Demand and Supply Conditions with SignalsIntroduction:
This document outlines a trading strategy that utilizes price action analysis and color signals to make informed trading decisions. The strategy focuses on identifying demand and supply conditions, curve patterns, and generating signals based on historical price data. The colors associated with each condition and signal serve as visual indicators to assist in decision-making.
I. Strategy Overview:
Objective:
The objective of this trading strategy is to identify potential trading opportunities based on price action analysis and color signals.
Key Components:
Demand Condition: A green upward-facing triangle indicates a potential demand condition.
Supply Condition: A red downward-facing triangle indicates a potential supply condition.
Curve Pattern Condition: A blue upward-facing triangle indicates a potential curve pattern condition.
Signal Condition: A yellow upward-facing triangle indicates a potential buy signal.
II. Understanding the Colors:
* Green: Represents the demand condition, which suggests potential buying pressure in the market. A green upward-facing triangle is plotted on the chart when the demand condition is met at a specific candle or bar.
* Red: Represents the supply condition, which suggests potential selling pressure in the market. A red downward-facing triangle is plotted on the chart when the supply condition is met at a specific candle or bar.
* Blue: Represents the curve pattern condition, which suggests the presence of a specific pattern based on price action analysis. A blue upward-facing triangle is plotted on the chart when the curve pattern condition is met at a specific candle or bar.
* Yellow: Represents the signal condition, which is a combination of the demand condition and the curve pattern condition. A yellow upward-facing triangle is plotted on the chart when the signal condition is met at a specific candle or bar, indicating a potential buy signal.
III. Decision-Making Process:
* Demand and Supply Conditions: Identify potential buying opportunities when a green demand condition is present. Consider potential selling opportunities when a red supply condition is present. Use these conditions to assess the overall market sentiment and potential price reversals.
* Curve Patterns: Analyze the presence of blue curve pattern conditions to identify specific price patterns. These patterns can provide additional confirmation for potential trading decisions.
* Signal Condition: Pay attention to the yellow signal condition, which indicates a potential buy signal. Evaluate the overall market context and consider entering a buy position when the signal condition is met.
* Risk Management: Implement proper risk management techniques such as setting stop-loss orders and position sizing to protect against potential losses.
IV. Conclusion:
This trading strategy leverages price action analysis and color signals to identify potential trading opportunities. The colors associated with each condition and signal serve as visual aids to highlight specific points on the chart. It's important to thoroughly backtest and validate the strategy before applying it to real-world trading scenarios. Additionally, always consider market conditions, risk management, and individual trading preferences when making trading decisions.
Disclaimer: Trading involves risks, and this document does not guarantee profitable outcomes. Traders should exercise caution and perform their own due diligence before engaging in any trading activity.
Remember to continually review and adapt your trading strategy based on market conditions and personal experiences to enhance its effectiveness.
Индикаторы и стратегии
TechniTrend: Average VolatilityTechniTrend: Average Volatility
Description:
The "Average Volatility" indicator provides a comprehensive measure of market volatility by offering three different types of volatility calculations: High to Low, Body, and Shadows. The indicator allows users to apply various types of moving averages (SMA, EMA, SMMA, WMA, and VWMA) on these volatility measures, enabling a more flexible approach to trend analysis and volatility tracking.
Key Features:
Customizable Volatility Types:
High to Low: Measures the range between the highest and lowest prices in the selected period.
Body: Measures the absolute difference between the opening and closing prices of each candle (just the body of the candle).
Shadows: Measures the difference between the wicks (shadows) of the candle.
Flexible Moving Averages:
Choose from five different types of moving averages to apply on the calculated volatility:
SMA (Simple Moving Average)
EMA (Exponential Moving Average)
SMMA (RMA) (Smoothed Moving Average)
WMA (Weighted Moving Average)
VWMA (Volume-Weighted Moving Average)
Custom Length:
Users can customize the period length for the moving averages through the Length input.
Visualization:
Three separate plots are displayed, each representing the average volatility of a different type:
Blue: High to Low volatility.
Green: Candle body volatility.
Red: Candle shadows volatility.
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This indicator offers a versatile and highly customizable tool for analyzing volatility across different components of price movement, and it can be adapted to different trading styles or market conditions.
The Strat Candle State Table (Two Symbols)The Strat Candle State Table (Two Symbols) – Multi-Timeframe Analysis
This advanced indicator is designed for traders who follow The Strat methodology, providing a quick, clear, and actionable view of candle states across two selected symbols and a chosen timeframe. It allows you to seamlessly integrate multi-symbol analysis into your trading, offering real-time insights into price action and market momentum based on **The Strat’s** powerful principles.
What It Does:
For each selected symbol, the indicator retrieves and analyzes the price data for three candles:
- Candle 1 (C1): The third candle from the current one.
- Candle 2 (C2): The candle directly before the current one (previous candle).
- Current Candle (CC): The live candle, which is still forming.
Using this information, it plots the Scenario 1 (Inside Bar), Scenario 2 (Directional), and **Scenario 3 (Outside Bar)** states for each candle, color-coding them to help you quickly assess market conditions and price action.
Strat Candle States:
- Scenario 1 (Inside Bar): The candle stays within the high and low of the previous candle (indicating consolidation or indecision).
- Scenario 2 (Directional)* The candle breaks either the high (2-up) or low (2-down) of the previous candle, indicating potential continuation in that direction.
- Scenario 3 (Outside Bar): The candle breaks both the high and low of the previous candle, signaling increased volatility and a potential reversal.
Customizable Color Scheme:
The default colors follow these settings (but can be changed to your preference):
- 1U (Inside and Up): Yellow (indicating an inside bar that closed higher).
- 1D (Inside and Down): Orange (indicating an inside bar that closed lower).
- 2U (Two Up): Green if the candle closes higher, Red if the candle closes lower (conflict).
- 2D (Two Down): Red if the candle closes lower, Green if the candle closes higher (conflict).
- 3U (Three Up): Lighter Purple.
- 3D (Three Down): Darker Purple/Magenta.
Each state is dynamically updated based on the actual price action and whether the candle closes above or below the open. Conflict candles (like a 2-up closing red or 2-down closing green) are highlighted, making it easier to spot potential reversals or weakness in the trend.
Timeframe Flexibility:
You can overlay this indicator on any chart regardless of the timeframe. The key is to select the timeframe you want the indicator to plot for when setting up. Whether you're working on a 5-minute chart, daily, or even weekly, the indicator will analyze the candles according to the selected timeframe, giving you the versatility to adapt it to various trading strategies.
Powerful Use Cases:
1. Multi-Symbol Analysis in Real-Time: The Strat Candle State Table displays the candle states for two symbols at once, helping you track multiple instruments without switching charts. This is extremely useful when monitoring correlated assets like SPY and QQQ, or sector-related pairs such as DIA and IWM
2. Seamless Top-Down View: By analyzing the three most recent candles (C1, C2, and the current candle), the indicator allows you to maintain a top-down perspective on price action, spotting setups early and tracking candle state changes across different symbols and timeframes.
3. Enhanced Conflict Detection: The background shading automatically adjusts for conflict candles, such as a 2-up that closes red or a 2-down that closes green. This provides a quick visual cue to warn you when the current trend may be weakening or reversing.
4. Trade Execution Precision: With this table providing constant feedback on price action and candle state, traders can more easily time their entries and exits, whether they are looking for reversals or continuations
5. Focus on Timeframe Continuity: Use this indicator to stay in alignment with The Strat's Timeframe Continuity, ensuring you are trading in the direction of the most aligned candles, across both symbols. This allows for more precise trade management and higher-probability setups.
6. Customizable to Your Strategy: Change the color coding and candle states to match your personal preferences or trading strategy, making this indicator adaptable to your specific needs.
Most Powerful Use Case – Simultaneous Break Detection:
The Strat Candle State Table shines in setups where simultaneous breaks are being monitored across multiple symbols. For example, if both symbols trigger a 2-up or 3-up at the same time, this confirms that momentum is flowing in the same direction for multiple instruments, giving you stronger trade conviction.
