Previous Day Close (PVC)Indicator Description: Previous Day Close
This indicator visually represents the previous day's closing price, providing traders with a clear reference point on the chart. By marking this key level, it enhances your ability to analyze stock price movements and make informed trading decisions.
Key Features:
Visual Clarity: The previous day's close is prominently displayed, making it easy to spot significant price levels at a glance.
Enhanced Analysis: Use this indicator to identify potential support and resistance levels based on historical closing prices.
User-Friendly: Designed for simplicity, this indicator integrates seamlessly into your trading workflow.
Leverage the power of the previous day’s close to improve your trading strategy and gain a competitive edge in the market!
Трендовый анализ
Options Series - NonOverlay_Technical
⭐ 1. Purpose:
The script is designed to show technical indicators in a non-overlay form using candlestick representations. It combines multiple popular technical analysis tools to gauge the market's bullish or bearish conditions.
⭐ 2. Indicators:
The script uses several indicators across different timeframes: Exponential Moving Averages (EMA) for 5, 20, 50 periods. Simple Moving Average (SMA) for 200 periods. RSI (Relative Strength Index) for momentum. VWAP (Volume Weighted Average Price) for average price evaluation. PSAR (Parabolic SAR) for trend direction. Daily and multi-day (2-day and 3-day) data for broader market context.
⭐ 3. Candlestick Representation:
The script uses color-coded candlesticks to visually represent various indicators and their bullish/bearish states: Green candlesticks for bullish conditions. Red candlesticks for bearish conditions. Neutral/transparent for non-significant conditions.
⭐ 4. Important Conditions:
It calculates bullish and bearish conditions for each indicator: MA20: When the price is above or below the 20-period EMA. RSI: When RSI is above or below 50. VWAP: When the price is above or below the VWAP. PSAR: When the price is above or below the PSAR. 2-day and 3-day Moving Averages: Evaluating the broader trend.
⭐ 5. Bullish vs. Bearish Calculation:
The script sums up bullish and bearish signals to determine the overall market condition: Current_logical_bull: Counts the number of bullish indicators. Current_logical_bear: Counts the number of bearish indicators. The script compares these values to conclude whether the market is more bullish or bearish.
⭐ 6. Visual Plotting:
The script uses plotcandle to display the non-overlay signals at different levels for each condition, stacked vertically from MA20 to PSAR. Additionally, a master candle combines all indicators to show an overall market trend.
⭐ 7. Neon Effect on MA20:
It adds a neon-like effect to the MA20 line, making it visually prominent: A standard plot line with the base color. Two additional neon layers with increasing transparency to enhance the effect.
⭐ 8. Daily Timeframes and Lookahead:
The script fetches daily data using the lookahead feature to get a broader view of the market trend. It tracks the previous day’s and two days' data for comparison.
⭐ 9. Labels and Customization:
The script dynamically adds labels to the chart for the different plotted indicators at the last bar, making it easier to identify which indicator is being represented.
🚀 Conclusion:
The script combines multiple technical indicators, such as EMA, RSI, VWAP, PSAR, and multi-day moving averages, to visually assess bullish and bearish market conditions. It uses color-coded candlesticks to represent each indicator and sums up the signals to determine the overall trend.
Zero-Lag MA Trend Levels [ChartPrime] The Zero-Lag MA Trend Levels indicator combines a Zero-Lag Moving Average (ZLMA) with a standard Exponential Moving Average (EMA) to provide a dynamic view of the market trend. This indicator uses a color-changing cloud to represent shifts in trend momentum and plots key levels when trend reversals are detected. The addition of trend level boxes helps identify significant price zones where market shifts occur, with retest signals aiding in spotting potential continuation or reversal points.
⯁ KEY FEATURES & HOW TO USE
⯌ Zero-Lag Moving Average (ZLMA) with EMA Cloud :
The indicator employs a Zero-Lag Moving Average (ZLMA) alongside a standard EMA.
series float emaValue = ta.ema(close, length) // EMA of the closing price
series float correction = close + (close - emaValue) // Correction factor for zero-lag calculation
series float zlma = ta.ema(correction, length) // Zero-Lag Moving Average (ZLMA)
The cloud between these averages changes color depending on the trend direction. During a downtrend, if the ZLMA begins to increase, the cloud partially turns green, signaling potential strength. Conversely, during an uptrend, if the ZLMA decreases, the cloud partially turns to the downtrend color (blue by default), indicating potential weakness.
Use : Traders can monitor the cloud's color shifts for early signs of changing momentum. A fully colored cloud aligning with the current trend indicates a strong directional move, while mixed colors suggest a potential trend change.
⯌ Trend Shift and Level Boxes :
Each time a crossover between the EMA and the ZLMA occurs, indicating a trend shift, the indicator plots a box around the price level where the shift occurred. This box remains on the chart to mark the price zone of the trend change.
Use : The boxes provide clear visual markers of where market sentiment shifted. These levels can act as support and resistance zones. Traders can use these boxes to identify potential entry or exit points when the market retests these key levels.
⯌ Retest Detection with Labels :
If the price action crosses a previously plotted trend level box, the indicator marks this event with triangle labels. An upward triangle (▲) appears when the price retests the top of a box during a bullish crossover, and a downward triangle (▼) appears when the price retests the bottom of a box during a bearish crossunder.
Use : These labels help traders identify potential continuation or reversal points at critical price levels, offering additional confirmation for trading decisions.
⯌ Dynamic Color-Coding :
The color of the ZLMA and the EMA is adjusted according to their current trend direction, with the ZLMA adopting green for upward trends and blue for downward trends. This visual representation makes it easier to quickly gauge the market's momentum at a glance.
Use : Traders can use the color-coding to quickly assess the strength and direction of the current trend, allowing for more informed decision-making.
⯁ USER INPUTS
Length : Sets the period for both the ZLMA and EMA calculations.
Trend Levels : Toggle to display the trend level boxes on the chart.
Colors (+ / -) : Define the colors for bullish and bearish trends.
⯁ CONCLUSION
The Zero-Lag MA Trend Levels - ChartPrime indicator offers a nuanced approach to trend detection by combining the ZLMA with a traditional EMA. Its dynamic cloud color changes, trend level boxes, and retest labels make it a versatile tool for traders seeking to identify trend shifts and key price zones effectively. By incorporating elements of support and resistance along with trend momentum, this indicator provides a comprehensive view of market dynamics for both trend-following and counter-trend trading strategies.
Iceberg Trade Revealer [CHE]Unveiling Iceberg Trades: A Deep Dive into Low Volatility Market Phases
Introduction
In the dynamic world of trading, hidden forces often influence market movements in ways that aren't immediately apparent. One such force is the phenomenon of iceberg trades—large orders that are concealed to prevent significant market impact. This presentation explores the concept of iceberg trades, explains why they are typically hidden during periods of low volatility, and introduces an indicator designed to reveal these elusive trades.
Agenda
1. Understanding Iceberg Trades
- Definition and Purpose
- Impact on Market Dynamics
2. The Low Volatility Concealment
- Why Low Volatility Phases?
