MSTR-BTC PremiumThis custom indicator, “MSTR-BTC Premium with High, Average, and Low Levels,” helps you analyze the premium of MicroStrategy Incorporated’s (MSTR) stock price in relation to its Bitcoin holdings. By comparing the market capitalization of MSTR to the value of its Bitcoin holdings (using BTCUSD from Coinbase), this indicator calculates a premium that reflects how much the stock price deviates from its Bitcoin-related value.
Key Features:
• Premium Line: The primary feature is the “Premium,” which shows the ratio of MSTR’s market cap relative to its Bitcoin holdings and the BTCUSD price.
• High, Average, and Low Levels: The indicator calculates the highest, lowest, and average premium values over a user-defined period (default is 14 bars). These levels help identify overbought and oversold conditions relative to the stock’s Bitcoin valuation.
• Visual Shading: The area between the premium line and the average is shaded, making it easier to see when the premium is above or below its typical level. Optional shading is also available between the high and low levels to visualize the price range.
How to Use:
• Overbought/Undervalued Conditions: When the premium line rises significantly above the average, it may indicate that MSTR stock is overbought compared to its Bitcoin holdings. Conversely, when the premium falls below the average or approaches the low line, it might signal an undervalued opportunity.
• Trend and Mean Reversion: The high and low lines provide insight into extreme levels. Monitoring these alongside the average can assist in identifying potential mean reversion trades.
Customization:
• Calculation Period: The period for calculating the high, low, and average values can be adjusted to suit your trading strategy (default is 14).
• Shading Options: By default, the area between the premium and its average is shaded. You can enable or disable the shading between the high and low as needed.
This indicator is particularly useful for traders and investors following MicroStrategy (MSTR) and its Bitcoin strategy, providing a deeper understanding of the stock’s relationship to its underlying Bitcoin assets. It can assist in identifying key levels for decision-making based on deviations from historical norms.
How to Add the Indicator:
1. Adjust the calculation period (default is 14) to customize the analysis according to your preferred timeframe.
2. Watch for significant deviations of the premium line from its average to identify potential overbought/oversold conditions.
3. Use the high and low levels to help gauge extreme premium values and possible mean reversion opportunities.
Enjoy the analysis and make more informed decisions with the MSTR-BTC Premium Indicator!
This description should be clear and informative for anyone considering using your indicator. It highlights the functionality, purpose, and customization options in a straightforward way. Let me know if you’d like to tweak or adjust any part of it!
Индикаторы и стратегии
ATR Adjusted RSIATR Adjusted RSI Indicator
By Nathan Farmer
The ATR Adjusted RSI Indicator is a versatile indicator designed primarily for trend-following strategies, while also offering configurations for overbought/oversold (OB/OS) signals, making it suitable for mean-reversion setups. This tool combines the classic Relative Strength Index (RSI) with a unique Average True Range (ATR)-based smoothing mechanism, allowing traders to adjust their RSI signals according to market volatility for more reliable entries and exits.
Key Features:
ATR Weighted RSI:
At the core of this indicator is the ATR-adjusted RSI line, where the RSI is smoothed based on volatility (measured by the ATR). When volatility increases, the smoothing effect intensifies, resulting in a more stable and reliable RSI reading. This makes the indicator more responsive to market conditions, which is especially useful in trend-following systems.
Multiple Signal Types:
This indicator offers a variety of signal-generation methods, adaptable to different market environments and trading preferences:
RSI MA Crossovers: Generates signals when the RSI crosses above or below its moving average, with the flexibility to choose between different moving average types (SMA, EMA, WMA, etc.).
Midline Crossovers: Provides trend confirmation when either the RSI or its moving average crosses the 50 midline, signaling potential trend reversals.
ATR-Inversely Weighted RSI Variations: Uses the smoothed, ATR-adjusted RSI for a more refined and responsive trend-following signal. There are variations both for the MA crossover and the midline crossover.
Overbought/Oversold Conditions: Ideal for mean reversion setups, where signals are triggered when the RSI or its moving average crosses over overbought or oversold levels.
Flexible Customization:
With a wide range of customizable options, you can tailor the indicator to fit your personal trading style. Choose from various moving average types for the RSI, modify the ATR smoothing length, and adjust overbought/oversold levels to optimize your signals.
Usage:
While this indicator is primarily designed for trend-following, its OB/OS configurations make it highly effective for mean-reverting setups as well. Depending on your selected signal type, the relevant indicator line will change color between green and red to visually signal long or short opportunities. This flexibility allows traders to switch between trending and sideways market strategies seamlessly.
A Versatile Tool:
The ATR Adjusted RSI Indicator is a valuable component of any trading system, offering enhanced signals that adapt to market volatility. However, it is not recommended to rely on this indicator alone, especially without thorough backtesting. Its performance varies across different assets and timeframes, so it’s essential to experiment with the parameters to ensure consistent results before applying it in live trading.
Recommendation:
Before incorporating this indicator into live trading, backtest it extensively. Given its flexibility and wide range of signal-generation methods, backtesting allows you to optimize the settings for your preferred assets and timeframes. Only consider using it on it's own if you are confident in its performance based on your own backtest results, and even then, it is not recommended.
ADX with Alerts for Strong Trending ConditionsMad Props to Chat GPT. Basically, this thing lets you set alerts on the ADX being Above 20 AND the Positive or Negative Directional Movement Line being Above the ADX. Useful for being alerted when a strong trend is in place to look for the pullback.
Description
The ADX with Custom Alerts indicator is designed to assist traders in identifying trends and potential trading opportunities based on the Average Directional Index (ADX) and Directional Indicators (DI+ and DI-). This tool provides a clear visual representation of market strength and directional movement, enhancing decision-making in trading.
Features
ADX Calculation:
The ADX measures the strength of a trend, regardless of its direction. The indicator calculates the ADX using a configurable length and a smoothing parameter, allowing traders to customize it based on their trading preferences.
Directional Indicators:
DI+: Represents bullish momentum.
DI-: Represents bearish momentum.
The indicator plots both DI+ and DI- alongside the ADX to give a complete picture of market direction.
Alert Conditions:
The indicator includes custom alert conditions that notify traders when:
Condition 1: The ADX rises above the defined threshold (default set at 20) and DI+ is above the ADX, indicating potential bullish momentum.
Condition 2: The ADX rises above the defined threshold and DI- is above the ADX, indicating potential bearish momentum.
Visual Representation:
The ADX line is plotted in blue, with the DI+ line in green and the DI- line in red.
A dotted horizontal line represents the ADX threshold, providing a clear visual cue for trend strength.
Background Highlighting:
The indicator uses background coloring to enhance visual analysis:
Green shading indicates when DI+ is above the ADX, suggesting bullish conditions.
Red shading indicates when DI- is above the ADX, suggesting bearish conditions.
Customizable Parameters:
Traders can adjust the length of the ADX calculation, the smoothing factor, and the threshold level to suit their trading strategies and timeframes.
Usage
This indicator is particularly useful for traders looking to:
Identify strong trends and potential entry points based on trend strength.
Make informed decisions using alerts that signal important market conditions.
