Ultra CMF + Stoch. and Choppiness IndexThis is a fairly complex, but powerful indicator that combines 3 different indicators.
1. Chaikin Money Flow (CMF)-
Oscillator that uses the sum of Money Flow Volume (MFV) values over n periods to determine and compare the amount of
buying/selling pressure. We modified the CMF's scale so that values fluctuate between {-100, 100} for easier visualization.
If (CMF > 0)
then (buying pressure > selling pressure)
If (CMF < 0)
then (buying pressure < selling pressure)
Thus, CMF can be a valuable tool for confirming both uptrends and downtrends, as well as identifying divergences as a negative CMF
value in the midst of an uptrend indicates lack of strength.
In addition, we set bounds for the CMF values to prevent whipsaws during periods of horizontal price movement.
The CMF is shown on the bottom of the chart as the teal and fuchsia histogram.
Teal bars means (CMF < 0) and fuchsia bars means (CMF > 0).
2. Choppiness Index -
The Choppiness Index is another oscillator that works synergistically with the Chaikin Money Flow to prevent entries during choppy
conditions (when there is no clear trend direction and movement is horizontal). Although it is blind to the actual direction of the
price movement, we use it to distinguish periods of consolidation from "trendy" markets. Values fluctuate between {0, 100}, with 50
acting as the center-point. We've also set thresholds for chop values that are utlized to optimize entry and exit timing.
The Choppiness Index is plotted as the green and pink circle line at the top of the chart. If movement is choppy(choppy > 50), then
circles are pink. If choppiness is low(chop < 50), then the circles are green.
3. Fast and Slow Stochastics -
Lastly, we use a fast and a slow stochastic momentum oscillator. This is a fairly common approach, as it allows us to detect signals
on a wider range of sensitivity.The slow stochastic confirms the high quantity of signals generated by the more hyper-sensitive
fast stochastic.
The fast and slow K and D values are not plotted on the graph by default, but users can change that in the inputs to choose which
ones to show on the graph(as shown in the bottom pane). The upper and lower bounds can also be chosen to increase/decrease
signal sensitivity.
All values such as lengths, bounds, etc. can be changed by users through the input options.
The Graph:
Chaikin Money Flow - Shown as the teal and pink zero-centered oscillator at the bottom of the chart. Bars are teal when CMF is less than
zero and fuchsia when CMF value is greater than 0. Users can choose whether the CMF is plotted by changing the 'plotCMF' input.
-The CMF histogram is shown in the second and third panes.
Choppiness Index - Plotted as the pink and teal line of circles at the top of the chart. Circles are pink if they are above 50 (high chop) and
teal when they are below 50 (low chop). Users can choose whether it is plotted through the 'plotChop' input.
-The Choppiness Index is shown in the second and third panes.
Stochastics - Not plotted by default, but users can choose to have them shown by adjusting the values in the input options menu. If you want,
there is an option to plot both fast and slow K and D values (4 total lines) and the upper and lower bounds that are used to determine entries
and exits.
NOTE: I tried to show all the ways that you can choose to display all the different indicators in the different panes, but there are a million
different ways you can choose to have the chart laid out through changing the inputs. You could have it be as simple as plotting just the 'B'
and 'S' for entries and exits or a complex graph with the CMF, Chop, and stochastics all plotted together.
HOW TO USE:
There is a set of conditionals for each of the three indicators to determine both entry and exit points. To simplify this, we decided to divide them
into red circles for exit conditions and green squares for entry conditions.
LONG ENTRIES:
1. If the conditions for the stochastics are met, a green square is plotted at the top of the chart.
2. If the conditions for the CMF are met, a green square is plotted at the center of the chart.
3. If the conditions for Choppiness Index are met, a blue circle is plotted at the bottom.
TRADE WHEN: There is a green square at the top, green square in the middle, and a blue circle at the bottom.
A GREEN 'B' IS PLOTTED IN THE CENTER OF THE GRAPH WHEN THE ABOVE REQUIREMENTS ARE TRUE...Enter position at that point.
LONG EXIT:
1. If the conditions for the stochastics are met, a red circle is plotted at the top of the chart.
2. If the conditions for CMF are met, a red circle is plotted at the center of the chart.
3. If the conditions for Choppiness Index are met, a blue circle is plotted the bottom.
TRADE WHEN: There is a red circle at the top, red circle in the middle, and blue circle at the bottom.
A RED 'S' IS PLOTTED AT THE CENTER OF THE GRAPH WHEN THE ABOVE REQUIREMENTS ARE TRUE....Exit Position at that point.
ALERTS:
An alert is sent when all buy conditions are met, informing the trader to enter a long position.
The same is done for sell conditions.
