VWAP with CharacterizationThis indicator is a visual representation of the VWAP (Volume Weighted Average Price), it calculates the weighted average price based on trading volume. Essentially, it provides a measure of the average price at which an asset has traded during a given period, but with a particular focus on trading volume. In our case, the indicator calculates the VWAP for the current trading symbol, using a predefined simple moving average (SMA) with a period of 14. This volume-weighted moving average offers a clearer view of the behavior of the VWAP and, of consequence of market dynamics.
One of the distinctive features of this indicator is its ability to provide a more "linear" representation of the data. This means that the data is "smoothed" to remove noise, allowing you to more easily identify the direction of the market trend. This smoother representation is especially useful because the financial market can be subject to significant fluctuations and volatility, and this indicator can help get a more stable view of the trend.
The indicator also offers a visualization of the market trend in a very intuitive way. Using an evaluation of the highs and lows of the last 10 days, determine whether the market is in an uptrend, downtrend, or no trend at all. To make this evaluation even clearer and more immediate, the indicator line is colored dynamically. When the trend is bullish, the line is blue, while in case of a bearish trend, it takes on a distinctive color, such as pink. If the trend is not defined, the line will be colored differently, for example light yellow. This coloration gives traders an immediate visual indication of the prevailing trend, allowing them to make more informed decisions regarding trading operations.
One potential strategy involves watching candles when they cross the VWAP line strongly. If, for example, a candlestick breaks above the VWAP line, we may look for retest areas near key support levels to gauge a potential long entry. In other words, we would consider that the price may have the potential to rise further after breaking above the VWAP line, and we would look to enter a long position to take advantage of this opportunity.
On the other hand, if a candlestick crosses below the VWAP line, we might consider looking for retest areas near the VWAP line itself, which now serves as potential resistance. This could indicate a possible short entry opportunity, as the price may struggle to break above the resistance represented by the VWAP line after breaking it down. In this case, we would look to take advantage of the expected continuation of the downtrend.
In both cases, the idea is to exploit significant movements across the VWAP line as signals of potential reversal or continuation of the trend. This strategy can help identify key entry points based on price behavior relative to the VWAP line.
Объем
YinYang MomentumOverview:
YinYang Momentum is a Price, Volume and Momentum Oscillator. Its job is to help you see swings in momentum and the strength of it. It also creates signals (Blood Diamond (Bear) and Support Cross (Bull)) where these momentum swings may occur. YinYang Momentum features 3 Price and 3 Volume 'Mountains with Ice'. There are Predictive, Regular and Confirming Mountains. You have the ability to overlay them on top of each other which helps to decipher momentum swings. The Volume Mountains are very important for showing the strength behind the Price Mountains and their Signals. If you look, you'll notice, as the 'Ice' starts to curve into the 'Mountains' it signals a potential shift in Momentum. The green Mountain is the Predictive, the Blue is the Regular and the Purple is the Confirming. You'll also notice that the Predictive Mountains movements happen first and move much more drastically. When you notice the regular starts to follow suit, there is a potential for a momentum shift. Shortly after, a signal will occur if this shift is actually happening. You can also check the Confirming Mountain for more confirmation (however, leaving the Confirming Mountain active can be a little confusing and make it harder to read signals). YinYang Momentum also features Information Tables. These tables display how the Blood Diamonds and Support Cross' are fairing on different Timeframes. This way, you'll be able to see if it's in a Bullish or Bearish state on critical Time Frames no matter what Timeframe you're trading on.
Before we move onto the tutorial, let's discuss what each of these Mountains and Ice are and how they work. All of our Mountains and Ice are calculated using the same algorithm but with varying sources, lengths and multipliers. We are essentially calculating differences in movement and then sending those differences into an EMA for the Mountain Base and SMA for the mountain Ice. The values we use for the Predictive are much lower and therefore occur much quicker as they aren’t averaged out on longer lengths/time frames; this helps to make it more of a leading Indicator which may predict momentum changes. Our Regular is over a medium length and multipliers that result in a smooth but generally also gradual movement that helps reliability; this helps it act as more of an ‘in the now’ Indication of momentum changes. Our Confirming uses lengths and multipliers that are of a higher value and longer span; this makes it more difficult to use for determining entry / exit locations as it's more of a lagging indicator, but it helps to add confirmation as to whether the momentum change has occurred and wasn't a false signal.
Tutorial:
YinYang Momentum may look like a lot is going on.. And well that’s cause there is.. But that doesn’t mean it's confusing or hard to read once you know what you’re looking for!
To make this tutorial a little easier to understand, let's turn off a few settings and dissect this indicator one thing at a time. YinYang Momentum features Price and Volume mountains. Currently in the photo above we have 2 Price Mountains and 1 Volume Mountain turned on (this is how it's set by default and how we recommend using it), however there are 3 Mountains available for both Price and Volume:
Predictive
Regular
Confirming
We are going to deactivate everything so it's the Regular Price Mountain + Ice enabled.
Now that it is just the Regular Price Mountain and Ice it is much easier to teach and understand. As you can see there are two different colors on the mountain. The dark blue is the Mountain and the light blue is the Ice.
The Ice moves before the mountain does and when the momentum happens it is larger than it (below or above). When the momentum starts to change however, the Ice curves inside of the mountain. As you can see here, where the BUY signal (red cross) is, the Ice curves into the mountain; also where the SELL signal (red circle) is, the Ice curves into the mountain. The Ice curving into the mountain is a very important leading indication that momentum is changing and the Signals (crosses and diamonds) help solidify this momentum change.
The Index levels for YinYang Momentum is a little different than most oscillators that range from 0-100. Instead YinYang Momentum’s neutral level is 0 and it ranges from -100 to 100. For these reasons, the Viable Range for Buying is -40 to -70 and the Optimal Range for Buying is -70 to -100. For Selling, the Viable Range is 40 to 70 and the Optimal Range is 70 to 100.
If you look at the example above, you can see whenever it has been in the optimal range and the signal occurred, it may potentially be an amazing time to buy or sell. However, when it is within the Viable Range it can be hit or miss. The reason for this is because we are only looking at the Regular Price Mountain and Ice. Once we turn on the Predictive Price and Regular Volume we will have a much clearer idea as to what is noise and what is a true purchase signal. Why don’t we turn on Predictive Price Mountains and Ice so you can see what we’re talking about:
So there are 2 big things that changed when we added the predictive price mountains + ice.
We can see that where the orange circle is, is just noise, it isn’t a viable buy signal.
We can see that where the red circle is, is actually a better spot to sell than the previous marked white circle slightly to the right of it.
We will explain why both above are true, but first let's explain how we were able to deduce this information.
There are 5 rules when deciphering if the signal is a true signal or just noise.
You want the predictive mountain to be decently spaced out from the regular mountain. Refer to the example above how that should look. Remember it's predictive so with parabolic movements it will get quite spaced out. If the price went up but slowly, it generally won’t be as spaced and isn’t as strong of a signal predictor.
You want the Ice to be of a decent size and to curve in on both the Predictive and Regular Mountains. Both arrows (red and white circle arrows) are pointing to Ice that does just that. The Predictive mountain is of decent size and spaced out and the Ice curves in sharply on the Predictive, before curving in sharply on the Regular and then we get both Predictive and Regular Support Cross on the Same Bar.
