CPR by MTThe CPR indicator, or Central Pivot Range indicator, is a technical analysis tool used in trading to identify potential support and resistance levels based on the price action of a security. Developed by pivot point theory, it is particularly popular among day traders and swing traders. The CPR indicator consists of three lines:
1. **Pivot Point (PP):** This is the central line and is calculated as the average of the high, low, and closing prices from the previous trading period.
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2. **Top Central Pivot (TC):** This is calculated by subtracting the low from the PP and then adding the result to the PP.
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3. **Bottom Central Pivot (BC):** This is calculated by subtracting the high from the PP and then adding the result to the PP.
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### How to Use the CPR Indicator
- **Trend Identification:** A wide CPR range indicates low volatility and a potential sideways or consolidation phase. A narrow CPR range indicates high volatility and a potential strong trending move.
- **Support and Resistance:** The top and bottom central pivots act as immediate resistance and support levels. If the price is above the TC, it indicates a bullish sentiment, while if it is below the BC, it indicates a bearish sentiment.
- **Entry and Exit Points:** Traders use the CPR lines to determine optimal entry and exit points. For example, if the price breaks above the TC and sustains, it may signal a buy opportunity, whereas a drop below the BC may signal a sell opportunity.
### Practical Example
Suppose a stock had a high of $105, a low of $95, and a closing price of $100 on the previous day. The CPR levels for the next day would be calculated as follows:
1. **Pivot Point (PP):**
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2. **Top Central Pivot (TC):**
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3. **Bottom Central Pivot (BC):**
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The levels for the next day would be PP = $100, TC = $110, and BC = $90. Traders would then use these levels to assess potential trading strategies based on where the price moves relative to these levels.
### Conclusion
The CPR indicator is a useful tool for traders looking to understand market conditions and make informed decisions about entry and exit points. Its effectiveness comes from its ability to highlight key price levels derived from historical price data, helping traders predict potential market movements.
Educational
Juice RemedyThis Remedy suite is a remake of the Auto Remedy suite.
We have improved the performance and added a few new features.
Updated:
- Converted some boxes to lines to mitigate the limit of 500.
- Rewrote the code and disabled blocks if features are turned off
New features:
- RSI based candle colors
- Added features to limit historical renders
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RSI Candles tells you the RSI and volatility by coloring the candlesticks. The different stages are: overbought, oversold, neutral and a top and bottom RSI / EMA crossover.
There is also an option to enable the RSI signal on the chart to see when it's entering an overbought or oversold area.
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Volume Profile displays a vertical histogram on the right side of the price chart, representing the volume traded at each price level. The length of each bar corresponds to the total volume traded at that particular price level. Traders can analyze the shape and distribution of the Volume Profile to gain valuable information about the market structure.
Here's how Volume Profile is used and applied in trading:
Identifying Areas of High Volume:
Volume Profile helps traders identify areas of high trading activity. Peaks in the Volume Profile histogram indicate price levels where significant buying or selling pressure was present. These areas can act as support or resistance levels in the future, as they represent levels where traders have previously shown interest.
Understanding Price Acceptance and Rejection:
Volume Profile assists in determining whether the market has accepted or rejected specific price levels. When the volume is higher at a particular price level, it suggests that traders have accepted that price and consider it fair. On the other hand, low volume at a price level indicates rejection, suggesting that traders are not willing to transact at that price.
Identifying Value Areas:
Volume Profile can help identify value areas, which are price regions where the most volume has been traded. These areas are considered significant as they reflect levels where the market has found fair value and attracted substantial trading activity. Traders often pay attention to these value areas as potential support or resistance zones.
Confirming Breakouts and Reversals:
Volume Profile can be used to confirm the validity of breakouts and reversals. If a price breaks out of a range with high volume, it suggests strong conviction and increases the likelihood of a sustained move. Similarly, if a price reverses near a high-volume area, it provides additional confirmation of a potential trend reversal.
Assessing Market Sentiment:
By analyzing the shape and structure of the Volume Profile, traders can gain insights into market sentiment. A balanced Volume Profile with volume evenly distributed across price levels indicates a neutral market. Skewed or asymmetrical Volume Profiles may suggest bullish or bearish sentiment, depending on where the volume is concentrated.
It's important to note that traders often combine Volume Profile with price patterns, trendlines, and momentum indicators to validate signals and develop a comprehensive understanding of the market.
By studying the Volume Profile, traders can gain a clearer picture of where significant trading activity has occurred and identify levels of potential support, resistance, and value. This information can assist in making more informed trading decisions and improving overall market analysis.
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VWAP(Volume Weighted Average Price) is a technical analysis tool that calculates the average price weighted by trading volume over a specified time period. It provides traders with insights into the average price at which a particular asset has traded during a given period, considering the volume traded at each price level.
Here's a general explanation of VWAP and its application in trading:
Calculation of VWAP:
VWAP is calculated by multiplying the price of each trade by its corresponding volume, summing these values over a specific time period, and dividing the total by the cumulative volume. The calculation continuously updates as new trades occur within the specified time frame.
Interpretation of VWAP:
VWAP is primarily used as a reference point to assess whether a current price is relatively high or low compared to the average price weighted by volume. Traders compare the current price to the VWAP to gauge whether the price is trading above or below the average level. If the price is above VWAP, it suggests that the asset is trading at a premium, while a price below VWAP indicates a discount.
VWAP as a Trading Indicator:
Traders use VWAP in various ways to support their trading decisions. Here are a few common applications:
a. Trend Identification: Traders analyze the relationship between the current price and VWAP to identify the prevailing market trend. If the price consistently trades above VWAP, it is often seen as a bullish signal, while prices below the VWAP is considered a bearish signal. This approach helps traders align their trades with the overall market direction.
b. Support and Resistance Levels: VWAP can act as a dynamic support or resistance level. Traders observe how the price reacts when approaching the VWAP. If the price bounces off the VWAP and continues in the direction of the prevailing trend, it may indicate support or resistance. Traders can use the VWAP as a reference for setting stop-loss levels or determining potential entry or exit points.
c. Reversal Signals: In some cases, when the price deviates significantly from VWAP, it may indicate overbought or oversold conditions. Traders watch for price reversals when the price moves away from the VWAP, potentially signaling a short-term market reversal.
d. Volume Analysis: VWAP considers volume along with price, providing insights into the significance of price moves. Traders analyze the relationship between volume and VWAP to evaluate the strength of price movements. Higher volume trading near the VWAP may suggest increased market interest and potential continuation of the trend.
It's worth noting that the VWAP is often used in intra-day trading and is more relevant for short-term analysis. Traders typically adjust the VWAP time frame based on their trading style and the asset being analyzed.
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The Zig Zag works by filtering out price movements below a certain threshold (percentage or points) and only displaying significant price changes. This helps to eliminate minor price fluctuations and focus on the more substantial market movements.
When applying the Zig Zag indicator, traders typically select a percentage or point value as the threshold. For example, if a 5% threshold is chosen, the Zig Zag indicator will only plot a new point when the price has moved up or down by at least 5% from the previous significant high or low.
The indicator plots lines connecting the significant highs and lows on the price chart, creating a zigzag pattern. The lines are drawn in a way that reflects the change in the trend direction. The indicator can be adjusted to suit different timeframes and trading styles.
The primary purpose of the Zig Zag indicator is to identify and highlight trend reversals and price swings. Traders often use it to:
Identify major turning points: The Zig Zag indicator helps traders spot major highs and lows in the price action. These levels can act as potential support or resistance areas for future price movements.
Filter out noise: By filtering out minor price fluctuations, the Zig Zag indicator helps traders focus on the more significant price moves and trends. This can provide a clearer picture of the overall market direction.
Confirm chart patterns: The Zig Zag indicator can be used to confirm the validity of chart patterns, such as trendlines, channels, or chart formations. It can help traders validate breakouts, pullbacks, or continuation patterns.
Set trailing stops: Traders may use the Zig Zag indicator to set trailing stops based on the significant swing highs and lows. This allows them to trail their stop-loss orders behind the price action and potentially lock in profits as the trend develops.
Additionally, it's essential to customize the settings of the Zig Zag indicator according to the specific market being analyzed, as different markets and timeframes may require different threshold values for optimal performance.
Please keep in mind that while the Zig Zag indicator can provide valuable insights, it should be used alongside other analysis tools and not solely relied upon for trading decisions.
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Fibonacci extensions and retracements are both technical analysis tools that traders use to identify potential levels of support and resistance in financial markets. Here's a clear understanding of each concept and how they are used in trading:
1. Fibonacci Retracement:
Fibonacci retracement is based on the idea that after an upward or downward price movement, the price tends to retrace a portion of that move before continuing in the original direction. The key levels used in Fibonacci retracement are based on ratios derived from the Fibonacci sequence, such as 0.382 (38.2%), 0.500 (50%), and 0.618 (61.8%).
To apply Fibonacci retracements, traders typically select two significant points on a price chart: a swing high and a swing low. The retracement levels are then plotted as horizontal lines based on the Fibonacci ratios. These levels act as potential support (in an uptrend) or resistance (in a downtrend) where the price may reverse or consolidate before resuming the overall trend.
Traders often use Fibonacci retracement levels to identify potential entry or exit points, place stop-loss orders, or assess the strength of a trend. The most commonly used retracement levels are 38.2%, 50%, and 61.8%, but other Fibonacci ratios like 23.6% and 78.6% are also sometimes used.
2. Fibonacci Extension:
Fibonacci extension is used to identify potential price targets beyond the initial trend or price move. It helps traders determine where the price may reach once it surpasses the previous swing high or swing low.
Similar to Fibonacci retracement, Fibonacci extension levels are derived from the Fibonacci sequence. The most commonly used extension levels are 138.2%, 161.8%, 261.8%, and 423.6%, although other ratios can also be applied.
To use Fibonacci extension, traders select three points on a price chart: a swing low, a swing high (corresponding to the previous trend), and a subsequent swing low or swing high (from where the extension is projected). The extension levels are then projected beyond the swing high or swing low, acting as potential price targets or areas of interest.
