Multi-Timeframe Supertrend Strategy_NIXIts an intraday trend following indicator.
Explanation of Key Parts
Multi-Timeframe Supertrend:
get_supertrend function retrieves Supertrend values for specified length, factor, and timeframe.
Signal Logic:
Primary Buy Condition: isBuyPrimary is true when all Supertrend values are below the current price.
Buy Confirmation: isBuyConfirm checks if the last closed candle was above the 45-minute Supertrend.
Buy Trigger: isBuyTrigger activates when the price crosses above the high of the confirmation candle.
Similarly, Sell Trigger is set up with the opposite conditions.
Stop-Loss Conditions:
Stop-loss triggers for Buy and Sell positions if the price closes below or above the Supertrend (10,1) level, respectively.
Plots:
Buy/Sell signals and Stop Losses are visually plotted for easier tracking.
廣量指標
Supertrend EMA & KNNSupertrend EMA & KNN
The Supertrend EMA indicator cuts through the noise to deliver clear trend signals.
This tool is built using the good old Exponential Moving Averages (EMAs) with a novel of machine learning; KNN (K Nearest Neighbors) breakout detection method.
Key Features:
Effortless Trend Identification: Supertrend EMA simplifies trend analysis by automatically displaying a color-coded EMA. Green indicates an uptrend, red signifies a downtrend, and the absence of color suggests a potential range.
Dynamic Breakout Detection: Unlike traditional EMAs, Supertrend EMA incorporates a KNN-based approach to identify breakouts. This allows for faster color changes compared to standard EMAs, offering a more dynamic picture of the trend.
Customizable Parameters: Fine-tune the indicator to your trading style. Adjust the EMA length for trend smoothing, KNN lookback window for breakout sensitivity, and breakout threshold for filtering noise.
A Glimpse Under the Hood:
Dual EMA Power: The indicator utilizes two EMAs. A longer EMA (controlled by the "EMA Length" parameter) provides a smooth trend direction, while a shorter EMA (controlled by the "Short EMA Length" parameter) triggers color changes, aiming for faster response to breakouts.
KNN Breakout Detection: This innovative feature analyzes price action over a user-defined lookback period (controlled by the "KNN Lookback Length" parameter) to identify potential breakouts. If the price surpasses a user-defined threshold (controlled by the "Breakout Threshold" parameter) above the recent highs, a green color is triggered, signaling a potential uptrend. Conversely, a breakdown below the recent lows triggers a red color, indicating a potential downtrend.
Trading with Supertrend EMA:
Ride the Trend: When the indicator displays green, look for long (buy) opportunities, especially when confirmed by bullish price action patterns on lower timeframes. Conversely, red suggests potential shorting (sell) opportunities, again confirmed by bearish price action on lower timeframes.
Embrace Clarity: The color-coded EMA provides a clear visual representation of the trend, allowing you to focus on price action and refine your entry and exit strategies.
A Word of Caution:
While Supertrend EMA offers faster color changes than traditional EMAs, it's important to acknowledge a slight inherent lag. Breakout detection relies on historical data, and there may be a brief delay before the color reflects a new trend.
To achieve optimal results, consider:
Complementary Tools: Combine Supertrend EMA with other indicators or price action analysis for additional confirmation before entering trades.
Solid Risk Management: Always practice sound risk management strategies such as using stop-loss orders to limit potential losses.
Supertrend EMA is a powerful tool designed to simplify trend identification and enhance your trading experience. However, remember, no single indicator guarantees success. Use it with a comprehensive trading strategy and disciplined risk management for optimal results.
Disclaimer:
While the Supertrend EMA indicator can be a valuable tool for identifying potential trend changes, it's important to note that it's not infallible. Market conditions can be highly dynamic, and indicators may sometimes provide false signals. Therefore, it's crucial to use this indicator in conjunction with other technical analysis tools and sound risk management practices. Always conduct thorough research and consider consulting with a financial advisor before making any investment decisions.
Keltner Channel with Forecast It is recommended to use the 15-minute chart along with Heikin Ashi candles. The two blue lines represent the 15-minute Keltner Channel, while the green lines represent the 1-hour Keltner Channel. This setup provides a clearer view of both short-term and longer-term market trends, helping traders make more informed decisions based on the combined insights from the 15-minute and 1-hour timeframes.