When you get the Signals (Predictive and Regular) the amount of bars between them matters a lot! On the same Bar is ideal, however 1-2, max 3 bars between them is acceptable. Any more than 3 bars spacing and it's too risky of a signal because that means momentum change was happening but then stopped before picking back up. This doesn’t mean it can’t be a good signal, it just means it is much more risky and we don’t recommend it.
You don’t want Signal Clustering. You can see an example of this from the picture above. Signal Clustering is where signals are back to back over and over. During this time the momentum is in a consolidation phase and easily swaps back and forth between signals. These signals are not reliable and should not be traded on. We only want to act on clear momentum based signals.
Last but certainly not least, actually, the most important! Ensure that the Mountain + Ice for both the Predictive and Regular is at the bare minimum touching (preferably inside) the Viable Range. The Optimal range is best, but most mountains don’t make it that far. Viable Range is where you will make most of your trades from. Sometimes a great signal happens with all 5 of these rules but it is only touching the Viable Range right at 40 or -40. This CAN be okay, but is also much more risky than if it was at 50 to 60 or -50 to -60.
Based on the 5 rules mentioned, take a second and look back at the photo where we initially added the Predictive Price mountains and Ice, can you decipher why the orange circle is just noise, and can you see why the red circle is a better sell location than the white circle slightly to the right of it?
Let’s bring that photo back up now and let’s discuss this:
Let's start with the orange circle:
This orange circle, without the predictive, was hard to tell if it was a good location to buy or not, but the second we turned it on we could clearly see it was just noise.
The spacing between the Predictive mountains and the Regular is almost non-existent.
There was signal clustering shortly before this signal.
Remember, there doesn’t have to be many rules broken for a signal to be either too risky or not valid at all. The safest trades are ones where it meets the requirements of all 5 rules (6 once we talk about volume, but 5 price rules).
Now, let's discuss the red circle:
This red circle, although it could have been chosen with just the regular, was much more noticeable with the predictive added on top.
It has a perfect spacing between the Predictive and the Regular all the way to the peak.
The Ice is large and both curve in very nicely towards the mountains.
The signals are within 2 bars apart from each other.
There is no signal clustering.
The Predictive is within the Viable Range and the Regular is just touching it.
For these reasons, the red circle actually would have been where you sold and not the white circle beside it.
This pretty much covers the Price Mountains, but wait! The most important Cherry on Top to your decision making process is coming next!
We have just enabled our Regular Volume Mountains and Ice (which are the black mountains + ice). As you can see, we have circled what we call the ‘Perfect Combo’. This Perfect combo is when you have all 5 Price rules met COMBINED with a high volume mountain. The Volume Mountain and Ice act as strength. They aren’t biased towards bulls or bears, they simply show strength to whatever signal is present with it.
For example, if all 5 rules are met with Price on a Blood Diamond (Bear) Signal and there is a High Volume Mountain then this is also a ‘Perfect Combo’. That Blood Diamond signal will potentially have great strength behind it. The Viable and Optimal Ranges don’t apply to volume mountains. Any volume mountain, even close to the Viable Range, is considered to be a very high mountain. High volume is when the mountain is above 0 and low volume is when it's below 0. Any signal with low volume has less of a chance of being correct, regardless of whether it abides by all 5 price rules.
You can see here that the 5 Price rules are achieved but the volume mountain is low. It is at -25. Since the 5 Price rules are right, there is still a decent amount of accuracy to this signal and the price did plummet after, but not nearly as much as it would have if the volume mountain was high with it.
We have turned our Confirming Price Mountain on here so you can get an idea of what it looks like and how it’s used. If you refer to the Support Crosses and Blood Diamonds circled in white, you’ll see that although they both received their signals on the Predictive and Regular, neither of them received it on the Confirming. This shows that these signals lost momentum shortly after. However if you look at both the red and green circles, you’ll see that they both received their confirming signals and that it helped give those signals momentum. The Confirming Price Mountain is meant to help confirm if the momentum change is still on track and the max 3 bars from the regular signal rule still applies to it. However its height within the viable and optimal range is important, just not as relevant
Before we move on to our Information Tables we want to take a second just to discuss our Volume Mountains and Ice. We haven’t had a chance yet to discuss the Predictive or Confirming Volume. When it comes to our Volume Mountains + Ice, we don’t recommend having more than 1 on at a time. The reason we have included the Predictive and Confirming is in case you find they suit your Trading Style best, not necessarily to be used the same way the Price Mountains and Ice are. The main reason for this is due to the fact that the Volume Mountains are much smaller and when overlaid on top of each other can make a confusing blur that is hard to decipher.
In this example above we have enabled both Predictive and Regular Volume just so you can understand what we are talking about. The two together can be rather confusing and actually interfere with your decision making process. For this reason, we highly recommend finding the Volume Mountain that suits your trading style best and solely sticking to that.
Our Predictive Volume Mountains and Ice may help sense volume changes before they’ve even happened. This can be very useful if your Trading Style revolves around heavy volume changes.
Our Confirming Volume Mountains and Ice are much slower and smaller, but they help show the movement of volume that has occurred already. This can be used to help see the movement of volume without fearing it may or may not happen.
Our Information Tables are there to show you valuable information on whether it is in a state of Support Cross or Blood Diamond on 6 different Time Frames at the same time. The % it shows you displays how much of a price change has occurred since that signal has happened. It is important to note, if for instance you see it is in a state of Support Cross but the % is negative, this generally means it is going to switch to Blood Diamond soon and vice versa. Therefore if you are in a trade, especially on a lower Time Frame and you are watching the 1 Day or a higher Time Frame and notice that the % is getting less and less, it may be a good time to get out.
We will conclude our Tutorial here. If you have any Questions, Concerns, Suggestions or Comments please don’t hesitate to contact us.
Settings:
1. Show Predictive to Confirmed Trendline:
The Predictive to Confirmed Trendline is very useful for seeing when the predictive (Support Cross or Blood Diamond) has hit the confirmed (It’s a strong confirmation that the trend may be shifting). This trendline also features a Moving Average which helps give you a solid marker for when the Regular / Predictive mountains cross under or over it that a momentum swing may occur. Somewhat like when the RSI crosses above/below its Moving Average it dictates momentum change, that is likewise how to interpret when it happens with the mountains and this trendline.
2. Show Price Ice and Mountains based on:
The Price Ice and Mountains are very important when it comes to deciphering signal strength. For example, When the mountains are very low (regular and predictive) and are between the 2 red line (undervalued) or even possibly below the bottom red line, and the Ice on the mountains starts to curve into the mountains and then the Predictive and Regular Support Cross occur; this is a very strong Bullish Signal. But wait, that's not all, the cherry on top is when the volume mountain (black) is ALSO high while this occurs; the Volume Mountain adds Strength to the signal. When the volume mountain is high too during this ‘Perfect Combo’ this may potentially lead to very bullish price movement occurring soon. Here is an overview of each mountain:
2.1. Predictive: Are the least reliable, but they move first and nothing will move without the predictive moving first, and getting you ready.
2.2. Regular: Are the most accurate, they don't signify strength on its own, but they sure show some momentum.
2.3. Confirming: Are slightly behind when it comes to displaying data, and therefore shouldn't be used for entry / exit, but rather to show if the trend movement has truly been confirmed or not.