Enhance their trading strategies with clear visual cues and customizable parameters.
[3Commas] Signal BuilderSignal Builder is a tool designed to help traders create custom buy and sell signals by combining multiple technical indicators. Its flexibility allows traders to set conditions based on their specific strategy, whether they’re into scalping, swing trading, or long-term investing. Additionally, its integration with 3Commas bots makes it a powerful choice for those looking to automate their trades, though it’s also ideal for traders who prefer receiving alerts and making manual decisions.
🔵 How does Signal Builder work?
Signal Builder allows users to define custom conditions using popular technical indicators, which, when met, generate clear buy or sell signals. These signals can be used to trigger TradingView alerts, ensuring that you never miss a market opportunity. Additionally, all conditions are evaluated using "AND" logic, meaning signals are only activated when all user-defined conditions are met. This increases precision and helps avoid false signals.
🔵 Available indicators and recommended settings:
Signal Builder provides access to a wide range of technical indicators, each customizable to popular settings that maximize effectiveness:
RSI (Relative Strength Index): An oscillator that measures the relative strength of price over a specific period. Traders typically configure it with 14 periods, using levels of 30 (oversold) and 70 (overbought) to identify potential reversals.
MACD (Moving Average Convergence Divergence): A key indicator tracking the crossover between two moving averages. Common settings include 12 and 26 periods for the moving averages, with a 9-period signal line to detect trend changes.
Ultimate Oscillator: Combines three different time frames to offer a comprehensive view of buying and selling pressure. Popular settings are 7, 14, and 28 periods.
Bollinger Bands %B: Provides insight into where the price is relative to its upper and lower bands. Standard settings include a 20-period moving average and a standard deviation of 2.
ADX (Average Directional Index): Measures the strength of a trend. Values above 25 typically indicate a strong trend, while values below suggest weak or sideways movement.
Stochastic Oscillator: A momentum indicator comparing the closing price to its range over a defined period. Popular configurations include 14 periods for %K and 3 for %D smoothing.
Parabolic SAR: Ideal for identifying trend reversals and entry/exit points. Commonly configured with a 0.02 step and a 0.2 maximum.
Money Flow Index (MFI): Similar to RSI but incorporates volume into the calculation. Standard settings use 14 periods, with levels of 20 and 80 as oversold and overbought thresholds.
Commodity Channel Index (CCI): Measures the deviation of price from its average. Traders often use a 20-period setting with levels of +100 and -100 to identify extreme overbought or oversold conditions.
Heikin Ashi Candles: These candles smooth out price fluctuations to show clearer trends. Commonly used in trend-following strategies to filter market noise.
🔵 How to use Signal Builder:
Configure indicators: Select the indicators that best fit your strategy and adjust their settings as needed. You can combine multiple indicators to define precise entry and exit conditions.
Define custom signals: Create buy or sell conditions that trigger when your selected indicators meet the criteria you’ve set. For example, configure a buy signal when RSI crosses above 30 and MACD confirms with a bullish crossover.
TradingView alerts: Set up alerts in TradingView to receive real-time notifications when the conditions you’ve defined are met, allowing you to react quickly to market opportunities without constantly monitoring charts.
Monitor with the panel: Signal Builder includes a visual panel that shows active conditions for each indicator in real time, helping you keep track of signals without manually checking each indicator.
🔵 3Commas integration:
In addition to being a valuable tool for any trader, Signal Builder is optimized to work seamlessly with 3Commas bots through Webhooks. This allows you to automate your trades based on the signals you’ve configured, ensuring that no opportunity is missed when your defined conditions are met. If you prefer automation, Signal Builder can send buy or sell signals to your 3Commas bots, enhancing your trading process and helping you manage multiple trades more efficiently.
🔵 Example of use:
Imagine you trade in volatile markets and want to trigger a sell signal when:
Stochastic Oscillator indicates overbought conditions with the %K value crossing below 80.
Bollinger Bands %B shows the price has surpassed the upper band, suggesting a potential reversal.
ADX is below 20, indicating that the trend is weak and could be about to change.
With Signal Builder , you can configure these conditions to trigger a sell signal only when all are met simultaneously. Then, you can set up a TradingView alert to notify you as soon as the signal is activated, giving you the opportunity to react quickly and adjust your strategy accordingly.
👨🏻💻💭 If this tool helps your trading strategy, don’t forget to give it a boost! Feel free to share in the comments how you're using it or if you have any questions.
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The information and publications within the 3Commas TradingView account are not meant to be and do not constitute financial, investment, trading, or other types of advice or recommendations supplied or endorsed by 3Commas and any of the parties acting on behalf of 3Commas, including its employees, contractors, ambassadors, etc.
Visualization of price changes with Updated LineThis indicator is used to identify the upward or downward momentum of a trend and to visualize the corresponding price fluctuations.
Calculation of the Fluctuation
The price fluctuation (Fluctuation) is calculated and added to the rising fractuation array if it is rising or to the falling fractuation array if it is falling.
Calculating Moving Averages
A moving average is calculated for each fractuation to determine the momentum or strength of the trend. In this case, the higher the value of the moving average, the stronger the momentum in that direction.
Generation of Cross Signals
Detects the point at which a rising moving average crosses a falling moving average. At this crossing point, a triangle shape will be plotted on the chart at the timing of a possible trend turning point or push.
Displaying Lines
Based on this crosspoint, a line is drawn. This line represents a push in the direction of the trend and helps to identify price reversals and pushes. The line will rise when the uptrend is strengthening and fall when the downtrend is gaining momentum.
Thus, the signals and lines used to determine trend pushes and momentum are plotted visually and designed to help traders make decisions based on this information.
Williams %R StrategyThe Williams %R Strategy implemented in Pine Script™ is a trading system based on the Williams %R momentum oscillator. The Williams %R indicator, developed by Larry Williams in 1973, is designed to identify overbought and oversold conditions in a market, helping traders time their entries and exits effectively (Williams, 1979). This particular strategy aims to capitalize on short-term price reversals in the S&P 500 (SPY) by identifying extreme values in the Williams %R indicator and using them as trading signals.
Strategy Rules:
Entry Signal:
A long position is entered when the Williams %R value falls below -90, indicating an oversold condition. This threshold suggests that the market may be near a short-term bottom, and prices are likely to reverse or rebound in the short term (Murphy, 1999).
Exit Signal:
The long position is exited when:
The current close price is higher than the previous day’s high, or
The Williams %R indicator rises above -30, indicating that the market is no longer oversold and may be approaching an overbought condition (Wilder, 1978).
Technical Analysis and Rationale:
The Williams %R is a momentum oscillator that measures the level of the close relative to the high-low range over a specific period, providing insight into whether an asset is trading near its highs or lows. The indicator values range from -100 (most oversold) to 0 (most overbought). When the value falls below -90, it indicates an oversold condition where a reversal is likely (Achelis, 2000). This strategy uses this oversold threshold as a signal to initiate long positions, betting on mean reversion—an established principle in financial markets where prices tend to revert to their historical averages (Jegadeesh & Titman, 1993).
