Zero-lag Volatility-Breakout EMA Trend StrategyThis is a simple volatility-breakout strategy which uses the difference in two different zero-lag* EMAs (explained below on what exactly I mean by this) to track the upwards or downwards strength of an instrument. When the difference breaks above a Bollinger Band of a configurable standard deviation multiple, the strategy enters based off the direction of the base EMA used (i.e. if the difference breaks above and the current EMA is rising, a long entry is produced. If the difference breaks above and the current EMA is falling, a short entry is produced).
The two EMA-type metrics used to calculate the volatility difference are calculated by the following formula:
top_ema = math.max(src, ta.ema(src, length))
bottom_ema = math.min(src, ta.ema(src, length))
ema_difference = (top_ema - bottom_ema) - 1
This produces a difference which responds immediately to large price movements, instead of lagging if it used strictly the EMA itself.
SETTINGS
Source : The source of the strategy - close, hlc3, another indicator plot, etc.
EMA Difference Length : The length of both the EMA difference statistics and the base EMA used to calculate the entry side.
Standard Deviation Multiple : The Bollinger Bands multiple used when the difference is breaking out.
Use Binary Strategy : The strategy has two configurations: Binary and Rapid-Exit. 'Binary' means that it will not close a long position until a short position is generated, and vice-versa. 'Rapid-Exit' will close a long or short position once the difference reaches the middle Bollinger Band MA. This means that turning on 'Binary' will expose you to more market risk, but potentially greater market return. Turning off 'Binary' will exit quickly and reduce drawdown.
The strategy results below use 10% equity and 0.1% fees per trade.
Волатильность
Squeeze & Release [AlgoAlpha]Introduction:
💡The Squeeze & Release by AlgoAlpha is an innovative tool designed to capture price volatility dynamics using a combination of EMA-based calculations and ATR principles. This script aims to provide traders with clear visual cues to spot potential market squeezes and release scenarios. Hence it is important to note that this indicator shows information on volatility, not direction.
Core Logic and Components:
🔶EMA Calculations: The script utilizes the Exponential Moving Average (EMA) in multiple ways to smooth out the data and provide indicator direction. There are specific lengths for the EMAs that users can modify as per their preference.
🔶ATR Dynamics: Average True Range (ATR) is a core component of the script. The differential between the smoothed ATR and its EMA is used to plot the main line. This differential, when represented as a percentage of the high-low range, provides insights into volatility.
🔶Squeeze and Release Detection: The script identifies and highlights squeeze and release scenarios based on the crossover and cross-under events between our main line and its smoothed version. Squeezes are potential setups where the market may be consolidating, and releases indicate a potential breakout or breakdown.
🔶Hyper Squeeze Detection: A unique feature that detects instances when the main line is rising consistently over a user-defined period. Hyper squeeze marks areas of extremely low volatility.
Visual Components:
The main line (ATR-based) changes color depending on its position relative to its EMA.
A middle line plotted at zero level which provides a quick visual cue about the main line's position. If the main line is above the zero level, it indicates that the price is squeezing on a longer time horizon, even if the indicator indicates a shorter-term release.
"𝓢" and "𝓡" characters are plotted to represent 'Squeeze' and 'Release' scenarios respectively.
Standard Deviation Bands are plotted to help users gauge the extremity and significance of the signal from the indicator, if the indicator is closer to either the upper or lower deviation bands, this means that statistically, the current value is considered to be more extreme and as it is further away from the mean where the indicator is oscillating at for the majority of the time. Thus indicating that the price has experienced an unusual amount or squeeze or release depending on the value of the indicator.
Usage Guidelines:
☝️Traders can use the script to:
Identify potential consolidation (squeeze) zones.
Gauge potential breakout or breakdown scenarios (release).
Fine-tune their entries and exits based on volatility.
Adjust the various lengths provided in the input for better customization based on individual trading styles and the asset being traded.
HL range by durgaThe script we've been working on is an indicator designed to display the high-low range of the last candlestick on a TradingView chart. It does so by plotting two lines: one for the high and another for the low of the last completed candlestick.
Additionally, the script includes a label that shows the numerical value of the high-low range. This label is positioned between the plotted lines, showing the difference between the high and low prices of the last candlestick.
The script operates in real-time, updating dynamically as new candlesticks form. Furthermore, it automatically removes the label after the close of the candlestick, maintaining a clean and clutter-free chart.
This indicator can help traders quickly visualize and assess the range of the last completed candlestick, aiding in their analysis of price action.
Open Interest OscillatorIn the middle of a bustling cryptocurrency market, with Bitcoin navigating a critical phase and the community hype over potential ETF approvals, current funding rates, and market leverage, the timing is optimal to harness the capabilities of sophisticated trading tools.
Meet the Open Interest Oscillator – special indicator tailored for the volatile arena of cryptocurrency trading. This powerful instrument is adept at consolidating open interest data from a multitude of exchanges, delivering an in-depth snapshot of market sentiment across all timeframes, be it a 1-minute sprint or a weekly timeframe.
This versatile indicator is compatible with nearly all cryptocurrency pairs, offering an expansive lens through which traders can gauge the market's pulse.