Like I said earlier, there are tons of input options to change this indicator to fit your specific use, as well as display options. I've tailored the settings
for trading BTC/USD, but it is a very versatile indicator and can be adapted for whatever you're trading.
CMF
ALPHA: VolumePLEASE READ THE ENTIRE POST BEFORE PURCHASING & USING THE ALPHA: Volume INDICATOR. Saves you and me some time in emails and messages. :)
Volume is the only true predictive method for an assets movement.
Most of my followers know I am volume-obsessed, volume precedes price and identifying major spikes in volume prior to an assets movement is one of the most valuable finds a trader can accomplish. I have spent more time studying volume then any other analysis technique. During this time I have become frustrated time and time again with the inefficiencies our typical volume indicators produce. We have the old bar volume indicator everyone sees on their charts, OBV, CMF, Accumulation/Distribution, MFI etc. etc., the list goes on. I have my favorites that I have written about in past publications, but none provide a real time volume view to my liking.
Frustration has led me to create something I truly believe is groundbreaking.... And it wasn't easy, by any means.
ALPHA: Volume
The ALPHA series is a suite of indicators designed to improve analysis and past analysis techniques. The ALPHA: Volume provides real time volume in addition to identifying major positions and true visibility into where and when positions are being taken. Being able to consistently identify these qualities creates an invaluable edge on the market.
The average buyer of assets are a drop in the bucket in terms of how they impact daily transactions (volume) compared to institutional buyers. The institutional buyers typically buy in large blocks. When institutional buyers get into the market, they cause significant increase in demand. Like any case of supply and demand, when demand increases and supply stays the same, price will increase. When an asset becomes desirable, it is more likely that supply may decrease (as current holders will be less willing to sell) which will cause even more price pressure.
Based on this volume precedes price analysis, it is probably obvious that there is a herd mentality when it comes to the market. When one institution is buying a large block of an asset, other institutions will spot the buying and be motivated to jump in as well. This increases the pressure on the assets price. You and I are small investors so it is important to join the herd and let the supply and demand caused by the institutions carry our investments higher.
Introduction
It's fairly simple to read, the default settings show an area with breaks view meaning positive and negative values, this is useful for seeing trends, pressure, and measuring divergences. Additionally, there is coloring to keep an eye on. To keep it simple:
Blue: Buying
Red: Selling
Teal: Heavy buying/major positions being taken.
Orange: Heavy selling/major positions being taken.
Let's get into what ALPHA: Volume does, it has numerous capabilities that I am still discovering, identifying false rallies/sell offs, telegraphing major moves, identifying underwater positions, spotting divergences, bottoms, tops and on and on. One thing to note that it doesn't do is show cumulative volume such as the OBV, this can be useful for identifying rising wedges and similar patterns, I will no longer be using other volume indicators unless I am identifying a pattern that is reliant on cumulative volume.
In this example below, we see heavy selling causing a dip that was then bought up with major positions causing a rally because demand exceeded supply.
The next example shows large positions being taken drying up supply ultimately causing a rally, very well telegraphed.
Same scenario but heavy selling weakening demand.
Originally, I planned on going on and on with examples, but I am going to keep this simple & short as I don't want to prolong the publishing. This will sell itself as more people discover the quality and accuracy. Still not sold? No worries, I'll be doing all of my volume analysis off of this indicator, so stay tuned for more in depth analysis with it on TradingView and twitter, I am truly excited for this indicator to be used by traders and analysts. Those of you that purchase and use it, (already orders off of my site and I haven't even published this) feel free to tag me in a tweet with a chart if you have questions, there will be times when volume is not making sense and perhaps I can offer insight into what is happening.
Conclusion
Before I get messages, "But Nick, the volume indicator was wrong here!".... No it wasn't, its not a signal generator, it is measuring real time volume. I cannot fix peoples' faulty positions that the indicator is showing. Volume should never be used independent of price action & other forms of analysis to determine buying or selling patterns. Volume is extremely important as a confirmation for technical indicators and I strongly suggest you use it as such. I will be doing several videos on this over the next couple weeks on my youtube channel showing ways to confirm other indicators with volume. Ichimoku goes great with it btw :).
Please note this works on all assets on all time frames, during my volume studies with this indicator I noticed lots of noise depending on the time frame, so I have implemented a feature that automatically adjusts to the correct settings based on what time frame you are on. I added a masking feature to keep my work proprietary that shows 30 and 500 (not true) as the settings in case my formula is ever figured out (doubtful but the capitalist in me that believes it is ok to protect what you work for) If you uncheck "Use Preset Periods" in settings then it will allow you to adjust the periods and peak limit, I don't recommend playing around with the settings as you can disturb the balance I've found. However, the option is there for the analysts that are into experimenting. If you feel the need to adjust some things then peak limit is the only thing I recommend adjusting, it allows you to view higher parameter limits on the volume spike to measure divergences of very large orders, the peak limit doesn't matter so much as long as it indicates the teal or orange, some spikes go as high as 80K in testing. In the end the size is typically irrelevant, but it is there in case you want to measure it or have curiosity.
