determines the width of the Gaussian bell curve. The breadth of this curve impacts the degree of smoothing: a wider curve (higher sigma value) results in more smoothing, beneficial for longer-term trend analysis.
2. Filtering Price with Gaussian Transformation and its Benefits
In the provided Script, the Gaussian transformation is utilized to filter price data. The filtering process involves convolving the price data with Gaussian weights, which are calculated based on the chosen length (the number of data points considered) and sigma. This convolution process smooths out short-term fluctuations and highlights longer-term movements, facilitating a clearer analysis of market trends.
Benefits:
Reduces noise: It filters out minor price movements and random fluctuations, which are often misleading.
Enhances trend recognition: By smoothing the data, it becomes easier to identify significant trends and reversals.
Improves decision-making: Traders can make more informed decisions by focusing on substantive, smoothed data rather than reacting to random noise.
3. Potential Limitations and Issues
While Gaussian filters are highly effective in smoothing data, they are not without limitations:
Lag introduction: Like all moving averages, the Gaussian filter introduces a lag between the actual price movements and the output signal, which can delay decision-making.
Feature blurring: Over-smoothing might obscure significant price movements, especially if a large sigma is used.
Parameter sensitivity: The choice of length and sigma significantly affects the output, requiring optimization and backtesting to determine the best settings for specific market conditions.
4. Extending Gaussian Filters to Other Indicators
The methodology used to filter price data with a Gaussian filter can similarly be applied to other technical indicators, such as RSI (Relative Strength Index) or MACD (Moving Average Convergence Divergence). By smoothing these indicators, traders can reduce false signals and enhance the reliability of the indicators' outputs, leading to potentially more accurate signals and better timing for entering or exiting trades.
5. Application in Trading
In trading, the Gaussian Price Filter can be strategically used to:
Spot trend reversals: Smoothed price data can more clearly indicate when a trend is starting to change, which is crucial for catching reversals early.
Define entry and exit points: The filtered data points can help in setting more precise entry and exit thresholds, minimizing the risk and maximizing the potential return.
Filter other data streams: Apply the Gaussian filter on volume or open interest data to identify significant changes in market dynamics.
6. Functionality of the Script
The script is designed to:
Calculate Gaussian weights (f_gaussianWeights function): Generates the weights used for the Gaussian kernel based on the provided length and sigma.
Apply the Gaussian filter (f_applyGaussianFilter function): Uses the weights to compute the smoothed price data.
Conditional Trend Detection and Coloring: Determines the trend direction based on the filtered price and colors the price bars on the chart to visually represent the trend.
7. Specific Actions of This Code
The Pine Script provided by BackQuant executes several specific actions:
Input Handling: It allows users to specify the source data (src), kernel length, and sigma directly in the chart settings.
Weight Calculation and Normalization: Computes the Gaussian weights and normalizes them to ensure their sum equals one, which maintains the original data scale.
Filter Application: Applies the normalized Gaussian kernel to the price data to produce a smoothed output.
Trend Identification and Visualization: Identifies whether the market is trending upwards or downwards based on the smoothed data and colors the bars green (up) or red (down) to indicate the trend direction.
Скользящие средние
Money Flow DashboardThe Money Flow Dashboard is my take on trying to replicate the great and mighty Market Cipher's Money Flow and pack it into a comprehensive dashboard format with access to various timeframes.
If Money Flow is king 👑, then follow the Money 💸
How to Use Money Flow Dashboard:
1. Timeframe Selection: Choose the relevant timeframes based on your trading style and preferences. Enable or disable timeframes in the settings to focus on the most relevant ones for your strategy.
2. Dashboard Interpretation: The Money Flow Dashboard displays green (🟢) and red (🔴) symbols to indicate when the Money Flow is in green or in red zone. You can also leverage the Money Flow values on the dashboard to better interpret sentiment and its changes.
3. Dashboard Placement: To maximize effectiveness, consider placing the Money Flow Dashboard alongside your Market Cipher indicator, allowing for seamless analysis of market dynamics on multiple timeframes at the same time.
4. Confirmation and Strategy: Consider Money Flow Dashboard signals as confirmation for your trading strategy. For instance, in an uptrend, look for long opportunities when the dashboard displays consistent green symbols. Conversely, in a downtrend, focus on short opportunities when red symbols dominate.
5. Risk Management: As with any indicator, use Money Flow Dashboard in conjunction with proper risk management techniques. Avoid trading solely based on indicator signals; instead, integrate them into a comprehensive trading plan.
Coiled Moving AveragesThis indicator detects when 3 moving averages converge and become coiled. This indicates volatility contraction which often leads to volatility expansion, i.e. large price movements.
Moving averages are considered coiled when the percent difference from each moving average to the others is less than the Coil Tolerance % input value.
This indicator is unique in that it detects when moving averages converge within a specified percent range. This is in contrast to other indicators that only detect moving average crossovers, or the distance between price and a moving average.
This indicator includes options such as:
- % difference between the MAs to be considered coiled
- type and length of MAs
- background color to indicate when the MAs are coiled
- arrows to indicate if price is above or below the MAs when they become coiled
While coiling predicts an increased probability for volatility expansion, it does not necessarily predict the direction of expansion. However, the arrows which indicate whether price is above or below the moving average coil may increase the odds of a move in that direction. Bullish alignment of the moving averages (faster MAs above the slower MAs) may also increase the odds of a bullish break, while bearish alignment may increase the odds of a bearish break.
Note that mean reversion back to the MA coil is common after initial volatility expansion. This can present an entry opportunity for traders, as mean reversion may be followed by continuation in the direction of the initial break.
Experiment with different settings and timeframes to see how coiled MAs can help predict the onset of volatility.
