SMI Ergodic Indicator/Oscillator▮ Introduction
The Stochastic Momentum Index Ergodic Indicator (SMII) is a technical analysis tool designed to predict trend reversals in the price of an asset.
It functions as a momentum oscillator, measuring the ratio of the smoothed price change to the smoothed absolute price change over a given number of previous periods.
The Ergodic SMI is based on the True Strength Index (TSI) and integrates a signal line, which is an exponential moving average (EMA) of the SMI indicator itself.
It provides a clearer picture of market trends than the traditional stochastic oscillator by incorporating the concept of "ergodicity", which helps remove market noise.
On ther other hand, the Stochastic Momentum Index Ergodic Oscillator (SMIO) is a histogram that measures the difference between TSI and it's signal line.
By default, in TradingView both SMII and SMIO are provided independently.
Here in this script these two indicators are combined, providing a more comprehensive view of price direction and market strength.
▮ Motivation: why another indicator?
The intrinsic value of this indicator lies in the fact that it allows fine adjustments in both calculation parameters, data source and visualization, features that are not present in the standard indicators or similar.
Also, trend lines breakouts and divergences detector were added.
▮ What to look for
When using the indicator, there are a few things to look out for.
First, look at the SMI signal line.
When the line crosses above -40, it is considered a buy signal, while the crossing below +40 is considered a sell signal.
Also, pay attention to divergences between the SMI and the price.
If price is rising but the SMI is showing negative divergence, it could indicate that momentum is waning and a reversal could be in the offing.
Likewise, if price is falling but the SMI is showing positive divergence, this could indicate that momentum is building and a reversal could also be in the offing.
Divergences can be considered in both indicator and/or histogram.
Examples:
▮ Notes
The indicator presented here offers both the "SMII" and the "SMIO", that is, the "Stochastic Momentum Index Ergodic Indicator" together with the "Stochastic Momentum Index Ergodic Oscillator" (histogram), as per the documentation described in reference links.
So it is important to highlight the differences in relation to my other indicator, Stochastic Momentum Index (SMI) Refurbished .
This last one is purely based on the **SMI**, which is implemented using smoothed ratio between the relative range and the high/low range.
Although they may seem the same in some situations, the calculation is actually different. The TSI tends to be more responsive at the expense of being noisier, while the SMI tends to be smoother. Which of these two indicators is best depends on the situation, the context, and the analyst's personal preference.
Please refer to reference links to more info.
▮ References
SMI documentation
SMII documentation
SMIO documentation
Stochasticoscillator
Stochastic Trendlines with Breakouts [Jamshid] - EnhancedStochastic Trendlines with Breakouts - Enhanced Version
This advanced Stochastic Trendlines with Breakouts script combines several powerful features to provide enhanced breakout detection based on the Stochastic Oscillator and additional confirmation signals. This script is designed to help traders identify key trend reversals, breakout points, and pivot levels with more accuracy by integrating advanced filters such as RSI confirmation, moving average trend filtering, volatility filtering, divergence detection, and multi-timeframe analysis.
Key Features:
Stochastic Oscillator-Based Breakouts:
Automatically detects breakouts based on the smoothed Stochastic Oscillator values (%K and %D), providing insights into overbought and oversold conditions.
Customizable overbought and oversold levels, with a mid-level (50) line for additional reference.
Trendlines on Pivot Points:
Automatically plots dynamic trendlines based on pivot highs and lows of the smoothed Stochastic %K, helping to visualize potential reversal points.
RSI Confirmation (Optional):
Filters breakout signals using the Relative Strength Index (RSI) to confirm breakouts only when the RSI is below 50 for downtrend breakouts and above 50 for uptrend breakouts.
Visual confirmation with a green "RSI Conf." label displayed on the chart when the RSI condition is met.
Moving Average Filter (Optional):
Confirms breakout signals in the direction of a user-defined Moving Average (MA) to trade in the overall market trend direction.
MA length is fully customizable.
Stochastic Divergence Filter (Optional):
Detects bullish or bearish divergence between the price and Stochastic Oscillator values, adding an extra layer of confirmation.
Multi-Timeframe Confirmation (Optional):
Confirms breakouts by checking the Stochastic %K and %D values from a higher timeframe. This helps in avoiding false signals by aligning with the broader market trend.
The higher timeframe can be customized to any timeframe (e.g., daily, weekly, etc.).
Volatility Filter (Optional):
Uses the ATR (Average True Range) to filter out breakouts during periods of low volatility, ensuring signals are only triggered when there is sufficient price movement.
ATR length and multiplier are fully customizable.
Custom Alerts:
Alerts are available for new trendline detections (both pivot high and pivot low) and for confirmed breakout signals. These alerts help traders stay informed in real-time without needing to monitor the chart continuously.
How to Use:
Customize the Stochastic Oscillator settings, such as %K smoothing and %D line parameters, to fit your trading strategy.
Enable or disable additional filtering features (RSI, MA, divergence, MTF, volatility) as needed.
Set up alerts for specific breakout conditions directly in TradingView to stay notified when breakout signals are triggered.
This script is designed for traders who are looking for precision breakout signals with added layers of confirmation to avoid false breakouts and enhance trading accuracy.
Advanced Stochastic ForLoopAdvanced Stochastic ForLoop
OVERVIEW
Advanced Stochastic ForLoop is an improved version of Stochastic it is designed to calculate an array of values 1 or -1 depending if soruce for calculations is above or below basis.
It takes avereage of values over a range of lengths, providing trend signals smothed based on various moving averages in order to get rid of noise.
It offers flexibility with different signal modes and visual customizations.
TYPE OF SIGNALS
-FAST (MA > MA or MA > 0.99)
-SLOW (MA > 0)
-THRESHOLD CROSSING (set by user treshold for both directions)
-FAST THRESHOLD (when theres an change in signal by set margin e.g 0.4 -> 0.2 means bearsih when FT is set to 0.1, when MA is > 0.99 it will signal bullish, when MA < -0.99 it will signal bearish)
Generaly Lime color of line indicates Bullish, Fuchsia indicates Bearish.
This colors are not set in stone so you can change them in settings.
Alerts included when line color is:
-Bullish Trend, line color is lime
-Bearish Trend, line color is fuchsia
Credit
Idea for this script was from one of indicators created by www.tradingview.com
Warning
This indicator can be really noisy depending on the settings, signal mode so it should be used preferably as a part of an strategy not as a stand alone indicator
Remember the lower the timeframe you use the more noise there is.
No single indicator should be used alone when making investment decisions.
Theta Shield | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Theta Shield indicator! Theta is the options risk factor concerning how fast there is a decline in the value of an option over time. This indicator aims to help the trader avoid sideways market phases in the current ticker, to minimize the risk of theta decay. For more information, please check the "How Does It Work" section.
Features of the new Theta Shield Indicator :
Foresight Of Accumulation Zones
Decrease Risk Of Theta Decay
Clear "Valid" & "Non-Valid" Signals
Validness Trail
Alerts
📌 HOW DOES IT WORK ?
In options trading, theta is defined as the rate of decline in the value of an option due to the passage of time. Traders want to avoid this kind of decay in the value of an option. One of the best ways to avoid it is not holding an option contract when the market is going sideways. This indicator uses a stochastic oscillator to try to get a foresight of sideways markets, warning the trader to not hold an option contract while the price is in a range.
