Support and Resistance (High Volume Boxes) [ChartPrime]Support and Resistance (High Volume Boxes)
◆ Overview:
The "Support and Resistance" indicator identifies key support and resistance levels using pivot points and volume analysis. It visually represents these levels with dynamically colored boxes, indicating the strength of the volume. This helps traders recognize potential price reversals and key zones for buy and sell opportunities.
◆ Key Features:
Dynamic Support and Resistance Boxes:
The indicator plots support and resistance boxes based on pivot points and volume above threshold for positive volume boxes and below lower threshold for negative volume boxes.
Box colors change from transparent to more intense based on volume, reflecting the strength of support or resistance.
Boxes expands until a new box of the same type appears.
Volume-Based Color Coding:
Boxes are color-coded based on the amount of volume:
Green boxes indicate support levels with positive volume.
Red boxes indicate resistance levels with negative volume.
Hold Signals:
Green diamonds (◆) indicate when support holds, signaling potential buy opportunities.
Red diamonds (◆) indicate when resistance holds, signaling potential sell opportunities.
Breakout Labels:
If the price falls below a support level, that level will become resistance. If the price rises above a resistance level, it will often become support. As the price moves past a level of support or resistance, it is thought that supply and demand has shifted, causing the breached level to reverse its role.
Labels "Break Sup" and "Break Res" are displayed when support or resistance levels are broken, indicating significant market movements.
◆ Break Resistance:
◆Break Support:
◆ Usage Notes:
This indicator helps traders identify strong support and resistance levels, offering visual cues for potential price reversals.
By analyzing volume at these levels, traders can gauge the strength of these zones and make more informed trading decisions.
◆ Settings:
Lookback Period: The number of bars to look back for pivot points.
Delta Volume Filter Length: The length of the volume filter for more accurate volume analysis. (Higher input, will filter low volume boxes)
Adjust Box Width: Adjusts the width of the support and resistance boxes.
This indicator is designed to enhance your trading by providing clear visual cues for support and resistance levels based on volume, making it easier to spot potential price reversals and key trading opportunities.
Трендовый анализ
Quantiple Direction IndexThis indicator indicates market trends by analyzing the following signals:
1. RSI which is a momentum oscillator
2. Directional Movement Index (DMI) which measures the direction of the movement
3. Price in comparison to EMA 13 and 21 to determine whether the trend is clear or there is an ambiguity
4. ADX that shows the strength of the momentum
Scoring logic
While we have kept the source code open which gives the scoring logic, for ease of the user, I am summarizing the scoring logic
A. We break down RSI and DMI into a 9 point scale (-4 to +4) from extremely bearish to bullish. Then we give equal weight to both and come out with a direction score.
B. We use EMA to determine if their is clarity in the price trend. While the direction is deduced from point A, if there is clarity we know that the confidence on the direction is high. If EMA 13 is higher than EMA 21 and the price is above EMA 13, then we assign it as a score of +1 as we get clear bullish trend. Similarly if EMA 13 is below EMA 21 and the price is below both the EMAs then we assign it a score of -1 as we get clear bearish trend. Anything else is considered as inconclusive and given a score of 0
C. We use ADX to determine the strength of the directional momentum. It is like acceleration. We use ADX score as an strength adjustment factor. If the value is above 25 - we multiply A+B by 1.25. Similarly we multiply it by 0.75 if the strength is weak and no change if the strength is neutral.
Finally this indicator categorizes market direction into five levels:
- Very Bullish
- Bullish
- Neutral
- Bearish
- Very Bearish
Scores range from +6 (very bullish) to -6 (very bearish), with the user setting thresholds for each category. The midpoint between Bullish and Bearish defines the neutral zone.
Again all the exact values are in the code and the user can also customize as per their trading system.
Why does it make sense to combine these different indicators rather than looking at them in isolation?
We give equal weight to RSI and DMI to derive the direction of the price movement. Using two different indicators provide a better confirmation on the direction. However, this alone is not sufficient.
We want clarity of the direction and for that we use the EMA score (please refer to point B above). If we have clarity, the probability of the direction being right goes up.
Once we know the direction, we want to know what is the strength of that direction. This point is very valuable for an option trader. This is where this indicator brings value.
Please note that by looking at these indicators in isolation one can get a sense of direction or a sense of strength of the direction. But, when you combine them, you get whether the direction move is with strength or not. If you are into option trading, you will clearly understand the rational behind it when you look at the trading rules provided in this description. For example if one knows that the direction is bullish (which one can potentially get from RSI or DMI), one can either buy a call or sell a put. But one knows that not only the direction is bullish, but it has the right acceleration (strength of the momentum), then one will assign higher probability of higher profit from buying call than from selling put.
To summarize we have combined indicators to achieve the following
1. Get confirmation from two different indicators on the direction of the price movement (RSI and DMI)
2. Confirm that the direction is clear (Price relative to EMA)
3. Combine with the strength of the direction (ADX)
Direction, clarity of the direction and the strength of the directional movement is a valuable trading indicator in our opinion.
Suggested trading rules
1. Short strangle strategy when the trend is neutral with one's usual option selling quantity. Equal quantity on put and call.
2. Full quantity short put and half quantity short call when the trend is bullish.
3. Full quantity short put and call long when the indicator is very bullish.
4. Vice versa for bearish ( full call short, half put short) and very bearish (full call short, put long)
Suggested to use 5 min timeframe for scalping, 15 min for intraday positions, 1 hour for weekly and monthly positions, and daily/weekly for investments.
The value of this indicator oscillates between +6 to -6. You can tweak the range for V bullish, bullish, bearish, and v bearish. The values in between will default to the neutral zone.
Disclaimers:
1. While the creator has used this in the live market, no claim is being made on its effectiveness or profit making ability. Please use it for trading only after you have tested it and are satisfied.
2. There may be thousands or millions of better trader in this world than the creator of this script. The creator makes no claim of his intelligence or trading ability.
3. The creator has no intention of selling this particular script now or in future. This is purely for community use and there's no intention to make any monetary profit from it.
4. The creator is not requesting or soliciting anyone to like or promote this script. The creator is also not asking anyone to give him any business now or in future even if they like this script and benefit from it.
TrendzonesHi all!
This indicator plots trendlines. These lines are not plotted as traditional lines, but are instead zones. This is useful if you think that trend lines are more of an area of importance than a line.
It does so by finding pivots and connecting two of them if they have not been broken (more about that later) in-between the pivots.
These trend zones can be used as support/resistance that the price can react to.
• The first trendline is drawn between the high/low of the first and second pivot.
• The second trendline's first point is at the open/close of the pivot (either the first pivot or the second one) that has the smallest difference between the high/low and the nearest open/close. The same difference (between the high/low and the open/close) is then subtracted from the other pivot's high/low. This creates a point at the other pivot bar. A trendline is then drawn between the points.
This creates two trendlines and a zone between the two trendlines. This zone is the one kept and is shown by the script.
You can define the pivot lengths used to find trend zones (defaults to 3/3). You can also define the number of pivots to look back for, to find trend zones and the number of active zones, both of these defaults to 3. You can also choose to let the script create new zones based on time ("Oldest") or the zone that is furthest away in price, this defaults to be based on time but it can be useful for letting the script remove the one which is furthest away in price. Another useful setting is the one called "Cross source". This defines the price that has to cross the trend zone to make it invalid (broken). This defaults to "Close", i.e. the bar has to close on the "wrong side" of the trend zone.
The current zones are shown with an extension to the right, but you can also choose to keep the previous lines (without extension). Please note that kept zones are only the ones that are broken, not the replaced ones. I.e. the zones that are kept are the ones that are crossed by the user defined "cross source" (defaults to the closing/current price of the bar).