BINANCE-BYBIT Cross Chart: Spot-Perpetual CorrelationName: "Binance-Bybit Cross Chart: Spot-Perpetual Correlation"
Category: Scalping, Trend Analysis
Timeframe: 1M, 5M, 30M, 1D (depending on the specific technique)
Technical analysis: This indicator facilitates a comparison between the price movements shown on the Binance spot chart and the Bybit perpetual chart, with the aim of discerning the correlation between the two charts and identifying the dominant market trends. It automatically generates the corresponding chart based on the ticker selected in the primary chart. When a Binance pair is selected in the main chart, the indicator replicates the Bybit perpetual chart for the same pair and timeframe, and vice versa, selecting the Bybit perpetual chart as the primary chart generates the Binance spot chart.
Suggested use: You can utilize this tool to conduct altcoin trading on Binance or Bybit, facilitating the comparison of price actions and real-time monitoring of trigger point sensitivity across both exchanges. We recommend prioritizing the Binance Spot chart in the main panel due to its typically longer historical data availability compared to Bybit.
The primary objective is to efficiently and automatically manage the following three aspects:
- Data history analysis for higher timeframes, leveraging the extensive historical data of the Binance spot market. Variations in indicators such as slow moving averages may arise due to differences in historical data between exchanges.
- Assessment of coin liquidity on both exchanges by observing candlestick consistency on smaller timeframes or the absence of gaps. In the crypto market, clean charts devoid of gaps indicate dominance and offer enhanced reliability.
- Identification of precise trigger point levels, including daily, previous day, or previous week highs and lows, which serve as sensitive areas for breakout or reversal operations.
All-Time High (ATH) and All-Time Low (ATL) levels may vary significantly across exchanges due to disparities in historical data series.
This tool empowers traders to make informed decisions by leveraging historical data, liquidity insights, and precise trigger point identification across Binance Spot and Bybit Perpetual market.
Configuration:
EMA length:
- EMA 1: Default 5, user configurable
- EMA 2: Default 10, user configurable
- EMA 3: Default 60, user configurable
- EMA 4: Default 223, user configurable
- Additional Average: Optional display of an additional average, such as a 20-period average.
Chart Elements:
- Session separator: Indicates the beginning of the current session (in blue)
- Background: Indicates an uptrend (60 > 223) with a green background and a downtrend (60 < 223) with a red background.
Instruments:
- EMA Daily: Shows daily averages on an intraday timeframe.
- EMA levels 1h - 30m: Shows the levels of the 1g-30m EMAs.
- EMA Levels Highest TF: Provides the option to select additional EMA levels from the major timeframes, customizable via the drop-down menu.
- "Hammer Detector: Marks hammers with a green triangle and inverted hammers with a red triangle on the chart
- "Azzeramento" signal on TF > 30m: Indicates a small candlestick on the EMA after a dump.
- "No Fomo" signal on TF < 30m: Indicates a hyperextended movement.
Trigger Points:
- Today's highs and lows: Shows the opening price of the day's candlestick, along with the day's highs and lows (high in purple, low in red, open in green).
- Yesterday's highs and lows: Displays the opening price of the daily candlestick, along with the previous day's highs and lows (high in yellow, low in red).
You can customize the colors in "Settings" > "Style".
It is best used with the Scalping The Bull indicator on the main panel.
Credits:
@tumiza999: for tests and suggestions.
Thanks for your attention, happy to support the TradingView community.
Fibonacci Adaptive Timeframe EMA (FAT EMA)The "Fibonacci Adaptive Timeframe EMA" is a sophisticated trading indicator designed for the TradingView platform, leveraging the power of Exponential Moving Averages (EMAs) determined by Fibonacci sequence lengths to provide traders with dynamic market insights. This indicator overlays directly on the price chart, offering a unique blend of trend analysis, smoothing techniques, and timeframe adaptability, making it an invaluable tool for traders looking to enhance their technical analysis strategy.
Key Features
1. Fibonacci-Based EMA Lengths: Utilizes the Fibonacci sequence to select EMA lengths, incorporating natural mathematical ratios believed to be significant in financial markets. The available lengths range from 1 to 987, allowing for detailed trend analysis over various periods.
2. Multiple Smoothing Methods: Offers the choice between several smoothing techniques, including Simple Moving Average (SMA), Exponential Moving Average (EMA), Smoothed Moving Average (SMMA or RMA), Weighted Moving Average (WMA), and Volume Weighted Moving Average (VWMA). This versatility ensures that users can tailor the indicator to suit their analytical preferences.
3. Timeframe Adaptability: Features the ability to fetch and calculate EMAs from different timeframes, providing a multi-timeframe analysis within a single chart view. This adaptability gives traders a broader perspective on market trends, enabling more informed decision-making.
4. Dynamic Visualization Options: Traders can customize the display to suit their analysis needs, including toggling the visibility of Fibonacci EMA lines, EMA prices, and smoothed EMA lines. Additionally, forecast lines can be projected into the future, offering speculative insights based on current trends.
5. Ema Tail Visualization: An innovative feature allowing for the visualization of the 'tail' or the continuation of EMA lines, which can be particularly useful for identifying trend persistence or reversal points.
6. User-friendly Customization: Through a series of input options, traders can easily adjust the source data, Fibonacci lengths, smoothing method, and visual aspects such as line colors and transparency, ensuring a seamless integration into any trading strategy.
Application and Use Cases
The "Fibonacci Adaptive Timeframe EMA" indicator is designed for traders who appreciate the significance of Fibonacci numbers in market analysis and seek a flexible tool to analyze trends across different timeframes. Whether it's for scalping, day trading, or long-term investing, this indicator can provide valuable insights into price dynamics, trend strengths, and potential reversal points. Its adaptability makes it suitable for various asset classes, including stocks, forex, commodities, and cryptocurrencies.
Trend, Momentum, Volume Delta Ratings Emoji RatingsThis indicator provides a visual summary of three key market conditions - Trend, Momentum, and Volume Delta - to help traders quickly assess the current state of the market. The goal is to offer a concise, at-a-glance view of these important technical factors.