Key Features:
-- Multi-exchange Data Aggregation: This feature taps into the heart of the crypto market by aggregating open interest data from premier exchanges such as BINANCE, BITMEX, BITFINEX, and KRAKEN. It goes a step further by integrating data from various pairs and stablecoins, thus providing traders with a rich, multi-dimensional view of market activities.
-- Open Interest Bars: Witness the flow of market dynamics through bars that depict the volume of positions being opened or closed, offering a clear visual cue of trading behavior. In this mode, If bars are going into negative zone, then traders are closing their positions. If they go into positive territory - leveraged positions are being opened.
-- Bollinger Band Integration: Incorporate a layer of statistical analysis with standard deviation calculations, which frame the open interest changes, giving traders a quantified edge to evaluate the market's volatility and momentum.
-- Oscillator with Customizable Thresholds: Personalize your trading signals by setting thresholds that resonate with your unique trading tactics. This customization brings the power of tailored analytics to your strategic arsenal.
-- Max OI Ceiling Setting: In the fast-paced crypto environment where data can surge to overwhelming levels, the Max OI Ceiling ensures you maintain a clear view by capping the open interest data, thus preserving the readability and interpretability of information, even when market activity reaches feverish heights.
Relative Strength Trend Indicator (RSTI)This indicator is called the "Relative Strength Trend Indicator" (RSTI), designed to assess the relative strength of a trend.
Here is a detailed explanation of how it works and how traders can interpret it:
Indicator Operation:
1. Data Source (src): The indicator considers a data source, typically the closing price (close), but this can be adjusted according to the trader's preferences.
2. Period Length (Length): This determines the period used to calculate the simple moving average (SMA) of the data source. A longer period smoothes the indicator, while a shorter period makes it more responsive.
3. Multiplier (Multiplier): This is a multiplication factor applied to the Average True Range (ATR), adjusting the width of the bands.
4. Signal Length (Signal Length): This period is used to calculate the simple moving average of the relative strength (l_strength). It determines the sensitivity of the signal to changes in relative strength.
Interpretation of the Indicator:
1. Upper Strength Band (Upper Level): This line is drawn at 80 and represents a high strength level. When relative strength exceeds this value, it may indicate a potential overbought market.
2. Lower Strength Band (Lower Level): This line is drawn at 20 and represents a low strength level. When relative strength is below this value, it may indicate a potential oversold market.
3. RSTI Strength: The main line of the indicator, representing the calculated relative strength. When this line exceeds 50, it may indicate an uptrend, while a value below 50 may indicate a downtrend.
4. Filling Zones: These colored zones between levels 80 and 50, and between 50 and 20, can help quickly visualize relative strength. A colored zone above 50 indicates positive strength, while a colored zone below 50 indicates negative strength.
Qualities of the Indicator:
1. Adaptability: The use of ATR and the flexibility of parameters (length, multiplier, signal_length) allow the indicator to adapt to different market conditions.
2. Visual Clarity: Colored filling zones and horizontal lines make it easy to visualize relative strength levels.
3. Strength Signal: The signal line (RSTI Strength) allows traders to quickly spot changes in relative strength, facilitating decision-making.
4. Responsiveness: The combination of smoothed moving averages and relative strength indicators allows responsiveness to trend changes while reducing false signals.
It is essential to note that while this indicator can provide valuable insights, it is always recommended to use it in conjunction with other technical analysis tools for informed decision-making.
ROC & EMAIn summary, this allows you to plot the ROC, its EMA, and dynamically display the value of this EMA on the chart.
You can configure different lengths and colors.
Unpretentious code, just for the pleasure of sharing.
Thank you for sharing your comments with me, which will be welcome.
FX DispersionThis script calculates the dispersion of a basket of 5 FX pairs and then calculates the z-score the z-score is then made into a composite using the 30 and 60 ema of the z-score to smooth any noise. It must be used on one of the FX pairs in the basket and on the 1-minute timeframe as it has been hardcoded for 1 min use below.
Interpretation - Dispersion is a component of volatility - the dispersion of the underlying basket increases above 0.5 and decreases below 0.5.
Although increased dispersion is beneficial to momentum and trend-following strategies on the monthly and weekly timeframes. Observe this on the 1-minute timeframe and how dispersion crossing above/ below 0.5 it can signal reversion or momentum for the next period.
ADX Thrust Reversal & Trend
Created by Love Sharma, CMT, CFTe
the idea is simple. there needs to be thrust in prices before adx goes above any barrier or level say 25/10 or even 10/ The Di plus or Di minus should be above ADX. This indicates the change in direction or change in underlying price and obviously followed by ADX indicator which is dependent on user which level it exceed.
The ADX - Shows Trend Strength
The =/- Di show Thrust or reversal in prices.
it helps in entering the directional change in prices early rather than waiting for ADX
CARNAC Elasticity IndicatorThe CARNAC Elasticity Indicator (EI) is a technical analysis tool designed for traders and investors using TradingView. It calculates the percentage deviation of the current price from an Exponential Moving Average (EMA) and helps traders identify potential overbought and oversold conditions in a financial instrument.
Key Features:
EMA Length: Users can customize the length of the Exponential Moving Average (EMA) used in the calculations by adjusting the "EMA Length" parameter in the indicator settings.
Percentage Deviation: The indicator calculates the percentage deviation of the current price from the EMA. Positive values indicate prices above the EMA, while negative values indicate prices below the EMA.