Fibonacci extension levels are often used to determine potential profit targets or to identify areas where a trend may reverse or consolidate. Traders may also use extensions in conjunction with other technical analysis tools to confirm trade signals or assess the overall market structure
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The Pitchfan tool is based on the concept of Andrew's Pitchfork, which is a popular technical analysis tool developed by Dr. Alan H. Andrews. It consists of three parallel trendlines that are drawn to encompass the price action of an asset. The trendlines are typically drawn by connecting three significant points on a price chart - usually a pivot high, a pivot low, and another pivot high.
Once the Pitchfork is plotted, the Pitchfan tool extends the concept by adding additional trendlines that are parallel to the original Pitchfork. These additional trendlines are drawn based on certain mathematical ratios (e.g., Fibonacci ratios) applied to the distance between the original trendlines.
The Pitchfan can be used to identify potential support and resistance levels, as well as potential areas for price reversal or continuation. Traders may look for price reactions near these trendlines, with the expectation that the price may find support or encounter resistance at these levels.
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Higher timeframe opens refer to the opening prices of different sessions or timeframes above the one being currently analyzed. For example, in intra-day trading, higher timeframe opens can refer to the daily session open or the opening prices of other significant market sessions in the forex market.
In addition to higher timeframe opens, traders often utilize daily reference ranges by incorporating indicators such as Average True Range (ATR) and the previous day's range. These tools help traders gauge the potential price volatility for the day and establish reference levels for stop-loss orders, profit targets, overall risk management strategies and market knowledge to develop a comprehensive trading approach.
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Disclaimer : Please note that trading success relies on adhering to your trading strategy, and indicators should be used in accordance with your strategy rather than being the sole basis for trading decisions.
The provided script is intended solely for informational and educational purposes. Its use does not constitute professional or financial advice. It is your sole responsibility to evaluate the script's output and assess the risks associated with its use. By utilizing the script, you agree not to hold "JuiceSignals" TradingView user liable for any potential claims for damages that may arise from decisions made based on the use of the script.
Multiple MAs Signals with RSI MA Filter & Signal About the Script
The "Multiple Moving Averages Signals with RSI MA Filter and Golden Signals" script is a comprehensive trading tool designed to provide traders with detailed insights and actionable signals based on multiple moving averages and RSI (Relative Strength Index). This script combines traditional moving average crossovers with RSI filtering to enhance the accuracy of trading signals and includes "golden" signals to highlight significant long-term trend changes.
This script integrates several technical indicators and concepts to create a robust and versatile trading tool. Here's why this combination is both original and useful:
1. Multiple Moving Averages:
- Why Use Multiple MAs: Different types of moving averages (SMA, EMA, SMMA, WMA, VWMA, Hull) offer unique perspectives on price trends and volatility. Combining them allows traders to capture a more comprehensive view of the market.
- Purpose: Using multiple moving averages helps identify trend direction, support/resistance levels, and potential reversal points.
2. RSI MA Filter:
- Why Use RSI: RSI is a momentum oscillator that measures the speed and change of price movements. It is used to identify overbought or oversold conditions in a market.
- Purpose: Filtering signals with RSI moving averages ensures that trades are taken in line with the prevailing momentum, reducing the likelihood of false signals.
3. Golden Signals:
- Why Use Golden Crosses: A golden cross (50-period MA crossing above the 200-period MA) is a well-known bullish signal, while a death cross (50-period MA crossing below the 200-period MA) is bearish. These signals are widely followed by traders and institutions.
- Purpose: Highlighting these significant long-term signals helps traders identify major buy or sell opportunities and align with broader market trends.
How the Script Works
1. Moving Average Calculations:
- The script calculates multiple moving averages (MA1 to MA5) based on user-selected types (SMA, EMA, SMMA, WMA, VWMA, Hull) and periods (9, 21, 50, 100, 200).
- Golden Moving Averages: Separately calculates 50-period and 200-period moving averages for generating golden signals.
2. RSI and RSI MA Filter:
- RSI Calculation: Computes the RSI for the given period.
- RSI MA: Calculates a moving average of the RSI to smooth out the RSI values and reduce noise.
- RSI MA Filter: Traders can enable/disable RSI filtering and set custom thresholds to refine long and short signals based on RSI momentum.
3. Long & Short Signal Generation:
- Long Signal: Generated when the short-term moving average crosses above both the mid-term and long-term moving averages, and the RSI MA is below the specified threshold (if enabled).
- Short Signal: Generated when the short-term moving average crosses below both the mid-term and long-term moving averages, and the RSI MA is above the specified threshold (if enabled).
4. Golden Signals:
- Golden Long Signal: Triggered when the 50-period golden moving average crosses above the 200-period golden moving average.
- Golden Short Signal: Triggered when the 50-period golden moving average crosses below the 200-period golden moving average.
How to Use the Script
1. Customize Inputs:
- Moving Averages: Choose the type of moving averages and set the periods for up to five different moving averages.
- RSI Settings: Adjust the RSI period and its moving average period. Enable or disable RSI filtering and set custom thresholds for long and short signals.
- Signal Colors: Customize the colors for long, short, and golden signals.
- Enable/Disable Signals: Toggle the visibility of long, short, and golden signals.
2. Observe Plots and Signals:
- The script plots the selected moving averages on the chart.
- Long and short signals are marked with labels on the chart, with customizable colors for easy identification.
- Golden signals are highlighted with specific labels to indicate significant long-term trend changes.
3. Analyze and Trade:
- Use the generated signals as part of your trading strategy. The script provides visual cues to help you make informed decisions about entering or exiting trades based on multiple technical indicators.
Unique Features
1. Integration of Multiple Moving Averages: Combines various moving average types to provide a holistic view of market trends.
2. RSI MA Filtering: Enhances signal accuracy by incorporating RSI momentum, reducing the likelihood of false signals.
3. Golden Signals: Highlights significant long-term trend changes, aligning with broader market movements.
4. Customizability: Offers extensive customization options, allowing traders to tailor the script to their specific trading strategies and preferences.
feel free to comments.
KillZones & Sessions [TradingFinder] Volume | Asia, London & NY🔵 Introduction
🟣 Session
The forex market operates 24 hours a day, 5 days a week, with only Saturdays and Sundays being off; traders often focus on one of the forex trading sessions instead of trying to trade in all markets 24 hours a day.
Trading sessions are time intervals during which a specific financial market is active and trades are conducted. The Asia, London, and New York sessions are the most important trading sessions throughout the 24-hour period, during which a significant amount of money and liquidity enters the market.
🟣 Kill Zone
Traders in financial markets profit from the difference between the price at which they buy or sell and the current market price. Traders have different time horizons for trading.
Among these, some traders engage in daily or even hourly trading and must operate during times when the market has desirable trading volumes and significant price movements.
Kill zones are segments of a session with higher trading volumes and price fluctuations compared to the rest of the session.
🔵 How to Use
🟣 Session Time
The "Asia Session" consists of two sessions: "Sydney" and "Tokyo." The beginning of this session, according to the "UTC" time zone, is at 23:00 and ends at 06:00. Similarly, the beginning of the "Asia KillZone," according to the "UTC" time zone, is at 23:00, and it ends at 03:55.
The "London Session" consists of two sessions: "Frankfurt" and "London." The beginning of this session, according to the "UTC" time zone, is at 07:00, and it ends at 14:25. Similarly, the beginning of the "London KillZone," according to the "UTC" time zone, is at 07:00, and it ends at 09:55.
The beginning of the "New York am" session, according to the "UTC" time zone, is at 14:30, and it ends at 19:25. Similarly, the beginning of the "New York am KillZone," according to the "UTC" time zone, is at 14:30, and it ends at 16:55.
The beginning of the "New York pm" session, according to the "UTC" time zone, is at 19:30, and it ends at 22:55. Similarly, the beginning of the "New York pm KillZone," according to the "UTC" time zone, is at 19:30, and it ends at 20:55.
Important : To prevent session overlap, the working hours of each session have slightly changed.
🔵 Features
🟣 Simultaneous Session and Kill Zone
With this indicator, you can simultaneously view the kill zone and session. High and low lines are used to indicate sessions, while filled areas with color represent kill zones. If you do not want to see kill zones, you can turn off the display settings.
🟣 Candle, Time, and Volume
Using the "More Info" feature, you can see the number of candles, elapsed time, and traded volume within the colored filled area.
🔵 Settings
•Show More Info: To display "More Info," you need to turn on this feature and turn it off whenever you don't need it.
• You can also customize these settings for each session separately :
o Display or hide session.
o Choose session color.
o Set session time range.
o Display or hide kill zone.
o Set kill zone time range.
Papercuts Recency CandlesPapercuts Recency Candles
V0.8 by Joel Eckert @PapercutsTrading
***This is currently an experimental visual exploratory concept.***
*** Experimental tools should only be explored by fellow coders and experienced traders.***
DESCRIPTION:
As coders, how can we seamlessly transition between actual and smoothed price data sets as data ages?
This is a visual experiment to see if and how data can be smoothly transitioned from one value to another over a set number of candles. If we visualize a chart in 3 zones, a head, a body, and a tail we can start to understand how this could work. The head zone would represent the first data set of actual asset prices. The body zone would represent the transition period from the first to the to the second data set. Last, the tail zone would represent the second data set made of a Hull Moving Average of the asset.
CONCEPT:
It is conceived that data and position precision constantly shift as they decay or age, therefore making older price levels act more like price regions or zones vs exact price points. This is what I am calling Recency.
This indicator utilizes the concept of "Recency" to explore the possibility of a new style of candle. It aims to maintain accurately on recent prices action but loosen up accuracy on older price action. The very nature of this requires ALTERING HISTORICAL DATA within the body zone or transition candles to achieve the effect. It is similar to trying to merge a line chart type with a candle chart type.
