Dekkapok Premium Prices and EMA360Overview:
The EMA360 Premium Levels indicator is designed to help traders identify key price levels above the EMA360 (Exponential Moving Average) on a daily timeframe. These levels, referred to as "premium levels" are calculated as multiples of the EMA360 and can act as potential resistance or support zones for price action analysis.
Features:
EMA360 Calculation:
The script calculates the EMA360 using the daily timeframe (or any user-specified timeframe).
EMA360 is plotted as a bold blue line for clear visibility.
Premium Levels:
Multiple levels above the EMA360 are plotted as horizontal green lines.
These levels are calculated by multiplying the EMA360 value by user-defined multipliers (e.g., 1.2x, 1.3x, etc.).
Premium levels can help identify overbought or extended price zones relative to EMA360.
Customizable Inputs:
EMA Length: Default is set to 360, but users can adjust the EMA length as needed.
Timeframe: EMA360 is calculated using the daily timeframe by default, but any timeframe can be selected.
Multipliers: Traders can input their desired multipliers (e.g., 1.2, 1.3, 1.5) as a comma-separated list.
Clean Visualization:
EMA360 and premium levels are plotted directly on the price chart for intuitive analysis.
Premium level lines are semi-transparent green to minimize clutter while maintaining focus on critical levels.
Use Cases:
Trend Analysis: Use the EMA360 to identify the broader market trend. Prices above the EMA360 generally indicate an uptrend, while prices below may indicate a downtrend.
Overextension Zones: Premium levels help traders identify zones where the price may be overbought or overextended relative to EMA360.
Dynamic Support/Resistance: The premium levels can act as dynamic resistance zones during uptrends and support zones during pullbacks.
How to Use:
Apply the indicator to your chart in TradingView.
Observe the EMA360 line to understand the market trend.
Use the green premium level lines to identify potential resistance zones as the price moves above the EMA360.
Customization Options:
Adjust the EMA Length and Timeframe to match your trading style.
Modify the Premium Multipliers to suit your market analysis needs (e.g., add or reduce levels like 1.1x, 1.8x, etc.).
This indicator is especially useful for trend-following traders who want to leverage EMA-based levels for strategic decision-making.
- Dekkapok
指數移動平均線(EMA)
Dekkapok Premium Prices and EMA360 [Clean Ver.]Overview:
The EMA360 Premium Levels indicator is designed to help traders identify key price levels above the EMA360 (Exponential Moving Average) on a daily timeframe. These levels, referred to as "premium levels" are calculated as multiples of the EMA360 and can act as potential resistance or support zones for price action analysis.
Features:
EMA360 Calculation:
The script calculates the EMA360 using the daily timeframe (or any user-specified timeframe).
EMA360 is plotted as a bold blue line for clear visibility.
Premium Levels:
Multiple levels above the EMA360 are plotted as horizontal green lines.
These levels are calculated by multiplying the EMA360 value by user-defined multipliers (e.g., 1.2x, 1.3x, etc.).
Premium levels can help identify overbought or extended price zones relative to EMA360.
Customizable Inputs:
EMA Length: Default is set to 360, but users can adjust the EMA length as needed.
Timeframe: EMA360 is calculated using the daily timeframe by default, but any timeframe can be selected.
Multipliers: Traders can input their desired multipliers (e.g., 1.2, 1.3, 1.5) as a comma-separated list.
Clean Visualization:
EMA360 and premium levels are plotted directly on the price chart for intuitive analysis.
Premium level lines are semi-transparent green to minimize clutter while maintaining focus on critical levels.
Use Cases:
Trend Analysis: Use the EMA360 to identify the broader market trend. Prices above the EMA360 generally indicate an uptrend, while prices below may indicate a downtrend.
Overextension Zones: Premium levels help traders identify zones where the price may be overbought or overextended relative to EMA360.
Dynamic Support/Resistance: The premium levels can act as dynamic resistance zones during uptrends and support zones during pullbacks.
How to Use:
Apply the indicator to your chart in TradingView.
Observe the EMA360 line to understand the market trend.
Use the green premium level lines to identify potential resistance zones as the price moves above the EMA360.
Customization Options:
Adjust the EMA Length and Timeframe to match your trading style.
Modify the Premium Multipliers to suit your market analysis needs (e.g., add or reduce levels like 1.1x, 1.8x, etc.).
This indicator is especially useful for trend-following traders who want to leverage EMA-based levels for strategic decision-making.
- Dekkapok
4EMAs+OpenHrs+FOMC+CPIThis script displays 4 custom EMAs of your choice based on the Pine script standard ema function.