- Strategies Behind Hiding Large Orders
3. Introducing the Iceberg Trade Revealer Indicator
- How the Indicator Works
- Key Components and Calculations
4. Demonstration and Use Cases
- Interpreting the Indicator Signals
- Practical Trading Applications
5. Conclusion
- Summarizing the Insights
- Q&A Session
1. Understanding Iceberg Trades
Definition and Purpose
- Iceberg Trades are large single orders divided into smaller lots to disguise the total order quantity.
- Traders use iceberg orders to minimize market impact and avoid unfavorable price movements.
Impact on Market Dynamics
- Concealed Volume: Iceberg orders hide true supply and demand levels.
- Price Stability: They prevent sudden spikes or drops by releasing orders gradually.
- Market Sentiment: Their presence can influence perceptions of market strength or weakness.
2. The Low Volatility Concealment
Why Low Volatility Phases?
- Less Market Attention: Low volatility periods attract fewer traders, making it easier to conceal large orders.
- Reduced Slippage: Prices are more stable, reducing the risk of executing orders at unfavorable prices.
- Strategic Advantage: Large players can accumulate or distribute positions without tipping off the market.
Strategies Behind Hiding Large Orders
- Order Splitting: Breaking down large orders into smaller pieces.
- Time Slicing: Executing orders over an extended period.
- Algorithmic Trading: Using sophisticated algorithms to optimize order execution.
3. Introducing the Iceberg Trade Revealer Indicator
How the Indicator Works
- Core Thesis: Iceberg trades can be detected by analyzing periods of unusually low volatility.
- Volatility Analysis: Uses the Average True Range (ATR) and Bollinger Bands to identify low volatility phases.
- Signal Generation: Marks periods where iceberg trades are likely occurring.
Key Components and Calculations
1. Average True Range (ATR)
- Measures market volatility over a specified period.
- Lower ATR values indicate less price movement.
2. Bollinger Bands
- Creates a volatility envelope around the ATR.
- Bands tighten during low volatility and widen during high volatility.
3. Timeframe Adjustments
- Utilizes multiple timeframes to enhance signal accuracy.
- Options for auto, multiplier, or manual timeframe selection.
4. Signal Conditions
- Iceberg Trade Detection: ATR falls below the lower Bollinger Band.
- Revealed Volatility: ATR rises above the upper Bollinger Band, indicating potential market moves after iceberg trades.
4. Demonstration and Use Cases
Interpreting the Indicator Signals
- Iceberg Trade Zones: Highlighted areas where large hidden orders are likely.
- Revealed Volatility Zones: Areas indicating the market's response to the execution of iceberg trades.
Practical Trading Applications
- Entry and Exit Points: Use signals to time trades alongside institutional activity.
- Risk Management: Adjust strategies during detected low volatility phases.
- Market Analysis: Gain insights into underlying market mechanics.
5. Conclusion
Summarizing the Insights
- Iceberg Trades play a significant role in market movements, especially when concealed during low volatility phases.
- The Iceberg Trade Revealer Indicator provides a tool to uncover these hidden activities, offering traders a strategic edge.
- Understanding and utilizing this indicator can enhance trading decisions by aligning them with the actions of major market players.
Best regards Chervolino ( Volker )
Q&A Session
- Questions and Discussions: Open the floor for any queries or further explanations.
Thank You!
By delving into the hidden aspects of market activity, traders can better navigate the complexities of financial markets. The Iceberg Trade Revealer Indicator serves as a bridge between observable market data and the concealed strategies of large institutions.
References
- Average True Range (ATR): A technical analysis indicator that measures market volatility.
- Bollinger Bands: A volatility indicator that creates a band of three lines which are plotted in relation to a security's price.
- Iceberg Orders: Large orders divided into smaller lots to hide the actual order quantity.
Note: Always consider multiple factors when making trading decisions. Indicators provide tools, but they do not guarantee results.
Educational Content Disclaimer:
Disclaimer:
The content provided, including all code 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 any financial instrument, or an offer of any financial product or service. All strategies, tools, and examples discussed are provided for illustrative purposes to demonstrate coding techniques and the functionality of Pine Script within a trading context.
Any results from strategies or tools provided are hypothetical, and past performance is not indicative of future results. Trading and investing involve high risk, including the potential loss of principal, and may not be suitable for all individuals. Before making any trading decisions, please consult with a qualified financial professional to understand the risks involved.
By using this script, you acknowledge and agree that any trading decisions are made solely at your discretion and risk.
Hma Swing Points | viResearchHma Swing Points | viResearch
Conceptual Foundation and Innovation
The "Hma Swing Points" script introduces a simple yet effective method for identifying key swing points in the market using Hull Moving Averages (HMA). The Hull Moving Average is a faster and smoother alternative to traditional moving averages, making it ideal for detecting significant price swings. By applying HMA to both high and low prices, the script identifies swing highs and lows, providing traders with visual cues for potential trend reversals or continuations. This approach helps traders recognize turning points in the market with minimal lag, allowing for more precise entries and exits.
Technical Composition and Calculation
This script uses two Hull Moving Averages—one for the high prices and another for the low prices. These HMAs offer smoother trend detection while filtering out market noise. The script identifies the highest and lowest HMA values over a user-defined lookback period to determine the swing high and swing low points. Long signals are generated when the current HMA of the highs matches the highest value within the lookback period, while short signals are generated when the HMA of the lows matches the lowest value. These signals are plotted on the chart, and alerts can be set to notify the trader of possible entry or exit points.
Features and User Inputs
The script offers several customizable inputs to adjust its sensitivity and behavior according to the trader’s preferences. The lookback period defines the number of bars used to calculate the highest and lowest HMA values, allowing traders to control how responsive the script is to price changes. The length of the Hull Moving Average can also be modified, giving traders flexibility in smoothing the indicator. Additionally, optional bar color settings provide visual cues, with bullish and bearish trends highlighted. Alerts are included to notify traders when long or short swing points are detected, ensuring they are informed even when not actively monitoring the chart.
Practical Applications
The "Hma Swing Points" script is useful for traders who aim to identify critical market turning points and potential reversals. It is especially effective in trending markets where price swings present trading opportunities. Traders can use the script to detect reversals by spotting swing points that indicate a possible shift from bullish to bearish trends, or vice versa. The script also helps confirm ongoing trends by showing the strength of swings, allowing traders to make informed decisions about entering or exiting trades. Its ability to mark precise swing points enhances trade timing, helping traders optimize their entries and exits.
Advantages and Strategic Value
The script offers a streamlined approach to detecting swing points with the speed and smoothness of the Hull Moving Average. This makes it easier to filter out false signals and noise, improving the accuracy of trend identification. The customizable inputs allow traders to tailor the script for different assets and market conditions, making it versatile for various trading styles. By highlighting key swing points, the script provides traders with clear visual signals for potential reversals and trend confirmations, enhancing their ability to follow and act on market movements.
Summary and Usage Tips
Incorporating the "Hma Swing Points" script into a trading strategy helps traders identify market reversals and continuation points more effectively. Adjusting the lookback period and HMA length ensures the script adapts to different assets and market conditions. The alert system ensures traders don’t miss key swing points. As always, backtesting is important to evaluate the script’s performance under various market conditions, and past results may not guarantee future outcomes.