The indicator starts by calculating the stochastic value using close, high & low prices of the candlesticks. Then a stoch threshold & a theta length are determined depending on the option contract type defined by the user in the settings of the indicator. Each candlestick that falls above or below the stoch threshold value is counted, and a "theta valid strength" is calculated using the counted candlesticks, which has a value between -100 & 100. Here is the formula of the "theta valid strength" value :
f_lin_interpolate(float x0, float x1, float y0, float y1, float x) =>
y0 + (x - x0) * (y1 - y0) / (x1 - x0)
thetaValid = Total Candlesticks That Fall Above & Below The Threshold In Last "Theta Length" bars.
thetaValidStrength = f_lin_interpolate(0, thetaLength, -100, 100, thetaValid)
Then a trail is rendered, and "Valid" & "Non-Valid" signals are given using this freshly calculated strength value. Valid means that the indicator currently thinks that no accumulation will happen in the near future, so the option positions in the current ticker are protected from the theta decay. Non-Valid means that the indicator thinks the ticker has entered the accumulation phase, so holding any option position is not recommended, as they may be affected by the theta decay.
🚩 UNIQUENESS
This indicator offers a unique way to avoid theta decay in options trading. It uses a stochastic oscillator and thresholds to calculate a "theta strength" value, which is used for rendering validness signals and a trail. Traders can follow the valid & non-valid signals when deciding to hold their options position or not. The indicator also has an alerts feature, so you can get notified when a ticker is about to enter a range, or when it's about to get out of it.
⚙️ SETTINGS
1. General Configuration
Contract Type -> You can set the option contract type here. The indicator will adjust itself to get a better foresight depending on the contract length.
2. Style
Fill Validness -> Will render a trail based on "theta strength" value.
MTF-Colored EMA Difference and Stochastic indicatorThis indicator combines two popular technical analysis tools: the Exponential Moving Average (EMA) and the Stochastic Oscillator, with the added flexibility of analyzing them across multiple time frames. It visually represents the difference between two EMAs and the crossover signals from the Stochastic Oscillator, providing a comprehensive view of the market conditions.
Components:
EMA Difference Histogram :
EMA Calculation : The indicator calculates two EMAs (EMA1 and EMA2) for the selected time frame.
EMA Difference : The difference between EMA1 and EMA2 is plotted as a 4 coloured histogram.
Stochastic Oscillato r:
Calculation : The %K and %D lines of the Stochastic Oscillator are calculated for the selected time frame.
Additional Confirmation via Colors :
Green: %K is above %D, indicating a bullish signal.
Red: %K is below %D, indicating a bearish signal.
Entry and Exit Strategies
Entry Strategy :
Bullish Entry :
Condition 1: The histogram is Dark green (indicating a strong upward trend).
Condition 2: The Stochastic colour is green (%K is above %D).
Bearish Entry :
Condition 1: The histogram is Dark Red (indicating a strong downward trend).
Condition 2: The Stochastic colour is red (%K is below %D).
Exit Strategy:
Bullish Exit:
Condition: The Stochastic colour turns red (%K crosses below %D).
Bearish Exit:
Condition: The Stochastic colour turns green (%K crosses above %D).
Additional Considerations:
Time Frame Selection : The chosen time frame for both the EMA and Stochastic calculations should align with the trader’s strategy (e.g., daily for swing trading, hourly for intraday trading).
Risk Management : Implement stop-loss orders to manage risk effectively. The stop-loss can be placed below the recent swing low for long positions and above the recent swing high for short positions.
Confirmation : Consider using this indicator in conjunction with other technical analysis tools to confirm signals and reduce the likelihood of false entries and exits.
Stochastics - Made EasyThis indicator is a visually improved version of Stochastics. It makes it much easier to see what's happening by simplifying those confusing, intersecting lines. With this, you can detect the Stochastics direction more clearly. All the features are also explained in the tooltips of the input fields. Some extra features are included, such as average top and bottom calculation, standard deviation and divergences.
Color legend:
Green: Stoch K Above D and Rising
Light Green: Stoch K Above D and Falling
Red: Stoch K Below D and Falling
Light Red: Stoch K Below D and Rising
Blue: Stoch K Crossover D
Orange: Stoch K Crossunder D
Blue Arrow: Bullish Divergence
Orange Arrow: Bearish Divergence
Reversal Candlestick Structure [LuxAlgo]The Reversal Candlestick Structure indicator detects multiple candlestick patterns occurring when trends are most likely to experience a reversal in real-time. The reversal detection method includes various settings allowing users to adjust the reversal detection algorithm more precisely.
A dashboard showing the percentage of patterns detected as reversals is also included.
🔶 USAGE
Candlestick patterns are ubiquitous to technical analysts, allowing them to detect trend continuations, reversals, and indecision.
The proposed tool effectively detects reversals by using the confluence between candlestick patterns and a reversal detection method based on the stochastic oscillator, acting as a filter for the patterns. If a candlestick pattern occurs while conditions suggest a potential reversal then the pattern is highlighted.
The displayed candle coloring allows users to observe the reversal detection method, with colored candles indicating potential reversals.
Users wanting to detect longer-term reversals can use a higher "Trend Length" setting, this can however lead to an increased amount of displayed candlestick patterns.
To prevent false positives users also have control over a "Threshold" setting in a range between (0, 100), with values closer to 100 preventing candlesticks from being detected at the start of trends.
The "Warmup Length" serves a similar purpose, and aims to prevent sudden moves to be classified as reversals. Higher values of this setting will require trends to be established for a longer period of time for reversal conditions to be detected.
🔹 Dashboard
To evaluate the role of individual candlestick patterns as potential reversal signals relative to the proposed reversal detection method, a dashboard displaying the percentage of candlestick patterns displayed (that occur when a potential reversal is detected) over the total amount detected.
Hovering on the dashboard cells of the "Reversal %" column allows displaying the total amount of patterns detected.
🔶 CANDLESTICKS PATTERNS
This tool detects 16 popular candlestick patterns, each listed in the sub-sections below.
🔹 Bullish Patterns
Hammer - A bullish reversal pattern that forms after a decline, characterized by a small body at the upper end of the trading range and a long lower shadow.
Inverted Hammer - A bullish reversal pattern that forms after a downtrend, featuring a small body at the lower end of the trading range and a long upper shadow.
Bullish Engulfing - A bullish reversal pattern where a small bearish candlestick is followed by a larger bullish candlestick that completely engulfs the previous candle.
Rising 3 - A bullish continuation pattern that consists of a long bullish candlestick followed by three smaller bearish candlesticks and then another long bullish candlestick.
3 White Soldiers - A bullish reversal pattern consisting of three consecutive long bullish candlesticks, each opening within the previous candle's body and closing higher.
Morning Star - A bullish reversal pattern made up of three candlesticks: a long bearish candlestick, followed by a short candlestick, and then a long bullish candlestick.
Bullish Harami - A bullish reversal pattern where a small bullish candlestick is completely within a previous larger bearish candlestick.
Tweezer Bottom - A bullish reversal pattern identified by an initial bullish candle, followed by a bearish candle, both having equal lows.
🔹 Bearish Patterns
Hanging Man - A bearish reversal pattern that forms after an uptrend, characterized by a small body at the upper end of the trading range and a long lower shadow.
Shooting Star - A bearish reversal pattern that forms after an uptrend, featuring a small body at the lower end of the trading range and a long upper shadow.
Bearish Engulfing - A bearish reversal pattern where a small bullish candlestick is followed by a larger bearish candlestick that completely engulfs the previous candle.
Falling 3 - A bearish continuation pattern that consists of a long bearish candlestick followed by three smaller bullish candlesticks and then another long bearish candlestick.