This experiment of using recency for candles was to create candles that stay more accurate near current price but fade away into a simple line as they age out, resulting in a simplified view of the big picture which consists of older price action.
This experimental design theoretically will help you stay focused only on what is currently unfolding and to minimize distractions from older price nuances.
USAGE:
WHO:
This is not recommended for new traders or novices that are unfamiliar with standard tools. Standardized tools should always be used to get grounded and build a foundation.
Active traders who are familiar with trading comfortably should experiment with this to see if they find it interesting or usable.
Pine coders may find this concept interesting enough, and may adapt the idea to other elements of their own scripts if they find it interesting… I just ask they give credit where credit is due.
HOW:
The best way to visualize how this works is to do the following:
Load it on a chart.
Turn off Standard candles in Chart Setting of the current window. I actually just turn off the bodies and borders, and dim the old wicks as I like the way the old wicks look when left alone with these new candles.
Enable chart replay at a faster speed, like 3x, and play back the chart to watch the behavior of the candles.
You’ll be able to see how the head of the candle type preserves OHLC, and indicates direction but as the candle starts to age it progressively flowers into the HMA
While it plays back try adjusting settings to see how they affect behavior.
You can see the data average in real-time which often reveals how unstable actual price noise really is.
The head candle diagonals indicate the candle body direction.
SETTINGS:
Coloring: You can choose your own bullish or bearish colors to match your scheme.
Price Line: The price line is colored according to the trend and
Head Length: These candles are true to the source high and low. They remain slightly brighter than transition candles. We have a max of 50 to keep things responsive.
Time Decay Length: This is the amount of candles it takes to transition to the tail. Max is 300 to keep things responsive.
Decay Continuity: This forces transition candles to complete the HMA curve instead of creating gaps when conforming to it. The best way to visualize this feature is to run a 3x replay of an asset, and toggle the result on and off. On is preferred.
Tail HMA Length: This is the smoothing amount for the resulting HMA stepline that calculates every close, but has a delayed draw until after the transition candles. You can optionally turn off the delayed visibility to help with comprehension.
Tail HMA Weight: This is simply an option to make the tail thicker or thinner. This also adjusts the border on the head candles to help them stand out.
Show Side Bias Dots: Default true: Draws a dot when bias to one side changes to help keep you on the right side of trade. Side bias is simply the alignment of 3 moving averages in one direction.
IMPORTANT NOTES:
You'll have to turn off or dim the standard candles in your view "Chart Settings" to see this properly.
Be aware that since the candles are based on boxes and utilize the “recency concept”, which means their data decays and changes as it ages. This results in a cleaner chart overall, but exact highs and lows will be averaged out as the data decays, forming a Hull Moving Average stepline of your defined length once decay has finished.
SUMMARY OF HOW IT WORKS:
First it takes candle information and creates unique boxes that represent each candle based on the high and low. It utilizes boxes because standard candles once written, cannot be later altered or removed… which is a key element for this effect to work.
Next it creates a second box and line from open to close for the body of the Head candles. This indicates direction at a glance.
As candles age beyond the defined distance of the “Head” they enter the "Body" aka "Time Decay" zone. Here the accuracy of the high and low will be averaged down using an incremental factor of the HMA, defined by "Time Decay Length" amount of candles.
The resulting tail is an HMA of Tail HMA Length. This tail is always calculate at close, but is not drawn instantly. The draw is delayed so that there is not overlapping data, and this makes the effect look more elegant.
There are also two EMAs within the script that do nothing but help candle coloring and help provide a trade side bias. When both EMA's and the HMA align, a side bias is defined. Only when the side bias changes will a new dot is formed.
Head candles have been simplified from previous versions to be easier to read at a a glance.
EMA and SMA Stacked IndicationEMA and SMA Stacked Indication
Are you looking for a powerful tool to help you identify bullish and bearish market trends with precision? Look no further! Our EMA and SMA Stacked Indication indicator is designed to enhance your trading strategy by providing clear visual signals based on the alignment of key moving averages.
Key Features:
Bullish and Bearish Stack Detection: Quickly identify market trends with our color-coded stacking system. Green dots indicate a bullish stack, while red dots signal a bearish stack.
Visual Clarity: Dots are plotted above and below the price to provide clear, easily interpretable signals without cluttering your chart.
ATR-Based Adjustments: Dots are positioned based on the Average True Range (ATR), ensuring they are visible and informative in all market conditions.
Seamless Integration: Overlay the indicator on any chart without disrupting your existing analysis.
How It Works:
Our indicator calculates four essential moving averages:
8-period EMA
21-period EMA
50-period SMA
200-period SMA
These averages are then analyzed to determine bullish or bearish stacking:When a bullish stack is detected, green dots are plotted above and below the price. Conversely, red dots appear when a bearish stack is identified. This visual representation helps you quickly grasp market conditions and make informed trading decisions.
Why Choose EMA and SMA Stacked Indication?
Enhance Your Strategy: Incorporate reliable moving average signals into your trading toolkit.
Simplify Analysis: Easily spot market trends and potential reversal points with our intuitive indicator.
Boost Confidence: Make more informed decisions backed by robust technical analysis.
Unlock the full potential of your trading with the EMA and SMA Stacked Indication. Start using it today and take your market analysis to the next level!
Oscillator Suite [KFB Quant]Oscillator Suite is a indicator designed to revolutionize your trading strategy. Developed by kikfraben, this innovative tool aggregates eleven powerful oscillators into one intuitive interface, providing you with a comprehensive view of market sentiment like never before.
Originality and Innovation:
Unlike traditional indicators that focus on single aspects of market analysis, Oscillator Suite stands out by integrating multiple oscillators, making it a pioneering solution in technical analysis. This unique approach empowers traders to gain deeper insights into market dynamics and make more informed trading decisions.
Functionality:
Oscillator Suite calculates signals for each selected oscillator based on its specific formula, offering a diverse range of market insights. Whether you're assessing trend strength, market momentum, or price movements, this indicator has you covered.
Aggregated Score:
The indicator combines signals from all chosen oscillators into an aggregated score, providing a holistic assessment of market sentiment. This aggregated score serves as a powerful tool for identifying trends and potential trading opportunities.
Customization and Ease of Use:
With customizable parameters such as colors, smoothing options, and oscillator settings, Oscillator Suite can be tailored to suit your unique trading style and preferences. Its user-friendly interface makes it easy to interpret and act upon the information presented.
How to Use:
Identify Trends: Analyze the aggregated score and individual oscillator signals to identify prevailing market trends.
Confirm Trade Signals: Use multiple oscillator alignments to strengthen the conviction behind trade signals.
Manage Risk: Gain insight into potential reversals or trend continuations to effectively manage risk.
This is not financial advice. Trading is risky & most traders lose money. Past performance does not guarantee future results. This indicator is for informational & educational purposes only.
Dual RSI Differential - Strategy [presentTrading]█ Introduction and How it is Different
The Dual RSI Differential Strategy introduces a nuanced approach to market analysis and trading decisions by utilizing two Relative Strength Index (RSI) indicators calculated over different time periods. Unlike traditional strategies that employ a single RSI and may signal premature or delayed entries, this method leverages the differential between a shorter and a longer RSI. This approach pinpoints more precise entry and exit points, providing a refined tool for traders to exploit market conditions effectively, particularly in overbought and oversold scenarios.
Most important: it is a good eductional code for swing trading.
For beginners, this Pine Script provides a complete function that includes crucial elements such as holding days and the option to configure take profit/stop loss settings:
- Hold Days: This feature ensures that trades are not exited too hastily, helping traders to ride out short-term market volatility. It's particularly valuable for swing trading where maintaining positions slightly longer can lead to capturing significant trends.
- TPSL Condition (None by default): This setting allows traders to focus solely on the strategy's robust entry and exit signals without being constrained by preset profit or loss limits. This flexibility is crucial for learning to adjust strategy settings based on personal risk tolerance and market observations.
BTCUSD 6h LS Performance
█ Strategy, How It Works: Detailed Explanation
🔶 RSI Calculation:
The RSI is a momentum oscillator that measures the speed and change of price movements. It is calculated using the formula:
RSI = 100 - (100 / (1 + RS))
Where RS (Relative Strength) = Average Gain of up periods / Average Loss of down periods.
🔶 Dual RSI Setup:
This strategy involves two RSI indicators:
RSI_Short (RSI_21): Calculated over a short period (21 days).
RSI_Long (RSI_42): Calculated over a longer period (42 days).
Differential Calculation:
The strategy focuses on the differential between these two RSIs:
RSI Differential = RSI_Long - RSI_Short
This differential helps to identify when the shorter-term sentiment diverges from longer-term trends, signaling potential trading opportunities.
BTCUSD Local picuture
🔶 Signal Triggers:
Entry Signal: A buy (long) signal is triggered when the RSI Differential exceeds -5, suggesting strengthening short-term momentum. Conversely, a sell (short) signal occurs when the RSI Differential falls below +5, indicating weakening short-term momentum.
Exit Signal: Trades are generally exited when the RSI Differential reverses past these thresholds, indicating a potential momentum shift.
█ Trade Direction
This strategy accommodates various trading preferences by allowing selections among long, short, or both directions, thus enabling traders to capitalize on diverse market movements and volatility.
█ Usage
The Dual RSI Differential Strategy is particularly suited for:
Traders who prefer a systematic approach to capture market trends.
Those who seek to minimize risks associated with rapid and unexpected market movements.
Traders who value strategies that can be finely tuned to different market conditions.
█ Default Settings
- Trading Direction: Both — allows capturing of upward and downward market movements.
- Short RSI Period: 21 days — balances sensitivity to market movements.
- Long RSI Period: 42 days — smoothens out longer-term fluctuations to provide a clearer market trend.
- RSI Difference Level: 5 — minimizes false signals by setting a moderate threshold for action.
Use Hold Days: True — introduces a temporal element to trading strategy, holding positions to potentially enhance outcomes.
- Hold Days: 5 — ensures that trades are not exited too hastily, helping to ride out short-term volatility.