When the Ice starts to curve into the Mountain, (either upward or below) it signifies possible momentum change. There are Crosses (Bull), and Diamonds (Bear) to show when they've crossed. Cross' and Diamonds balance each other out and therefore there can never be more than 1 in a row (of the same type). When the Ice and Mountain size is very large (between 40 and 70), and the predictive Ice starts to curve into its mountain, and then the predictive curves into the Regular, and the Regular Ice is curving into its Mountain, then it may have some strong weight behind that signal. IMPORTANT: refer to Volume tooltip below for how to increase the signal strength even more.
3. Show Volume Ice and Mountains based on:
The Volume Ice and Mountains are for giving strength to the Price's signals and Size. When there is the perfect combo (described above) AND the Volume Ice + Mountain is high, then there may be a lot of strength to that Price signals (whether it is Cross (Bull), or Diamond (Bear)).
IMPORTANT: High volume mountains, unlike Price, don't mean good or bad. Volume shows strength to the Price, and therefore if there are high Volume mountains during a Diamond (Bearish), then there may be a lot of strength to that signal and vice versa.
4. Show Information Tables:
Information tables are used to display 6 different Time Frames and whether or not each time frame is in a state of Blood Diamond (red) or Support Cross (green). They also show how much % in price has changed since the current signal happened. These are very useful for seeing how the price is fairing on different Time Frames without having to constantly change your timeframe. For instance, maybe you base your entry off the 1 day time frame but then you swing trade on the 15 minute. Well, after you’ve confirmed your entry position and are sitting on the 15 minute, you can stay on the 15 minute and see how it is fairing on the 1 day, 5 minute or whatever time frame you choose. This way you aren’t distracted from the trade at hand. All of these Time Frames can be adjusted in the Settings (GUI) to whatever resolution you wish.
5. Res1 / Res2/ Res3 / Res4 / Res5 / Res6:
These represent the different resolutions (Time Frames) being used in your information tables and can be modified to display whatever resolution works best for your trading style. By default they are:
Res1: Current Timeframe
Res2: 15 Minute
Res3: 1 Hour
Res4: 4 Hour
Res5: 1 Day
Res6: 1 Week
Backup Res (not changeable): 5 Minute (this is only used if your Current Timeframe in Res1 is a duplicate of one of the other resolutions)
HAPPY TRADING!
Position Cost DistributionThe Position Cost Distribution indicator (also known as the Market Position Overview, Chip Distribution, or CYQ Algorithm) provides an estimate of how shares are distributed across different price levels. Visually, it resembles the Volume Profile indicator, though they rely on distinct computational approaches.
🟠 Principle
The Position Cost Distribution algorithm is based on the principle that a security's total shares outstanding usually remains constant, except under conditions like stock splits, reverse splits, or new share issuance. It views all trading activity as simply exchanging share positions between holders at different price points.
By analyzing daily trade volume and the prior day's distribution, the algorithm infers the resulting share distribution after each day. By tracking these inferred transpositions over time, the indicator builds up an aggregate view of the estimated share concentration at each price level. This provides insights into potential buying and selling pressure zones that could form support or resistance areas.
Together with the Volume Profile, the Position Cost Distribution gives traders multiple lenses for examining market structure from both a volume and positional standpoint. Both can help identify meaningful technical price levels.
🟠 Algorithm
The algorithm initializes by allocating all shares to the price range encompassed by the first bar displayed on the chart. Preferably, the chart window should include the stock's IPO date, allowing the model to distribute shares specifically to the IPO price.
For subsequent trading sessions, the indicator performs the following calculations:
1. The daily turnover ratio is calculated by dividing the bar's trading volume by total outstanding shares.
2. For each price level (bucket), the number of shares is reduced by the turnover amount to represent shares transferring from existing holders.
3. The bar's total volume is then added to buckets corresponding to that period's price range.
Currently, the model assumes each share has an equal probability of being exchanged, regardless of how long ago it was acquired or at what price. Potential optimizations could incorporate factors like making shares held longer face a smaller chance of transfer compared to more recently purchased shares.
────────────────────────────────────────────
中文介绍：该指标为“筹码分布”的一个 TradingView 实现 :)
EnVol Lite By TradeINskiEnVol Lite By TradeINski
First things first,
This indicator is inspired by Enhanced Volume By TradeINski.
Best suited for momentum/ swing traders whose primary trade timeframe is Daily charts.
Suitable for for dark and light theme of trading view
Contents of the indicator.
1. Moving Average
2. Bar Colors
(a) Default Up & Down
(b) Relatively Up & Down
1. Moving Average
This is a simple moving average line plotted over a specific period of time frame. Default Value is 50 that means average number of shares that are volume traded over the last 50 days.
{Input}
Users have the option to change Period as per their requirement.
{Style}
Users have the option to change Show/Hide the line with "Check Mark".
Users can also change color, thickness and type of representation. "MA line".
2. Bar Colors
(a) Default Up & Down
- If on any specific day % change is positive then that day's volume bar is colored in teal. Hence default Up.
- If on any specific day %change is negative then that day's volume bar is colored in red. Hence Default Down.
- My interpretation for Default Up & Down day is its "Usual volume - usual activity"
(b)Relatively Up & Down
- To get a better understanding of relative Volume it's absolutely necessary to learn about ADR, which is Average daily range. This is coordinates with price not volume of the ticker.
Now ADR Calculation is based on High and low of the day that is average percentage change over a specified period of days. Here the period considered is 20 days.
- Now If on any specific day %change is positive that is up day, Specific day volume is 2 times the average volume and %change is 2 times the ADR then it is considered as relatively Up.
Similarly If on any specific day %change is negative that is down day, Specific day volume is 2 times the average volume and %change is 2 times the ADR then it is considered as relatively own.
- My interpretation for Relatively Up & Down day is its "unusual volume - unusual activity"
{Inputs}
- Users can change colors as per their preference. Default colors are for Default Up "Teal", Default Down "Red", Relatively Up "Lime" and for Relatively Down is "Fuchsia".
Forex Scanner Pro - GBP/JPY/NZD/USD [FxScripts]Forex Scanner Pro is both a multi-functional indicator and market scanner combined. The combination allows you to have multiple eyes across the market, all from a single chart.
The scanner is comprised of an intuitively designed 3-in-1 tool that tracks the key metrics that drive markets. Each use advanced algorithms to gather information from multiple data points, distilled into one simplified view.
***** TREND SCANNER *****
The first indicator featured on the chart is the Trend Scanner, this allows you to track price action across the wider market. Instantly see pattern shifts and emerging trends; when the market moves, you move with it.
***** MOMENTUM SCANNER *****
The second is the Momentum Scanner which offers a realtime representation of momentum shifts as they occur. This allows you to monitor false breakouts and catch the moves that matter.
***** VOLUME SCANNER *****
The third is the Volume Scanner which provides unique insight into where buy and sell volume is being placed across the market. It offers a further way of determining entry and exit points or simply confirmation that a trend is underway.
***** HOW IT WORKS *****
1. The scanner surveys the market looking for strengths and weaknesses in Trend, Momentum or Volume.
2. It displays the underlying strength or weakness as a series of dots with up to six green dots showing strength and up to six red dots showing weakness.
3. Lighter colored dots are displayed where the strength of the trend, momentum or volume is lesser; if a dot is missing this is a sign of market neutrality.
4. All scanners have a sensitivity setting plus a volatility filter which can be adjusted according to your style of trading and the underlying instrument (full details below).