Optimization and Performance:
The strategy allows for an adjustable lookback period (between 2 and 25 days) to determine the range used in the Williams %R calculation. Empirical tests show that shorter lookback periods (e.g., 2 days) yield the most favorable outcomes, with profit factors exceeding 2. This finding aligns with studies suggesting that shorter timeframes can effectively capture short-term momentum reversals (Fama, 1970; Jegadeesh & Titman, 1993).
Scientific Context:
Mean Reversion Theory: The strategy’s core relies on mean reversion, which suggests that prices fluctuate around a mean or average value. Research shows that such strategies, particularly those using oscillators like Williams %R, can exploit these temporary deviations (Poterba & Summers, 1988).
Behavioral Finance: The overbought and oversold conditions identified by Williams %R align with psychological factors influencing trading behavior, such as herding and panic selling, which often create opportunities for price reversals (Shiller, 2003).
Conclusion:
This Williams %R-based strategy utilizes a well-established momentum oscillator to time entries and exits in the S&P 500. By targeting extreme oversold conditions and exiting when these conditions revert or exceed historical ranges, the strategy aims to capture short-term gains. Scientific evidence supports the effectiveness of short-term mean reversion strategies, particularly when using indicators sensitive to momentum shifts.
References:
Achelis, S. B. (2000). Technical Analysis from A to Z. McGraw Hill.
Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, 25(2), 383-417.
Jegadeesh, N., & Titman, S. (1993). Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency. The Journal of Finance, 48(1), 65-91.
Murphy, J. J. (1999). Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications. New York Institute of Finance.
Poterba, J. M., & Summers, L. H. (1988). Mean Reversion in Stock Prices: Evidence and Implications. Journal of Financial Economics, 22(1), 27-59.
Shiller, R. J. (2003). From Efficient Markets Theory to Behavioral Finance. Journal of Economic Perspectives, 17(1), 83-104.
Williams, L. (1979). How I Made One Million Dollars… Last Year… Trading Commodities. Windsor Books.
Wilder, J. W. (1978). New Concepts in Technical Trading Systems. Trend Research.
This explanation provides a scientific and evidence-based perspective on the Williams %R trading strategy, aligning it with fundamental principles in technical analysis and behavioral finance.
Bollinger Band Squeeze with Dotted MidlinesBollinger Band Squeeze with Dotted Midlines
Overview:
The Bollinger Band Squeeze with Dotted Midlines indicator is a powerful tool designed to identify periods of low volatility in the market, known as "squeeze" conditions, which often precede significant price movements. By combining Bollinger Bands and Keltner Channels, this indicator highlights when the market is consolidating and prepares traders for potential breakouts.
Key Features:
• Squeeze Detection: The indicator fills the area between the Bollinger Bands and Keltner Channels with a semi-transparent red color when both the upper and lower Bollinger Bands are within the Keltner Channels. This visual cue signifies a squeeze condition.
• Dynamic Color Filling: When the Bollinger Bands move outside the Keltner Channels, the fill color changes to a semi-transparent white, indicating the end of the squeeze and the potential start of increased volatility.
• Enhanced Visual Clarity:
o Upper and Lower Bands: The upper and lower lines of both the Bollinger Bands and Keltner Channels are plotted with increased thickness (3pt) for better visibility.
o Midlines with Dotted Effect: The middle lines (50% lines) for both the Bollinger Bands and Keltner Channels are plotted as dotted lines using circles with a thinner line width (1pt), providing a clear yet unobtrusive reference point.
Indicator Components:
1. Bollinger Bands (Orange Lines):
o Upper Bollinger Band: Calculated as the moving average plus a multiple of the standard deviation.
o Lower Bollinger Band: Calculated as the moving average minus a multiple of the standard deviation.
o Middle Bollinger Band: The simple moving average (SMA) of the closing price.
2. Keltner Channels (White Lines):
o Upper Keltner Channel: Calculated as the exponential moving average (EMA) plus a multiple of the average true range (ATR).
o Lower Keltner Channel: Calculated as the EMA minus a multiple of the ATR.
o Middle Keltner Channel: The EMA of the closing price.
3. Squeeze Condition Fill:
o Red Fill (40% Opacity): Indicates a squeeze condition where the Bollinger Bands are entirely within the Keltner Channels.
o White Fill (40% Opacity): Indicates normal market conditions where the Bollinger Bands have moved outside the Keltner Channels.
How to Use:
1. Identifying Squeeze Conditions:
o Look for Red Filled Areas: When you see the area between the Bollinger Bands and Keltner Channels filled in semi-transparent red, it signals a squeeze condition. This means the market is experiencing low volatility and may be preparing for a significant move.
2. Preparing for Potential Breakouts:
o Monitor for Fill Color Changes: A transition from red to white fill suggests that the squeeze is ending, and volatility is increasing. Traders often interpret this as a potential opportunity for a breakout in either direction.
3. Utilizing Midlines:
o Reference Midlines for Trend Direction: The dotted midlines provide insight into the overall trend. Crossing of the price above or below these lines can offer additional confirmation for trading decisions.
Customization Options:
• Bollinger Bands Settings:
o Length: Default is 20 periods. Adjust to change the sensitivity of the bands.
o Multiplier: Default is 2.0. Modify to increase or decrease the band width based on standard deviation.
• Keltner Channels Settings:
o Length: Default is 20 periods. Alter to adjust the responsiveness of the channels.
o Multiplier: Default is 1.5. Change to widen or narrow the channels based on average true range.
Advantages:
• Visual Clarity: Enhanced line thickness and semi-transparent fills make it easy to spot key market conditions at a glance.
• Early Warning System: By identifying squeeze conditions, traders can anticipate potential breakouts and plan their strategies accordingly.
• Flexible Application: Suitable for various timeframes and trading styles, including day trading, swing trading, and position trading.
Limitations:
• False Signals: Like all technical indicators, it may produce false signals, especially in choppy or range-bound markets.
• Should Be Used with Other Indicators: For better accuracy, it's recommended to use this indicator in conjunction with other technical analysis tools and not as a standalone signal generator.
Conclusion:
The Bollinger Band Squeeze with Dotted Midlines indicator is a valuable addition to any trader's toolkit. By effectively highlighting periods of consolidation and potential breakout points, it aids in making informed trading decisions. The visual enhancements improve usability, allowing traders to quickly interpret market conditions and respond appropriately.
Crypto Divergence from BTCThis script is used to indicate when price action of a crypto coin is diverging significantly from that of BTC.
Explanation of the Script:
Inputs:
roc_length: The period used for calculating the Rate of Change.
ma_length: The period used for the moving average of the ROC.
threshold: The percentage difference that indicates a divergence.
Price Data:
The script retrieves the current asset's price and Bitcoin's price.
ROC Calculation:
The ROC for both the current asset and BTC is calculated based on the defined roc_length.
Moving Averages:
Simple moving averages (SMA) of the ROC values are calculated to smooth out the data.
Divergence Detection:
The indicator checks if the current asset's ROC MA is significantly higher or lower than Bitcoin's ROC MA based on the specified threshold.
Plotting:
The script plots the ROC values and their moving averages.