By seeing real-time data for two key symbols, you can ensure that you're catching simultaneous breaks, where multiple instruments are signaling the same move. This can be especially effective in index-based trading, where the strength or weakness of multiple sectors or assets must align for a higher probability of success
Previous Day High, Low, and Midpointshows yesterdays high low and midpoint elimainating the need to use the fib tool every day
E9 ASIA Session
*note: Upon updating the script the conversion from V4 to v5 has lost the weekend extended lines and now prints an asia session for each day. It is recommended (esp for crypto) to extend these lines across the weekend like in the chart example above.
The E9 Asia Session Indicator is a valuable tool for traders aiming to track and analyze the Asia trading session on financial charts. This indicator provides insights into price behavior during the Asia session, which is crucial for making informed trading decisions. Here's an overview of its key functionalities and uses:
1. Session Highs and Lows
Purpose:
The indicator calculates and plots the high and low of the Asia session.
It helps identify key levels of support and resistance established during this trading period.
Importance:
These levels can act as significant reference points for future price movements.
Price action that occurs near these levels often provides clues about potential breakouts or reversals.
2. Session Background Color
Purpose:
The indicator can shade the background of the chart during the Asia session.
Importance:
This visual cue helps quickly identify the session's timeframe, enhancing the trader’s ability to observe price behavior within this specific period.
It aids in distinguishing between different trading sessions and understanding their influence on price action.
3. Start of Session Marker
Purpose:
A visual marker (such as a circle) is plotted at the beginning of each Asia session.
Importance:
This marker helps traders visually pinpoint the start of the session, making it easier to analyze how the price reacts from the session's opening.
4. End of Session Marker
Purpose:
A marker is plotted at the end of the Asia session, indicating where the session closes.
Importance:
This marker is useful for tracking the end of the session and observing price behavior around this critical juncture.
It helps in analyzing whether the session's high or low gets revisited or broken in subsequent sessions.
Practical Uses:
Strategic Planning: Traders can use the plotted high and low levels to set their trading strategies, stop-loss orders, and profit targets.
Market Analysis: Understanding how price interacts with the Asia session’s high and low levels can provide insights into market sentiment and potential price movements.
By incorporating the E9 Asia Session Indicator into your trading toolkit, you can gain a deeper understanding of the Asia session's impact on price dynamics, enhancing your overall trading strategy and decision-making process.
Disclaimer: The information contained in this article does not constitute financial advice or a solicitation to buy or sell any securities. All investments involve risk, and past performance does not guarantee future results. Always evaluate your financial circumstances and investment objectives before making trading decisions.
Gaussian SWMA For LoopGaussian SWMA For Loop Indicator
The "Gaussian SWMA For Loop" is a sophisticated indicator designed to identify potential trading opportunities by combining a Gaussian-weighted moving average (WMA) with a simple moving average (SMA), enhanced by a loop-based scoring system. This indicator is tailored for traders looking to capture trends and reversals with a refined approach, making use of advanced filtering techniques and custom thresholds for signal generation.
Key Features:
1. Gaussian Weighted Moving Average (WMA):
The indicator starts by applying a Gaussian filter to the input price data (default is the closing price). The Gaussian filter smooths the data by applying weights according to a Gaussian distribution, determined by the Gaussian Sigma parameter. This results in a smooth, noise-reduced WMA, which is more responsive to significant price movements while ignoring minor fluctuations.
2. Simple Moving Average (SMA) on Smoothed Data:
After the data is smoothed using the Gaussian filter, an SMA is calculated over this smoothed data. The length of this SMA can be adjusted via the SMA Length input, allowing users to control the level of additional smoothing applied to the already filtered data.
3. Loop-Based Scoring System:
Range Analysis: The core feature of this indicator is the loop-based scoring system. It evaluates the filtered SMA by comparing its current value to previous values over a specified range, defined by the From and To parameters.
Score Calculation: The loop iterates through each value within the defined range and adjusts a score based on whether the current filtered SMA is higher or lower than its historical values. This score is a measure of the trend's strength and direction.
Thresholds for Signal Generation: Users can define custom thresholds for long (Long Threshold) and short (Short Threshold) signals. The score is compared against these thresholds to generate buy and sell signals.
4. Signal Generation:
Buy Signal (L): Triggered when the score exceeds the user-defined Long Threshold.
Sell Signal (S): Triggered when the score falls below the Short Threshold.
5. Visual Enhancements:
The indicator plots the filtered SMA on the chart, with the line and bar colors changing based on the buy and sell signals:
Teal (color.rgb(0, 255, 187)) for a buy signal.
Magenta (color.rgb(255, 0, 157)) for a sell signal.
Gray for a neutral condition.
Additionally, the fill between the current and previous SMA values is colored based on the signal, providing a clear visual cue for trend direction and strength.
6. Alert Conditions:
The indicator includes customizable alerts that notify the user when a buy or sell signal is generated:
Long Alert: Notifies when a buy signal is triggered.
Short Alert: Notifies when a sell signal is triggered.
Configurable Inputs:
Main Group:
WMA Length (length): Sets the length of the Gaussian-weighted moving average.
SMA Length (len): Specifies the period for the SMA applied to the Gaussian-smoothed data.
Source (src): The price data used for calculations (default is the closing price).
Gaussian Sigma (sigma): Determines the standard deviation of the Gaussian distribution, influencing the smoothing effect.
For Loop Group:
From (a): The starting point for the loop-based score analysis.
To (b): The endpoint for the loop-based score analysis.
Threshold Group:
Long Threshold (threshold_L): Defines the score threshold above which a buy signal is triggered.
Short Threshold (threshold_S): Defines the score threshold below which a sell signal is triggered.
Practical Use:
This indicator is ideal for traders who want to identify trends and potential reversals with precision. The combination of Gaussian smoothing, SMA, and the loop-based scoring system offers a robust method to filter out noise and focus on significant market moves. The customizable thresholds and alert system further enhance its utility, making it a powerful tool for both manual and automated trading strategies.
Note: As with any trading indicator, it's recommended to backtest the "Gaussian SWMA For Loop" under various market conditions and use it in conjunction with other analysis techniques to confirm signals before making trading decisions.
Options Series - Explode BB⭐ Bullish Zone:
⭐ Bearish Zone:
⭐ Neutral Zone:
The provided script integrates Bollinger Bands with different lengths (20 and 200 periods) and applies customized candle coloring based on certain conditions. Here's a breakdown of its importance and insights:
⭐ 1. Dual Bollinger Bands (BBs):
Bollinger Bands (BB) with 20-period length:
This is the standard setting for Bollinger Bands, with a 20-period simple moving average (SMA) as the central line and upper/lower bands derived from the standard deviation.
These bands are used to identify volatility. Wider bands indicate higher volatility, while narrower bands indicate low volatility.
200-period BB:
This is a longer-term indicator providing insight into the overall trend and long-term volatility.
The 200-period bands filter out noise and offer a "macro" view of price movements compared to the 20-period bands, which focus on short-term price actions.
⭐ 2. Overlay of Bollinger Bands and SMA:
The script plots the Bollinger Bands along with the SMA (Simple Moving Average) of the 200-period BB. This gives traders both a short-term (20-period) and long-term (200-period) perspective, which is valuable for detecting major trend shifts or key support and resistance zones.
Using multiple time frames (20-period for short-term and 200-period for long-term) can help traders spot both immediate opportunities and overarching trends.
⭐ 3. Candle Coloring Based on Key Conditions:
Bullish Signal (GreenFluroscent): When the price closes above the upper 200-period Bollinger Band, the candle turns green, indicating a potential bullish breakout.
Bearish Signal (RedFluroscent): If the price closes below the lower 200-period Bollinger Band, the candle turns red, suggesting a bearish breakout.
Neutral or Uncertain Market: Candles are gray when the price remains between the upper and lower bands, indicating a lack of a strong directional bias.