I want to provide research and discoveries from its users and myself on a regular basis. I will be holding discussions & providing research in my discord server that I run with a team of very talented analysts. The link for that is here: discord.gg
This indicator is available for TradingView users on my web site www.thetradingwizard.com for $99, that includes a life time subscription. There is also a monthly subscription option for all three indicators from the ALPHA series. (Please see my published scripts for information on the other two) Both purchase options include updates and support as a user.
This will be the end of the ALPHA indicator series for a while, after finally conquering volume I am moving on with the formulas from the ALPHA series to bigger things. Enjoy!
Disclaimer
Nothing in this post is to be used or construed as financial advice. The indicator is not a signal-generating indicator and should not be used to trade off of solely. This post is meant as an educational post to explain the functions of the indicator.
Average Indicators Positionsby this script you can see the average level of macd, macd-asprey, rsi, stochastic, cci, momentum, obv, DI, volume weighted macd, cmf indicators within a period. It also calculates and creates the same graph for higher time frame, so you can see average levels for current and higher time frame. you can also check it for divergence/convergence. You can use it as you wish and add/remove indicators.
Chaikin Money FlowThis script plots the original Chaikin Money Flow in addition of highlighting positive/negative pressure areas.
CMF+CMF+ is a CMF study enhanced with a linear regression moving average.
Default Settings:
CMF: 13
Linear Regression of CMF: 34
Activate Vertical Bar Highlights and/or Signal Flags for:
- CMF Oversold/Overbought. (Default: Highlight Bar)
- CMF Extended Oversold/Overbought. (Default: Highlight Bar)
- CMF crossing its Linear Regression . (Default: Signal Flag)
Users can also do extra tuning in Style Section of Format options.
To use this indicator we need to observe the market's behaviour and identify which settings are fit for the timeframe and type market you trading.
Recommended suggested settings
CMF: 13/14
Linear Regression of CMF: 34/21
The market behaves differently when the pacing changes, volatility change and, when it trends or when it ranges. Develop an understanding of it with the help of this study.
Avoid risking more than 1% per trade. Be responsible for always making a priority about protecting capital and managing risk.
Chaikin MF% (CMFP) w. Alerts, Bells & Whistles [LucF]This is Chaikin’s Money Flow indicator on a 0-100 scale with buy/sell signals, alerts and other bells & whistles.
It includes:
- a fast EMA (16 periods by default),
- a slow MA (64 periods by default),
- histograms,
- 3 different sorts of crosses,
- big swings identification,
- buy/sell signals on CMFP crossing back from outside user-defined levels,
- buy/sell signals on the slow MA pivots above/below user-defined levels,
- alerts on big swings and buy/sells.
This indicator started with @LazyBear code (VAPI) at:
@cI8DH then changed the scale to 0-100, which I find very useful:
I then added the rest.
The chart above shows both clean and busy versions of the indicator.
Note that the default length is 10 rather than the commonly used 20. I use CMFP in conjunction with VFI and like the fact that it is faster than VFI. The default inputs show the way I normally use this indicator, with the slow MA shown in histogram mode. I find it gives good context to the signal line. Crosses between the two are often useful.
The buy/sell signals aren’t the main attraction of this indicator, and nothing to write home about. Like the big swing markers, I think it’s more realistic to view them as pointers to potentially interesting areas on charts. Their nature makes them more suited to identifying reversals. They certainly aren’t reliable enough to turn this study into a strategy and I normally don’t use them. The levels pre-defined for the buy/sell signals on CMFP are most useful on short intervals. The buy/sell signals on the slow MA pivots work on a more complete range of intervals. Optimization for your specific instruments and intervals will improve their reliability.
As usual when defining alerts, be sure you already have defined proper inputs and that you are on the intended interval, as they will be used when triggering alerts.
ML - VOLUME Super DivergenceThis script has been published for customer acceptance and verification. Sorry this mean access will only be provided to the customer.
For open source scripts, please take a look at the Backtest-Rookies profile. Users who are interested in custom development services can visit the Backtest-Rookies (.com) website.
VOLUME Super Divergence
A variant of .
All Osclillators have been swapped with Volume based Oscillators.
Candlestick normalizer + MA's Crossing SignalingWell, after 25 tries I finally did it ._.
Here is the candlestick normalizer I was trying to achieve. In this way you can do a fast and not biased by price candlestick analysis, for example to catch engulfish and doji's on the go ;)
I also added a MAs crossing-over signal I optimized.