Hope this makes sense, let me know if you have any questions.
Best of trading luck!
EMA Trend Arrows Indicator### EMA Trend Arrows Indicator
**Description:**
The "EMA Trend Arrows Indicator" is designed to help traders identify bullish and bearish trends based on the Exponential Moving Average (EMA). This indicator plots arrows and lines on the chart, signaling potential trend changes, making it easier for users to spot entry and exit points in their trades.
**Indicator Features:**
1. **EMA Calculation:**
- The indicator calculates the Exponential Moving Average (EMA) over a user-defined period (`Length`).
- The default length is set to 50 periods but can be adjusted to suit different trading strategies.
2. **Trend Detection:**
- The indicator detects bullish trends when the EMA is falling for a specified duration (`Trend Duration`) and then starts rising.
- Conversely, it detects bearish trends when the EMA is rising for a specified duration and then starts falling.
- The default trend duration is set to 20 periods.
3. **Visual Signals:**
- **Bullish Signal:** When a bullish trend is detected, the indicator plots a blue upward arrow (▲) above the bar where the trend change is identified.
- **Bearish Signal:** When a bearish trend is detected, the indicator plots a red downward arrow (▼) below the bar where the trend change is identified.
- Additionally, lines are drawn to indicate the strength and duration of the trends. Blue lines represent bullish trends, while red lines represent bearish trends.
4. **Average True Range (ATR):**
- The indicator utilizes the Average True Range (ATR) to determine the placement of the lines and arrows, ensuring they are appropriately scaled to the price movements.
5. **EMA Plotting:**
- The EMA line is plotted on the chart in a grey color, allowing users to visualize the moving average alongside the trend signals.
6. **Chart Clarity:**
- To maintain a clear and uncluttered chart, the indicator automatically deletes past trend direction signals once a new trend is detected. This ensures that only the most relevant and current trend signals are displayed.
**User Inputs:**
- `Length`: Defines the period for EMA calculation. Default is 50.
- `Trend Duration`: Sets the duration to consider for trend changes. Default is 20.
- `Bullish`: Sets the color for bullish signals. Default is blue (#2962ff).
- `Bearish`: Sets the color for bearish signals. Default is red (#f23645).
- `MA`: Sets the color for the EMA line. Default is grey (#787b86).
**How to Use:**
- Add the "EMA Trend Arrows Indicator" to your chart.
- Configure the `Length` and `Trend Duration` based on your trading strategy.
- Observe the chart for blue upward arrows indicating potential buy signals and red downward arrows indicating potential sell signals.
- Use the plotted EMA line to gauge the overall market trend and make more informed trading decisions.
**Benefits:**
- Simplifies trend detection by providing clear visual signals.
- Helps traders identify potential entry and exit points.
- Customizable settings to fit various trading strategies.
- Maintains a clean chart by automatically removing outdated trend direction signals.
**Example:**
When applied to a daily chart, the indicator can help identify major trend reversals, providing traders with timely buy and sell signals. For instance, a blue arrow appearing after a period of EMA decline signals a potential buying opportunity as the trend shifts to bullish.
Add this indicator to your TradingView chart today to enhance your trend analysis and improve your trading performance.
Best regards Chervolino
Trend Momentum Strength Indicator, Built for Pairs TradingOverview:
This script combines multiple indicators to provide a comprehensive analysis of both trend strength and trend momentum. It is tailored specifically for pairs trading strategies but can also be used for other trading strategies.
Benefit of Comprehensive Analysis:
Having an indicator that evaluates both trend strength and trend momentum is crucial for traders looking to make informed decisions. It allows traders to not only identify the direction and intensity of a trend but also gauge the momentum behind it. This dual capability helps in confirming potential trade opportunities, whether for entering trades with strong trends or considering reversals during overbought or oversold conditions. By integrating both aspects into one tool, traders can gain a holistic view of market dynamics, enhancing their ability to time entries and manage risk effectively.
Features:
* Trend Strength:
Enhanced ADX Formula: The script includes modifications to the standard ADX formula along with DI+ and DI- to provide more responsive trend strength readings.
Directional Indicators: DI+ (green line) indicates positive directional movement, while DI- (red line) indicates negative directional movement.
Trend Momentum:
Modified Stochastic Indicators: The script uses %K and %D indicators, modified and combined with ADX to give a clear indication of trend momentum.
Momentum Strength: This helps determine the strength and direction of the momentum.
Trading Signals:
Combining Indicators: The script combines ADX, DI+, DI-, %K, and %D to generate comprehensive trading signals.
Optimal Entry Points: Designed to identify optimal entry points for trades, particularly in pairs trading.
Colored Area at Bottom:
This area provides two easy-to-read functions:
Color:
Green: Upward momentum (ratio above 1)
Red: Downward momentum (ratio below 1)
Height:
Higher in green: Stronger upward momentum
Lower in red: Stronger downward momentum
Legend:
Green Line: DI+ (Positive)
Red Line: DI- (Negative)
Black Line: ADX
How to Read This Indicator:
1) Trend Direction:
DI+ above DI-: Indicates an upward trend.
DI- above DI+: Indicates a downward trend.
2) Trend Strength:
ADX below 20: Indicates a neutral trend.
ADX between 20 and 25: Indicates a weak trend.
ADX above 25: Indicates a strong trend.
Trading Signals in Pairs Trading:
Neutral Trend: Ideal for pairs trading when no strong trend is detected.
Overbought/Oversold: Uses %K and %D to identify overbought/oversold conditions that support trade decisions.
Entry Signals: Green signals for long positions, red signals for short positions, based on combined criteria of neutral trend strength and supportive momentum.
Application in Pairs Trading:
Neutral trend: In pairs trading strategies, where neutral movement is often sought, this indicator provides signals that are especially relevant during periods of neutral trend strength and supportive momentum, aiding traders in identifying optimal entry
Risk Management: Combining signals from ADX, DI+, DI-, %K, and %D helps traders make more informed decisions regarding entry points, enhancing risk management.
Example Chart (The indicator is on the upper right corner):
Clean Presentation: The chart only includes the necessary elements to demonstrate the indicator’s functionality.
Demonstrates: Overbought/oversold conditions, upward/downward/no momentum, and trading signals with/without specific scenarios.
Combined IndicatorSummary
This custom Pine Script combines three main indicators into one, each with its own functionalities and visual cues. It provides a comprehensive approach to trend analysis by integrating short-term, medium-term, and long-term indicators. Each part of the indicator can be toggled on or off independently to suit the trader’s needs.
Part 1: EMA 14 and EMA 200
Purpose: This part of the indicator is designed to identify short-term and long-term trends using Exponential Moving Averages (EMA). It helps traders spot potential entry and exit points based on the relationship between short-term and long-term moving averages.
Visuals:
• EMA 14: Plotted in blue (#2962ff)
• EMA 200: Plotted in red (#f23645)
Signals:
• Long Signal: Generated when EMA 14 crosses above EMA 200, indicating a potential upward trend.
• Short Signal: Generated when EMA 14 crosses below EMA 200, indicating a potential downward trend.
Usage: Toggle this part on or off using the checkbox input to focus on short-term vs. long-term trends.
Part 2: EMA 9 and SMA 20
Purpose: This part combines Exponential and Simple Moving Averages to provide a medium-term trend analysis. It helps smooth out price data and identify potential trend reversals and continuation patterns.
Visuals:
• EMA 9: Plotted in green
• SMA 20: Plotted in dark red
Usage: Toggle this part on or off using the checkbox input to focus on medium-term trends and price smoothing.
