Range Channel by Atilla YurtsevenThis script creates a dynamic channel around a user-selected moving average (MA). It calculates the relative difference between price and the MA, then finds the average of the positive differences and the negative differences separately. Using these averages, it plots upper and lower bands around the MA as well as a histogram-like oscillator to show when price moves above or below the average thresholds.
How It Works
Moving Average Selection
The indicator allows you to choose among multiple MA types (SMA, EMA, WMA, Linear Regression, etc.). Depending on your preference, it calculates the chosen MA for the selected lookback period.
Relative Difference Calculation
It then computes the percentage difference between the source (typically the closing price) and the MA. (diff = (src / ma - 1) * 100)
Positive & Negative Averages
- Positive differences are averaged and represent how far the price typically moves above the MA.
- Negative differences are similarly averaged for when price moves below the MA.
Range Channel & Oscillator
- The channel is plotted around the MA using the average positive and negative differences (Upper Edge and Lower Edge).
- The “Untrended” histogram plots the difference (diff). Green bars occur when price is above the MA on average, and red bars when below. Two additional lines mark the upper and lower average thresholds on this histogram.
How to Use
Identify Overbought/Oversold Zones: The upper edge can serve as a dynamic overbought level, while the lower edge can suggest potential oversold conditions. When the histogram approaches or crosses these levels, it may signal price extremes relative to its average movement.
Trend Confirmation: Compare price action relative to the channel. If price and the histogram consistently remain above the MA and upper threshold, it could indicate a stronger bullish trend. If they remain below, it might signal a prolonged bearish trend.
Entry/Exit Timings:
- Entry: Traders can look for moments when price breaks back inside the channel from an extreme, anticipating a mean reversion.
- Exit: Watching how price interacts with these dynamic edges can help define stop-loss or take-profit points.
Because these thresholds adapt over time based on actual price behavior, they can be more responsive than fixed-percentage bands. However, like all indicators, it’s most effective when used in conjunction with other technical and fundamental tools.
Disclaimer
This script is provided for educational and informational purposes only. It does not guarantee any specific outcome or profit. Use it at your own discretion and risk.
Trade smart, stay safe.
Atilla Yurtseven
Осцилляторы
Scalping Strategy RSI & ADXThis Pine Script implements a scalping strategy that leverages the Relative Strength Index (RSI) and the Average Directional Index (ADX) to identify short-term trading opportunities. The strategy is designed for traders who aim to profit from quick price movements in highly volatile markets.
Key Components:
RSI (Relative Strength Index):
RSI is used to identify overbought and oversold conditions in the market.
If RSI is below the oversold level (default: 30), the script generates a buy signal.
If RSI is above the overbought level (default: 70), the script generates a sell signal.
ADX (Average Directional Index):
ADX measures the strength of a trend.
The script only triggers buy or sell signals when ADX is above a specified threshold (default: 25), ensuring trades occur only in strong trending markets.
Combined Logic:
A buy condition is met when RSI is below the oversold level and ADX indicates a strong trend.
A sell condition is met when RSI is above the overbought level and ADX indicates a strong trend.
Inputs:
RSI Length: Period for RSI calculation (default: 14).
RSI Overbought Level: Threshold for overbought conditions (default: 70).
RSI Oversold Level: Threshold for oversold conditions (default: 30).
ADX Length: Period for ADX calculation (default: 14).
ADX Smoothing: Smoothing factor for ADX (default: 14).
ADX Threshold: Minimum value for ADX to consider a trend strong (default: 25).
Visual Signals:
Green upward arrows indicate buy signals.
Red downward arrows indicate sell signals.
Strategy Execution:
The script uses strategy.entry to open positions based on the defined conditions.
It plots RSI and ADX values for additional visual confirmation.
How to Use:
Apply this script to your TradingView chart.
Adjust the input parameters to suit your preferred market and timeframe.
Backtest the strategy on historical data to assess its performance.
Use in live markets with appropriate risk management measures.
This strategy is ideal for traders who prefer a systematic and rule-based approach to scalping. However, always test and validate the strategy before using it with real funds.
Improved Strategy with RSI Trending UpwardsThis strategy is trying to test RSI affect on price trend.
EMA + Stochastic Strategy (day trading)Setup Instructions
Exponential Moving Averages (EMA):
Use two EMAs:
50-period EMA for the overall trend.
20-period EMA for shorter-term movements.
Trend Confirmation:
If the 20 EMA is above the 50 EMA, focus on buy opportunities.
If the 20 EMA is below the 50 EMA, focus on sell opportunities.
Stochastic Oscillator:
Set Stochastic to a 14, 3, 3 period (default).
Overbought level = 80; Oversold level = 20.
Look for crossovers:
Buy: Stochastic %K crosses above %D in the oversold zone (below 20).
Sell: Stochastic %K crosses below %D in the overbought zone (above 80).
Entry and Exit Rules
Buy Signal:
The 20 EMA is above the 50 EMA, confirming an uptrend.
The Stochastic Oscillator is in the oversold zone (below 20), and %K crosses above %D.
Enter when the price retraces to and bounces off the 20 EMA in the direction of the trend.
Sell Signal:
The 20 EMA is below the 50 EMA, confirming a downtrend.
The Stochastic Oscillator is in the overbought zone (above 80), and %K crosses below %D.
Enter when the price retraces to and rejects off the 20 EMA in the direction of the trend.
Stop Loss and Take Profit
Stop Loss:
For buy trades: Place the stop loss below the recent swing low.
For sell trades: Place the stop loss above the recent swing high.
Take Profit:
Use a risk-to-reward ratio of 1:2 or higher.
Alternatively, exit the trade when Stochastic reaches the opposite extreme (80 for buys, 20 for sells).
