ממוצעים נעים
Moneyball EMA-MACD indicator [VinnieTheFish]Summary of the Moneyball EMA-MACD Indicator Script
Author: VinnieTheFish
Purpose:
This indicator helps traders identify trend direction, momentum shifts, and potential trade signals based on EMA and MACD crossovers.
This Pine Script is a custom indicator that combines Exponential Moving Averages (EMAs) and MACD (Moving Average Convergence Divergence) to analyze price trends and momentum. The script uses a custom 9/50 MACD with a 16 smoothing period. The script is written in a way that you can create your own custom MACD settings and create alerts based on those parameters. The chart bars are color coded based on the relative position of the MACD and Signal line primarily for bullish long trade setups.
Bar color coding helps the trader spot potential reversals based on where the price currently resides in relation to the custom 9/50 EMA based MACD and the 16 period smoothing period for the signal line. Indicator also has custom alerts to notify the trader when a potential trade setup exists that correspond with the bar color change.
Question: So why is this called the Moneywell EMA-MACD Indicator?
Answer: In the movie Moneyball the Oakland A's broke down how to win a championship based on data. To make the playoffs you needed so many wins, then broken down by runs and then broken down to base hits. A base hit was good as a walk. With trading often times we look too often for home runs and ignore the importance of getting on base with small wins. This indicator was designed on shorter timeframes to identify those base hits, but can also be adapted to higher timeframes for swing trading.
Key Features:
User Inputs:
Configurable fast and slow lengths for MACD calculation.
Choice between SMA and EMA for oscillator and signal line smoothing.
Customizable signal smoothing length.
EMA Calculation:
Computes 3 EMA, 9 EMA, 20 EMA, and 50 EMA to track short-term and long-term trends.
MACD Calculation:
Computes MACD using either SMA or EMA based on user selection.
Generates the MACD signal line for comparison.
Crossover Conditions:
Detects MACD and Signal line crossovers above and below the zero line.
Identifies price momentum shifts.
Bar Coloring Logic:
Green: MACD is above 0 and above the signal line.
White: MACD is below the signal line.
Orange: MACD is below 0 but above the signal line.
Fuchsia: Bullish EMA 3/9 cross but price is still below the 20/50 EMA.
Alerts for Key Trading Signals:
MACD crossing above/below the zero line.
Signal line crossing above/below the zero line.
MACD reaching new highs/lows.
Alerts for colored bar conditions.
2 Red 1 Green and 5 DMA crossoverIn this script a buy condition is generated when after two preceeding red candles, a green candle crosses over 5 DMA.
15-Min Trend Strategy (MMA, Stoch)A. Setup Criteria (Refined Entry Rules)
- Trend Confirmation (15-Min Chart)
Price must be above the 50 EMA for longs or below for shorts
Confirm higher highs & lows (uptrend) or lower highs & lows (downtrend)
Entry Trigger (1-5 Min Chart)
Stochastic below 30 for long or above 70 for short
Must coincide with a key level rejection (trendline, support, resistance, EMA)
Look for bullish engulfing/pin bar (long) or bearish engulfing/rejection wick (short)
Risk Management
Risk 1-2% per trade (not 4%)
Stop-loss = 1.5 x ATR
Move SL to break-even after price moves 50% to target
Scale out 50% profit at 1:1 risk-reward, let the rest run
US500 15min Indicator with Signals by HazelIndicator Description: Enhanced US500 15min Indicator with Signals
This Pine Script indicator is designed to provide a comprehensive technical analysis tool for trading the US500 (S&P 500) on a 15-minute timeframe. It combines multiple popular technical indicators to generate clear entry and exit signals, helping traders make informed decisions. The indicator is highly customizable and includes separate panels for better visualization of key metrics.
Key Features:
Exponential Moving Averages (EMAs):
Plots three EMAs (Short, Medium, and Long) on the main chart.
Default lengths: 9 (Short), 20 (Medium), and 50 (Long).
Used to identify trends and potential crossovers for entry/exit signals.
Relative Strength Index (RSI):
Plotted in a separate panel.
Default length: 14.
Overbought (70) and oversold (30) levels are highlighted with colored backgrounds.
Helps identify potential reversals or continuations in price momentum.
Moving Average Convergence Divergence (MACD):
Plotted in a separate panel.
Default settings: Fast length (12), Slow length (26), Signal length (9).