3 Black Crows - A bearish reversal pattern consisting of three consecutive long bearish candlesticks, each opening within the previous candle's body and closing lower.
Evening Star - A bearish reversal pattern made up of three candlesticks: a long bullish candlestick, followed by a short candlestick, and then a long bearish candlestick.
Bearish Harami - A bearish reversal pattern where a small bearish candlestick is completely within a previous larger bullish candlestick.
Tweezer Top - A bearish reversal pattern is identified by an initial bullish candle, followed by a bearish candle, both having equal highs."
🔶 SETTINGS
🔹 Patterns
Group including toggles for each of the supported candlestick patterns. Enabled toggles will allow detection of the associated candlestick pattern.
🔹 Reversal Detection
Trend Length: Determines the sensitivity of the reversal detection method to shorter-term variation, with higher values returning a detection method more sensitive to longer-term trends.
Threshold: Determines how easy it is for the reversal detection method to consider a trend at an extreme point.
Warmup Length: Warmup period in the reversal detection method, longer values will require a longer-term trend to detect potential reversals.
🔹 Style
Color Candles: Enable candle coloring on the user chart based on the reversal detection method.
Use Gradient: Use a gradient as candle coloring.
Label Size: Size of the labels displaying the detected candlesticks patterns.
🔹 Dashboard
Show Dashboard: Display the dashboard on the user chart when enabled.
Location: Dashboard location on the user chart.
Size: Size of the displayed dashboard.
CSC_Macchiato Price Trend Oscillator by CoffeeShopCryptoDescription:
Introducing "The Macchiato" – your go-to indicator in the realm of trading, meticulously crafted by CoffeeShopCrypto. Much like the complex flavors of a well-made Macchiato, this tool offers a robust suite of functionalities designed to enhance your trading experience across Forex, stocks, and cryptocurrencies.
The Macchiato stands out for its distinct ability to confirm market trends, identify building momentum, and navigate through periods of market stalls. Drawing cues from the RSI (Relative Strength Index), its color scheme dynamically reflects the shifts in market forces, providing traders with real-time insights into price action dynamics.
Gone are the days of navigating through market uncertainties blindly. With The Macchiato at your disposal, you gain a more clear understanding of market movements, helping you to make informed decisions with confidence. Whether you're a seasoned trader or just starting out, this indicator adds more confluence to your trading strategy, ensuring that you stay ahead of the curve in today's fast-paced trading environment.
So, say goodbye to guesswork and hello to precision trading with The Macchiato – where real-time data analysis meets actionable insights, all in the quest for trading success.
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The Histogram:
The Macchiato Histogram gives you a representation of current change in closing values against the closing values within a "Range" of the lookback period. It calculates your price ranging extremes of the highest high vs lowest low according to your lookback setting. Then it shows you whether the momentum of these closing prices calculated against the highs or the lows is either rising or falling. It takes into account the difference in the highs, lows, open and closing prices as a whole. This helps to determine the actual trend of your market structure.
Histogram Rising / Falling:
The Histogram of the Macchiato doesn't care about being above or below zero. Since we are simply calculating momentum rising or falling, then we only care that the histogram is rising or falling. Especially when it's doing this in line with our Macchiato Average.
Macchiato Average:
Included is a smoothing line called "the Macchiato Average"
Using the average is just like using a moving average against price action, however here we are using one against momentum to determine whether price is moving against, with, better, or worse than the current average of momentum.
The RSI:
The base purpose of the RSI in this tool is mainly to color the columns of the Histogram.
I gave you the benefit of exposing the RSI so you can see where it lies in the oscillator for any additional strategies you may use.
How the RSI Colors the Histogram:
The Histogram has 4 momentum colors and 1 non-momentum color.
They are described below but here we will understand why they exist the way they do against the RSI positioning.
The 4 momentum colors:
You can have the RSI in 4 different positions against its moving average.
Trend Trading Colors and setups:
Strong Long - RSI above zero and above its average is a strong long trend.
Strong Short - RSI below zero and below its average is a strong short trend.
These can also be seen as breakout indications.
Counter Trend Trading and Setups:
Weak Long - RSI above zero and below its average is a weak long trend.
Weak Short - RSI below zero and above its average is a weak short trend.
(Only trade weak momentum to known internal support and resistance areas.)
You'll notice that when the RSI is set up against its RSI Moving average under these conditions, the Histogram is colored accordingly to tell you whether you have strong or weak momentum.
For these colors to appear accordingly, the RSI and the momentum of the histogram must be moving in the same direction as each other.
The 5th color of the Histogram:
(GRAY)
This is where there is a divergence / disagreement between your RSI setup and the momentum being observed. If momentum is moving one way and the force of the RSI is not matching the overall momentum, you have a divergence. This commonly means that higher timeframe momentum is in disagreement to lower or current timeframe closing momentum changes.
Conditions of a Bullish Trending Market:
The color scheme has specific implications when all columns are above zero.
As noted before, the Macchiato doesn't care that it is above or below zero. It simply needs to be rising or falling. The color scheme is depicted by what the RSI is doing in relation to ZERO and where it lies against its average.
This image helps to differentiate what is happening with momentum when in a strong bullish market.
The color scheme is always the same. You always have 4 conditions of momentum.
According to the default settings:
Strong Long = Dark Green
Weak Long = Light Green
Strong Short = Dark Red
Weak short = Light Red
The final color is GRAY which is standard for a NON directional market.
You can alter the colors as you choose for your chart background and color preference.
Macchiato Bias Line Conditions
The "Bias Line" helps you understand whether your current momentum is traveling into opposing forces or if your momentum is going WITH the bias.
Going against the bias would be like momentum and price action converging against each other.
Going in the same direction would offer much larger movements on price.
Using the Bias to trade
Trading Internal Support and Resistance
Noting previous price action, pivots, and price swings is important in its use.
When you see momentum coming to a halt or changing, note the previous price action that you are approaching. You should see the histogram change its color, telling you where momentum is ending in its current direction.
EXAMPLE BULLISH MARKET FLIP
There is the exception however that when the market flips, from bearish to bullish, you can see the following:
BIAS LINE switches to a Bullish Bias
Histogram is showing Strong Long Color
Histogram stays ahead of the BIAS line
Price should break previous swing highs to create new highs.
Strategy you can use in observance. (short pause, to pullback, to continued short)
If the momentum is rising while RSI is falling you'll have gray columns until the RSI is in the correct positions against its average.
For your trend to continue downward you are looking for dark red or "Strong Short" columns.
When there is a disagreement, your columns will be gray and then switch to weak long. (Light Green)
This is because your RSI is above its average while the RSI is bearish.
This light green area can be observed as the pullback area.
If you only want to trade short, you would wait for the pullback to be complete.
This occurs when the weak long changes back to gray and then strong short, or skipping gray into strong short.
Christmas Toolkit [LuxAlgo]It's that time of the year... and what would be more appropriate than displaying Christmas-themed elements on your chart?
The Christmas Toolkit displays a tree containing elements affected by various technical indicators. If you're lucky, you just might also find a precious reindeer trotting toward the tree, how fancy!
🔶 USAGE
Each of the 7 X-mas balls is associated with a specific condition.