This color-coded visualization allows traders to quickly assess market sentiment based on the Bollinger Bands' extremes.
⭐ 4. Strategic Importance of the Setup:
Multi-timeframe Analysis: Combining short-term (20-period) and long-term (200-period) Bollinger Bands enables traders to assess the market's overall volatility and trend strength. The longer-term bands act as a reference for broader trend direction, while the shorter-term bands can signal shorter-term pullbacks or entry/exit points.
Breakout Identification: By color-coding the candles when prices cross either the upper or lower 200-period bands, the script makes it easier to spot potential breakouts. This can be particularly helpful in trading strategies that rely on volatility expansions or trend-following tactics.
⭐ 5. Customization and Flexibility:
Custom Colors: The script uses distinct fluorescent green and red colors to highlight key bullish and bearish conditions, providing clear visual cues.
Simplicity with Flexibility: Despite its simplicity, the script leaves room for customization, allowing traders to adjust the Bollinger Band multipliers or apply different conditions to candle coloring for more nuanced setups.
This script enhances standard Bollinger Band usage by introducing multi-timeframe analysis, breakout signals, and visual cues for trend strength, making it a powerful tool for both trend-following and mean-reversion strategies.
🚀 Conclusion:
This script effectively simplifies volatility analysis by visually marking bullish, bearish, and neutral zones, making it a robust tool for identifying trade opportunities across multiple timeframes. Its dual-band approach ensures both trend-following and mean-reversion strategies are supported.
GAP Momentum Oscillator
This function calculates GAP Momentum, a measure of momentum based on the gaps between opening and closing prices over several periods.
Gaps are calculated for defined periods (here, by default, 14 periods). It determines :
UpGaps: the sum of positive gaps, i.e. openings that are higher than the previous period's close.
DnGaps: the sum of negative gaps, i.e. openings below the previous period's close.
It then calculates the GAP Momentum as the ratio between the sum of the up gaps and the sum of the down gaps, multiplied by 100. If the total of the down gaps is zero, the ratio takes a default value of 1 to avoid division by zero.
Birdies [LuxAlgo]The Birdies indicator uses a unique technique to provide support/resistance curves based on a circle connecting the last swing high/low.
A specific, customizable part of this circle acts as a curve of interest, which can trigger visual breakout signals.
🔶 USAGE
The script projects a bird-like pattern when a valid Swing point is found. Multiple customization options are included.
🔹 Trend & Support/Resistance Tool
The color fill patterns and the wing boundaries can give insights into the current trend direction as well as serve as potential support/resistance areas.
In the example above, "Birdies" coincide with pullback and support/resistance zones.
🔹 Swing Length & Buffer
Besides the "Swing Length", with higher values returning longer-term Swing Levels, the script's behavior can be fine-tuned with filters ("Settings" - "Validation").
🔹 Validation
To minimize clutter, three filters are included:
Minimum X-Distance: The minimum amount of bars between subsequent Swings
Minimum Y-Distance: The minimum amount of bars between subsequent Swings
Buffer (Multiple of ATR)
The "Minimum X/Y-Distance" creates a zone where a new Swing is considered invalid. Only when the Swing is out of the zone, can it be considered valid.
In other words, in the example above, a Swing High can only be valid when enough bars/time have passed, and the difference between the last Swing and the previous is more than the ATR multiplied by the "Minimum Y-Distance" factor.
The "Buffer" creates a line above/below the "Birdy", derived from the measured ATR at the conception of the "Birdy" multiplied with a factor ("Buffer").
When the closing price crosses the "Birdy", it must also surpass this buffer line to produce a valid signal, lowering the risk of clutter as a result.
🔶 DETAILS
Birdies are derived from a circle that connects two Swing points. The left-wing curve originates from the most recent "Swing point" to the last value on the circle before crossing its midline. The mirror image of the left wing creates the right wing.
Enabling "Origine" will draw a line from the last Swing to the first.
🔹 Style
The publication includes a style setting with four options.
The first, "Birdy," shows a bird-like shape derived from a circle connecting the last Swing High and Swing Low.
The second option holds everything from the first option but connects both wingtips, providing potential horizontal levels of interest.
When setting "Birdy" to "None", the visual breakout signals will not defer from previous settings, but the focus is shifted towards the fill color, which can help detect potential trend shift.
A fourth setting, "Left Wing", will only show the left part of the "Birdy" pattern, removing the right part from the equation. This will change the visual breakout signals, providing alternative signals.
🔶 SETTINGS
Swing Length: The period used for swing detection, with higher values returning longer-term Swing Levels.
🔹 Validation
Minimum X-Distance: The minimum amount of bars between subsequent Swings
Minimum Y-Distance: The minimum amount of bars between subsequent Swings
Buffer (Multiple of ATR)
🔹 Style
Bullish Patterns: Enable / color
Bearish Patterns: Enable / color
Buffer Zone: Show / Color
Color Fill: Show color fill between two Birdies (if available)
Origine: Show the line between both Swing Points
🔹 Calculation
Calculated Bars: Allows the usage of fewer bars for performance/speed improvement
E9 MACD
The E9 MACD (Moving Average Convergence Divergence) indicator is a powerful tool used in technical analysis to help traders identify potential buy and sell signals based on price action. It is designed to provide clear visual cues and alerts for trading decisions. Here’s how it applies to price action and its key functionalities:
Key Features and Functionality
MACD Line and Signal Line:
MACD Line: Represents the difference between a fast and a slow moving average of the price. It helps in identifying the momentum of the price movement.
Signal Line: A smoothed average of the MACD Line, used to generate trading signals when the MACD Line crosses above or below it.
Histogram: The histogram shows the difference between the MACD Line and the Signal Line. It visually represents the strength of the trend, with positive values indicating bullish momentum and negative values indicating bearish momentum.
Trend Coloring:
Uptrend: When the MACD Line is above the Signal Line, the bars can be colored green to indicate a potential buying opportunity.
Downtrend: When the MACD Line is below the Signal Line, the bars can be colored red to signal a potential selling opportunity.
Timeframe Flexibility:
The E9 MACD can be adjusted to different timeframes, allowing traders to analyze short-term or long-term trends based on their trading strategy. This flexibility helps in tailoring the indicator’s analysis to different market conditions.
Visual Alerts and Highlights:
The indicator includes options to highlight price bars and background colors when significant crossovers occur, making it easier to spot key trading signals.
Circles can be plotted on the MACD Line to indicate cross events, enhancing visual clarity.
Customizable Appearance:
Traders can customize the appearance of the MACD Line, Signal Line, and Histogram, including color and line width, to suit their personal preferences and improve readability.
Alerts for Trading Signals:
The E9 MACD can generate alerts for crossovers of the MACD Line and Signal Line, helping traders stay informed of potential trading opportunities even when they are not actively monitoring the charts.
Application in Trading
The E9 MACD is particularly useful for:
Identifying potential entry and exit points based on the crossing of the MACD Line and Signal Line.
Gauging the strength of the current trend through the histogram.
Adjusting to different timeframes to align the indicator with various trading strategies, from day trading to long-term investing.
By providing clear visual indicators and alerts, the E9 MACD helps traders make more informed decisions and better understand the momentum and direction of price movements.
China's stock market volume ratio1. Introduction to Volume Ratio:
In China's stock market, the volume ratio is an indicator used to measure relative trading volume. It compares the average volume per minute after the market opens to the average volume per minute over the past five trading days.
2. Application of Volume Ratio:
When there is a sudden surge in volume, the volume ratio chart will show a sharp upward break, indicating an increase in trading volume (initial market movements can be disregarded). Conversely, when volume contracts, the volume ratio will move downward.
If the volume ratio is greater than 1, it indicates that the average trading volume per minute for the current day is higher than the average over the past five days, signifying increased trading activity.
If the volume ratio is less than 1, it means that today's trading volume is lower than the average of the past five days, indicating decreased trading activity.