Magic Touch Line DetectorSummary of the Magic Touch Line Detector Script:
Purpose:
The Magic Touch Line Detector script is designed to identify significant price points in the market by analyzing candlestick wicks and bodies. It plots lines based on the detected wicks, classifying them as either ascending or descending. The script tracks how frequently price touches these lines and highlights the "most touched" lines for both ascending and descending categories. This script is particularly useful for traders looking to identify key price levels and trends over time.
How It Works:
Wick and Body Detection:
The script starts by analyzing the highs and lows of candlestick wicks relative to their bodies over a user-defined lookback period. A significant wick is identified based on a specified wick-to-body ratio and a deviation threshold measured against the Average True Range (ATR).
Line Creation:
Once a significant upper or lower wick is detected, the script calculates unconventional highs and lows (i.e., points that differ from the absolute highs and lows of the lookback period). Lines are then drawn from these unconventional price points using the slope between the detected wick and the current bar, ensuring a smooth extension.
Line Refinement and Touch Tracking:
As new bars are added, the script tracks how often the price touches the previously drawn lines. The number of touches each line receives is counted and updated in real-time, and the script ensures that only the most touched line is highlighted.
Highlighting and Labeling:
For each category (ascending and descending), the most touched line is identified and given special highlighting with thicker lines and different colors. Labels are also generated to show the number of touches that the most touched line has received. Old labels are cleared to avoid clutter.
Explanation of the Settings:
Lookback Period for Highs and Lows:
This sets the number of bars the script will use to detect the highest highs and lowest lows. A larger lookback period gives the script a broader context to work with, potentially identifying more significant price points.
Minimum Wick-to-Body Ratio:
This ratio determines what qualifies as a "significant" wick. It compares the length of the wick to the body of the candle. A higher ratio means that only wicks that are much longer than the candle body will be considered significant.
Price Deviation Threshold (in ATR multiples):
This setting controls how much price deviation from the ATR is required for a wick to be deemed significant. It acts as a filter to reduce noise by ignoring smaller wicks that are within normal price movements.
Line Touch Tolerance Factor (ATR multiple):
When checking if a price touches a line, the script uses this setting to define how close the price must be to the line to count as a "touch." This tolerance is a multiplier of the ATR, allowing for some flexibility in what is considered a touch.
Price Difference Threshold:
This defines the minimum price difference required to plot a line. If the price difference between the high and low of a detected wick is too small, the script can avoid plotting a line for insignificant moves.
Slope Adjustment Multiplier:
This multiplier adjusts the slope of the lines that are drawn from detected price points. It affects the length and angle of the lines, allowing users to control how far and at what angle the lines should extend across the chart.
Customization Options:
Show Ascending/Descending Lines:
These toggles allow users to decide whether ascending (bullish) or descending (bearish) lines should be shown on the chart.
Line Color, Style, and Width (for Ascending and Descending Lines):
These settings give users control over how the lines appear visually. You can customize the color, style (solid, dashed, dotted), and width of both ascending and descending lines.
Most Touched Line Color:
Users can define a different color for the "most touched" line, which is automatically identified by the script. This setting helps highlight the line that has been interacted with the most by the price.
How to Use the Script:
Setup the Lookback Period and Deviation Filters:
Start by setting the lookback period and the filters for wick-to-body ratio and deviation threshold. These settings help control the script's sensitivity to market movements.
Refine the Tolerance and Slope:
Adjust the line touch tolerance and slope adjustment multiplier to control how closely the script tracks price touches and how the lines are extended on the chart.
Customize Visuals:
Once the lines are being drawn, customize the colors, styles, and widths to ensure the lines are easy to read on your chart. You can also decide if you want to display both ascending and descending lines or focus on just one.
By setting up the script based on these inputs and parameters, you can get a real-time view of significant price levels and how often the price interacts with them, helping you make more informed trading decisions.
Support, Resistance & Liquidity Pool ZonesSupport, Resistance & Liquidity Pool Zones
This indicator automatically detects and plots support and resistance levels based on pivot points and highlights liquidity pool zones, areas where the trading volume exceeds the average over a set number of bars. It is designed to help traders identify key price levels and liquidity traps that can trigger significant market reactions.
Key Features:
Support & Resistance Levels:
The indicator identifies pivot highs and pivot lows as potential resistance and support levels, respectively.
You can customize the number of levels shown on the chart, making it easier to focus on the most recent and relevant price levels.
Liquidity Pool Zones:
The script detects liquidity pool zones, which are areas with above-average trading volume. These zones often act as regions of interest where price accumulation or distribution occurs, potentially leading to significant price moves.
Liquidity zones are shaded to help traders visually identify areas of high interest in the market.
Customizable Settings:
You can adjust the pivot period to fine-tune how the indicator calculates support and resistance.
Control the number of support/resistance levels displayed on the chart and the period used to detect liquidity pools.
Customize the colors for support, resistance, and liquidity zones to match your charting preferences.
Alerts:
The script includes built-in alerts for when the price breaks above resistance or falls below support, helping traders catch key breakout opportunities.
How It Works:
The script calculates support and resistance levels using pivot highs and lows based on the user-defined pivot period.
It monitors liquidity pool zones by comparing the current trading volume with the average volume over a customizable period. When the volume exceeds the set threshold, a liquidity pool zone is highlighted, providing insight into where the market may accumulate or distribute.
Alerts are triggered when the price breaks above the first resistance level or falls below the first support level, giving traders immediate notification of key market events.
How to Use:
Tune the Pivot Period: Adjust the pivot period to your preferred time horizon (default: 10 bars).
Set Liquidity Pool Parameters: Customize the number of bars considered for liquidity pool detection and the volume multiplier to detect high-volume zones.
Monitor Breakouts: Use the built-in alerts to catch potential breakout or breakdown opportunities near support and resistance levels.
This script is ideal for traders looking for an easy-to-use tool to visualize support and resistance levels and liquidity pools, aiding in decision-making and trade management.
Fibonacci Swing Trading BotStrategy Overview for "Fibonacci Swing Trading Bot"
Strategy Name: Fibonacci Swing Trading Bot
Version: Pine Script v5
Purpose: This strategy is designed for swing traders who want to leverage Fibonacci retracement levels and candlestick patterns to enter and exit trades on higher time frames.
Key Components:
1. Multiple Timeframe Analysis:
The strategy uses a customizable timeframe for analysis. You can choose between 4hour, daily, weekly, or monthly time frames to fit your preferred trading horizon. The high and low-price data is retrieved from the selected timeframe to identify swing points.
2. Fibonacci Retracement Levels:
The script calculates two key Fibonacci retracement levels:
0.618: A common level where price often retraces before resuming its trend.
0.786: A deeper retracement level, often used to identify stronger support/resistance areas.
These levels are dynamically plotted on the chart based on the highest high and lowest low over the last 50 bars of the selected timeframe.
3. Candlestick Based Entry Signals:
The strategy uses candlestick patterns as the only indicator for trade entries:
Bullish Candle: A green candle (close > open) that forms between the 0.618 retracement level and the swing high.