- TPSL Condition: None — enables traders to focus solely on the strategy's entry and exit signals without preset profit or loss limits.
- Take Profit Percentage: 15% — aims for significant market moves to lock in profits.
- Stop Loss Percentage: 10% — safeguards against large losses, essential for long-term capital preservation.
Multi BTC Rolling APY Calculator [presentTrading]█ Introduction and How it is Different
The "Multi BTC Rolling APY Calculator " is an innovative Pine Script indicator tailored for cryptocurrency traders, providing insights into arbitrage opportunities and market sentiment by calculating the Rolling Annual Percentage Yield (APY) between spot and futures prices of Bitcoin. Unlike traditional APY calculators, this tool specializes in capturing the nuances of the highly volatile and less efficient cryptocurrency markets. Rolling APY is derived from traditional market basis arbitrage but adapted to highlight significant discrepancies that frequently occur between derivative and underlying asset prices in crypto markets.
Historical backtesting has revealed that Bitcoin's Rolling APY can serve as a robust indicator of market sentiment:
- Below 0%: Often indicates panic or 'end-of-world' scenarios.
- 0-5%: Signifies extreme market fear.
- 5-10%: Reflects a calm market environment.
- 10-15%: Suggests a moderately warm market.
- 15-20%: Indicates an overheated market.
- **Above 20%: Signals FOMO (fear of missing out).
This nuanced understanding of Rolling APY helps investors not only spot arbitrage opportunities but also gauge the emotional state of the market, providing a dual function that enhances trading strategies in the volatile realm of cryptocurrencies.
█ Strategy: How It Works – Detailed Explanation
🔶 Rolling APY Calculation
The Rolling APY calculation is crucial for understanding the annualized potential returns from arbitrage strategies, given by the formula:
APY = ((Future Price - Spot Price) / Spot Price) * (365 / Days Until Expiration) * 100
This annualizes the observed premium or discount on futures contracts relative to the spot price, providing a year-over-year expectation of returns if one were to engage in arbitrage over the specified period.
🔶 Days Calculation
The accuracy of APY is contingent upon the precise calculation of days until each contract expires:
Days = (Expiration Timestamp - Current Timestamp) / 86400000
This calculation ensures the APY reflects true market dynamics for each futures contract's duration.
█ Trade Direction
While this tool does not provide direct trading signals, it informs traders about potential arbitrage opportunities and the prevailing market sentiment. Traders can leverage this data to make strategic decisions, aligning long or short positions with the anticipated market movements and arbitrage conditions.
█ Usage
By inputting specific parameters related to their market analysis, traders can monitor discrepancies in Bitcoin’s pricing across different timelines, which is especially beneficial for those involved in derivatives trading, arbitrage, and sentiment analysis.
█ Default Settings
- Resolution: Controls the frequency of data (default is daily).
- Show numbers in annual: Determines whether APY is displayed on an annual basis.
- Base Symbol and Future Symbols: Specify the spot and futures markets for analysis.
Fair Value Calculator V 1.0Fair Value Calculator V 1.0
This indicator calculates the fair value of a stock based on the revenue growth rate and net profit margin of a company, providing a quick estimate of its intrinsic worth. The calculation takes into account:
Current Revenue: The company's current revenue
5-Year Growth Rate: Expected revenue annual growth rate (CAGR) over the next 5 years
Average PE Ratio: The average Price-to-Earnings ratio for the next 5 years
Average Profit Margin: The average profit margin for the next 5 years
Share Outstanding: The total number of shares outstanding
Yearly Share Buyback Rate: The percentage of shares bought back by the company each year
Discount Rate: The rate used to calculate the present value of the fair value
Using these inputs, the indicator estimates the fair value of the stock, providing a valuable tool for investors and traders to make informed decisions.
Note: all values can be adjusted by the user by entering the desired value and selecting the item in the setup menu.
How it works
The indicator calculates the future revenue based on the current revenue and the expected revenue annual growth rate (CAGR).
It then estimates the future earnings using the average profit margin.
The future price is calculated using the exit value of the PE ratio.
The present value of the fair value is calculated using the discount rate.
The indicator adjusts the fair value based on the yearly share buyback rate.
Benefits
Provides a quick but valuable estimate of a stock's fair value based on the revenue growth and the expected profit.
Helps investors and traders identify undervalued or overvalued stocks.
Allows users to adjust inputs to suit their own assumptions and scenarios.
Note
This indicator is for informational purposes only and should not be considered as investment advice. Always do your own research and consider multiple perspectives before making investment decisions.
Turn of the Month Strategy [Honestcowboy]The end of month effect is a well known trading strategy in the stock market. Quite simply, most stocks go up at the end of the month. What's even better is that this effect spills over to the next phew days of the next month.
In this script we backtest this theory which should work especially well on SP500 pair.
By default the strategy buys 2 days before the end of each month and exits the position 3 days into the next month.
The strategy is a long only strategy and is extremely simple. The SP500 is one of the #1 assets people use for long term investing due to it's "9.8%" annualised return. However as a trader you want the best deal possible. This strategy is only inside the market for about 25% of the time while delivering a similar return per exposure with a lower drawdown.
Here are some hypothesis why turn of the month effect happens in the stock markets:
Increased inflow from savings accounts to stocks at end of month
Rebalancing of portfolios by fund managers at end of month
The timing of monthly cash flows received by pension funds, which are reinvested in the stock market.
The script also has some inputs to define how many days before end of the month you want to buy the asset and how long you want to hold it into the next month.
It is not possible to buy the asset exactly on this day every month as the market closes on the weekend. I've added some logic where it will check if that day is a friday, saturdady or sunday. If that is the case it will send the buy signal on the end of thursday, this way we enter on the friday and don't lose that months trading opportunity.
The backtest below uses 4% exposure per trade as to show the equity curve more clearly and because of publishing rules. However, most fund managers and investors use 100% exposure. This way you actually risk money to earn money. Feel free to adjust the settings to your risk profile to get a clearer picture of risks and rewards before implementing in your portfolio.
Smart Money Concept [TradingFinder] Major OB + FVG + Liquidity🔵 Introduction
"Smart Money" refers to funds under the control of institutional investors, central banks, funds, market makers, and other financial entities. Ordinary people recognize investments made by those who have a deep understanding of market performance and possess information typically inaccessible to regular investors as "Smart Money".
Consequently, when market movements often diverge from expectations, traders identify the footprints of smart money. For example, when a classic pattern forms in the market, traders take short positions. However, the market might move upward instead. They attribute this contradiction to smart money and seek to capitalize on such inconsistencies in their trades.
The "Smart Money Concept" (SMC) is one of the primary styles of technical analysis that falls under the subset of "Price Action". Price action encompasses various subcategories, with one of the most significant being "Supply and Demand", in which SMC is categorized.
The SMC method aims to identify trading opportunities by emphasizing the impact of large traders (Smart Money) on the market, offering specific patterns, techniques, and trading strategies.
🟣 Key Terms of Smart Money Concept (SMC)
• Market Structure (Trend)
• Change of Character (ChoCh)
• Break of Structure (BoS)
• Order Blocks (Supply and Demand)
• Imbalance (IMB)
• Inefficiency (IFC)
• Fair Value Gap (FVG)
• Liquidity
• Premium and Discount
🔵 How Does the "Smart Money Concept Indicator" Work?
🟣 Market Structure
a. Accumulation
b. Market-Up
c. Distribution
d. Market-Down
a) Accumulation Phase : During the accumulation period, typically following a downtrend, smart money enters the market without significantly affecting the pricing trend.
b) Market-Up Phase : In this phase, the price of an asset moves upward from the accumulation range and begins to rise. Usually, the buying by retail investors is the main driver of this trend, and due to positive market sentiment, it continues.
c) Distribution Phase : The distribution phase, unlike the accumulation stage, occurs after an uptrend. In this phase, smart money attempts to exit the market without causing significant price fluctuations.
d) Market-Down Phase : In this stage, the price of an asset moves downward from the distribution phase, initiating a prolonged downtrend. Smart money liquidates all its positions by creating selling pressure, trapping latecomer investors.
The result of these four phases in the market becomes the market trend.
Types of Trends in Financial Markets :
a. Up-Trend
b. Down Trend
c. Range (No Trend)
a) Up-Trend : The market breaks consecutive highs.
b) Down Trend : The market breaks consecutive lows.
c) No Trend or Range : The market oscillates within a range without breaking either highs or lows.
🟣 Change of Character (ChoCh)
The "ChoCh" or "Change of Character" pattern indicates an initial change in order flow in financial markets. This structural change occurs when a major pivot in the opposite direction of the market trend fails. It signals a potential change in the market trend and can serve as a signal for short-term or long-term trend changes in a trading symbol.
🟣 Break of Structure (BoS)
The "BoS" or "Break of Structure" pattern indicates the continuation of the trend in financial markets. This structure forms when, in an uptrend, the price breaks its ceiling or, in a downtrend, the price breaks its floor.
🟣 Order Blocks (Supply and Demand)
Order blocks consist of supply and demand areas where the likelihood of price reversal is higher. There are six order blocks in this indicator, categorized based on their origin and formation reasons.
a. Demand Main Zone, "ChoCh" Origin.
b. Demand Sub Zone, "ChoCh" Origin.
c. Demand All Zone, "BoS" Origin.
d. Supply Main Zone, "ChoCh" Origin.
e. Supply Sub Zone, "ChoCh" Origin.
f. Supply All Zone, "BoS" Origin.
🟣 FVG | Inefficiency | Imbalance
These three terms are almost synonymous. They describe the presence of gaps between consecutive candle shadows. This inefficiency occurs when the market moves rapidly. Primarily, imbalances and these rapid movements stem from the entry of smart money and the imbalance between buyer and seller power. Therefore, identifying these movements is crucial for traders.
These areas are significant because prices often return to fill these gaps or even before they occur to fill price gaps.