5. The background can be set to color-fill when the majority of dots are coloured either red or green, with higher values denoting greater strength or greater weakness.
6. Alerts can be configured in the same way as the background to provide both entry and exit signals (further details below).
***** INSTRUMENTS *****
Due to computational restraints, the scanner is split across two different indicators. This one features GBP, JPY, NZD and USD; the other AUD, CAD, CHF and EUR. Both form part of the same package.
Forex Scanner Pro works effortlessly with any of the following major or minor crosses:
AUDCAD, AUDCHF, AUDJPY, AUDNZD, AUDSGD, AUDUSD, CADCHF, CADJPY, CADSGD, CHFJPY, EURAUD, EURCAD, EURCHF, EURGBP, EURJPY, EURNZD, EURSGD, EURUSD, GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD, GBPSGD, GBPUSD, NZDCAD, NZDCHF, NZDJPY, NZDUSD, SGDJPY, USDCAD, USDCHF, USDJPY, USDSGD
***** SETTINGS OVERVIEW *****
The scanner features the following customizable settings:
~~ Trend Settings ~~
▶ Trend Filter - adjusting this will allow you to focus on short term trends (most suitable for scalping), medium or long term (best for swing trading).
▶ Countertrend Strength - increases the sensitivity of weaker vs stronger countertrends. As countertrends are trends that run against the main trend, this will assist in detecting the strength of a pullback or reversal and allow you to either hold, exit or reverse the trade with confidence.
~~ Momentum Settings ~~
▶ Momentum Filter - increase or decrease the sensitivity of the momentum scanner. Increase to avoid periods of low or weak momentum, decrease to highlight stronger surges in momentum.
~~ Volume Settings ~~
▶ Volume Filter - increase or decrease the sensitivity of the volume scanner. Increase to avoid periods where buy and sell volume can potentially cancel each other out.
~~ Volatility Settings ~~
▶ Volatility Offset - use this to fine tune the volatility filter. A higher value generally delays the volatility filter allowing for confirmation of stronger trends, a lower value will detect trend, momentum or volume movement sooner but may be less accurate.
▶ Each scanner has its own setting allowing you to adjust how you monitor the underlying volatility for each.
▶ As with all settings, we recommend adjusting this to your style of trading, instrument and timeframe.
~~ Alerts ~~
Alerts can be configured to send notifications when anything from 4-6 bullish or bearish dots are showing. Exit markers can be configured when anything from 2+ dots are revealed. This adds an extra layer of sensitivity for traders who appreciate complete control over their trade.
~~ Display Settings ~~
You have the ability to hide all colored dots and only show the background or, alternatively, hide the background and only show colored dots.
***** TRIAL PERIOD *****
We offer a FREE, no questions asked, 7-day trial with every new registration. Visit the link below to register.
YinYang VolumeOverview:
YinYang Volume is an Advanced Volume Indicator. Regular Volume can be deceiving. It can be hard to tell how much of the Volume bar is Buy vs Sell volume, especially since the bar is green or red simply based on if it closes at a greater price than it opened. With YinYang Volume you'll be able to see how much Buy AND Sell Volume there is on each bar. Being able to see both is very useful, but the cherry on top is the Buy and Sell Moving Average Lines. These lines (White is Buy and Orange is Sell) can show who is currently winning the fight, Bulls or Bears. When the lines cross it's a shift in momentum and when combined with other technical analysis you can better understand the direction the market is moving and make an informed and educated trading decision. YinYang Volume also has Information tables, these tables display the Buy vs Sell volume on different Timeframes. This way even if you're trading on a Low Timeframe (like 15 minutes) you can see how the Buy vs Sell volume is fairing on other Timeframes.
Tutorial:
Unlike most volume indicators, including standard volume, we can see both Buy AND Sell volume for each bar. You may be wondering, well what’s the importance of this? The answer is EVERYTHING! Volume is one of the most important indicators when it comes to trading. Nothing moves without volume. However, with standard volume, the bar is either red or green simply based on if it closes greater than it opens. Now, that is pretty silly if you ask us. Let’s get into depth as to why seeing both Buy and Sell volume is important, and examples for how you can make trades with it:
In this example above, we have 2 green bars and they both have high levels of volume. This bar on the right however, has more volume than the one on the left. The issue here is, the bar on the right has MORE Sell volume than it even does have Buy volume; meanwhile the bar on the left has way more buy volume than the bar on the right with little sell volume. Without separating them and by simply looking at the price bar and regular volume bar, we would never be able to deduce this. It is crucial to understand and see how much of each volume there is as it plays a huge role in the price movements.
The white line represents the Buy Volume Moving Average and the orange line represents the Sell Volume Moving Average. These moving averages are very useful as when they cross they represent strong Buy and Sell Signals.
We’ve enabled signals which plot circles onto the MA’s to display when they’ve crossed. The white circle represents a Buy Signal and the Orange circle represents a Sell Signal. These signals are very strong, but there is a catch that comes with it. The bar right after the signal has the highest chance of a reversal so it isn’t always advised to make the trade until confirmed that the reversal didn’t happen on the following bar. If you have enough data based on other technical analysis to know the first signal is true, then use it as a way to solidify the fact that it is a good entry/exit location.
You can change the length of which the MA’s are smoothed out over. For instance, in the previous examples and by default the length is 14. However, if we are to change it to 50 for instance, it makes them a longer lasting MA that has much fewer crosses. This can be useful based on your trading style and if you prefer to stay in trades for quite awhile. As you can see, all signals with the 50 length are quite accurate and would have produced profitable trades, likely more so than at 14, but since it moves slower there's fewer signals to trade on.
Our Information Tables are there to show you the amount of Buy vs Sell %’s on 6 different Time Frames at the same time. It can be very useful to know how people are feeling on different Time Frames without you having to change your own. This way you can stay on say the 15 minute Time Frame locked in your trade and can see if the momentum of your long trade is cooling down based on higher Time Frames Buy vs Sell volume %’s.
For example, let's say you got an alert from YinYang Volume for Buy Signal on the 1 Day. You then entered a trade which you deemed a good location on the 15 minutes (after doing your own technical analysis on the 15 minute too). The Buy vs Sell Volume %’s on the 1 Day was 55% Buy and 45% Sell when you entered the trade. You are still waiting for exit confirmation on the 15 minute but you notice the Buy vs Sell Volume % on the 1 Day goes down to 52% Buy and 48% Sell. You can see the momentum changing. Even though you haven’t received confirmation for exit on the 15 minute, it may still be a good time to get out as momentum is clearly changing on the 1 Day.
We will conclude this Tutorial here. We hope you’ll get some good use out of our Volume Indicator and its ability to display unique Volume Data. If you have any Questions, Comments, Suggestions or Concerns, please don’t hesitate to contact us.
Settings:
1. Show Signals:
Toggling this setting shows when the Buy and Sell Volume MA’s cross each other. It produces a white circle when the Buy Volume Crosses over the Sell Volume (BULLISH) and an orange circle when the Sell Volume Crosses over the Buy Volume (BEARISH).
2. Length:
How far back should we average the Buy and Sell Volume Moving Averages? 14 is default has been tested and proven to work well, however you can change it if there is a different value that suits your trading style better.