The entire code aims to display market dynamics on the chart based on two indicators: the Keltner Channel and volume. This allows traders to identify potential reversal points (when the price touches the Keltner bands) and areas where there is increased market activity (changes in volume). With this information, traders can make more informed decisions about opening or closing positions.
The code generates forecasts based on the touches of the bands, and the yellow line acts as an additional volume indicator, suggesting important market changes.
Expanded Keltner Channel with Forecast The entire code aims to display market dynamics on the chart based on two indicators: the Keltner Channel and volume. This allows traders to identify potential reversal points (when the price touches the Keltner bands) and areas where there is increased market activity (changes in volume). With this information, traders can make more informed decisions about opening or closing positions.
The code generates forecasts based on the touches of the bands, and the yellow line acts as an additional volume indicator, suggesting important market changes.
CVD + VWAP, Multi-InputEdit of TradingView's indicator, the Lower-Time-Frame Cumulative-Volume-Delta (LTF CVD), with Multi-Input Volume Aggregation
This indicator enhances TradingView's Cumulative Volume Delta (CVD) by enabling volume aggregation across multiple inputs. Perfect for aggregating volume data from different sources like multiple exchanges, or even different symbols sharing the same denomination (e.g., USDT pairs).
Added Features:
- Multiple Input Support: Aggregate volume from up to 7 different sources
- Toggle Individual Inputs: Enable/disable each input source
- Smart Timeframe Selection: Automatically calculates optimal timeframe granularity to display maximum historical data
- Custom Timeframe Option: Manual override for specific timeframe requirements
- VWAP Integration: Calculates volume-weighted average price across all selected inputs
- Net Trade Display: Shows total net buying/selling volume across all sources
- Maintains LTF Data Accuracy: Uses lower timeframe data for precise volume calculations
Perfect for:
- Analyzing combined trading activity from multiple sources
- Tracking complete volume history across different venues
- Comparing volume patterns between different inputs
- Getting a comprehensive view of buying/selling pressure
Based on TradingView's original CVD indicator, maintaining its core functionality while adding multi-input capabilities.
Flowking SniperLiquidity Zone Indicator: An Overview
This indicator is designed to highlight "liquidity zones" and display key price movement signals known as "signal dots" on the chart. These liquidity zones are based on price levels that end in 0 or 5, often seen as key support or resistance levels in financial markets. The indicator is particularly effective for analyzing reversals and trends when price movements break through these critical levels.
Key Features of the Liquidity Zone Indicator:
Signal Dots:
Green Dot: Signals an upward trend. This appears when certain conditions are met that indicate potential price movement upwards.
Red Dot: Signals a downward trend. This appears when conditions are favorable for downward price movement.
Liquidity Zones:
These zones help identify areas where price may be more likely to reverse or encounter support/resistance. The upper zones have a higher probability of a downward movement (supply zones), while the lower zones may indicate potential upward movement (demand zones).
Usage Notes:
The indicator is well-suited for observing price action on the 1-hour timeframe, particularly for assets with volatility, such as gold (XAUUSD). Suggested stop-loss distance is approximately 700 points when using this indicator to help manage risk.
Flowking Sniper FB: Thanu vorachatLiquidity Zone Indicator: An Overview
This indicator is designed to highlight "liquidity zones" and display key price movement signals known as "signal dots" on the chart. These liquidity zones are based on price levels that end in 0 or 5, often seen as key support or resistance levels in financial markets. The indicator is particularly effective for analyzing reversals and trends when price movements break through these critical levels.
Key Features of the Liquidity Zone Indicator:
Signal Dots:
Green Dot: Signals an upward trend. This appears when certain conditions are met that indicate potential price movement upwards.
Red Dot: Signals a downward trend. This appears when conditions are favorable for downward price movement.
Liquidity Zones:
These zones help identify areas where price may be more likely to reverse or encounter support/resistance. The upper zones have a higher probability of a downward movement (supply zones), while the lower zones may indicate potential upward movement (demand zones).
Usage Notes:
The indicator is well-suited for observing price action on the 1-hour timeframe, particularly for assets with volatility, such as gold (XAUUSD). Suggested stop-loss distance is approximately 700 points when using this indicator to help manage risk.