Bearish Candle: A red candle (close < open) that forms between the 0.786 retracement level and the swing low.
When these candlestick patterns align with the Fibonacci levels, the script triggers buy or sell signals.
4. Risk Management:
Stop Loss: The stop loss is set at 1% below the entry price for long trades and 1% above the entry price for short trades. This tight risk management ensures controlled losses.
Take Profit: The strategy uses a 2:1 risk-to-reward ratio. The take profit is automatically calculated based on this ratio relative to the stop loss.
5. Buy/Sell Logic:
Buy Signal: Triggered when a bullish candle forms above the 0.618 retracement level and below the swing high. The bot then places a long position.
Sell Signal: Triggered when a bearish candle forms below the 0.786 retracement level and above the swing low. The bot then places a short position.
The stop loss and take profit levels are automatically managed once the trade is placed.
Strengths of This Strategy:
Swing Trading Focus: The strategy is ideal for swing traders, targeting longer-term price moves that can take days or weeks to play out.
Simple Yet Effective Indicators: By only relying on Fibonacci retracement levels and basic candlestick patterns, the strategy avoids complexity while capitalizing on well-known support and resistance zones.
Automated Risk Management: The built-in stop loss and take profit mechanism ensures trades are protected, adhering to a strict 2:1 risk/reward ratio.
Multiple Timeframe Analysis: The script adapts to various market conditions by allowing users to switch between different timeframes (4hour, daily, weekly, monthly), giving traders flexibility.
Strategy Use Cases:
Retracement Traders: Traders who focus on entering the market at key retracement levels (0.618 and 0.786) will find this strategy especially useful.
Trend Reversal Traders: The strategy’s reliance on candlestick formations at Fibonacci levels helps traders spot potential reversals in price trends.
Risk Conscious Traders: With its 1% risk per trade and 2:1 risk/reward ratio, the strategy is ideal for traders who prioritize risk management in their trades.
Elder AutoEnvelope with Overbought/Oversold Levels with LabelsThe **"Elder AutoEnvelope with Overbought/Oversold Levels with Labels"** is a technical analysis tool designed to help identify overbought and oversold levels in the market, as well as potential reversal points. It uses moving averages and price volatility to detect possible price extremes.
### Indicator Description:
- **Center EMA (26)**: Acts as the main trend line.
- **Envelope Channels**: These are constructed around the central EMA using the current price volatility. The main channel lines are determined by multiplying the standard deviation of the price by the chosen multiplier.
- **Additional Overbought/Oversold Levels**: Displayed on the chart with different colors and thicknesses to highlight small, moderate, strong, and very strong levels.
- **Labels**: Show specific levels when the price reaches areas of overbought or oversold conditions.
### How to Apply in Practice:
1. **Identifying Extremes**: The indicator shows areas where the price is considered overbought or oversold relative to the current trend. When the price touches or exceeds these levels, it can indicate a potential reversal or correction.
2. **Entry/Exit Signals**:
- **Entry on Oversold**: If the price reaches the lower Envelope lines (especially at strong or very strong oversold levels), it may be a good buying signal.
- **Exit on Overbought**: If the price touches the upper lines (especially at strong or very strong overbought levels), it signals a potential selling opportunity.
3. **Combining with Other Indicators**: It’s recommended to use this indicator alongside oscillators like RSI or MACD for signal confirmation.
4. **Trend Analysis**: The central EMA (26) helps identify the trend direction. If the price is above it, the trend is considered bullish; if below, bearish.
This indicator is particularly useful in volatile markets and helps detect price movements near highs or lows.
Trend Following Moron TFM 10% System
Trend Following Moron TFM 10% System
The TFM 10% Market Timing System
The Trend Following Moron TFM 10% System is a powerful trading tool designed using Pine Script™, following the principles outlined by Dave S. Landry. This script helps traders identify optimal entry and exit points based on moving averages and market trends.
What the Script Does:
Visual representation of trend strength.
As long as it is trending in green band, trend is very strong and price is contained within 5% of the high.
As price drops to yellow band, strength is weakening and caution is advised. Price is between 5% to 10% away from52 week high.
As price drops in red band, it is to be avoided as trend is rolling over. Price is more than 10% way from 52 week high.
Moving Averages Calculation:
Users can choose between Simple Moving Average (SMA) and Exponential Moving Average (EMA) for daily, weekly, and monthly periods. The script calculates the moving averages to provide trend direction.
Trend Color Coding:
Moving averages are displayed in different colors based on market conditions: green indicates an uptrend, red for a downtrend, and gray for neutral conditions.
Highs Calculation:
The script calculates the 52-week and 12-month closing highs, which are crucial for identifying potential breakout points.
Level Definition:
Traders can set levels based on either Average True Range (ATR) or percentage changes from these highs, allowing for flexible risk management strategies.
Buy and Sell Conditions:
The script defines specific buy conditions: when the price is within 10% of the highest close and trading above the moving averages, and sell conditions: when the price falls below these thresholds.
Visual Indicators:
Buy and sell signals are visually represented on the chart with arrows, making it easy for traders to see potential trading opportunities at a glance.
Performance Labels:
The script includes performance labels that track the number of bars above or below the moving averages and the percentage change from the moving average, providing users with key metrics to evaluate their trades.
Interactive Table:
A table summarizing the buy and sell rules is displayed on the chart, ensuring that traders have quick access to the system’s trading logic.
Benefits of Using the TFM 10% System:
Streamlined Decision Making:
The script simplifies the trading process by clearly outlining buy and sell signals, making it accessible even for novice traders.
Customizable Parameters:
Users can tailor the script to their preferences by adjusting moving average types and lengths, ATR levels, and percentage thresholds. Bands are interchange able for ATR and Percent below 52 week high for volatility looks. But buy and sell are fixed in 10% threshold.
Risk Management:
By utilizing ATR and percentage levels, traders can effectively manage their risk, making the trading process more systematic.
Comprehensive Market Analysis:
The combination of multiple time frames (daily, weekly, monthly) allows for a well-rounded analysis of market trends, enhancing trading accuracy.
Wick/Tail Candle MeasurementsThis indicator runs on trading view. It was programmed with pine script v5.
Once the indicator is running you can scroll your chart to any year or date on the chart, then for the input select the date your interested in knowing the length of the tails and wicks from a bar and their lengths are measured in points.
To move the measurement, you can select the vertical bar built into the indicator AFTER clicking the green label and moving it around using the vertical bar *only*. You must click the vertical bar in the middle of the label to move the indicator calculation to another bar. You can also just select the date using the input as mentioned. This indicator calculates just one bar at a time.
measurements are from bar OPEN to bar HIGH for measured WICKS regardless of the bar being long or short and from bar OPEN to bar LOW for measured TAILS also regardless of the bar being long or short.
This indicator calculates tails and wicks including the bar body in the calculations. Basically showing you how much the market moved in a certain direction for the entire duration of that Doji candle.
Its designed to measure completed bars on the daily futures charts. (Dow Jones, ES&P500, Nasdaq, Russell 2000, etc) Although it may work well on other markets. The indicator could easily be tweaked in order to work well with other markets. It is not designed for forex markets currently.