Each ball has a color indicating:
lime: very bullish
green: bullish
blue: holding the same position or sideline
red: bearish
darkRed: very bearish
From top to bottom:
🔹 RSI (length 14)
rsi < 20 - lime (+2 points)
rsi < 30 - green (+1 point)
rsi > 80 - darkRed (-2 points)
rsi > 70 - red (-1 point)
else - blue
🔹 Stoch (length 14)
stoch < 20 - lime (+2 points)
stoch < 30 - green (+1 point)
stoch > 80 - darkRed (-2 points)
stoch > 70 - red (-1 point)
else - blue
🔹 close vs. ema (length 20)
close > ema 20 - green (+1 point)
else - red (-1 point)
🔹 ema (length 20)
ema 20 rises - green (+1 point)
else - red (-1 point)
🔹 ema (length 50)
ema 50 rises - green (+1 point)
else - red (-1 point)
🔹 ema (length 100)
ema 100 rises - green (+1 point)
else - red (-1 point)
🔹 ema (length 200)
ema 200 rises - green (+1 point)
else - red (-1 point)
The above information can also be found on the right side of the tree.
You'll see the conditions associated with the specific X-mas ball and the meaning of color changes. This can also be visualized by hovering over the labels.
All values are added together, this result is used to color the star at the top of the tree, with a specific color indicating:
lime: very bullish (> 6 points)
green: bullish (6 points)
blue: holding the same position or sideline
red: bearish (-6 points)
darkRed: very bearish (< -6 points)
Switches to green/lime or red/dark red can be seen by the fallen stars at the bottom.
The Last Switch indicates the latest green/lime or red/dark red color (not blue)
🔶 ANIMATION
Randomly moving snowflakes are added to give it a wintry character.
There are also randomly moving stars in the tree.
Garland rotations, style, and color can be adjusted, together with the width and offset of the tree, put your tree anywhere on your chart!
Disabling the "static tree" setting will make the needles 'move'.
Have you happened to see the precious reindeer on the right? This proud reindeer moves towards the most recent candle. Who knows what this reindeer might be bringing to the tree?
🔶 SETTINGS
Width: Width of tree.
Offset: Offset of the tree.
Garland rotations: Amount of rotations, a high number gives other styles.
Color/Style: sets the color & style of garland stars.
Needles: sets the needle color.
Static Tree: Allows the tree needles to 'move' with each tick.
Reindeer Speed: Controls how fast the deer moves toward the most recent bar.
🔶 MESSAGE FROM THE LUXALGO TEAM
It has been an honor to contribute to the TradingView community and we are always so happy to see your supportive messages on our scripts.
We have posted a total of 78 script publications this year, which is no small feat & was only possible thanks to our team of Wizard developers @alexgrover + @dgtrd + @fikira , the development team behind Pine Script, and of course to the support of our legendary community.
Happy Holidays to you all, and we'll see ya next year! ☃️
[KVA]K Stochastic IndicatorOriginal Stochastic Oscillator Formula:
%K=(C−Lowest Low)/(Highest High−Lowest Low)×100
Lowest Low refers to the lowest low of the past n periods.
Highest High refers to the highest high of the past n periods.
K Stochastic Indicator Formula:
%K=(Source−Lowest Source)/(Highest Source−Lowest Source)×100
Lowest Source refers to the lowest value of the chosen source over the past length periods.
Highest Source refers to the highest value of the chosen source over the past length periods.
Key Difference :
The original formula calculates %K using the absolute highest high and lowest low of the price over the past n periods.
The K Stochastic formula calculates %K using the highest and lowest values of a chosen source (which could be the close, open, high, or low) over the specified length periods.
So, if _src is set to something other than the high for the Highest Source or something other than the low for the Lowest Source, the K Stochastic will yield different results compared to the original formula which strictly uses the highest high and the lowest low of the price.
Impact on Traders :
Flexibility in Price Source :
By allowing the source (_src) to be customizable, traders can apply the Stochastic calculation to different price points (e.g., open, high, low, close, or even an average of these). This could provide a different perspective on market momentum and potentially offer signals that are more aligned with a trader's specific strategy.
Sensitivity to Price Action :
Changing the source from high/low to potentially less extreme values (like close or open) could result in a less volatile oscillator, smoothing out some of the extreme peaks and troughs and possibly offering a more filtered view of market conditions.
Customization of Periods :
The ability to adjust the length period offers traders the opportunity to fine-tune the sensitivity of the indicator to match their trading horizon. Shorter periods may provide earlier signals, while longer periods could filter out market noise.
Possibility of Applying the Indicator on Other Indicators :
Layered Technical Analysis :
The K Stochastic can be applied to other indicators, not just price. For example, it could be applied to a moving average to analyze its momentum or to indicators like RSI or MACD, offering a meta-analysis that studies the oscillator's behavior of other technical tools.
Creation of Composite Indicator s:
By applying the K Stochastic logic to other indicators, traders could create composite indicators that blend the characteristics of multiple indicators, potentially leading to unique signals that could offer an edge in certain market conditions.
Enhanced Signal Interpretation :
When applied to other indicators, the K Stochastic can help in identifying overbought or oversold conditions within those indicators, offering a different dimension to the interpretation of their output.
Overall Implications :
The KStochastic Indicator's modifications could lead to a more tailored application, giving traders the ability to adapt the tool to their specific trading style and analysis preferences.
By being applicable to other indicators, it broadens the scope of stochastic analysis beyond price action, potentially offering innovative ways to interpret data and make trading decisions.
The changes might also influence the trading signals, either by smoothing the oscillator's output to reduce noise or by altering the sensitivity to generate more or fewer signal
Including the additional %F line, which is unique to the K Stochastic Indicator, further expands the potential impacts and applications for traders:
Impact on Traders with the %F Line:
Triple Smoothing :
The %F line introduces a third level of smoothing, which could help in identifying longer-term trends and filtering out short-term fluctuations. This could be particularly useful for traders looking to avoid whipsaws and focus on more sustained movements.
Potential for Enhanced Confirmation :
The %F line might be used as a confirmation signal. For instance, if all three lines (%K, %D, and %F) are in agreement, a trader might consider this as a stronger signal to buy or sell, as opposed to when only the traditional two lines (%K and %D) are used.
Risk Management:
The additional line could be utilized for more sophisticated risk management strategies, where a trader might decide to scale in or out of positions based on the convergence or divergence of these lines.
Possibility of Applying the Indicator on Other Indicators with the %F Line:
Depth of Analysis :
When applied to other indicators, the %F line can provide an even deeper layer of analysis, perhaps identifying macro trends within the indicator it is applied to, which could go unnoticed with just the traditional two-line approach.
Refined Signal Strength Assessment :
The strength of signals from other indicators could be assessed by the position and direction of the %F line, providing an additional filter to evaluate the robustness of buy or sell signals.
Overall Implications with the %F Line :
The inclusion of the %F line in the K Stochastic Indicator enhances its utility as a tool for trend analysis and signal confirmation. It allows traders to potentially identify and act on more reliable trading opportunities.
This feature can enrich the trader's toolkit by providing a nuanced view of momentum and trend strength, which can be particularly valuable in volatile or choppy markets.
For those applying the K Stochastic to other indicators, the %F line could be integral in creating a multi-tiered analysis strategy, potentially leading to more sophisticated interpretations and decisions.
The presence of the %F line adds a dimension of depth to the analysis possible with the K Stochastic Indicator, making it a versatile tool that could be tailored to a variety of trading styles and objectives. However, as with any indicator, the additional complexity requires careful study and back-testing to ensure its signals are understood and actionable within the context of a comprehensive trading plan.
VCC SmtmWorks better for Cryptos (1W and greater than) timeframes.