Btw, I will try to add volume signaling on this indicator. I had been thinking in 2 options:
1) Maybe as a colour/unfilled bar when volume exceed average
2) Represent the volume on the width of the candlestick.
What do you prefer? Let me know.
I hope you enjoy it!
Phi it.
Accumulation/Distribution Volume (ADV) [cI8DH]This is the simplified and optimized version of my original ADV indicator. It shows both regular volume bars and the accumulated/distributed (A/D) portion of them. The equation is elegant and intuitive. It calculates candle body to candle height ratio and multiplies it by volume: volume*(close-open)/(high-low). This is the building block of my three other indicators, ADL, ADP and ADMF.
- The volume bars has two shades of green and red. The dark shade shows amount of A/D and the light shade shows total volume (what you see on a regular volume indicator).
When money volume is enabled, volume is multiplied by price. As you can see in the chart below, trade volume in terms of USD was growing over the past years.
- Blue line is the moving average of A/D and the orange line is for total volume. When "Baseline Chart" option is enabled, this moving average is identical to ADMF indicator which can be a powerful indicator for assessing buy/sell pressure as well as money flow and volume divergences. You can turn off volume bars (from style menu) for better visibility or you can use the below indicators.
Please note that ADMF is now available as a part of ADP indicator as well and I recommend using the latter since ADP can also replace CMF and MFI indicators.
- If you change the aggregation to cumulative (while having money volume disabled), the gray line becomes identical to On Balance Volume (OBV) and the blue line identical to my ADL indicator. The latter I would argue is more accurate than Chaikin's ADL, William's A/D and OBV.
Accumulation/Distribution VolumeThis is a simple yet powerful indicator that can replace volume, Money Flow, Chaikin Money Flow, Price Volume Trend (PVT), Accumulation/Distribution Line (ADL), On Balance Volume (OBV).
When "Baseline Chart" option is disabled, it looks similar to regular volume. The volume bars has two shades of green and red. The dark shade shows amount of accumulation and the light shade shows total volume (what you see on a regular volume indicator). Blue line is the moving average (or cumulative total) of A/D and the gray line is for total volume.
When money volume is enabled, volume it multiplied by price. As you can see in the chart below, trade volume in terms of USD was declining after ATH. This is not the case in regular volume chart which shows instrument volume (chart above).
In Baseline view, the aggregation method you choose can turn it into different indicators. With EMA/SMA aggregation, blue and gray line shows buy/sell pressure. At 0, there is not buy or sell pressure.
If you turn off volume bars (from style menu), it gives you a reliable indicator to measure divergence. This should be more reliable than most other range-bound indicators (i.e. RSI, MFI, CMF). I will publish a TA about correctly measuring divergence (it's a must read even if you are a pro trader). Make sure that the length is set to a large number on smaller TFs such as 4h.
For following results, set aggregation to cumulative and turn off money volume:
When wick weight=0, the GRAY line is identical to OBV indicator.
When normalized by spread and wick weight=10, the BLUE line is identical to ADL (improved by true range).
When normalized by previous bar price, wick weight=0, the BLUE line is identical to PVT.
How I use this indicator:
- Baseline chart, replaced my regular volume indicator
- Mostly 4h TF for divergence
- EMA aggregation (and occasional cumulative aggregation) with length above 50. I change the length to 100 and 200 for confirmation.
- Wick weight=0 or max 2.
With this indicator, you can learn how different indicators are built and how they are different from each other. I will publish a TA to explain more about different indicators and their pros and cons.
I will publish this indicator without volume bars and additional options to make it range bound.
Iceberg's Pivot Points Index (Alpha Version)For a friend,
This is still a vvork in progress as this script is an ALPHA version, so I could recomend you not rely on this to build strong signals, if you experiment it, it is at your ovvn risks. It is very unfinished and doesn't give all the signals I'm looking for so far. I'm still trying to catch a proper coding stuff that vvould rock the vvoods.
So basically vvhen all three oscillators peak, short it, and vvhen all three dip, long it. Of course, base your entries on the price actions and don't jump IN blindly as cryptokiddies anyvvhere. This chart is XBT but this indicator may be useful for forex; stocks and commodities asvvell.
I have lots of vvork and experiment to do on that one but this is better used on a 1hr tf and a 12 (or 6) length RSI, so far. Again, don't rely on this, I suggest you to test it in demo if you're interested, I'm using vvhaleclub for fevv months novv, they got a beautiful interface vvith so much ease of use. Here is a referral link if you need it: whaleclub.co
I'm on it, tell me vvhat's your feelings!
Squeeze CMF IndicatorI changed the indicator code of Lazybear to replace the linreg with the Chaikin money flow. I recommend using a Macd because the chaikin money flow can give false signals, like any other indicator.