Part 3: Golden Cross and Death Cross
Purpose: This part identifies long-term bullish and bearish market conditions using the 50-day and 200-day Simple Moving Averages (SMA). It highlights major trend changes that can inform long-term investment decisions.
Visuals:
• 50-day SMA: Plotted in gold (#ffe600)
• 200-day SMA: Plotted in black
Signals:
• Golden Cross: Generated when the 50-day SMA crosses above the 200-day SMA, indicating a potential long-term upward trend.
• Death Cross: Generated when the 50-day SMA crosses below the 200-day SMA, indicating a potential long-term downward trend.
Usage: Toggle this part on or off using the checkbox input to focus on long-term trend changes.
How to Use
1. Enable/Disable Indicators: Use the checkboxes provided in the input settings to enable or disable each part of the indicator according to your analysis needs.
2. Interpret Signals: Look for crossover events to determine potential entry and exit points based on the relationship between the moving averages.
3. Visual Confirmation: Use the color-coded lines and shape markers on the chart to visually confirm signals and trends.
4. Customize Settings: Adjust the lengths of the EMAs and SMAs in the input settings to suit your trading strategy and the specific asset you are analyzing.
Practical Application
• Short-Term Trading: Use the EMA 14 and EMA 200 signals to identify quick trend changes.
• Medium-Term Trading: Use the EMA 9 and SMA 20 to capture medium-term trends and reversals.
• Long-Term Investing: Monitor the Golden Cross and Death Cross signals to make decisions based on long-term trend changes.
Example of Unique Features
• Integrated Toggle System: Allows users to enable or disable specific parts of the indicator to customize their analysis.
• Multi-Tier Trend Analysis: Combines short-term, medium-term, and long-term indicators to provide a comprehensive view of the market.
Unlocking the Power of Long Candle MidpointI'm excited to share with you a fascinating concept that can help you identify potential breakout points in the market.
The Pine Script code provided below is designed to identify the midpoint of a long candle, which can be a crucial level for traders to watch.
In this blog post, we'll dive deeper into the concept, explore its applications, and analyze a real-life example of TATACHEM listed on NSE, which is currently trading around a potential psychology line.
What is the Long Candle Midpoint?
The long candle midpoint is a technical indicator that calculates the midpoint of a candlestick that has a significant price movement. This midpoint is then used to draw a horizontal line, which can serve as a potential support or resistance level. The idea is that if a candlestick has a large price movement, it's likely that the market will react to this movement by testing the midpoint of the candle.
How Does the Long Candle Midpoint Indicator Work?
The Pine Script code provided above is designed to calculate the midpoint of a long candle based on the following parameters:
Length: The length of the candlestick is calculated using the len input parameter.
Line Length: The length of the line is calculated using the linExt input parameter.
Calculation Method: The calculation method can be set to either "Highest True Range", "Average True Range", or "Both".
Multiplier: The multiplier is used to adjust the midpoint calculation based on the average range of the candlestick.
The script then plots a horizontal line at the midpoint of the long candle, which can be used as a potential support or resistance level.
Real-Life Example:
Let's take a look at TATACHEM, a stock listed on the National Stock Exchange of India (NSE). As you can see in the chart below,
TATACHEM has been trading around a potential psychology line drawn from the midpoint of a large candle.
As you can see, the stock has previously failed to break above this line, but it's currently trading around it. This could be a sign that the market is preparing for a potential breakout. If the stock can break above this line, it could lead to a bullish rally.
Conclusion
The long candle midpoint indicator is a powerful tool that can help traders identify potential breakout points in the market. By analyzing the midpoint of a long candle, traders can gain insights into the market's sentiment and potential areas of support or resistance.
In the case of TATACHEM, the stock is currently trading around a potential psychology line, which could be a sign of a potential breakout. Traders can consider this point in their watch list for a potential entry. Tips for Traders
Use the long candle midpoint indicator in conjunction with other technical indicators to gain a more comprehensive understanding of the market.
Look for confirmation from other indicators before entering a trade.
Set stop-loss and take-profit levels based on the potential breakout point.
Monitor the market closely and be prepared to adjust your strategy if the market doesn't behave as expected.
By incorporating the long candle midpoint indicator into your trading strategy, you can gain an edge in the market and make more informed trading decisions.
Ratio Chart with GMMA■About this indicator
This indicator divides the selected stocks by any stocks you specify and plots the result in a new pane.
At the same time, it plots the GMMA against the result of the division.
This allows you to see the relative chart and trend of the selected stock and the arbitrary stock.
Quote Symbol: Specify the denominator of the division. The default is TOPIX. Feel free to change it.
EMA Days: 5 to 30 days are indicated in green, and 75 to 200 days in red. Change the number of days and color freely.
Explanation of Effective Usage
It is recommended to enter an index for stocks specified in the Quote Symbol.
By entering the index, you can check the superiority of the selected issue and the index at a glance.
Example: By dividing AAPL by SP500, you can see on the chart whether AAPL is stronger or weaker relative to SP500.
(Similar concept to the Relative Strength Comparison RSC.)
At the same time, by plotting GMMA, you can confirm the trend of strength or weakness of the selected issue divided by the index. This is useful for swing trading and mid- to long-term trading.
The greater the distance between the short-term and long-term EMAs of the GMMA, the more the selected stocks outperform the index, and when the short-term and long-term EMAs cross, the trend ends and the stock underperforms the index.
■About the Chart
The screen below shows a chart plotted using this indicator.
For comparison with the regular chart, the upper screen shows only the GMMA plotted for the selected stocks.
From the red circle in the lower screen, a trend begins where the selected stocks outperform the index, and the trend ends at the blue circle.
When the trend ends, the selected stocks will underperform the index and it can be determined that it is more efficient to invest in another stock.
■このインジケーターについて
このインジケーターは選択している銘柄を、指定した任意の銘柄で割り算し、その結果を新規ペインにプロットします。
同時に、割り算の結果に対してGMMAをプロットします。
これにより選択した銘柄と、任意の銘柄の相対チャートとトレンドを把握することが出来ます。
Quote Symbol：割り算の分母を指定します。デフォルトはTOPIXです。自由に変更して下さい。
EMA日数：5～30日が緑、75～200日を赤で表記しています。日数と色は自由に変更して下さい。
■有効な使い方の説明
Quote Symbolで指定する銘柄は、指数を入力することを推奨します。
指数を入力することによって、選択した銘柄と指数の優位性を一目で確認出来ます。
例）AAPLをSP500で割ることで、SP500に比べてAAPLが相対的に強いのか、弱いのかをチャートで把握できます。
（相対力比較RSCと似たような考え方です。）
同時にGMMAをプロットすることで、選択した銘柄÷指数の強弱のトレンドを確認できます。これはスイングトレードや中長期トレードに役立ちます。
GMMAの短期EMAと長期EMAの距離が開いていくほど、指数より選択した銘柄がアウトパフォームしていると考えられ、短期EMAと長期EMAが交わるとトレンドは終了し、指数をアンダーパフォームします。
■チャートについて
下の画面がこのインジケーターを使用してプロットしたチャートです。
通常のチャートとの比較のため、上画面には選択した銘柄にGMMAだけをプロットしたものを表示しています。
下の画面の赤い丸から、選択した銘柄が指数をアウトパフォームするトレンドが始まり、青い〇でトレンドは終了します。
トレンドが終了した場合、選択した銘柄は指数をアンダーパフォームするので、別の銘柄に投資する方が効率的と判断できます。
Fair Value Gaps Setup 01 [TradingFinder] FVG Absorption + CHoCH🔵 Introduction
🟣 Market Structures
Market structures exhibit a fractal and nested nature, which leads us to classify them into internal (minor) and external (major) categories. Definitions of market structure vary, with different methodologies such as Smart Money and ICT offering distinct interpretations.