Example
Scenario: GBP/USD on a 15-minute chart.
The 20 EMA is above the 50 EMA, indicating an uptrend.
The Stochastic Oscillator dips below 20, and %K crosses above %D.
Enter a buy trade when the price bounces off the 20 EMA.
Place a stop loss below the nearest swing low and a take profit at twice the risk.
Tips for Success
Avoid Choppy Markets: Ensure the EMAs are diverging, and there’s a clear trend.
Use Stochastic for Confirmation: Only take trades when the Stochastic Oscillator aligns with the EMA trend.
Combine with Price Action:
Watch for candlestick patterns (e.g., pin bars, engulfing candles) near the 20 EMA for additional confirmation.
Practice Discipline: Stick to your stop-loss and take-profit rules.
Wickiness IndexWickiness Index - Detect Indecision and Trend Exhaustion
The Wickiness Index is a versatile technical indicator designed to measure the proportion of wicks (upper and lower shadows) relative to the total range of price bars over a specified lookback period. It provides insights into market indecision, reversals, and trend exhaustion by analyzing the structural composition of candlesticks. The indicator calculates the lengths of upper and lower wicks along with the body of each candlestick. Each bar's wick length is expressed as a percentage of the total range (High - Low). The ratio is scaled to 0–100, where 100 represents entirely wicks with no body (indicating pure indecision) and 0 represents no wicks with only body (indicating strong directional movement). These values are then averaged over the lookback period (default = 5 bars) to provide a smoothed representation of wickiness, reducing noise and highlighting trends.
A high value, especially above 70, suggests indecision or potential reversals, as candlesticks dominated by wicks often appear near tops or bottoms. Conversely, low values below 30 indicate trend strength and strong momentum, useful for spotting breakouts and trend continuation. Mid-range values between 30 and 70 often indicate consolidation phases or gradual transitions between trends. Traders can adjust the lookback period to match their trading style, with shorter periods offering faster responses and longer periods providing smoother trends.
This indicator is particularly useful for trend reversal detection, breakout confirmation, and volatility filtering. It scales effectively across all timeframes, making it suitable for both intraday traders and long-term investors. When combined with volume analysis or trend-following indicators, the Wickiness Index can further strengthen trade signals. The visual design includes a blue line for the index and horizontal reference lines at 30 and 70, allowing for quick and intuitive interpretation.
The Wickiness Index offers a unique perspective on market sentiment and price action behavior, providing traders with valuable insights into potential turning points, momentum shifts, and market indecision. It is a powerful tool for improving decision-making in volatile markets and identifying areas where price trends may weaken or reverse.
Estrategia RSI + Volumen + EMA con Alertas//@version=5
indicator("Estrategia RSI + Volumen + EMA con Alertas", overlay=true)
// Parámetros de entrada
rsi_period = input.int(14, title="Periodo RSI")
rsi_overbought = input.int(70, title="RSI Sobrecompra")
rsi_oversold = input.int(30, title="RSI Sobreventa")
ema_period = input.int(50, title="Periodo EMA")
vol_avg_period = input.int(20, title="Periodo Promedio Volumen")
// Cálculo de indicadores
rsi = ta.rsi(close, rsi_period)
ema = ta.ema(close, ema_period)
vol_avg = ta.sma(volume, vol_avg_period)
// Condiciones de compra y venta
long_condition = (rsi <= rsi_oversold) and (volume > vol_avg) and (close > ema)
short_condition = (rsi >= rsi_overbought) and (volume > vol_avg) and (close < ema)
// Señales en el gráfico
plotshape(series=long_condition, title="Señal de Compra", location=location.belowbar, color=color.green, style=shape.labelup, text="Compra")
plotshape(series=short_condition, title="Señal de Venta", location=location.abovebar, color=color.red, style=shape.labeldown, text="Venta")
// Plot de la EMA
plot(ema, title="EMA", color=color.blue, linewidth=2)
// Líneas horizontales para niveles de RSI
hline(rsi_overbought, "Sobrecompra", color=color.red)
hline(rsi_oversold, "Sobreventa", color=color.green)
// Alertas
alertcondition(long_condition, title="Alerta de Compra", message="Señal de Compra: RSI en sobreventa, volumen alto y precio sobre EMA.")
alertcondition(short_condition, title="Alerta de Venta", message="Señal de Venta: RSI en sobrecompra, volumen alto y precio bajo EMA.")
FoX Combined IndicatorCMI+MACD+St.RSI Combined. A mix of these 3 indicators, with optimized data.
Just a test on SOLUSDT. Do not use this indicator alone!
Multiple Values TableThis Pine Script indicator, named "Multiple Values Table," provides a comprehensive view of various technical indicators in a tabular format directly on your trading chart. It allows traders to quickly assess multiple metrics without switching between different charts or panels.
Key Features:
Table Position and Size:
Users can choose the position of the table on the chart (e.g., top left, top right).
The size of the table can be adjusted (e.g., tiny, small, normal, large).
Moving Averages:
Calculates the 5-day Exponential Moving Average (5DEMA) using daily data.
Calculates the 5-week and 20-week EMAs (5WEMA and 20WEMA) using weekly data.
Indicates whether the current price is above or below these moving averages in percentage terms.
Drawdown and Williams VIX Fix:
Computes the drawdown from the 365-day high to the current close.
Calculates the Williams VIX Fix (WVF), which measures the volatility of the asset.
Shows both the current WVF and a 2% drawdown level.
Relative Strength Index (RSI):
Displays the current RSI and compares it to the RSI from 14 days ago.
Indicates whether the RSI is increasing, decreasing, or flat.
Stochastic RSI:
Computes the Stochastic RSI and compares it to the value from 14 days ago.
Indicates whether the Stochastic RSI is increasing, decreasing, or flat.