Displays the MACD line and Signal line for crossover signals.
Bollinger Bands:
Plotted on the main chart.
Default length: 20, with 2 standard deviations.
Helps identify volatility and potential price breakouts or reversals.
Stochastic Oscillator:
Plotted in a separate panel.
Default length: 14.
Displays %K and %D lines to identify overbought/oversold conditions.
On-Balance Volume (OBV):
Plotted in a separate panel.
Measures buying and selling pressure based on volume.
Volume-Weighted Average Price (VWAP):
Plotted on the main chart.
Helps identify the average price weighted by volume, often used for intraday trading.
Entry/Exit Signals:
Long Entry: Triggered when:
EMA Short crosses above EMA Medium.
RSI is above 50 (bullish momentum).
MACD line crosses above the Signal line.
Long Exit: Triggered when:
EMA Short crosses below EMA Medium.
RSI is below 50 (bearish momentum).
MACD line crosses below the Signal line.
Short Entry: Triggered when:
EMA Short crosses below EMA Medium.
RSI is below 50 (bearish momentum).
MACD line crosses below the Signal line.
Short Exit: Triggered when:
EMA Short crosses above EMA Medium.
RSI is above 50 (bullish momentum).
MACD line crosses above the Signal line.
Signals are displayed as arrows (▲ for long, ▼ for short) on the chart and trigger alerts.
Customizable Inputs:
Users can adjust the lengths of EMAs, RSI, Bollinger Bands, and Stochastic Oscillator to suit their trading strategy.
Visual Enhancements:
Overbought/oversold RSI levels are highlighted with colored backgrounds.
Indicators are plotted in separate panels to avoid clutter on the main chart.
How to Use:
Trend Identification:
Use the EMAs to identify the overall trend. For example:
If EMA Short > EMA Medium > EMA Long, the trend is bullish.
If EMA Short < EMA Medium < EMA Long, the trend is bearish.
Entry Signals:
Look for arrows (▲ for long, ▼ for short) on the chart to identify potential entry points.
Confirm with RSI, MACD, and Stochastic Oscillator for additional confluence.
Exit Signals:
Use the opposite arrows to identify exit points or take-profit levels.
Monitor RSI and MACD for signs of weakening momentum.
Risk Management:
Use Bollinger Bands to identify potential support/resistance levels.
Combine with VWAP for intraday trading strategies.
Alerts:
Set up alerts for entry and exit signals to stay informed of trading opportunities.
Advantages:
Comprehensive Analysis: Combines multiple indicators for a holistic view of the market.
Customizable: Users can adjust settings to fit their trading style.
Clear Signals: Arrows and alerts make it easy to identify trading opportunities.
Separate Panels: Prevents clutter on the main chart, improving readability.
Ideal For:
Intraday traders (15-minute timeframe).
Traders looking for a multi-indicator approach to confirm signals.
Those who prefer customizable tools with clear visual cues.
This indicator is a powerful tool for traders who want to combine trend-following, momentum, and volume-based indicators into a single, easy-to-use script.
Ichimoku Cloud with LablesIchimoku Cloud with Lables and arrow when the conversion line cross the base
killer monk trend scalper This custom indicator brings together several popular tools into one streamlined package. It’s designed to help you spot potential trend reversals and generate clear buy and sell signals. The indicator works by identifying divergences between price and the RSI, using EMA9 and EMA20 to gauge the trend. The Supertrend further confirms the market direction, while a built-in volume filter ensures that signals are only generated during periods of active trading.
A standout feature is its unified trend line, based on EMA9, which changes color dynamically—green when the market is in an uptrend and red during a downtrend. Buy and sell signals are marked directly on the chart, and you can set up alerts so you never miss a trading opportunity.
SNR Quarter Pointsfor btmm swingers
this is qp /quater point find in trading view
Here's a description for your TradingView Pine Script indicator:
---
**Support & Resistance (SNR) Lines Indicator**
This TradingView indicator automatically draws Support and Resistance (SNR) lines on the chart at every 250-pip level, starting from 0.0000. The indicator aims to help traders identify key price levels where the market is likely to experience reversal or consolidation. By plotting lines at regular intervals, the script provides a clear visual representation of potential support and resistance zones, aiding traders in making more informed trading decisions. The levels are dynamically adjusted based on market price movement, ensuring they stay relevant for active trading.
---
Let me know if you’d like to tweak it further!