3. Volume Ratio Calculation:
The formula for calculating the volume ratio is:
Volume Ratio=Current Total Volume/(Average Volume per Minute over the Last 5 Days * Accumulated Market Open Time (in minutes))
Essa's Indicator 2.0Essa's Indicator V2: Beginner's Guide
This custom TradingView indicator has been designed to help you identify key trading opportunities based on session highs/lows, volatility, and moving averages. Below is a breakdown of the main features:
1. Exponential Moving Averages (EMAs)
Fast EMA (Blue Line): Tracks the short-term market trend (default: 9-period EMA).
Slow EMA (Red Line): Tracks the longer-term market trend (default: 21-period EMA).
You can turn on/off the EMAs using the "Show EMAs" option in the settings.
EMAs help smooth out price action and give a clearer picture of trends. A crossover of the fast EMA above the slow EMA can signal an upward trend, while the reverse may indicate a downward trend.
2. Session Highs and Lows
The indicator tracks price highs and lows for three major trading sessions:
London Session (Red): Highlighted in red. Active between 08:00 and 17:00 (LDN timezone) or 03:00 and 12:00 (NY timezone).
New York Session (Blue): Highlighted in blue. Active between 12:00 and 21:00 (LDN timezone) or 07:00 and 16:00 (NY timezone).
Asia Session (Yellow): Highlighted in yellow. Active between 22:00 and 08:00 (LDN timezone) or 18:00 and 03:00 (NY timezone).
Highs and lows for each session are plotted on the chart as lines. Breakouts from these levels can signal important trading opportunities:
London High/Low: Red lines.
New York High/Low: Blue lines.
Asia High/Low: Yellow lines.
The background color also changes depending on the active session:
London: Light red background.
New York: Light blue background.
Asia: Light yellow background.
3. Breakout Alerts
You can set alerts when the price breaks above or below session highs/lows:
Break Above London High: Alert triggered when the price crosses the London session high.
Break Below London Low: Alert triggered when the price falls below the London session low.
Similar alerts exist for the New York and Asia sessions as well.
4. Volatility-Adjusted EMA
The EMAs in this indicator are adjusted based on volatility (ATR - Average True Range). This allows the EMAs to respond to market conditions more dynamically, giving you more accurate trend readings in volatile markets.
5. ZigZag Feature (Optional)
You can enable the ZigZag feature to help visualize the price action's highs and lows:
ZigZag Lines: Highlight major peaks and troughs in price movements, helping you spot trends more easily.
This is helpful for identifying reversals or trend continuations.
6. Fractal Markers
This indicator uses fractals to mark potential turning points in the market:
Green Triangles (Above the Price): Indicate up fractals (potential reversal points where the price could move upwards).
Red Triangles (Below the Price): Indicate down fractals (potential reversal points where the price could move downwards).
Fractals can be a helpful confirmation tool when identifying entry and exit points.
7. Custom Timezone Options
You can choose between London (LDN) and New York (NY) timezones in the settings to adapt the session times to your trading location. This ensures the session high/low markers are displayed correctly for your trading region.
By default, the New York (NY) timezone is enabled for FXCM charts in the UK.
For BTC charts, you will need to switch to the appropriate time zone manually.
Thanks
Essa
E9 Shark-32 PatternUnderstanding the Shark-32 Pattern and its Trading Applications
The Shark-32 Pattern is a bearish technical trading formation used to predict market reversals or trend continuations. It highlights a downward move followed by a corrective rally, signaling a potential resumption of the downtrend. Here’s a breakdown of how it works:
What is the Shark-32 Pattern?
The Shark-32 pattern is a five-wave structure typically observed in bearish markets:
Wave 0 to X: A significant price decline starts the pattern.
Wave X to A: A correction pushes the price slightly upward.
Wave A to B: The price drops again but doesn’t reach the initial low.
Wave B to C: A final sharp decline concludes the pattern.
Once Wave C is formed, it suggests that the market will continue to move downward, presenting a potential selling or shorting opportunity.
Using the Pattern in Trading
This pattern is valuable for traders seeking high-probability bearish setups. The goal is to capitalize on the continuation of a downtrend following the corrective rally (X to A). Identifying the Shark-32 pattern helps anticipate the next wave of selling pressure.
Trading Setup
Identify a Shark-32 pattern.
If the price closes above the pattern's high, buy at the open the next day.
If the price closes below the pattern's low, short at the open the next day.
Sell/cover when the price moves 7% in the direction of the breakout.
Close the trade for a loss if the price moves 7% in the opposite direction.
For example, in a bull market after an upward breakout from a Shark-32, the net gain was $69.55. The method won 56% of the time with 5,218 winning trades and an average gain of $714.07. Conversely, 44% of trades were losers, with an average loss of $747.33. The average holding period was 26 calendar days.
The gains and losses were closely aligned with the 7% threshold set for this test.
Key Target Levels
To enhance the strategy, use dotted projection lines as target levels:
Upper Target: Drawn above the high of the corrective rally (Wave A). If the price breaks above this line, it may signal further upward movement, indicating a potentially weaker downtrend.
Lower Target: Positioned below the low of Wave C, providing a target for bearish trades.
These lines help determine future price targets and assist in setting take-profit or stop-loss levels.
Trading the Breakout
Look for breakouts once the Shark-32 pattern is identified:
Upward Breakout: If the price closes above the green line (high from two bars ago), it indicates a potential reversal to the upside.
Downward Breakout: If the price breaks below the red line (low from two bars ago), it confirms the bearish continuation.
Breakouts allow traders to adjust their positions based on market shifts.
Trading Tips
Continuation: The Shark-32 pattern acts as a continuation 60% of the time, confirming the ongoing trend.
Breakout Confirmation: Wait for the price to close above or below the pattern’s key levels before entering a trade.
Trade with the Trend: Since the Shark-32 is a continuation pattern, expect the breakout to align with the inbound price trend.
Symmetry: Patterns with symmetry often perform better. For more insights, refer to detailed trading literature.
Half-Staff: The Shark-32 can form midway in a trend, similar to flags and pennants.
Shark-32: Trading Performance
Based on an analysis of 23,369 trades, the following performance metrics were observed:
Bull Market with Upward Breakout: The average net profit was $69.55. This method won 56% of the time, with winning trades averaging $714.07. Losing trades, which constituted 44% of the total, had an average loss of $747.33. The average holding period was 26 calendar days.
Bull Market with Downward Breakout: The average net loss was $(76.36). This method won 43% of the time, with winning trades averaging $753.56. Losing trades, which constituted 57% of the total, had an average loss of $706.32. The average holding period was 23 calendar days.
Bear Market with Upward Breakout: The average net loss was $(89.13). This method won 46% of the time, with winning trades averaging $710.77. Losing trades, which constituted 54% of the total, had an average loss of $756.97. The average holding period was 16 calendar days.
Bear Market with Downward Breakout: The average net profit was $65.17. This method won 52% of the time, with winning trades averaging $781.62. Losing trades, which constituted 48% of the total, had an average loss of $722.41. The average holding period was 13 calendar days.
Absolute ZigZagThis ZigZag Indicator is a bit unique in it's kind.
It uses my own Absolute ZigZag Lib to calculate the pivots:
Instead of using percentages or looking more than 1 bar left or right, this Zigzag library calculates pivots by just looking at the current bar highs and lows and the ones of one bar earlier. This is a very fast and accurate way of calculating pivots.
The library also features a solution for bars that have both a higher high and a higher low like seen below.
You can also use your own colors for the labels and the lines:
You can also quickly select a one-colored theme without changing all colors at once:
Standard Deviation based Upper Lower RangeThis script makes use of historical data for finding the standard deviation on daily returns. Based on the mean and standard deviation, the upper and lower range for the stock is shown upto 2x standard deviation. These bounds can be treated as volatility range for the next n trading sessions. This volatility is based on historical data. Users can change the lookback historical period, and can also set the time period (days) for upcoming trading sessions.