ANN Trend PredictionThis trend indicator utilizes an artificial neural network (ANN) to predict the next market reversal within a certain range of previous candles. The larger the range of previous candles you set, the fewer reversals will be predicted, and trends will tend to last longer.
The ANN is trained on the BTCUSD 4-hour chart, so using it on other assets or timeframes may yield suboptimal results. It takes three input values: the closing price, the Stochastic RSI, and a Choppiness Indicator. Based on these inputs, the ANN categorizes the current candle as part of an uptrend, downtrend, or as undefined.
Compared to an EMA-based trend indicator, this ANN identifies reversals several candles earlier. It achieves this by detecting subtle patterns in the input values that typically appear before a market turnaround. These patterns are somewhat specific to that chosen asset and timeframe.
The results are displayed using rows of triangles that indicate the predicted price direction. The price levels of the triangles correspond to the closing price at the last reversal. The area between the triangle row and the price is colored green if the ANN correctly predicted the move, and red if it did not.
This indicator is designed to showcase the capabilities and potential of ANNs, and is not intended for actual trading use. The ANN can be trained on any other input values, assets and timeframes for several predictions tasks.
You can use the Predicted_Trend_Signal of this Indicator in any backtest indicator. In the Backtester just grap the Predicted_Trend_Signal. downtrend = 1, uptrend = -1, undefined = 0
Feel free to write me a comment.
Volume-Weighted Trend Strength indexVolume-Weighted Trend Strength index (VWTSI)
Introduction
The VWTSI is a custom indicator designed to combine trend strength, volume, and volatility to give traders a comprehensive view of market dynamics. It provides flexibility by allowing you to visualize the indicator as either an oscillator or a moving average.
Features
Dual Visualization: Can be displayed either as an oscillator or as a moving average on the chart.
Volume-Weighted: Adjusts trend strength based on current volume compared to its average.
Volatility-Adjusted: Incorporates market volatility into the trend strength calculation.
Customizable: Various parameters can be fine-tuned to suit different trading environments.
How It Works
1. Trend Strength Calculation
The difference between the fast (10-period) and slow (30-period) EMAs is used to calculate trend strength, which gives a percentage-based indication of the trend's strength
2. Volatility Adjustment
The ATR-based volatility is calculated and used to amplify or reduce the trend strength based on the current market conditions
3. Volume Adjustment
The ratio of current volume to the volume SMA adds another layer of adjustment to the final VWTSI value
4. Final VWTSI Calculation
The VWTSI value is the product of trend strength, volatility factor, and volume ratio
5. Normalization
The final VWTSI is normalized to fit within a range of -100 to 100 for better visualization in oscillator mode
Customization Inputs
Fast EMA Length: Default is 10.
Slow EMA Length: Default is 30.
Volume Length: Default is 14.
Volatility Length (ATR): Default is 20.
Oscillator or MA Mode: Toggle between displaying the indicator as an oscillator or moving average.
Consecutive Beta with Dynamic Support Resistance [TrendX_]The Consecutive Beta with Dynamic Support Resistance indicator is tailored to harness trend momentum, recognize top & bottom reversals, and leverage dynamic support and resistance levels. This indicator introduces a new approach by combining the concepts of beta, consecutive counting mechanisms, and the supertrend structure, making it a fresh tool for understanding market trends and patterns.
💎 KEY FEATURES
Candle’s Relative Valuation Using Beta: The core of the TrendX indicator lies in using beta to gauge volatility. Beta serves as a measure of how an asset moves relative to the broader market, helping traders understand whether the asset is more or less volatile in different market conditions.
Counting Techniques for Momentum & Reversals: By employing counting techniques to reach a significant threshold, the indicator can measure trend momentum and spot top/bottom reversals.
Dynamic Support & Resistance: This feature relies on consecutive beta counting to dynamically adapt support and resistance levels. These levels are key in predicting potential entry and exit points following the general trend direction.
⚙️ USAGES
Initial Start and Distance: Customize the initial start point and distance for better control over trading strategies. For instance, starting at 1 and using an even distance of 2 will yield odd consecutive counting series;
Phase 1 Completion for Reversal Strategies: This initial phase focuses on identifying short-term reversals;
Phase 2 Completion for Support/Resistance: A support level forms after completing two bullish phases, while a resistance level forms after completing two bearish phases. This structure helps in clarifying trend directions when breakout these key levels.
🔎 BREAKDOWN
Phase 1:
The indicator counts consecutive candles that show a higher Beta than in previous periods over a given length. The completion of countings only succeed when the whole series is uninterruptedly counted, or else countings will be canceled. This strict adherence to consecutive counts serves to ensure that only strong, sustained momentum is recognized and also helps filter out noise, weak signals and establish the initial direction catalyst, setting up for further trend analysis.
Phase 2:
After Phase 1 ends, the Phase 2 counting mechanism begins. This phase focuses on bottom reversals through consecutive higher beta candles, and top reversals by counting lower beta candles. At this stage, interuptions will not cancel the counting process. The ability to continue counting in Phase 2 allows for a broader perspective on market behavior. Even if individual candles do not consistently meet the criteria for consecutive counts, the cumulative effect of higher or lower beta readings over time provides valuable insights into market sentiment and trend direction.
Dynamic Support & Resistance:
After Phase 2 completion, if the average of high, low, and close surpasses both recent support and resistance levels from Phase 2, an uptrend is confirmed, which the support level is displayed. If it drops below these levels, a downtrend is indicated, where resistance is displayed instead of support. The result is displayed through a colored supertrend-line (teal for uptrend, red for downtrend).
DISCLAIMER
This indicator is not financial advice, it can only help traders make better decisions. There are many factors and uncertainties that can affect the outcome of any endeavor, and no one can guarantee or predict with certainty what will occur. Therefore, one should always exercise caution and judgment when making decisions based on past performance.
Engulfing Candles Alert - Multi Symbol (Miu)This indicator plots triangle shapes on each engulfing candles (bullish or bearish) on current chart.
The main use for this indication is to set alerts on multiple symbols at once.
Please follow steps below to set your alarms:
1) Add indicator to the chart
2) Go to settings
3) Check symbols you want to receive alerts (choose up to 8 different symbols)
4) Check if you want only bullish or bearish alerts or both
5) Once all is set go back to the chart and click on 3 dots to set alert in this indicator, rename your alert and confirm
6) You can remove indicator after alert is set and it'll keep working as expected
What does this indicator do?
This indicator will generate alerts anytime a candle closes and reaches bullish or bearish engulfing condition for any of symbol set.
Alert messages example: "Bullish alert on {Symbol}"
This script requests open and close information for each symbol through request.security() built-in function.
Detailed indicator description:
If current bar open is less than or equal to the previous bar close AND current bar open is less than previous bar open AND current bar close is greater than previous bar open THEN True
bullishEngulfing = (openBarCurrent <= closeBarPrevious) and (openBarCurrent < openBarPrevious) and (closeBarCurrent > openBarPrevious)
The opposite condition will be bearishEngulfing
Feel free to give feedbacks on comments section below. Enhancement suggestions are welcome =).