Additionally the following events are shown
1. Opening hours for New York Stock exchange
2. Opening Time for London Stock exchange
3. US CPI Release Dates
4. FOMC press conference dates
5. FOMC meeting minutes release dates
I have currently added FOMC and CPI Dates for 2025 but will keep updating in January of every year (at least as long as I stay in the game :D)
Risk-Adjusted Trend IndicatorThe Risk-Adjusted Trend Indicator is a comprehensive tool designed to evaluate market trends while factoring in risk levels. By combining trend strength, volatility, and dynamic scaling, this indicator provides traders with clear, actionable signals for optimal entries and exits. Its focus on risk-adjusted metrics ensures that signals are both reliable and contextually informed by prevailing market conditions.
Key Features:
1. Exponential Moving Average (EMA):
• The EMA serves as the foundation for trend detection, offering a smoothed representation of price movement over a user-defined period.
• Aids in distinguishing bullish and bearish trends effectively.
2. Average True Range (ATR):
• ATR is used to gauge market volatility, ensuring that the indicator adapts to changing market conditions.
• Facilitates the normalization of trend strength relative to current market volatility.
3. Risk-Adjusted Trend Score:
• Computes the difference between the price and EMA and normalizes it using the ATR to account for risk.
• This metric allows traders to focus on trends with favorable risk-reward ratios, filtering out weak or high-risk setups.
4. Dynamic Scaling:
• Adjusts the risk-adjusted score to fit within the chart’s price range, making the visualization intuitive and easy to interpret.
5. Buy/Sell Signals:
• Buy signals are triggered when the risk-adjusted score crosses above a positive threshold.
• Sell signals are triggered when the score crosses below a negative threshold.
• Signals are plotted directly on the chart with intuitive markers for quick decision-making.
6. Background Color Zones:
• Highlights bullish and bearish trend zones using subtle background shading, enhancing visual clarity.
Reason for Combining These Elements
The Risk-Adjusted Trend Indicator blends elements of trend analysis, volatility measurement, and risk assessment to address a fundamental challenge in trading: identifying high-confidence trades that align with a trader’s risk tolerance. Here’s why these components were chosen and how they work together:
1. EMA (Trend Detection):
• Provides a reliable baseline for trend direction, ensuring that the indicator aligns with the market’s prevailing trend.
2. ATR (Volatility Normalization):
• Adjusts trend strength calculations based on market volatility, allowing the indicator to adapt to varying market conditions and avoid false signals in high-volatility environments.
3. Risk-Adjusted Score:
• By factoring in both trend strength and volatility, this score ensures that only trends with favorable risk-reward dynamics are highlighted.
• This approach minimizes overtrading and reduces exposure to high-risk setups.
4. Dynamic Scaling:
• Ensures that the indicator’s outputs remain visually accessible, regardless of the asset or timeframe being analyzed.
• Enhances usability by aligning the score with price action on the chart.
5. Visual Aids (Signals and Background Zones):
• The inclusion of visual signals and background zones simplifies decision-making, making the tool suitable for both novice and experienced traders.
BS | Buy&Sell Signals With EMAKey Features:
EMA Intersections: Generates clear buy and sell signals based on predefined EMA crossings.
5 EMA Lines: Visualize market trends with five distinct EMA lines plotted on the chart.
Support and Resistance Levels: Easily identify crucial support and resistance levels with our integrated marker.
Comprehensive Indicator Panel: At the bottom of the chart, track Stochastic, RSI, Supertrend, and SMA across multiple timeframes (1m, 5m, 15m, 1H, 4H, Daily, Weekly).
Fully Customizable: Almost every indicator within the tool is adjustable to suit your preferences and trading style.
Alarm Feature: Set up alarms to stay informed of important market movements.
Unlock the full potential of your trading strategy with BS | Buy&Sell Signals With EMA. Customize, analyze, and trade with confidence.
created by @bahadirsezer
Trading TimesThis script is based on the 9 and 20 EMA Strategy and combines Fibonacci Levels for added confluence.
When the price retests after breaking the EMAs, we take the trade in the same direction. That is on breakup, we take a long and on a breakdown we take a short.
VWAP can be enabled from settings for more data. institutions use it to average out their trades for both buy and sell orders.
Colored Stacked EMA RibbonThis script is my interpretation of an idea from John Carter in his interview with Richard Moglen.
The idea of moving average ribbons or simply multiple moving averages has been around since moving averages were created. But many of these ideas, such as the Guppy Multiple Moving Averages focus on price closes above a moving average (or multiple moving averages).
In this version, the idea is that the EMAs are compared to each other from shortest to longest. In a completely bullish alignment, the EMAs are referred to as "stacked" in which, for example, the 8 EMA > 13 EMA, the 13 EMA > 21 EMA and so on. When the EMAs are "stacked" in a fully bullish alignment, the EMA cloud is filled green. When the EMAs are "stacked" in a fully bearish alignment, the EMA cloud is filled red.