3. Type:
How is the Moving Averages calculated? VWMA (Volume Weighted Moving Average) is the default as it has been tested and worked best; afterall, we are calculating volume and therefore should use a volume weighted MA calculation. However, you can change it as your options are:
VWMA, EMA and SMA
4. Information Tables:
4.1. Show Information Tables:
Our Information tables display 6 different resolutions so you can see how much Buy vs Sell volume there is as a % in multiple different Time Frames without having to change your Time Frame.
4.2. Strength:
The Buy / Sell Volume %’s displayed within your Information Tables are based on Moving Averages. The length this moving average uses is based on the Strength you select. The strengths aren’t as simple as just a length amount but are a calculation involving multiple different lengths and averages. However, the stronger the strength, generally the farther the lookback length is as an average. Your options for strength are:
Unbreakable
Very Strong
Strong
Average
Weak
Very Weak
Glass
We recommend ‘Average’ Strength, however if you find you want to see the %’s change more or less frequently you can adjust to your trading style
4.3. Res1 / Res2/ Res3 / Res4 / Res5 / Res6:
These represent the different resolutions (Time Frames) being used in your information tables and can be modified to display whatever resolution works best for your trading style. By default they are:
Res1: Current Timeframe
Res2: 15 Minute
Res3: 1 Hour
Res4: 4 Hour
Res5: 1 Day
Res6: 1 Week
Backup Res (not changeable): 5 Minute (this is only used if your Current Timeframe in Res1 is a duplicate of one of the other resolutions)
HAPPY TRADING!
GKD-E MFI [Loxx]The Giga Kaleidoscope GKD-E MFI is an exit module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-E MFI
The Money Flow Index (MFI) is a technical analysis indicator that tracks the flow of money into and out of a security over a specified period of time. It is a momentum oscillator that ranges between 0 to 100 and is used to identify overbought or oversold conditions in a traded security. The MFI considers both price changes and trading volume, making it similar to the Relative Strength Index (RSI) but with the added dimension of volume. Typically, readings above 80 suggest that an asset may be overbought, indicating potential for a price decline, while readings below 20 suggest it may be oversold, indicating potential for a price increase.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Advance Trend Pressure as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
SOFEX Strong Volatility Trend Follower + BacktestingWhat is the SOFEX Strong Volatility Trend Follower + Backtesting script?
🔬 Trading Philosophy
This script is trend-following, attempting to avoid choppy markets.
It has been developed for Bitcoin and Ethereum trading, on 1H timeframe.
The strategy does not aim to make a lot of trades, or to always remain in a position and switch from long to short. Many times there is no direction and the market is in "random walk mode", and chasing trades is futile.
Expectations of performance should be realistic.
The script focuses on a balanced take-profit to stop-loss ratio. In the default set-up of the script, that is a 2% : 2% (1:1) ratio. A relatively low stop loss and take profit build onto the idea that positions should be exited promptly. There are many options to edit these values, including enabling trailing take profit and stop loss. Traders can also completely turn off TP and SL levels, and rely on opposing signals to exit and enter new trades.
Extreme scenarios can happen on the cryptocurrency markets, and disabling stop-loss levels completely is not recommended. The position size should be monitored since all of it is at risk with no stop-loss.
⚙️ Logic of the indicator
The Strong Volatility Trend Follower indicator aims at evading ranging market conditions. It does not seek to chase volatile, yet choppy markets. It aims at aggressively following confirmed trends. The indicator works best during strong, volatile trends, however, it has the downside of entering trades at trend tops or bottoms.
This indicator also leverages proprietary adaptive moving averages to identify and follow strong trend volatility effectively. Furthermore, it uses the Average Directional Index, Awesome Oscillator, ATR and a modified version of VWAP, to categorize trends into weak or strong ones. The VWAP indicator is used to identify the monetary (volume) inflow into a given trend, further helping to avoid short-term manipulations. It also helps to distinguish choppy-market volatility with a trending market one.
📟 Parameters Menu
The script has a comprehensive parameter menu:
Preset Selection : Choose between Bitcoin or Ethereum presets to tailor the indicator to your preferred cryptocurrency market.
Indicator Sensitivity Parameter : Adjust the sensitivity to adapt the indicator, particularly to make it seek higher-strength trends.
Indicator Signal Direction : Set the signal direction as Long, Short, or Both, depending on your preference.
Exit of Signals : You have options regarding Take-Profit (TP) and Stop-Loss (SL) levels. Enable TP/SL levels to exit trades at predetermined levels, or disable them to rely on direction changes for exits. Be aware that removing stop losses can introduce additional risk, and position sizing should be carefully monitored.
By enabling Trailing TP/SL, the system switches to a trailing approach, allowing you to:
- Place an initial customizable SL.
- Specify a level (%) for the Trailing SL to become active.
- When the activation level is reached, the system moves the trailing stop by a given Offset (%).
Additionally, you can enable exit at break-even, where the system places an exit order when the trail activation level is reached, accounting for fees and slippage.
Alert Messages : Define the fields for alert messages based on specific conditions. You can set up alerts to receive email, SMS, and in-app notifications. If you use webhooks for alerts, exercise caution, as these alerts can potentially execute trades without human supervision.
Backtesting : Default backtesting parameters are set to provide realistic backtesting performance:
- 0.04% Commission per trade (for both entries and exits)
- 3 ticks Slippage (highly dependent on exchange)
- Initial capital of $1000
- Order size of $1000
While the order size is equal to the initial capital, the script employs a 2% stop-loss order to limit losses and attempts to prevent risky trades from creating big losses. The order size is a set dollar value, so that the backtesting performance is linear, instead of using % of capital which may result in unrealistic backtesting performance.
Risk Disclaimer
Please be aware that backtesting results, while valuable for statistical overview, do not guarantee future performance in any way. Cryptocurrency markets are inherently volatile and risky. Always trade responsibly and do not risk more than you can afford to lose.
GKD-C Alpha Trend [Loxx]The Giga Kaleidoscope GKD-C Alpha Trend is a confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-C Alpha Trend
Alpha Trend first determines the average true range (ATR) and computes up and down trends based on the ATR. It then evaluates conditions based on relative strength index (RSI) or money flow index (MFI) to define a value named 'Alpha'. The algorithm then compares the current 'Alpha' value to its previous values to determine potential buy or sell signals. Finally, it counts the number of bars (or periods) since the last buy or sell signal was triggered and uses this information generate signals.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Advance Trend Pressure as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
Smart Money IndicatorSmart Money Indicator
Overview:
The "Smart Money Indicator" is a custom Pine Script indicator designed to help traders identify potential instances of "smart money" or institutional activity in the financial markets. The concept of "smart money" suggests that institutional investors or sophisticated market participants may have an edge due to their access to resources, information, and analytical tools.
Indicator Features:
Volume Moving Average: The indicator calculates a simple moving average (SMA) of the trading volume over a specified length (default is 20 bars). This moving average serves as a baseline for evaluating current trading volume.
Smart Money Signals: The indicator plots green triangles below the price bars when the current trading volume is significantly higher (50% above) than the moving average. This is intended to highlight potential instances of "smart money" activity.
Dumb Money Signals: Conversely, the indicator plots red triangles above the price bars when the current trading volume is significantly lower (50% below) than the moving average. This is meant to indicate potential "dumb money" activity.
How to Use:
Traders can use this indicator to identify potential shifts in market sentiment driven by institutional activity. When the green "Smart Money" triangles appear, it may suggest increased institutional interest or significant trading volume, potentially signaling a noteworthy market event. Conversely, red "Dumb Money" triangles may indicate periods of reduced institutional activity.