This indicator can be useful in determining stoploss and target levels along with the traditional support/resistance levels. It can also be useful in option trading where one needs to determine a range beyond which it is safe to sell an option.
A range of 1 SD has around 65% to 68% probability that it will not be breached. A range of 2 SD has around 95% probability that it will not be breached.
The indicator is based on Normal distribution theory. In future editions, I envision to also calculate the skewness and kurtosis so that we can determine if a stock is properly following Normal Distribution theory. That may further favor the calculated range.
RSI ProfitGuard [CHE]The RSI ProfitGuard Indicator is a comprehensive tool designed to assist traders in making informed decisions by integrating the Relative Strength Index (RSI) with automated Take Profit (TP) and Stop Loss (SL) levels. This indicator enhances trading strategies by providing clear entry signals and risk management parameters.
Key Features
RSIBased Signals: Utilizes RSI crossovers and crossunders to generate trade signals.
Automated TP and SL: Automatically calculates and plots Take Profit and Stop Loss levels based on userdefined methods.
Customizable Trade Types: Supports Long trades, Short trades, or both simultaneously.
Flexible Calculation Methods: Choose between Percentagebased or ATRbased methods for determining TP and SL levels.
Visual Enhancements: Highlights overbought and oversold RSI regions with background colors and marks trade entries with arrows.
Alerts: Provides realtime alerts when TP or SL levels are reached, ensuring timely trade management.
How It Works
1. RSI Calculation: The indicator calculates the RSI value based on the specified length.
2. Trade Signals:
Long Entry: Triggered when RSI crosses above the defined crossover threshold.
Short Entry: Triggered when RSI crosses below the defined crossunder threshold.
3. TP/SL Level Determination:
Percentage Method: Sets TP and SL as a percentage above and below the entry price.
ATR Method: Sets TP and SL based on the Average True Range (ATR), allowing for dynamic adjustments based on market volatility.
4. Visualization: Draws lines and labels on the chart to indicate TP, SL, and entry points.
5. Trade Management: Monitors price movements to determine if TP or SL levels are hit, automatically managing the trade state.
Customization Options
Trade Type Selection: Choose to execute Long trades, Short trades, or both.
RSI Settings:
RSI Length: Defines the period for RSI calculation (default is 14).
Crossover Threshold: RSI level above which a Long entry is signaled (default is 65).
Crossunder Threshold: RSI level below which a Short entry is signaled (default is 35).
Delay Settings: Sets the minimum number of bars between consecutive trade signals to avoid overtrading.
TP/SL Settings:
Method Selection: Choose between Percentage or ATRbased calculations.
Percentage Values: Define the percentage for TP and SL levels.
ATR Settings: Define ATR length and multipliers for TP and SL when using the ATR method.
Visual Settings:
Line Colors and Styles: Customize the appearance of TP, SL, crossover, and crossunder lines.
Transparency: Adjust the transparency of lines for better chart visibility.
Label Offset: Position labels at a specified number of bars to the right for clarity.
Using the Indicator
1. Add to Chart: Apply the RSI ProfitGuard Indicator to your TradingView chart.
2. Configure Settings: Adjust the parameters according to your trading strategy and risk tolerance.
3. Interpret Signals:
Long Entries: Look for green upward arrows indicating potential buy opportunities.
Short Entries: Look for red downward arrows indicating potential sell opportunities.
4. Monitor TP and SL Levels: Observe the plotted lines and labels to manage your trades effectively.
5. Set Up Alerts: Enable alerts to receive notifications when TP or SL levels are reached, ensuring you can act promptly.
Benefits
Enhanced DecisionMaking: Combines RSI signals with clear risk management levels.
Time Efficiency: Automates the calculation and plotting of TP and SL, saving time and reducing manual errors.
Flexibility: Adapts to various trading styles and market conditions through customizable settings.
Risk Management: Helps in defining and adhering to risk parameters, essential for longterm trading success.
Conclusion
The RSI ProfitGuard Indicator is an invaluable tool for traders seeking to integrate technical analysis with automated risk management. Its customizable features and realtime alerts provide a robust framework for executing and managing trades with confidence.
Disclaimer
The content provided with our RSI ProfitGuard Indicator, including all code, scripts, lessons, and materials, is strictly for educational and informational purposes only. It is not intended as, and should not be interpreted as, financial advice, a recommendation to buy or sell, or an offer of any financial product or service.
Key Points:
Educational Purpose:
All strategies, tools, and examples included within the RSI ProfitGuard Indicator are provided solely for illustrative purposes. They are designed to demonstrate coding techniques and the functionality of Pine Script within a trading context.
No Financial Advice:
The RSI ProfitGuard Indicator does not constitute financial advice. Users should not rely on it as a basis for making investment or trading decisions.
Hypothetical Results:
Any results or performance metrics derived from using the RSI ProfitGuard Indicator are purely hypothetical. Past performance is not indicative of future results, and there is no guarantee of profitability.
Risk Disclosure:
Trading and investing involve significant risks, including the potential loss of principal. The RSI ProfitGuard Indicator is not suitable for all persons, and users should be aware of the inherent risks involved in trading.
Professional Consultation:
Before making any trading decisions, it is strongly recommended to consult with a qualified financial professional to fully understand the risks and ensure that such decisions align with your financial situation and goals.
User Responsibility:
By using the RSI ProfitGuard Indicator, you acknowledge and agree that all trading decisions are made solely at your own discretion and risk. The developers and providers of the RSI ProfitGuard Indicator assume no responsibility or liability for any losses or damages resulting from its use.
Additional Notes:
No Guarantees:
There are no guarantees regarding the accuracy, reliability, or completeness of the RSI ProfitGuard Indicator. Users utilize the tool at their own risk.
No Endorsement:
Any mention of third-party products, services, or strategies within the RSI ProfitGuard Indicator does not constitute an endorsement or recommendation.
Updates and Modifications:
The RSI ProfitGuard Indicator may be updated or modified over time. Users are responsible for staying informed about any changes and understanding how they may impact the use of the tool.
Summary
This disclaimer clearly states that the RSI ProfitGuard Indicator is intended for educational purposes and should not be used as financial advice. It highlights the risks associated with trading, the hypothetical nature of any results, and the importance of consulting with a financial professional. Additionally, it emphasizes that users are solely responsible for their trading decisions and any outcomes that result from using the indicator.
Tips for Implementation:
Visibility:
Ensure that this disclaimer is prominently displayed wherever the RSI ProfitGuard Indicator is offered, such as on your website, within the TradingView description, or in any accompanying documentation.
Clarity:
Use clear and concise language to make sure that all users understand the limitations and responsibilities associated with using the indicator.
Legal Review:
Consider having the disclaimer reviewed by a legal professional to ensure that it meets all necessary legal requirements and adequately protects your interests.
Regular Updates:
Periodically review and update the disclaimer to reflect any changes in the indicator's functionality or in relevant laws and regulations.
Time based Insights [Digit23]Description:
The NSE Trading Time Insights indicator is a powerful tool designed for traders on the National Stock Exchange (NSE) of India. It provides a comprehensive overview of different trading sessions throughout the day, offering valuable insights into market characteristics and potential trading strategies for each time period.
Key Features:
1. Dynamic Session Display: The indicator automatically detects the current trading session and highlights it in the table.
2. Customizable Table: Users can choose to display either a full table showing all sessions or focus on the current session only.
3. User-Editable Content: Time ranges, session characteristics, and trading insights are fully customizable by the user.
4. Visual Customization: Table position and color scheme can be adjusted to suit individual preferences.
5. Market Status Indicator: Clearly shows when the market is closed.
Sessions Covered:
1. Opening Bell
2. Mid-Morning
3. Lunch Hour
4. Early Afternoon
5. Power Hour
For each session, the indicator displays:
- Time Range
- Session Name
- Market Characteristics
- Trading Insights
Customization Options:
- Table Position: Choose from top-left, top-right, bottom-left, or bottom-right of the chart.
