ADX Momentum Shaded CandlesDescription:
The "ADX Momentum Shaded Candles" indicator (ADXMSC) is an overlay indicator that enhances candlestick charts by adding shading based on the momentum derived from the Average Directional Index (ADX). This indicator provides visual cues about the strength of bullish and bearish momentum by adjusting the transparency of the candlesticks.
How it Works:
The indicator utilizes the ADX indicator to calculate the values of +DI (Directional Indicator Plus) and -DI (Directional Indicator Minus) based on user-defined parameters. It then determines the transparency levels for the bullish and bearish candlesticks based on the calculated values of +DI and -DI. Higher values of +DI or -DI result in lower transparency levels, while lower values increase transparency.
Transparency Calculation:
The transparency of the bullish and bearish candlesticks is adjusted based on the values of +DI and -DI, which reflect the momentum of the price movement. Transparency is inversely proportional to these values, with higher values resulting in lower transparency. To calculate transparency, the indicator uses the formula 100 minus the value of +DI or -DI multiplied by 2. This ensures that higher values of +DI or -DI produce more opaque candlesticks.
Usage:
To effectively use the "ADX Momentum Shaded Candles" indicator (ADXMSC), follow these steps:
1. Apply the indicator to your chart by adding it from the available indicators.
2. Observe the candlesticks on the chart:
- Bullish candlesticks are represented by the original bullish color with adjusted transparency.
- Bearish candlesticks are represented by the original bearish color with adjusted transparency.
3. Analyze the transparency levels of the candlesticks to assess the strength of bullish and bearish momentum. Less transparent candlesticks indicate stronger momentum, while more transparent ones suggest weaker momentum.
4. Combine the visual information from the shaded candlesticks with other technical analysis tools, such as support and resistance levels, trend lines, or oscillators, to confirm potential trade opportunities.
5. Customize the indicator's parameters, such as the ADX length and smoothing, to suit your trading preferences.
6. Implement appropriate risk management strategies, including setting stop-loss orders and position sizing, to manage your trades effectively and protect your capital.
Diplus
ADX Divergence IndicatorDescription:
The ADX Divergence Indicator (ADXDI) is a technical analysis tool designed to identify potential bullish and bearish signals based on the Average Directional Index (ADX), the Positive Directional Indicator (+DI), and the Negative Directional Indicator (-DI) lines. This overlay indicator plots circles on the chart to highlight these signals.
How it Works:
The ADXDI calculates the ADX, +DI, and -DI values using user-defined parameters. It then evaluates specific conditions to determine potential bullish and bearish signals. The indicator considers rising and falling trends of the +DI and -DI lines, as well as changes in the ADX values. Additionally, it detects a bounce condition when the current ADX is less than the previous ADX value and that ADX value is higher than the one previous to it.
Usage:
To effectively utilize the ADX Divergence Indicator, follow these steps:
1. Apply the ADX Divergence Indicator to your chart by adding it from the available indicators.
2. Observe the circles plotted on the chart:
- Bullish circles (green by default) indicate potential bullish signals.
- Bearish circles (red by default) indicate potential bearish signals.
4. Interpret the signals provided by the indicator:
- A bullish signal occurs when the +DI line rises and the -DI line falls.
- A bearish signal occurs when the -DI line rises and the +DI line falls.
- The presence of a bounce condition (ADX < ADX and ADX > ADX) further strengthens the signal.
5. Combine the signals from the ADX Signals indicator with other technical analysis tools, such as support and resistance levels, trend lines, or candlestick patterns, to confirm potential trade setups.
6. Customize the indicator's parameters, such as the lengths of the DI and ADX calculations or the colors of the plotted circles, to suit your trading preferences.
7. Implement appropriate risk management strategies, including setting stop-loss orders and position sizing, to manage your trades effectively and protect your capital.
DMI Trade Zone [Alorse]Through the DMI Trade Zone you can find safe areas to trade in the Spot market.
The logic behind the indicator is:
- If the Positive Directional Movement (+DI) is greater than the Negative Directional Movement (-DI) then the Average Directional Movement Index (ADX) will be green with an opaque white background.
- If the Positive Directional Movement (+DI) is less than the Negative Directional Movement (-DI) then the Average Directional Movement Index (ADX) will be red.
Dual SuperTrend, Ichimoku and DMI Color Weighted by DGTThis study interprets SuperTrend with Ichimoku Cloud, one of the popular technical analysis indicator, and interprets Directional Movement (DMI), which is another quite valuable technical analysis indicator.
Then combines the interpreted SuperTrend with interpreted Directional Movement (DMI) and Volume Based Colored Bars indicator created by Kıvaç ÖZBİLGİÇ (permission has been granted from the author)
Here are details of the concept applied
1- SuperTrend Line colored based on Ichimoku Cloud
Definition
The Ichimoku Cloud, developed by Goichi Hosoda and published in the late 1960s, is a collection of technical indicators that give it a unique capacity to show support and resistance levels, momentum and trend direction
What Does the Ichimoku Cloud Tells?