Disclaimer:
It's important to note that this indicator is a simplified representation of the concept of "smart money" and should be used in conjunction with other technical and fundamental analysis tools. Trading decisions should not be based solely on this indicator, and thorough research and due diligence are essential before making trading or investment decisions.
Customization:
Traders can customize the indicator by adjusting the length of the volume moving average to match their trading preferences and strategies. Experimentation and fine-tuning may be necessary to optimize its performance for specific markets and timeframes.
YinYang RSI Volume Trend StrategyThere are many strategies that use RSI or Volume but very few that take advantage of how useful and important the two of them combined are. This strategy uses the Highs and Lows with Volume and RSI weighted calculations on top of them. You may be wondering how much of an impact Volume and RSI can have on the prices; the answer is a lot and we will discuss those with plenty of examples below, but first…
How does this strategy work?
It’s simple really, when the purchase source crosses above the inner low band (red) it creates a Buy or Long. This long has a Trailing Stop Loss band (the outer low band that's also red) that can be adjusted in the Settings. The Stop Loss is based on a % of the inner low band’s price and by default it is 0.1% lower than the inner band’s price. This Stop Loss is not only a stop loss but it can also act as a Purchase Available location.
You can get back into a trade after a stop loss / take profit has been hit when your Reset Purchase Availability After condition has been met. This can either be at Stop Loss, Entry or None.
It is advised to allow it to reset in case the stop loss was a fake out but the call was right. Sometimes it may trigger stop loss multiple times in a row, but you don’t lose much on stop loss and you gain lots when the call is right.
The Take Profit location is the basis line (white). Take Profit occurs when the Exit Source (close, open, high, low or other) crosses the basis line and then on a different bar the Exit Source crosses back over the basis line. For example, if it was a Long and the bar’s Exit Source closed above the basis line, and then 2 bars later its Exit Source closed below the basis line, Take Profit would occur. You can disable Take Profit in Settings, but it is very useful as many times the price will cross the Basis and then correct back rather than making it all the way to the opposing zone.
Longs:
If for instance your Long doesn’t need to Take Profit and instead reaches the top zone, it will close the position when it crosses above the inner top line (green).
Please note you can change the Exit Source too which is what source (close, open, high, low) it uses to end the trades.
The Shorts work the same way as the Long but just opposite, they start when the purchase source crosses under the inner upper band (green).
Shorts:
Shorts take profit when it crosses under the basis line and then crosses back.
Shorts will Stop loss when their outer upper band (green) is crossed with the Exit Source.
Short trades are completed and closed when its Exit Source crosses under the inner low red band.
So, now that you understand how the strategy works, let’s discuss why this strategy works and how it is profitable.
First we will discuss Volume as we deem it plays a much bigger role overall and in our strategy:
As I’m sure many of you know, Volume plays a huge factor in how much something moves, but it also plays a role in the strength of the movement. For instance, let’s look at two scenarios:
Bitcoin’s price goes up $1000 in 1 Day but the Volume was only 10 million
Bitcoin’s price goes up $200 in 1 Day but the Volume was 40 million
If you were to only look at the price, you’d say #1 was more important because the price moved x5 the amount as #2, but once you factor in the volume, you know this is not true. The reason why Volume plays such a huge role in Price movement is because it shows there is a large Limit Order battle going on. It means that both Bears and Bulls believe that price is a good time to Buy and Sell. This creates a strong Support and Resistance price point in this location. If we look at scenario #2, when there is high volume, especially if it is drastically larger than the average volume Bitcoin was displaying recently, what can we decipher from this? Well, the biggest take away is that the Bull’s won the battle, and that likely when that happens we will see bullish movement continuing to happen as most of the Bears Limit Orders have been fulfilled. Whereas with #2, when large price movement happens and Bitcoin goes up $1000 with low volume what can we deduce? The main takeaway is that Bull’s pressured the price up with Market Orders where they purchased the best available price, also what this means is there were very few people who were wanting to sell. This generally dictates that Whale Limit orders for Sells/Shorts are much higher up and theres room for movement, but it also means there is likely a whale that is ready to dump and crash it back down.
You may be wondering, what did this example have to do with YinYang RSI Volume Trend Strategy? Well the reason we’ve discussed this is because we use Volume multiple times to apply multiplications in our calculations to add large weight to the price when there is lots of volume (this is applied both positively and negatively). For instance, if the price drops a little and there is high volume, our strategy will move its bounds MUCH lower than the price actually dropped, and if there was low volume but the price dropped A LOT, our strategy will only move its bounds a little. We believe this reflects higher levels of price accuracy than just price alone based on the examples described above.
Don’t believe us?
Here is with Volume NOT factored in (VWMA = SMA and we remove our Volume Filter calculation):
Which produced -$2880 Profit
Here is with our Volume factored in:
Which produced $553,000 (55.3%)
As you can see, we wen’t from $-2800 profit with volume not factored to $553,000 with volume factored. That's quite a big difference! (Please note previous success does not predict future success we are simply displaying the $ amounts as example).
Now how about RSI and why does it matter in this strategy?
As I’m sure most of you are aware, RSI is one of the leading indicators used in trading. For this reason we figured it would only make sense to incorporate it into our calculations. We fiddled with RSI for quite awhile and sometimes what logically seems to be the right way to use it isn’t. Now, because of this, our RSI calculation is a little odd, but basically what we’re doing is we calculate the RSI, then turn it into a percentage (between 0-1) that can easily be multiplied to the price point we need. The price point we use is the difference between our high purchase zone and our low purchase zone. This allows us to see how much price movement there is between zones. We multiply our zone size with our RSI multiplication and we get the amount we will add +/- to our basis line (white line). This officially creates the NEW high and low purchase zones that we are actually using and displaying in our trades.
If you found that confusing, here are some examples to why it is an important calculation for this strategy:
Before RSI factored in:
Which produced 27.8% Profit
After RSI factored in:
Which produced 553% Profit
As you can see, the RSI makes not only the purchase zones more accurate, but it also greatly increases the profit the strategy is able to make. It also helps ensure an relatively linear profit slope so you know it is reliable with its trades.
This strategy can work on pretty much anything, but you should tweak the values a bit for each pair you are trading it with for best results.
We hope you can find some use out of this simple but effective strategy, if you have any questions, comments or concerns please let us know.
HAPPY TRADING!
Buy Sell Volume SeparateDescription:
The script is designed to provide traders with a unique and comprehensive analysis of trading volume dynamics. Unlike existing scripts, the script offers a distinct advantage by presenting both buy and sell volumes on separate scales, simplifying trading decisions.
Key Features:
1. Dual Volume Scales: The script provides two separate volume scales, one for buy volumes and another for sell volumes. This separation allows to easily distinguish between buying and selling pressure, aiding in more precise trade entries and exits.
2. Clear and Intuitive Chart: The script ensures that the chart it generates is clean and easy to understand. The buy and sell volumes are color-coded for clarity, and you can quickly identify significant volume spikes and trends.
How to Use:
1. Adding the Script: To use the script, simply add it to your TradingView chart.
2. Interpreting Buy and Sell Volumes: On the chart, you will see two separate volume scales—one for buy volumes and one for sell volumes. Green bars represent buying pressure, while red bars indicate selling pressure. Pay attention to the relative strengths and patterns of these bars to gauge market sentiment.