Trend (HMA): The indicator uses a Hull Moving Average (HMA) to assess the overall trend direction. If the current price is above the HMA, the trend is considered "Good" or bullish (represented by a 😀 emoji). If the price is below the HMA, the trend is "Bad" or bearish (🤮). If the price is equal to the HMA, the trend is considered "Neutral" (😐).
Momentum (ROC): The Rate of Change (ROC) is used to measure the momentum of the market. A positive ROC indicates "Good" or bullish momentum (😀), a negative ROC indicates "Bad" or bearish momentum (🤮), and a zero ROC is considered "Neutral" (😐).
Volume Delta: The indicator calculates the difference between the current trading volume and a simple moving average of the volume (Volume Delta). If the Volume Delta is above a user-defined threshold, it is considered "Good" or bullish (😀). If the Volume Delta is below the negative of the threshold, it is "Bad" or bearish (🤮). Values within the threshold are considered "Neutral" (😐).
The indicator displays these three ratings in a compact table format in the top-right corner of the chart. The table uses color-coding to quickly convey the overall market conditions - green for "Good", red for "Bad", and gray for "Neutral".
This indicator can be useful for traders who want a concise, at-a-glance view of the current market trend, momentum, and volume activity. By combining these three technical factors, traders can get a more well-rounded understanding of the market conditions and potentially identify opportunities or areas of concern more easily.
The user can customize the indicator by adjusting the lengths of the HMA, ROC, and Volume moving average, as well as the Volume Delta threshold. The colors used in the table can also be customized to suit the trader's preferences.
On Chart Reverse PMARPIntroducing the On Chart Reverse PMARP
Concept
The PMAR/PMARP is an indicator which calculates :
The ratio between a chosen source price and a user defined moving average ( Price Moving Average Ratio ).
The percentile of the PMAR over an adjustable lookback period ( Price Moving Average Ratio Percentile ).
Here I have 'reverse engineered' the PMAR / PMARP formulas to derive several functions.
These functions calculate the chart price at which the PMARP will cross a particular PMARP level.
I have employed those functions here to give the "crossover" price levels for :
Scale high level
High alert level
High test level
Mid-Line
Low test level
Low alert level
Scale low level
Knowing the price at which these various user defined PMARP levels will be crossed can be useful in setting price levels that trigger components of various strategies.
For example: A trader can use the reverse engineered upper high alert price level, to set a take profit limit order on a long trade, which was entered when PMARP was low.
This 'On Chart' RPMARP indicator displays these 'reverse engineered' price levels as plotted lines on the chart.
This allows the user to see directly on the chart the interplay between the various crossover levels and price action.
This allows for more intuitive Technical Analysis, and allows traders to precisely plan entries, exits and stops for their PMARP based trades.
It optionally plots the user defined moving average from which the PMARP is derived.
It also optionally plots the 'Reverse engineered' midline, test level lines, visual alert level lines, scale max. and min. level lines, and background alert signal bars.
Main Properties :
Price Source :- Choice of price values or external value from another indicator ( default *Close ).
PMAR Length :- User defined time period to be used in calculating the Moving Average for the Price Moving Average Ratio and the PMAR component of the PMARP ( default *21 ).
MA Type :- User defined type of Moving Average which creates the MA for the Price Moving Average Ratio and the PMAR component of the PMARP ( default *EMA ).
Checkbox and color selection box for the optionally plotted Moving Average line.
Price Moving Average Ratio Percentile Properties :
PMARP Length :- The lookback period to be used in calculating the Price Moving Average Ratio Percentile ( default *350 ).
PMARP Level Settings :
Scale High :- Scale high level ( Locked at 100 ).
Hi Alert :- High alert level ( default *99 ).
Hi Test :- High test level ( default *70 ).
Lid Line :- Mid line level ( Locked at 50 ).
Lo Test :- Low test level ( default *30 ).
Lo Alert :- Low alert level ( default *1 ).
Scale Low :- Scale low level ( Locked at 0 ).
Checkboxes and color selection boxes for each of the optionally plotted lines.
PMARP MA Settings :
Checkbox to optionally plot 'reverse engineered' PMARP MA line.
PMARP MA Length :- The time period to be used in calculating the signal Moving Average for the Line Plot ( default *20 ).
PMARP MA Type :- The type of Moving Average which creates the signal Moving Average for the Line Plot ( default *EMA ).
Color Type :- User choice from dropdown between "single" or "dual" line color ( default *dual ).
Single Color :- Color selection box.
Dual Color :- Color selection box. Note: Defines the color of the signal MA when the MA is falling in "dual" line coloring mode.
Signal Bar Settings :
Signal Bars Transparency :- Sets the transparency of the vertical signal bars ( default *70 ).
Checkboxes and color selection boxes for Upper/Lower alert signal bars.
RSI EMA WMA (hieuhn)Indicator: RSI & EMA & WMA (14-9-45)
This indicator, named "RSI & EMA & WMA", is a versatile tool designed to provide insights into market momentum and trend strength by combining multiple technical indicators.
The Relative Strength Index (RSI) is a popular momentum oscillator used to measure the speed and change of price movements. In this indicator, RSI is plotted alongside its Exponential Moving Average (EMA) and Weighted Moving Average (WMA). EMA and WMA are smoothing techniques applied to RSI to help identify trends more clearly.
Key features of this indicator include:
RSI: The main RSI line is plotted on the chart, offering insights into overbought and oversold conditions.
EMA of RSI: The Exponential Moving Average of RSI smooths out short-term fluctuations, aiding in trend identification.
WMA of RSI: The Weighted Moving Average of RSI gives more weight to recent data points, providing a faster response to price changes.
Additionally, this indicator marks specific RSI levels considered as bullish and bearish trends, helping traders identify potential entry or exit points based on market sentiment.
By combining these technical indicators, traders can gain a comprehensive understanding of market dynamics, helping them make more informed trading decisions.