This strategy incorporates multiple indicators to make informed trading signals. It leverages the Stochastic indicator to assess price momentum, utilizes the Bollinger Band to identify potential oversold and overbought conditions, and closely monitors Moving Averages to gauge the trend's bullish or bearish nature.
A long signal will be displayed if the following conditions are met:
The Stochastic D and Stochastic K both indicate an oversold condition, with Stochastic K being lower than Stochastic D.
The current Price Low is below the Bollinger Lower Band.
The Price Close is currently below all Moving Averages.
A Death Cross pattern has formed among the Moving Averages.
A short signal will be displayed if the opposite of the long conditions are true:
The Stochastic D and Stochastic K both indicate an overbought condition, with Stochastic K being higher than Stochastic D.
The current Price High is above the Bollinger Upper Band.
The Price Close is currently above all Moving Averages.
A Golden Cross pattern has formed among the Moving Averages.
Price Exhaustion IndicatorThe Price Exhaustion Indicator (PE) is a powerful tool designed to identify trends weakening and strengthening in the financial markets. It combines the concepts of Average True Range (ATR), Moving Average Convergence Divergence (MACD), and Stochastic Oscillator to provide a comprehensive assessment of trend exhaustion levels. By analyzing these multiple indicators together, traders and investors can gain valuable insights into potential price reversals and long-term market highs and lows.
The aim of combining the ATR, MACD, and Stochastic Oscillator, is to provide a comprehensive analysis of trend exhaustion. The ATR component helps assess the volatility and range of price movements, while the MACD offers insights into the convergence and divergence of moving averages. The Stochastic Oscillator measures the current price in relation to its range, providing further confirmation of trend exhaustion. The exhaustion value is derived by combining the MACD, ATR, and Stochastic Oscillator. The MACD value is divided by the ATR value, and then multiplied by the Stochastic Oscillator value. This calculation results in a single exhaustion value that reflects the combined influence of these three indicators.
Application
The Price Exhaustion Indicator utilizes a unique visual representation by incorporating a gradient color scheme. The exhaustion line dynamically changes color, ranging from white when close to the midline (40) to shades of purple as it approaches points of exhaustion (overbought at 100 and oversold at -20). As the exhaustion line approaches the color purple, this represents extreme market conditions and zones of weakened trends where reversals may occur. This color gradient serves as a visual cue, allowing users to quickly gauge the strength or weakness of the prevailing trend.
To further enhance its usability, the Price Exhaustion Indicator also includes circle plots that signify potential points of trend reversion. These plots appear when the exhaustion lines cross or enter the overbought and oversold zones. Red circle plots indicate potential short entry points, suggesting a weakening trend and the possibility of a downward price reversal. Conversely, green circle plots represent potential long entry points, indicating a strengthening trend and the potential for an upward price reversal.
Traders and investors can leverage the Price Exhaustion Indicator in various ways. It can be utilized as a trend-following tool, or a mean reversion tool. When the exhaustion line approaches the overbought or oversold zones, it suggests a weakening trend and the possibility of a price reversal, helping identify potential market tops and bottoms. This can guide traders in timing their entries or exits in anticipation of a trend shift.
Utility
The Price Exhaustion Indicator is particularly useful for long-term market analysis, as it focuses on identifying long-term market highs and lows. By capturing the gradual weakening or strengthening of a trend, it assists investors in making informed decisions about portfolio allocation, trend continuation, or potential reversals.
In summary, the Price Exhaustion Indicator is a comprehensive and visually intuitive tool that combines ATR, MACD, and Stochastic Oscillator to identify trend exhaustion levels. By utilizing a gradient color scheme and circle plots, it offers traders and investors valuable insights into potential trend reversals and long-term market highs and lows. Its unique features make it a valuable addition to any trader's toolkit, providing a deeper understanding of market dynamics and assisting in decision-making processes. Please note that future performance of any trading strategy is fundamentally unknowable, and past results do not guarantee future performance.
Kalman Filtered ROC & Stochastic with MA SmoothingThe "Smooth ROC & Stochastic with Kalman Filter" indicator is a trend following tool designed to identify trends in the price movement. It combines the Rate of Change (ROC) and Stochastic indicators into a single oscillator, the combination of ROC and Stochastic indicators aims to offer complementary information: ROC measures the speed of price change, while Stochastic identifies overbought and oversold conditions, allowing for a more robust assessment of market trends and potential reversals. The indicator plots green "B" labels to indicate buy signals and blue "S" labels to represent sell signals. Additionally, it displays a white line that reflects the overall trend for buy signals and a blue line for sell signals. The aim of the indicator is to incorporate Kalman and Moving Average (MA) smoothing techniques to reduce noise and enhance the clarity of the signals.
Rationale for using Kalman Filter:
The Kalman Filter is chosen as a smoothing tool in the indicator because it effectively reduces noise and fluctuations. The Kalman Filter is a mathematical algorithm used for estimating and predicting the state of a system based on noisy and incomplete measurements. It combines information from previous states and current measurements to generate an optimal estimate of the true state, while simultaneously minimizing the effects of noise and uncertainty. In the context of the indicator, the Kalman Filter is applied to smooth the input data, which is the source for the Rate of Change (ROC) calculation. By considering the previous smoothed state and the difference between the current measurement and the predicted value, the Kalman Filter dynamically adjusts its estimation to reduce the impact of outliers.
Calculation:
The indicator utilizes a combination of the ROC and the Stochastic indicator. The ROC is smoothed using a Kalman Filter (credit to © Loxx: ), which helps eliminate unwanted fluctuations and improve the signal quality. The Stochastic indicator is calculated with customizable parameters for %K length, %K smoothing, and %D smoothing. The smoothed ROC and Stochastic values are then averaged using the formula ((roc + d) / 2) to create the blended oscillator. MA smoothing is applied to the combined oscillator aiming to further reduce fluctuations and enhance trend visibility. Traders are free to choose their own preferred MA type from 'EMA', 'DEMA', 'TEMA', 'WMA', 'VWMA', 'SMA', 'SMMA', 'HMA', 'LSMA', and 'PEMA' (credit to: © traderharikrishna for this code: ).
Application:
The indicator's buy signals (represented by green "B" labels) indicate potential entry points for buying assets, suggesting a bullish trend. The white line visually represents the trend, helping traders identify and follow the upward momentum. Conversely, the sell signals (blue "S" labels) highlight possible exit points or opportunities for short selling, indicating a bearish trend. The blue line illustrates the bearish movement, aiding in the identification of downward momentum.
The "Smoothed ROC & Stochastic" indicator offers traders a comprehensive view of market trends by combining two powerful oscillators. By incorporating the ROC and Stochastic indicators into a single oscillator, it provides a more holistic perspective on the market's momentum. The use of a Kalman Filter for smoothing helps reduce noise and enhance the accuracy of the signals. Additionally, the indicator allows customization of the smoothing technique through various moving average types. Traders can also utilize the overbought and oversold zones for additional analysis, providing insights into potential market reversals or extreme price conditions. Please note that future performance of any trading strategy is fundamentally unknowable, and past results do not guarantee future performance.
Stochastic Zone Strength Trend [wbburgin](This script was originally invite-only, but I'd vastly prefer contributing to the TradingView community more than anything else, so I am making it public :) I'd much rather share my ideas with you all.)
The Stochastic Zone Strength Trend indicator is a very powerful momentum and trend indicator that 1) identifies trend direction and strength, 2) determines pullbacks and reversals (including oversold and overbought conditions), 3) identifies divergences, and 4) can filter out ranges. I have some examples below on how to use it to its full effectiveness. It is composed of two components: Stochastic Zone Strength and Stochastic Trend Strength.