🟣 Liquidity
Liquidity zones are areas where there is a likelihood of congestion of stop-loss orders. Liquidity is considered the driving force of the entire market, and market makers may manipulate the market using these zones. However, in many cases, this does not happen because there is insufficient liquidity in some areas.
Types of Liquidity in Financial Markets :
a. Trend Lines
b. Double Tops | Double Bottoms
c. Triple Tops | Triple Bottoms
d. Support Lines | Resistance Lines
All four types of liquidity in this indicator are automatically identified.
🟣 Premium and Discount
Premium and discount zones can assist traders in making better decisions. For instance, they may sell positions in expensive ranges and buy in cheaper ranges. The closer the price is to the major resistance, the more expensive it is, and the closer it is to the major support, the cheaper it is.
🔵 How to Use
🟣 Change of Character (ChoCh) and Break of Structure (BoS)
This indicator detects "ChoCh" and "BoS" in both Minor and Major states. You can turn on the display of these lines by referring to the last part of the settings.
🟣 Order Blocks (Supply and Demand)
Order blocks are Zones where the probability of price reversal is higher. In demand Zones you can buy opportunities and in supply Zones you can check sell opportunities.
The "Refinement" feature allows you to adjust the width of the order block according to your strategy. There are two modes, "Aggressive" and "Defensive," in the "Order Block Refine". The difference between "Aggressive" and "Defensive" lies in the width of the order block.
For risk-averse traders, the "Defensive" mode is suitable as it provides a lower loss limit and a greater reward-to-risk ratio. For risk-taking traders, the "Aggressive" mode is more appropriate. These traders prefer to enter trades at higher prices, and this mode, which has a wider order block width, is more suitable for this group of individuals.
🟣 Fair Value Gap (FVG) | Imbalance (IMB) | Inefficiency (IFC)
In order to identify the "fair value gap" on the chart, it must be analyzed candle by candle. In this process, it is important to pay attention to candles with a large size, and a candle and a candle should be examined before that.
Candles before and after this central candle should have long shadows and their bodies should not overlap with the central candle body. The distance between the shadows of the first and third candles is known as the FVG range.
These areas work in two ways :
• Supply and demand area : In this case, the price reacts to these areas and the trend is reversed.
• Liquidity zone : In this scenario, the price "fills" the zone and then reaches the order block.
Important note : In most cases, the FVG zone of very small width acts as a supply and demand zone, while the zone of significant width acts as a liquidity zone and absorbs price.
When the FVG filter is activated, the FVG regions are filtered based on the specified algorithm.
FVG filter types include the following :
1. Very Aggressive Mode : In addition to the initial condition, an additional condition is considered. For bullish FVG, the maximum price of the last candle must be greater than the maximum price of the middle candle.
Similarly, for a bearish FVG, the minimum price of the last candle must be lower than the minimum price of the middle candle. This mode removes the minimum number of FVGs.
2. Aggressive : In addition to the very aggressive condition, the size of the middle candle is also considered. The size of the center candle should not be small and therefore more FVGs are removed in this case.
3. Defensive : In addition to the conditions of the very aggressive mode, this mode also considers the size of the middle pile, which should be relatively large and make up the majority of the body.
Also, to identify bullish FVGs, the second and third candles must be positive, while for bearish FVGs, the second and third candles must be negative. This mode filters out a significant number of FVGs and keeps only those of good quality.
4. Very Defensive : In addition to the conditions of the defensive mode, in this mode the first and third candles should not be very small-bodied doji candles. This mode filters out most FVGs and only the best quality ones remain.
🟣 Liquidity
These levels are where traders intend to exit their trades. "Market makers" or smart money usually accumulate or distribute their trading positions near these levels, where many retail traders have placed their "stop loss" orders. When liquidity is collected from these losses, the price often reverses.
A "Stop hunt" is a move designed to offset liquidity generated by established stop losses. Banks often use major news events to trigger stop hunts and capture liquidity released into the market. For example, if they intend to execute heavy buy orders, they encourage others to sell through stop-hots.
Consequently, if there is liquidity in the market before reaching the order block area, the validity of that order block is higher. Conversely, if the liquidity is close to the order block, that is, the price reaches the order block before reaching the liquidity limit, the validity of that order block is lower.
🟣 Alert
With the new alert functionality in this indicator, you won't miss any important trading signals. Alerts are activated when the price hits the last order block.
1. It is possible to set alerts for each "symbol" and "time frame". The system will automatically detect both and include them in the warning message.
2. Each alert provides the exact date and time it was triggered. This helps you measure the timeliness of the signal and evaluate its relevance.
3. Alerts include target order block price ranges. The "Proximal" level represents the initial price level strike, while the "Distal" level represents the maximum price gap in the block. These details are included in the warning message.
4. You can customize the alert name through the "Alert Name" entry.
5. Create custom messages for "long" and "short" alerts to be sent with notifications.
🔵 Setting
a. Pivot Period of Order Blocks Detector :
Using this parameter, you can set the zigzag period that is formed based on the pivots.
b. Order Blocks Validity Period (Bar) :
You can set the validity period of each Order Block based on the number of candles that have passed since the origin of the Order Block.
c. Demand Main Zone, "ChoCh" Origin :
You can control the display or not display as well as the color of Demand Main Zone, "ChoCh" Origin.
d. Demand Sub Zone, "ChoCh" Origin :
You can control the display or not display as well as the color of Demand Sub Zone, "ChoCh" Origin.
e. Demand All Zone, "BoS" Origin :
You can control the display or not display as well as the color of Demand All Zone, "BoS" Origin.
f. Supply Main Zone, "ChoCh" Origin :
You can control the display or not display as well as the color of Supply Main Zone, "ChoCh" Origin.
g. Supply Sub Zone, "ChoCh" Origin :
You can control the display or not display as well as the color of Supply Sub Zone, "ChoCh" Origin.
h. Supply All Zone, "BoS" Origin :
You can control the display or not display as well as the color of Supply All Zone, "BoS" Origin.
i. Refine Demand Main : You can choose to be refined or not and also the type of refining.
j. Refine Demand Sub : You can choose to be refined or not and also the type of refining.
k. Refine Demand BoS : You can choose to be refined or not and also the type of refining.
l. Refine Supply Main : You can choose to be refined or not and also the type of refining.
m. Refine Supply Sub : You can choose to be refined or not and also the type of refining.
n. Refine Supply BoS : You can choose to be refined or not and also the type of refining.
o. Show Demand FVG : You can choose to show or not show Demand FVG.
p. Show Supply FVG : You can choose to show or not show Supply FVG
q. FVG Filter : You can choose whether FVG is filtered or not. Also specify the type of filter you want to use.
r. Show Statics High Liquidity Line : Show or not show Statics High Liquidity Line.
s. Show Statics Low Liquidity Line : Show or not show Statics Low Liquidity Line.
t. Show Dynamics High Liquidity Line : Show or not show Dynamics High Liquidity Line.
u. Show Dynamics Low Liquidity Line : Show or not show Dynamics Low Liquidity Line.
v. Statics Period Pivot :
Using this parameter, you can set the Swing period that is formed based on Static Liquidity Lines.
w. Dynamics Period Pivot :
Using this parameter, you can set the Swing period that is formed based Dynamics Liquidity Lines.
x. Statics Liquidity Line Sensitivity :
is a number between 0 and 0.4. Increasing this number decreases the sensitivity of the "Statics Liquidity Line Detection" function and increases the number of lines identified. The default value is 0.3.
y. Dynamics Liquidity Line Sensitivity :
is a number between 0.4 and 1.95. Increasing this number increases the sensitivity of the "Dynamics Liquidity Line Detection" function and decreases the number of lines identified. The default value is 1.
z. Alerts Name : You can customize the alert name using this input and set it to your desired name.
aa. Alert Demand Main Mitigation :
If you want to receive the alert about Demand Main 's mitigation after setting the alerts, leave this tick on. Otherwise, turn it off.
bb. Alert Demand Sub Mitigation :
If you want to receive the alert about Demand Sub's mitigation after setting the alerts, leave this tick on. Otherwise, turn it off.
cc. Alert Demand BoS Mitigation :
If you want to receive the alert about Demand BoS's mitigation after setting the alerts, leave this tick on. Otherwise, turn it off.
dd. Alert Supply Main Mitigation :
If you want to receive the alert about Supply Main's mitigation after setting the alerts, leave this tick on. Otherwise, turn it off.
ee. Alert Supply Sub Mitigation :
If you want to receive the alert about Supply Sub's mitigation after setting the alerts, leave this tick on. Otherwise, turn it off.
ff. Alert Supply BoS Mitigation :
If you want to receive the alert about Supply BoS's mitigation after setting the alerts, leave this tick on. Otherwise, turn it off.
gg. Message Frequency :
This parameter, represented as a string, determines the frequency of announcements. Options include: 'All' (triggers the alert every time the function is called), 'Once Per Bar' (triggers the alert only on the first call within the bar), and 'Once Per Bar Close' (activates the alert only during the final script execution of the real-time bar upon closure). The default setting is 'Once per Bar'.
hh. Show Alert time by Time Zone :
The date, hour, and minute displayed in alert messages can be configured to reflect any chosen time zone. For instance, if you prefer London time, you should input 'UTC+1'. By default, this input is configured to the 'UTC' time zone.
ii. Display More Info : The 'Display More Info' option provides details regarding the price range of the order blocks (Zone Price), along with the date, hour, and minute. If you prefer not to include this information in the alert message, you should set it to 'Off'.
You also have access to display or not to display, choose the Style and Color of all the lines below :
a. Major Bullish "BoS" Lines
b. Major Bearish "BoS" Lines
c. Minor Bullish "BoS" Lines
d. Minor Bearish "BoS" Lines
e. Major Bullish "ChoCh" Lines
f. Major Bearish "ChoCh" Lines
g. Minor Bullish "ChoCh" Lines
h. Minor Bearish "ChoCh" Lines
i. Last Major Support Line
j. Last Major Resistance Line
k. Last Minor Support Line
l. Last Minor Resistance Line
PML (Extended hours)This indicator provides basic pre-market level information. You have the flexibility to select your preferred time range for the lines and labels.