It also highlights the background in green when a bullish divergence is detected (when the asset is moving up while BTC is lagging) and in red for a bearish divergence.
Alternative Shark Harmonic Pattern [TradingFinder] ALT Shark🔵 Introduction
The Alternative Shark harmonic pattern, similar to the original Shark harmonic pattern introduced by Scott Carney, is a powerful tool in technical analysis used to identify potential reversal zones (PRZ) in financial markets.
These harmonic patterns help traders spot key turning points in market trends by relying on specific Fibonacci ratios. The Alternative Shark pattern is particularly unique due to its distinct Fibonacci retracements within the PRZ, which differentiate it from the standard Shark pattern and provide traders with more precise entry and exit signals.
By focusing on harmonic patterns and utilizing tools like the Harmonic Pattern Indicator, traders can easily identify both the Shark and Alternative Shark patterns, making it easier to find PRZs and capture potential trend reversals. This enhanced detection of potential reversal zones allows for better trade optimization and improved risk management.
Incorporating the Alternative Shark pattern into your technical analysis strategy enables you to enhance your trading performance by identifying market reversals with greater accuracy, improving the timing of your trades, and reducing risks associated with sudden market shifts.
🟣 Understanding the Types of Alternative Shark Pattern
The Alternative Shark harmonic pattern, much like the original Shark pattern, forms at the end of price trends and is divided into two types: Bullish and Bearish Alternative Shark patterns.
Bullish Alternative Shark Pattern :
This pattern typically forms at the end of a downtrend, signaling a potential reversal into an uptrend. Traders can use this pattern to identify buy entry points. The image below illustrates the core components of the Bullish Alternative Shark Pattern.
Bearish Alternative Shark Pattern :
Conversely, the Bearish Alternative Shark Pattern appears at the end of an uptrend and signals a potential reversal to a downtrend. This variation allows traders to adjust their strategies for selling. The image below outlines the characteristics of the Bearish Alternative Shark Pattern.
🟣 Differences Between Shark and Alternative Shark Patterns
Although both patterns share similar structures and serve as tools for identifying price reversals, there is one key difference between them :
AB to XA Ratio : In the Shark pattern, the AB leg retraces between 1 and 2 of the XA leg, whereas in the Alternative Shark pattern, this retracement is reduced to 0.382 to 0.618 of the XA leg. This difference in the retracement ratio leads to slightly different trade signals and can affect the timing of entry and exit points.
Other ratios and reversal signals remain consistent between the two patterns, but this difference in the AB to XA ratio provides traders with more nuanced opportunities to optimize their trades.
🔵 How to Use
🟣 Trading with the Bullish Alternative Shark Pattern
The Bullish Alternative Shark Pattern functions similarly to the traditional Bullish Shark, acting as a reversal pattern that helps traders recognize the end of a downtrend and the beginning of an uptrend.
The main distinction lies in the reduced AB retracement, which can offer more refined entry signals. Once the pattern completes, traders can look to enter buy trades and place a stop-loss below the lowest point of the pattern for effective risk management.
🟣 Trading with the Bearish Alternative Shark Pattern
The Bearish Alternative Shark Pattern operates much like the Bearish Shark pattern but with the adjusted AB to XA ratio. This difference provides traders with unique entry points for sell trades. Once the pattern is fully identified, traders can enter short positions, placing a stop-loss above the highest point of the pattern to safeguard against market fluctuations.
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Forma t: If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
🔵 Conclusion
The Alternative Shark harmonic pattern, despite its structural similarity to the traditional Shark pattern, introduces a key difference in the AB to XA ratio, making it a valuable addition to the trader’s toolkit. This subtle variation enables traders to pinpoint reversal points with greater accuracy and fine-tune their trading strategies.
As with any technical pattern, it is crucial to use the Alternative Shark pattern in combination with other technical indicators and strong risk management practices. Incorporating this pattern into a broader trading strategy can help traders enhance their ability to detect and capitalize on market reversals more effectively.
Fourier Transformed & Kalman Filtered EMA Crossover [Mattes]The Fourier Transformed & Kalman Filtered EMA Crossover (FTKF EMAC) is a trend-following indicator that leverages Fourier Transform approximation, Kalman Filtration, and two Exponential Moving Averages (EMAs) of different lengths to provide accurate and smooth market trend signals. By combining these three components, it captures the underlying market cycles, reduces noise, and produces actionable insights, making it suitable for detecting both emerging trends and confirming existing ones.
TECHNICALITIES:
>>> The Fourier Transform approximation is designed to identify dominant cyclical patterns in price action by focusing on key frequencies, while filtering out noise and less significant movements. It emphasizes the most meaningful price cycles, enabling the indicator to isolate important trends while ignoring minor fluctuations. This cyclical awareness adds an extra layer of depth to trend detection, allowing the EMAs to work with a cleaner and more reliable data set.
>>> The Kalman Filter adds dynamic noise reduction, adjusting its predictions of future price trends based on past and current data. As new price data comes in, the filter recalibrates itself to ensure that the price action remains smooth and devoid of erratic movements. This real-time adjustment is key to minimizing lag while avoiding false signals, which ensures that the EMAs react to more accurate and stable market data. The Kalman Filter’s ability to smooth price data without losing sensitivity to trend changes complements the Fourier approximation, ensuring a high level of precision in volatile and stable market environments.
>>> The EMA Crossover involves using two EMAs: a shorter EMA that reacts quickly to price movements and a longer EMA that responds more slowly. The shorter EMA is responsible for capturing immediate market shifts, detecting potential bullish or bearish trends. The longer EMA smooths out price fluctuations and provides trend confirmation, working with the shorter EMA to ensure the signals are reliable. When the shorter EMA crosses above the longer EMA, it indicates a bullish trend, likewise when it goes below the longer EMA, it signals a bearish trend. This setup provides a clear way to track market direction, with color-coded signals (green for bullish, red for bearish) for visual clarity. The flexibility of adjusting the EMA periods allows traders to fine-tune the indicator to their preferred timeframe and strategy, making it adaptable to different market conditions.
|-> A key technical aspect is that the first EMA should always be shorter than the second one. If the first EMA is longer than the second, the tool’s effectiveness is compromised because the faster EMA is designed to signal long conditions, while the longer one is made for signaling a bearish trend. Reversing their roles would lead to delayed or confused signals, reducing the indicator’s ability to detect trend shifts early and making it less efficient in volatile markets. This is the only key weakness of the indicator, failure to submit to this rule will result in confusion.
>>> These components work together like a clock to create a comprehensive and effective trend-following system. The Fourier approximation highlights key cyclical movements, the Kalman Filter refines these movements by removing noise, and the EMAs interpret the filtered data to generate actionable trend signals. Each component enhances the next, ensuring that the final output is both responsive and reliable, with minimal false signals or lag. creating an indicator using widespread concepts which haven't been combined before.