Stochastic Zone Strength
At its most basic level, the stochastic Zone Strength plots the momentum of the price action of the instrument, and identifies bearish and bullish changes with a high degree of accuracy. Think of the stochastic Zone Strength as a much more robust equivalent of the RSI. Momentum-change thresholds are demonstrated by the "20" and "80" levels on the indicator (see below image).
Stochastic Trend Strength
The stochastic Trend Strength component of the script uses resistance in each candlestick to calculate the trend strength of the instrument. I'll go more into detail about the settings after my description of how to use the indicator, but there are two forms of the stochastic Trend Strength:
Anchored at 50 (directional stochastic Trend Strength):
The directional stochastic Trend Strength can be used similarly to the MACD difference or other histogram-like indicators : a rising plot indicates an upward trend, while a falling plot indicates a downward trend.
Anchored at 0 (nondirectional stochastic Trend Strength):
The nondirectional stochastic Trend Strength can be used similarly to the ADX or other non-directional indicators : a rising plot indicates increasing trend strength, and look at the stochastic Zone Strength component and your instrument to determine if this indicates increasing bullish strength or increasing bearish strength (see photo below):
(In the above photo, a bearish divergence indicated that the high Trend Strength predicted a strong downwards move, which was confirmed shortly after. Later, a bullish move upward by the Zone Strength while the Trend Strength was elevated predicated a strong upwards move, which was also confirmed. Note the period where the Trend Strength never reached above 80, which indicated a ranging period (and thus unprofitable to enter or exit)).
How to Use the Indicator
The above image is a good example on how to use the indicator to determine divergences and possible pivot points (lines and circles, respectively). I recommend using both the stochastic Zone Strength and the stochastic Trend Strength at the same time, as it can give you a robust picture of where momentum is in relation to the price action and its trajectory. Every color is changeable in the settings.
Settings
The Amplitude of the indicator is essentially the high-low lookback for both components.
The Wavelength of the indicator is how stretched-out you want the indicator to be: how many amplitudes do you want the indicator to process in one given bar.
A useful analogy that I use (and that I derived the names from) is from traditional physics. In wave motion, the Amplitude is the up-down sensitivity of the wave, and the Wavelength is the side-side stretch of the wave.
The Smoothing Factor of the settings is simply how smoothed you want the stochastic to be. It's not that important in most circumstances.
Trend Anchor was covered above (see my description of Trend Strength). The "Trend Transform MA Length" is the EMA length of the Trend Strength that you use to transform it into the directional oscillator. Think of the EMA being transformed onto the 50 line and then the Trend Strength being dragged relative to that.
Trend Transform MA Length is the EMA length you want to use for transforming the nondirectional Trend Strength (anchored at 0) into the directional Trend Strength (anchored at 50). I suggest this be the same as the wavelength.
Trend Plot Type can transform the Nondirectional Trend Strength into a line plot so that it doesn't murk up the background.
Finally, the colors are changeable on the bottom.
Explanation of Zone Strength
If you're knowledgeable in Pine Script, I encourage you to look at the code to try to understand the concept, as it's a little complicated. The theory behind my Zone Strength concept is that the wicks in every bar can be used create an index of bullish and bearish resistance, as a wick signifies that the price crossed above a threshold before returning to its origin. This distance metric is unique because most indicators/formulas for calculating relative strength use a displacement metric (such as close - open) instead of measuring how far the price actually moved (up and down) within a candlestick. This is what the Zone Strength concept represents - the hesitation within the bar that is not typically represented in typical momentum indicators.
In the script's code I have step by step explanations of how the formula is calculated and why it is calculated as such. I encourage you to play around with the amplitude and wavelength inputs as they can make the zone strength look very different and perform differently depending on your interests.
Enjoy!
Walker
[volfgang] WAVEA compass to the financial charts.
The Volfgang WAVE Indicator helps you to decode complex market trends and make informed decisions in your trading.
Quick Summary
The WAVE has a signal line which alternates between Red or Blue.
Red is bearish and Blue is bullish.
It turns Blue when the WAVE line crosses above the signal and holds for 1 bar.
it turns Red when the WAVE line crosses below the signal and holds for 1 bar.
(You can change the signal line’s length in the settings, the default is 3 which is suited towards Day Trading – For Swing Traders I recommend 4 or 5 – For Investors 6 to 9).
The WAVE line will change colour to alert you when price is potentially pivoting.
When the WAVE is WHITE, the trend is currently Bearish but could flip bullish soon.
When the WAVE is GREEN, the trend is Bullish and there is strong Bullish momentum.
When the WAVE is ORANGE, it means trend is bullish but there is danger of a Bearish Reversal.
When the WAVE is PINK it means there is strong Bearish Momentum.
WAVETrend Scanner
The WAVETrend Scanner can be enabled in the settings and gives you a quick overview of the current trend across 8 potential timeframes:
You can use this to make sure the trades you are taking on lower timeframes align with the current bias on higher term timeframes, thus ensuring a higher chance of success.
WAVE Colours
The background colour of the WAVE also changes according to the current trend across multiple timeframes. The scanner is constantly measuring the current trend across 7 timeframes;
When 4 timeframes line up Bullish, the WAVE is LIGHT BLUE (Cyan)
When 5 timeframes line up Bullish, the WAVE is DARK BLUE (Navy)
When 6+ timeframes line up Bullish, the WAVE is GREEN
When 4 timeframes line up Bearish, the WAVE is ORANGE
When 5 timeframes line up Bearish, the WAVE is RED
When 6+ timeframes line up Bearish, the WAVE is PINK
Divergence Checker & Buy/Sell Signals
The BUY and SELL Signals are represented by a BLUE or RED Histogram line that extends from the WAVE to the 0 Line.
A BUY signal shows when a Crossover occurs & there is a Bullish Diversion Present within the last 50 bars.
A SELL signal appears when a Crossunder occurs & there is Bearish Diversion present within the last 50 bars.
You can change the length of the Divergence Checker in the settings, default is 50 bars.
Under The Hood
The WAVE pulls information from multiple sources within a set period such as;
Close Price
Highest Price
Lowest Price
EMA
The script applies a set of complicated algebraic equations. Which essentially measures the and of recent price action.
Then it uses EMA's to measure from the and , whilst applying more weight to recent price action.
The functions then calculate more averages which measure the difference from and .
Next, it uses all of these calculated averages to create a value that represents the current WAVE condition. This calculation will determine whether the WAVE is in a bullish or bearish trend.
This sum is then smoothed out to get one more value, which is used to display the info box content that allows us to see exactly at what price the WAVE will keep rising or keep falling.
One final calculation also predicts the point at which the WAVE will flip trend. It uses similar calculations to the "Keep Rising/Falling" prediction function, but its aim is to predict the exact price at which the WAVE will cross.
What gives the WAVE indicator an edge over most Stochastic Indicators, is how it uses Pinescript's "request.security" function to pull information from multiple timeframes in order to generate plots, info data and colours to add much more relevant information to the chart which you can use to make informed trading decisions. This is what allows the WAVETrend Scanner to work.
The WAVE indicator is designed to work with all markets and asset types.
MOM HEATThe "MOM HEAT" indicator combines MACD, Stochastic, MFI, and RSI to create a heat map of market momentum.
It calculates wave values based on these indicators for four different timeframes.
The wave values are then normalized and combined to determine overall momentum.