For the #90amestbox group, set the time between 8:57 am and 9:03 am (EST). Ensure to draw the box using these lines, as the indicator is designed for extended hours only and won't function during regular trading hours.
What it does:
1) makes lines for the high and the low of the time slot you pick,
2) makes a label for the price,
3) you can also set alerts for when the price breaks the upside or downside.
Trend-Volume IndexDescription:
Trend-Volume Index offers traders a robust tool to confirm trends around critical trading strategies such as pivot points, breakouts, and supply and demand zones. By integrating price action with volume analysis, this indicator enhances the decision-making process, ensuring trades are executed with high confidence during key market movements.
Features:
By incorporating volume confirmation, the indicator checks for alignment between the EMAs of different time frames and ensures that such alignments are backed by significant trading activity. This enhancement can help reduce false signals and increase confidence in trend indications, especially in volatile markets.
Dual Exponential Moving Averages (EMAs): Effectively detects trend directions and strength by using two EMAs—14 periods for the current time frame and 28 periods for a higher time frame defined by the user.
Volume Confirmation: Volume plays a pivotal role by confirming the trend's validity. A threshold set using a 1.5x multiplier against the 20-period average volume highlights significant volume-backed movements.
Color-coded Visualization: Trends are visually represented, allowing quick and easy interpretation:
Bright Green/Red: Shows strong uptrends or downtrends confirmed by substantial volume.
Dim Green/Red: Indicates trends without sufficient volume confirmation.
Gray: Used for conflicting or uncertain trend signals (has no EMA alignments).
Usage:
This indicator is specifically designed to confirm trading signals around pivot points, during breakouts, and within supply and demand zones. It helps traders identify and act on reliable entries and exits by confirming whether the corresponding volume increases to support the observed price movements. This makes it particularly valuable in scenarios where identifying false breaks or confirming the strength of a move is crucial.
Implementation Notes:
You can adjust the EMA periods and volume thresholds based on your specific trading conditions or strategy requirements. Monitor the color changes meticulously to make precise trading decisions, especially around key market zones and levels.
Enhanced Volume Profile [TFO]The Enhanced Volume Profile analyzes volume by price to find potential inflection points that we can reference in future price action.
The volume profiles altogether are simply an estimation from price/volume data that TradingView is capable of providing. Below is an example of 1 day volume profiles. The left chart uses 50 rows for each profile, while the right chart uses 500 rows. As a result, the right chart is capable of providing much greater detail.
Profile Timeframe specifies the timeframe of the profile to be constructed. When set to 1 day for example, then each profile represents the price/volume data from 1 daily bar.
Resolution Timeframe is the timeframe of price/volume data used to construct the profile. Lower timeframes result in higher resolution, but also greater computation time.
Below is an example of 1 day volume profiles. Both charts are using 250 rows for every profile, but the left chart is using a 15m resolution timeframe, while the right chart is using a 1m resolution timeframe. The lower timeframe data on the right chart allows for greater detail than the left.
Volume Point of Control (VPOC) shows the price level where the most volume was traded during a given session. Show VPOCs will draw these levels on each volume profile, with the corresponding color. In the following chart, each solid blue line represents a VPOC for the corresponding session.
Extend Recent VPOCs will track the N most recent VPOC levels, and extend them to the right side of the chart for easy visual reference. Show VPOC Labels will annotate each VPOC extension with the date (and time, for lower timeframes) that each corresponding profile began. Below is an example where Extend Recent VPOCs and Show VPOC Labels are both enabled.
Show Previous HVN will show High Volume Nodes from previous sessions, and extend them until price trades through them. When a session ends, any new HVNs located above that close price will be red while any HVNs below will be green (default colors).
HVNs are validated with a strength parameter that compares the peak volume to its neighboring levels to determine local extremes, along with a percentile filter to optionally specify if valid nodes must contain a peak volume greater than X% of the volume traded at VPOC.
The same capabilities exist for Low Volume Nodes as well. Show Previous LVN will extend these Low Volume Nodes from previous sessions until price trades through them.
The default color scheme will color nodes proportionate to the individual session. For example, a HVN derived from VPOC would always result in the deepest possible color because the node's peak contains the highest volume traded for that session. Every lesser node would be colored lighter than this, proportional to that session's VPOC.
We can also choose to color these nodes in a way that reflects their relative volume compared to recent sessions. For HVNs, darker colors imply more volume was traded at said nodes while lighter colors imply less volume. In the following example, the left chart uses the session based color scheme while the right chart uses the historical color scheme.
Alligator + MA Trend Catcher [TradeDots]The "Alligator + MA Trend Catcher" is a trading strategy that integrates the William Alligator indicator with a Moving Average (MA) to establish robust entry and exit conditions, optimized for capturing trends.
HOW IT WORKS
This strategy combines the traditional William Alligator set up with an additional Moving Average indicator for enhanced trend confirmation, creating a user-friendly backtesting tool for traders who prefer the Alligator method.
The original Alligator strategy can frequently present fluctuations, even in well-established trends, leading to potentially premature exits. To mitigate this, we incorporate a Moving Average as a secondary confirmation measure to ensure the market trend has indeed shifted.
Here’s the operational flow for long orders:
Entry Signal: When the price rises above the Moving Average, it confirms a bullish market state. Enter if Alligator spread in an upward direction. The trade remains active even if the Alligator indicator suggests a trend reversal.
Exit Signal: The position is closed when the price falls below the Moving Average, and the Alligator spreads in the downward direction. This setup helps traders to maintain positions through the entirety of the trend for maximum gain.
APPLICATION
This strategy is tailored for assets with significant, well-defined trends, such as Bitcoin and Ethereum, which are known for their high volatility and substantial price movements.
This strategy offers a low win-rate but high reward configuration, making asset selection critical for long-term profitability. If you choose assets that lack strong price momentum, there's a high chance that this strategy may not be effective.
For traders seeking to maximize gains from large trends without exiting prematurely, this strategy provides an aggressive yet controlled approach to riding out substantial market waves.
DEFAULT SETUP
Commission: 0.01%
Initial Capital: $10,000
Equity per Trade: 80%
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
Khaled Tamim's Avellaneda-Stoikov StrategyDescription:
This strategy applies the Avellaneda-Stoikov (A-S) model to generate buy and sell signals for underlying assets based on option pricing theory. The A-S model estimates bid and ask quotes for options contracts considering factors like volatility (sigma), time to expiration (T), and risk aversion (gamma).
Key Concepts:
Avellaneda-Stoikov Model: A mathematical framework for option pricing that incorporates volatility, time decay, and risk tolerance.
Bid-Ask Quotes: The theoretical buy and sell prices for an option contract.
Inventory Management: The strategy tracks its long or short position based on signals.
How it Works:
A-S Model Calculation: The avellanedaStoikov function calculates bid and ask quotes using the underlying asset's closing price, user-defined parameters (gamma, sigma, T, k, and M), and a small fee (adjustable).
Signal Generation: The strategy generates long signals when the closing price falls below the adjusted bid quote and short signals when it exceeds the adjusted ask quote.
Trade Execution: Buy and sell orders are triggered based on the generated signals (long for buy, short for sell).
Inventory Tracking: The strategy's net profit reflects the current inventory level (long or short position).
Customization:
Gamma (γ): Controls risk aversion in the A-S model (higher values imply lower risk tolerance).
Sigma (σ): Represents the underlying asset's expected volatility.
T: Time to expiration for the hypothetical option (defaults to a short-term option).
k: A constant factor in the A-S model calculations.
M: Minimum price buffer for buy/sell signals (prevents excessive churn).
Important Note:
This strategy simulates option pricing behavior for a theoretical option and does not directly trade options contracts. Backtesting results may not reflect actual market conditions.
Further Considerations:
The 0.1% fee is a placeholder and may need adjustment based on real-world trading costs.
Consider using realistic timeframes for T (e.g., expiry for a real option)
Disclaimer: This strategy is for educational purposes only and does not constitute financial advice.
Drawing toolThis indicator is a simple drawing tool without changing the code!
You need:
1. activate the display of coordinates (Show coordinate input)
You will see a 17 by 17 table with indexes of intersection points, in the format: (x,y)
2. activate the Enable custom drawing input
3. enter the sequence of points that you want to connect into the Coordinate for drawing input in the format: (x,y);(x,y)....
4. select line color and fill color
5. if necessary, activate Curved and Closed
In addition, you can look at some examples
DXY Overlay corelation to compare forex pairs with dollar index . helps in if analyzing how different assets correlate with the strength or weakness of the USD.
Volume-Supported Linear Regression Trend Modified StrategyHi everyone, this will be my first published script on Tradingview, maybe more to come.
For quite some time I have been looking for a script that performs no matter if price goes up or down or sideways. I believe this strategy comes pretty close to that. Although nowhere near the so called "buy&hold equity" of BTC, it has produced consistent profits even when price goes down.
It is a strategy which seems to work best on the 1H timeframe for cryptocurrencies.
Just by testing different settings for SL and TP you can customize it for each pair.
THE STRATEGY:
Basically, I used the Volume Supported Linear Regression Trend Model that LonesomeTheBlue has created and modified a few things such as entry and exit conditions. So all credits go to him!
LONG ENTRY: When there is a bullish cross of the short term trend (the histogram/columns), while the long term trend is above 0 and rising.
SHORT ENTRY: When there is a bearish cross (green to red) of the short-term trend (the histogram/columns), while the long term trend is beneath 0 and decreasing.
LONG EXIT: Bearish crossover of short-term trend while long term trend is below 0
SHORT EXIT: Bullish crossover of short-term trend while long term trend is above 0
Combining this with e.g. a SL of 2% and a TP of 20% (as used in my backtesting), combined with pyramiding and correct risk management, it gives pretty consistent results.