Normalized MACD (NMACD):
Calculates the Normalized MACD values.
Indicates whether the MACD is increasing, decreasing, or flat.
Awesome Oscillator (AO):
Calculates the AO on a daily timeframe.
Indicates whether the AO is increasing, decreasing, or flat.
Volume Analysis:
Displays the average volume over the last 22 days.
Shows the current day's volume as a percentage of the average volume.
Percentile Calculations:
Calculates the current percentile rank of the WVF and ATH over specified periods.
Indicates the percentile rank of the current volume percentage over the past period.
Table Display:
All these values are presented in a neatly formatted table.
The table updates dynamically with the latest data.
Example Use Cases:
Comprehensive Market Analysis: Quickly assess multiple indicators at a glance.
Trend and Momentum Analysis: Identify trends and momentum changes based on various moving averages and oscillators.
Volatility and Drawdown Monitoring: Track volatility and drawdown levels to manage risk effectively.
This script offers a powerful tool for traders who want to have a holistic view of various technical indicators in one place. It provides flexibility in customization and a user-friendly interface to enhance your trading experience.
Stochastic Multi-Timeframe, Dual Look Back- Marks the bars to blue if there are several stoch oversold conditions.
1. Dual look back
2. Multi time frame stochastics
Smooth RSI [MarktQuant]This indicator combines elements of the Relative Strength Index (RSI) and Rate of Change (RoC) to provide a smoother and potentially more insightful view of market momentum and price movement. The Smooth RSI calculates RSI values across four price points (high, open, low, close) to average them, offering a less volatile RSI signal. Additionally, it incorporates a Rate of Change for trend confirmation, enhancing the decision-making process for trade entries and exits.
Features:
Multi-RSI Calculation: RSI is computed for high, open, low, and close prices, then averaged to reduce noise.
Trend Confirmation with RoC: Uses the Rate of Change to validate the RSI signals, coloring bars based on the trend direction.
Visual Signals:
Bar colors change based on combined RSI and RoC signals.
Green for bullish signals (RSI above 50 and positive RoC).
Red for bearish signals (RSI below 50 and negative RoC).
Horizontal lines at 30, 50, and 70 to denote overbought, neutral, and oversold conditions.
Customizable Display:
Option to show/hide RSI plot or RoC plot for cleaner charts.
Candle plot overlay option to visualize current price action alongside the indicator.
Inputs:
RSI Length: Default 28. Adjusts the lookback period for RSI calculation.
RoC Length: Default 28. Sets the period for the Rate of Change calculation.
Plot Settings:
Show RSI - Toggle RSI plot visibility.
Show RoC - Toggle RoC plot visibility.
Usage:
Long signals are indicated when the average RSI is above 50 and the RoC is positive.
Short signals are suggested when the average RSI falls below 50 with a negative RoC.
The color coding helps visually confirm trends at a glance.
Notes:
This indicator is best used in conjunction with other analysis methods to confirm signals.
Adjust the length parameters based on your trading timeframe for optimal results.
Disclaimer:
This indicator does not guarantee trading success; use it as part of a comprehensive trading strategy. Always conduct your own analysis before making trading decisions.
RSI-MACD-Stochastic Strategy[Kopottaja]RSI-MACD-Stochastic Strategy
Description:
The RSI-MACD-Stochastic Strategy is a powerful multi-indicator trading tool designed to identify potential buy and sell signals based on a combination of popular technical indicators. By leveraging the strengths of Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic Oscillator, this strategy provides traders with a comprehensive framework for analyzing market conditions and making informed trading decisions. Optimized to work effectively with Bitcoin (BTC) on the daily timeframe, this strategy is also versatile enough for other assets and timeframes.
Key Features:
RSI (Relative Strength Index):
Measures the speed and magnitude of price movements to identify overbought and oversold levels.
Customizable RSI period for flexibility in analysis.
Generates buy signals when RSI is below 30 (oversold) and sell signals when RSI is above 70 (overbought).
MACD (Moving Average Convergence Divergence):
Detects changes in momentum and trend direction by analyzing the relationship between two exponential moving averages.
Buy signals occur when the MACD line crosses above the signal line; sell signals occur when the MACD line crosses below.
Stochastic Oscillator:
Compares the closing price to the range of prices over a given period to identify potential reversals.
Customizable %K and %D settings for fine-tuning.
Buy signals occur when %K is below 20 (oversold); sell signals occur when %K is above 80 (overbought).
Probability-Based Thresholds:
Adjustable buy and sell thresholds to refine signal generation based on trader preferences.
Combines the outputs of all indicators to generate high-confidence trading signals.
Optimized for BTC on the daily Timeframe:
This strategy has been tested and optimized for Bitcoin (BTC) on the daily timeframe, making it especially useful for long-term cryptocurrency traders. Its adaptability also allows it to perform well with other assets and timeframes when appropriately configured.
How It Works:
Based on the user's configuration, the strategy evaluates the market using the selected indicators (RSI, MACD, and/or Stochastic Oscillator).
Buy signals are triggered when conditions align with the selected indicators, such as oversold RSI, bullish MACD crossover, or low Stochastic values.
Sell signals are triggered when conditions align with overbought RSI, bearish MACD crossover, or high Stochastic values.
Users can enable or disable individual indicators, allowing flexible customization based on trading style and strategy.
AI Trend | EcoX TradingPurpose
This indicator is a versatile trend oscillator designed to work on any timeframe and asset. It extracts and processes market data to adaptively predict trend directions while visualizing momentum and trend extremes. The indicator provides clear visual cues using a combination of signal line, histogram and a trend cloud, making it an excellent confirmation tool when paired with SupportAnd Resistance or Order Block indicators.