Médias Móveis Múltiplas Renato GEsse código Pine Script calcula e exibe no gráfico cinco médias móveis simples (SMA) com diferentes períodos, permitindo uma análise detalhada das tendências de curto, médio e longo prazo. Cada média móvel é configurada com uma cor específica e espessura de linha para facilitar a visualização.
Descrição do Código:
Versão: Pine Script™ 5
Título: "Médias Móveis Múltiplas"
Objetivo: Traçar as médias móveis dos períodos 10, 50, 100, 200 e 250 sobre o gráfico de preços, auxiliando na identificação de tendências e possíveis pontos de entrada ou saída com base na direção das médias móveis.
Funcionamento:
Plot de Fechamento: A linha azul representa o preço de fechamento atual de cada candle, servindo como referência visual para a posição dos preços em relação às médias móveis.
Cálculo das Médias Móveis:
10 períodos (laranja): Indica a tendência de curto prazo, reagindo rapidamente às mudanças de preço.
50 períodos (amarelo): Captura uma tendência de médio prazo, sendo útil para confirmar reversões e movimentos intermediários.
100 períodos (verde): Dá uma visão mais estável de médio a longo prazo.
200 períodos (vermelho): Média móvel de longo prazo, amplamente utilizada no mercado para definir direções de tendência primária.
250 períodos (roxo): Fornece uma referência para tendências de longo prazo em períodos de análise mais estendidos.
Plotagem das Médias: Cada média é plotada com cores e espessuras diferentes:
Curto prazo com espessuras finas (laranja e amarelo) para menos impacto visual.
Médio e longo prazo com espessuras mais grossas (verde, vermelho e roxo) para destaque.
Esse script é ideal para investidores e traders que buscam identificar tendências e pontos de reversão ao observar como os preços interagem com médias móveis de diferentes períodos.
Average Yield InversionDescription:
This script calculates and visualizes the average yield curve spread to identify whether the yield curve is inverted or normal. It takes into account short-term yields (1M, 3M, 6M, 2Y) and long-term yields (10Y, 30Y).
Positive values: The curve is normal, indicating long-term yields are higher than short-term yields. This often reflects economic growth expectations.
Negative values: The curve is inverted, meaning short-term yields are higher than long-term yields, a potential signal of economic slowdown or recession.
Key Features:
Calculates the average spread between long-term and short-term yields.
Displays a clear graph with a zero-line reference for quick interpretation.
Useful for tracking macroeconomic trends and potential market turning points.
This tool is perfect for investors, analysts, and economists who need to monitor yield curve dynamics at a glance.
Profit Hunter - RS Supernova中文說明
狩利 (Profit Hunter) - RS 超新星 是一款專為加密貨幣市場設計的相對強度篩選指標，靈感來自 Mark Minervini 和 William O'Neil 的投資理念。此指標透過「RS 超新星」篩選概念，幫助交易者聚焦在市場中的極端強勢標的，從而更精準地捕捉高潛力的進場機會。
指標用途
RS 評級 (RS Rating)：基於相對強度 (Relative Strength) 概念，將標的與整體市場 (TOTAL 指數) 進行比較，得出 RS 評級。當 RS 評級超過 85 時，該標的被視為具有極強的上漲動能，是潛在的進場目標。
高潛力篩選：此指標利用動態加權計算方式，篩選出相對強勢的標的，讓交易者可以聚焦於具有突破潛力的資產。
即時數據顯示：在圖表上即時顯示 RS 評級，提供清晰的數據支持，使交易者快速判斷標的的強度並做出即時決策。
狩利-RS 超新星 專為追求市場主流趨勢的交易者設計，特別適合應用 Minervini 和 O'Neil 理論的投資者。該指標幫助您在市場波動中篩選出最具相對強度的標的，確保每次進場都是基於高潛力的技術分析。
English Description
Profit Hunter - RS Supernova is a relative strength (RS) filtering indicator specifically designed for the cryptocurrency market, inspired by the investment philosophies of Mark Minervini and William O'Neil. Through the concept of the "RS Supernova," this indicator helps traders focus on exceptionally strong assets within the market, enabling precise entry into high-potential opportunities.