Maximum Deviations: The indicator tracks the maximum positive (above EMA) and negative (below EMA) percentage deviations over time, allowing traders to monitor extreme price movements.
Bands: Upper and lower bands are displayed on the indicator chart at 100 and -100, respectively. Additionally, dashed middle bands at 50 and -50 provide reference points for moderate deviations.
Dynamic Color Coding: The indicator uses dynamic color coding to highlight the current percentage deviation. It turns red for values above 50 (indicating potential overbought conditions), green for values below -50 (indicating potential oversold conditions), and purple for values in between.
How to Use:
Overbought Conditions: Watch for the percentage deviation to cross above 50, indicating potential overbought conditions. This might be a signal to consider selling or taking profits.
Oversold Conditions: Look for the percentage deviation to cross below -50, signaling potential oversold conditions. This could be an opportunity to consider buying or entering a long position.
Historical Extremes: Keep an eye on the upper and lower bands (100 and -100) to identify historical extremes in percentage deviation.
The CARNAC Elasticity Indicator can be a valuable tool for traders seeking to identify potential trend reversals and assess the strength of price movements. However, it should be used in conjunction with other technical analysis tools and risk management strategies for comprehensive trading decisions.
FlexiSuperTrend - Strategy [presentTrading]█ Introduction and How it is Different
The "FlexiSuperTrend - Strategy" by PresentTrading is a cutting-edge trading strategy that redefines market analysis through the integration of the SuperTrend indicator and advanced variance tracking.
BTC 6H L/S
This strategy stands apart from conventional methods by its dynamic adaptability, capturing market trends and momentum shifts with increased sensitivity. It's designed for traders seeking a more responsive tool to navigate complex market movements.
Local
█ Strategy, How It Works: Detailed Explanation
The "FlexiSuperTrend - Strategy" employs a multifaceted approach, combining the adaptability of the SuperTrend indicator with variance tracking. The strategy's core lies in its unique formulation and application of these components:
🔶 SuperTrend Polyfactor Oscillator:
- Basic Concept: The oscillator is a series of SuperTrend calculations with varying ATR lengths and multipliers. This approach provides a broader and more nuanced perspective of market trends.
- Calculation:
- For each iteration, `i`, the SuperTrend is calculated using:
- `ATR Length = indicatorLength * (startingFactor + i * incrementFactor)`.
- `Multiplier = dynamically adjusted based on market conditions`.
- The SuperTrend output for each iteration is compared with the indicator source (like hlc3), and the deviation is recorded.
SuperTrend Calculation:
- `Upper Band (UB) = hl2 + (ATR Length * Multiplier)`
- `Lower Band (LB) = hl2 - (ATR Length * Multiplier)`
- Where `hl2` is the average of high and low prices.
Deviation Calculation:
- `Deviation = indicatorSource - SuperTrend Value`
- This value is calculated for each SuperTrend setting in the oscillator series.
🔶 Indicator Source (`hlc3`):
- **Usage:** The strategy uses the average of high, low, and close prices, providing a balanced representation of market activity.
🔶 Adaptive ATR Lengths and Factors:
- Dynamic Adjustment: The strategy adjusts the ATR length and multiplier based on the `startingFactor` and `incrementFactor`. This adaptability is key in responding to changing market volatilities.
- Equation: ATR Length at each iteration `i` is given by `len = indicatorLength * (startingFactor + i * incrementFactor)`.
incrementFactor - 1
incrementFactor - 2
🔶 Normalization Methods:
Purpose: To standardize the deviations for comparability.
- Methods:
- 'Max-Min': Scales the deviation based on the range of values.
- 'Absolute Sum': Uses the sum of absolute deviations for normalization.
Normalization 'Absolute Sum'
- For 'Max-Min': `Normalized Deviation = (Deviation - Min(Deviations)) / (Max(Deviations) - Min(Deviations))`
- For 'Absolute Sum': `Normalized Deviation = Deviation / Sum(Absolute(Deviations))`
🔶 Trading Logic:
The strategy integrates the SuperTrend indicator, renowned for its effectiveness in identifying trend direction and reversals. The SuperTrend's incorporation enhances the strategy's ability to filter out false signals and confirm genuine market trends. * The SuperTrend Toolkit is made by @QuantiLuxe
- Long Entry Conditions: A buy signal is generated when the current trend, as indicated by the SuperTrend Polyfactor Oscillator, turns positive.
- Short Entry Conditions: A sell signal is triggered when the current trend turns negative.
- Entry and Exit Strategy: The strategy opens or closes positions based on these signals, aligning with the selected trade direction (long, short, or both).
█ Trade Direction
The strategy is versatile, allowing traders to choose their preferred trading direction: long, short, or both. This flexibility enables traders to tailor their strategies to their market outlook and risk appetite.
█ Usage
The FlexiSuperTrend strategy is suitable for various market conditions and can be adapted to different asset classes and time frames. Traders should set the strategy parameters according to their risk tolerance and trading goals. It's particularly useful for capturing long-term movements, ideal for swing traders, yet adaptable for short-term trading strategies.