Tenkan-Sen & Kijun-Sen - MensualThis TradingView script calculates and plots the Tenkan-Sen and Kijun-Sen lines on the monthly timeframe, based on the Ichimoku Kinko Hyo indicator.
Tenkan-Sen (red line): A fast-moving average based on the last 9 periods, used to identify short-term trend changes.
Kijun-Sen (blue line): A slower-moving average based on 26 periods, acting as a stronger support/resistance and a key trend reference.
How to Use in Trading
✅ If the price is above both Kijun-Sen and Tenkan-Sen, the market is considered bullish.
✅ If the price bounces off Kijun-Sen or Tenkan-Sen, it may signal a continuation of the trend.
⚠ If the price breaks below Kijun-Sen, it could indicate a potential trend reversal.
This script helps traders visualize key dynamic support and resistance levels on monthly charts, making informed trading decisions easier. 📈🔥
Trading Script DarkAngelTrading Logic:
The script generates long (buy) signals when:
A swing low is detected and tested multiple times.
RSI is oversold.
Volume is above average.
The trend is up (fast EMA > slow EMA).
MACD crosses bullishly.
Price is within the Fibonacci retracement levels.
The calculated R:R meets the minimum criteria.
Conversely, short (sell) signals are generated when:
A swing high is detected and tested multiple times.
RSI is overbought.
Volume is above average.
The trend is down (fast EMA < slow EMA).
MACD crosses bearishly.
Price is within the Fibonacci retracement levels.
The calculated R:R meets the minimum criteria.
Visualizations and Information:
Plots EMAs, swing high/low levels, Fibonacci retracement and extension levels, stop-loss and profit target lines.
Displays buy/sell signals as triangles on the chart.
Provides labels for swing highs and lows.
Includes an information table showing RSI, MACD, trend, and signal status.
Purpose:
This script aims to assist traders in identifying potential high-probability trading setups by combining multiple technical analysis techniques. It emphasizes confluence, requiring multiple conditions to be met before generating a signal, potentially reducing false signals. The inclusion of R:R calculations helps traders focus on trades with favorable risk profiles. It is important to note that this script, like any other indicator, should not be used in isolation and should be incorporated into a broader trading strategy.
Tdi Killer +RSi DivergenceTDI Killer + RSI Divergence: Advanced Indicator for Trend Reversals and Continuations
Overview
The TDI Killer + RSI Divergence is an advanced RSI-based indicator designed to identify high-probability trend reversals and continuations. It integrates the Traders Dynamic Index (TDI) with RSI divergences and dynamic volatility bands to enhance accuracy. This script is closed-source to maintain the integrity of its unique calculations and optimizations.
Key Features
RSI Divergence Detection: Identifies bullish and bearish divergences for potential trend reversals.
Dynamic Volatility Bands: Adjust to market conditions for improved signal reliability.
SharkFin Alerts: Highlights potential breakout zones when RSI reaches critical thresholds.
MBL Slope Confirmation: Confirms trend direction using the Market Base Line (MBL).
Why This Script is Closed-Source
The TDI Killer + RSI Divergence incorporates advanced calculations and optimized methodologies, providing a unique edge over open-source alternatives. By keeping the script closed-source, we ensure that these proprietary techniques remain exclusive to our users.
How to Use
Buy Signals: Triggered when RSI aligns with bullish conditions and confirmed by MBL slope.
Sell Signals: Triggered when RSI aligns with bearish conditions and confirmed by MBL slope.
SharkFin Alerts: Use these alerts to anticipate potential breakouts or reversals.
Compatibility
This indicator works across all timeframes and market types, including forex, stocks, commodities, and cryptocurrencies. It is designed for traders seeking precise and reliable trading setups.
Disclaimer
While the TDI Killer + RSI Divergence is designed to enhance trading accuracy, no indicator guarantees 100% reliability. Always apply proper risk management and combine this tool with other analysis techniques for best results.
SyakDan FX (Clear Version)**SyakDan FX (Clear Version) - Trend-Following Indicator**
**Overview:**
SyakDan FX (Clear Version) is a clean and effective trend-following indicator designed to help traders identify strong market trends using EMA crossovers and key pivot points. This version simplifies the approach while keeping powerful features for market analysis.
---
**🔹 Features:**
✅ **EMA Crossover Strategy** – Uses customizable **8, 13, and 21 EMAs** to identify trend shifts.