- Color Scheme: Customize colors for header, cells, highlighting, and market closed status.
- Session Details: Edit time ranges, characteristics, and trading insights for each session.
Usage:
This indicator is particularly useful for:
1. New traders learning about intraday market dynamics on the NSE.
2. Experienced traders looking for a quick reference of session characteristics.
3. Traders developing or refining time-based trading strategies.
4. Anyone seeking to understand the typical flow of the trading day on the NSE.
Note:
The indicator uses the chart's time to determine the current session. Ensure your chart is set to the correct time zone for accurate results.
Disclaimer:
This indicator is for informational purposes only. The provided insights and characteristics are general in nature and may not reflect current market conditions. Always conduct your own analysis and risk assessment before making trading decisions.
Adjustable Correction from ATH SignalA "Correction Signal from All-Time High" is an indicator used to identify potential reversals or pullbacks in an asset's price after it has reached its highest historical level, known as an all-time high (ATH). This signal typically occurs when the price begins to decline after hitting the ATH, suggesting a correction phase where the asset retraces part of its upward movement.
Key elements of this signal include:
Overbought Conditions: The asset may have experienced a strong rally leading to an overbought condition, where the price could be considered too high relative to recent trends.
Reversal Patterns: The correction signal is often accompanied by technical patterns or indicators that suggest a reversal, such as bearish candlestick formations, negative divergence in momentum indicators, or moving average crossovers.
Percentage Decline: A correction is generally defined as a price drop of at least 10% from the ATH, although smaller pullbacks may also signal potential market shifts.
Volume Analysis: Increased selling volume after the ATH can validate the correction signal, indicating that more market participants are taking profits or exiting positions.
This signal helps traders and investors anticipate periods of market consolidation or potential downturns after significant price advances, allowing for better risk management or entry points for new positions.
RSI Multi-Timeframe PINESCRIPTLABS📈 Use the Relative Strength Index (RSI) calculated across multiple time frames to generate signals
🔹 Intraday: Displays a table with real-time RSI values for the time frames of 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, and 1 day.
🔹 Standard: Displays a table with real-time RSI values for the time frames of 30 minutes, 1 hour, 4 hours, 1 day, 1 week, and 1 month.
The indicator allows you to customize overbought and oversold thresholds, as well as choose between viewing RSI values for intraday or standard time frames, tailoring the analysis to your specific needs. 🔧📊
🔔 Signals are generated when in 4 of the 6 time frames we define below:
Overbought Signal (When RSI indicates overbought conditions):
• Intraday: Activated when the RSI in the time frames of 5 minutes, 15 minutes, 30 minutes, and 1 hour is above the 70 threshold. 📈
• Standard: Activated when the RSI in the time frames of 30 minutes, 1 hour, 4 hours, and 1 day is above the 70 threshold. 📈
Oversold Signal (When RSI indicates oversold conditions):
• Intraday: Activated when the RSI in the time frames of 5 minutes, 15 minutes, 30 minutes, and 1 hour is below the 30 threshold. 📉
• Standard: Activated when the RSI in the time frames of 30 minutes, 1 hour, 4 hours, and 1 day is below the 30 threshold. 📉
Español:
📈 Utiliza el Índice de Fuerza Relativa (RSI) calculado en varios marcos de tiempo para generar señales
🔹 Intraday: Muestra una tabla con los valores del RSI en tiempo real para los marcos de tiempo de 5 minutos, 15 minutos, 30 minutos, 1 hora, 4 horas y 1 día.
🔹 Standard: Muestra una tabla con los valores del RSI en tiempo real para los marcos de tiempo de 30 minutos, 1 hora, 4 horas, 1 día, 1 semana y 1 mes.
El indicador te permite personalizar los umbrales de sobrecompra y sobreventa, así como elegir entre ver los valores RSI para marcos de tiempo intradía o estándar, adaptando el análisis a tus necesidades específicas. 🔧📊
🔔 Las señales se generan cuando en 4 de los 6 marcos de tiempo que definimos a continuación:
Señal de Sobrecompra (Cuando el RSI indica sobrecompra):
• Intraday: Se activa cuando el RSI en los marcos de tiempo de 5 minutos, 15 minutos, 30 minutos y 1 hora está por encima del umbral de 70. 📈
• Standard: Se activa cuando el RSI en los marcos de tiempo de 30 minutos, 1 hora, 4 horas y 1 día están por encima del umbral de 70. 📈
Señal de Sobreventa (Cuando el RSI indica sobreventa):
• Intraday: Se activa cuando el RSI en los marcos de tiempo de 5 minutos, 15 minutos, 30 minutos y 1 hora está por debajo del umbral de 30. 📉
• Standard: Se activa cuando el RSI en los marcos de tiempo de 30 minutos, 1 hora, 4 horas y 1 día están por debajo del umbral de 30. 📉
Multi-Symbol Volume Increase Screener [CHE] MultiSymbol Volume Increase Screener
Designed for TradingView
Presented by Chervolino
Introduction
Welcome to the presentation of the MultiSymbol Volume Increase Screener—a powerful tool designed to enhance your trading strategy on TradingView. Developed at the request of jscott143, this screener provides traders with realtime insights into significant volume movements across multiple symbols, enabling more informed and timely trading decisions.
Purpose and Objectives
Identify HighVolume Opportunities: Detect symbols experiencing a significant increase in volume compared to their historical average.
Monitor Multiple Symbols Simultaneously: Efficiently track up to five symbols in one view.
RealTime Alerts: Receive instant notifications when predefined volume conditions are met.
Comprehensive Overview: Display volume data and percentage increases in an organized table for easy analysis.
Key Features
1. MultiSymbol Monitoring
Track up to five different symbols simultaneously.
Customize the list of symbols based on your trading portfolio.
2. Volume Analysis
Compare current candle volume against the average volume over a specified period.
Calculate and display the percentage increase in volume.
3. RealTime Alerts
Set a volume increase multiplier (e.g., 1.5x) to trigger alerts.
Receive alerts via email, popup, or SMS when conditions are met.
4. UserFriendly Table Display
View symbols, their current volume, and percentage increase in a clear, concise table.
Colorcoded indicators highlight significant volume changes.
5. Customizable Parameters
Adjust the average volume period to suit different trading strategies.
Set your preferred volume increase multiplier for alerts.
How It Works
1. User Inputs:
Symbols Selection: Choose up to five symbols you wish to monitor.
Average Volume Period: Define the number of bars over which the average volume is calculated (default is 20).
Volume Increase Multiplier: Set the threshold for volume increase to trigger alerts (default is 1.5x).
2. Volume Calculation:
The screener fetches the current volume and calculates the simple moving average (SMA) of volume over the defined period for each symbol.
It then determines if the current volume exceeds the average volume by the specified multiplier.
3. Data Display:
A table is generated on the chart displaying each symbol, its current volume, and the percentage increase.
Green text indicates that the volume increase condition has been met.
4. Alert Generation:
When a symbol's current volume surpasses the average volume by the set multiplier, an alert is triggered.
Alerts are customizable and can be set to notify you through various channels.
Benefits
Enhanced DecisionMaking: Quickly identify highvolume trading opportunities across multiple assets.
Time Efficiency: Monitor several symbols without the need to switch between charts.
Proactive Trading: Stay informed with realtime alerts, allowing for timely trading actions.
Customization: Tailor the screener settings to align with your unique trading strategies and preferences.
Setup Instructions
1. Add the Screener to TradingView:
Navigate to TradingView and open the Pine Editor.
Add the MultiSymbol Volume Increase Screener indicator to your chart.
Save and apply the indicator.
2. Configure User Inputs:
Select up to five symbols you wish to monitor in the input fields "Symbol 1" to "Symbol 5".
Adjust the "Average Volume Period" and "Volume Increase Multiplier" as needed.
3. Set Up Alerts:
Click on the Alarm icon (🔔) in the TradingView toolbar.