Fibonacci Timeframe Adaptive EMAThe "Fibonacci Timeframe Adaptive EMA" is a sophisticated trading indicator designed for the TradingView platform, leveraging the power of Exponential Moving Averages (EMAs) determined by Fibonacci sequence lengths to provide traders with dynamic market insights. This indicator overlays directly on the price chart, offering a unique blend of trend analysis, smoothing techniques, and timeframe adaptability, making it an invaluable tool for traders looking to enhance their technical analysis strategy.
Key Features
1. Fibonacci-Based EMA Lengths: Utilizes the Fibonacci sequence to select EMA lengths, incorporating natural mathematical ratios believed to be significant in financial markets. The available lengths range from 1 to 987, allowing for detailed trend analysis over various periods.
2. Multiple Smoothing Methods: Offers the choice between several smoothing techniques, including Simple Moving Average (SMA), Exponential Moving Average (EMA), Smoothed Moving Average (SMMA or RMA), Weighted Moving Average (WMA), and Volume Weighted Moving Average (VWMA). This versatility ensures that users can tailor the indicator to suit their analytical preferences.
3. Timeframe Adaptability: Features the ability to fetch and calculate EMAs from different timeframes, providing a multi-timeframe analysis within a single chart view. This adaptability gives traders a broader perspective on market trends, enabling more informed decision-making.
4. Dynamic Visualization Options: Traders can customize the display to suit their analysis needs, including toggling the visibility of Fibonacci EMA lines, EMA prices, and smoothed EMA lines. Additionally, forecast lines can be projected into the future, offering speculative insights based on current trends.
5. Ema Tail Visualization: An innovative feature allowing for the visualization of the 'tail' or the continuation of EMA lines, which can be particularly useful for identifying trend persistence or reversal points.
6. User-friendly Customization: Through a series of input options, traders can easily adjust the source data, Fibonacci lengths, smoothing method, and visual aspects such as line colors and transparency, ensuring a seamless integration into any trading strategy.
Application and Use Cases
The "Fibonacci Timeframe Adaptive EMA" indicator is designed for traders who appreciate the significance of Fibonacci numbers in market analysis and seek a flexible tool to analyze trends across different timeframes. Whether it's for scalping, day trading, or long-term investing, this indicator can provide valuable insights into price dynamics, trend strengths, and potential reversal points. Its adaptability makes it suitable for various asset classes, including stocks, forex, commodities, and cryptocurrencies.
Volatility Adjusted Weighted DEMA [BackQuant]Volatility Adjusted Weighted DEMA
The Volatility Adjusted Weighted Double Exponential Moving Average (VAWDEMA) by BackQuant is a sophisticated technical analysis tool designed for traders seeking to integrate volatility into their moving average calculations. This innovative indicator adjusts the weighting of the Double Exponential Moving Average (DEMA) according to recent volatility levels, offering a more dynamic and responsive measure of market trends.
Primarily, the single Moving average is very noisy, but can be used in the context of strategy development, where as the crossover, is best used in the context of defining a trading zone/ macro uptrend on higher timeframes.
Why Volatility Adjustment is Beneficial
Volatility is a fundamental aspect of financial markets, reflecting the intensity of price changes. A volatility adjustment in moving averages is beneficial because it allows the indicator to adapt more quickly during periods of high volatility, providing signals that are more aligned with the current market conditions. This makes the VAWDEMA a versatile tool for identifying trend strength and potential reversal points in more volatile markets.
Understanding DEMA and Its Advantages
DEMA is an indicator that aims to reduce the lag associated with traditional moving averages by applying a double smoothing process. The primary benefit of DEMA is its sensitivity and quicker response to price changes, making it an excellent tool for trend following and momentum trading. Incorporating DEMA into your analysis can help capture trends earlier than with simple moving averages.
The Power of Combining Volatility Adjustment with DEMA
By adjusting the weight of the DEMA based on volatility, the VAWDEMA becomes a powerful hybrid indicator. This combination leverages the quick responsiveness of DEMA while dynamically adjusting its sensitivity based on current market volatility. This results in a moving average that is both swift and adaptive, capable of providing more relevant signals for entering and exiting trades.
Core Logic Behind VAWDEMA
The core logic of the VAWDEMA involves calculating the DEMA for a specified period and then adjusting its weighting based on a volatility measure, such as the average true range (ATR) or standard deviation of price changes. This results in a weighted DEMA that reflects both the direction and the volatility of the market, offering insights into potential trend continuations or reversals.
Utilizing the Crossover in a Trading System
The VAWDEMA crossover occurs when two VAWDEMAs of different lengths cross, signaling potential bullish or bearish market conditions. In a trading system, a crossover can be used as a trigger for entry or exit points:
Bullish Signal: When a shorter-period VAWDEMA crosses above a longer-period VAWDEMA, it may indicate an uptrend, suggesting a potential entry point for a long position.
Bearish Signal: Conversely, when a shorter-period VAWDEMA crosses below a longer-period VAWDEMA, it might signal a downtrend, indicating a possible exit point or a short entry.
Incorporating VAWDEMA crossovers into a trading strategy can enhance decision-making by providing timely and adaptive signals that account for both trend direction and market volatility. Traders should combine these signals with other forms of analysis and risk management techniques to develop a well-rounded trading strategy.
Alert Conditions For Trading
alertcondition(vwdema>vwdema , title="VWDEMA Long", message="VWDEMA Long - {{ticker}} - {{interval}}")
alertcondition(vwdema<vwdema , title="VWDEMA Short", message="VWDEMA Short - {{ticker}} - {{interval}}")
alertcondition(ta.crossover(crossover, 0), title="VWDEMA Crossover Long", message="VWDEMA Crossover Long - {{ticker}} - {{interval}}")
alertcondition(ta.crossunder(crossover, 0), title="VWDEMA Crossover Short", message="VWDEMA Crossover Short - {{ticker}} - {{interval}}")
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
EMA Cross Dashboard | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Exponential Moving Average (EMA) Cross Dashboard! This dashboard let's you select a source for the calculation of the EMA of it, then let's you enter 2 lengths for up to 5 timeframes, plotting their crosses in the chart.