✅ **Pivot Points (Daily & Weekly)** – Highlights key **support & resistance** levels for better trade confluence.
✅ **Breakout Confirmation** – Detects strong **momentum shifts** using EMA crossovers.
✅ **Customizable Moving Averages** – Supports **SMA, EMA, WMA, and HMA** for flexible trend detection.
✅ **Minimal but Effective Risk Management** – Optional **Stop-Loss & Take-Profit levels** based on ATR.
✅ **Multi-Timeframe Adaptability** – Works well on **low (5M, 15M) and higher timeframes**.
---
**⚡ How to Use:**
This indicator is designed for traders who prefer trend-based trading. Users can configure moving averages, SL/TP levels, and alerts based on their own strategies.
📌 *Note: This is a **Lite Version** with selected features. The full version includes advanced features for deeper market analysis.*
If you find this indicator useful, feel free to leave feedback! 🚀
Bias TF Table (ENG)*** Indicator has been created by @Martyn8 "Bias TF Table", Thank you for allowing the code to be open source.
I have done the following modifications:
Translate to English
Reduce The size and text on table
Reduced Table size
Moved Table to top right
Thank you again from @LightChaser-Gino
This indicator is a technical analysis tool designed to evaluate the price trend of an asset across multiple time frames (5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, daily, and weekly).
Main Functions:
Directional Bias: Displays whether the trend is bullish (Up) or bearish (Down) for each time frame, using the closing price in comparison to a 50-period exponential moving average (EMA).
Table Visualization: Presents the results in a table located in the bottom right corner of the chart, making it easy to read and compare trends across different time intervals.
This indicator provides a quick and effective way to assess market direction and make informed trading decisions based on the trend in various time frames.
Advanced Trend & Momentum Predictor v1The High-Precision Trend & Momentum Detector is a multi-tool indicator designed for traders who want reliable buy and sell signals based on advanced trend analysis, momentum, and market volatility. Key features include:
High-Quality Signal Limiter: Limits trades to 2–4 per day to focus only on high-probability setups.
Multi-Timeframe Confirmation: Verifies signals using higher timeframes for accuracy.
Dynamic Leverage Suggestion: Adjusts leverage based on market volatility, ensuring safe and optimized trading.
Divergence Detection (AO & RSI): Identifies potential reversals through divergence patterns.
Take Profit and Stop Loss Levels: Visualizes up to three take-profit levels for each signal.
CPI Impact Awareness: Highlights market impact during CPI announcements for informed decisions.
Overbought and Oversold Zones: Shading for quick identification of critical price zones.
EMA/SMA Ribbon Pro (AUTO HTF + Labels)This indicator is a multi-timeframe (MTF) moving average ribbon that dynamically adjusts to the next highest timeframe. It provides a visual representation of market trends by stacking multiple EMAs and SMAs with customizable color fills and labels.
Features
✅ Multi-Timeframe (MTF) Support: Automatically detects the next highest time frame or allows for manual selection
✅ Customizable Moving Averages: Supports EMA and SMA with different lengths for flexible configuration
✅ Ribbon Visualization: Smooth color transitions between different moving averages for better trend identification
✅ Crossover Labels: Detects bullish and bearish EMA/SMA crossovers and marks them on the chart
✅ Price Labels & Timeframe Display: Displays moving average values to the right of the price axis with customizable label padding and colors
How It Works
Select the HTF mode: Manual or automatic
Choose EMA/SMA lengths to create different ribbons
Enable/disable price labels for each moving average
Customize colors and transparency for ribbons and labels
Crossover labels appear when faster moving averages cross slower ones and vice versa
Use Cases
📌 Trend Identification: Identify bullish and bearish trends using multiple EMAs and SMAs
📌 Support & Resistance Zones: MAs can act as dynamic support and resistance levels
📌 Reversal & Confirmation Signals: Watch for MTF crossovers to confirm trend changes
Customization
🔹 Standard EMA Lengths: 6, 8, 13, 21, 34, 48, 100, 200, 300, 400
🔹 SMA Lengths: 48, 100, 200
🔹 Color Adjustments: Set custom colors for bullish/bearish ribbons
🔹 Crossovers: Enable/disable custom crossover pairs (e.g., 100/200 EMA, 200 EMA/SMA).
This indicator is perfect for traders who rely on multi-timeframe confluence while seeking to enhance their market analysis and decision-making process.