Enjoy!
Qualitative and Quantitative Candlestick Score [CHE] Qualitative and Quantitative Candlestick Score
Overview
The Qualitative and Quantitative Candlestick Score is a powerful indicator for TradingView that combines both qualitative and quantitative analyses of candlestick patterns. This indicator provides traders with a comprehensive assessment of market conditions to make informed trading decisions.
Key Features
- Quantitative Analysis: Calculates a quantitative score based on the price movement of each candle.
- Qualitative Analysis: Evaluates candles based on body size, wick size, trend, and trading volume.
- Cumulative Scores: Displays cumulative green (bullish) and red (bearish) scores over a defined period.
- Trend Analysis: Identifies trend direction, strength, and provides trading recommendations (Long/Short).
- Customizable Settings: Adjust parameters for time periods, thresholds, and volume analysis.
Settings and Customizations
1. Time Period Settings:
- Period: Number of periods to calculate moving averages and cumulative scores (Default: 14).
2. Qualitative Evaluation:
- Body Size Threshold (%): Minimum size of the candle body to be considered significant (Default: 0.5%).
- Wick Size Threshold (%): Maximum size of the wicks to be considered minimal (Default: 0.3%).
3. Volume Settings:
- Include Volume in Evaluation: Whether to include trading volume in the qualitative score (Default: Enabled).
- Volume MA Period: Number of periods to calculate the moving average of volume (Default: 14).
4. Trend Settings:
- Moving Average Length: Number of periods for the Simple Moving Average used to determine the trend (Default: 50).
Calculations and Visualizations
- Quantitative Score: Difference between the closing and opening price, normalized to the opening price.
- Qualitative Score: Evaluation based on body size, wick size, trend, and volume.
- Cumulative Scores: Average of green and red scores over the defined period.
- Score Difference: Difference between cumulative green and red scores to determine trend direction.
- Trend Analysis Table: Displays trend direction, trend strength, and trading recommendation in an easy-to-read table.
Plotting and Display
- Cumulative Scores: Displays cumulative green and red scores in green and red colors.
- Score Difference: Blue line chart to visualize the difference between green and red scores.
- Zero Line: Horizontal gray line as a reference point.
- Trend Analysis Table: Table in the top right of the chart showing current trend direction, strength, and trading recommendation.
Use Cases
- Trend Identification: Use the score difference and trend analysis table to quickly assess the current market sentiment.
- Trading Recommendations: Based on the table, decide whether a long or short entry is appropriate.
- Volume Analysis: Including volume helps to better understand the strength of a trend.
Benefits
- Comprehensive Analysis: Combines quantitative and qualitative methods for a deeper market analysis.
- User-Friendly: Easy parameter adjustments allow for personalized use.
- Visually Appealing: Clear charts and tables facilitate data interpretation.
- Flexible: Adaptable to various trading strategies and timeframes.
Installation and Usage
1. Installation:
- Copy the provided Pine Script code.
- Go to TradingView and open the Pine Script Editor.
- Paste the code and save the script.
- Add the indicator to your chart.
2. Customization:
- Adjust the parameters according to your trading preferences.
- Monitor the cumulative scores and the trend analysis table for trading decisions.
Conclusion
The Qualitative and Quantitative Candlestick Score offers a comprehensive analysis of market conditions by combining quantitative and qualitative evaluation methods. With its user-friendly settings and clear visualizations, this indicator is a valuable tool for traders seeking informed and precise trading decisions.
Best regards and happy trading
Chervolino
Developed by: Chervolino
Version: 1.0
License: Free to use and customize on TradingView.
For any questions or feedback, feel free to contact me through the TradingView community.
Note: This indicator is a tool to assist with trading decisions and does not replace professional financial advice. Use it responsibly and thoroughly test it before incorporating it into your trading strategies.
COT INDEX v2The **Commitment of Traders (COT)** report is a valuable tool for analyzing market sentiment, providing insight into the positions of futures traders at the close of the Tuesday trading session. Prepared by the Commodity Futures Trading Commission (CFTC), the report is published every Friday at 3:30 p.m. Eastern Time, and the data is freely available on the CFTC website.
Traders are categorized into three groups: **Commercial Traders**, **Non-Commercial Traders** (large speculators), and **Nonreportable** (small speculators). This information can be applied to charts to visualize the direction of the positions held by major market participants and to receive key COT signals.
The **COT index** ranges from 0% to 100%, reflecting market sentiment over the past 26 weeks. Extreme values, below 25% or above 75%, represent bearish or bullish sentiment, respectively. However, it is important to note that the COT index is not a timing tool but rather an indicator of the overall sentiment of major market players.
For a more tailored analysis, you can adjust the period for index calculation, customize chart styles, and highlight extreme areas.
MENTFX AVERAGES MULTI TIMEFRAMEThe MENTFX AVERAGES MULTIME TIMEFRAME indicator is designed to provide traders with the ability to visualize multiple moving averages (MAs) from higher timeframes on their current chart, regardless of the chart's timeframe. It combines the power of exponential moving averages (EMAs) to help traders identify trends, spot potential reversal points, and make more informed trading decisions.
Key Features:
Multi-Timeframe Moving Averages: This indicator plots moving averages from daily timeframes directly on your chart, helping you keep track of higher timeframe trends while trading in any timeframe.
Customizable Moving Averages: You can adjust the length and visibility of up to three EMAs (default settings are 5, 10, and 20-period EMAs) to suit your trading style.
Overlay on Price: The indicator is designed to be overlaid on your price chart, seamlessly integrating with your existing analysis.
Simple but Effective: By offering a clear visual guide to where price is trading relative to important higher timeframe levels, this indicator helps traders avoid trading against major trends.
Why It’s Unique:
Validation Timeframe Flexibility: Unlike traditional moving average indicators that only work within the same chart's timeframe, the MENTFX AVERAGES M indicator allows you to pull moving averages from higher timeframes (default: Daily) and overlay them on any chart you're currently viewing, whether it's intraday (minutes) or even weekly. This cross-timeframe visibility is critical in determining the true market trend, adding context to your trades.
Customizability: Although the default settings focus on daily EMAs (5, 10, and 20 periods), traders can modify the parameters, including the type of moving average (Simple, Weighted, etc.), making it adaptable for any strategy. Whether you want shorter-term or longer-term averages, this indicator covers your needs.
Trend Confirmation Tool: The use of multiple EMAs helps traders confirm trend direction and potential price breakouts or reversals. For example, when the shorter-term 5 EMA crosses above the 20 EMA, it can signal a potential bullish trend, while the opposite could indicate bearish pressure.
How This Indicator Helps:
Identify Key Support and Resistance Levels: Higher timeframe moving averages often act as dynamic support and resistance. This indicator helps you stay aware of those critical levels, even when trading lower timeframes.
Trend Identification: Knowing where the market is relative to the 5, 10, and 20 EMAs from a higher timeframe gives you a clearer picture of whether you're trading with or against the prevailing trend.
Improved Decision Making: By aligning your trades with the direction of higher timeframe trends, you can increase your confidence in trade entries and exits, avoiding low-probability setups.
