Custom Range Creator + Normalized Oscillators (Obv, Rsi, Mfi)
Hello Traders!
Custom Range Creator is a specialized trading tool designed for traders who incorporate range analysis into their trading strategy.
Once you set the desired number of past candles or provide a manual input, the indicator will automatically draw a range for you. This unique feature allows you to customize the range based on the highest and lowest points within a specified number of bars, known as the "Dynamic Range." Furthermore, you have the flexibility to define up to three additional ranges manually using custom inputs. The lines and labels associated with these ranges can be fully customized in terms of style, color, and width to align with your personal preferences.
Dynamic Range Capabilities:
The indicator automatically generates a range by default, identifying the highest and lowest points within the last 200 bars. However, you have the ability to define the number of bars back by adjusting the setting in the menu. Moreover you can define the range based on either the wicks or the bodies of the candles.
The range includes the following components:
☀ Range High: The highest price point within the selected number of bars in the past
☀ Range Low: The lowest price point within the selected number of bars in the past
☀ Range Mid-Point: The calculated middle value between the Range High and Range Low
☀ First Quartile (Q1): The midpoint between the Range Low and the Range Mid-Point, effectively identifying the 25% level within the range
☀ Third Quartile (Q3): The midpoint between the Range Mid-Point and the Range High, identifying the 75% level within the range
By incorporating these critical levels within a price range, our Dynamic Range provides you with a comprehensive view of how the market evolves, enabling you to make more informed trading decisions.
Manual Ranges Capabilities:
In addition to the Dynamic Range, you can manually define up to three more ranges. By specifying your desired high and low price values as inputs, the system automatically draws the range based on your inputs. Once drawn, you can further adjust the range using the bar offset option, which allows you to shift the entire range backward or forward by a specified number of bars.
Each manually defined range includes the following components:
☀ Range High: Your user-defined highest price point
☀ Range Low: Your user-defined lowest price point
☀ Range Mid-Point: The calculated middle value between the Range High and Range Low
☀ First Quartile (Q1): The midpoint between the Range Low and the Range Mid-Point, identifying the 25% level within the range
☀ Third Quartile (Q3): The midpoint between the Range Mid-Point and the Range High, identifying the 75% level within the range
This allows you to precisely define your desired price range and visually represent it on the chart. The customizable manual ranges provide you with a powerful tool for analyzing price dynamics and identifying potential support and resistance levels.
Both Dynamic Range and Manual Ranges Capabilities:
a) Timeframe-Adaptive: This indicator dynamically adjusts to your selected timeframe. Whether you are a day trader or a long-term investor, this tool adapts to meet your needs.
b) Complete Customization: You have the flexibility to customize every aspect of "Custom Range Indicator". You can modify the color, style, and width of each of the five lines to seamlessly integrate them into your chart setup. Choose from various line styles, including solid, dashed, or dotted, and select colors that suit your visual preferences. Additionally, you can customize the color and text of the labels. Additionally, you can utilize the bar offset option to fine-tune the placement of the range within your analysis.
c) Hide Lines and Labels: You have the option to hide each line or label of the range individually, or hide the entire range with labels or without labels. This customization feature allows you to focus on specific aspects of the chart and declutter the visual representation of the ranges when needed.
Normalized Oscillators
Normalization is a process applied in data handling and statistics, and in the context of trading indicators, it can be incredibly useful. Trading indicators such as Volume, the Relative Strength Index (RSI), the Money Flow Index (MFI), and On Balance Volume (OBV), often vary in their range and scale.
Normalization adjusts these values to fit within a specific range, making different indicators directly comparable and aiding in the interpretation of their relationship and impact on price action. This can offer additional insights for traders, making it easier to identify trends, patterns, and potential trading signals across different indicators.
This indicator offers a selection of three oscillators to normalize and Volume Data:
☀Volume: The amount of a particular asset that is traded within a particular period.