In addition, I've colored the EMA lines themselves according to if they are rising (green) or falling (red) over a user inputted lookback. The default is "1" period, but it is adjustable. (Generally, I use "1" for the lookback.)
When the EMA lines flip from mixed (rising/falling) to all rising, a green triangle is drawn under the bar/candle. Similarly, when the EMA lines flip from mixed (falling/rising) to all falling, a red triangle is drawn over the bar/candle. This gives the user another potential entry in the context of a stacked EMA cloud. It also can give early signals for entry in a neutral cloud.
Candles/bars are colored according to the EMA cloud & EMA line status. So, for example, a bullish stacked EMA cloud (green) and all EMA lines green, will result in a bright green candle color. IF the cloud is green, but the EMA lines are mixed (red/green), this will result in a dark green candle. Similar logic applies to the bearish conditions which result in red (most bearish) or orange (still bearish) candle colors. IF the EMA cloud is neither bullishly stacked or bearishly stacked, then those candles will appear as gray (neutral).
There are many ways to use this script, but it excels in a trending market. John Carter often sets limit buys in an area near the 21D EMA in names that are trending & he wants to get in. The 13D EMA linewidth is set at 2 and the 21D EMA linewidth is set a 3 to easily identify this area. Now, you can "buy the dip" or "short the rip" within the context of a trending market (which the script identifies with green or red EMA clouds). Or you can wait for some confirmation via the green triangle (or something else like a candle stick pattern or trendline break). Remember to set stops in case price goes against you.
1 final note this is not a "magic bullet", but for a single indicator it does alot of work & personally I've found it to be very useful on multiple time frames. I do recommend combining it with volume (or a volume-based indicator).
Update #1: This updated version allows the user to adjust candle colors, forces the script to wait for bar closes on intraday charts (if conditions are met) before plotting triangles, and removes a link to YT. In addition, non-intraday charts (daily, weekly, etc) will flash a triangle intraday (if conditions are met) before updating completely at the close.
HKM - Renko Emulator with EMA TrendThis is a Renko based Emulator to plot on any chart type which prints the box as printed on a Renko charts and is a Non-Repaint version. You can use either Traditional or ATR Method on current chart Timeframe. Option to plot an EMA Line is provided with Trend indication.
Macro ParadoxMacro Paradox: A Detailed Explanation
This indicator utilizes multiple streams of global liquidity data (from the US, China, Japan, the UK, and the Eurozone) and combines them with the DXY and HYG for a “macro plumbing” insight. Surprisingly, this creates a paradoxical predictive relationship: when the green line (Weighted DXY) begins rising, dollar-denominated equities (e.g., SPY) often show bullish momentum about 4–7 days later, and vice versa. Below is an in-depth explanation of why and how this occurs.
Global Liquidity Calculation
The script aggregates the balance sheets or liquidity proxies of major central banks and bond markets, including:
Bank of Japan (multiplied by JPYUSD)
People’s Bank of China (multiplied by CNYUSD)
Bank of England (multiplied by GBPUSD)
US Federal Reserve (WALCL)
European Central Bank (multiplied by EURUSD)
Subtracts reverse repo (RRP) and US Treasury general account (TGA) balances (treas_genac)
This net figure represents the total “flow” of major currency liquidity. Higher net liquidity often indicates rising risk-on appetite; lower liquidity can imply risk-off conditions.
HYG Inclusion for Risk Appetite
HYG (the high-yield corporate bond ETF) is a strong barometer of market risk tolerance. When HYG is robust, it indicates investors are willing to buy higher-yield, lower-rated corporate bonds—implying confidence in economic expansion. The script scales HYG like total liquidity, then applies a user-defined weighting ( hygWeight ) so its movement influences the final combined line.
Scaling and Double-EMA Smoothing
For both liquidity ( total ) and each risk metric (DXY, HYG), the script:
Normalizes them over a lookback window ( lookbackBars ) to a 0–100 scale, aligning different absolute values onto a comparable range.
Applies two EMAs in sequence ( smoothLengthFast , smoothLengthSlow )—similar to a MACD-style smoothing—to remove noise and reveal underlying trend momentum more clearly.
By smoothing twice, you get a cleaner signal, making it easier to spot turning points without the usual whipsaws seen with single-smoothing.
Weighted by the Chart’s Price Action
To reflect how these macro flows interact with the specific ticker, the script compares close price to its EMA ( myTickerEma ). The ratio ( close / myTickerEma ) is raised to weightPower , amplifying how overextended or under-extended the ticker is relative to its own trend. The final scaled lines are multiplied by this “ weightFactor ,” adapting them to each ticker’s current price trend.
“Paradoxical” DXY Relationship Explained
Conventionally, a strengthening US dollar can pressure risk assets. However, this script shows a rising Weighted DXY line (green) is often followed by bullishness in dollar-based equities (e.g., SPY) several days later. Why?