3. Informed Trading Decisions: Armed with insights into both buy and sell volumes, you can make more informed trading decisions. Look for divergences, patterns, or significant volume spikes to identify potential entry and exit points.
Volume Crossover StrategyThis script shows us the strength and acceleration of the trend, not the direction. ! . The indicator is built on the collision of two volumes (the collision of one-hour and four-hour volumes), where as a result one upward arrow shows us (acceleration, pressing the gas on the pedal), and the downward one shows deceleration (i.e. braking).
Recommendation: Be sure to attach:
a) any trend direction indicator (SMA, EMA), through which we will have an idea where the market is going and going:
b) volatility indicator
c) AD accumulation distribution (let's have a real picture, is there a buying or selling trend)
It is suitable for a one-hour timeframe
P.S. The script does not make any guarantee of profit, it is published only for the purpose of sharing my opinion about this strategy.
an hour ago
Comment:
The green signal is the start of the marathon, and the red signal is the end. For example, if the downward trend has ended (we can see it through the blue signal), it does not mean that the next marathon will necessarily be a reflected trend. It is not excluded that the next marathon will also develop on a downward trend...and therefore in the opposite case as well..
Volume Wizard - Omkar
Volume bars on up days will be in 'silver' colour.
Volume bars on down days will be in 'grey' colour.
The volume bar will ‘be red’ in colour if the latest close is below the previous close and the volume is more than the average volume.
A green circle will be plotted if the current candle volume is the least in the last 20 days.
The volume bar will be ‘blue’ in colour if the current candle volume is more than the highest volume of the down day in the last 5 days (5-day Pocket Pivot).
The volume bar will be ‘green’ in colour if the current candle volume is more than the highest volume of the down day in the last 10 days (10-day Pocket Pivot).
The volume bar will be ‘lime’ in colour if the current candle volume is more than the highest volume of the down day in the last 20 days (20-day Pocket Pivot).
The volume bar will be ‘teal’ in colour if the current candle volume is highest in the last 3 months.
The volume bar will be ‘aqua’ in colour if the current candle volume is highest in the last 1 year.
If the current volume is the lowest in the last 22 days, a tiny yellow circle will be plotted on the volume average line on daily and weekly timeframe only.
If the current volume is more than three times the average volume and the close is in the top half of the candle, a diamond will be plotted at the top of the volume bar on a daily and weekly timeframe only.
Average volume days and Pivot lookback period can be modified.
The table shows the average turnover, the number of pocket pivots in the last ‘n’ days and the up-down ratio.
The table position can be changed.
Volume Wizard - Omkar indicator provides me with insights, allowing me to make informed trading decisions, and identify potential trends.
It's my go-to companion for navigating the financial markets with confidence.
Add it to your favourites and start using it right away.
Happy trading!
Supply Demand Profiles [LuxAlgo]The Supply Demand Profiles is a charting tool that measures the traded volume at all price levels on the market over a specified time period and highlights the relationship between the price of a given asset and the willingness of traders to either buy or sell it, in other words, highlights key concepts as significant supply & demand zones, the distribution of the traded volume, and market sentiment at specific price levels within a specified time period, allowing traders to reveal dominant and/or significant price levels and to analyze the trading activity of a particular user-selected range.
In other words, this tool highlights key concepts as significant supply & demand zones, the distribution of the traded volume, and market sentiment at specific price levels within a specified time period, allowing traders to reveal dominant and/or significant price levels and to analyze the trading activity of a particular user-selected range.
Besides having the tool as a combo tool, the uniqueness of this version of the tool compared to its early versions is its ability to benefit from different volume data sources and its ability to use a variety of different polarity methods, where polarity is a measure used to divide the total volume into either up volume (trades that moved the price up) or down volume (trades that moved the price down).
🔶 USAGE
Supply & demand zones are presented as horizontal zones across the selected range, hence adding the ability to visualize the price interaction with them
By default, the right side of the profile is the volume profile which highlights the distribution of the traded activity at different price levels, emphasizing the value area, the range of price levels in which the specified percentage of all volume was traded during the time period, and levels of significance, such as developing point of control line, value area high/low lines, and profile high/low labels
The left side of the profile is the sentiment profile which highlights the market sentiment at specific price levels
🔶 DETAILS
🔹 Volume data sources
The users have the option to select volume data sources as either 'volume' (regular volume) or 'volume delta', where volume represents all the recorded trades that occur at a given bar and volume delta is the difference between the buying and the selling volume, that is, the net demand at a given bar
🔹 Polarity methods
The users are able to choose the methods of how the tool to take into consideration the polarity of the bar (the direction of a bar, green (bullish) or red (bearish) bar) among a variety of different options, such as 'bar polarity', 'bar buying/selling pressure', 'intrabar (chart bars at a lower timeframe than the chart's) polarity', 'intrabar buying/selling pressure', and 'heikin ashi bar polarity'.
Finally, the interactive mode of the tool is activated, as such users can easily modify the intervals of their interest just by selecting the indicator and moving the points on the chart
🔶 SETTINGS
The script takes into account user-defined parameters and plots the profiles and zones
🔹 Calculation Settings
Volume Data Source and Polarity: This option is to set the desired volume data source and polarity method
Lower Timeframe Precision: This option is applicable in case any of the 'Intrabar (LTF)' options are selected, please check the tooltip for further details
Value Area Volume %: Specifies the percentage for the value area calculation
🔹 Presentation Settings
Supply & Demand Zones: Toggles the visibility of the supply & demand zones
Volume Profile: Toggles the visibility of the volume profile
Sentiment Profile: Toggles the visibility of the sentiment profile
🔹 Presentation, Others
Value Area High (VAH): Toggles the visibility of the VAH line and color customization option
Point of Control (POC): Toggles the visibility of the developing POC line and color customization option
Value Area Low (VAL): Toggles the visibility of the VAL line and color customization option
🔹 Supply & Demand, Others
Supply & Demand Threshold %: This option is used to set the threshold value to determine supply & demand zones
Supply/Demand Zones: Color customization option
🔹 Volume Profile, Others
Profile, Up/Down Volume: Color customization option
Value Area, Up/Down Volume: Color customization option
🔹 Sentiment Profile, Others
Sentiment, Bullish/Bearish: Color customization option
Value Area, Bullish/Bearish: Color customization option
🔹 Others
Number of Rows: Specify how many rows the profile will have
Placment: Specify where to display the profile
Profile Width %: Alters the width of the rows in the profile, relative to the profile range
Profile Price Levels: Toggles the visibility of the profile price levels
Profile Background, Color: Fills the background of the profile range
Value Area Background, Color: Fills the background of the value area range
Start Calculation/End Calculation: The tool is interactive, where the user may modify the range by selecting the indicator and moving the points on the chart or can set the start/end time using these options
🔶 RELATED SCRIPTS
Volume-Profile
Volume-Profile-Maps
Volume-Delta
Initial Balance (customizable)Introducing the Initial Balance
Discover precision and clarity in your trading decisions with the Initial Balance. Crafted for traders who seek an edge, this tool pinpoints the range established during the first hour of the trading session, offering a holistic understanding of market sentiments right from the start.
Key Features:
Accurate Visualization: See the initial balance range plotted seamlessly on your chart, providing a transparent view of early market movement.