To identify market structure, the initial step involves examining key highs and lows. An uptrend is characterized by successive highs and lows that are higher than their predecessors. Conversely, a downtrend is marked by successive lows and highs that are lower than their previous counterparts.
🟣 Market Trends and Movements
Market trends consist of two primary types of movements :
Impulsive Movements : These movements align with the main trend and are characterized by high strength and momentum.
Corrective Movements : These movements counter the main trend and are marked by lower strength and momentum.
🟣 Break of Structure (BOS)
In a downtrend, a Break of Structure (BOS) occurs when the price falls below the previous low and establishes a new low (LL). In an uptrend, a BOS, also known as a Market Structure Break (MSB), happens when the price rises above the last high.
To confirm a trend, at least one BOS is necessary, which requires the price to close at least one candle beyond the previous high or low.
🟣 Change of Character (CHOCH)
Change of Character (CHOCH) is a crucial concept in market structure analysis, indicating a shift in trend. A trend concludes with a CHOCH, also referred to as a Market Structure Shift (MSS).
For example, in a downtrend, the price continues to drop with BOS, showcasing the trend's strength. However, when the price rises and exceeds the last high, a CHOCH occurs, signaling a potential transition from a downtrend to an uptrend.
It is essential to note that a CHOCH does not immediately indicate a buy trade. Instead, it is prudent to wait for a BOS in the upward direction to confirm the uptrend. Unlike BOS, a CHOCH confirmation does not require a candle to close; merely breaking the previous high or low with the candle's wick is sufficient.
🟣 Spike | Inefficiency | Imbalance
All these terms mean fast price movement in the shortest possible time.
🟣 Fair Value Gap (FVG)
To pinpoint the "Fair Value Gap" (FVG) on a chart, a detailed candle-by-candle analysis is necessary. This process involves focusing on candles with substantial bodies and evaluating them in relation to the candles immediately before and after them.
Here are the steps :
Identify the Central Candle : Look for a candle with a large body.
Examine Adjacent Candles : The candles before and after this central candle should have long shadows, and their bodies must not overlap with the body of the central candle.
Determine the FVG Range : The distance between the shadows of the first and third candles defines the FVG range.
This method helps in accurately identifying the Fair Value Gap, which is crucial for understanding market inefficiencies and potential price movements.
🟣 Setup
This setup is based on Market Structure and FVG. After a change of character and the formation of FVG in the last lag of the price movement, we are looking for trading positions in the price pullback.
Bullish Setup :
Bearish Setup :
🔵 How to Use
After forming the setup, you can enter the trade using a pending order or after receiving confirmation. To increase the probability of success, you can adjust the pivot period market structure settings or modify the market movement coefficient in the formation leg of the FVG.
Bullish Setup :
Bearish Setup :
🔵 Setting
Pivot Period of Market Structure Detector :
This parameter allows you to configure the zigzag period based on pivots. Adjusting this helps in accurately detecting order blocks.
Show major Bullish ChoCh Lines :
You can toggle the visibility of the Demand Main Zone and "ChoCh" Origin, and customize their color as needed.
Show major Bearish ChoCh Lines :
Similar to the Demand Main Zone, you can control the visibility and color of the Supply Main Zone and "ChoCh" Origin.
FVG Detector Multiplier Factor :
This feature lets you adjust the size of the moves forming the Fair Value Gaps (FVGs) using the Average True Range (ATR). The default value is 1, suitable for identifying most setups. Adjust this value based on the specific symbol and market for optimal results.
FVG Validity Period :
This parameter defines the validity period of an FVG in terms of the number of candles. By default, an FVG remains valid for up to 15 candles, but you can adjust this period as needed.
Mitigation Level FVG :
This setting establishes the basic level of an FVG. When the price reaches this level, the FVG is considered mitigated.
Level in Low-Risk Zone :
This feature aims to reduce risk by dividing the FVG into two equal areas: "Premium" (upper area) and "Discount" (lower area). For lower risk, ensure that "Demand FVG" is in the "Discount" area and "Supply FVG" in the "Premium" area. This feature is off by default.
Show or Hide :
Given the potential abundance of setups, displaying all on the chart can be overwhelming. By default, only the last setup is shown, but you can enable the option to view all setups.
Alert Settings :
On / Off : Toggle alerts on or off.
Message Frequency : Determine how often alerts are triggered.
Options include :
"All" (alerts every time the function is called)
"Once Per Bar" (alerts only on the first call within the bar)
"Once Per Bar Close" (alerts only at the last script execution of the real-time bar upon closing)
The default setting is "Once Per Bar".
Show Alert Time by Time Zone : Set the alert time based on your preferred time zone, such as "UTC-4" for New York time. The default is "UTC".
Display More Info : Optionally show additional details like the price range of the order blocks and the date, hour, and minute in the alert message. Set this to "Off" if you prefer not to receive this information.
Wave Consolidation [LuxAlgo]The Wave Consolidation indicator uses market profiles to highlight consolidation zones based on upward and downward moves determined when a Higher-High or Lower-Low is created.
Users can control the amount of consolidation zones to display and the sensitivity of the swing point detection used to return those zones.
🔶 USAGE
These zones are intended as areas of interest to traders where price has seen historical interactions, which can be interpreted as support and resistance. By identifying these areas of interest before the price returns to them, traders are able to anticipate and prepare for various scenarios and respond dynamically to the behavior of the market, as seen below.
Rejection: A quick move away from the zone may indicate that the area is either overvalued or undervalued, leading to a fast movement in the opposite direction.
Breakthrough: Moving beyond a zone could indicate acceptance at that specific price, potentially signaling a shift in momentum or the start of a new trend. In a strong major trend, zones created from smaller trends could be used as price targets for taking profit and managing risk.
Consolidation: Holding these zones might suggest a market in balance at these levels, this could lead to opportunities for range-bound trading.
Below is an example of the Rejection and Consolidation scenarios described above.
Note: By analyzing the tests and retests of these zones, traders can also gain further insight into where participants are interacting in the market.
🔶 DETAILS
The full process for acquiring and managing these zones is described in the sub-sections below.
🔹 Creation
By only considering market movements creating a higher-high or lower-low, we can identify meaningful, directional, moves which can then be used to calculate zones.
Once a move is identified, the script calculates a volume profile spanning the length of the given move.
The width of the zones is determined starting from the POC of the profile and expanding outwards until the value of the profile's row falls below the profile's average.
Note: By increasing the "Multiplier" Input, Users can increase the threshold the script uses to determine zone width in multiples of Standard Deviations above the Average.
While this area is similar to a VP Value Area, it is not intended to replicate a value zone. The calculation is not concerned with capturing any % of the total profile's volume within the zone and only analyzes based on a fixed inclusion threshold.
🔹 Management
To keep clutter to a minimum, If a new zone overlaps a recently created zone, the zones are grouped as one. This is especially helpful in areas where prices are ranging, creating multiple zones in a very similar area.
Zones before management:
Zones after management:
🔹 Deletion
Just because a zone is crossed, does not make it immediately unimportant!
Once a Zone is mitigated (crossed in the opposite direction of its bias) it is reduced to a single dotted line representing the outer threshold for the zone. These lines are important to watch, as the price will often retest a break. For this reason, they will stay on the chart until the next swing point is detected when they will finally be deleted for good.