The overall trend is up when price is above the cloud, known as Kumo Cloud, down when price is below the Kumo Cloud, and trendless or transitioning when price is in the Kumo Cloud
When Senkou Span A (Leading Span A) is rising and above Senkou Span B (Leading Span B), this helps confirm the uptrend and space between the lines is typically colored green. When Senkou Span A is falling and below Senkou Span B, this helps confirm the downtrend. The space between the lines is typically colored red
Traders often use the Kumo Cloud as an area of support and resistance depending on the relative location of the price. The Kumo Cloud provides support/resistance levels that can be projected into the future. This sets the Ichimoku Cloud apart from many other technical indicators that only provide support and resistance levels for the current date and time
Crossovers, also known as TK Cross among Ichimoku Cloud traders, are another way the indicator can be used. Watch for the Tenkan-Sen Line, or Conversion Line, to move above the Kijun-Sen Line, or Base Line, especially when price is above the Kumo cloud. This can be a powerful buy signal. One option is to hold the trade until the Tenkan-Sen drops back below the Kijun-Sen Line. Any of the other lines could be used as exit points as well.
With this study:
Allow Traders to use the Ichimoku Cloud in conjunction with other technical indicators to maximize their risk-adjusted returns
The Ichimoku Cloud can make a chart look busy with all the lines. To Remedy this a different approach is applied in this study showing the Price and the Kumo Cloud relation as well as TK Crosses displayed. The SuperTrend Indicator is chosen to display Ichimoku Indicator, where the SuperTrend is another trend following indicator.
How it works:
SuperTrend Line is colored as:
Green when the Price is above the Kumo Cloud
Red when the Price is below the Kumo Cloud
Black when the Price is within the Kumo Cloud
And Finally Blue when the Kumo Cloud Is not ready to be drawn or not Kumo Cloud available
Additionally intensity of the colors used in all cases above are defined by values of Tenkan-Sen and Kijun-Sen Line, which allows us to detect TK Crosses
2- Plots Colored Directional Movement Line
Definition
Directional Movement (DMI) (created by J. Welles Wilder ) is actually a collection of three separate indicators combined into one. Directional Movement consists of the Average Directional Index (ADX) , Plus Directional Indicator (+D I) and Minus Directional Indicator (-D I) . ADX's purposes is to define whether or not there is a trend present. It does not take direction into account at all. The other two indicators (+DI and -DI) are used to compliment the ADX. They serve the purpose of determining trend direction. By combining all three, a technical analyst has a way of determining and measuring a trend's strength as well as its direction.
This study combines all three lines in a single colored shapes series plotted on the top of the price chart indicating the trend strength with different colors and its direction with triangle up and down shapes.
What to look for
Trend Strength : Analyzing trend strength is the most basic use for the DMI. Wilder believed that a DMI reading above 25 indicated a strong trend, while a reading below 20 indicated a weak or non-existent trend
Crosses : DI Crossovers are the significant trading signal generated by the DMI
With this study
A Strong Trend is assumed when ADX >= 25
Bullish Trend is defined as (+D I > -DI ) and (ADX >= 25), which is plotted as green triangle up shape on top of the price chart
Bearish Trend is defined as (+D I < -DI ) and (ADX >= 25), which is plotted as red triangle down shape on top of the price chart
Week Trend is assumed when 17< ADX < 25, which is plotted as black triangles up or down shape, depending on +DI-DI values, on top of the price chart
Non-Existent Trend is assumed when ADX < 17, which is plotted as yellow triangles up or down shape, depending on +DI-DI values, on top of the price chart
Additionally intensity of the colors used in all cases above are defined by comparing ADX’s current value with its previous value
3- Volume Based Colored Bars indicator created by Kıvaç ÖZBİLGİÇ
Volume Based Colored Bars colors the bars into volume weighted signals increasing the visibility of the Volume changes. Intensity of the colors of the bars varies according to average value of the volume for given length of bars (default value set to 30 bars)
Disclaimer: The script is for informational and educational purposes only. Use of the script does not constitutes professional and/or financial advice. You alone the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd tradingview user liable for any possible claim for damages arising from any decision you make based on use of the script
Colored Directional Movement and Bollinger Band's Cloud by DGTThis study combines Bollinger Bands, one of the most popular technical analysis indicators on the market, and Directional Movement (DMI), which is another quite valuable technical analysis indicator.