Calculation Overview
Raw Signal Line:
Derived from market data using ten unique methods, each creating a data point with a fixed weight.
These weights are carefully optimized to ensure the indicator adapts to changing market conditions.
The Raw Signal Line color reflects trend direction:
Green: Uptrend
Red: Downtrend
Blue: Overbought/Oversold
Histogram:
A smoothed representation of the Raw Signal Line.
Colors indicate trend strength:
Cyan: Strong uptrend.
Orange: Strong downtrend.
Dark Cyan/Orange: Weakening trend.
Gray: Trend reversal.
Thin gray histogram overlays mark the peak or trough of current trend.
Trend Cloud:
Displays the projected range of the histogram based on highest and lowest values from the data points.
Purple: Normal trend range.
Blue: Oversold/Overbought range (dynamic color transition when approaching extremes).
Overbought/Oversold Levels:
Horizontal plus sign lines at 8 and -8 levels mark critical trend extremes.
Usage / Example Scenario
1. Long Positions
Identify an Oversold Market:
Check if the Raw Signal Line is green and rising and the Trend Cloud is below the oversold level with a blue color.
Histogram Confirmation:
Look for the histogram to be gray or dark orange, indicating a weakening downtrend.
Entry Strategy:
Enter a long position when all conditions align, ensuring other indicators (e.g., Support And Resistance) also support the trade.
Exit Strategy:
Exit when the histogram shifts from cyan do dark cyan or gray, signaling weakening uptrend momentum.
2. Short Positions
Identify an Overbought Market:
Check if the Raw Signal Line is red and falling and the Trend Cloud is above the overbought level with a blue color.
Histogram Confirmation:
Look for the histogram to be gray or dark cyan, indicating a weakening uptrend.
Entry Strategy:
Enter a short position when all conditions align, ensuring other indicators (e.g., Support And Resistance) also support the trade.
Exit Strategy:
Exit when the histogram shifts from orange to dark orange or gray, signaling weakening downtrend momentum.
Data Point Obtaining
Data Point 1 -> ta.ema(ta.ema()-ta.ema()) | Weight 1
Data Point 2 -> ta.ema(ta.ema()) | Weight 1
Data Point 3 -> ta.sma(ta.rma(ta.change())) | Weight 1
Data Point 4 -> ta.vwma()±ta.stdev() | Weight 5/1
Data Point 5 -> ta.supertrend | Weight 1~2
Data Point 6 -> 100*(ta.ema()-ta.ema())/ta.ema() | Weight 1
Data Point 7 -> ta.requestUpAndDownVolume() | Weight 1
Data Point 8 -> donchian((ta.lowest()+ta.highest())/2) | Weight 1
Data Point 9 -> ta.ema(ta.ema(ta.ema())) | Weight 1
Data Point 10 -> ta.sma(ta.cross(ta.ema(),ta.ema())) | Weight 0.25
Disclaimer
This indicator is intended as a confirmation tool and should not be used in isolation for trade entries or exits. Combine it with other technical tools to improve overall strategy accuracy. Always exercise proper risk management.
Deshmukh DivergenceRSI Divergence with Moving Average Indicator
Description:
This indicator combines RSI divergence signals with a moving average (MA) on the RSI for enhanced trend analysis and signal confirmation. It identifies regular and hidden divergences between the price and RSI values, generating buy/sell signals based on these patterns. The added RSI moving average allows users to spot smoother trends and potential reversals.
How It Works:
RSI Calculation:
The Relative Strength Index (RSI) is calculated using the user-defined length.
Helps identify overbought and oversold conditions.
RSI Moving Average:
A simple moving average (SMA) is applied to the RSI to smooth its fluctuations.
Provides a clearer view of RSI trends.
Divergence Detection:
Regular Divergence:
Buy Signal: Price makes a lower low, but RSI makes a higher low.
Sell Signal: Price makes a higher high, but RSI makes a lower high.
Hidden Divergence:
Buy Signal: Price makes a higher low, but RSI makes a lower low.
Sell Signal: Price makes a lower high, but RSI makes a higher high.
Signal Visualization:
Signals are displayed as labeled shapes on the chart:
Green Up Arrow: Regular Buy.
Red Down Arrow: Regular Sell.
Blue Up Arrow: Hidden Buy.
Orange Down Arrow: Hidden Sell.
Overbought/Oversold Levels:
Horizontal lines mark overbought (70) and oversold (30) zones for quick reference.
This indicator is suitable for traders looking to identify potential trend reversals or continuations with the help of divergence patterns and RSI smoothing
Fast WMAThe Fast WMA is a reactive trend-following tool designed to provide rapid signals on the ETHBTC ratio. It uses advanced smoothing techniques and normalized thresholds to detect trends effectively. Let’s break it down further:
Source Smoothing with Standard Deviations
The source price data is smoothed by calculating its standard deviation, which measures how far prices typically move from the average. This creates upper and lower deviation levels:
The upper deviation represents a high boundary where prices might be overextended.
The lower deviation represents a low boundary where prices might be oversold.
These deviations are combined with the Weighted Moving Average (WMA) to filter out noise and focus on significant price movements.
Weighting the WMA for Further Smoothing
The Weighted Moving Average (WMA) itself is refined by applying adjustable weights:
An upper weight expands the WMA, forming an Upper Band.
A lower weight compresses the WMA, forming a Lower Band.
This dual-weighted approach allows the tool to adapt dynamically to price action, highlighting areas of potential trend reversals or continuations.
Normalized WMA (NWMA) with Adjustable Thresholds
The Normalized WMA (NWMA) adds an extra layer of analysis:
It compares the source price to its smoothed average, expressing the result as a percentage change.
This helps identify whether the market is overbought (positive NWMA) or oversold (negative NWMA).