When global liquidity is high, capital can flow into US assets, supporting both the dollar and equities.
HYG being strong signals credit-fueled demand; combined with global liquidity, this can push bond and equity prices higher simultaneously.
As the DXY “catches a bid,” it hints at global investors allocating to US assets. This often takes 4–7 days to reflect in the broader equity market, giving the illusion of a “paradox.”
Practical Usage and Timeframes
Because major liquidity data (from central banks, RRP, TGA, etc.) is updated once a day or weekly, smaller intraday charts (like 1-hour) will not accurately capture these macro flows. For this reason, the indicator is most reliable on Daily charts. At higher frequency, signals can be misleading because the macro data does not refresh that often.
Why It’s Unique
Combines total global net liquidity and credit risk sentiment (HYG) into one line, then cross-compares it to DXY for insight into capital flows.
Applies a two-stage EMA smoothing for each series, reducing noise and clarifying the macro trend signal.
Weights the signal by the chart’s own price trend, adapting to each ticker’s technical conditions.
Reveals an unusual yet historically consistent “delayed bullishness” effect when the Weighted DXY (green) starts climbing.
A rising Weighted DXY line (green) often foretells— 4 to 7 days later —an upswing in US equities, contrary to the typical notion that a stronger dollar always harms risk assets. By blending net global liquidity, HYG’s risk appetite measure, and a weighting factor keyed to the chart’s trend, this indicator provides a novel, smoother view of macro flows.
Note: For best results, use Daily or higher timeframes to align with the release schedule of the underlying liquidity data. This avoids short-term noise that doesn’t reflect actual macro changes.
MA Crossover + RSI Strategy [deepakks444]MA Crossover + RSI Strategy Indicator
This indicator is designed to provide buy (long) and sell (short) signals based on a combination of moving average (MA) crossovers, the Relative Strength Index (RSI), and a custom moving average filter. It allows traders to identify potential entry and exit points based on price trends and momentum.
Key Components
Moving Averages (MAs):
Short EMA (Exponential Moving Average): Default length of 9.
Long EMA: Default length of 21.
These MAs are used to detect trend crossovers. A bullish trend is indicated when the short EMA crosses above the long EMA, and a bearish trend is indicated when the short EMA crosses below the long EMA.
Custom Moving Average (Custom MA):
Configurable to be one of the following: SMA (Simple Moving Average), EMA, WMA (Weighted Moving Average), or VWMA (Volume Weighted Moving Average).
Default length is 200, commonly used as a long-term trend indicator.
Color-coded dynamically:
Green: Price is above the Custom MA.
Red: Price is below the Custom MA.
Relative Strength Index (RSI):
Default length of 14.
Customizable Overbought Level (default: 60) and Oversold Level (default: 40).
Provides a momentum filter to ensure trades are taken when the market exhibits strong trends in a favorable direction.
Signal Logic
Buy Signal (Long Entry - XL):
The Short EMA crosses above the Long EMA (bullish crossover).
RSI value is above the oversold level (indicating momentum is not excessively weak).
The price is above the Custom MA, confirming alignment with the prevailing trend.
Sell Signal (Short Entry - XS):
The Short EMA crosses below the Long EMA (bearish crossover).
RSI value is below the overbought level (indicating momentum is not excessively strong).
The price is below the Custom MA, confirming alignment with the prevailing trend.
Pending Signals
Pending signals account for situations where the crossover and RSI conditions are met, but the price has not yet crossed the Custom MA. These are tracked to activate only when the price moves in alignment with the Custom MA:
Pending Buy:
Triggered when:
Short EMA crosses above Long EMA.
RSI > Oversold Level.
Price is below the Custom MA.
Activates when the price crosses above the Custom MA.
Pending Sell:
Triggered when:
Short EMA crosses below Long EMA.
RSI < Overbought Level.
Price is above the Custom MA.
Activates when the price crosses below the Custom MA.
Visual Elements
EMA Lines:
Blue Line: Short EMA.
Red Line: Long EMA.
Custom MA:
Green: Indicates price is above the Custom MA.
Red: Indicates price is below the Custom MA.
Signal Arrows:
Green UP Arrow (XL): Buy signal.
Red DOWN Arrow (XS): Sell signal.
Alerts
Configurable alerts notify the user when:
Buy Signal: "Price crossed above the short EMA and RSI is oversold."
Sell Signal: "Price crossed below the short EMA and RSI is overbought."
Strategy Overview
This strategy combines trend-following (EMA crossovers) and momentum confirmation (RSI) with a Custom MA filter to ensure trades align with broader market trends. The Custom MA acts as a safety check, preventing trades against the prevailing trend.
Disclaimer
This script is for educational purposes only. Trading involves significant financial risk, and past performance is not indicative of future results. Use this script at your own discretion, and always backtest before deploying it in live markets. The author is not responsible for any financial losses incurred while using this script.