As always, by combining EMA/SMA Ribbon with other tools, traders ensure that they are not relying on a single indicator. This layered approach can reduce the likelihood of false signals and improve overall trading accuracy.
As always, be sure to use any indicator with price action and volume indicators for better trade confirmation!
EMA Ribbon overlay with Trend-Based Color TransitionThis indicator visualizes an EMA Ribbon with a trend-based color transition. It helps traders quickly identify market trends and transitions between bullish and bearish movements.
How It Works
Exponential Moving Averages (EMAs)
The indicator calculates 8 EMAs based on user-defined lengths.
Default values range from 21 to 55 periods.
Trend Identification
A bullish trend is detected when all EMAs are stacked in an upward sequence (shorter EMAs above longer ones).
A bearish trend is detected when all EMAs are stacked in a downward sequence (shorter EMAs below longer ones).
Trend Reversal Detection
A trend shift to bullish occurs when a previously bearish trend turns bullish.
A trend shift to bearish occurs when a previously bullish trend turns bearish.
Color Transition Logic
Green when transitioning from a bearish to bullish trend.
Red when transitioning from a bullish to bearish trend.
Visualization
EMAs are plotted on the chart.
The area between EMAs is filled with green or red, depending on the trend shift.
Use Case
Identifying Trend Shifts: Traders can use color transitions to detect potential entry and exit points.
Confirming Market Direction: Helps confirm bullish and bearish trends before making trading decisions.
Enhanced Visual Clarity: The ribbon structure makes it easy to see trend momentum and potential reversals.
This indicator is useful for trend-following strategies and can be combined with other technical analysis tools for better decision-making. 🚀
Monthly Cummulated Moving Average (MCMA)A specialized moving average indicator that helps identify statistically advantageous trading opportunities based on price position relative to the MCMA line.
📊 Key Statistical Edge
The core strength of this indicator lies in its ability to identify higher probability trades:
Trades taken when price is above MCMA historically show higher win rates
Monthly calculations provide a robust baseline for trend identification
Daily updates allow for precise entry timing while maintaining monthly context
🎯 Trading Applications
Long Entry Filter:
Wait for price to trade above MCMA before considering long positions
Use as a primary filter to avoid lower probability setups
Combines daily precision with monthly trend context
Risk Management:
MCMA serves as a dynamic invalidation level
Consider closing longs when price falls below MCMA
Use as a trailing reference for position management
📈 Implementation
Calculates on daily bars for precision
Resets monthly for trend context
Plots a single line that serves as a statistical reference
Simple yet effective design focused on practical trading application
💡 Best Practices
Focus on long setups when price is trading above MCMA
Combine with volume analysis for confirmation
Pay attention to how price interacts with the MCMA line
Use alongside your existing strategy as a statistical filter
🔧 Technical Details
Built in Pine Script™ v5
Updates daily for maximum precision
Maintains monthly context for trend alignment
Optimized for computational efficiency
Cognitive Echo IndexCognitive Echo Index – User Guide
Overview
The Cognitive Echo Index is a composite indicator that combines several technical aspects—including price deviation from a moving average, normalized volatility (via ATR), and volume variations—to create a single numeric value. The output is scaled between -100 and +100, offering insights into market momentum and potential trend reversals.
How It Works
Price Component:
The indicator calculates the percentage change between the current price and its 14-period simple moving average (SMA). This helps identify how far the price deviates from its recent trend.
Volatility Component:
Using the Average True Range (ATR) over a 14-period, the script normalizes current ATR against its 14-period SMA. This shows relative volatility, highlighting unusual market activity.
Volume Component:
It computes the percentage change between the current volume and its 14-period SMA to detect spikes or drops in trading activity.
Composite Calculation:
The three components are summed together to produce the final index value, which is then clipped to remain between -100 and +100.
Interpreting the Indicator
Indicator Value Scale:
Positive Values (0 to +100):
Suggest that bullish forces are stronger. Higher values (e.g., above +50) could indicate a strong bullish sentiment.
Negative Values (0 to -100):
Indicate bearish pressures. Lower values (e.g., below -50) may signal strong bearish conditions.
Zero Level:
The midline indicates a balanced market condition with no dominant trend.
Key Horizontal Levels:
+50 Level:
When the indicator crosses above +50, it can be interpreted as a strong bullish signal.