Two adjustable thresholds—a long threshold (for buy signals) and a short threshold (for sell signals)—allow users to fine-tune the sensitivity of these signals based on their trading style or the market's volatility.
Entry/Exit Conditions
The Fast WMA generates signals based on two conditions:
Buy (Long) Signal:
Occurs when the price stays above the lower deviation level, and the NWMA crosses above the long threshold.
Indicates bullish momentum and suggests an upward trend.
Sell (Short) Signal:
Occurs when the price falls below the upper deviation level, and the NWMA drops below the short threshold.
Indicates bearish momentum and suggests a downward trend.
Important Note
This indicator is not designed to work alone. It’s a powerful tool for identifying trends but should be combined with other analyses, such as volume, higher time-frame trends, or fundamental analysis, for better decision-making.
Plotting Features
The Fast WMA includes intuitive visual cues to enhance usability:
Color-Coded Signals:
Colors change dynamically to indicate trend direction.
Options are available to customize the color scheme (e.g., for specific trading pairs like ETHBTC or SOLBTC).
Threshold Lines:
Dashed horizontal lines mark the long and short thresholds, helping users visualize signal levels.
Bands and Fill Areas:
The Upper Band and Lower Band are plotted around the WMA, with shaded regions indicating the deviation zones.
Signal Arrows:
Triangles appear below or above candles to highlight potential buy (upward arrow) or sell (downward arrow) points.
Bar Coloring:
Candlesticks are colored according to trend direction, making it easier to identify trends at a glance.
The Fast WMA combines mathematical precision with user-friendly visualization, offering traders a versatile tool to analyze trends and make informed decisions. However, like any indicator, it’s most effective when used as part of a broader trading strategy.
Sanjay RS&RSI Strategy V3 for nifty 15min, SL-1.3one of the best swing strategy of nifty futures, fix SL of 1.1%.
Ichimoku Cloud + VWAPIchimoku Cloud + VWAP Trading Strategy Description
The Ichimoku Cloud + VWAP trading strategy combines two powerful technical indicators to provide comprehensive market analysis and trading signals. This hybrid approach leverages the strengths of both indicators to identify trends, potential reversals, and key price levels for entry and exit decisions.
Ichimoku Cloud Overview
The Ichimoku Cloud is a trend-following indicator that provides a detailed snapshot of market dynamics at a glance. It consists of the following components:
Conversion Line (Tenkan-sen): A short-term trend indicator, calculated as the midpoint of the highest high and lowest low over a specific period (default: 9).
Base Line (Kijun-sen): A medium-term trend indicator, calculated as the midpoint of the highest high and lowest low over a longer period (default: 26).
Leading Span A (Senkou Span A): The average of the Conversion and Base Lines, projected into the future.
Leading Span B (Senkou Span B): The midpoint of the highest high and lowest low over an even longer period (default: 52), projected into the future.
Lagging Span (Chikou Span): The closing price plotted with a time lag (default: 26).
The "Cloud" (Kumo) is formed by the space between Leading Span A and Leading Span B:
Bullish Cloud: Leading Span A is above Leading Span B.
Bearish Cloud: Leading Span A is below Leading Span B.
VWAP Overview
The Volume-Weighted Average Price (VWAP) is a dynamic benchmark indicator that calculates the average price of an asset, weighted by trading volume. It helps traders assess the true average value of an asset over a specific period and is often used as a guide for intraday trading:
Above VWAP: Indicates bullish market sentiment.
Below VWAP: Indicates bearish market sentiment.
VWAP can also be enhanced with customizable bands (e.g., based on standard deviations or percentages), which act as dynamic support and resistance levels.
Trading Signals
1. Trend Confirmation
A price above the VWAP and within a bullish Ichimoku Cloud suggests a strong uptrend. Look for buying opportunities.
A price below the VWAP and within a bearish Ichimoku Cloud suggests a strong downtrend. Look for selling opportunities.
2. Entry Points
Bullish Entry: Price breaks above the VWAP, confirmed by the Conversion Line crossing above the Base Line within a bullish Ichimoku Cloud.
Bearish Entry: Price breaks below the VWAP, confirmed by the Conversion Line crossing below the Base Line within a bearish Ichimoku Cloud.
3. Support and Resistance
Use VWAP bands as dynamic support/resistance levels to refine entry and exit points.
Ichimoku Cloud edges (Leading Span A and B) provide additional zones of support/resistance.
4. Reversal Signals
Look for price moving through the Cloud (from bearish to bullish or vice versa) while crossing the VWAP.
Lagging Span crossing the price or the Cloud can indicate potential reversals.
Advantages of the Combined Strategy
Enhanced Clarity: Ichimoku Cloud offers a multi-dimensional view of market trends, while VWAP provides an objective benchmark for price action.
Dynamic Levels: VWAP and its bands adapt to volume and price changes, complementing Ichimoku's trend projections.
Versatility: Works well in trending and range-bound markets by combining Ichimoku’s trend-following ability with VWAP’s mean-reversion properties.
Use Cases
Intraday Traders: VWAP is especially effective for short-term trades, and Ichimoku provides trend confirmation.
Swing Traders: The Ichimoku Cloud’s projection capabilities can help identify longer-term trends, with VWAP used for precision in entries and exits.
Risk Management: Use VWAP bands and Ichimoku Cloud boundaries to define stop-loss and take-profit levels.
By combining Ichimoku Cloud and VWAP, traders gain a holistic view of the market, blending trend-following, mean-reversion, and dynamic support/resistance strategies into one cohesive system.
Quantuan Research - AlphaFree alpha for you folks. This is my Hanukkah/Christmas gift for you folks.