Features of the new EMA Cross Dashboard :
Shows EMA Crosses Across Up To 5 Different Timeframes.
Select Any Source, Including Other Indicators.
Customizable Dashboard.
📌 HOW DOES IT WORK ?
EMA is a widely used indicator within trading community, it is similar to a Simple Moving Average (SMA) but places more weight on recent prices, making it more reactive to current trends. Crosses of EMA lines can be helpful to determine strong bullish & bearish movements of an asset. This indicator shows finds crosses across 5 different timeframes in a dashboard and plots them in your chart for ease of use.
🚩UNIQUENESS
This dashboard cuts through the hassle of manual EMA cross calculations and plotting. It offers flexibility by allowing various data sources (even custom indicators) and customization through enabling / disabling individual timeframes. The clear visualization lets you see EMA crosses efficiently.
⚙️SETTINGS
1. Timeframes
You can set up to 5 timeframes & 2 lenghts to detect crosses for each timeframe here. You can also enable / disable them.
2. General Configuration
EMA Source -> You can select the source for the calculation of the EMA here. You can select sources from other indicators as well as more general sources like close, high and low price.
SMA Cross Dashboard | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Simple Moving Average (SMA) Cross Dashboard! This dashboard let's you select a source for the calculation of the SMA of it, then let's you enter 2 lengths for up to 5 timeframes, plotting their crosses in the chart.
Features of the new SMA Cross Dashboard :
Shows SMA Crosses Across Up To 5 Different Timeframes.
Select Any Source, Including Other Indicators.
Customizable Dashboard.
📌 HOW DOES IT WORK ?
SMA is a widely used indicator within trading community, it simply works by taking the mathematical average of a source by desired length. Crosses of SMA lines can be helpful to determine strong bullish & bearish movements of an asset. This indicator shows finds crosses across 5 different timeframes in a dashboard and plots them in your chart for ease of use.
🚩UNIQUENESS
This dashboard cuts through the hassle of manual SMA cross calculations and plotting. It offers flexibility by allowing various data sources (even custom indicators) and customization through enabling / disabling individual timeframes. The clear visualization lets you see SMA crosses efficiently.
⚙️SETTINGS
1. Timeframes
You can set up to 5 timeframes & 2 lenghts to detect crosses for each timeframe here. You can also enable / disable them.
2. General Configuration
SMA Source -> You can select the source for the calculation of the SMA here. You can select sources from other indicators as well as more general sources like close, high and low price.
Range Finder [UAlgo]🔶 Description:
The "Range Finder " indicator aims at identifying and visualizing price ranges within a specified number of candles. By utilizing the Average True Range (ATR) indicator and Simple Moving Average (SMA), it detects potential breakout conditions and tracks consecutive candles that remain within the breakout range. This indicator offers flexibility by allowing users to customize settings such as range length, method for determining range breaks (based on either candle close or wick), and visualization options for displaying range breaks on the chart.
🔶 Key Features
Identifying Ranges: The Range Finder automatically adapts to the market by continuously evaluating the Average True Range (ATR) and its Simple Moving Average (SMA). This helps in dynamically adjusting the range based on market volatility.
Range Length: Users can specify the number of candles to be used for constructing the range via the "Range Length" input setting. This allows for customization based on trading strategies and preferences.
Range Break Method: The indicator offers the flexibility to choose between two methods for identifying range breaks. Users can select between "Close" or "Wick" based on their preference for using the closing price or the highs and lows (including wicks) of candles for defining the breakout.
Show Range Breaks: This option enables visual representation of range breaks on the chart. When activated, labels with the letter "B" will appear at the breakout point, colored according to the breakout direction (upward breakouts in the chosen up range color and downward breakouts in the chosen down range color).
Range Color Customization: The indicator provides the ability to personalize the visual appearance of the range by selecting preferred colors for ranges indicating potential upward and downward breakouts.
🔶 Disclaimer
It's important to understand that the Range Finder indicator is intended for informational purposes only and should not be solely relied upon for making trading decisions. Trading financial instruments involves inherent risks, and past performance is not necessarily indicative of future results.
DEMA RSI Overlay [BackQuant]DEMA RSI Overlay
PLEASE Read the following, knowing what an indicator does at its core before adding it into a system is pivotal. The core concepts can allow you to include it in a logical and sound manner.
Anyways,
BackQuant's new trading indicator that blends the Double Exponential Moving Average (DEMA) with the Relative Strength Index (RSI) to create a unique overlay on the trading chart. This combination is not arbitrary; both the DEMA and RSI are revered for their distinct advantages in trading strategy development. Let's delve into the core components of this script, the rationale behind choosing DEMA and RSI, the logic of long and short signals, and its practical trading applications.
Understanding DEMA
DEMA is an enhanced version of the conventional exponential moving average that aims to reduce the lag inherent in traditional averages. It does this by applying more weight to recent prices. The reduction in lag makes DEMA an excellent tool for tracking price trends more closely. In the context of this script, DEMA serves as the foundation for the RSI calculation, offering a smoother and more responsive signal line that can provide clearer trend indications.
Why DEMA?
DEMA is chosen for its responsiveness to price changes. This characteristic is particularly beneficial in fast-moving markets where entering and exiting positions quickly is crucial. By using DEMA as the price source, the script ensures that the signals generated are timely and reflective of the current market conditions, reducing the risk of entering or exiting a trade based on outdated information.
Integrating RSI
The RSI, a momentum oscillator, measures the speed and change of price movements. It oscillates between zero and 100 and is typically used to identify overbought or oversold conditions. In this script, the RSI is calculated based on DEMA, which means it inherits the responsiveness of DEMA, allowing traders to spot potential reversals or continuation signals sooner.
Why RSI?