Multi-Market Use: This indicator works well across various asset classes—stocks, forex, crypto, and commodities—making it versatile for any trader.
How to Use:
Intraday Trading: Use the daily EMAs as a guide to see if intraday price movements align with longer-term trends.
Swing Trading: Plot daily EMAs to track the strength of a larger trend, using pullbacks to the moving averages as potential entry points.
Trend Trading: Monitor crossovers between the moving averages to signal potential changes in trend direction.
Default Settings:
5 EMA (Daily) – Blue Line
10 EMA (Daily) – Black Line
20 EMA (Daily) – Red Line
These lines will plot on your chart with a subtle opacity (33%) to ensure they don’t obstruct price action, while still providing crucial visual guidance on market trends.
This indicator is perfect for traders who want to blend technical analysis with multi-timeframe insights, helping you stay in sync with broader market movements while executing trades on any timeframe.
XAU/USD Strategy with Correct ADX and Bollinger Bands Fill1. *Indicators Used*:
- *Exponential Moving Averages (EMAs)*: Two EMAs (20-period and 50-period) are used to identify the trend direction and potential entry points based on crossovers.
- *Relative Strength Index (RSI)*: A momentum oscillator that measures the speed and change of price movements. It identifies overbought and oversold conditions.
- *Bollinger Bands*: These consist of a middle line (simple moving average) and two outer bands (standard deviations away from the middle). They help to identify price volatility and potential reversal points.
- *Average Directional Index (ADX)*: This indicator quantifies trend strength. It's derived from the Directional Movement Index (DMI) and helps confirm the presence of a strong trend.
- *Average True Range (ATR)*: Used to calculate position size based on volatility, ensuring that trades align with the trader's risk tolerance.
2. *Entry Conditions*:
- *Long Entry*:
- The 20 EMA crosses above the 50 EMA (indicating a potential bullish trend).
- The RSI is below the oversold level (30), suggesting the asset may be undervalued.
- The price is below the lower Bollinger Band, indicating potential price reversal.
- The ADX is above a specified threshold (25), confirming that there is sufficient trend strength.
- *Short Entry*:
- The 20 EMA crosses below the 50 EMA (indicating a potential bearish trend).
- The RSI is above the overbought level (70), suggesting the asset may be overvalued.
- The price is above the upper Bollinger Band, indicating potential price reversal.
- The ADX is above the specified threshold (25), confirming trend strength.
3. *Position Sizing*:
- The script calculates the position size dynamically based on the trader's risk per trade (expressed as a percentage of the total capital) and the ATR. This ensures that the trader does not risk more than the specified percentage on any single trade, adjusting the position size according to market volatility.
4. *Exit Conditions*:
- The strategy uses a trailing stop-loss mechanism to secure profits as the price moves in the trader's favor. The trailing stop is set at a percentage (1.5% by default) below the highest price reached since entry for long positions and above the lowest price for short positions.
- Additionally, if the RSI crosses back above the overbought level while in a long position or below the oversold level while in a short position, the position is closed to prevent losses.
5. *Alerts*:
- Alerts are set to notify the trader when a buy or sell condition is met based on the strategy's rules. This allows for timely execution of trades.
### Summary
This strategy aims to capture significant price movements in the XAU/USD market by combining trend-following (EMAs, ADX) and momentum indicators (RSI, Bollinger Bands). The dynamic position sizing based on ATR helps manage risk effectively. By implementing trailing stops and alert mechanisms, the strategy enhances the trader's ability to act quickly on opportunities while mitigating potential losses.
Dynamic Sentiment RSI [UAlgo]The Dynamic Sentiment RSI is a technical analysis tool that combines the classic RSI (Relative Strength Index) concept with dynamic sentiment analysis, offering traders enhanced insights into market conditions. Unlike the traditional RSI, this indicator integrates volume weighting, sentiment factors, and smoothing features to provide a more nuanced view of momentum and potential market reversals. It is designed to assist traders in detecting overbought/oversold conditions, momentum shifts, and to generate potential buy or sell signals using crossover and crossunder techniques. By dynamically adjusting based on sentiment and volume factors, this RSI offers better adaptability to varying market conditions, making it suitable for different trading styles and timeframes.
This tool is particularly helpful for traders who wish to explore not only price movement but also the underlying market sentiment, offering a more comprehensive approach to momentum analysis. The sentiment factor amplifies the RSI's sensitivity to price shifts, making it easier to detect early signals of market reversals or the continuation of a trend.
🔶 Key Features
Dynamic Sentiment Calculation: The indicator incorporates a "Sentiment Factor" that adjusts the RSI length dynamically based on a multiplier, helping traders better understand market sentiment at different time intervals.
Volume Weighting: When enabled, the RSI calculations are weighted by volume, allowing traders to give more importance to price movements with higher trading volume, which may provide more accurate signals.
Smoothing Feature: A customizable smoothing period is applied to the RSI to help filter out noise and make the signal smoother. This feature is particularly useful for traders who prefer to focus on long-term trends while minimizing false signals.
Step Size Customization: A "Step Size" input allows users to round the sentiment RSI to predefined intervals, making the results easier to interpret and act upon. This feature allows you to focus on significant sentiment changes and ignore minor fluctuations.
Crossover/Crossunder Alerts: The indicator includes crossover and crossunder signals on the zero-line, helping traders identify potential buy and sell opportunities as the smoothed RSI crosses these levels.
The indicator offers a clear visual display with multiple color-coded lines and areas:
Sentiment RSI: Plotted as an area chart, color-coded based on sentiment strength.
Raw RSI: A purple line representing the raw adjusted RSI.
Smoothed RSI: A dynamic line, color-coded aqua or orange based on its position relative to the zero line.
Buy/Sell Signals: Triangle shapes are plotted at crossovers and crossunders, providing clear entry and exit points.
🔶 Interpreting the Indicator
Sentiment RSI
-This line represents the sentiment-adjusted RSI, where the higher the value, the stronger the bullish sentiment, and the lower the value, the stronger the bearish sentiment. It is rounded to step intervals, making it easier to detect significant shifts in sentiment.
- A positive sentiment RSI (above 0) suggests bullish market conditions, while a negative sentiment RSI (below 0) suggests bearish conditions.
Smoothed RSI
The smoothed RSI helps reduce noise and shows the trend more clearly.
Crossovers of the zero line are significant:
- Crossover above zero: Indicates that bullish momentum is building, potentially signaling a buying opportunity.
- Crossunder below zero: Signals a shift towards bearish momentum, potentially indicating a sell signal.
Traders should look for these crossovers in conjunction with other signals for more accurate entry/exit points.
Raw RSI (Adjusted)
The raw adjusted RSI offers a less smoothed, more responsive version of the RSI. While it may be noisier, it provides early signals of market reversals and trends.
Crossover/Crossunder Signals
- When the smoothed RSI crosses above the zero line, a "Signal Up" triangle appears, indicating a potential buying opportunity.
- When the smoothed RSI crosses below the zero line, a "Signal Down" triangle appears, signaling a potential sell opportunity.
These signals help traders time their entries and exits by identifying momentum shifts.