☀Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements. It is typically used to identify overbought or oversold conditions in a market.
☀Money Flow Index (MFI): A momentum indicator that uses price and volume data to identify overbought or oversold signals in an asset.
☀On Balance Volume (OBV): A technical trading momentum indicator that uses volume flow to predict changes in price. It does this by cumulatively adding volume on days when the price increases, and subtracting volume on days when the price decreases.
This script also offers aesthetic customizations for the plot, which can enhance readability and visual appeal:
✔"Plot Color": This input lets users select the color of the plotted line on the chart, allowing for personalization and better visual differentiation when multiple indicators are used.
✔"Plot Width": Users can also adjust the thickness of the plotted line, enhancing visibility based on individual preference or screen resolution.
Why is useful the Normalization?
Normalization plays a crucial role in trading as it helps bring together diverse sets of information to support more informed decision-making. For instance, observing the correlation between the price chart and oscillators like On Balance Volume (OBV) near range levels can provide valuable insights.
Consider this example using a daily (1D) Ethereum (ETH) chart:
We observe that the price is at a Range Quarter, making a higher high while the OBV makes a higher low. This scenario presents a significant degree of confluence. The price is at a critical range level and there is a bearish divergence between the OBV and the price. Such confluence often indicates a potential shift in market dynamics, and as observed, the price trends lower subsequently.
Below is the same scenario represented on a linear chart, providing a clearer visualization:
Normalization enables us to make these comparisons more accurately, ultimately leading to more reliable trading signals and better trading outcomes. By adjusting the scale of various indicators to a standard range, traders can directly compare and correlate them to price action, making it easier to spot trends, divergences, and other key market patterns.
Keep attention!
It is important to note that no trading indicator or strategy is foolproof, and there is always a risk of losses in trading. While this indicator may provide useful information for making conclusions, it should not be used as the sole basis for making trading decisions. Traders should always use proper risk management techniques and consider multiple factors when making trading decisions.
Custom Range Creator is a specialized trading tool designed for traders who incorporate range analysis into their trading strategy.
Once you set the desired number of past candles or provide a manual input, the indicator will automatically draw a range for you. This unique feature allows you to customize the range based on the highest and lowest points within a specified number of bars, known as the "Dynamic Range." Furthermore, you have the flexibility to define up to three additional ranges manually using custom inputs. The lines and labels associated with these ranges can be fully customized in terms of style, color, and width to align with your personal preferences.
Dynamic Range Capabilities:
The indicator automatically generates a range by default, identifying the highest and lowest points within the last 200 bars. However, you have the ability to define the number of bars back by adjusting the setting in the menu. Moreover you can define the range based on either the wicks or the bodies of the candles.
The range includes the following components:
☀ Range High: The highest price point within the selected number of bars in the past
☀ Range Low: The lowest price point within the selected number of bars in the past
☀ Range Mid-Point: The calculated middle value between the Range High and Range Low
☀ First Quartile (Q1): The midpoint between the Range Low and the Range Mid-Point, effectively identifying the 25% level within the range
☀ Third Quartile (Q3): The midpoint between the Range Mid-Point and the Range High, identifying the 75% level within the range
By incorporating these critical levels within a price range, our Dynamic Range provides you with a comprehensive view of how the market evolves, enabling you to make more informed trading decisions.
Manual Ranges Capabilities:
In addition to the Dynamic Range, you can manually define up to three more ranges. By specifying your desired high and low price values as inputs, the system automatically draws the range based on your inputs. Once drawn, you can further adjust the range using the bar offset option, which allows you to shift the entire range backward or forward by a specified number of bars.