Suitability
This indicator is suitable for traders who prefer to combine trend-based strategies with momentum confirmation to filter out false signals and increase trade reliability.
Stochastics Oscillator with Buy/Sell Indicator [iSTAGs]iSTAGs "Stochastics Oscillator" with Buy/Sell Indicator
Overview
The Stochastics Oscillator is a versatile trading indicator designed to provide comprehensive insights into market momentum and potential price reversals. With its multi-layered approach, it incorporates a blend of oscillators, smoothed averages, and relative strength measures to deliver actionable trading signals.
Disclaimer
This indicator is provided for study purposes only . While it may assist in identifying potential buy and sell opportunities, please note:
1. False Signals: The buy/sell indicators may generate false signals. Always validate signals using additional analysis or tools.
2. Trading Strategies: Use appropriate exit points and stop-loss levels as part of your overall trading strategy.
3. No Guarantees: Do not rely solely on this indicator for trading decisions. Market conditions may change, and no indicator guarantees accurate results.
4. Strategy Testing: The strategy associated with this indicator is not tested, and backtesting features are not available at this time.
Key Features
1. Stochastics Oscillator
• Combines the smoothed ranges of price movement to identify overbought and oversold conditions.
• Inbuilt signal lines helps pinpoint potential crossovers for trend reversals.
2. Zones Highlighting
• Clearly visualized zones for:
o Overbought (70–100): Caution for potential reversals.
o Bullish (0–40): Positive momentum.
o Bearish (0 to -40): Negative momentum.
o Oversold (-70 to -100): Potential buying opportunities.
3. Buy and Sell Signals
• Primary Buy/Sell Indicator: Highlighted directly on the chart for ease of use.
• Potential Buy/Sell Signals: Secondary indicators based on advanced crossover conditions that can generate early signals.
4. RSI Integration
• Realtime RSI value display for an additional layer of confirmation.
• Color-coded RSI values to easily interpret market strength:
o Red: Overbought (>80)
o Orange: Strong momentum (70–80)
o White: Neutral (30–70)
o Blue: Weak momentum (20–30)
o Green: Oversold (<20)
5. Limited Customizable Visuals
o Clean and color-coded plots and fills make it intuitive to identify trends and trading opportunities at a glance.
How to Use
1. Trading Signals:
• Use buy/sell shapes and flags for identifying potential entry and exit points.
• Combine primary buy/sell indicator and secondary buy/sell signals for higher confidence.
2. Trend Confirmation:
• Monitor the oscillator and signal crossovers alongside zone fills to gauge market direction.
3. RSI Analysis:
• Keep an eye on the RSI value and its color coding for confirmation of overbought or oversold conditions.
Settings
• Enable/Disable Features: Customize the visibility of Buy/Sell indicators, Potential Signals, and RSI display.
• Editable Zones: Adjust zone colors and ranges to suit your trading strategy.
Conclusion
The Stochastics Oscillator is a powerful tool for traders seeking to enhance their technical analysis. Its layered approach provides clarity, precision, and adaptability for a wide range of trading strategies, whether you're a scalper, swing trader, or long-term investor.
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Developed by iSTAGs
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Happy Trading! 🎯
GocchiMulti-Indicator: RSI & Moving Averages
This versatile TradingView indicator combines two essential tools for technical analysis—Relative Strength Index (RSI) and Moving Averages (MAs)—into one comprehensive solution. It is designed for traders seeking flexibility, customization, and efficiency in their charting experience.
Features:
Relative Strength Index (RSI):
Customizable RSI length.
Adjustable overbought and oversold levels.
Selectable source input (e.g., close, open, high, low).
Visual levels for overbought and oversold zones, aiding in quick trend and momentum identification.
Three Moving Averages:
Three independently customizable moving averages.
Options for Simple Moving Average (SMA) or Exponential Moving Average (EMA) for each line.
Adjustable lengths for short-, medium-, and long-term trend tracking.
Visual Enhancements:
Clear, color-coded plots for RSI and each moving average.
Overbought and oversold zones are highlighted with horizontal dotted lines.
Alerts:
Get notified when RSI crosses above the overbought level or below the oversold level.
Alerts help traders stay on top of potential market reversals or breakout opportunities.
Use Cases:
RSI Analysis: Spot overbought or oversold conditions to identify potential reversals.
Trend Following: Use moving averages to confirm trends or identify crossovers for potential entry and exit points.
Custom Strategies: Tailor the settings to fit specific trading styles, such as scalping, swing trading, or long-term investing.
This all-in-one indicator streamlines your analysis by reducing the need for multiple overlays, making your charts cleaner and more actionable. Whether you're a novice or an experienced trader, this tool provides the flexibility and insights you need to succeed in any market condition.