█ Default Settings
1. Trading Direction: Choose from "Long", "Short", or "Both" to define the trade type.
2. Indicator Source (HLC3): Utilizes the HLC3 as the primary price reference.
3. Indicator Length (Default: 10): Influences the moving average calculation and trend sensitivity.
4. Starting Factor (0.618): Initiates the ATR length, influenced by Fibonacci ratios.
5. Increment Factor (0.382): Adjusts the ATR length incrementally for dynamic trend tracking.
6. Normalization Method: Options include "None", "Max-Min", and "Absolute Sum" for scaling deviations.
7. SuperTrend Settings: Varied ATR lengths and multipliers tailor the indicator's responsiveness.
8. Additional Settings: Features mesh style plotting and customizable colors for visual distinction.
The default settings provide a balanced approach, but users are encouraged to adjust them based on their individual trading style and market analysis.
Rolling VWAP [QuantraSystems]Rolling VWAP
Introduction
The Rolling VWAP (R͜͡oll-VWAP) indicator modernizes the traditional VWAP by recalculating continuously on a rolling window, making it adept at pinpointing market trends and breakout points.
Its dual functionality includes both the dynamic rolling VWAP and a customizable anchored VWAP, enhanced by color-coded visual cues, thereby offering traders valuable flexibility and insight for their market analysis.
Legend
In the Image you can see the BTCUSD 1D Chart with the R͜͡oll-VWAP overlay.
You can see the individually activatable Standard Deviation (SD) Bands and the main VWAP Line.
It also features a Trend Signal which is deactivated by default and can be enabled if required.
Furthermore you can find the coloring of the VWAP line to represent the Trend.
In this case the trend itself is defined as:
Close being greater than the VWAP line -> Uptrend
Close below the VWAP line -> Downtrend
Notes
The R͜͡oll-VWAP can be used in a variety of ways.
Volatility adjusted expected range
This aims to identify in which range the asset is likely to move - according to the historical values the SD Bands are calculated and thus their according probabilities displayed.
Trend analysis
Trending above or below the VWAP shows up or down trends accordingly.
S/R Levels
Based on the probability distribution the 2. SD often works as a Resistance level and either mid line or 1. SD lines can act as S/R levels
Unsustainable levels
Based on the probability distributions a SD level of beyond 2.5, especially 3 and higher is hit very seldom and highly unsustainable.
This can either mean a mean reversion state or a momentum slowdown is necessary to get back to a sustainable level.
Please note that we always advise to find more confluence by additional indicators.
Traders are encouraged to test and determine the most suitable settings for their specific trading strategies and timeframes.
Methodology
The R͜͡oll-VWAP is based on the inbuilt TV VWAP.
It expands upon the limitations of having an anchored timeframe and thus a limited data set that is being reset constantly.
Instead we have integrated a rolling nature that continuously calculates the VWAP over a customizable lookback.
To also keep the base utility it is possible to use the anchored timeframes as well.
Furthermore the visualization has been improved and we added the coloring of the main VWAP line according to the Trend as stated above.
The applicable Trend signals are also part of that.
The parameter settings and also the visualizations allow for ample customizations by the trader.
For questions or recommendations, please feel free to seek contact in the comments.
Market Phases NJRMarket Phases Indicator
Overview:
The Market Phases Indicator is a versatile tool designed for traders to identify key market phases, including accumulation, distribution, markup, and markdown. By analyzing the relationship between price and volume, this indicator aims to assist traders in recognizing potential shifts in market sentiment and trend direction.
Features:
1. **Moving Average Analysis:**
- Utilizes a customizable moving average length to assess the overall trend direction.
2. **Volume Confirmation:**
- Incorporates volume analysis to confirm the strength of identified market phases.
3. **Visualization:**
- Clearly visualizes accumulation, distribution, markup, and markdown phases on the price chart using intuitive shapes.
Input Parameters:
- **Moving Average Length (default: 20):**
- Adjusts the length of the moving average for trend analysis.
- **Volume Multiplier (default: 1.5):**
- Sets the multiplier to customize the volume threshold for identifying significant market phases.
How to Use:
1. **Accumulation and Distribution:**
- Green triangles indicate potential accumulation phases when the closing price is above the moving average, and volume is higher than the specified threshold. Red triangles indicate potential distribution phases.
2. **Markup and Markdown:**
- Blue triangles suggest potential markup phases when the closing price is above the moving average, and volume is below the specified threshold. Orange triangles indicate potential markdown phases.
Important Notes:
- This indicator is a tool for analysis and should be used in conjunction with other technical analysis methods.
- Parameters can be adjusted based on the specific characteristics of the asset being analyzed.
Disclaimer:
Trading involves risk, and no indicator can guarantee profits. Users should exercise caution, conduct thorough research, and consider risk management principles when making trading decisions.
Universal Volatility IndexThe Universal Volatility Index (UVI) is a robust indicator designed to gauge market volatility across various asset classes. By synthesizing multiple volatility measures, the UVI offers traders a nuanced understanding of market dynamics, aiding in the assessment of risk and the decision-making process.
How It Works:
The UVI incorporates three key components to calculate a composite volatility score:
Average True Range (ATR): This represents the average volatility over the specified period, giving a base measure of market movement.
Bollinger Bands Width: Highlights the expansion or contraction of price ranges, offering insights into market volatility relative to recent price action.
Rate of Change (ROC): Captures the momentum or the velocity of price changes, adding a temporal dimension to volatility assessment.