Enjoy, best regards;
- Quantuan Research
OBV Divergence Indicator [TradingFinder] On-Balance Vol Reversal🔵 Introduction
The On-Balance Volume (OBV) indicator, introduced by Joe Granville in 1963, is a powerful technical analysis tool used to measure buying and selling pressure based on trading volume and price.
By aggregating trading volume—adding it on positive days and subtracting it on negative days—OBV creates a cumulative line that reflects market volume pressure, making it valuable for confirming trends, identifying entry and exit points, and forecasting potential price movements.
Divergences between price and OBV often provide significant signals. A bearish divergence occurs when the price forms higher highs while the OBV line forms lower highs. This discrepancy indicates that upward momentum is weakening, increasing the likelihood of a downward trend.
In contrast, a bullish divergence happens when the price makes lower lows, but the OBV line forms higher lows. This suggests increasing buying pressure and the potential for an upward trend reversal.
For instance, if the price is rising but the OBV trendline is falling, it may signal a bearish divergence, warning of a possible price decline. Conversely, if the price is falling while the OBV line is rising, this could signal a bullish divergence, indicating a possible price recovery. These signals are particularly useful for identifying market turning points.
OBV often acts as a leading indicator, moving ahead of price changes. For example, a rising OBV alongside stable or declining prices can signal an impending upward breakout.
Conversely, a declining OBV with rising prices may indicate that the current uptrend is losing strength. Traders using this strategy often consider entering positions at breakout levels while setting stop losses near recent swing highs or lows to manage risk effectively.
This integration highlights how OBV divergences can provide actionable insights for predicting price movements and managing trades efficiently.
Bullish Divergence :
Bearish Divergence :
🔵 How to Use
The OBV indicator, as a cumulative tool, assists analysts in comparing volume and price changes to identify new trends and key levels for entering or exiting trades. Beyond confirming existing trends, it is particularly effective in analyzing positive and negative divergences between price and volume, providing valuable signals for trading decisions.
🟣 Bullish Divergence
A bullish divergence occurs when the price continues its downward or stable trend, but the OBV line starts rising, forming a higher low compared to its previous low. This suggests increasing volume on up days relative to down days and often signals a reversal to the upside.
For instance, if an asset's price stabilizes near a support level but the OBV line shows an upward trend, this divergence could present an opportunity to enter a long position.
🟣 Bearish Divergence
A bearish divergence occurs when the price forms higher highs, but the OBV line declines, creating lower highs compared to previous peaks. This indicates decreasing volume on up days relative to down days and often acts as a warning for a reversal to the downside.
For example, if an asset’s price approaches a resistance level while OBV starts declining, this divergence may signal the beginning of a downtrend and could indicate a good time to exit long trades or enter short positions.
🔵 Setting
Period : The "Period" setting allows you to define the number of bars or intervals for "Periodic" and "EMA" modes. A shorter period captures more short-term movements, while a longer period smooths out the fluctuations and provides a broader view of market trends.
You can enable or disable labels to highlight key levels or divergences and tables to show numerical details like values and divergence types. These options allow for a customized chart display.
🔵 Table
The following table breaks down the main features of the oscillator. It covers four critical categories: Exist, Consecutive, Divergence Quality, and Change Phase Indicator.
Exist : If divergence is detected, a "+" will appear in this row.
Consecutive: Shows the number of consecutive divergences that have formed in a short period.
Divergence Quality : Evaluates the quality of the divergence based on the number of occurrences. One is labeled "Normal," two are "Good," and three or more are considered "Strong."
Change Phase Indicator : If a phase change is detected between two oscillation peaks, this is marked in the table.
🔵 Conclusion
The OBV (On Balance Volume) indicator is a simple yet effective tool in technical analysis that combines volume and price changes to provide a comprehensive view of market buying and selling pressure. By identifying positive and negative divergences, OBV enables analysts to detect early signs of trend reversals and refine their trading strategies.
Divergences in OBV often precede price changes, making it a leading indicator for predicting market movements. Using OBV alongside other technical tools can enhance decision-making accuracy and help traders identify better entry and exit points. However, it is essential to consider the limitations of OBV, such as the potential for signal errors and the impact of sudden news events.
Ultimately, OBV serves as a complementary tool in technical analysis, aiding in trend identification, signal confirmation, and risk management. A thoughtful application of this indicator, in combination with other analytical tools, can create valuable opportunities for profiting in financial markets.
Fund Master Plus (TV Rev1, Dec2024)License: Mozilla Public License 2.0 (Open Source)
Version: Pine Script™ v6
Indicator Name: Fund Master Plus (TV Rev1, Dec2024)
Short Title: Fund Master Plus
About Fund Master Plus
Fund Master Plus indicator is an oscillating technical analysis tool designed to simulate the fund inflow and outflow trend.
Key features:
1. Fund Master Value and Candle
The candle highlights the direction of the Fund Master value.
Green candles represent an upward trend, while red candles indicate a downward trend.
When the candle crossover 0, it is a sign of the start of mid term bull, vice versa.
When the candle is above 0, it is a sign of mid-term bull, vice versa.
2. Fund Master Bar
This bar provides added visual representation of the Fund Master value.
Green bars represent and upward trend, while red bars indicate a downward trend.
3. FM EMA (Exponential Moving Average)
The Fund Master EMA (Exponential Moving Average) helps smooth out FM value fluctuations
and identify the overall trend.
When the candle crossover FM EMA, it is a sign of the start of short term bull, vice vera.
When the candle is above FM EMA, it is a sign of short term bull, vice versa.
4. EMA of FM EMA
This is an EMA of the Fund Master EMA, which can provide additional insights into the
trend's strength.
5. Candle Turn Green or Red
This feature generates alerts to signal potential trend changes.