Summary
This indicator combines Fourier Transform approximation, Kalman Filtration, and two EMAs of different lengths to deliver accurate and timely trend-following signals. The Fourier approximation identifies dominant market cycles, while the Kalman Filter dynamically removes noise and refines the price data in real time. The two EMAs then use this filtered data to generate buy and sell signals based on their crossovers. The shorter EMA reacts quickly to price changes, while the longer EMA provides smoother trend confirmation. The components work in synergy to capture trends with minimal false signals or lag, ensuring traders can act promptly on market shifts. Customizable EMA periods make the tool adaptable to different market conditions, enhancing its versatility for various trading strategies.
To use the indicator, traders should adjust the EMA lengths based on their timeframe and strategy, ensuring that the shorter EMA remains shorter than the longer EMA to preserve the tool’s responsiveness. The color-coded signals offer visual clarity, making it easy to identify potential entry and exit points. This confluence of Fourier, Kalman, and EMA methodologies provides a smooth, highly effective trend-following tool that excels in both trending and ranging markets.
Advanced Economic Indicator by USCG_VetAdvanced Economic Indicator by USCG_Vet
tldr:
This comprehensive TradingView indicator combines multiple economic and financial metrics into a single, customizable composite index. By integrating key indicators such as the yield spread, commodity ratios, stock indices, and the Federal Reserve's QE/QT activities, it provides a holistic view of the economic landscape. Users can adjust the components and their weights to tailor the indicator to their analysis, aiding in forecasting economic conditions and market trends.
Detailed Description
Overview
The Advanced Economic Indicator is designed to provide traders and investors with a powerful tool to assess the overall economic environment. By aggregating a diverse set of economic indicators and financial market data into a single composite index, it helps identify potential turning points in the economy and financial markets.
Key Features:
Comprehensive Coverage: Includes 14 critical economic and financial indicators.
Customizable Components: Users can select which indicators to include.
Adjustable Weights: Assign weights to each component based on perceived significance.
Visual Signals: Clear plotting with threshold lines and background highlights.
Alerts: Set up alerts for when the composite index crosses user-defined thresholds.
Included Indicators
Yield Spread (10-Year Treasury Yield minus 3-Month Treasury Yield)
Copper/Gold Ratio
High Yield Spread (HYG/IEF Ratio)
Stock Market Performance (S&P 500 Index - SPX)
Bitcoin Performance (BLX)
Crude Oil Prices (CL1!)
Volatility Index (VIX)
U.S. Dollar Index (DXY)
Inflation Expectations (TIP ETF)
Consumer Confidence (XLY ETF)
Housing Market Index (XHB)
Manufacturing PMI (XLI ETF)
Unemployment Rate (Inverse SPY as Proxy)
Federal Reserve QE/QT Activities (Fed Balance Sheet - WALCL)
How to Use the Indicator
Configuring the Indicator:
Open Settings: Click on the gear icon (⚙️) next to the indicator's name.
Inputs Tab: You'll find a list of all components with checkboxes and weight inputs.
Including/Excluding Components
Checkboxes: Check or uncheck the box next to each component to include or exclude it from the composite index.
Default State: By default, all components are included.
Adjusting Component Weights:
Weight Inputs: Next to each component's checkbox is a weight input field.
Default Weights: Pre-assigned based on economic significance but fully adjustable.
Custom Weights: Enter your desired weight for each component to reflect your analysis.
Threshold Settings:
Bearish Threshold: Default is -1.0. Adjust to set the level below which the indicator signals potential economic downturns.
Bullish Threshold: Default is 1.0. Adjust to set the level above which the indicator signals potential economic upswings.
Setting the Timeframe:
Weekly Timeframe Recommended: Due to the inclusion of the Fed's balance sheet data (updated weekly), it's best to use this indicator on a weekly chart.
Changing Timeframe: Select 1W (weekly) from the timeframe options at the top of the chart.
Interpreting the Indicator:
Composite Index Line
Plot: The blue line represents the composite economic indicator.
Movement: Observe how the line moves relative to the threshold lines.
Threshold Lines
Zero Line (Gray Dotted): Indicates the neutral point.
Bearish Threshold (Red Dashed): Crossing below suggests potential economic weakness.
Bullish Threshold (Green Dashed): Crossing above suggests potential economic strength.
Background Highlights
Red Background: When the composite index is below the bearish threshold.
Green Background: When the composite index is above the bullish threshold.
No Color: When the composite index is between the thresholds.
Understanding the Components
1. Yield Spread
Description: The difference between the 10-year and 3-month U.S. Treasury yields.
Economic Significance: An inverted yield curve (negative spread) has historically preceded recessions.
2. Copper/Gold Ratio
Description: The price ratio of copper to gold.
Economic Significance: Copper is tied to industrial demand; gold is a safe-haven asset. The ratio indicates risk sentiment.
3. High Yield Spread (HYG/IEF Ratio)
Description: Ratio of high-yield corporate bonds (HYG) to intermediate-term Treasury bonds (IEF).
Economic Significance: Reflects investor appetite for risk; widening spreads can signal credit stress.
4. Stock Market Performance (SPX)
Description: S&P 500 Index levels.
Economic Significance: Broad measure of U.S. equity market performance.
5. Bitcoin Performance (BLX)
Description: Bitcoin Liquid Index price.
Economic Significance: Represents risk appetite in speculative assets.
6. Crude Oil Prices (CL1!)
Description: Front-month crude oil futures price.
Economic Significance: Influences inflation and consumer spending.
7. Volatility Index (VIX)
Description: Market's expectation of volatility (fear gauge).
Economic Significance: High VIX indicates market uncertainty; inverted in the indicator to align directionally.
8. U.S. Dollar Index (DXY)
Description: Value of the U.S. dollar relative to a basket of foreign currencies.
Economic Significance: Affects international trade and commodity prices; inverted in the indicator.
9. Inflation Expectations (TIP ETF)
Description: iShares TIPS Bond ETF prices.
Economic Significance: Reflects market expectations of inflation.
10. Consumer Confidence (XLY ETF)
Description: Consumer Discretionary Select Sector SPDR Fund prices.
Economic Significance: Proxy for consumer confidence and spending.
11. Housing Market Index (XHB)
Description: SPDR S&P Homebuilders ETF prices.
Economic Significance: Indicator of the housing market's health.
12. Manufacturing PMI (XLI ETF)
Description: Industrial Select Sector SPDR Fund prices.
Economic Significance: Proxy for manufacturing activity.
13. Unemployment Rate (Inverse SPY as Proxy)
Description: Inverse of the SPY ETF price.
Economic Significance: Represents unemployment trends; higher inverse SPY suggests higher unemployment.
14. Federal Reserve QE/QT Activities (Fed Balance Sheet - WALCL)
Description: Total assets held by the Federal Reserve.
Economic Significance: Indicates liquidity injections (QE) or withdrawals (QT); impacts interest rates and asset prices.
Customization and Advanced Usage
Adjusting Weights:
Purpose: Emphasize components you believe are more predictive or relevant.
Method: Increase or decrease the weight value next to each component.
Example: If you think the yield spread is particularly important, you might assign it a higher weight.
Disclaimer
This indicator is for educational and informational purposes only. It is not financial advice. Trading and investing involve risks, including possible loss of principal. Always conduct your own analysis and consult with a professional financial advisor before making investment decisions.