By combining these components, the UVI delivers a singular volatility metric that adapts to changing market conditions, providing a valuable tool for traders in any market.
Usage:
To apply the UVI to your chart, add the indicator from the Pine Script library and adjust the input parameters as desired.
The plot will display a line representing the composite volatility score, with higher values indicating increased market volatility and lower values suggesting calmer market conditions.
Benefits:
The UVI is versatile and can be applied to any market, making it a universal tool for traders.
The indicator helps in identifying periods of high risk where tighter risk management may be warranted.
It assists in pinpointing potential breakouts when volatility is expanding after a period of consolidation.
Compliance with TradingView House Rules:
This script is provided for educational purposes and does not constitute financial advice. It has been created to contribute to the TradingView community by offering a versatile tool that helps traders understand and navigate market volatility.
Best scalping toolExplanation:
This script is a comprehensive indicator that combines three essential technical analysis tools: Money Flow Index (MFI), Relative Strength Index (RSI), and Bollinger Bands (Bollinger %B). It provides insights into market conditions related to cross points of mfi,rsi and B%B.
A buy condition is created when the last candle RSI and MFI are under the bollinger bands, and then in the actual candle the RSI cross up the bollinger low band.
A sell condition is created when the last candle RSI and MFI are above the bollinger bands, and then in the actual candle the RSI cross down the bollinger high band.
Key Components:
MFI (Money Flow Index):
Utilizes the MFI indicator based on a specified length.
Overbought and oversold levels (80 and 20, respectively).
RSI (Relative Strength Index): (Adapted to the mfi chart)
Allows selection of different moving average types (SMA, EMA, etc.) for the RSI calculation.
RSI along with upper and lower bands (70 and 30).
Bollinger Bands:
Provides upper and lower Bollinger Bands based on the RSI's standard deviation.
Visualization Options:
Allows the user to choose between show the buy (green arrow) and the sell (red arrow) .
How It Works:
The indicator amalgamates these three powerful technical indicators to help traders identify potential entry or exit points. The green arrow its a buy signal and the red arrow is a sell signal.
By offering configurable settings and clear visual cues, this indicator assists traders in recognizing critical market conditions and potential trading opportunities.
Disclaimer: This indicator should be used as a tool in a broader trading strategy and not solely for making trading decisions. It's recommended to combine it with other technical or fundamental analysis for comprehensive trading decisions.
Advanced Volatility Oscillator with SignalsTitle: Advanced Volatility Oscillator with Signals (AVO-S)
In-Depth Description:
Introduction:
The Advanced Volatility Oscillator with Signals (AVO-S) is designed to offer traders a nuanced understanding of market volatility, combining traditional concepts with innovative visual aids and signal interpretation. This indicator is tailored for diverse financial markets, helping to identify potential trend reversals and momentum shifts.
Calculation and Methodology:
Spike Calculation: The core of AVO-S is the 'spike', calculated as the difference between the closing and opening prices (spike = close - open). This measure provides a straightforward gauge of intra-period volatility.
Standard Deviation: The indicator employs standard deviation to assess the variability of the 'spike', offering a dynamic threshold for understanding market extremities (stdDev = stdev(spike, length)).
Colored Columns: These columns visually represent the 'spike'. Their color changes based on the spike’s value relative to the zero line and the standard deviation threshold, providing an immediate visual cue of market state.
Blue Columns: Indicate moderate positive movement when the spike is above zero but below the standard deviation.
Green and Red Columns: Suggest stronger bullish (above standard deviation) and bearish (below negative standard deviation) movements, respectively.
Bullish and Bearish Signals:
The indicator generates signals based on the relationship between the 'spike' and its standard deviation.
Bullish Signals: Shown as upward triangles, these are formed when the 'spike' crosses above the standard deviation, indicating potential upward momentum.
Bearish Signals: Represented by downward triangles, these signals are generated when the 'spike' falls below the negative standard deviation, hinting at potential downward trends.
Usage and Application:
Traders can use the colored columns to quickly assess market sentiment and volatility.
The bullish and bearish signals serve as potential indicators for market entry or exit points, or for further analysis in conjunction with other technical tools.
Inspiration and Credits:
Inspired by Veryfid's original Volatility Oscillator, the AVO-S refines and builds upon these ideas to provide a comprehensive and user-friendly tool for market analysis. This indicator is a testament to the continuous evolution of technical analysis tools in the trading community.
VIX Dashboard [NariCapitalTrading]Overview
This VIX Dashboard is designed to provide traders with a quick visual reference into the current volatility and trend direction of the market as measured by CBOE VIX. It uses statistical measures and indicators including Rate of Change (ROC), Average True Range (ATR), and simple moving averages (SMA) to analyze the VIX.
Components
ATR Period : The ATR Period is used to calculate the Average True Range. The default period set is 24.
Trend Period : This period is used for the Simple Moving Average (SMA) to determine the trend direction. The default is set to 48.
Speed Up/Down Thresholds : These thresholds are used to determine significant increases or decreases in the VIX’s rate of change, signaling potential market volatility spikes or drops. These are customizable in the input section.
VIX Data : The script fetches the closing price of the VIX from a specified source (CBOE:VIX) with a 60-minute interval.
Rate of Change (ROC) : The ROC measures the percentage change in price from one period to the next. The script uses a default period of 20. The period can be customized in the input section.