Bollinger Bands used in conjunction with Directional Movement (DMI) may help getting a better understanding of the ever changing landscape of the market and perform more advanced technical analysis
Here are details of the concept applied
1- Plots Bollinger Band’s (BB) Cloud colored based on Bollinger Band Width (BBW) Indicator’s value
Definition
Bollinger Bands (created by John Bollinger ) are a way to measure volatility . As volatility increases, the wider the bands become and similarly as volatility decreases, the gap between bands narrows
Bollinger Bands, in widely used approach, consist of a band of three lines. Likewise common usage In this study a band of five lines is implemented
The line in the middle is a Simple Moving Average (SMA) set to a period of 20 bars (the most popular usage). The SMA then serves as a base for the Upper and Lower Bands. The Upper and Lower Bands are used as a way to measure volatility by observing the relationship between the Bands and price. the Upper and Lower Bands in this study are set to two and three standard deviations (widely used form is only two standard deviations) away from the SMA (The Middle Line), hence there are two Upper Bands and two Lower Bands. The background between two Upper Bands is filled with a green color and the background between two Lower Bands is filled with a red color. In this we have obtained Bollinger Band’s (BB) Clouds (Upper Cloud and Lower Cloud)
Additionally the intensity of the color of the background is calculated with Bollinger Bands Width ( BBW ), which is a technical analysis indicator derived from the standard Bollinger Bands indicator. Bollinger Bands Width, quantitatively measures the width between the Upper and Lower Bands. In this study the intensity of the color of the background is increased if BBW value is greater than %25
What to look for
Price Actions : Prices are almost always within the bands especially at this study the bands of three standard deviations away from the SMA. Price touching or breaking the BB Clouds could be considered as buying or selling opportunity. However this is not always the case, there are exceptions such as Walking the Bands. “Walking the Bands” can occur in either a strong uptrend or a strong downtrend. During a strong trend, there may be repeated instances of price touching or breaking through the BB Clouds. Each time that this occurs, it is not a signal, it is a result of the overall strength of the move. In this study in order to get a better understanding of the trend and add ability to perform some advanced technical analysis Directional Movement Indicator (DMI) is added to be used in conjunction with Bollinger Bands.
Cycling Between Expansion and Contraction : One of the most well-known theories in regards to Bollinger Bands is that volatility typically fluctuates between periods of expansion (Bands Widening : surge in volatility and price breaks through the BB Cloud) and contraction (Bands Narrowing : low volatility and price is moving relatively sideways). Using Bollinger Bands in conjunction with Bollinger Bands Width may help identifying beginning of a new directional trend which can result in some nice buying or selling signals. Of course the trader should always use caution
2- Plots Colored Directional Movement Line
Definition
Directional Movement (DMI) (created by J. Welles Wilder ) is actually a collection of three separate indicators combined into one. Directional Movement consists of the Average Directional Index (ADX) , Plus Directional Indicator (+D I) and Minus Directional Indicator (-D I) . ADX's purposes is to define whether or not there is a trend present. It does not take direction into account at all. The other two indicators (+DI and -DI) are used to compliment the ADX. They serve the purpose of determining trend direction. By combining all three, a technical analyst has a way of determining and measuring a trend's strength as well as its direction.
This study combines all three lines in a single colored shapes series plotted on the top of the price chart indicating the trend strength with different colors and its direction with triangle up and down shapes.
What to look for
Trend Strength : Analyzing trend strength is the most basic use for the DMI. Wilder believed that a DMI reading above 25 indicated a strong trend, while a reading below 20 indicated a weak or non-existent trend
Crosses : DI Crossovers are the significant trading signal generated by the DMI
With this study
A Strong Trend is assumed when ADX >= 25
Bullish Trend is defined as (+D I > -DI ) and (ADX >= 25), which is plotted as green triangle up shape on top of the price chart
Bearish Trend is defined as (+D I < -DI ) and (ADX >= 25), which is plotted as red triangle down shape on top of the price chart
Week Trend is assumed when 17< ADX < 25, which is plotted as black triangles up or down shape, depending on +DI-DI values, on top of the price chart
Non-Existent Trend is assumed when ADX < 17, which is plotted as yellow triangles up or down shape, depending on +DI-DI values, on top of the price chart
Additionally intensity of the colors used in all cases above are defined by comparing ADX’s current value with its previous value
Summary of the Study:
Even more simplified and visually enhanced DMI drawing comparing to its classical usage (may require a bit practice to get used to it)
As said previously, to get a better understanding of the trend and add ability to perform some advanced technical analysis Directional Movement Indicator (DMI) is used in conjunction with Bollinger Bands.
PS: Analysis and tests are performed with high volatile Cryptocurrency Market
Source of References : definitions provided herein are gathered from TradingView’s knowledgebase/library
Disclaimer: The script is for informational and educational purposes only. Use of the script does not constitutes professional and/or financial advice. You alone the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd tradingview user liable for any possible claim for damages arising from any decision you make based on use of the script