Incorporating RSI offers a measure of price momentum and market conditions relative to past performance. By setting thresholds for long (buy) and short (sell) signals, the script uses RSI to identify potential turning points in the market, providing traders with strategic entry and exit points.
Calculating Long and Short Signals
Long Signals : These are generated when the RSI of the DEMA crosses above the longThreshold (set at 70 by default) and the closing price is not above the upper volatility band. This suggests that the asset is gaining upward momentum while not being excessively overbought, presenting a potentially favorable buying opportunity.
Short Signals : Generated when the RSI of the DEMA falls below the shortThreshold (set at 55 by default). This indicates that the asset may be losing momentum or entering a downtrend, signaling a possible selling or shorting opportunity.
Logical Soundness
The logic of combining DEMA with RSI for generating trade signals is sound for several reasons:
Timeliness : The use of DEMA ensures that the price source for RSI calculation is up-to-date, making the momentum signals more relevant.
Balance : By setting distinct thresholds for long and short signals, the script balances sensitivity and specificity, aiming to minimize false signals while capturing genuine market movements.
Adaptability : The inclusion of user inputs for periods and thresholds allows traders to customize the indicator to fit various trading styles and timeframes.
Trading Use-Cases
This DEMA RSI Overlay indicator is versatile and can be applied across different markets and timeframes. Its primary use-cases include:
Trend Following: Traders can use it to identify the start of a new trend or the continuation of an existing trend.
Swing Trading: The indicator's sensitivity to price changes makes it ideal for swing traders looking to capitalize on short to medium-term price movements.
Risk Management: By providing clear long and short signals, it helps traders manage their positions more effectively, potentially reducing the risk of significant losses.
Final Note
We have also decided to add in the option of standard deviation bands, calculated on the DEMA, this can be used as a point of confluence rendering trading ranges. Expanding when volatility is high and compressing when it is low.
For example:
This provides the user with a 1, 2, 3 standard deviation band of the DEMA.
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
Multi-Timeframe SMA Crossover Indicator## Description of the "Multi-Timeframe SMA Crossover Indicator" script
### Introduction:
The "Multi-Timeframe SMA Crossover Indicator" script is a technical indicator created in Pine Script for the TradingView platform. It is a technical indicator that helps traders identify signals of simple moving average (SMA) crossovers on different timeframes.
### Features:
1. **Multi-Timeframe Analysis:** The script covers various timeframes, allowing traders to analyze SMA crossover signals on different time scales.
2. **SMA Crossover Signals:** The script identifies moments when the crossover of 20 and 40 simple moving averages occurs on timeframes ranging from 1 minute to 120 minutes.
3. **Visualization:** It visualizes SMA crossover signals on the chart, making it easy for traders to identify trend reversal points.
### How to Use:
1. **Interpreting Signals:** A positive signal (green) indicates that the SMA crossover suggests a potential uptrend, while a negative signal (red) suggests a potential downtrend.
2. **Multiple Confirmation:** Traders can seek trend confirmation by analyzing signals on different timeframes. Confirming signals on multiple timeframes can increase confidence in the trade.
### Application:
The "Multi-Timeframe SMA Crossover Indicator" script can be used as a supplementary tool in making investment decisions in financial markets, especially when analyzing trends and identifying entry or exit points.
### Notes:
1. The script is based on simple moving averages (SMA), which can be useful for traders using trend analysis strategies.
2. Investors should use other technical analysis indicators and tools in conjunction with this indicator to obtain a more comprehensive market analysis.
### Conclusion:
The "Multi-Timeframe SMA Crossover Indicator" script is a useful tool for traders who want to analyze trend changes on different timeframes. By using this tool, investors can make better-informed investment decisions in financial markets.
EMA 20/50/100/200 PricesDescription:
Introducing the EMA Indicator with Dynamic Labels, a unique addition to the TradingView Public Library. This innovative script enhances trend analysis and decision-making by overlaying four Exponential Moving Averages (EMAs) – 20, 50, 100, and 200 periods – on your chart, each with a distinct color for quick identification.
What sets this script apart?
Unlike standard EMA indicators, this script includes dynamic labels that display the current price level of each EMA at the latest price bar. This feature provides an instant snapshot of market sentiment, offering insights into potential dynamic support or resistance levels.
Key Features:
Customizable EMA Periods: Tailor the EMA periods according to your trading strategy, allowing for flexibility across different timeframes and assets.
Adaptive Label Sizes: A unique function adjusts label sizes based on user input, ensuring optimal readability across various display settings.
Color-Coded EMAs: Quickly differentiate between the EMAs with pre-defined colors, enhancing visual clarity and trend recognition.
How to Use:
Trend Analysis: Use the EMAs to identify the overall market trend. When shorter EMAs are above longer ones, it suggests a bullish trend, and vice versa.
Trade Entries and Exits: Look for crossovers of the EMAs as potential entry or exit signals. Dynamic labels will help you pinpoint the exact levels.
Customization: Adjust the EMA periods and label sizes under the indicator settings to match your trading style and preferences.
Underlying Concepts:
This script utilizes the classic EMA calculation but innovates by integrating dynamic, real-time labels and customizable periods. The choice of four different periods allows for a nuanced analysis of trend strength and direction, catering to both short-term traders and long-term investors.
Originality and Contribution:
The "Advanced EMA Indicator with Dynamic Labels" is original in its approach to providing real-time, actionable data through dynamic labels. It caters to the community's need for more interactive and informative indicators that go beyond basic trend analysis.
Conclusion:
Whether you're a novice trader seeking to understand market trends or an experienced investor looking for nuanced analysis tools, this script offers valuable insights and flexibility. It stands as a testament to the power of Pine Script in creating practical, user-centric trading tools.
Johnny's Moving Average RibbonProps to Madrid for creating the original script: Madrid Moving Average Ribbon.
All I did was upgrade it to pinescript v5 and added a few changes to the script.