Each manually defined range includes the following components:
☀ Range High: Your user-defined highest price point
☀ Range Low: Your user-defined lowest price point
☀ Range Mid-Point: The calculated middle value between the Range High and Range Low
☀ First Quartile (Q1): The midpoint between the Range Low and the Range Mid-Point, identifying the 25% level within the range
☀ Third Quartile (Q3): The midpoint between the Range Mid-Point and the Range High, identifying the 75% level within the range
This allows you to precisely define your desired price range and visually represent it on the chart. The customizable manual ranges provide you with a powerful tool for analyzing price dynamics and identifying potential support and resistance levels.
Both Dynamic Range and Manual Ranges Capabilities:
a) Timeframe-Adaptive: This indicator dynamically adjusts to your selected timeframe. Whether you are a day trader or a long-term investor, this tool adapts to meet your needs.
b) Complete Customization: You have the flexibility to customize every aspect of "Custom Range Indicator". You can modify the color, style, and width of each of the five lines to seamlessly integrate them into your chart setup. Choose from various line styles, including solid, dashed, or dotted, and select colors that suit your visual preferences. Additionally, you can customize the color and text of the labels. Additionally, you can utilize the bar offset option to fine-tune the placement of the range within your analysis.
c) Hide Lines and Labels: You have the option to hide each line or label of the range individually, or hide the entire range with labels or without labels. This customization feature allows you to focus on specific aspects of the chart and declutter the visual representation of the ranges when needed.
Normalized Oscillators
Normalization is a process applied in data handling and statistics, and in the context of trading indicators, it can be incredibly useful. Trading indicators such as Volume, the Relative Strength Index (RSI), the Money Flow Index (MFI), and On Balance Volume (OBV), often vary in their range and scale.
Normalization adjusts these values to fit within a specific range, making different indicators directly comparable and aiding in the interpretation of their relationship and impact on price action. This can offer additional insights for traders, making it easier to identify trends, patterns, and potential trading signals across different indicators.
This indicator offers a selection of three oscillators to normalize and Volume Data:
☀Volume: The amount of a particular asset that is traded within a particular period.
☀Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements. It is typically used to identify overbought or oversold conditions in a market.
☀Money Flow Index (MFI): A momentum indicator that uses price and volume data to identify overbought or oversold signals in an asset.
☀On Balance Volume (OBV): A technical trading momentum indicator that uses volume flow to predict changes in price. It does this by cumulatively adding volume on days when the price increases, and subtracting volume on days when the price decreases.
This script also offers aesthetic customizations for the plot, which can enhance readability and visual appeal:
✔"Plot Color": This input lets users select the color of the plotted line on the chart, allowing for personalization and better visual differentiation when multiple indicators are used.
✔"Plot Width": Users can also adjust the thickness of the plotted line, enhancing visibility based on individual preference or screen resolution.
Why is useful the Normalization?
Normalization plays a crucial role in trading as it helps bring together diverse sets of information to support more informed decision-making. For instance, observing the correlation between the price chart and oscillators like On Balance Volume (OBV) near range levels can provide valuable insights.
Consider this example using a daily (1D) Ethereum (ETH) chart:
We observe that the price is at a Range Quarter, making a higher high while the OBV makes a higher low. This scenario presents a significant degree of confluence. The price is at a critical range level and there is a bearish divergence between the OBV and the price. Such confluence often indicates a potential shift in market dynamics, and as observed, the price trends lower subsequently.
Below is the same scenario represented on a linear chart, providing a clearer visualization:
Normalization enables us to make these comparisons more accurately, ultimately leading to more reliable trading signals and better trading outcomes. By adjusting the scale of various indicators to a standard range, traders can directly compare and correlate them to price action, making it easier to spot trends, divergences, and other key market patterns.
Keep attention!
It is important to note that no trading indicator or strategy is foolproof, and there is always a risk of losses in trading. While this indicator may provide useful information for making conclusions, it should not be used as the sole basis for making trading decisions. Traders should always use proper risk management techniques and consider multiple factors when making trading decisions.
הערות שחרור:
Updated the Author's instructions.
הערות שחרור:
Updated the script with two more features.