VIX ATR : This is the Average True Range of the VIX, indicating the daily volatility level.
Trend Direction : Determined by comparing the VIX data with its SMA, indicating if the trend is up, down, or neutral. The trend direction can be customized in the input section.
Dashboard Display : The script creates a table on the chart that dynamically updates with the VIX ROC, ATR, trend direction, and speed.
Calculations
VIX ROC : Calculated as * 100
VIX ATR : ATR is calculated using the 'atrPeriod' and is a measure of volatility.
Trend Direction : Compared against the SMA over 'trendPeriod'.
Trader Interpretation
High ROC Value : Indicates increasing volatility, which could signal a market turn or increased uncertainty.
High ATR Value : Suggests high volatility, often seen in turbulent market conditions.
Trend Direction : Helps in understanding the overall market sentiment and trend.
Speed Indicators : “Mooning” suggests rapid increase in volatility, whereas “Cratering” indicates a rapid decrease.
The interpretation of these indicators should be combined with other market analysis tools for best results.
Donchian Channels %I enjoy Donchian Channels for identifying trends. However, I hate having them on my chart. They are next to impossible to interpret at a glance. This script converts DCs to a % making a useful oscillator. The horizontal lines on the chart correspond to the Fib retracements below 50%. There are many ways to trade using this script and it works on any time frame. Moving average crosses are worth your attention, particularly, the 34 period MA (purple line). Enjoy and happy trading.
VIX Statistical Sentiment Index [Nasan]** THIS IS ONLY FOR US STOCK MARKET**
The indicator analyzes market sentiment by computing the Rate of Change (ROC) for the VIX and S&P 500, visualizing the data as histograms with conditional coloring. It measures the correlation between the VIX, the specific stock, and the S&P 500, displaying the results on the chart. The reliability measure combines these correlations, offering an overall assessment of data robustness. One can use this information to gauge the inverse relationship between VIX and S&P 500, the alignment of the specific stock with the market, and the overall reliability of the correlations for informed decision-making based on the inverse relationship of VIX and price movement.
**WHEN THE VIX ROC IS ABOVE ZERO (RED COLOR) AND RASING ONE CAN EXPECT THE PRICE TO MOVE DOWNWARDS, WHEN THE VIX ROC IS BELOW ZERO (GREEN)AND DECREASING ONE CAN EXPECT THE PRICE TO MOVE UPWARDS"
Understanding the VIX Concept:
The VIX, or Volatility Index, is a widely used indicator in finance that measures the market's expectation of volatility over the next 30 days. Here are key points about the VIX:
Fear Gauge:
Often referred to as the "fear gauge," the VIX tends to rise during periods of market uncertainty or fear and fall during calmer market conditions.
Inverse Relationship with Market:
The VIX typically has an inverse relationship with the stock market. When the stock market experiences a sell-off, the VIX tends to rise, indicating increased expected volatility.
Implied Volatility:
The VIX is derived from the prices of options on the S&P 500. It represents the market's expectations for future volatility and is often referred to as "implied volatility."
Contrarian Indicator:
Extremely high VIX levels may indicate oversold conditions, suggesting a potential market rebound. Conversely, very low VIX levels may signal complacency and a potential reversal.
VIX vs. SPX Correlation:
This correlation measures the strength and direction of the relationship between the VIX (Volatility Index) and the S&P 500 (SPX).
A negative correlation indicates an inverse relationship. When the VIX goes up, the SPX tends to go down, and vice versa.
The correlation value closer to -1 suggests a stronger inverse relationship between VIX and SPX.
Stock vs. SPX Correlation:
This correlation measures the strength and direction of the relationship between the closing price of the stock (retrieved using src1) and the S&P 500 (SPX).
This correlation helps assess how closely the stock's price movements align with the broader market represented by the S&P 500.
A positive correlation suggests that the stock tends to move in the same direction as the S&P 500, while a negative correlation indicates an opposite movement.
Reliability Measure:
Combines the squared values of the VIX vs. SPX and Stock vs. SPX correlations and takes the square root to create a reliability measure.
This measure provides an overall assessment of how reliable the correlation information is in guiding decision-making.
Interpretation:
A higher reliability measure implies that the correlations between VIX and SPX, as well as between the stock and SPX, are more robust and consistent.
One can use this reliability measure to gauge the confidence they can place in the correlations when making decisions about the specific stock based on VIX data and its correlation with the broader market.
Consolidation FilterDescription:
Consolidation is a technical analysis term used to describe a assets's price movement within a given support and resistance range for a period of time. Consolidations happen either during trending market phases or before a new trend. Consolidation is generally interpreted as market indecisiveness and uncertainty as to which way the market will go next caused due to trader indecisiveness, which ends when the asset's price moves above or below the trading level. A consolidation level could be broken for several reasons, such as the release of materially important news or the triggering of a succession of limit orders.
Markets spend a great amount of time ranging and going sideways. It pays off to know how to identify and trade consolidations because they happen so frequently.
Periods of consolidation can be found in price charts for any time interval, and these periods can last for days, weeks, or months. Technical traders look for support and resistance levels in price charts and then use these levels to make buy and sell decisions. Typically, traders look for certain consolidation patterns: sideways ranges, downward or upward sloping ranges (also called flags), or triangular consolidations (triangles, wedges and pennants).