Features and Functionality
Moving Average Types: The indicator offers a choice between exponential moving averages (EMAs) and simple moving averages (SMAs), allowing users to select the type that best fits their trading strategy.
Dynamic Color Coding: Each moving average line within the ribbon changes color based on its direction and position relative to a reference moving average, providing visual cues for market sentiment and trend strength.
Lime Green: Indicates an uptrend and potential long positions, shown when a moving average is rising and above the longer-term reference MA.
Maroon: Suggests caution for long positions or potential short reentry points, displayed when a moving average is rising but below the reference MA.
Ruby Red: Represents a downtrend, suitable for short positions, shown when a moving average is falling and below the reference MA.
Green: Signals potential reentry points for downtrends or warnings for uptrend reversals, displayed when a moving average is falling but above the reference MA.
Usage and Application
Trend Identification: Traders can quickly ascertain the market's direction at a glance by observing the predominant color of the ribbon and its orientation.
Trade Entry and Exit Points: The color transitions within the ribbon can signal potential entry or exit points, with changes from green to lime or red to maroon indicating shifts in market momentum.
Customization: Users have the flexibility to toggle between exponential and simple moving averages, allowing for a tailored analytical approach that aligns with their individual trading preferences.
Technical Specifications
The ribbon consists of multiple moving averages calculated over different periods, typically ranging from shorter to longer-term intervals to capture various aspects of market behavior.
The color dynamics are determined by comparing each moving average to a reference point, often a longer-term moving average within the ribbon, to assess the relative trend strength and direction.
MACD on RSIThe MACD on RSI indicator combines elements of the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI). It calculates the RSI on a specified source with a customizable length, then applies two exponential moving averages (EMAs) to the RSI values. The difference between these EMAs forms the MACD line, visually representing the momentum of the RSI.
LSMA Z-Score [BackQuant]LSMA Z-Score
Main Features and Use in the Trading Strategy
- The indicator normalizes the LSMA into a detrended Z-Score, creating an oscillator with standard deviation levels to indicate trend strength.
- Adaptive coloring highlights the rate of change and potential reversals, with different colors for positive and negative changes above and below the midline.
- Extreme levels with adaptive coloring indicate the probability of a reversion, providing strategic entry or exit points.
- Alert conditions for crossing the midline or significant shifts in trend direction enhance its utility within a trading strategy.
1. What is an LSMA?
The Least Squares Moving Average (LSMA) is a technical indicator that smoothens price data to help identify trends. It uses the least squares regression method to fit a straight line through the selected price points over a specified period. This approach minimizes the sum of the squares of the distances between the line and the price points, providing a more statistically grounded moving average that can adapt more smoothly to price changes.
2. What is a Z-Score?
A Z-Score is a statistical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean. If a Z-Score is 0, it indicates that the data point's score is identical to the mean score. A Z-Score helps in understanding if a data point is typical for a given data set or if it is atypical. In finance, a Z-Score is often used to measure how far a piece of data is from the average of a set, which can be helpful in identifying outliers or unusual data points.
3. Why Turning LSMA into a Z-Score is Innovative and Its Benefits
Converting LSMA into a Z-Score is innovative because it combines the trend identification capabilities of the LSMA with the statistical significance testing of Z-Scores. This transformation normalizes the LSMA, creating a detrended oscillator that oscillates around a mean (zero line), with standard deviation levels to show trend strength. This method offers several benefits:
Enhanced Trend Detection:
- By normalizing the LSMA, traders can more easily identify when the price is deviating significantly from its trend, which can signal potential trading opportunities.
Standardization:
- The Z-Score transformation allows for comparisons across different assets or time frames, as the score is standardized.
Objective Measurement of Trend Strength:
- The use of standard deviation levels provides an objective measure of trend strength and volatility.
4. How It Can Be Used in the Context of a Trading System
This indicator can serve as a versatile tool within a trading system for a range of things:
Trend Confirmation:
- A positive Z-Score can confirm an uptrend, while a negative Z-Score can confirm a downtrend, providing traders with signals to enter or exit trades.
Oversold/Overbought Conditions:
- Extreme Z-Score levels can indicate overbought or oversold conditions, suggesting potential reversals or pullbacks.
Volatility Assessment:
- The standard deviation levels can help traders assess market volatility, with wider bands indicating higher volatility.
5. How It Can Be Used for Trend Following
For trend following strategies, this indicator can be particularly useful:
Trend Strength Indicator:
- By monitoring the Z-Score's distance from zero, traders can gauge the strength of the current trend, with larger absolute values indicating stronger trends.
Directional Bias:
- Positive Z-Scores can be used to establish a bullish bias, while negative Z-Scores can establish a bearish bias, guiding trend following entries and exits.
Color-Coding for Trend Changes :
- The adaptive coloring of the indicator based on the rate of change and extreme levels provides visual cues for potential trend reversals or continuations.
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
This is using the Midline Crossover:
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
Entry FraggerEntry Fragger is a simple buy signal indicator.
It is most suitable for cryptocurrency, especially for altcoins on the 5 minute to daily timeframe and is based on simple volume calculations, in combination with EMA's.
Main Signal Logic explained:
A buy signal is generated by counting candles with an above average sell volume of 130% to 170%, taking into account the candles position below and above the 50 and 200 EMA.
If criteria meet, the first green candle above the 50 EMA's suggests upcoming higher prices.
The indicator has 2 input variables.
"Signal Confirmations (0 - 7):" Changes signal accuracy by a defining an ammount of high sell volume candles necessary below the 50 EMA.
"Volume Calculation Base (9 - 200):" Sets the exponential volume multiplier, this affects candle coloring and the volume calculation inside the candle.
"Style Settings": Turn ON/OFF Signals, Cloud, Bar Coloring, EMA's, etc...
There are no generally suitable default numbers for those 2 inputs, those have to be tested out, depending on cryptocurrency and timeframe.
The calculation is very basic, the underlying idea being, market maker initiating range breakouts through rapid increase of volume above or below the EMA's .