Price Action Health CheckThis is a price action indicator that measures market health by comparing EMAs, adapting automatically to different timeframes (Weekly/Daily more reliable) and providing context-aware health status.
Key features:
Automatically adjusts EMA periods based on timeframe
Measures price action health through EMA separation and historical context
Provides visual health status with clear improvement/deterioration signals
Projects a 13-period trend line for directional context
Trading applications:
Identify shifts in market health before major trend changes
Validate trend strength by comparing current readings to historical averages
Time entries/exits based on health status transitions
Filter trades using timeframe-specific health readings
I like to use it to keep SPX in check before deciding the market is going down.
Note: For optimal analysis, use primarily on Weekly and Daily timeframes where price action patterns are more significant.
UM VIX status table and Roll Yield with EMA
Description :
This oscillator indicator gives you a quick snapshot of VIX, VIX futures prices, and the related VIX roll yield at a glance. When the roll yield is greater than 0, The front-month VX1 future contract is less than the next-month VX2 contract. This is called Contango and is typical for the majority of the time. If the roll yield falls below zero. This is considered backwardation where the front-month VX1 contract is higher than the value of the next-month VX2 contract. Contango is most common. When Backwardation occurs, there is usually high volatility present.
Features :
The red and green fill indicate the current roll yield with the gray line being zero.
An Exponential moving average is overlaid on the roll yield. It is red when trending down and green when trending up. If you right-click the indicator, you can set alerts for roll yield EMA color transitions green to red or red to green.
Suggested uses:
The author suggests a one hour chart using the 55 period EMA with a 60 minute setting in the indicator. This gives you a visual idea of whether the roll yield is rising or falling. The roll yield will often change directions at market turning points. For example if the roll yield EMA changes from red to green, this indicates a rising roll yield and volatility is subsiding. This could be considered bullish. If the roll yield begins falling, this indicates volatility is rising. This may be negative for stocks and indexes.
I look for short volatility positions (SVIX) when the roll yield is rising. I look for long volatility positions (VXX, UVXY, UVIX) when the roll yield begins falling. The indicator can be added to any chart. I suggest using the VX1, SPY, VIX, or other major stock index.
Set the time frame to your trading style. The default is 60 minutes. Note, the timeframe of the indicator does NOT utilize the current chart timeframe, it must be set to the desired timeframe. I manually input text on the chart indicator for understanding periods of Long and Short Volatility.
Settings and Defaults
The EMA is set to 55 by default and the table location is set to the lower right. The default time frame is 60 minutes. These features are all user configurable.
Other considerations
Sometimes the Tradingview data when a VX contract expires and another contract begins, may not transition cleanly and appear as a break on the chart. Tradingview is working on this as stated from my last request. This VX contract from one expiring contract to the next can be fixed on the price chart manually: ( Chart settings, Symbol, check the "Adjust for contract changes" box)
Observations
Pull up a one-hour chart of VX1 or SPY. Add this indicator. roll it back in time to see how the market and volatility reacts when the EMA changes from red to green and green to red. Adjust the EMA to your trading style and time frame. Use this for added confirmation of your long and short volatility trades with the Volatility ETFs SVIX, SVXY, VXX, UVXY, UVIX. or use it for long/short indexes such as SPY.
Bitcoin Reversal PredictorOverview
This indicator displays two lines that, when they cross, signal a potential reversal in Bitcoin's price trend. Historically, the high or low of a bull market cycle often occurs near the moment these lines intersect. The lines consist of an Exponential Moving Average (EMA) and a logarithmic regression line fitted to all of Bitcoin's historical data.
Inspiration
The inspiration for this indicator came from the PI Cycle Top indicator, which has accurately predicted past bull market peaks. However, I believe the PI Cycle Top indicator may not be as effective in the future. In that indicator, two lines cross to mark the top, but the extent of the cross has been diminishing over time. This was especially noticeable in the 2021 cycle, where the lines barely crossed. Because of this, I created a new indicator that I think will continue to provide reliable reversal signals in the future.
How It Works
The logarithmic regression line is fitted to the Bitcoin (BTCUSD) chart using two key factors: the 'a' factor (slope) and the 'b' factor (intercept). This results in a steadily decreasing line. The EMA oscillates above and below this regression line. Each time the two lines cross, a vertical colored bar appears, indicating that Bitcoin's price momentum is likely to reverse.
Use Cases
- Price Bottoming:
Bitcoin often bottoms out when the EMA crosses below the logarithmic regression line.
- Price Topping:
In contrast, Bitcoin often peaks when the EMA crosses above the logarithmic regression line.
- Profitable Strategy:
Trading at the crossovers of these lines can be a profitable strategy, as these moments often signal significant price reversals.