Kaufman's Adaptive Moving Average (KAMA)Another simple easy to use indicator that incorporates mean reversion and trend following.
Kaufman's Adaptive Moving Average (KAMA) is an indicator developed by Perry Kaufman that adjusts its sensitivity based on market volatility. It is designed to react more quickly during trending markets and slow down in sideways or volatile markets. The primary idea is that in a trending market, the moving average should be more sensitive to price changes, while in a non-trending market, it should be less responsive to noise.
KAMA Formula
The formula for the Kaufman Adaptive Moving Average is:
Efficiency Ratio (ER): Measures the efficiency of price movement over a given period.
ER
=
Smoothing Factor
Volatility
=
Sum of absolute price change
Sum of absolute price movement
ER=
Volatility
Smoothing Factor
=
Sum of absolute price movement
Sum of absolute price change
The Efficiency Ratio is calculated by taking the price change over a defined period and dividing it by the total price movement (which is the sum of absolute price changes).
Smoothing Constant (SC): This is a factor used to adjust the moving average's responsiveness:
SC
=
ER
×
(
2
/
(
𝑛
+
1
)
)
+
(
1
−
ER
)
×
(
2
/
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1
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SC=ER×(2/(n+1))+(1−ER)×(2/(n+1))
where n is the length of the moving average period.
Steps to Calculate KAMA:
Efficiency Ratio (ER):
Calculate the sum of absolute price changes over the chosen period.
Calculate the sum of absolute price movements over the same period.
Smoothing Constant (SC):
Use the Efficiency Ratio to adjust the smoothing factor.
KAMA Calculation:
The initial KAMA is the simple moving average (SMA) of the first n periods.
For subsequent periods, KAMA is calculated using a formula based on the smoothing constant and previous KAMA values.
experiment with the variables as you like!!
Pappabborgia Nasdaq RSI This script provides a custom Relative Strength Index (RSI) indicator that plots both the RSI of the selected stock and the Nasdaq (IXIC) on the same chart.
It offers a clear, side-by-side view to help traders better understand the stock's momentum relative to the overall market.
Key Features:
RSI Calculation for the Stock:
The script calculates the RSI for the chosen stock, with a default period of 14, adjustable to fit different timeframes.
The stock’s RSI is displayed in green 🟢, providing a direct view of its strength and momentum 📈.
RSI of the Nasdaq:
The script fetches the Nasdaq’s closing prices and calculates its RSI, which is shown in red for clear comparison 🔴.
Legend for Clarity:
A simple legend in the top-right corner identifies the green line as the stock’s RSI and the red line as the Nasdaq’s RSI, making it easy to interpret 📊.
Why Comparing the Stock's RSI to the Nasdaq Matters:
Broader Market Context:
Viewing both RSIs on the same chart helps you see whether the stock is moving in sync with the broader market or behaving independently. This provides valuable context for decision-making 📉.
Relative Strength Insights:
Comparing the stock’s RSI to the Nasdaq’s RSI highlights whether the stock is outperforming or underperforming the overall market, helping identify potential opportunities or risks 🟢🔴.
Improved Risk Management:
Monitoring overbought or oversold conditions in both the stock and Nasdaq RSIs can signal broader market trends and help avoid risky trades ⚠️.
Overall Benefit:
By tracking the RSI of both the stock and the Nasdaq, this script offers a powerful tool for understanding a stock's relative strength, providing essential context for smarter trading decisions 🎯.
Fibonacci Retracement Levels (Horizontal)With this, you should be able to see the Fibonacc-i retracement levels plotted as horizontal lines on your chart. If needed, you can adjust the len parameter to increase or decrease the lookback period used to calculate the high and low points.
Horizontal Lines: I've added horizontal lines for each Fibonacci retracement level (0%, 23.6%, 38.2%, 50%, 61.8%, 100%), starting from the current bar index to ensure they extend horizontally across the chart.
Labels: Labels are now placed on the right side of the chart for each level so you can easily identify the Fibonacci levels.
Dont make me crossStrategy Overview
This trading strategy utilizes Exponential Moving Averages (EMAs) to generate buy and sell signals based on the crossover of two EMAs, which are shifted downwards by 50 points. The strategy aims to identify potential market reversals and trends based on these crossovers.
Components of the Strategy
Exponential Moving Averages (EMAs):
Short EMA: This is calculated over a shorter period (default is 9 periods) and is more responsive to recent price changes.
Long EMA: This is calculated over a longer period (default is 21 periods) and provides a smoother view of the price trend.
Both EMAs are adjusted by a fixed shift amount of -50 points.
Input Parameters:
Short EMA Length: The period used to calculate the short-term EMA. This can be adjusted based on the trader's preference or market conditions.
Long EMA Length: The period used for the long-term EMA, also adjustable.
Shift Amount: A fixed value (default -50) that is subtracted from both EMAs to shift their values downwards. This is useful for visual adjustments or specific strategy requirements.
Plotting:
The adjusted EMAs are plotted on the price chart. The short EMA is displayed in blue, and the long EMA is displayed in red. This visual representation helps traders identify the crossover points easily.
Signal Generation:
Buy Signal: A buy signal is generated when the short EMA crosses above the long EMA. This is interpreted as a bullish signal, indicating potential upward price movement.
Sell Signal: A sell signal occurs when the short EMA crosses below the long EMA, indicating potential downward price movement.
Trade Execution:
When a buy signal is triggered, the strategy enters a long position.
Conversely, when a sell signal is triggered, the strategy enters a short position.
Trading Logic
Market Conditions: The strategy is most effective in trending markets. During sideways or choppy market conditions, it may generate false signals.
Risk Management: While this script does not include explicit risk management features (like stop-loss or take-profit), traders should consider implementing these to manage their risk effectively.
Customization
Traders can customize the EMA lengths and the shift amount based on their analysis and preferences.
The strategy can also be enhanced with additional indicators, such as volume or volatility measures, to filter signals further.
Use Cases
This strategy can be applied to various timeframes, such as intraday, daily, or weekly charts, depending on the trader's style.
It is suitable for both novice and experienced traders, offering a straightforward approach to trading based on technical analysis.
Summary
The EMA Crossover Strategy with a -50 shift is a straightforward technical analysis approach that capitalizes on the momentum generated by the crossover of short and long-term EMAs. By shifting the EMAs downwards, the strategy can help traders visualize potential entry and exit points more clearly, although it's important to consider additional risk management and market context for effective trading.
Exponantial Spread StrategyIt is strongly recommended to evaluate the strategy's performance on long time frames such as 1D or 4H.
This strategy calculates a custom moving average by the formula EMA+(TEMA-DEMA)*G,
G being the gain parameter. The main idea behind that is since TEMA is much more adaptive than DEMA their spread give us momentum, and incorporating this with a gain allows us to calculate a very responsive but yet not noisy moving average.
We calculate 4 MAs like described with gains 0,1,2,3 from less adaptive (normal EMA) to most adaptive. When they align in terms of position and the price is above the original MA we enter a long position, and do partial exits at each crossunder weighted by how adaptive ma is, the more adaptive the less weight, we do a full stop when the price crossed below under the original MA or the position aligment changed.