Be aware, this is only for educational purpose and in no means financial advise. Past results do not guarantee future results. This strategy can lose money!
Enjoy :)
PS: It works not only on BTC of course, works even better on some other major crypto pairs. I'll leave it to you to find out which ones ;)
EnchiridionThis script contains excerpts of stoic statements to help in any life situation.
Hover over the title of one of the statements to get the saying.
Keep your head while trading !
Epictetus' Enchiridion is a great work written in 50 B.C. Containing the eidos of Stoic philosophy, or a brief guide to moral living, it will help you keep a clear mind and calm while trading.
Inside Bar + Bullish and Bearish candlestick [Tarun]
Inside Bar Detection:
The function isInsideBar() checks if a bar is an inside bar, meaning its high is lower than the previous bar's high and its low is higher than the previous bar's low.
Inside bars are highlighted with an orange color.
Bearish Candlestick Patterns:
Bearish Engulfing: When the current candlestick's body completely engulfs the previous candlestick's body.
Dark Cloud Cover: When a bullish candle is followed by a bearish candle that opens above the previous bullish candle's close but closes below its midpoint.
Bearish Harami: When a small bullish candlestick is engulfed by a larger bearish candlestick.
Evening Star: A three-candle pattern consisting of a large bullish candle, a small-bodied candle with a gap up or down, and a large bearish candle that closes below the midpoint of the first candle.
Shooting Star: A single candlestick pattern with a small real body near the bottom of the price range and a long upper shadow.
Bearish Marubozu: A candlestick with a long bearish body and little to no upper or lower shadows.
Bearish candlestick patterns are highlighted with a red color and labeled with abbreviated names.
Bullish Candlestick Patterns:
Bullish Engulfing: Opposite of bearish engulfing, where the current candlestick's body completely engulfs the previous candlestick's body.
Piercing Pattern: When a bearish candle is followed by a bullish candle that opens below the previous bearish candle's low but closes above its midpoint.
Bullish Harami: Similar to bearish harami but bullish, where a small bearish candlestick is engulfed by a larger bullish candlestick.
Morning Star: A three-candle pattern opposite to the evening star, signaling a potential reversal from downtrend to uptrend.
Bullish Hammer: A single candlestick pattern with a small real body near the top of the price range and a long lower shadow.
Bullish Marubozu: A candlestick with a long bullish body and little to no upper or lower shadows.
Bullish candlestick patterns are highlighted with a purple color and labeled with abbreviated names.
Luxmi AI Filtered Option Scalping Signals (INDEX)Introduction:
Luxmi AI Filtered Option Scalping Signals (INDEX) is an enhanced iteration of the Luxmi AI Directional Option Buying (Long Only) indicator. It's designed for use on index charts alongside the Luxmi AI Smart Sentimeter (INDEX) indicator to enhance performance. This indicator aims to provide refined signals for option scalping strategies, optimizing trading decisions within index markets.
Understanding directional bias is crucial when trading index and index options because it helps traders align their strategies with the expected movement of the underlying index.
The Luxmi AI Filtered Option Scalping Signals (INDEX) indicator aims to simplify and expedite decision-making through comprehensive technical analysis of various data points on a chart. By leveraging advanced analysis of data points, this indicator scrutinizes multiple factors simultaneously to offer traders clear and rapid insights into market dynamics.
The indicator is specifically designed for option scalping, a trading strategy that aims to profit from short-term price fluctuations. It prioritizes signals that are conducive to quick execution and capitalizes on rapid market movements typical of scalping strategies.
Major Features:
Trend Cloud:
Working Principle:
The script utilizes the Relative Strength Index (RSI) to assess market momentum, identifying bullish and bearish phases based on RSI readings. It calculates two boolean variables, bullmove and bearmove, which signal shifts in momentum direction by considering changes in the Exponential Moving Average (EMA) of the closing price. When RSI indicates bullish momentum and the closing price's EMA exhibits positive changes, bullmove is triggered, signifying the start of a bullish phase. Conversely, when RSI suggests bearish momentum and the closing price's EMA shows negative changes, bearmove is activated, marking the beginning of a bearish phase. This systematic approach helps in understanding the current trend of the price. The script visually emphasizes these phases on the chart using plot shape markers, providing traders with clear indications of trend shifts.
Benefits of Using Trend Cloud:
Comprehensive Momentum Assessment: The script offers a holistic view of market momentum by incorporating RSI readings and changes in the closing price's EMA, enabling traders to identify both bullish and bearish phases effectively.
Structured Trend Recognition: With the calculation of boolean variables, the script provides a structured approach to recognizing shifts in momentum direction, enhancing traders' ability to interpret market dynamics.
Visual Clarity: Plotshape markers visually highlight the start and end of bullish and bearish phases on the chart, facilitating easy identification of trend shifts and helping traders to stay informed.
Prompt Response: Traders can promptly react to changing market conditions as the script triggers alerts when bullish or bearish phases begin, allowing them to seize potential trading opportunities swiftly.
Informed Decision-Making: By integrating various indicators and visual cues, the script enables traders to make well-informed decisions and adapt their strategies according to prevailing market sentiment, ultimately enhancing their trading performance.
How to use this feature:
The most effective way to maximize the benefits of this feature is to use it in conjunction with other key indicators and visual cues. By combining the color-coded clouds, which indicate bullish and bearish sentiment, with other features such as IS candles, microtrend candles, volume candles, and sentimeter candles, traders can gain a comprehensive understanding of market dynamics. For instance, aligning the color of the clouds with the trend direction indicated by IS candles, microtrend candles, and sentimeter candles can provide confirmation of trend strength or potential reversals.
Furthermore, traders can leverage the trend cloud as a trailing stop-loss tool for long entries, enhancing risk management strategies. By adjusting the stop-loss level based on the color of the cloud, traders can trail their positions to capture potential profits while minimizing losses. For long entries, maintaining the position as long as the cloud remains green can help traders stay aligned with the prevailing bullish sentiment. Conversely, a shift in color from green to red serves as a signal to exit the position, indicating a potential reversal in market sentiment and minimizing potential losses. This integration of the trend cloud as a trailing stop-loss mechanism adds an additional layer of risk management to trading strategies, increasing the likelihood of successful trades while reducing exposure to adverse market movements.
Moreover, the red cloud serves as an indicator of decay in option premiums and potential theta effect, particularly relevant for options traders. When the cloud turns red, it suggests a decline in option prices and an increase in theta decay, highlighting the importance of managing options positions accordingly. Traders may consider adjusting their options strategies, such as rolling positions or closing out contracts, to mitigate the impact of theta decay and preserve capital. By incorporating this insight into options pricing dynamics, traders can make more informed decisions about their options trades.
Scalping Cloud:
The scalping cloud serves as a specialized component within the trend cloud feature, specifically designed to pinpoint potential long and short entry points within the overarching trend cloud. Here's how it works:
Trend Identification: The trend cloud feature typically highlights the prevailing trend direction based on various technical indicators, price action, or other criteria. It visually represents the momentum and direction of the market over a given period.
Refined Entry Signals: Within this broader trend context, the scalping cloud narrows its focus to identify shorter-term trading opportunities. It does this by analyzing more granular price movements and shorter timeframes, seeking out potential entry points that align with the larger trend.
Long and Short Entries: The scalping cloud distinguishes between potential long (buy) and short (sell) entry opportunities within the trend cloud. For instance, within an uptrend indicated by the trend cloud, the scalping cloud might identify brief retracements or pullbacks as potential long entry points. Conversely, in a downtrend, it may signal short entry opportunities during temporary upward corrections.
Risk Management: By identifying potential entry points within the context of the trend, the scalping cloud also aids in risk management. Traders can use these signals to place stop-loss orders and manage their positions effectively, reducing the risk of adverse price movements.
The scalping cloud operates by analyzing the crossover and crossunder events between two key indicators: the Double Exponential Moving Average (DEMA) and a Weighted Average. Here's how it works:
Double Exponential Moving Average (DEMA): DEMA is a type of moving average that seeks to reduce lag by applying a double smoothing technique to price data. It responds more quickly to price changes compared to traditional moving averages, making it suitable for identifying short-term trends and potential trading opportunities.
Weighted Average: The weighted average calculates the average price of an asset over a specified period. However, it incorporates a weighting scheme that assigns more significance to recent price data, resulting in a more responsive indicator that closely tracks current market trends.
CE and NO CE Signals:
CE signals typically represent a Long Scalping Opportunity, suggesting that conditions are favorable for entering a long position. These signals indicate a strong upward momentum in the market, which traders can exploit for short-term gains through scalping strategies.
On the other hand, when there are no CE signals present, it doesn't necessarily mean that the trend has reversed or turned bearish. Instead, it indicates that the trend is still bullish, but the market is experiencing an active pullback. During a pullback, prices may temporarily retreat from recent highs as traders take profits or reevaluate their positions. While the overall trend remains upward, the pullback introduces a degree of uncertainty, making it less favorable for entering new long positions.
In such a scenario, traders may opt to exercise caution and refrain from entering new long positions until the pullback phase has concluded. Instead, they might consider waiting for confirmation signals, such as the resumption of CE signals or other bullish indications, before reengaging in long positions.
PE and NO PE Signals:
PE signals typically indicate a Short Entry opportunity, signaling that market conditions are conducive to entering a short position.
Conversely, when there are no PE signals present, it signifies that while the trend remains bearish, the market is currently in an active phase of consolidation or pullback. During such periods, prices may temporarily rise from recent lows, reflecting a pause in the downward momentum. While the overall trend remains downward, the absence of PE signals suggests that it may not be an optimal time to enter new short positions.
In this context, traders may exercise caution and wait for clearer signals before initiating new short positions. They might monitor the market closely for signs of a resumption in bearish momentum, such as the emergence of PE signals or other bearish indications. Alternatively, traders may choose to wait on the sidelines until market conditions stabilize or provide clearer directional signals.