Indicator Purpose
RS Rating: Based on Relative Strength (RS) analysis, the indicator compares the asset to the overall market (TOTAL index) to generate an RS Rating. When the RS rating exceeds 85, the asset is considered to have substantial upward momentum, marking it as a potential entry target.
High-Potential Screening: Utilizing a dynamic weighted calculation, this indicator filters out assets with relative strength, allowing traders to concentrate on those with breakout potential.
Real-Time Data Display: The RS Rating is displayed on the chart, providing clear data for quick assessment of asset strength and enabling real-time decision-making.
Profit Hunter - RS Supernova is designed for traders seeking to capture mainstream market trends, especially those following Minervini and O'Neil's theories. This indicator aids in identifying the strongest assets amidst market fluctuations, ensuring each entry is backed by high-potential technical analysis.
Open to High/Low % Movementto track the movement of open to low and open to high in % terms, please create a trading view pine script which can plot this movement in a separate chart
Effective Volume (ADV) v3Effective Volume (ADV) v3: Enhanced Accumulation/Distribution Analysis Tool
This indicator is an updated version of the original script by cI8DH, now upgraded to Pine Script v5 with added functionality, including the Volume Multiple feature. The tool is designed for analyzing Accumulation/Distribution (A/D) volume, referred to here as "Effective Volume," which represents the volume impact in alignment with price direction, providing insights into bullish or bearish trends through volume.
Accumulation/Distribution Volume Analysis : The script calculates and visualizes Effective Volume (ADV), helping traders assess volume strength in relation to price action. By factoring in bullish or bearish alignment, Effective Volume highlights points where volume strongly supports price movements.
Volume Multiple Feature for Volume Multiplication : The Volume Multiple setting (default value 2) allows you to set a multiplier to identify bars where Effective Volume exceeds the previous bar’s volume by a specified factor. This feature aids in pinpointing significant shifts in volume intensity, often associated with potential trend changes.
Customizable Aggregation Types : Users can choose from three volume aggregation types:
Simple - Standard SMA (Simple Moving Average) for averaging Effective Volume
Smoothed - RMA (Recursive Moving Average) for a less volatile, smoother line
Cumulative - Accumulated Effective Volume for ongoing trend analysis
Volume Divisor : The “Divide Vol by” setting (default 1 million) scales down the Effective Volume value for easier readability. This allows Effective Volume data to be aligned with the scale of the price chart.
Visualization Elements
Effective Volume Columns : The Effective Volume bar plot changes color based on volume direction:
Green Bars : Bullish Effective Volume (volume aligns with price movement upwards)
Red Bars : Bearish Effective Volume (volume aligns with price movement downwards)
Moving Average Lines :
Volume Moving Average - A gray line representing the moving average of total volume.
A/D Moving Average - A blue line showing the moving average of Accumulation/Distribution (A/D) Effective Volume.
High ADV Indicator : A “^” symbol appears on bars where the Effective Volume meets or exceeds the Volume Multiple threshold, highlighting bars with significant volume increase.
How to Use
Analyze Accumulation/Distribution Trends : Use Effective Volume to observe if bullish or bearish volume aligns with price direction, offering insights into the strength and sustainability of trends.
Identify Volume Multipliers with Volume Multiple : Adjust Volume Multiple to track when Effective Volume has notably increased, signaling potential shifts or strengthening trends.
Adjust Volume Display : Use the volume divisor setting to scale Effective Volume for clarity, especially when viewing alongside price data on higher timeframes.
With customizable parameters, this script provides a flexible, enhanced perspective on Effective Volume for traders analyzing volume-based trends and reversals.
Jackson Volume breaker Indication# Jackson Volume Breaker Beta
### Advanced Volume Analysis Indicator
## Description
The Jackson Volume Breaker Beta is a sophisticated volume analysis tool that helps traders identify buying and selling pressure by analyzing price action and volume distribution. This indicator separates and visualizes buying and selling volume based on where the price closes within each candle's range, providing clear insights into market participation and potential trend strength.