1) Wick Percentage Selector and Customization: This update allows you to establish your own threshold for the percentage of both lower and upper wicks. Once set, the system will color the bodies of the candles that meet these criteria with a customizable color. Additionally, the mid-point (50% level) of each qualifying wick will be highlighted, the properties of which (color, width, and style) are also adjustable. This feature provides a tailored perspective on significant wick lengths and their mid-points, enhancing your ability to interpret potential reversals and price rejection levels.
This is how the menu look like:
This is how the candles look like:
2) Enhanced and Customizable Moving Averages: The update includes an advanced moving average feature that allows you to select up to three moving averages to be viewed simultaneously. Options include SMA, EMA, WMA, HMA, RMA, SWMA, and VWMA. Each moving average can be customized according to your preference in terms of length, type, color, width, and style. This provides a more personalized and comprehensive visual representation of price trends and movements.
1) Wick Percentage Selector and Customization: This update allows you to establish your own threshold for the percentage of both lower and upper wicks. Once set, the system will color the bodies of the candles that meet these criteria with a customizable color. Additionally, the mid-point (50% level) of each qualifying wick will be highlighted, the properties of which (color, width, and style) are also adjustable. This feature provides a tailored perspective on significant wick lengths and their mid-points, enhancing your ability to interpret potential reversals and price rejection levels.
This is how the menu look like:
This is how the candles look like:
2) Enhanced and Customizable Moving Averages: The update includes an advanced moving average feature that allows you to select up to three moving averages to be viewed simultaneously. Options include SMA, EMA, WMA, HMA, RMA, SWMA, and VWMA. Each moving average can be customized according to your preference in terms of length, type, color, width, and style. This provides a more personalized and comprehensive visual representation of price trends and movements.
הערות שחרור:
Introduced the "Color Mid Wick Only" input feature. This allows for customization wherein you can choose to color only the mid-section (50% level) of the wick or have the entire candle body colored as well. Tailor your visuals according to your preferences for a more focused analysis.
הערות שחרור:
Volume SMA Filter for Wicks (Optional): This update introduces an optional feature allowing users to filter wicks based on a volume threshold determined by a simple moving average (SMA). By enabling this option and defining a length for the volume SMA, users can apply this as an additional criteria to the existing wick percentage selector. This ensures that only wicks meeting both the specified minimum percentage and accompanying volume exceeding the SMA threshold are considered relevant.
הערות שחרור:
1) We removed the Volume SMA Filter for Wicks, and we have created a more complete method for wick analysis. We now use a system that detects the average percentage price change of a candle over a lookback period. Since the wick analysis requires focusing on candles with a high percentage change, we introduced a multiplier option, allowing you to multiply the percentage price change to identify the top candles. After filtering the candles, you can proceed with the same concept that we introduced to decide what percentage will be the lower wick or the upper wick compared to the body of the candle. We have implemented three inputs, so you can decide on up to three different multipliers and three different wick sizes.
2) We introduced a mechanism that deletes the 50% and 100% wick levels if they get filled in the future.
3) We introduced a system that creates a band from the wick, so in addition to the lines that can be extended to the recent price action, these acts kind like order blocks that help you more clearly identify where old, unfilled wicks are located. Also, these bands are deleted when the price fills those levels.
2) We introduced a mechanism that deletes the 50% and 100% wick levels if they get filled in the future.
3) We introduced a system that creates a band from the wick, so in addition to the lines that can be extended to the recent price action, these acts kind like order blocks that help you more clearly identify where old, unfilled wicks are located. Also, these bands are deleted when the price fills those levels.
הערות שחרור:
Note: For a more user-friendly experience, we have added the ability to change values by increments of 0.1 using the arrow keys in the settings menu. To ensure that you fully absorb these updates, please remember to remove the current indicator from your charts and re-add it. This process will allow you to take advantage of the latest enhancements.