Golden & Death Cross with Re-Activation [By Oberlunar]🎄 Merry Christmas to All Traders! 🎄
Let me introduce you to a practical and customizable classic tool: the Golden & Death Cross with Re-Activation. This script is designed to help you navigate the markets with precision and adaptability.
Why Is This Script Important?
1. Customizable Moving Averages
You can choose from SMA, EMA, WMA, HMA, or RMA for both moving averages. This flexibility allows you to tailor the strategy to fit different markets and trading styles.
2. Smart Signal Handling
The script generates Golden Cross (LONG) and Death Cross (SHORT) signals while deactivating them automatically when the moving averages start to converge, avoiding unnecessary noise.
3. Reactivation Based on Distance Threshold
With the treshold parameter, signals are reactivated only when the moving averages move apart sufficiently, ensuring that the signals remain meaningful and not just random market noise.
What Are These Moving Averages?
SMA (Simple Moving Average),
EMA (Exponential Moving Average),
WMA (Weighted Moving Average),
HMA (Hull Moving Average),
RMA (Relative Moving Average)
Community Input
We invite you to test this script on various markets (forex, stocks, crypto) and share your insights:
Which moving average combination works best for EUR/USD?
How about BTC/USD?
Does the treshold make a noticeable difference?
Let us know in the comments!
Example Settings
MA 1 Type: HMA, Length: 21
MA 2 Type: HMA, Length: 200
Reactivation Threshold: 0.5
Experiment with it, and let us know your findings.
Wishing you a calm holiday season and a profitable new year ahead! 🎁
🎄 Merry Christmas and Happy Trading! 🎄
RSI+EMA+MZONES with DivergencesFeatures:
1. RSI Calculation:
Uses user-defined periods to calculate the RSI and visualize momentum shifts.
Plots key RSI zones, including upper (overbought), lower (oversold), and middle levels.
2. EMA of RSI:
Includes an Exponential Moving Average (EMA) of the RSI for trend smoothing and confirmation.
3. Bullish and Bearish Divergences:
Detects Regular divergences (labeled as “Bull” and “Bear”) for classic signals.
Identifies Hidden divergences (labeled as “H Bull” and “H Bear”) for potential trend continuation opportunities.
4. Customizable Labels:
Displays divergence labels directly on the chart.
Labels can be toggled on or off for better chart visibility.
5. Alerts:
Predefined alerts for both regular and hidden divergences to notify users in real time.
6. Fully Customizable:
Adjust RSI period, lookback settings, divergence ranges, and visibility preferences.
Colors and styles are easily configurable to match your trading style.
How to Use:
RSI Zones: Use RSI and its zones to identify overbought/oversold conditions.
EMA: Look for crossovers or confluence with divergences for confirmation.
Divergences: Monitor for “Bull,” “Bear,” “H Bull,” or “H Bear” labels to spot key reversal or continuation signals.
Alerts: Set alerts to be notified of divergence opportunities without constant chart monitoring.
Multi SMA EMA VWAP1. Moving Average Crossover
This is one of the most common strategies with moving averages, and it involves observing crossovers between EMAs and SMAs to determine buy or sell signals.
Buy signal: When a faster EMA (like a short-term EMA) crosses above a slower SMA, it can indicate a potential upward movement.
Sell signal: When a faster EMA crosses below a slower SMA, it can indicate a potential downward movement.
With 4 EMAs and 5 SMAs, you can set up crossovers between different combinations, such as:
EMA(9) crosses above SMA(50) → buy.
EMA(9) crosses below SMA(50) → sell.
2. Divergence Confirmation Between EMAs and SMAs
Divergence between the EMAs and SMAs can offer additional confirmation. If the EMAs are pointing in one direction and the SMAs are still in the opposite direction, it is a sign that the movement could be stronger and continue in the same direction.
Positive divergence: If the EMAs are making new highs while the SMAs are still below, it could be a sign that the market is in a strong trend.
Negative divergence: If the EMAs are making new lows and the SMAs are still above, you might consider that the market is in a downtrend or correction.
3. Using EMAs as Dynamic Support and Resistance
EMAs can act as dynamic support and resistance in strong trends. If the price approaches a faster EMA from above and doesn’t break it, it could be a good entry point for a long position (buy). If the price approaches a slower EMA from below and doesn't break it, it could be a good point to sell (short).
Buy: If the price is above all EMAs and approaches the fastest EMA (e.g., EMA(9)), it could be a good buy point if the price bounces upward.
Sell: If the price is below all EMAs and approaches the fastest EMA, it could be a good sell point if the price bounces downward.
4. Combining SMAs and EMAs to Filter Signals
SMAs can serve as a trend filter to avoid trading in sideways markets. For example:
Bullish trend condition: If the longer-term SMAs (such as SMA(100) or SMA(200)) are below the price, and the shorter EMAs are aligned upward, you can look for buy signals.