-50 Level:
When the indicator crosses below -50, it can be considered a strong bearish signal.
Usage Tips
Confirmation Tool:
Use the Cognitive Echo Index as an additional confirmation tool in conjunction with other technical indicators or chart patterns to make more informed trading decisions.
Parameter Adjustments:
The script uses a 14-period setting for the moving average, ATR, and volume SMA by default. Depending on your trading timeframe or asset, consider tweaking these periods for better sensitivity.
Trend Analysis:
Watch how the indicator behaves during major price moves. A divergence between the index and the price trend (e.g., price rises while the index falls) may suggest a potential reversal or a false breakout.
Risk Management:
Always incorporate sound risk management practices. Use stop losses and position sizing rules, and consider the indicator as one part of your overall trading strategy.
Customization
Adjusting the Weights:
Although the current version gives equal weight to all three components, advanced users can modify the script to apply different weights to the price, volatility, and volume components based on historical performance or specific market conditions.
Adding Additional Inputs:
Future versions could incorporate external sentiment data or other technical factors if accessible. For now, the indicator focuses on technical inputs available directly within TradingView.
By following this guide, traders can integrate the Cognitive Echo Index into their TradingView platform to gain a unique perspective on market momentum and potential turning points. Enjoy testing and refining the indicator to better suit your trading style!
BTC Future Gamma-Weighted Momentum Model (BGMM)The BTC Future Gamma-Weighted Momentum Model (BGMM) is a quantitative trading strategy that utilizes the Gamma-weighted average price (GWAP) in conjunction with a momentum-based approach to predict price movements in the Bitcoin futures market. The model combines the concept of weighted price movements with trend identification, where the Gamma factor amplifies the weight assigned to recent prices. It leverages the idea that historical price trends and weighting mechanisms can be utilized to forecast future price behavior.
Theoretical Background:
1. Momentum in Financial Markets:
Momentum is a well-established concept in financial market theory, referring to the tendency of assets to continue moving in the same direction after initiating a trend. Any observed market return over a given time period is likely to continue in the same direction, a phenomenon known as the “momentum effect.” Deviations from a mean or trend provide potential trading opportunities, particularly in highly volatile assets like Bitcoin.
Numerous empirical studies have demonstrated that momentum strategies, based on price movements, especially those correlating long-term and short-term trends, can yield significant returns (Jegadeesh & Titman, 1993). Given Bitcoin’s volatile nature, it is an ideal candidate for momentum-based strategies.
2. Gamma-Weighted Price Strategies:
Gamma weighting is an advanced method of applying weights to price data, where past price movements are weighted by a Gamma factor. This weighting allows for the reinforcement or reduction of the influence of historical prices based on an exponential function. The Gamma factor (ranging from 0.5 to 1.5) controls how much emphasis is placed on recent data: a value closer to 1 applies an even weighting across periods, while a value closer to 0 diminishes the influence of past prices.
Gamma-based models are used in financial analysis and modeling to enhance a model’s adaptability to changing market dynamics. This weighting mechanism is particularly advantageous in volatile markets such as Bitcoin futures, as it facilitates quick adaptation to changing market conditions (Black-Scholes, 1973).
Strategy Mechanism:
The BTC Future Gamma-Weighted Momentum Model (BGMM) utilizes an adaptive weighting strategy, where the Bitcoin futures prices are weighted according to the Gamma factor to calculate the Gamma-Weighted Average Price (GWAP). The GWAP is derived as a weighted average of prices over a specific number of periods, with more weight assigned to recent periods. The calculated GWAP serves as a reference value, and trading decisions are based on whether the current market price is above or below this level.
1. Long Position Conditions:
A long position is initiated when the Bitcoin price is above the GWAP and a positive price movement is observed over the last three periods. This indicates that an upward trend is in place, and the market is likely to continue in the direction of the momentum.
2. Short Position Conditions:
A short position is initiated when the Bitcoin price is below the GWAP and a negative price movement is observed over the last three periods. This suggests that a downtrend is occurring, and a continuation of the negative price movement is expected.
Backtesting and Application to Bitcoin Futures:
The model has been tested exclusively on the Bitcoin futures market due to Bitcoin’s high volatility and strong trend behavior. These characteristics make the market particularly suitable for momentum strategies, as strong upward or downward movements are often followed by persistent trends that can be captured by a momentum-based approach.