6. Bottom Deviation & Top Deviation
Line plot and label of these deviation will show on indicator and the price chart to help user
identify potential buying and selling opportunities.
7. Alertcondition for Turn Green or Turn Red
User can set the alert using the Create Alert (the Clock Icon).
8. Table Summary
A table summary is provided to show indicator name, FM value, FM candle status,
Crossover, Crossunder, Turn Green, Turn Red status, Bar Number etc.
A tooltip for Filter Setting and a filter status check.
SOP to use the indicator:
Table (GR1):
Show Table: This option enables or disables the display of the table.
Text Size: This option allows you to set the text size for the table entries.
Width: This option sets the width of the table.
Fund Master Candle Color Setting (GR2):
FM candle will up by default.
This option enables the color setting of Fund Master candle.
Up: This option sets the color of the Fund Master candle for uptrend.
Down: This option sets the color of the Fund Master candle for downtrend.
Fund Master Bar and Color Setting (GR3):
Show Fund Master Bar: This option enables or disables the display of the Fund Master bar.
Up: This option sets the color of the Fund Master bar for uptrend.
Down: This option sets the color of the Fund Master bar for downtrend.
Fund Master EMA plots (GR4):
Show FM EMA: This option enables or disables the display of the Fund Master EMA line.
Look Back Period: This option sets the lookback period for the Fund Master EMA calculation.
EMA Color: This option sets the color of the Fund Master EMA line.
Show EMA of FM EMA: This option enables or disables the display of the EMA of the Fund Master EMA line.
Look Back Period 2: This option sets the lookback period for the EMA of the Fund Master EMA calculation.
Alerts: Fund Master Crossover & Crossunder EMA Line or 0 (GR5):
Show FM Crossover 0: This option enables or disables the display of the alert for FM crossover above the 0 line.
Show FM Crossunder 0: This option enables or disables the display of the alert for FM crossover below the 0 line.
Show FM Crossover EMA: This option enables or disables the display of the alert for FM crossover above the EMA line.
Show FM Crossunder EMA: This option enables or disables the display of the alert for FM crossover below the EMA line.
Bottom and Top Deviation (GR6):
Show Bottom Deviation: This option enables or disables the display of the bottom deviation line.
Show Top Deviation: This option enables or disables the display of the top deviation line.
Turn Green, Turn Red Alert (GR7):
Show Turn Green/Red Alerts: This option enables or disables the display of alerts for when the Fund Master value changes direction.
Current & Turn Green/Red Alerts: This option sets the number of bars to look back for the turn green/red alerts.
Band and User Input Setting (GR8):
100: This option enables or disables the display of the 100 band.
0: This option enables or disables the display of the 0 band.
-100: This option enables or disables the display of the -100 band.
User Input: This option enables or disables the display of a custom band based on user input.
Value: This option sets the value for the custom band.
Disclaimer
Attached chart is for the purpose of illustrating the use of indicator, no recommendation of buy/sell.
In this chart, all features in the setting are turned on (default and non default).
This chart is used to demonstrate the FM trend movement from mid-term bear to mid-term bull,
short-term bear and bull, bottom deviation and top deviation.
Hope this help. Merry Christmas and Happy New Year.
EMA RSI Trend Reversal Ver.1Overview:
The EMA RSI Trend Reversal indicator combines the power of two well-known technical indicators—Exponential Moving Averages (EMAs) and the Relative Strength Index (RSI)—to identify potential trend reversal points in the market. The strategy looks for key crossovers between the fast and slow EMAs, and uses the RSI to confirm the strength of the trend. This combination helps to avoid false signals during sideways market conditions.
How It Works:
Buy Signal:
The Fast EMA (9) crosses above the Slow EMA (21), indicating a potential shift from a downtrend to an uptrend.
The RSI is above 50, confirming strong bullish momentum.
Visual Signal: A green arrow below the price bar and a Buy label are plotted on the chart.
Sell Signal:
The Fast EMA (9) crosses below the Slow EMA (21), indicating a potential shift from an uptrend to a downtrend.
The RSI is below 50, confirming weak or bearish momentum.
Visual Signal: A red arrow above the price bar and a Sell label are plotted on the chart.
Key Features:
EMA Crossovers: The Fast EMA crossing above the Slow EMA signals potential buying opportunities, while the Fast EMA crossing below the Slow EMA signals potential selling opportunities.
RSI Confirmation: The RSI helps confirm trend strength—values above 50 indicate bullish momentum, while values below 50 indicate bearish momentum.
Visual Cues: The strategy uses green arrows and red arrows along with Buy and Sell labels for clear visual signals of when to enter or exit trades.
Signal Interpretation:
Green Arrow / Buy Label: The Fast EMA (9) has crossed above the Slow EMA (21), and the RSI is above 50. This is a signal to buy or enter a long position.
Red Arrow / Sell Label: The Fast EMA (9) has crossed below the Slow EMA (21), and the RSI is below 50. This is a signal to sell or exit the long position.
Strategy Settings:
Fast EMA Length: Set to 9 (this determines how sensitive the fast EMA is to recent price movements).
Slow EMA Length: Set to 21 (this smooths out price movements to identify the broader trend).
RSI Length: Set to 14 (default setting to track momentum strength).
RSI Level: Set to 50 (used to confirm the strength of the trend—above 50 for buy signals, below 50 for sell signals).
Risk Management (Optional):
Use take profit and stop loss based on your preferred risk-to-reward ratio. For example, you can set a 2:1 risk-to-reward ratio (2x take profit for every 1x stop loss).
Backtesting and Optimization:
Backtest the strategy on TradingView by opening the Strategy Tester tab. This will allow you to see how the strategy would have performed on historical data.
Optimization: Adjust the EMA lengths, RSI period, and risk-to-reward settings based on your asset and time frame.