Working Principle Of CE and PE Signals:
The feature calculates candlestick values based on the open, high, low, and close prices of each bar. By comparing these derived candlestick values, it determines whether the current candlestick is bullish or bearish. Additionally, it signals when there is a change in the color (bullish or bearish) of the derived candlesticks compared to the previous bar, enabling traders to identify potential shifts in market sentiment.
Micro Trend Candles:
Working Principle:
This feature begins by initializing variables to determine trend channel width and track price movements. Average True Range (ATR) is then calculated to measure market volatility, influencing the channel's size. Highs and lows are identified within a specified range, and trends are assessed based on price breaches, with potential changes signaled accordingly. The price channel is continually updated to adapt to market shifts, and arrows are placed to indicate potential entry points. Colors are assigned to represent bullish and bearish trends, dynamically adjusting based on current market conditions. Finally, candles on the chart are colored to visually depict the identified micro trend, offering traders an intuitive way to interpret market sentiment and potential entry opportunities.
Benefits of using Micro Trend Candles:
Traders can use these identified micro trends to spot potential short-term trading opportunities. For example:
Trend Following: Traders may decide to enter trades aligned with the prevailing micro trend. If the candles are consistently colored in a certain direction, traders may consider entering positions in that direction.
Reversals: Conversely, if the script signals a potential reversal by changing the candle colors, traders may anticipate trend reversals and adjust their trading strategies accordingly. For instance, they might close existing positions or enter new positions in anticipation of a trend reversal.
It's important to note that these micro trends are short-term in nature and may not always align with broader market trends. Therefore, traders utilizing this script should consider their trading timeframes and adjust their strategies accordingly.
How to use this feature:
This feature assigns colors to candles to represent bullish and bearish trends, with adjustments made based on current market conditions. Green candles accompanied by a green trend cloud signal a potential long entry, while red candles suggest caution, indicating a bearish trend. This visual representation allows traders to interpret market sentiment intuitively, identifying optimal entry points and exercising caution during potential downtrends.
Scalping Candles (Inspired by Elliott Wave and Open Interest Concepts):
Working Principle:
This feature draws inspiration from the Elliot Wave method, utilizing technical analysis techniques to discern potential market trends and sentiment shifts. It begins by calculating the variance between two Exponential Moving Averages (EMAs) of closing prices, mimicking Elliot Wave's focus on wave and trend analysis. The shorter-term EMA captures immediate price momentum, while the longer-term EMA reflects broader market trends. A smoother Exponential Moving Average (EMA) line, derived from the difference between these EMAs, aids in identifying short-term trend shifts or momentum reversals.
Benefits of using Scalping Candles Inspired by Elliott Wave:
The Elliott Wave principle is a form of technical analysis that attempts to predict future price movements by identifying patterns in market charts. It suggests that markets move in repetitive waves or cycles, and traders can potentially profit by recognizing these patterns.
While this script does not explicitly analyze Elliot Wave patterns, it is inspired by the principle's emphasis on trend analysis and market sentiment. By calculating and visualizing the difference between EMAs and assigning colors to candles based on this analysis, the script aims to provide traders with insights into potential market sentiment shifts, which can align with the broader philosophy of Elliott Wave analysis.
How to use this feature:
Candlestick colors are assigned based on the relationship between the EMA line and the variance. When the variance is below or equal to the EMA line, candles are colored red, suggesting a bearish sentiment. Conversely, when the variance is above the EMA line, candles are tinted green, indicating a bullish outlook. Though not explicitly analyzing Elliot Wave patterns, the script aligns with its principles of trend analysis and market sentiment interpretation. By offering visual cues on sentiment shifts, it provides traders with insights into potential trading opportunities, echoing Elliot Wave's emphasis on pattern recognition and trend analysis.
Chart Timeframe Support and Resistance:
Working Principle:
This feature serves to identify and visualize support and resistance levels on the chart, primarily based on the chosen Chart Timeframe (CTF). It allows users to specify parameters such as the number of bars considered on the left and right sides of each pivot point, as well as line width and label color. Moreover, users have the option to enable or disable the display of these levels. By utilizing functions to calculate pivot highs and lows within the specified timeframe, the script determines the highest high and lowest low surrounding each pivot point.
Additionally, it defines functions to create lines and labels for each detected support and resistance level. Notably, this feature incorporates a trading method that emphasizes the concept of resistance turning into support after breakouts, thereby providing valuable insights for traders employing such strategies. These lines are drawn on the chart, with colors indicating whether the level is above or below the current close price, aiding traders in visualizing key levels and making informed trading decisions.
Benefits of Chart Timeframe Support and Resistance:
Identification of Price Levels: Support and resistance levels help traders identify significant price levels where buying (support) and selling (resistance) pressure may intensify. These levels are often formed based on historical price movements and are regarded as areas of interest for traders.
Decision Making: Support and resistance levels assist traders in making informed trading decisions. By observing price reactions near these levels, traders can gauge market sentiment and adjust their strategies accordingly. For example, traders may choose to enter or exit positions, set stop-loss orders, or take profit targets based on price behavior around these levels.
Risk Management: Support and resistance levels aid in risk management by providing reference points for setting stop-loss orders. Traders often place stop-loss orders below support levels for long positions and above resistance levels for short positions to limit potential losses if the market moves against them.
How to use this feature:
Planning Long Positions: When considering long positions, it's advantageous to strategize when the price is in proximity to a support level identified by the script. This suggests a potential area of buying interest where traders may expect a bounce or reversal in price. Additionally, confirm the bullish bias by ensuring that the trend cloud is green, indicating favorable market conditions for long trades.
Waiting for Breakout: If long signals are generated near resistance levels detected by the script, exercise patience and wait for a breakout above the resistance. A breakout above resistance signifies potential strength in the upward momentum and may present a more opportune moment to enter long positions. This approach aligns with trading methodologies that emphasize confirmation of bullish momentum before initiating trades.
StopLoss and Target Lines:
In addition to generating entry signals, this indicator also incorporates predefined stop-loss ray lines and configurable risk-reward (R:R) target lines to enhance risk management and profit-taking strategies. Here's how these features work:
Predefined Stop-loss Ray Lines: The indicator automatically plots stop-loss ray lines on the chart, serving as visual guidelines for setting stop-loss levels. These stop-loss lines are predetermined based on specific criteria, such as volatility levels, support and resistance zones, or predefined risk parameters. Traders can use these lines as reference points to place their stop-loss orders, aiming to limit potential losses if the market moves against their position.
Configurable Risk-Reward (R:R) Target Lines: In addition to stop-loss lines, the indicator allows traders to set configurable risk-reward (R:R) target lines on the chart. These target lines represent predefined price levels where traders intend to take profits based on their desired risk-reward ratio. By adjusting the placement of these lines, traders can customize their risk-reward ratios according to their trading preferences and risk tolerance.
Risk Management: The predefined stop-loss ray lines help traders manage risk by providing clear exit points if the trade goes against their expectations. By adhering to these predetermined stop-loss levels, traders can minimize potential losses and protect their trading capital, thereby enhancing overall risk management.
Profit-taking Strategy: On the other hand, the configurable R:R target lines assist traders in establishing profit-taking strategies. By setting target levels based on their desired risk-reward ratio, traders can aim to capture profits at predefined price levels that offer favorable risk-reward profiles. This allows traders to systematically take profits while ensuring that potential gains outweigh potential losses over the long term.
The stop-loss and target lines incorporated in this indicator are dynamic in nature, providing traders with the flexibility to utilize them as trailing stop-loss and extended take-profit targets. Here's how these dynamic features work:
Trailing Stop-loss: Traders can employ the stop-loss lines as trailing stop-loss levels, allowing them to adjust their stop-loss orders as the market moves in their favor. As the price continues to move in the desired direction, indicator can dynamically adjust the stop-loss line to lock in profits while still allowing room for potential further gains. This trailing stop-loss mechanism helps traders secure profits while allowing their winning trades to continue running as long as the market remains favorable.
Extended Take Profit Targets: Similarly, traders can utilize the target lines as extended take-profit targets, enabling them to capture additional profits beyond their initial profit targets. By adjusting the placement of these target lines based on evolving market conditions or technical signals, traders can extend their profit-taking strategy to capitalize on potential price extensions or trend continuations. This flexibility allows traders to maximize their profit potential by capturing larger price movements while managing their risk effectively.
Rangebound Bars:
When the Rangebound Bars feature is enabled, the indicator represents candles in a distinct purple color to visually denote periods of sideways or range-bound price action. This visual cue helps traders easily identify when the market is consolidating and lacking clear directional momentum. Here's how it works:
Purple Candle Color: When the Rangebound Bars feature is active, the indicator displays candlesticks in a purple color to highlight periods of sideways price movement. This color differentiation stands out against the usual colors used for bullish (e.g., green or white) and bearish (e.g., red or black) candles, making it easier for traders to recognize range-bound conditions at a glance.
Signaling Sideways Price Action: The purple coloration of candles indicates that price movements are confined within a relatively narrow range and lack a clear upward or downward trend. This may occur when the market is consolidating, experiencing indecision, or undergoing a period of accumulation or distribution.
Working Principle:
The Rangebound Bars feature of this indicator is designed to assist traders in identifying and navigating consolidating market conditions, where price movements are confined within a relatively narrow range. This feature utilizes Pivot levels and the Average True Range (ATR) concept to determine when the market is range-bound and provides signals to stay out of such price action. Here's how it works:
Pivot Levels: Pivot levels are key price levels derived from the previous period's high, low, and closing prices. They serve as potential support and resistance levels and are widely used by traders to identify significant price levels where price action may stall or reverse. The Rangebound Bars feature incorporates Pivot levels into its analysis to identify ranges where price tends to consolidate.
Average True Range (ATR): The Average True Range is a measure of market volatility that calculates the average range between the high and low prices over a specified period. It provides traders with insights into the level of price volatility and helps set appropriate stop-loss and take-profit levels. In the context of the Rangebound Bars feature, ATR is used to gauge the extent of price fluctuations within the identified range.