## Key Features
1. **Smart Volume Distribution**
- Automatically separates buying and selling volume
- Color-coded volume bars (Green for buying, Red for selling)
- Winning volume always displayed on top for quick visual reference
2. **Real-time Volume Analysis**
- Shows current candle's buy/sell ratio
- Displays total volume with smart number formatting (K, M, B)
- Percentage-based volume distribution
3. **Technical Overlays**
- 20-period Volume Moving Average
- Dynamic scaling relative to price action
- Clean, uncluttered visual design
## How to Use
### Installation
1. Add the indicator to your chart
2. Adjust the Volume Scale input based on your preference (default: 0.08)
3. Toggle the Moving Average display if desired
### Reading the Indicator
#### Volume Bars
- **Green Bars**: Represent buying volume
- **Red Bars**: Represent selling volume
- **Stacking**: The larger volume (winning side) is always displayed on top
- **Height**: Relative to the actual volume, scaled for chart visibility
#### Information Table
The top-right table shows three key pieces of information:
1. **Left Percentage**: Winning side's volume percentage
2. **Middle Percentage**: Losing side's volume percentage
3. **Right Number**: Total volume (abbreviated)
### Trading Applications
1. **Trend Confirmation**
- Strong buying volume in uptrends confirms bullish pressure
- High selling volume in downtrends confirms bearish pressure
- Volume divergence from price can signal potential reversals
2. **Support/Resistance Breaks**
- High volume on breakouts suggests stronger moves
- Low volume on breaks might indicate false breakouts
- Monitor volume distribution for break direction confirmation
3. **Reversal Identification**
- Volume shift from selling to buying can signal potential bottoms
- Shift from buying to selling can indicate potential tops
- Use with price action for better entry/exit points
## Input Parameters
1. **Volume Scale (0.01 to 1.0)**
- Controls the height of volume bars
- Default: 0.08
- Adjust based on your chart size and preference
2. **Show MA (True/False)**
- Toggles 20-period volume moving average
- Useful for identifying volume trends
- Default: True
3. **MA Length (1+)**
- Changes the moving average period
- Default: 20
- Higher values for longer-term volume trends
## Best Practices
1. **Multiple Timeframe Analysis**
- Compare volume patterns across different timeframes
- Look for volume convergence/divergence
- Use higher timeframes for major trend confirmation
2. **Combine with Other Indicators**
- Price action patterns
- Support/resistance levels
- Momentum indicators
- Trend indicators
3. **Volume Pattern Recognition**
- Monitor for unusual volume spikes
- Watch for volume climax patterns
- Identify volume dry-ups
## Tips for Optimization
1. Adjust the Volume Scale based on your chart size
2. Use smaller timeframes for detailed volume analysis
3. Compare current volume bars to historical patterns
4. Watch for volume/price divergences
5. Monitor volume distribution changes near key price levels
## Note
This indicator works best when combined with proper price action analysis and risk management strategies. It should not be used as a standalone trading system but rather as part of a comprehensive trading approach.
## Version History
- Beta Release: Initial public version
- Features buy/sell volume separation, moving average, and real-time analysis
- Optimized for both intraday and swing trading timeframes
## Credits
Developed by Jackson based on other script creators
Special thanks to the trading community for feedback and suggestions
Volume/Price Divergence v2The "Volume/Price Divergence v2" indicator is designed to analyze the relationship between volume and price movements in a financial market. It helps traders identify potential divergences that may indicate a change in market trends. Here’s a breakdown of how it works:
### Key Components
1. **Volume Calculation**:
- **Buying Volume**: This is calculated based on the relationship between the closing price and the high/low range. If the closing price is closer to the low, more volume is attributed to buying.
- **Selling Volume**: Conversely, if the closing price is closer to the high, more volume is considered selling.
The formulas used are:
```pinescript
buyVolume = high == low ? 0 : volume * (close - low) / (high - low)
sellVolume = high == low ? 0 : volume * (high - close) / (high - low)
```
2. **Plotting Volume**:
- The total volume is plotted in red and buying volume is plotted in teal. This helps visualize the volume distribution during different price movements.
3. **Rate of Change (ROC)**:
- The indicator calculates the rate of change for both volume and price over a specified period. This allows traders to see how volume and price are changing relative to each other.
```pinescript
roc = source / source
roc2 = source2 / source2
```
4. **Volume/Price Divergence (VPD)**:
- The VPD is derived from the ratio of the ROC of volume to the ROC of price. This ratio helps identify divergences:
- A VPD significantly above 10 may indicate strong divergence, suggesting that price movements are not supported by volume.