Example settings:
SOLUSDT: Signal Confirmations: 2, Volume Calculation Base 13.
SOLUSDT: Signal Confirmations: 0, Volume Calculation Base 20.
As you can see it affects signals quite a lot, but staying accurate.
Finetune the inputs to your preference.
Risk to Reward, Stoploss, Take Profit, position sizing, etc... is up to the user.
Recommended entry is to wait for following candle closes, entering half of the candle size and setting Stoploss outside the structure, like this:
Or right below the candles open, for safety.
ChartRage - ELMAELMA - Exponential Logarithmic Moving Average
This is a new kind of moving average that is using exponential normalization of a logarithmic formula. The exponential function is used to average the weight on the moving average while the logarithmic function is used to calculate the overall price effect.
Features and Settings:
◻️ Following rate of change instead of absolute levels
◻️ Choose input source of the data
◻️ Real time signals through price interaction
◻️ Change ELMA length
◻️ Change the exponential decay rate
◻️ Customize base color and signal color
Equation of the ELMA:
This formula calculates a weighted average of the logarithm of prices, where more recent prices have a higher weight. The result is then exponentiated to return the ELMA value. This approach emphasizes the relative changes in price, making the ELMA sensitive to the % rate of change rather than absolute price levels. The decay rate can be adjusted in the settings.
Comparison EMA vs ELMA:
In this image we see the differences to the Exponential Moving Average.
Price Interaction and earlier Signals:
In this image we have added the bars, so we can see that the ELMA provides different signals of resistance and support zones and highlights them, by changing to the color yellow, when prices interact with the ELMA.
Strategy by trading Support and Resistance Zones:
The ELMA helps to evaluate trends and find entry points in bullish market conditions, and exit points in bearish conditions. When prices drop below the ELMA in a bull market, it is considered a buying signal. Conversely, in a bear market, it serves as an exit signal when prices trade above the ELMA.
Volatile Markets:
The ELMA works on all timeframes and markets. In this example we used the default value for Bitcoin. The ELMA clearly shows support and resistance zones. Depending on the asset, the length and the decay rate should be adjusted to provide the best results.
Real Time Signals:
Signals occur not after a candle closes but when price interacts with the ELMA level, providing real time signals by shifting color. (default = yellow)
Disclaimer* All analyses, charts, scripts, strategies, ideas, or indicators developed by us are provided for informational and educational purposes only. We do not guarantee any future results based on the use of these tools or past data. Users should trade at their own risk.
This work is licensed under Attribution-NonCommercial-ShareAlike 4.0 International
creativecommons.org
MOST on RSIMOST is applied on this RSI moving average with an extra default option added VAR/VIDYA (Variable Index Dynamic Moving Average)
MOST added on RSI has a Moving Average of RSI and a trailing percent stop level of the Moving Average that can be adjusted by changing the length of the MA and %percent of the stop level.
BUY SIGNAL when the Moving Average Line crosses above the MOST Line
LONG CONDITION when the Moving Average is above the MOST
SELL SIGNAL when Moving Average Line crosses below MOST Line
SHORT CONDITION when the Moving Average is below MOST
-MOST indicator advised to use with Variable Moving Average in the sideways market by its developer Anıl Özekşi, so there are a couple of alternative Moving Average OPTIONS to use in the calculation of MOST:
"SMA", "Bollinger Bands", "EMA", "SMMA (RMA)", "WMA", "VWMA", "VAR"
SMA: Simple Moving Average
EMA: Exponential Movin Average
SMMA (RMA: Smoothed Moving Average, Rolling/Running Moving Average
WMA: Weighted Moving Average
WWMA: Welles Wilder's Moving Average
VAR: Variable Index Dynamic Moving Average aka VIDYA
The Moving Average length and stop loss percent values must be increased for less reliable but late signals. Conversely, it must be decreased to have more and faster signals.
As this indicator is derived from TradingView's built-in RSI, it has Bollinger Bands bounding RSI and a tool that can be used for Bullish & Bearish divergences between the price and RSI. (Show Divergence option)
Finally, users may check the box "Show Signals" to visually see the BUY & SELL signals.
Predictive Channel SignalsThis script is a comprehensive tool designed to enhance trading strategies by utilizing predictive channels, multiple moving average types, and dynamic signal generation. The script is meticulously crafted for traders who seek to identify potential support and resistance levels, anticipate market reversals, and optimize entry and exit points through advanced technical analysis featuring with the help of codes provided by LuxAlgo.
Core Features:
Dynamic Predictive Channels: The script calculates predictive channels based on price movements and volatility, represented by adjustable factors for sensitivity and slope. These channels adapt to changing market conditions, providing real-time support and resistance levels.
Versatile Moving Averages: Users can select from a variety of moving average types, including SMA, EMA, SMMA (RMA), HullMA, WMA, VWMA, DEMA, and TEMA. This flexibility allows traders to tailor the analysis to their specific strategy and market view.
Signal Generation: The script generates buying and selling signals based on the interaction between moving averages and predictive channels. Signals are categorized into low, mid, and high tiers, indicating the strength and potential risk/reward of the trade opportunity.
Visual Cues and Customization: With an emphasis on usability, the script offers customizable color schemes for easy interpretation of bullish and bearish zones, moving averages, and trading signals. Traders can quickly identify market trends and reversal points at a glance.
Advanced Calculations: Utilizing calculations such as the Average True Range (ATR) for volatility assessment, the script ensures that signals are both sensitive to market dynamics and robust against false positives.
Ideal for Traders Who:
Prefer a technical analysis approach with a focus on moving averages and price channels.
Desire a customizable tool that can adapt to different trading styles and market conditions.
Seek to enhance their trading strategy with predictive insights and actionable signals.
Circle = Entry Point
End of polyline = Stop Loss
1 Circle = Low Strength
2 Circles = Mid Strength
3 Circles = High Strength