European and American Trading Sessions (Blue)The European and American trading sessions, in particular, are known for their volatility and volume, making them key periods for traders to watch.
This Pine Script indicator, "European and American Trading Sessions," helps traders visually distinguish these sessions directly on their charts by shading the background during active hours. We use this indicator in combination with the one that highlights the nighttime phases in white.
Here's a breakdown of how the indicator works:
Key Features of the Script:
Timezone Configuration:
The script allows users to select a timezone from a predefined list that includes UTC, London, Rome, New York, and Tokyo. This flexibility ensures that the session times are accurately displayed regardless of the server or local time of the user.
European Session Parameters:
Users can set the start and end times for the European session. By default, the session runs from 08:00 to 12:00, but the input options make it customizable down to the minute. The European session is highlighted with a light blue background (36% opacity) to avoid overwhelming the chart while still providing a clear visual cue.
American Session Parameters:
Similar to the European session, the American session can be customized. The default times are set from 12:01 to 20:59. This session is highlighted in a slightly darker blue (80% opacity), providing a distinct visual difference from the European session.
Session Timing Calculation:
The script calculates the start and end times for each session based on the selected timezone. It uses the timestamp() function to account for year, month, day, hour, and minute, ensuring that session timings are accurately applied to each day’s trading activity.
Background Highlighting:
Once the session times are defined, the script checks if the current chart time (time) falls within the European or American trading session. If the condition is true, the corresponding background color is applied, visually highlighting the active session directly on the chart. This feature makes it easy to identify when the European or American markets are in play.
Benefits for Traders:
Clear Session Visibility: The color-coded background makes it effortless for traders to identify when key trading sessions are active without needing to constantly check the clock.
Customizable to Your Needs:
With full control over the start and end times for both sessions, traders can adapt the indicator to fit their specific trading hours or preferences.
Timezone Flexibility:
No matter where you're trading from, the ability to set the timezone ensures that the sessions are displayed correctly according to your local time.
Explanation of the Code:
Timezone Selection:
Allows the user to select a timezone from predefined options such as Europe/Rome, America/New_York, etc. This timezone will be used to calculate session start and end times.
Session Timing Inputs:
The script takes user inputs for the start and end times of the European and American trading sessions. These inputs include the hour and minute for both sessions.
Colors:
The color of the European session is set to a blue shade with 36% opacity.
The American session is also colored blue but with a higher opacity of 80%.
Timestamp Calculation:
The timestamp() function converts the input hours and minutes into a time value, accounting for the selected timezone.
Session Conditions:
The script checks if the current time (time) falls within the European or American session. If true, it applies the respective background color for that session. This approach creates clear visual highlights on the chart, marking the active hours of the European and American trading sessions based on user inputs.
Options Series - Supertrend, HalfTrend, Ichimoku Cloud and P_SAR➤ Supertrend:
➤ HalfTrend:
➤ Ichimoku Cloud:
➤ Parabolic SAR:
⭐ Overview and How It Works:
This script combines multiple popular technical indicators—Supertrend, HalfTrend, Ichimoku Cloud, and Parabolic SAR—into a single, cohesive tool for analyzing price trends and reversals. Designed for traders who prefer multi-layered confirmation, it displays non-overlay signals in a candlestick format, helping users make sense of intricate market dynamics. It also includes a "Master Candle" condition, which aggregates the signals from all indicators, providing a powerful snapshot of market sentiment.
References for study,
Supertrend and HalfTrend and Ichimoku Cloud and Parabolic SAR
⭐ Key Features and Functionality:
The script integrates four indicators and visually represents them in a non-overlay fashion, meaning that each indicator's signal appears on separate candlestick layers. It uses color coding to differentiate between bullish and bearish signals. The Master Candle is a unique feature that aggregates the signals from all indicators to show the overall sentiment.
Supertrend: It uses ATR and a multiplier factor to create a trailing stop, identifying bullish and bearish trends.
HalfTrend: It analyzes market volatility that provides buy and sell signals based on volatility channels and historical highs and lows.
Ichimoku Cloud: It leverages historical highs and lows to form the conversion and baseline, which are compared to assess market strength.
Parabolic SAR: A stop-and-reverse system that highlights potential reversals. It is based on time and price, offering traders potential reversal points.
Master Candle: It computes a score based on the confluence of all four indicators, adding another layer of confirmation.
🎨 Visualizations and User Experience:
The script's user interface is highly visual, with color-coded candlesticks plotted across multiple layers. Each indicator has its own color coding for bullish and bearish signals, ensuring clarity:
➤ Green for bullish signals.
➤ Red for bearish signals.
➤ Each candlestick layer represents a different indicator (e.g., Supertrend, HalfTrend, etc.), making it easy for the trader to isolate and interpret signals.
➤ The "Master Candle" provides an overarching view of the market by displaying a consolidated signal, which can reduce confusion from mixed indicator signals.
⭐ Settings and Customization:
The script is highly customizable, allowing users to adjust the settings for each indicator. Key customizable parameters include:
• Supertrend ATR Period and Factor
• HalfTrend Amplitude and Channel Deviation
• Ichimoku Conversion, Base, and Lagging Span Periods
• Parabolic SAR Start, Increment, and Maximum value
Additionally, users can toggle the visibility of each indicator and customize the look of the plot to suit their preferences.
⭐ Uniqueness of the Concept:
No repaints. This is the advanced representation and the combination of multiple indicators into a single script, along with a powerful "Master Candle" that aggregates them, makes this tool unique. Most scripts provide isolated indicator signals, while this one brings together four powerful indicators and visually simplifies the analysis. The non-overlay style and color-coded candlesticks offer traders an easy-to-understand, actionable visual cue, which stands out from traditional indicator overlays.
🚀 Conclusion:
This script is a comprehensive, multi-indicator trading tool suitable for traders looking for reliable trend-following and reversal detection. Its ability to provide an aggregated "Master Candle" signal reduces noise and aids in better decision-making. Customization options allow users to tailor it to their trading style, while its clear visualizations provide an excellent user experience.
Fibonacci & Bollinger Bands StrategyThis strategy combines Bollinger Bands and Fibonacci retracement/extension levels to identify potential entry and exit points in the market. Here’s a breakdown of each component and how the strategy works:
1. Bollinger Bands:
Bollinger Bands consist of a simple moving average (SMA) and two standard deviations (upper and lower bands) plotted above and below the SMA. The bands expand and contract based on market volatility.
Purpose in Strategy:
The lower band represents an area where the market might be oversold.
The upper band represents an area where the market might be overbought.
The price crossing these bands suggests overextended market conditions, which can be used to identify potential reversals.
2. Fibonacci Retracement and Extension Levels:
Fibonacci retracement levels are horizontal lines that indicate where price might find support or resistance as it retraces some of its previous movement. Common retracement levels are 61.8% and 78.6%.
Fibonacci extension levels are used to project areas where the price might extend after completing a retracement. These levels can help determine potential targets after a significant price movement.
Purpose in Strategy:
The strategy calculates the most recent swing high (fibHigh) and swing low (fibLow) over a lookback period. It then plots Fibonacci retracement and extension levels based on this range.