Customizable Timeframes: Whether you're an early bird catching the first market moves or prefer trading a bit later, set your own start time to fit your trading strategy.
Subtle Aesthetics: With non-intrusive lines and a customizable transparency setting, this indicator integrates smoothly with any chart, ensuring your view remains clear and undistracted.
Adaptable to Any Market: No matter your trading domain - be it stocks, forex, or commodities - this tool adjusts to offer valuable insights.
Why Use the Initial Balance Indicator?
Understanding the initial balance gives a trader the advantage of interpreting the day's potential trend. It's a reflection of early market consensus and serves as a foundation for the day's trading action. By leveraging this, you can better align your strategies with market momentum and improve your trading outcomes.
Add clarity and precision to your trading toolkit. Try the Initial Balance and elevate your trading insights.
Hoffman Heiken BiasThis indicator uses a couple of different things including the Hoffman moving averages applied with heiken ashi bar data and some volatility to help determine when the bias of the market has shifted for the timeframe you are looking at.
Kviatek - Multi Hour VWAPThis is an experimental script, that plots 24 VWAPs, each starting at a new hour and lasting for 24hours.
After using session anchored VWAPs i kept wondering if the price reacts to VWAPs that begin at periods lower than sessions.
Color of each VWAP changes upon crossovers of the following VWAP, giving us an understanding of trends and whether we're trading with the trend or against it.
By the nature of the script I recommend using it on low timeframes, 5 and 15-minute ones ideally.
Volume HeatMap With Profile [ChartPrime]The Volume Heatmap with Profile indicator is a tool designed to provide traders with a comprehensive view of market activity through customizable visualizations. This indicator goes beyond traditional volume analysis by offering a range of adjustable parameters and features that enhance analysis of volume and give a cleaner experience when analyzing it.
To get started click the start and end time for the profile.
Key Features:
Extended Calculation: This indicator extends its calculation to the last bar, ensuring that the user has insights into current market dynamics.
Point of Control (POC): Easily identify the price level at which the highest trading activity has occurred, helping the user pinpoint potential reversal points and significant support/resistance zones.
VWAP Point of Control: Display the Volume Weighted Average Price (VWAP) Point of Control, giving the user a clear reference for determining the average price traders are paying and potential price reversals.
Adjustable Colors for Heatmap: Change the heatmap colors to the users preference, allowing the user to match the indicator's appearance to their chart style and personal visual preferences.
Forecasted Zone: This feature allows traders to forecast areas of high activity by providing the option to adjust colors within this zone. This feature assists in identifying potential breakouts or areas where increased trading volume is anticipated.
Volume Profile: Customize the colors of the volume profile to make it distinct and easily distinguishable on the chart.
Adjustable Volume Levels: Specify the number volume levels that are most relevant to your trading strategy.
Adjustable Placement for Volume Profile: Position the volume profile on the chart. Whether the user prefers it on the left, right, or at the center of the chart, this indicator offers placement flexibility.
The ratio of bull vs bear volume is plotted on the outside of the range indicating how bullish or bearish price action is in a given range.
Tops & Bottoms by Volume [SS]Hey everyone,
Releasing this indicator that helps you time entries by alerting to potential tops and bottoms in the market.
Background to the indicator:
I was playing around with things that signalled reversals / tops and bottoms in SPSS and R using Pivot Points to mark tops and bottoms. Happened to come across a generally statistically significant relationship between sell to buy volume that was tracked over 10 to 50 candles back and pivot highs and pivot lows.
So I put it into a beta version of an indicator to see how it looked and was a bit surprised.
Since then, I have went back and narrowed down the details of what works/what doesn't work and this is the tentative result!
What it does / How to Use:
It tracks the cumulative buy vs sell volume. Buy volume is cumulated as close > open (or green candles) and sell is open > close (or red candles).
It then cumulates this over a user-defined period (defaulted to 14). It then looks back to see the highest vs lowest areas of sell and buy volume and makes determinations based on this relationship.
The relationship was determined by me using my own analysis and programmed into the indicators algorithm (using highest vs lowest function in pine).
It will plot areas of potential reversal to the upside as green on the histogram or red for a downside reversal. Once this becomes significant enough to signal an actual bottom or top, it will then change the SMA colour from white to green (for bottom) or red (for top).
Your entries generally should be once the SMA turns back to white. So from green to white, you would enter long or inverse for red to white (enter short).
Settings and Customizability:
Here are the key points to keep in mind if you are using this indicator:
Your lookback length should be between 10 to 50. I have left it open for you to modify it below and above this lookback period; however, this is the major periods deemed to be significant in identifying tops and bottoms. Thus, I advise against operating outside of those parameters.
You can toggle between smoothed look or historgram with SMA. The strength in this indicator comes from using the SMA and watching the SMA for signals of reversals, so if you want to filter out the background noise, you can simply look at the plotted SMA. If you want a more responsive indication of impending reversals, leave the smoothed option off and view the histogram in conjunction with the SMA.
The indicator will change the candle colour to red for bearish reversal and green to bullish reversal. This is based on the SMA. You can toggle this off and/or on as desired.
It is recommended to leave ETH (extended trading hours) turned off and RTH turned on.
Please read the instructions carefully.
If you require further assistance, I have posted a tutorial video.
Please be sure you are reading and/or watching carefully.
If you have questions, please feel free to post them below. But bear in mind I likely will not respond if it is already addressed in the description above (this happens often).
Also, feel free to leave your comments or suggestions below as well.
Thanks for checking this out. If you are interested in volume based trading, I suggest also checking out my Buyer to Seller volume indicator which cumulates total buying vs selling volume over a designated lookback period. Both of these used in conjunction are very powerful tools for volume based traders! ( Available here )
NOTE:
The boxes drawn in the chart are my own for demonstration purposes. I unfortunately cannot get the indicator to overlay the boxes on the chart in a separate viewing pane. That is why I opted to use the barcolor function to change the candle color instead :-).
Thanks again everyone and safe trades!
Volume Traded in Total Outstanding Shares with basic fundamentalThis indicator helps to find Volume Traded in Total Outstanding Shares with basic fundamental parameters like MCAP, EPS, PE, D2E and No. Equity shares.
Volume EntropyKey Components :
📍 Natural Logarithm Function : The script starts by employing a custom Taylor Series approximation for natural logarithms. This function serves to calculate entropy with higher accuracy than conventional methods, laying the foundation for further calculations.
📍 Entropy Calculation : The core of this indicator is its entropy function. It employs the custom natural log function to compute the randomness of the trading volume over a user-defined micro-pattern length, offering insights into market stability or volatility.
📍 Micro-Pattern Length : This is the parameter that sets the stage for the level of detail in the entropy calculation. Users can adjust it to suit different time frames or market conditions, thus customizing the indicator's sensitivity to randomness in trading volume.
Kviatek - Multi Day VWAPThis indicator plots VWAPs anchored to each day of the week.
VWAPs are considered "fair price" for both sellers and buyers and it's often times where the liquidity is found.
From my trading I noticed how often times price likes to come back to the daily VWAP from the previous week, especially at the beginning and end of each week.
For example, if we enter a long on Friday, last Friday's VWAP tends to act as a target for the price.
Another use for it is to get an understanding of how the trend develops throughout the week.
If the following day's VWAP is above the previous day's VWAP - we have a trend continuation.