The indicator plots squares on the chart to represent the wave values for each timeframe.
It also draws a line to indicate potential momentum shifts.
Additionally, a table displays the timeframes and their corresponding colors (lib kaigouthro/hsvColor/15).
Overall, the indicator provides a visual representation of market momentum and potential shifts.
Ichimoku Z-Score Stochastic Oscillator with Kumo Depth Analysis---
Ichimoku Z-Score Stochastic Oscillator with Kumo Depth Analysis
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Script Overview
Welcome to the Advanced Ichimoku Z-Score Stochastic Oscillator with Kumo Depth Analysis. This unique strategy is designed to provide a comprehensive, multi-timeframe trading view by leveraging the Ichimoku Cloud, Z-Score, Stochastic Oscillator, and an innovative implied volatility measure – the Kumo Depth. By integrating these powerful tools into one script, traders can make more informed decisions by considering trend strength, volatility, and volume in one holistic view.
Rationale & Strategy
The script was created with the rationale that trading decisions should not only be based on price action and volume, but also on market trend strength and implied volatility. The script integrates these various elements:
The Ichimoku Cloud, a versatile indicator that provides support and resistance levels, trend direction, and momentum all at once.
The Z-Score, a statistical measurement of a value's relationship to the mean (average) of a group of values.
The Stochastic Oscillator, a momentum indicator that uses support and resistance levels to determine probable trend reversals.
The Kumo Depth Analysis, an innovative measure of implied volatility and market trend strength derived from the thickness of the Ichimoku Cloud.
How It Works
This script works by providing visual buy and sell signals based on the confluence of the aforementioned tools.
Ichimoku Cloud and Z-Score: The script first calculates the Ichimoku Cloud lines for both a higher and lower timeframe and measures how much current prices deviate from the cloud using Z-Score.
Stochastic Oscillator: This Z-Score is then inputted into a Stochastic Oscillator, thus giving the oscillator a more normalized range.
Kumo Depth Analysis: Simultaneously, the thickness of the Ichimoku Cloud (Kumo) is calculated as an implied volatility indicator. This depth is normalized and used as a filter to ensure we are trading in a market with substantial trend strength.
Signals: Buy and sell signals are triggered based on the crossover and crossunder of the Stochastic Oscillator lines. Signals are then filtered based on their location relative to the Ichimoku Cloud (price should be above the cloud for buy signals and below for sell signals) and the normalized Kumo Depth.
How to Use
Signal Types: The script provides both strong and weak signals. Strong signals are accompanied by high volume, while weak signals are not. Strong buy signals are indicated with a green triangle at the top, strong sell signals with a red triangle at the bottom. Weak signals are shown as blue and yellow circles, respectively.
Trend Strength: The trend strength is shown by the normalized Kumo Depth. The greater the Kumo Depth, the stronger the trend.
Timeframes: You can customize the timeframes used for the calculations in the input settings.
Adjustments: Users can adjust parameters such as the Ichimoku settings, Stochastic Oscillator settings, timeframes, and Kumo Depth settings to suit their trading style and the characteristics of the asset they are trading.
This script is a complete trading strategy tool providing multi-timeframe, trend-following, and volume-based signals. It's best suited for traders who understand the concepts of trend trading, stochastic oscillators, and volatility measures and want to incorporate them all into one powerful, comprehensive trading strategy.
Stochastic Distance Indicator [CC]The Stochastic Distance Indicator was created by Vitali Apirine (Stocks and Commodities Jun 2023 pgs 16-21), and this is a new method that measures the absolute distance between a price and its highest and lowest values over a long period. It uses the stochastic formula to create an oscillator using this distance value and smooths the value. Obviously, there is a lag in signals due to the lookback periods, but it does a good job of staying above the midline when the stock is in a strong uptrend and vice versa. Of course, I'm open to suggestions, but I'm deciding to create buy and sell signals based on comparing the unsmoothed and smoothed values. Buy when the line turns green and sell when it turns red.
Let me know if there are any other indicators you would like to see me publish!
Multi-Divergence Buy/Sell IndicatorThe "Multi-Divergence Buy/Sell Indicator" is a technical analysis tool that combines multiple divergence signals from different indicators to identify potential buy and sell opportunities in the market. Here's a breakdown of how the indicator works and how to use it:
Input Parameters:
RSI Length: Specifies the length of the RSI (Relative Strength Index) calculation.
MACD Short Length: Specifies the short-term length for the MACD (Moving Average Convergence Divergence) calculation.
MACD Long Length: Specifies the long-term length for the MACD calculation.
MACD Signal Smoothing: Specifies the smoothing length for the MACD signal line calculation.
Stochastic Length: Specifies the length of the Stochastic oscillator calculation.
Stochastic Overbought Level: Defines the overbought level for the Stochastic oscillator.
Stochastic Oversold Level: Defines the oversold level for the Stochastic oscillator.
Calculation of Indicators:
RSI: Calculates the RSI based on the specified RSI Length.
MACD: Calculates the MACD line, signal line, and histogram based on the specified MACD parameters.
Stochastic: Calculates the Stochastic oscillator based on the specified Stochastic parameters.
Divergence Detection:
RSI Divergence: Identifies a bullish divergence when the RSI crosses above its 14-period simple moving average (SMA).
MACD Divergence: Identifies a bullish divergence when the MACD line crosses above the signal line.
Stochastic Divergence: Identifies a bullish divergence when the Stochastic crosses above its 14-period SMA.
Buy and Sell Conditions:
Buy Condition: Triggers a buy signal when all three divergences (RSI, MACD, and Stochastic) occur simultaneously.
Sell Condition: Triggers a sell signal when both RSI and MACD divergences occur, but Stochastic divergence does not occur.
Plotting Buy/Sell Signals:
The indicator plots green "Buy" labels below the price bars when the buy condition is met.
It plots red "Sell" labels above the price bars when the sell condition is met.
Usage:
The indicator can be used on any timeframe and for any trading instrument.
Look for areas where all three divergences (RSI, MACD, and Stochastic) align to generate stronger buy and sell signals.
Consider additional technical analysis and risk management strategies to validate the signals and manage your trades effectively.
Remember, no indicator guarantees profitable trades, so it's essential to use this indicator in conjunction with other tools and perform thorough analysis before making trading decisions.
Feel free to ask any questions
Stochastic [Tcs] | OSCThis script is an implementation of the stochastic relative strength index (STOCH RSI) indicator
The script takes inputs from the length of the RSI, the source of the data, and parameters for the smoothing of the STOCH RSI.
The STOCH RSI is calculated by first calculating the RSI of the chosen source data, then smoothing it with an exponential moving average. The stochastic oscillator is then applied to the smoothed RSI, and smoothed again to create the final STOCH RSI.
The script also calculates a trigger value using a combination of the STOCH RSI and a volume-weighted moving average. It then plots the STOCH RSI, trigger value, and overbought/oversold levels, and fills the background of the plot based on the relationship between the trigger and STOCH RSI values.
Finally, the script plots buy and sell signals based on crossovers and crossunders of the STOCH RSI and its smoothed version.
The cross signal is stronger than the dots, in both direction and usually the best entries happen when two crosses signal on the level 0(long) or 100(short) appear after a dot signal.
Please note that this indicator is for educational purposes only and should not be used for trading without further testing and analysis.