Below is an example of activity around a broken zone before it is deleted.
Below is the same example 2bBars later , once the new swing is confirmed, the dotted lines are deleted and new zones are created.
Notice how the newly formed resistance zone is in the same area where we noticed sellers previously.
🔶 SETTINGS
🔹 Structure
Display Structure: Determines if swing structures are displayed.
Structure Length: Sets Length for structure identification.
🔹 Zones
Volume-Based Calculations: Opt to use a "Volume" based Profile Calculation instead of the default "Price Action" based Calculation.
Display Count: Sets the specific number of bullish and bearish zones to display on the chart.
Multiplier: Sets the multiplier to use for the value cut-off for determining zone boundaries.
🔹 Style
Display Average Lines: Toggles on/off the average (mid) lines for the zones.
Liquidity Swings [UAlgo]The "Liquidity Swings " indicator is designed to help traders identify liquidity swings within the market. This tool is particularly useful for visualizing areas where liquidity is accumulating and where it is being swept, providing valuable insights for making informed trading decisions. By tracking the pivots in price and associating them with volume, the indicator highlights zones of potential support and resistance, helping traders understand market dynamics more clearly.
🔶 Key Features
Liquidity Swing Sensitivity: Adjustable sensitivity settings to fine-tune the detection of liquidity swings according to market conditions and trader preferences.
Two modes of liquidity calculation:
Cumulative Liquidity: Aggregates unswept liquidity over multiple swings until it is swept, providing a broader view of liquidity accumulation.
Individual Liquidity: Displays the accumulated liquidity for each swing independently, offering a more granular perspective.
Visual Customization: Options to customize the colors and sizes of liquidity lines, areas, and informational text for better visual clarity.
Dynamic Updates: The indicator dynamically updates liquidity zones and labels, adjusting to new market data to keep traders informed in real-time.
🔶 Disclaimer
The "Liquidity Swings " indicator is provided for educational and informational purposes only.
It should not be considered as financial advice or a recommendation to buy or sell any financial instrument.
The use of this indicator involves inherent risks, and users should employ their own judgment and conduct their own research before making any trading decisions. Past performance is not indicative of future results.
🔷 Related Scripts
Liquidity Sweeps
Williams %R Liquidity Sweeps
Initial Balance [UkutaLabs]█ OVERVIEW
The Initial Balance Indicator is a powerful trading tool that indicates a strong range based on the high and low of the first hour after market open. This range serves as a potential area of Support or Resistance that traders should be aware of during their trading. Because of this, the Initial Balance Indicator is a versatile trading tool that can be included in a wide variety of trading strategies.
The aim of this script is to simplify the trading experience of users by automatically identifying and displaying price levels that they should be aware of.
█ USAGE
When the New York Market opens each day, the script will automatically identify and label the opening range of the first hour of the trading day in real time.
Because there tends to be a spike in volume during this period, the range that is identified can serve as a powerful indication of overall market strength. Once the price breaks out of this range, it then can be used as an area of support or resistance depending on the direction of the breakout.
█ SETTINGS
Configuration
• Display Mode: Determines the number of days that the script should load.
• Show Labels: Determines whether identifying labels are drawn on the chart as well.
• Initial Balance Color: Determines the color of the range and labels that are drawn by the indicator.
• Extension Levels: Determines the number of extension levels that should be drawn on either side of the range. These levels are drawn at an interval of half the width of the Initial Balance range.
• Extension Levels Color: Determines the color of the extension level lines.
Dickey-Fuller Test for Mean Reversion and Stationarity **IF YOU NEED EXTRA SPECIAL HELP UNDERSTANDING THIS INDICATOR, GO TO THE BOTTOM OF THE DESCRIPTION FOR AN EVEN SIMPLER DESCRIPTION**
Dickey Fuller Test:
The Dickey-Fuller test is a statistical test used to determine whether a time series is stationary or has a unit root (a characteristic of a time series that makes it non-stationary), indicating that it is non-stationary. Stationarity means that the statistical properties of a time series, such as mean and variance, are constant over time. The test checks to see if the time series is mean-reverting or not. Many traders falsely assume that raw stock prices are mean-reverting when they are not, as evidenced by many different types of statistical models that show how stock prices are almost always positively autocorrelated or statistical tests like this one, which show that stock prices are not stationary.
Note: This indicator uses past results, and the results will always be changing as new data comes in. Just because it's stationary during a rare occurrence doesn't mean it will always be stationary. Especially in price, where this would be a rare occurrence on this test. (The Test Statistic is below the critical value.)
The indicator also shows the option to either choose Raw Price, Simple Returns, or Log Returns for the test.
Raw Prices:
Stock prices are usually non-stationary because they follow some type of random walk, exhibiting positive autocorrelation and trends in the long term.
The Dickey-Fuller test on raw prices will indicate non-stationary most of the time since prices are expected to have a unit root. (If the test statistic is higher than the critical value, it suggests the presence of a unit root, confirming non-stationarity.)
Simple Returns and Log Returns:
Simple and log returns are more stationary than prices, if not completely stationary, because they measure relative changes rather than absolute levels.
This test on simple and log returns may indicate stationary behavior, especially over longer periods. (The test statistic being below the critical value suggests the absence of a unit root, indicating stationarity.)
Null Hypothesis (H0): The time series has a unit root (it is non-stationary).
Alternative Hypothesis (H1): The time series does not have a unit root (it is stationary)
Interpretation: If the test statistic is less than the critical value, we reject the null hypothesis and conclude that the time series is stationary.
Types of Dickey-Fuller Tests:
1. (What this indicator uses) Standard Dickey-Fuller Test:
Tests the null hypothesis that a unit root is present in a simple autoregressive model.
This test is used for simple cases where we just want to check if the series has a consistent statistical property over time without considering any trends or additional complexities.
It examines the relationship between the current value of the series and its previous value to see if the series tends to drift over time or revert to the mean.
2. Augmented Dickey-Fuller (ADF) Test:
Tests for a unit root while accounting for more complex structures like trends and higher-order correlations in the data.
This test is more robust and is used when the time series has trends or other patterns that need to be considered.
It extends the regular test by including additional terms to account for the complexities, and this test may be more reliable than the regular Dickey-Fuller Test.
For things like stock prices, the ADF would be more appropriate because stock prices are almost always trending and positively autocorrelated, while the Dickey-Fuller Test is more appropriate for more simple time series.
Critical Values
This indicator uses the following critical values that are essential for interpreting the Dickey-Fuller test results. The critical values depend on the chosen significance levels:
1% Significance Level: Critical value of -3.43.
5% Significance Level: Critical value of -2.86.
10% Significance Level: Critical value of -2.57.
These critical values are thresholds that help determine whether to reject the null hypothesis of a unit root (non-stationarity). If the test statistic is less than (or more negative than) the critical value, it indicates that the time series is stationary. Conversely, if the test statistic is greater than the critical value, the series is considered non-stationary.
This indicator uses a dotted blue line by default to show the critical value. If the test-static, which is the gray column, goes below the critical value, then the test-static will become yellow, and the test will indicate that the time series is stationary or mean reverting for the current period of time.
What does this mean?
This is the weekly chart of BTCUSD with the Dickey-Fuller Test, with a length of 100 and a critical value of 1%.
So basically, in the long term, mean-reversion strategies that involve raw prices are not a good idea. You don't really need a statistical test either for this; just from seeing the chart itself, you can see that prices in the long term are trending and no mean reversion is present.