In contrast, this script offers an alternative, fairly straightforward but effective, way to pinpoint consolidation periods using a forecast oscillator method and simply highlighting relevant regions in the chart (with a yellow background).
In the settings menu you can select one of the three calculation methods, but all of them are based on the forecast oscillator. The indicator settings depend on the asset and on the timeframe. For example for the 2H timeframe BTSUSD preferred settings are period:10/method:2/threshold:0.2, and for the 15M timeframe BTSUSD the settings are period:10/method:2/threshold:0.02. Feel free to experiment with settings to suit your needs.
VDVA - Volume Delta Volatility AmplifierThis script defines an indicator named VDVA (Volume Delta Volatility Amplifier), which combines volume delta (the difference between volume up and volume down) and volatility (ATR) into one line. This line is then smoothed using a moving average and compared with the zero level and a shorter-period moving average. The script also plots shapes when the rate of change of the line exceeds the first standard deviation. Moreover, the script uses Bollinger Bands and Keltner Channels to determine the squeeze condition, which is a signal of a potential breakout. Finally, the script plots two bar charts that show the volume up and volume down multiplied by ATR.
dark green line - bullish
light green line - potential bearish
dark red line - bearish
light red line - potential bullish
blue cloud - bullish
yellow cloud - bearish
red triangle - bearish entry
green triangle - bullish entry
purple cross - squeeze
Session Breakout Scalper Trading BotHi Traders !
Introduction:
I have recently been exploring the world of automated algorithmic trading (as I prefer more objective trading strategies over subjective technical analysis (TA)) and would like to share one of my automation compatible (PineConnecter compatible) scripts “Session Breakout Scalper”.
The strategy is really simple and is based on time conditional breakouts although has more ”relatively” advanced optional features such as the regime indicators (Regime Filters) that attempt to filter out noise by adding more confluence states and the ATR multiple SL that takes into account volatility to mitigate the down side risk of the trade.
What is Algorthmic Trading:
Firstly what is algorithmic trading? Algorithmic trading also known as algo-trading, is a method of using computer programs (in this case pine script) to execute trades based on predetermined rules and instructions (this trading strategy). It's like having a robot trader who follows a strict set of commands to buy and sell assets automatically, without any human intervention.
Important Note:
For Algorithmic trading the strategy will require you having an essential TV subscription at the minimum (so that you can set alerts) plus a PineConnecter subscription (scroll down to the .”How does the strategy send signals” headings to read more)
The Strategy Explained:
Is the Time input true ? (this can be changed by toggling times under the “TRADE MEDIAN TIMES” group for user inputs).
Given the above is true the strategy waits x bars after the session and then calculates the highest high (HH) to lowest low (LL) range. For this box to form, the user defined amount of bars must print after the session. The box is symmetrical meaning the HH and LL are calculated over a lookback that is equal to the sum of user defined bars before and after the session (+ 1).
The Strategy then simultaneously defines the HH as the buy level (green line) and the LL as the sell level (red line). note the strategy will set stop orders at these levels respectively.
Enter a buy if price action crosses above the HH, and then cancel the sell order type (The opposite is true for a stop order).
If the momentum based regime filters are true the strategy will check for the regime / regimes to be true, if the regime if false the strategy will exit the current trade, as the regime filter has predicted a slowing / reversal of momentum.
The image below shows the strategy executing these trading rules ( Regime filters, "Trades on chart", "Signal & Label" and "Quantity" have been omitted. "Strategy label plots" has been switched to true)
Other Strategy Rules:
If a new session (time session which is user defined) is true (blue vertical line) and the strategy is currently still in a trade it will exit that trade immediately.
It is possible to also set a range of percentage gain per day that the strategy will try to acquire, if at any point the strategy’s profit is within the percentage range then the position / trade will be exited immediately (This can be changed in the “PERCENT DAY GAIN” group for user inputs)
Stops and Targets:
The strategy has either static (fixed) or variable SL options. TP however is only static. The “STRAT TP & TP” group of user inputs is responsible for the SL and TP values (quoted in pips). Note once the ATR stop is set to true the SL values in the above group no longer have any affect on the SL as expected.
What are the Regime Filters:
The Larry Williams Large Trade Index (LWLTI): The Larry Williams Large Trade Index (LWTI) is a momentum-based technical indicator developed by iconic trader Larry Williams. It identifies potential entries and exits for trades by gauging market sentiment, particularly the buying and selling pressure from large market players. Here's a breakdown of the LWTI:
LWLTI components and their interpretation:
Oscillator: It oscillates between 0 and 100, with 50 acting as the neutral line.
Sentiment Meter: Values above 75 suggest a bearish market dominated by large selling, while readings below 25 indicate a bullish market with strong buying from large players.
Trend Confirmation: Crossing above 75 during an uptrend and below 25 during a downtrend confirms the trend's continuation.
The Andean Oscillator (AO) : The Andean Oscillator is a trend and momentum based indicator designed to measure the degree of variations within individual uptrends and downtrends in the prices.
Regime Filter States:
In trading, a regime filter is a tool used to identify the current state or "regime" of the market.
These Regime filters are integrated within the trading strategy to attempt to lower risk (equity volatility and/or draw down). The regime filters have different states for each market order type (buy and sell). When the regime filters are set to true, if these regime states fail to be true the trade is exited immediately.