Limitations:
False Signals in Sideways Markets: Like any trend-following strategy, this indicator may generate false signals during periods of low volatility or sideways movement.
Not Suitable for All Market Conditions: This indicator performs best in trending markets. It may underperform in choppy or range-bound markets.
Strategy Example:
XRP/USD Example:
If you're trading XRP/USD and the Fast EMA (9) crosses above the Slow EMA (21), while the RSI is above 50, the indicator will signal a Buy.
Conversely, if the Fast EMA (9) crosses below the Slow EMA (21), and the RSI is below 50, the indicator will signal a Sell.
Bitcoin (BTC/USD):
On the BTC/USD chart, when the indicator shows a green arrow and a Buy label, it’s signaling a potential long entry. Similarly, a red arrow and Sell label indicate a short entry or exit from a previous long position.
Summary:
The EMA RSI Trend Reversal Indicator helps traders identify potential trend reversals with clear buy and sell signals based on the EMA crossovers and RSI confirmations. By using green arrows and red arrows, along with Buy and Sell labels, this strategy offers easy-to-understand visual signals for entering and exiting trades. Combine this with effective risk management and backtesting to optimize your trading performance.
Cumulative Force Oscillator with MACDCumulative Force Oscillator with MACD
The Cumulative Force Oscillator with MACD is an advanced technical indicator designed to provide traders with a unique perspective on market momentum and trend strength. By combining the power of cumulative candle force analysis with MACD crossover signals, this indicator offers a multifaceted approach to market analysis.
Key Features
1. Cumulative Force Calculation**: Measures the net force of price movements over a specified number of candles.
2. MACD Integration**: Incorporates MACD crossover signals for additional trend confirmation.
3. Visual Cues**: Utilizes color-coded oscillator lines and background zones for easy interpretation.
4. **Dynamic Labeling**: Displays real-time force values and percentage changes.
How It Works
Cumulative Force Calculation
The indicator calculates the "force" of each candle by subtracting the open price from the close price. It then sums this force over a user-defined number of candles to create a cumulative force value. This value oscillates above and below zero, indicating bullish or bearish pressure respectively.
MACD Crossover Detection
The indicator uses the standard MACD (12, 26, 9) to detect bullish and bearish crossovers. These crossovers are visually represented by colored background zones, providing an additional layer of trend confirmation.
Visual Representation
- The main oscillator line is plotted in green when above zero (bullish) and red when below zero (bearish).
- Background colors change based on MACD crossovers: light blue for bullish crossovers and light orange for bearish crossovers.
- A dynamic label displays the current cumulative force value and its percentage change from the previous period.
Interpretation
1. Oscillator Line : When the line is above zero, it indicates net bullish pressure; below zero suggests net bearish pressure.
2. Oscillator Momentum : The steepness and direction of the oscillator line indicate the strength and direction of the current market force.
3. MACD Crossovers : Blue background zones suggest potential bullish trends, while orange zones indicate potential bearish trends.
4. Divergences : Look for divergences between the oscillator and price action for potential trend reversal signals.
Customization
Users can customize several aspects of the indicator :
- Number of candles for force calculation
- Label offset and text size
- Color schemes (through code modification)
Conclusion
The Cumulative Force Oscillator with MACD is a versatile tool that combines momentum analysis with trend confirmation signals. By providing a visual representation of cumulative market force alongside MACD crossovers, it offers traders a comprehensive view of market dynamics. This indicator can be particularly useful for identifying potential trend reversals, confirming existing trends, and gauging overall market strength.
Smart Moving Average Trend IndicatorThe Smart Moving Average Trend Indicator is designed to provide traders with a comprehensive analysis of market trends, confirmations, and potential reversals. Here’s a detailed description of its technical features:
Technical Features
Moving Average Calculation:
Simple Moving Average (SMA): The indicator calculates a simple moving average over a user-defined period (default is 14 bars). This average helps smooth out price fluctuations and identify the overall direction of the trend.
Trend Detection:
Primary Trend: Identifies long-term trends (weeks to months) based on price movement above or below the SMA.
Secondary Trend: Tracks short-term corrections or retracements against the primary trend.
Minor Trend: Monitors short-term fluctuations, providing insights into immediate market movements.
Volume Confirmation:
The indicator assesses whether the current volume exceeds a threshold (default is 1.5 times the SMA of volume). A price increase accompanied by higher volume indicates stronger trend validity.
Trendline Detection:
The script draws trendlines for primary, secondary, and minor trends, visually assisting traders in identifying potential support and resistance levels. These trendlines help visualize the overall market structure.
Trend Reversal Signals:
The indicator highlights potential trend reversals based on specific conditions (e.g., lower troughs or peaks). This feature allows traders to anticipate changes in trend direction, increasing the likelihood of capturing significant price moves.
Alerts:
Alert Conditions: The indicator includes alert conditions for potential trend reversals and volume confirmations. Traders can set up alerts to be notified when these conditions are met, facilitating timely decision-making.
Visual Indications:
Background Color: Changes the background color to red when a potential trend reversal is detected, providing a clear visual cue.
Volume Confirmation Markers: Displays small upward labels below bars when volume confirmation is present, indicating significant trading activity accompanying price movements.
Overall Benefits
Multi-Faceted Analysis: The combination of trend detection, volume analysis, and reversal signals provides a holistic view of market dynamics.
Enhanced Decision-Making: With alerts and visual cues, traders can make more informed decisions, potentially increasing their success in identifying entry and exit points.
Flexibility: Users can customize the moving average length and volume threshold, allowing the indicator to adapt to different trading strategies and timeframes.
This Smart Moving Average Trend Indicator is particularly useful for traders looking to capture trends while minimizing noise and false signals, making it a valuable tool in technical analysis.