Backtests of the BGMM on the Bitcoin futures market indicate that the model achieves above-average returns during periods of strong momentum, especially when the Gamma factor is optimized to suit the specific dynamics of the Bitcoin market. The high volatility of Bitcoin, combined with adaptive weighting, allows the model to respond quickly to price changes and maximize trading opportunities.
Scientific Citations and Sources:
• Jegadeesh, N., & Titman, S. (1993). Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency. The Journal of Finance, 48(1), 65–91.
• Black, F., & Scholes, M. (1973). The Pricing of Options and Corporate Liabilities. Journal of Political Economy, 81(3), 637–654.
• Fama, E. F., & French, K. R. (1992). The Cross-Section of Expected Stock Returns. The Journal of Finance, 47(2), 427–465.
GWAP (Gamma Weighted Average Price)Gamma Weighted Average Price (GWAP) Indicator
The Gamma Weighted Average Price (GWAP) is a dynamic financial indicator that applies exponentially decaying weights to historical prices to calculate a weighted average. The method leverages the exponential decay function, controlled by a gamma factor, to prioritize recent price data while gradually diminishing the influence of older observations. This approach builds upon techniques commonly found in time-series analysis, including Exponentially Weighted Moving Averages (EWMA), which are extensively used in financial modeling (Campbell, Lo & MacKinlay, 1997).
Theoretical Context and Justification
The gamma-weighted approach follows principles similar to those in Exponentially Weighted Moving Averages (EWMA), often used in volatility modeling, where weights decay exponentially over time. The exponential decay model can improve signal responsiveness compared to simple moving averages (Hyndman & Athanasopoulos, 2018). This design helps capture recent market dynamics without ignoring past trends, a common requirement in high-frequency trading systems (Bandi & Russell, 2006).
Practical Applications
1. Trend Detection:
The GWAP can help identify bullish and bearish trends:
• When the price is above GWAP, the market exhibits bullish momentum.
• Conversely, when the price is below GWAP, bearish momentum prevails.
2. Volatility Filtering:
Because of the gamma weighting mechanism, GWAP reduces the noise commonly seen in volatile markets, making it a useful tool for traders looking to smooth price fluctuations while retaining actionable signals.
3. Crossovers for Trade Signals:
Similar to moving average strategies, traders can use price crossovers with the GWAP as trade signals:
• Buy Signal: When the price crosses above the GWAP.
• Sell Signal: When the price crosses below the GWAP.
4. Adaptive Gamma Weighting:
The gamma factor allows for further customization.
• Higher gamma values (>1) place greater emphasis on older data, suitable for long-term trend analysis.
• Lower gamma values (<1) heavily weight recent price movements, ideal for fast-moving markets.
Example Use Case
A trader analyzing the S&P 500 may use a gamma factor of 0.92 with a 14-period GWAP to detect shifts in market sentiment during periods of heightened volatility. When the index price crosses above the GWAP, this could signal a potential recovery, prompting a buy entry. Conversely, when the price moves below the GWAP during a correction, it may suggest a short-selling opportunity.
Scientific References
• Campbell, J. Y., Lo, A. W., & MacKinlay, A. C. (1997). The Econometrics of Financial Markets. Princeton University Press.
• Hyndman, R. J., & Athanasopoulos, G. (2018). Forecasting: Principles and Practice. OTexts.
• Bandi, F. M., & Russell, J. R. (2006). Microstructure Noise, Realized Variance, and Optimal Sampling. Econometrica.
Sma Indicator with Ratio (pr)SMA Indicator with Ratio (PR) is a technical analysis tool designed to provide insights into the relationship between multiple Simple Moving Averages (SMAs) across different time frames. This indicator combines three key SMAs: the 111-period SMA, 730-period SMA, and 1400-period SMA. Additionally, it introduces a ratio-based approach, where the 730-period SMA is multiplied by factors of 2, 3, 4, and 5, allowing users to analyze potential market trends and price movements in relation to different SMA levels.
What Does This Indicator Do?
The primary function of this indicator is to track the movement of prices in relation to several SMAs with varying periods. By visualizing these SMAs, users can quickly identify:
Short-term trends (111-period SMA)
Medium-term trends (730-period SMA)
Long-term trends (1400-period SMA)
Additionally, the multiplied versions of the 730-period SMA provide deeper insights into potential price reactions at different levels of market volatility.
How Does It Work?