Volume Weighting (Optional)
- If volume weighting is enabled, the RSI will give more weight to periods of higher trading volume, making the signals more reliable when the market is highly active.
Strong Up/Down Levels (40/-40)
- These dotted lines represent extreme sentiment levels. When the sentiment RSI reaches 40 or -40, the market may be nearing an overbought or oversold condition, respectively. This could be a signal for traders to prepare for potential reversals or shifts in momentum.
By combining the various components of this indicator, traders can gain a comprehensive view of market sentiment and price action, helping them make more informed trading decisions. The combination of sentiment factors, volume weighting, and smoothing makes this indicator highly flexible and suitable for a variety of trading strategies.
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Options Series - Ichimoku Cloud and HalfTrend
The provided script combines two powerful technical indicators, Ichimoku Cloud and HalfTrend, to create a hybrid trading tool. Here's an analysis of the key components and how they work together:
Ichimoku Cloud and HalfTrend
⭐ 1. Indicator Title and Settings:
The script sets the title as "Options Series - Ichimoku Cloud and HalfTrend" and uses the overlay=true option to display the indicators directly on the price chart.
⭐ 2. Color Definitions:
Several colors are defined for later use:
Green and Red for different types of candles and signals.
Fluorescent Colors for highlighting significant trends or changes in market conditions.
⭐ 3. Ichimoku Cloud Setup:
The Ichimoku Cloud is a comprehensive indicator used to identify support, resistance, and trend direction. Here’s how the script configures it:
Conversion Periods, Base Periods, Lagging Span 2 Periods, and Displacement are customizable via input options, giving flexibility to adjust Ichimoku settings based on different market conditions.
The function donchian(len) calculates the Donchian Channel average, which is used to define the Conversion Line and Base Line. The crossover of these lines is crucial in determining bullish or bearish trends.
Color Logic for Kijun Cross: If the Conversion Line is above the Base Line, the trend is bullish (green color), while a bearish trend is indicated by red. A neutral condition is marked with orange.
⭐ 4. HalfTrend Indicator Setup:
The HalfTrend indicator detects trend reversals based on high/low price deviations from a moving average:
Amplitude and Channel Deviation inputs allow users to control the sensitivity of the indicator.
showArrows and showChannels toggle the display of buy/sell arrows and trend channels.
maxLowPrice and minHighPrice variables are initialized to track significant high/low points during the trend, used to confirm trend reversals.
⭐ 5. ATR and Trend Calculations:
The Average True Range (ATR) is used to calculate the volatility-based channels. The script calculates atr2 and uses this to create atrHigh and atrLow for plotting the channel.
The trend detection logic is as follows:
When the trend is upward, the script seeks confirmation by comparing the high moving average with previous lows, signaling a continuation of the uptrend if it holds.
Conversely, a downtrend is confirmed when the low moving average exceeds previous highs.
⭐ 6. Customized Candle Coloring:
A custom color scheme is applied to candles based on a combination of trend direction and Ichimoku Cloud signals:
GreenFluorescent for strong bullish conditions where price is above the HalfTrend line, and the Conversion Line is above the Base Line.
RedFluorescent for strong bearish conditions, with price below the HalfTrend line and Conversion Line below the Base Line.
Gray for neutral or indecisive conditions.
⭐ 7. Plots and Shapes:
The script plots various elements:
HalfTrend Line: The main trendline is plotted in either green (buy) or red (sell), with adjustable line width.
Ichimoku Base Line: This is plotted with the dynamic color based on crossovers.
Buy/Sell Arrows: These are drawn on the chart when valid buy/sell conditions are met.
Custom Candles: The script overrides default chart candles with custom-colored candles based on the previously discussed logic.
⭐ 8. Improvements:
Optimization: Parameters like the amplitude, channel deviation, and Ichimoku periods can be fine-tuned based on backtesting results to maximize performance for specific assets or timeframes.
Alerts: The script could be enhanced by adding alert conditions for real-time buy/sell notifications, leveraging alertcondition() in Pine Script.
In summary, this script merges two trend-following techniques for a multi-faceted view of the market, using visual cues and trendline logic to provide a robust trading tool.
🚀 Conclusion:
Trend-Following System: The combination of Ichimoku Cloud and HalfTrend provides a comprehensive view of both long-term trends (via Ichimoku) and shorter-term reversals (via HalfTrend).
Visual Signals: The script includes clear visual signals (arrows and custom-colored candles) to help traders quickly spot buy/sell opportunities.
Dynamic Customization: Through user inputs, this indicator can be tailored to different market conditions, making it versatile.
Advanced MA Difference (and more)This Pine Script indicator calculates the difference between the price and a main moving average (SMA or EMA), allowing you to track deviations in either absolute or relative (percentage) terms. It offers several features to help visualize and smooth this difference:
- Main MA Difference: Shows the price deviation from the moving average, either as an absolute dollar amount or as a percentage.
- Fast and Slow Moving Averages: Optionally smooths the difference using fast and slow moving averages, giving insights into short-term and long-term trends in price deviations.
- Difference Between Fast and Slow MAs : Highlights the gap between these MAs, helping to identify momentum shifts.
- Customizable Visuals: Offers flexibility in displaying the difference and moving averages using lines or histograms, and includes a zero line for reference.
When to Use It:
- Use the absolute difference for tracking raw price deviations if you’re focused on concrete moves in the asset’s price.
- Use the relative difference for normalized, percentage-based deviations, especially useful when comparing different assets or time frames.
This indicator is suitable for traders looking to spot trends, price deviations, or momentum shifts relative to a moving average. Its flexibility makes it a good fit for both short-term and long-term analysis.
Price vs 200 EMA IndicatorPurpose :
The Price vs. 200 MA (EMA) Indicator measures the deviation of the current price from its 200-period Exponential Moving Average (EMA). Instead of merely plotting the raw difference, the indicator calculates a standardized difference (similar to a z-score), which quantifies the deviation in terms of standard deviations over time. This helps traders understand how extreme the price is relative to its long-term average and its typical volatility.
Use Cases :
Trend Analysis:
Traders can use the standardized difference to assess how extreme the current price is relative to its long-term trend (200 EMA) while normalizing for volatility.
When the z-score approaches extreme levels (e.g., above 2 or below -2), it may indicate that the asset is overextended in either direction.
Mean Reversion Strategy:
Since the indicator identifies when the price deviates far from the 200 EMA (in terms of standard deviations), traders can use it to time mean-reversion trades, buying when the price is below -2 (oversold) and selling when it’s above +2 (overbought).
Trend Continuation or Exhaustion:
If the price continues to stay above +2 for extended periods, it could indicate a strong trend, whereas a reversion toward the EMA after reaching +2 or -2 could signal trend exhaustion or reversal.
Summary :
The Price vs. 200 MA (EMA) Indicator calculates the standardized difference (z-score) between the price and its 200-period EMA, giving traders a normalized measure of how far the price is from its long-term average, relative to typical price volatility. The color-coded plot provides a clear visual representation of potential overbought/oversold conditions and highlights when the price has deviated significantly from the 200 EMA in either direction.