For the people who can't understand that the gray column being above the blue dotted line means price doesn't mean revert, here is a more simple description (you know you are):
Average (I have to include the meaning because they may not know what average is): The middle number is when you add up all the numbers and then divide by how many numbers there are. EX: If you have the numbers 2, 4, and 6, you add them up to get 12, and then divide by 3 (because there are 3 numbers), so the average is 4. It tells you what a typical number is in a group of numbers.
This indicator checks if a time series (like stock prices) tends to return to its average value or time.
Raw prices, which is just the regular price chart, are usually not mean-reverting (It's "always" positively autocorrelating but this group of people doesn't like that word). Price follows trends.
Simple returns and log returns are more likely to have periods of mean reversion.
How to use it:
Gray Column (the gray bars) Above the Blue Dotted Line: The price does not mean revert (non-stationary).
Gray Column Below Blue Line: The time series mean reverts (stationary)
So, if the test statistic (gray column) is below the critical value, which is the blue dotted line, then the series is stationary and mean reverting, but if it is above the blue dotted line, then the time series is not stationary or mean reverting, and strategies involving mean reversion will most likely result in a loss given enough occurrences.
Cumulative Volume Delta (MTF)Cumulative Volume Delta (CVD) Indicator
The Cumulative Volume Delta (CVD) indicator is a powerful analytical tool used to understand the behavior and dynamics of market participants through volume analysis. It tracks the net difference between buying and selling pressure, providing insights into market trends and potential reversals. Here's a detailed description of this indicator and its components:
The Cumulative Volume Delta (CVD) indicator calculates the cumulative net difference between buying and selling volume over a specified period. By analyzing this net difference, traders can gain insights into the underlying strength or weakness of a price movement, helping to identify trends, reversals, and potential breakout points.
Key Components:
Bull & Bear Power Calculation:
Bull Power: Represents the strength of buyers in the market. It is calculated based on the relationship between the current and previous price bars. A higher Bull Power indicates stronger buying pressure.
Bear Power: Represents the strength of sellers in the market. It is also calculated based on the relationship between the current and previous price bars. A higher Bear Power indicates stronger selling pressure.
Bull & Bear Volume Calculation:
Bull Volume: The volume attributed to buying pressure. It is calculated by taking the proportion of Bull Power relative to the total of Bull Power and Bear Power, multiplied by the total volume.
Bear Volume: The volume attributed to selling pressure. It is calculated similarly to Bull Volume but using Bear Power.
Delta Calculation:
Delta: The net difference between Bull Volume and Bear Volume for each bar. A positive Delta indicates more buying pressure, while a negative Delta indicates more selling pressure.
Cumulative Volume Delta (CVD):
CVD: The running total of the Delta values over time. It accumulates the net buying and selling pressure to provide a visual representation of the market's cumulative sentiment.
Moving Average of CVD (CVD MA):
CVD MA: A simple moving average of the CVD, used to smooth out fluctuations and help identify the overall trend. It provides a baseline to compare the current CVD value against, highlighting divergences or convergences.
Multi-Timeframe Functionality:
The enhanced version of the CVD indicator includes multi-timeframe (MTF) capabilities, allowing users to select and analyze data from different timeframes. This feature enhances the versatility of the indicator by providing a broader perspective on market dynamics across various time intervals.
Practical Applications:
Trend Identification: By tracking the CVD and its moving average, traders can identify the prevailing trend. An upward-sloping CVD indicates sustained buying pressure, while a downward-sloping CVD indicates sustained selling pressure.
Divergences: Divergences between the CVD and price can signal potential reversals. For example, if the price is making new highs but the CVD is not, it may indicate weakening buying pressure and a potential reversal.
Breakout Confirmation: Significant changes in the CVD can confirm breakouts. A sharp increase in the CVD during a price breakout indicates strong buying support, adding confidence to the breakout.
Support and Resistance Levels: The CVD can help identify significant support and resistance levels based on changes in volume dynamics. For instance, a notable increase in buying volume at a support level can reinforce its strength.
Swing Failure Zones and Signals [AlgoAlpha]Elevate your trading strategy with the Swing Failure Zones and Signals indicator by AlgoAlpha! This powerful tool helps you identify potential swing failure zones, offering clear bullish and bearish signals to guide your trading decisions. 📈💡
🎨 Bullish/Bearish Color Customization : Easily set the colors for bullish and bearish signals to match your chart preferences.
🧹 Mitigated Zone Removal : Option to remove mitigated zones from the chart for a cleaner view.
🔍 Range High/Low Lookback : Adjustable lookback period for determining significant highs and lows.
🖌 Dynamic Zone Creation : Automatically draws zones based on swing failure criteria.
🔔 Alert Conditions : Set alerts for both bullish and bearish swing failure conditions to stay informed without constant monitoring.
Quick Guide to Using the Swing Failure Zones and Signals Indicator
🛠 Add the Indicator : Search for "Swing Failure Zones and Signals " in TradingView's Indicators & Strategies. Customize settings like lookback period, colors, and zone removal options to fit your trading style.
📊 Market Analysis : Watch for the appearance of the zones and the directional arrows for potential reversal signals. Use these signals to identify key market entries and exits.
🔔 Alerts : Enable alerts for bullish and bearish swing failure conditions to capture trading opportunities without constant chart monitoring.
How it works
The indicator calculates the direction and length of each candle to identify swing failure points by comparing current high and low prices with those from the lookback period. A bullish swing failure is detected when the current low is lower than the previous low and the close is higher than the previous high, while a bearish swing failure occurs when the current high is higher than the previous high and the close is lower than the previous low. Upon detection, the script creates zones on the chart to indicate these failure points and manages them by removing invalidated zones based on the user's settings. Visual signals are plotted on the chart as arrows, and alerts are set for these conditions to help traders capture potential entry opportunities efficiently.
Enhance your trading edge with this robust tool designed to spotlight critical swing failure points in the market! 💪📈
Pivot Levels [UkutaLabs]█ OVERVIEW
The Pivot Levels Indicator provides real-time insight into key price levels within the market that can serve as powerful support and resistance levels. These levels are based on currently-relevant price-action information to ensure that the lines being drawn provide the most value to traders regardless of their trading style.
The aim of this script is to simplify the trading experience of users by automatically identifying and displaying price levels that they should be aware of.
█ USAGE
At the beginning of each trading day, the script will identify the previous day’s hlc3 level. We refer to this level as the day’s Source Level, and it is from this price that the other Resistance and Support levels are calculated.
The script then identifies the total price range of the previous day (Previous Day High - Previous Day Low), then draws Resistance and Support lines based on the Source Level and the previous day’s range.
The script identifies these levels on both sides of the Source. Levels above the Source are considered to be points of Resistance and below the Source are considered to be Support, but the levels are free to be interpreted and used in whatever way fits the user’s trading strategy.
A label is drawn at the end of each line that identifies the line and whether it represents support or resistance. These labels can be disabled in the settings.
█ SETTINGS
Configuration
• Show Labels: Determines whether or not labels are displayed at the end of each line.
• Display Mode: Determines the number of days for the script to load.
Line Settings
• Resistance Color: Determines the color of the resistance lines and labels above the Source Level.
• Source Color: Determines the color of the source line and label.
• Support Color: Determines the color of the support lines and labels below the Source Level.
• Line width: Determines the width of lines.
• Line Style: Determines the style of lines.
Psychological Levels [UkutaLabs]█ OVERVIEW
The Psychological Levels Indicator provides real-time insight into key price levels within the market that can serve as powerful support and resistance levels. These levels are updated automatically in real time to display only the most relevant levels to the current price, facilitating your trading experience.
The aim of this script is to simplify the trading experience of users by automatically identifying and displaying price levels that they should be aware of.