RSI, SRSI, MACD and DMI cross - Open source codeHello,
I'm a passionate trader who has spent years studying technical analysis and exploring different trading strategies. Through my research, I've come to realize that certain indicators are essential tools for conducting accurate market analysis and identifying profitable trading opportunities. In particular, I've found that the RSI, SRSI, MACD cross, and Di cross indicators are crucial for my trading success.
Detailed explanation:
The RSI is a momentum indicator that measures the strength of price movements. It is calculated by comparing the average of gains and losses over a certain period of time. In this indicator, the RSI is calculated based on the close price with a length of 14 periods.
The Stochastic RSI is a combination of the Stochastic Oscillator and the RSI. It is used to identify overbought and oversold conditions of the market. In this indicator, the Stochastic RSI is calculated based on the RSI with a length of 14 periods.
The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of prices. It consists of two lines, the MACD line and the signal line, which are used to generate buy and sell signals. In this indicator, the MACD is calculated based on the close price with fast and slow lengths of 12 and 26 periods, respectively, and a signal length of 9 periods.
The DMI is a trend-following indicator that measures the strength of directional movement in the market. It consists of three lines, the Positive Directional Indicator (+DI), the Negative Directional Indicator (-DI), and the Average Directional Index (ADX), which are used to generate buy and sell signals. In this indicator, the DMI is calculated with a length of 14 periods and an ADX smoothing of 14 periods.
The indicator generates buy signals when certain conditions are met for each of these indicators.
1) For the RSI, a buy signal is generated when the RSI is below or equal to 35 and the Stochastic RSI %K is below or equal to 15, or when the RSI is below or equal to 28 the Stochastic RSI %K is below or equal to 15 or when the RSI is below or equal to 25 and the Stochastic RSI %K is below or equal to 10 or when the RSI is below or equal to 28.
2) For the MACD, a buy signal is generated when the MACD line is below 0, there is a change in the histogram from negative to positive, the MACD line and histogram are negative in the previous period, and the current histogram value is greater than 0.
3) For the DMI, a buy signal is generated when the Positive Directional Indicator (+DI) crosses above the Negative Directional Indicator (-DI), and the -DI is less than the +DI.
The indicator generates sell signals when certain conditions are met for each of these indicators:
1) For the RSI, a sell signal is generated when the RSI is above or equal to 75 and the Stochastic RSI %K is above or equal to 85, or when the RSI is above or equal to 80 and the Stochastic RSI %K is above or equal to 85, or when the RSI is above or equal to 85 and the Stochastic RSI %K is above or equal to 90 or when the RSI is above or equal to 82.
2)For the MACD, a sell signal is generated when the MACD line is above 0, there is a change in the histogram from positive to negative, the MACD line and histogram are positive in the previous period, and the current histogram value is less than the previous histogram value. On the other hand, a buy signal is generated when the MACD line is below 0, there is a change in the histogram from negative to positive, the MACD line and histogram are negative in the previous period, and the current histogram value is greater than the previous histogram value.
3)For the DMI a bearish signal is generated when plusDI crosses above minusDI, indicating that bulls are losing strength and bears are taking control.
The indicator uses a combination of these four indicators to generate potential buy and sell signals. The buy signals are generated when RSI and SRSI values are in oversold conditions, while sell signals are generated when RSI and SRSI values are in overbought conditions. The indicator also uses MACD crossovers and DMI crossovers to generate additional buy and sell signals.
When a signal is strong?
The use of multiple signals within a specific timeframe can increase the accuracy and reliability of the signals generated by this indicator. It is recommended to look for at least two signals within a range of 5-8 candles in order to increase the probability of a successful trade.
Why it's original?
1) There is no indicator in the library that combine all of these indicators and give you a 360 view
2)The combination of the RSI, Stochastic RSI, MACD, and DMI indicators in a single script it's unique and not available in the libray.
3)The specific parameters and conditions used to calculate the signals may be unique and not found in other scripts or libraries.
4)The use of plotshape() to plot the signals as shapes on the chart may be unique compared to other scripts that simply plot lines or bars to indicate signals.
5)The use of alertcondition() to trigger alerts based on the signals may be unique compared to other scripts that do not have custom alert functionality.
Keep attention!
It is important to note that no trading indicator or strategy is foolproof, and there is always a risk of losses in trading. While this indicator may provide useful information for making conclusions, it should not be used as the sole basis for making trading decisions. Traders should always use proper risk management techniques and consider multiple factors when making trading decisions.
Support me:)
If you find this new indicator helpful in your trading analysis, I would greatly appreciate your support! Please consider giving it a like, leaving feedback, or sharing it with your trading network. Your engagement will not only help me improve this tool but will also help other traders discover it and benefit from its features. Thank you for your support!
User Defined Momentum Change with Swing VisualsThis script is a groundbreaking, math-centric technical analysis tool that blends two well-established indicators, the Stochastic Oscillator and the Exponential Moving Average (EMA), to deliver a unique and visually engaging way of identifying momentum swings and stochastic indicators. Unlike mashups, this script is tailored to accommodate a wide range of trading strategies, providing traders with a distinctive perspective on market trends.
The innovation in this script lies in its mathematically-driven ability to effectively combine the Stochastic Oscillator and EMA, setting it apart from other available tools that simply offer a rehash of old ideas or slight modifications to popular indicators. The EMA is employed instead of a Simple Moving Average (SMA), enhancing the uniqueness of the calculations. This novel approach creates a new dimension for traders to evaluate potential momentum swings and visualize them on the chart, proving it to be more than just a mere mashup of existing indicators.
Central to the script's utility is its extensive customization options, which allow traders to adjust various inputs to suit their preferences and trading strategies. Users can modify the EMA length, swing range signal offsets, and smoothing factors for both the fast and slow components of the Stochastic Oscillator. Additionally, the script offers the ability to personalize the color thresholds, transparency, and line properties for the Stochastic Oscillator and swing range signal.
This script's visually dynamic representation of momentum swings empowers traders to make more informed trading decisions, particularly on the 6-hour timeframe. The swing range signal, represented by vertical lines on the chart, acts as a valuable visual aid for identifying potential entry or exit points. Furthermore, the Stochastic Oscillator provides insights into the strength and direction of momentum, which is beneficial for confirming potential trade signals.
To conclude, this script is not just another combination of MAs or a slightly modified version of a popular indicator. Instead, it offers traders a comprehensive, visually appealing, and customizable tool for technical analysis, which is both original and useful. By uniquely combining the EMA and the Stochastic Oscillator with a strong mathematical foundation, and allowing traders to adjust a variety of settings, this script adds value to the TradingView community and enhances the body of knowledge available for traders. It is designed to support traders in tailoring their analysis based on their own strategies and preferences, enabling them to make well-informed decisions in the financial markets.
SynthSAR ConfirmationThis indicator represents confirmation of a trend based on the PSAR indicator and includes signals from the MACD, stochastic oscillator, and awesome oscillator. It displays the points of the parabolic SAR on the chart, which help determine the direction of the trend. Additionally, the indicator allows for tracking signals based on the combined analysis of three other technical indicators: MACD, stochastic oscillator, and awesome oscillator. Furthermore, the indicator includes the ability to display buy/sell labels and signals for changing the trend direction. This is not an investment recommendation.Very effective in higher timeframes.If the MACD "macd line" crosses the "signal line" from above and the Stochastic %K line crosses the %D line from above, and the last column in the Avesome Oscillator is red, then the indicator gives a signal to sell. If the MACD "macd line" crosses the "signal line" from below and the Stochastic %K line crosses the %D line from below, and the last column in the Avesome Oscillator is green, then the indicator gives a signal to buy.