For Buy Trades:
LWLTI positive momentum state: Quotient of the lagged trailing difference and the ATR > 50
AO positive momentum state: Bull line > Bear line (signal line is omitted)
For Sell Trades:
LWLTI negative momentum stat: Quotient of the lagged trailing difference and the ATR < 50
AO negative momentum state: Bull line < Bear line (signal line is omitted)
How does the Strategy Send Signals:
The strategy triggers a TV alert (you will neet to set a alert first), TV then sends a HTTP request to the automation software (PineConnecter) which receives the request and then communicates to an MT4/5 EA to automate the trading strategy.
For the strategy to send signals you must have the following
At least a TV essential subscription
This Script added to your chart
A PineConnecter account, which is paid and not free. This will provide you with the expert advisor that executes trades based on these strategies signals.
For more detailed information on the automation process I would recommend you read the PineConnecter documentation and FAQ page.
Dashboard:
This Dashboard (top right by defualt) lists some simple trading statistics and also shows when a trade is live.
Important Notice:
- USE THIS STRATEGY AT YOUR OWN RISK AND ALWAYS DO YOUR OWN RESEARCH & MANUAL BACKTESTING !
- THE STRATEGY WILL NOT EXHIBIT THE BACKTEST PERFORMANCE SEEN BELOW IN ALL MARKETS !
[F][IND] - Candle Range SizeDescription:
Understanding market volatility is paramount for making informed trading decisions, and the Candle Range Histogram Indicator is designed to provide traders with a visual representation of price volatility over time.
Key Features:
1. Histogram Display:
The indicator presents a histogram on your TradingView chart, offering a clear visualization of the range of each candle, calculated as the difference between the high and low prices.
2. Volatility Insight:
Easily identify periods of heightened or subdued volatility. Larger histograms indicate greater price ranges, suggesting increased volatility, while smaller histograms signify lower volatility.
3. Intraday Analysis:
Intraday traders can benefit from monitoring the Candle Range Histogram to gauge volatility patterns throughout the trading day. This information is valuable for setting realistic profit targets and adjusting risk management strategies.
4. Breakout Opportunities:
Recognize potential breakout opportunities by observing significant increases in candle range. Traders often associate expanded ranges with potential strong price movements.
5. Trend Confirmation:
Confirm the strength of trends by assessing consecutive candles with expanding or contracting ranges. This can aid trend-following traders in making more informed decisions.
It's important to note that while the histogram provides valuable information, it's usually more effective when used in conjunction with other technical indicators and analysis methods. Traders often combine multiple tools to gain a comprehensive understanding of the market and make well-informed trading decisions.
Alerts:
You can enable alerts on this indicator to receive timely notifications.
Disclaimer:
This indicator is provided for educational purposes only. Trading involves risk, and users should consult with a financial professional before making any trading decisions.
Your Feedback Matters!
Please feel free to comment or reach out if you have any improvement suggestions or if you would like to request the development of a specific indicator. Your feedback is invaluable!
Gross and Net LTF Volume + Trailing Percentile Sessions CVOL Hi Traders !
Gross volume, net lower time frame (LTF) volume and trailing session percentile Cumulative session volume:
The code calculates and plots the following volume indicators:
Volume (Gross Volume): The total volume for the current bar.
Net lower time frame volume: The difference between the buy and sell volumes of the lower time frame.
Cumulative daily session volume: The cumulative sum of the volume for the current day.
Percentile Cumulative daily session volume: The percentile of the cumulative daily session volume (calculated on a rolling basis).
The above indicators may be plotted exclusively or exclusively.
Why is Volume important:
Volume is the number of shares or contracts traded (of a financial asset) during a given time period (timeframe). It is a crucial indicator in technical analysis and quantitative trading, as volume helps in identifying
Price Confirmation: Volume confirms price movements by indicating the level of interest and participation in the market. When prices move significantly, accompanied by strong volume, it suggests that the movement is likely to be sustained. Conversely, if prices move without significant volume, it suggests that the movement may be temporary or lacking conviction.
Trend Strength: Volume can help identify the strength and direction of a trend. During an uptrend, increasing volume alongside price increases indicates that the upward momentum is gaining traction. Conversely, decreasing volume during an uptrend suggests that the upward momentum may be weakening.
Reversal Points: Sharp volume spikes in the opposite direction of the prevailing trend can signal a potential reversal point. This is because large volume indicates a significant shift in trader sentiment, suggesting that the trend may be changing direction.
Liquidity: High volume indicates that a security is liquid, meaning that it can be easily bought and sold without significant price impact. Liquidity is important for traders who want to execute large orders without significantly affecting the market price.
For example, suppose we want to identify positive price confirmation and positive trend strength, in this case we may use the CVOL (with trailing percentile).
The above image showcases price expansion conditional on high positive volume (increasing CVOL), The price expansion also exhibits Volume confluences (the colored bars).
Positive Confluence: Increase in positive total volume and an increase in positive lower time frame volume in relative and absolute terms.
Negative Confluence : Increase in negative total volume and an increase in negative lower time frame volume in relative and absolute terms.
Also note how the percentile color does not change, this means that the new volume bars are > than the highest percentile (80%) of volume values from the beginning of the session.