- A VPD around 1 indicates that volume and price are moving in harmony.
5. **Horizontal Lines**:
- The indicator includes horizontal lines at levels 10 (high divergence) and 1 (low divergence), serving as visual cues for traders to assess the market's state.
### Interpretation
- **Divergence**: If price makes a new high but volume does not follow (or vice versa), it may signal a potential reversal or weakness in the trend.
- **Volume Trends**: Analyzing the buying vs. selling volume can provide insights into market sentiment, helping traders make informed decisions.
- **Potential for a Strong Move**: A high VPD during a breakout indicates that while volume is increasing, the price isn’t moving significantly, suggesting that a big price move could be imminent.
- **Caution Before Entry**: Traders should be aware that the lack of price movement relative to high volume may signal an impending volatility spike, which could lead to a rapid price change in either direction.
Overall, this indicator is useful for traders looking to gauge the strength of price movements and identify potential reversals or breakouts based on volume trends.
BTC Dominance Trend CheckerThis monitors the Bitcoin dominance (BTC.D) in the market. It retrieves the current and previous day's BTC dominance values, determines whether dominance is increasing or decreasing, and visually displays the trend.
Multi TimeFrame VolumeThis script, "Multi TimeFrame Volume," is a TradingView Pine Script indicator that displays volume data across five user-selected timeframes in a table. Each volume is formatted in thousands (K) or millions (M) and color-coded based on the percentage change from the previous value (green for increase, red for decrease, gray if unchanged). The table's position and header colors can be customized. This helps traders quickly see volume trends at different intervals on a single chart
Heikin Line - TB365Heikin Line - An Enhanced Smoothed Heiken Ashi Overlay
Built on the foundation of TheBacktestGuy’s Smoothed Heiken Ashi indicator, Heikin Line takes trend analysis to the next level with versatile enhancements and adaptable settings.
This indicator offers selectable moving averages both before and after Heiken Ashi (HA) calculation, adding an additional layer of smoothness to traditional HA candles.
Key Features:
Trend Identification: Detects short and long-term trend directions with greater clarity.
Dynamic Support and Resistance: Not limited to a single line, Heikin Line creates a dynamic support/resistance zone, offering a visual “height” that adjusts with market shifts.
Trailing Stop: Effective as a trailing stop for enhanced risk management.
Trend Reversal Detection: Quickly identifies potential reversals when price crosses above or below the Heiken Ashi candle.
Improvements:
Trend Strength Visualization: Uses a cord-like appearance to reflect trend strength, making it easier to spot strong or weak trends.
Quick Reversal Detection: Enhanced responsiveness to detect rapid market reversals.
Easy Integration: Seamlessly combines with other indicators for a comprehensive trading setup.
With numerous moving average options, Heikin Line is adjustable to suit various market conditions and trading styles. Additionally, it leverages my TAExt library, so you can use it within your own strategies for added versatility.
Dynamic Volume-Based Buy/Sell IndicatorThis script provides a powerful volume-based indicator that visualizes buy and sell volumes, issues alerts for volume spikes, and adjusts color intensity dynamically based on volume size. It includes customizable settings for volume averaging and thresholds, making it adaptable to various trading strategies.
Dynamic Box IndicatorThe BOX Indicator is a sophisticated trading tool designed to operate on 15-minute charts, aimed at enhancing market analysis. This indicator identifies the highest and lowest values of the first bar of each day, providing traders with strategic buy and sell signals. As a new day begins, the indicator dynamically updates these values to reflect current market conditions.
When the closing price surpasses the established highest level, a buy signal (LONG) is generated, signaling a strong potential upward movement in price. Conversely, when the closing price falls below the lowest level, a sell signal (SHORT) is activated, indicating that the price may experience a downward correction. On the chart, these critical levels are highlighted in eye-catching colors, while buy and sell signals are represented by symbols.
Additionally, the indicator includes an alert system for buy and sell conditions, allowing traders to minimize the risk of missing significant trading opportunities. This alert system enables users to monitor market changes in real time and take swift action when necessary.
Overall, the BOX Indicator serves as an effective tool that helps traders gain a deeper understanding of market movements and refine their trading strategies. It empowers users to enhance their technical analysis skills while maximizing their potential to capitalize on market fluctuations.