הערות שחרור:
New Features:
Timeframe Adaptive Range Calculation: The indicator now adapts the number of candles in the range calculation based on the selected timeframe. For example, for a 1-day timeframe, it uses 200 days of data. Users can expect similar adaptations for other timeframes.
Timeframe Adaptive Average % Change: The average percentage change is also now adaptive according to the timeframe. The calculations differ based on whether you're using a 1-day, 1-hour, or even a 1-minute chart, among others.
Improvements:
HTF Adaptive Multiplier: Introduced a new setting that allows the indicator to automatically select appropriate multipliers for High Time Frame (HTF) data. When activated, this setting adjusts the higher and lower multipliers based on the chosen timeframe.
User Flexibility:
Custom Range & Lookback: For those who prefer fixed values, it is still possible to select a predetermined number of candles for both range calculation and average percent change.
Timeframe Adaptive Range Calculation: The indicator now adapts the number of candles in the range calculation based on the selected timeframe. For example, for a 1-day timeframe, it uses 200 days of data. Users can expect similar adaptations for other timeframes.
Timeframe Adaptive Average % Change: The average percentage change is also now adaptive according to the timeframe. The calculations differ based on whether you're using a 1-day, 1-hour, or even a 1-minute chart, among others.
Improvements:
HTF Adaptive Multiplier: Introduced a new setting that allows the indicator to automatically select appropriate multipliers for High Time Frame (HTF) data. When activated, this setting adjusts the higher and lower multipliers based on the chosen timeframe.
User Flexibility:
Custom Range & Lookback: For those who prefer fixed values, it is still possible to select a predetermined number of candles for both range calculation and average percent change.
הערות שחרור:
1) Introduction of Stochastic RSI Signal Detection:
We've introduced a feature allowing users to detect trend reversals using the Stochastic RSI.
Bullish Signal:
-Initiation: Stochastic RSI crosses up below the 20 level.
-Confirmation: Stochastic RSI moves above the 20 level after the cross-up.
-Filtering: Users can opt to see signals that occur when the entire candle is below a chosen Moving Average (either SMA or EMA).
Bearish Signal:
-Initiation: Stochastic RSI crosses down above the 80 level.
-Confirmation: Stochastic RSI moves below the 80 level after the cross-down.
-Filtering: Signals can be filtered to occur only when the entire candle is above the selected Moving Average.
Customizability:
-Moving Average Selection: Choose between SMA (Simple Moving Average) or EMA (Exponential Moving Average) for signal filtering.
-MA Period Selection: Define the period or length of the chosen moving average to filter the Stochastic RSI signals.
2) Advanced Visualization for Oscillator:
-The visualization of normalized oscillators has been enhanced, giving users the option to view them inside or outside of a defined range.
We've introduced a feature allowing users to detect trend reversals using the Stochastic RSI.
Bullish Signal:
-Initiation: Stochastic RSI crosses up below the 20 level.
-Confirmation: Stochastic RSI moves above the 20 level after the cross-up.
-Filtering: Users can opt to see signals that occur when the entire candle is below a chosen Moving Average (either SMA or EMA).
Bearish Signal:
-Initiation: Stochastic RSI crosses down above the 80 level.
-Confirmation: Stochastic RSI moves below the 80 level after the cross-down.
-Filtering: Signals can be filtered to occur only when the entire candle is above the selected Moving Average.
Customizability:
-Moving Average Selection: Choose between SMA (Simple Moving Average) or EMA (Exponential Moving Average) for signal filtering.
-MA Period Selection: Define the period or length of the chosen moving average to filter the Stochastic RSI signals.
2) Advanced Visualization for Oscillator:
-The visualization of normalized oscillators has been enhanced, giving users the option to view them inside or outside of a defined range.
הערות שחרור:
Removed the static ranges since they don't remain fixed like lines drawn on the chart. The majority of users prefer to have only the dynamic range.
Tik Tok: @tradingparadise.io