In the "Condition" dropdown, select the "MultiSymbol Volume Increase Screener".
Choose the specific alert condition for each symbol (e.g., "Volume Increase Alert for Symbol 1").
Configure the alert actions (e.g., email, popup, SMS) and click "Create".
Repeat this process for each symbol you wish to monitor.
Visual Demonstration
Table Display Example:
| Symbol | Volume | % Increase |
| AAPL | 150,000 | 50.00% |
| MSFT | 120,000 | 20.00% |
| GOOGL | 180,000 | 80.00% |
| AMZN | 130,000 | 30.00% |
| TSLA | 160,000 | 60.00% |
Green Text: Indicates that the volume increase condition has been met for that symbol.
Alert Notification Example:
```
🚀 Symbol 1 shows a volume increase!
```
Note: Replace "Symbol 1" with the actual symbol as per your configuration.
Customization Options
Increase the Number of Symbols:
While the current screener monitors five symbols, it can be extended to monitor more by adding additional input fields and corresponding calculations. However, be mindful of TradingView's Pine Script limitations and potential performance impacts.
Adjust Volume Period and Multiplier:
Tailor the "Average Volume Period" and "Volume Increase Multiplier" to align with your specific trading strategies and market conditions.
Enhance Table Information:
Incorporate additional data points such as current price, price change percentage, or other technical indicators to enrich your analysis.
Benefits of Using the Screener
Efficiency: Saves time by providing a consolidated view of multiple symbols' volume activity.
Proactive Trading: Enables you to act swiftly on significant volume movements, which often precede price changes.
DataDriven Decisions: Facilitates informed trading decisions based on realtime volume analysis.
Customization: Offers flexibility to adapt the screener to various trading styles and preferences.
Conclusion
The MultiSymbol Volume Increase Screener is an invaluable tool for traders looking to capitalize on significant volume movements across multiple assets. Developed at the request of jscott143, this screener integrates seamlessly with TradingView, providing realtime insights and alerts to enhance your trading strategy.
Q&A
Feel free to ask any questions or request further customization to better suit your trading needs.
Contact Information
Created for: jscott143
Thank you for your attention!
Winning and Losing StreaksThe Pine Script indicator "Winning and Losing Streaks" tracks and visualizes the length of consecutive winning and losing streaks in a financial series, such as stock prices. Here’s a detailed description of the indicator, including the relevance of statistical analysis and streak tracking.
Indicator Description
The "Winning and Losing Streaks" indicator in Pine Script is designed to analyze and display streaks of consecutive winning and losing days in trading data. It helps traders and analysts understand the persistence of trends in price movements.
Here’s how it functions:
Streak Calculation:
Winning Streak: A series of consecutive days where the closing price is higher than the previous day's closing price.
Losing Streak: A series of consecutive days where the closing price is lower than the previous day's closing price.
Doji Candles: The indicator also considers Doji candles, where the difference between the opening and closing prices is minimal relative to the high-low range, and excludes these from being counted as winning or losing days.
Statistical Analysis:
The indicator computes the maximum and average lengths of winning and losing streaks.
It also tracks the current streak lengths and maintains arrays to store the historical streak data.
Visualization:
Histograms: Winning and losing streaks are visualized using histograms, which provide a clear graphical representation of streak lengths over time.
Relevance of Statistical Analysis and Streak Tracking
1. Statistical Significance of Streaks
Tracking winning and losing streaks has significant statistical implications for trading strategies and risk management:
Autocorrelation: Streaks in financial time series can reveal autocorrelation, where past returns influence future returns. Studies have shown that financial time series often exhibit autocorrelation, which can be used to forecast future price movements (Lo, 1991; Jegadeesh & Titman, 1993). Understanding streaks helps in identifying and leveraging these patterns.
Behavioral Finance: Streak analysis aligns with concepts from behavioral finance, such as the "hot-hand fallacy," where investors may perceive trends as more persistent than they are (Gilovich, Vallone, & Tversky, 1985). Statistical streak analysis provides a more objective view of trend persistence, helping to avoid biases.
2. Risk Management and Strategy Development
Risk Assessment: Identifying the length and frequency of losing streaks is crucial for managing risk and adjusting trading strategies. Long losing streaks can indicate potential strategy weaknesses or market regime changes, prompting a reassessment of trading rules and risk management practices (Brock, Lakonishok, & LeBaron, 1992).
Strategy Optimization: Statistical analysis of streaks can aid in optimizing trading strategies. For example, understanding the average length of winning and losing streaks can help in setting more effective stop-loss and take-profit levels, as well as in determining the optimal position sizing (Fama & French, 1993).
Scientific References:
Lo, A. W. (1991). "Long-Term Memory in Stock Market Prices." Econometrica, 59(5), 1279-1313. This paper discusses the presence of long-term memory in stock prices, which is relevant for understanding the persistence of streaks.
Jegadeesh, N., & Titman, S. (1993). "Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency." Journal of Finance, 48(1), 65-91. This study explores momentum and reversal strategies, which are related to the concept of streaks.
Gilovich, T., Vallone, R., & Tversky, A. (1985). "The Hot Hand in Basketball: On the Misperception of Random Sequences." Cognitive Psychology, 17(3), 295-314. This paper provides insight into the psychological aspects of streaks and persistence.
Brock, W., Lakonishok, J., & LeBaron, B. (1992). "Simple Technical Trading Rules and the Stochastic Properties of Stock Returns." Journal of Finance, 47(5), 1731-1764. This research examines the effectiveness of technical trading rules, relevant for streak-based strategies.
Fama, E. F., & French, K. R. (1993). "Common Risk Factors in the Returns on Stocks and Bonds." Journal of Financial Economics, 33(1), 3-56. This paper provides a foundation for understanding risk factors and strategy performance.
By analyzing streaks, traders can gain valuable insights into market dynamics and refine their trading strategies based on empirical evidence.
PERFECT PIVOT RANGE DR ABIRAM SIVPRASAD (PPR)PERFECT PIVOT RANGE (PPR) by Dr. Abhiram Sivprasad
The Perfect Pivot Range (PPR) indicator is designed to provide traders with a comprehensive view of key support and resistance levels based on pivot points across different timeframes. This versatile tool allows users to visualize daily, weekly, and monthly pivots along with high and low levels from previous periods, helping traders identify potential areas of price reversals or breakouts.
Features:
Multi-Timeframe Pivots:
Daily, weekly, and monthly pivot levels (Pivot Point, Support 1 & 2, Resistance 1 & 2).
Helps traders understand price levels across various timeframes, from short-term (daily) to long-term (monthly).
Previous High-Low Levels:
Displays the previous week, month, and day high-low levels to highlight key zones of historical support and resistance.
Traders can easily see areas of price action from prior periods, giving context for future price movements.
Customizable Options:
Users can choose which pivot levels and high-lows to display, allowing for flexibility based on trading preferences.
Visual settings can be toggled on and off to suit different trading strategies and timeframes.
Real-Time Data:
All pivot points and levels are dynamically calculated based on real-time price data, ensuring accurate and up-to-date information for decision-making.
How to Use:
Pivot Points: Use daily, weekly, or monthly pivot points to find potential support or resistance levels. Prices above the pivot suggest bullish sentiment, while prices below indicate bearishness.
Previous High-Low: The high-low levels from previous days, weeks, or months can serve as critical zones where price may reverse or break through, indicating potential trade entries or exits.
Confluence: When pivot points or high-low levels overlap across multiple timeframes, they become even stronger levels of support or resistance.
This indicator is suitable for all types of traders (scalpers, swing traders, and long-term investors) looking to enhance their technical analysis and make more informed trading decisions.
Here are three detailed trading strategies for using the Perfect Pivot Range (PPR) indicator for options, stocks, and commodities:
1. Options Buying Strategy with PPR Indicator
Strategy: Buying Call and Put Options Based on Pivot Breakouts
Objective: To capitalize on sharp price movements when key pivot levels are breached, leading to high returns with limited risk in options trading.