The Fibonacci levels are used as key support and resistance areas. The price approaching or touching these levels signals potential turning points in the market.
3. Entry Criteria:
A long position (buy) is triggered when:
The price crosses below the lower Bollinger Band, indicating an oversold condition.
The price is near or above a Fibonacci extension level (calculated based on the most recent price swing).
This suggests that the price is potentially reaching a strong support area, where a reversal is likely.
4. Exit Criteria:
The long position is closed (exit trade) when either:
The price touches or crosses the upper Bollinger Band, signaling an overbought condition.
The price reaches a Fibonacci retracement level or exceeds the recent swing high (fibHigh), indicating a potential exhaustion point or a reversal area.
5. General Strategy Logic:
The strategy takes advantage of market volatility (captured by the Bollinger Bands) and key support/resistance levels (determined by Fibonacci retracement and extension levels).
By combining these two techniques, the strategy identifies potential entry points at oversold levels with the expectation that the market will retrace or reverse upward, especially when near key Fibonacci extension levels.
Exit points are identified by potential overbought levels (Bollinger upper band) or key Fibonacci retracement levels, where the price might reverse downward.
6. Conditions to Execute the Strategy:
The Fibonacci levels are only calculated once the price has made a significant movement, establishing a recent high and low over a 50-bar period (which you can adjust). This ensures the Fibonacci levels are based on meaningful swings.
The entry and exit signals are filtered using both Bollinger Bands and Fibonacci levels to ensure that trades are not taken solely based on one indicator, thus reducing false signals.
Key Features of the Strategy:
Trend-following with reversal: It tries to catch reversals when the price hits extreme levels (Bollinger Bands) while respecting important Fibonacci levels.
Dynamic market adaptation: The strategy adapts to market conditions as it recalculates Fibonacci levels based on recent price swings and adjusts the Bollinger Bands for market volatility.
Confirmation through multiple indicators: It uses both the volatility-based signals from Bollinger Bands and the price structure from Fibonacci levels to confirm trade entries and exits.
Summary of the Strategy:
The strategy looks to buy low and sell high based on oversold/overbought signals from Bollinger Bands and Fibonacci levels that indicate key support and resistance zones.
By combining these two technical indicators, the strategy aims to reduce risk and increase accuracy by only entering trades when both indicators suggest favorable conditions.
DF: Horizontal Levels and Colors for NYSE TICK Chart
DF: Horizontal Levels and Colors for NYSE TICK Chart
This is intended to be added very specifically to your NYSE TICK chart.
This script creates a custom indicator designed to enhance the visual analysis
of market breadth through the NYSE TICK data. It features:
1. **Horizontal Levels**:
- **1300 and -1300**: Gray lines indicating extreme bullish and bearish conditions.
- **1000 and -1000**: Light red and green lines representing significant support and resistance zones.
- **850 and -850**: Customizable blue lines that can be adjusted according to user preferences.
**Zero Line**: A solid white line marking the neutral point, drawn prominently for quick reference.
2. **Color Fills**:
- Red fill between 1000 and 1300 to highlight extreme bullish sentiment.
- Green fill between -1000 and -1300 to signify extreme bearish sentiment.
3. **Exponential Moving Average (EMA)**:
- Calculated based on user-defined length (default set to 8).
- The EMA line's color dynamically adjusts based on its slope:
- White when trending upwards.
- Magenta when trending downwards, providing quick visual cues of market momentum.
Overall, this script serves as a powerful tool for traders seeking to visualize market trends, support and resistance levels, and market breadth through the NYSE TICK data, enhancing their decision-making process in trading.
TASC 2024.11 Ultimate Strength Index█ OVERVIEW
This script implements the Ultimate Strength Index (USI) indicator, introduced by John Ehlers in his article titled "Ultimate Strength Index (USI)" from the November 2024 edition of TASC's Traders' Tips . The USI is a modified version of Wilder's original Relative Strength Index (RSI) that incorporates Ehlers' UltimateSmoother lowpass filter to produce an output with significantly reduced lag.
█ CONCEPTS
Many technical indicators, including the RSI, lag due to their heavy reliance on historical data. John Ehlers reformulated the RSI to substantially reduce lag by applying his UltimateSmoother filter to upward movements ( strength up - SU ) and downward movements ( strength down - SD ) in the time series, replacing the standard process of smoothing changes with rolling moving averages (RMAs). Ehlers' recent works, covered in our recent script publications, have shown that the UltimateSmoother is an effective alternative to other classic averages, offering notably less lag in its response.
Ehlers also modified the RSI formula to produce an index that ranges from -1 to +1 instead of 0 to 100. As a result, the USI indicates bullish conditions when its value moves above 0 and bearish conditions when it falls below 0.
The USI retains many of the strengths of the traditional RSI while offering the advantage of reduced lag. It generally uses a larger lookback window than the conventional RSI to achieve similar behavior, making it suitable for trend trading with longer data lengths. When applied with shorter lengths, the USI's peaks and valleys tend to align closely with significant turning points in the time series, making it a potentially helpful tool for timing swing trades.
█ CALCULATIONS
The first step in the USI's calculation is determining each bar's strength up (SU) and strength down (SD) values. If the current bar's close exceeds the previous bar's, the calculation assigns the difference to SU. Otherwise, SU is zero. Likewise, if the current bar's close is below the previous bar's, it assigns the difference to SD. Otherwise, SD is zero.
Next, instead of the RSI's typical smoothing process, the USI's calculation applies the UltimateSmoother to the short-term average SU and SD values, reducing high-frequency chop in the series with low lag.
Finally, this formula determines the USI value:
USI = ( Ult (SU) − Ult (SD)) / ( Ult (SU) + Ult (SD)),
where Ult (SU) and Ult (SD) are the smoothed average strength up and strength down values.
Chartonaut: GlimpseDisplays an overview of some key metrics as a table.
Market Cap : value of the company.
Float Shares : number of shares available for trading.
AR# : average range over the last # sessions.
ATR# : average true range over the last # sessions.
ATR#/MA# : distance of the current price from the given moving average (MA) in terms of ATR multiples.
Rel Volatility : current session's range, including gaps from previous close, relative to the ATR.
Additionally, it highlights some metrics if they are crossing a given threshold, as to warn that some criteria might not be met.
Delayed Opening Price Line with GuardrailsThis Delayed Opening Price Line with Guardrails indicator will draw 5 price level lines on the chart each day, beginning at the open of the first candle after a delay period specified by the user in the indicator settings. The default delay is 30 minutes from market open.
The lines are drawn at the open price of the first candle after the delay period, and then a specified increment above and below that price level. These increments default to 80 and 100, and can be adjusted in the indicator settings.
Most markets, indices, and equities have a finite and consistent range of price movement within a trading day. Eg. a particular stock may usually move no more that $50 up or down in a given day, which can be proven by looking at a historical chart. This indicator allows the user to quickly display that range on the chart once it's been defined.
Important note: This indicator is designed to be used on an intra-day chart - eg. minutes, or hourly. It will give an error if used on a longer time-frame chart.