Normalized ATRWhat is Normalized ATR?
Normalized ATR (Average True Range) is an indicator used to assess the volatility of a financial asset in a more understandable way. Normalized ATR normalizes the Average True Range (ATR) over a specific period relative to the current price level, providing a more comparable measure of volatility. It gives appropriate volatility across all timeframes.
What is ATR (Average True Range)?
ATR is a technical indicator used to measure the volatility of an asset's price. ATR is calculated by taking the highest value from the following three values:
Daily High - Daily Low: The difference between the highest and lowest prices within the day.
Daily High - Previous Day's Close: The difference between today's highest price and the previous day's closing price.
Daily Low - Previous Day's Close: The difference between today's lowest price and the previous day's closing price.
The largest value among these three is then averaged over a specified period (usually 14 days) to calculate the ATR.
Why Use Normalized ATR?
Normalized ATR provides a way to compare the ATR relative to the current price level. This is particularly useful when comparing assets with different price levels. For example, two assets may have the same ATR value, but due to differing price levels, the perception of volatility could vary. Normalization helps eliminate these discrepancies, enabling more consistent analysis. It gives appropriate volatility across all timeframes.
Normalized ATR Calculation
Normalized ATR is calculated by dividing the ATR value by the current price level:
Normalized ATR
=
(
ATR
Current Price
)
×
Normalization Factor
Normalized ATR=(
Current Price
ATR
)×Normalization Factor
Here, the "Normalization Factor" is typically a multiplier (e.g., 100) to convert the result into a more readable format.
Example Usage
Investors can use the Normalized ATR value to determine the volatility of an asset and formulate risk management strategies. A high Normalized ATR indicates that the asset has high volatility, while a low value suggests lower volatility.
This indicator helps investors better understand market conditions and make informed trading decisions.
Harmony Signal Flow By ArunThis Pine Script strategy, titled "Harmony Signal Flow By Arun," uses the Relative Strength Index (RSI) indicator to generate buy and sell signals based on custom thresholds. The script incorporates stop-loss and target management and restricts new trades until the previous position closes. Here's a detailed description:
Custom RSI Metric:
The strategy calculates a 5-period RSI based on the closing price, aiming for a more responsive measure of price momentum.
RSI thresholds are defined:
Lower threshold (30): Indicates oversold conditions, triggering a potential buy.
Upper threshold (70): Indicates overbought conditions, prompting a possible sell.
Entry Conditions:
Buy Signal: The strategy initiates a buy order when the RSI crosses above the lower threshold (30), indicating a shift from oversold conditions.
Sell Signal: A sell order is triggered when the RSI crosses below the upper threshold (70), suggesting an overbought reversal.
Only one order (buy or sell) can be active at a time, ensuring that a new trade begins only when there’s no existing position.
Stop-Loss and Target Management:
For each trade, stop-loss and target conditions are applied to manage risk and secure profits.
For Buy Positions:
Stop-loss is set 100 points below the entry price.
Target is set 150 points above the entry price.
For Sell Positions:
Stop-loss is set 100 points above the entry price.
Target is 150 points below the entry price.
The strategy closes the trade when either the stop-loss or target is met, marking the trade as "closed" and allowing a new trade entry.
Trade Sequencing:
A new trade (buy or sell) is only permitted after the previous position hits either its stop-loss or target, preventing overlapping trades and ensuring clear trade sequences.
This sequential approach enhances risk management by ensuring only one active position at any time.
End-of-Day Closure:
All open positions are closed automatically at 3:25 PM (Indian market time) to avoid overnight exposure, ensuring the strategy remains strictly intraday.
The flag for trade entry is reset at the end of each day, enabling fresh trades the next day.
Chart Indicators:
The script plots buy and sell signals directly on the chart with visible labels.
It also displays the custom RSI metric with horizontal lines for the lower and upper thresholds, providing visual cues for entry and exit points.
Summary
This strategy is a momentum-based intraday trading approach that uses the RSI for identifying potential reversals and manages trades through predefined stop-loss and target levels. By enforcing trade sequencing and closing positions at the end of the trading day, it prioritizes risk management and seeks to capitalize on short-term trends while avoiding overnight market risks.