Timeframe: 15-minute to 1-hour chart for intraday option trading.
Steps:
Identify the Key Levels:
Use weekly pivots for intraday trading, as they provide more significant levels for options.
Enable the "Previous Week High-Low" to gauge support and resistance from the previous week.
Call Option Setup (Bullish Breakout):
Condition: If the price breaks above the weekly pivot point (PP) with high momentum (indicated by a strong bullish candle), it signifies potential bullishness.
Action: Buy Call Options at the breakout of the weekly pivot.
Confirmation: Check if the price is sustaining above the pivot with a minimum of 1-2 candles (depending on timeframe) and the first resistance (R1) isn’t too far away.
Target: The first resistance (R1) or previous week’s high can be your target for exiting the trade.
Stop-Loss: Set a stop-loss just below the pivot point (PP) to limit risk.
Put Option Setup (Bearish Breakdown):
Condition: If the price breaks below the weekly pivot (PP) with strong bearish momentum, it’s a signal to expect a downward move.
Action: Buy Put Options on a breakdown below the weekly pivot.
Confirmation: Ensure that the price is closing below the pivot, and check for declining volumes or bearish candles.
Target: The first support (S1) or the previous week’s low.
Stop-Loss: Place the stop-loss just above the pivot point (PP).
Example:
Let’s say the weekly pivot point (PP) is at 1500, the price breaks above and sustains at 1510. You buy a Call Option with a strike price near 1500, and the target will be the first resistance (R1) at 1530.
2. Stock Trading Strategy with PPR Indicator
Strategy: Swing Trading Using Pivot Points and Previous High-Low Levels
Objective: To capture mid-term stock price movements using pivot points and historical high-low levels for better trade entries and exits.
Timeframe: 1-day or 4-hour chart for swing trading.
Steps:
Identify the Trend:
Start by determining the overall trend of the stock using the weekly pivots. If the price is consistently above the pivot point (PP), the trend is bullish; if below, the trend is bearish.
Buy Setup (Bullish Trend Reversal):
Condition: When the stock bounces off the weekly pivot point (PP) or previous week’s low, it signals a bullish reversal.
Action: Enter a long position near the pivot or previous week’s low.
Confirmation: Look for a bullish candle pattern or increasing volumes.
Target: Set your first target at the first resistance (R1) or the previous week’s high.
Stop-Loss: Place your stop-loss just below the previous week’s low or support (S1).
Sell Setup (Bearish Trend Reversal):
Condition: When the price hits the weekly resistance (R1) or previous week’s high and starts to reverse downwards, it’s an opportunity to short-sell the stock.
Action: Enter a short position near the resistance.
Confirmation: Watch for bearish candle patterns or decreasing volume at the resistance.
Target: Your first target would be the weekly pivot point (PP), with the second target as the previous week’s low.
Stop-Loss: Set a stop-loss just above the resistance (R1).
Use Previous High-Low Levels:
The previous week’s high and low are key levels where price reversals often occur, so use them as reference points for potential entry and exit.
Example:
Stock XYZ is trading at 200. The previous week’s low is 195, and it bounces off that level. You enter a long position with a target of 210 (previous week’s high) and place a stop-loss at 193.
3. Commodity Trading Strategy with PPR Indicator
Strategy: Trend Continuation and Reversal in Commodities
Objective: To capitalize on the strong trends in commodities by using pivot points as key support and resistance levels for trend continuation and reversal.
Timeframe: 1-hour to 4-hour charts for commodities like Gold, Crude Oil, Silver, etc.
Steps:
Identify the Trend:
Use monthly pivots for long-term commodities trading since commodities often follow macroeconomic trends.
The monthly pivot point (PP) will give an idea of the long-term trend direction.
Trend Continuation Setup (Bullish Commodity):
Condition: If the price is consistently trading above the monthly pivot and pulling back towards the pivot without breaking below it, it indicates a bullish continuation.
Action: Enter a long position when the price tests the monthly pivot (PP) and starts moving up again.
Confirmation: Look for a strong bullish candle or an increase in volume to confirm the continuation.
Target: The first resistance (R1) or previous month’s high.
Stop-Loss: Place the stop-loss below the monthly pivot (PP).
Trend Reversal Setup (Bearish Commodity):
Condition: When the price reverses from the monthly resistance (R1) or previous month’s high, it’s a signal for a bearish reversal.
Action: Enter a short position at the resistance level.
Confirmation: Watch for bearish candle patterns or decreasing volumes at the resistance.
Target: Set your first target as the monthly pivot (PP) or the first support (S1).
Stop-Loss: Stop-loss should be placed just above the resistance level.
Using Previous High-Low for Swing Trades:
The previous month’s high and low are important in commodities. They often act as barriers to price movement, so traders should look for breakouts or reversals near these levels.
Example:
Gold is trading at $1800, with a monthly pivot at $1780 and the previous month’s high at $1830. If the price pulls back to $1780 and starts moving up again, you enter a long trade with a target of $1830, placing your stop-loss below $1770.
Key Points Across All Strategies:
Multiple Timeframes: Always use a combination of timeframes for confirmation. For example, a daily chart may show a bullish setup, but the weekly pivot levels can provide a larger trend context.
Volume: Volume is key in confirming the strength of price movement. Always confirm breakouts or reversals with rising or declining volume.
Risk Management: Set tight stop-loss levels just below support or above resistance to minimize risk and lock in profits at pivot points.
Each of these strategies leverages the powerful pivot and high-low levels provided by the PPR indicator to give traders clear entry, exit, and risk management points across different markets
Dynamic Resistance and Support LinesThis script is designed to dynamically plot support and resistance lines based on full-dollar and half-dollar price levels relative to the close price on a chart. The script is particularly useful for day traders and scalpers, as it helps visualize key psychological price levels that often act as support and resistance zones in volatile and fast-moving markets in real time.
Key Features:
Dynamic Resistance and Support Levels:
Full-dollar levels: These are calculated by rounding the close price to the nearest full dollar and then extending the levels by adding and subtracting increments of 1 (e.g., $1, $2, $3).
Half-dollar levels: These are calculated by adding and subtracting 0.5 increments to the nearest full-dollar price, providing additional reference points. The historical full-dollar levels remain where support and resistance may have occurred in the past.
Extend Lines:
You can toggle whether the support and resistance lines are extended to the right, left, or both directions. This allows flexibility in projecting potential future areas of support or resistance.
Custom Line Extension:
The user can set the number of bars (or time periods) that the support and resistance lines will extend, giving control over how long the levels remain on the chart.
Color-Coded Lines:
Red lines represent full-dollar resistance and support levels.
Blue lines represent half-dollar levels, making it easy to differentiate between key psychological price zones.
Line Flexibility:
The script allows the lines to extend both left and right on the chart, making it useful for analyzing historical price action or projecting future price movements. The number of bars for extension is customizable, allowing for tailored setups.
Nearest Full Dollar Plot:
The nearest full-dollar price level is plotted as a yellow circle on the chart. This serves as a quick visual cue for traders to monitor price proximity to critical levels.
Benefits in Day Trading, Scalping, and Volatile Markets:
Visualizing Key Psychological Levels:
Full-dollar and half-dollar price levels often act as psychological barriers for traders. This script helps traders easily identify these levels, which are important in both fast-moving markets and during sideways consolidation.
Improved Decision-Making:
By automatically drawing these support and resistance levels, the script helps day traders and scalpers make quicker and more informed decisions, especially in volatile markets where every second counts.
Adaptability to Market Conditions:
The flexibility of extending lines based on trader preferences allows the user to adapt the script to various market conditions, such as high volatility or trend-based trading, providing a clear view of potential breakout or reversal areas.
Better Risk Management:
Having predefined support and resistance levels helps traders better manage risk, as these levels can act as logical areas for setting stop losses or taking profits.
This script is especially valuable for traders looking to capitalize on quick market movements or identify key entry and exit points during market volatility.