The 111-period SMA tracks the shorter-term price trend and can be used for identifying quick market movements.
The 730-period SMA represents a longer-term trend, helping users gauge overall market sentiment and direction.
The 1400-period SMA acts as a very long-term trend line, giving users a broad perspective on the market’s movement.
The ratio-based SMAs (2x, 3x, 4x, 5x of the 730-period SMA) allow for an enhanced understanding of how the price reacts to higher or lower volatility levels. These ratios are useful for identifying key support and resistance zones in a dynamic market environment.
Why Use This Indicator?
This indicator is useful for traders and analysts who want to track the interaction of price with different moving averages, enabling them to make more informed decisions about potential trend reversals or continuations. The added ratio-based values enhance the ability to predict how the market might react at different levels.
How to Use It?
Trend Confirmation: Traders can use the indicator to confirm the direction of the market. If the price is above the 111, 730, or 1400-period SMA, it may indicate an uptrend, and if below, a downtrend.
Support/Resistance Levels: The multiplied versions of the 730-period SMA (2x, 3x, 4x, 5x) can be used as dynamic support or resistance levels. When the price approaches or crosses these levels, it might indicate a change in the trend.
Volatility Insights: By observing how the price behaves relative to these SMAs, traders can gauge market volatility. Higher multiples of the 730-period SMA can signal more volatile periods where price movements are more pronounced.
Engulfing Pattern with Volume and EMAs
**Strategy Overview:
This strategy combines price action (Engulfing patterns), volume analysis, trend confirmation (EMAs), and noise reduction (ATR filter) to generate high-probability trading signals.
Engulfing Pattern with Volume, EMAs, and Market Noise Filter**
This strategy identifies bullish and bearish Engulfing candlestick patterns, combined with volume analysis, moving averages (EMAs), and a market noise filter to generate trading signals.
**Key Components:**
1. **Engulfing Pattern Detection:**
- **Bullish Engulfing**: A green candle completely engulfs the previous red candle.
- **Bearish Engulfing**: A red candle completely engulfs the previous green candle.
2. **Volume Filter:**
- Signals are validated only if the current volume is higher than the 20-period Simple Moving Average (SMA) of volume.
3. **EMA Indicators:**
- Three EMAs are plotted: 50-period (blue), 89-period (orange), and 200-period (red).
- These EMAs help identify the trend direction and provide additional confirmation.
4. **Market Noise Filter:**
- Uses the Average True Range (ATR) to filter out insignificant price movements.
- A signal is considered valid only if the price movement (absolute difference between open and close) is greater than 0.5 times the 14-period ATR.
**Trading Signals:**
**Buy Signal**:
- Bullish Engulfing pattern + High volume (above SMA 20) + Significant price movement (filtered by ATR).
- Plotted as a green "BUY" label below the candle.
**Sell Signal**:
- Bearish Engulfing pattern + High volume (above SMA 20) + Significant price movement (filtered by ATR).
- Plotted as a red "SELL" label above the candle.
**Customization:**
- Users can adjust EMA lengths, volume SMA period, and ATR multiplier to suit their trading preferences.
EMA CROSS v1.0 by ScorpioneroIndicator Description: Multi-Timeframe SMA Table & Plot
This indicator displays a structured table of Simple Moving Averages (SMA) across multiple timeframes and plots them directly on the chart for better trend analysis.
Features:
✅ Multi-Timeframe SMA Calculation: Computes SMAs for different periods (10, 60, and 223) across six timeframes (1m, 3m, 5m, 15m, 30m, 60m).
✅ Sorted SMA Table: Displays a table in the bottom-right corner of the chart, showing the three SMAs per timeframe, sorted in descending order.
✅ Color-Coded Cells: Each SMA is highlighted with a specific color:
🟡 Yellow → 10-period SMA
🔵 Blue → 60-period SMA
🟣 Purple → 223-period SMA
⚪ Gray → Other values
✅ SMA Plotting on the Chart: All calculated SMAs are plotted directly on the price chart, allowing users to visualize their interaction with price movements.
How to Use:
The table provides a quick overview of SMA rankings across timeframes, helping identify bullish or bearish trends.
The SMA plots on the chart can be used for dynamic support/resistance analysis and trend confirmation.
This indicator is ideal for traders who rely on multi-timeframe trend analysis to make informed trading decisions! 🚀
by Scorpionero