█ USAGE
On each tick, the nearest key price level is automatically identified by the script. The script will identify this level based on the price of the commodity you are applying it to:
• Commodities priced at $0 to $999.99 will identify the nearest whole dollar.
• Commodities priced at $1,000 to $9,999.99 will identify the nearest $10.
• Commodities priced at $10,000 to $99,999.99 will identify the nearest $100.
• Commodities priced over $100,000 will identify the nearest $1,000.
We refer to this rounding price as the gap price, and it is also used to determine the prices of the other lines drawn by this script.
After identifying the nearest key price level, the script then incrementally draws lines on either side of this level at an interval of the gap price. We refer to these as the Major Lines, and the user can control the number of these lines that get drawn, the style of these lines, and they can be disabled in the settings.
The script then draws lines at the half-way point between each of these Major Lines, and we refer to these as the Minor Lines. Like the Major Lines, the user has full control over the number of these lines that can be drawn, the style of these lines, and they can be disabled in the settings.
█ SETTINGS
Configuration
• Number of Lines: Determines the number of lines that are drawn on either side of the key price line. This controls both the number of Major Lines and Minor Lines.
Line Settings
• Major Lines: Determines whether or not the Major Lines will be displayed.
- Color: Determines the color of Major Lines.
- Style: Determines the style of Major Lines.
- Width: Determines the width of Major Lines
• Minor Lines: Determines whether or not the Minor Lines will be displayed.
- Color: Determines the color of Minor Lines
- Style: Determines the style of Minor Lines
- Width: Determines the width of Minor Lines
Opening Range Breakout [UkutaLabs]█ OVERVIEW
The Opening Range Breakout is a powerful trading tool that indicates a strong range based on the high and low of the first fifteen or thirty minutes after market open. This range serves as a potential area of Support or Resistance that traders should be aware of during their trading. Because of this, the Opening Range Breakout is a versatile trading tool that can be included in a wide variety of trading strategies.
The aim of this script is to simplify the trading experience of users by automatically identifying and displaying price levels that they should be aware of.
█ USAGE
When the New York Market opens each day, the script will automatically identify and label the opening range in real time. The user can control whether the script measures the first 15 or 30 minutes of each trading day to fit each trader’s trading style.
Because there tends to be a spike in volume during this period, the range that is identified can serve as a powerful indication of overall market strength. Once the price breaks out of this range, it then can be used as an area of support or resistance depending on the direction of the breakout.
█ SETTINGS
Configuration
• Show Labels: Determines whether labels are drawn within the range.
• Display Mode: Determines the number of days the script should load.
Range Settings
• 15 Minute: Determines whether or not the 15 minute range is drawn.
• 15 Minute Color: Determines the color of the 15 minute range and labels.
• 30 Minute: Determines whether or not the 30 minute range is drawn.
• 30 Minute Color: Determines the color of the 30 minute range and labels.
Open High Low Close [UkutaLabs]█ OVERVIEW
The Open High Low Close indicator is a powerful trading tool which generates resistance and support levels based on the previous day’s Open, High, Low and Close prices. These levels may act as strong levels of support and resistance, granting traders insight into key price levels.
The aim of this script is to simplify the trading experience of users by automatically identifying and displaying price levels that they should be aware of.
█ USAGE
At the beginning of each trading day, the script will automatically identify the previous day’s high, low, open and close prices. After identifying these levels, the script will then display them as a line on the chart.
Each line also has a label at the end indicating which level it represents. These labels can be toggled in the indicator's settings.
These levels are based on relevant price-action information and may serve as potentially powerful Support and Resistance levels that can be included in a variety of trading strategies.
█ SETTINGS
Configuration
• Show Labels: Determines whether or not identification labels are drawn on each line.
• Display Mode: Determines the number of days the script should load.
• OHLC Color: Determines the color of the lines and labels.
Fibonacci Pivot Levels [UkutaLabs]█ OVERVIEW
The Fibonacci Pivot Levels Indicator provides real-time insight into key price levels within the market that can serve as powerful support and resistance levels. These levels are based on currently-relevant price-action information as well as key Fibonacci ratios to ensure that the lines being drawn provide the most value to traders regardless of their trading style.
The Fibonacci levels are a powerful form of technical analysis that allows traders to predict future potential price support and resistance levels.
The aim of this script is to simplify the trading experience of users by automatically identifying and displaying price levels that they should be aware of.
█ USAGE
At the beginning of each trading day, the script will identify the previous day’s hlc3 level. We refer to this level as the day’s Source Level, and it is from this price that the other Resistance and Support levels are calculated.
The script then identifies the total price range of the previous day (Previous Day High - Previous Day Low), then incrementally draws lines at a distance of the previous day’s range multiplied by key Fibonacci ratios from the Source Level.
The script identifies these levels on both sides of the Source. Levels above the Source are considered to be points of Resistance and below the Source are considered to be Support, but the levels are free to be interpreted and used in whatever way fits the user’s trading strategy.
A label is drawn at the end of each line that displays the Fibonacci ratio that was used to calculate it as well as the price that the line represents. These labels can be disabled in the settings.
█ SETTINGS
Configuration
• Display Mode: Determines how many days the script will draw lines for.
• Show Labels: Determines whether or not labels are drawn at the end of each line.
Line Colors
• Resistance Color: Determines the color of Resistance Lines drawn above the Source.
• Source Color: Determines the color of the Source Line.
• Support Color: Determines the color of Support Lines drawn below the Source.
Line Settings
• Line Width: Determines the width of all lines.
• Line Style: Determines the style of all lines.
Premarket Levels [UkutaLabs]█ OVERVIEW
The Premarket Levels indicator measures the premarket high and low of any given market. The Premarket Levels creates potential strong resistance and support levels based on the premarket high and low which traders can use to gauge the market outlook ahead of the regular open.
The aim of this script is to simplify the trading experience of users by automatically identifying and displaying price levels that they should be aware of.
█ USAGE
At the beginning of the New York Session of each trading day at 1:30pm UTC time, this script will automatically identify the High and Low prices since the market opened at 10:00pm the night before. This happens automatically and in real time, ensuring that traders have access to this information as soon as the market is open.
These lines will extend until the end of the trading day, and also contain labels that display the price of each line. These labels can be disabled in the indicator's settings.
These levels indicate the total range of the market for that day until the open of the New York Session, and can be treated as levels of Support and Resistance after the market has opened.
█ SETTINGS
Configuration
• Show Labels: Determines whether labels are drawn within the range.
• Display Mode: Determines the number of days the script should load.
Range Settings
• High Color: Determines the color of the high lines and labels.
• Low Color: Determines the color of the low lines and labels.
Persistent Homology Based Trend Strength OscillatorPersistent Homology Based Trend Strength Oscillator
The Persistent Homology Based Trend Strength Oscillator is a unique and powerful tool designed to measure the persistence of market trends over a specified rolling window. By applying the principles of persistent homology, this indicator provides traders with valuable insights into the strength and stability of uptrends and downtrends, helping to inform better trading decisions.
What Makes This Indicator Original?
This indicator's originality lies in its application of persistent homology , a method from topological data analysis, to financial markets. Persistent homology examines the shape and features of data across multiple scales, identifying patterns that persist as the scale changes. By adapting this concept, the oscillator tracks the persistence of uptrends and downtrends in price data, offering a novel approach to trend analysis.
Concepts Underlying the Calculations:
Persistent Homology: This method identifies features such as clusters, holes, and voids that persist as the scale changes. In the context of this indicator, it tracks the duration and stability of price trends.
Rolling Window Analysis: The oscillator uses a specified window size to calculate the average length of uptrends and downtrends, providing a dynamic view of trend persistence over time.
Threshold-Based Trend Identification: It differentiates between uptrends and downtrends based on specified thresholds for price changes, ensuring precision in trend detection.
How It Works:
The oscillator monitors consecutive changes in closing prices to identify uptrends and downtrends.
An uptrend is detected when the closing price increase exceeds a specified positive threshold.
A downtrend is detected when the closing price decrease exceeds a specified negative threshold.
The lengths of these trends are recorded and averaged over the chosen window size.
The Trend Persistence Index is calculated as the difference between the average uptrend length and the average downtrend length, providing a measure of trend persistence.
How Traders Can Use It:
Identify Trend Strength: The Trend Persistence Index offers a clear measure of the strength and stability of uptrends and downtrends. A higher value indicates stronger and more persistent uptrends, while a lower value suggests stronger and more persistent downtrends.
Spot Trend Reversals: Significant shifts in the Trend Persistence Index can signal potential trend reversals. For instance, a transition from positive to negative values might indicate a shift from an uptrend to a downtrend.
Confirm Trends: Use the Trend Persistence Index alongside other technical indicators to confirm the strength and duration of trends, enhancing the accuracy of your trading signals.
Manage Risk: Understanding trend persistence can help traders manage risk by identifying periods of high trend stability versus periods of potential volatility. This can be crucial for timing entries and exits.
Example Usage:
Default Settings: Start with the default settings to get a feel for the oscillator’s behavior. Observe how the Trend Persistence Index reacts to different market conditions.
Adjust Thresholds: Fine-tune the positive and negative thresholds based on the asset's volatility to improve trend detection accuracy.
Combine with Other Indicators: Use the Persistent Homology Based Trend Strength Oscillator in conjunction with other technical indicators such as moving averages, RSI, or MACD for a comprehensive analysis.
Backtesting: Conduct backtesting to see how the oscillator would have performed in past market conditions, helping you to refine your trading strategy.
Market Sentiment Technicals [LuxAlgo]The Market Sentiment Technicals indicator synthesizes insights from diverse technical analysis techniques, including price action market structures, trend indicators, volatility indicators, momentum oscillators, and more.
The indicator consolidates the evaluated outputs from these techniques into a singular value and presents the combined data through an oscillator format, technical rating, and a histogram panel featuring the sentiment of each component alongside the overall sentiment.
🔶 USAGE
The Market Sentiment Technicals indicator is a tool able to swiftly and easily gauge market sentiment by consolidating the individual sentiment from multiple technical analysis techniques applied to market data into a single value, allowing users to asses if the market is uptrending, consolidating, or downtrending.
The tool includes various components and presentation formats, each described in the sub-sections below.
🔹Indicators Sentiment Panel
The indicators sentiment panel provides normalized sentiment scores for each supported indicator, along with a synthesized representation derived from the average of all individual normalized sentiments.
🔹Market Sentiment Meter
The market sentiment meter is obtained from the synthesized representation derived from the average of all individual normalized sentiments. It allows users to quickly and easily gauge the overall market sentiment.
🔹Market Sentiment Oscillator
The market sentiment oscillator provides a visual means to monitor the current and historical strength of the market. It assists in identifying the trend direction, trend momentum, and overbought and oversold conditions, aiding in the anticipation of potential trend reversals.
Divergence occurs when there is a difference between what the price action is indicating and what the market sentiment oscillator is indicating, helping traders assess changes in the price trend.
🔶 DETAILS
The indicator employs a range of technical analysis techniques to interpret market data. Each group of indicators provides valuable insights into different aspects of market behavior.
🔹Momentum Indicators
Momentum indicators assess the speed and change of price movements, often indicating whether a trend is strengthening or weakening.
Relative Strength Index (RSI): Measures the magnitude of recent price changes to evaluate overbought or oversold conditions.
Stochastic %K: Compares the closing price to the range over a specified period to identify potential reversal points.
Stochastic RSI Fast: Combines features of Stochastic oscillators and RSI to gauge both momentum and overbought/oversold levels efficiently.
Commodity Channel Index (CCI): Measures the deviation of an asset's price from its statistical average to determine trend strength and overbought and oversold conditions.
Bull Bear Power: Evaluates the strength of buying and selling pressure in the market.
🔹Trend Indicators
Trend indicators help traders identify the direction of a market trend.
Moving Averages: Provides a smoothed representation of the underlying price data, aiding in trend identification and analysis.
Bollinger Bands: Consists of a middle band (typically a simple moving average) and upper and lower bands, which represent volatility levels of the market.
Supertrend: A trailing stop able to identify the current direction of the trend.
Linear Regression: Fits a straight line to past data points to predict future price movements and identify trend direction.
🔹Market Structures
Market Structures: Analyzes the overall pattern of price movements, including Break of Structure (BOS), Market Structure Shifts (MSS), also referred to as Change of Character (CHoCH), aiding in identifying potential market turning and continuation points.
🔹The Normalization Technique
The normalization technique employed for trend indicators relies on buy-sell signals. The script tracks price movements and normalizes them based on these signals.
normalize(buy, sell, smooth)=>
var os = 0
var float max = na
var float min = na
os := buy ? 1 : sell ? -1 : os
max := os > os ? close : os < os ? max : math.max(close, max)
min := os < os ? close : os > os ? min : math.min(close, min)
ta.sma((close - min)/(max - min), smooth) * 100
In this Pine Script snippet:
The variable os tracks market sentiment, taking a value of 1 for buy signals and -1 for sell signals, indicating bullish and bearish sentiments, respectively.
max and min are used to identify extremes in sentiment and are updated based on changes in os . When market sentiment shifts from buying to selling (or vice versa), max and min adjust accordingly.
Normalization is achieved by comparing current price levels to historical extremes in sentiment. The result is smoothed by default using a 3-period simple moving average. Users have the option to customize the smoothing period via the script settings input menu.
🔶 SETTINGS
🔹Generic Settings
Timeframe: This option selects the timeframe for calculating sentiment. If a timeframe lower than the chart's is chosen, calculations will be based on the chart's timeframe.
Horizontal Offset: Determines the distance at which the visual components of the indicator will be displayed from the primary chart.
Gradient Colors: Allows customization of gradient colors.
🔹Indicators Sentiment Panel
Indicators Sentiment Panel: Toggle the visibility of the indicators sentiment panel.
Panel Height: Determines the height of the panel.
🔹Market Sentiment Meter
Market Sentiment Meter: Toggle the visibility of the market sentiment meter (technical ratings in the shape of a speedometer).
🔹Market Sentiment Oscillator
Market Sentiment Oscillator: Toggle the visibility of the market sentiment oscillator.
Show Divergence: Enables detection of divergences based on the selected option.
Oscillator Line Width: Customization option for the line width.
Oscillator Height: Determines the height of the oscillator.
🔹Settings for Individual Components
In general,
Source: Determines the data source for calculations.
Length: The period to be used in calculations.
Smoothing: Degree of smoothness of the evaluated values.
🔹Normalization Settings - Trend Indicators
Smoothing: The period used in smoothing normalized values, where normalization is applied to moving averages, Bollinger Bands, Supertrend, VWAP bands, and market structures.
🔶 LIMITATIONS
Like any technical analysis tool, the Market Sentiment Technicals indicator has limitations. It's based on historical data and patterns, which may not always accurately predict future market movements. Additionally, market sentiment can be influenced by various factors, including economic news, geopolitical events, and market psychology, which may not be fully captured by technical analysis alone.