Bearish trend condition: If the longer-term SMAs are above the price and the shorter EMAs are aligned downward, you can look for sell signals.
5. Consolidation Zone Between EMAs and SMAs
When the price moves between EMAs and SMAs without a clear trend (consolidation zone), you can expect a breakout. In this case, you can use the EMAs and SMAs to identify the direction of the breakout:
If the price is in a narrow range between the EMAs and SMAs and then breaks above the fastest EMA, it’s a sign that an upward trend may begin.
If the price breaks below the fastest EMA, it could indicate a potential downward trend.
6. "Golden Cross" and "Death Cross" Strategy
These are classic strategies based on crossovers between moving averages of different periods.
Golden Cross: Occurs when a faster EMA (e.g., EMA(50)) crosses above a slower SMA (e.g., SMA(200)), which suggests a potential bullish trend.
Death Cross: Occurs when a faster EMA crosses below a slower SMA, which suggests a potential bearish trend.
Additional Recommendations:
Combining with other indicators: You can combine EMA and SMA signals with other indicators like the RSI (Relative Strength Index) or MACD (Moving Average Convergence/Divergence) for confirmation and to avoid false signals.
Risk management: Always use stop-loss and take-profit orders to protect your capital. Moving averages are trend-following indicators but don’t guarantee that the price will move in the same direction.
Timeframe analysis: It’s recommended to use different timeframes to confirm the trend (e.g., use EMAs on hourly charts along with SMAs on daily charts).
VWAP
1. VWAP + EMAs for Trend Confirmation
VWAP can act as a trend filter, confirming the direction provided by the EMAs.
Buy Signal: If the price is above the VWAP and the EMAs are aligned in an uptrend (e.g., short-term EMAs are above longer-term EMAs), this indicates that the trend is bullish and you can look for buy opportunities.
Sell Signal: If the price is below the VWAP and the EMAs are aligned in a downtrend (e.g., short-term EMAs are below longer-term EMAs), this suggests a bearish trend and you can look for sell opportunities.
In this case, VWAP is used to confirm the overall trend. For example:
Bullish: Price above VWAP, EMAs aligned to the upside (e.g., EMA(9) > EMA(50) > EMA(200)), buy.
Bearish: Price below VWAP, EMAs aligned to the downside (e.g., EMA(9) < EMA(50) < EMA(200)), sell.
2. VWAP as Dynamic Support and Resistance
VWAP can act as a dynamic support or resistance level during the day. Combining this with EMAs and SMAs helps you refine your entry and exit points.
Support: If the price is above VWAP and starts pulling back to VWAP, it could act as support. If the price bounces off the VWAP and aligns with bullish EMAs (e.g., EMA(9) crossing above EMA(50)), you can consider entering a buy position.
Resistance: If the price is below VWAP and approaches VWAP from below, it can act as resistance. If the price fails to break through VWAP and aligns with bearish EMAs (e.g., EMA(9) crossing below EMA(50)), it could be a good signal for a sell.
Trend Battery [Phantom]Trend Battery
Visualize Trend Strength with a Dynamic EMA Power Gauge
OVERVIEW
The Trend Battery indicator offers a clear, visual representation of trend strength based on the alignment of multiple Exponential Moving Averages (EMAs). It assigns a color-coded score to each bar, helping traders quickly assess the prevailing trend's power and direction.
CONCEPT
• Trend Strength Using EMAs: The indicator analyzes the alignment of 20 EMAs (8 to 200 periods) to gauge trend strength. The more EMAs align, the stronger the trend.
• Gradient-Based Visualization: Scores are mapped to a color gradient, transitioning from green (bullish) to purple (bearish), providing an intuitive visual representation of trend momentum.
HOW IT WORKS
Trend Battery calculates 20 EMAs and evaluates their alignment. When EMAs align in a strong trend, the bar colors change (as displayed in battery color key on chart) displaying a spectrum of colors from bright green (strong uptrend) to deep purple (strong downtrend).
• Dynamic Bar Colors:
o Green hues: Strong bullish trends.
o Purple hues: Strong bearish trends.
o Red hues: Weaker trends or potential transitions.
FEATURES
• Dynamic Color Coding: Easy-to-read and instantly assess trend.
• Customizable Transparency: Adjust bar color opacity to your preference.
• Optional EMA Display: Toggle individual EMA lines on/off for additional context.
• Compact Battery View: Quick reference table displaying the gradient color mapping.
SETTINGS
• Transparency: Controls the opacity of bar colors.
• Show EMAs on Chart: Enables/disables plotting of EMA lines.
USAGE
• Identify trend strength and direction.
• Confirm trend reversals or continuations.
• Complement other indicators and strategies.
• Monitor multi-timeframe trends.
TRADE IDEAS:
• For larger timeframes purple hues can be used for accumulating and green hues for distribution.
• For smaller timeframes, color transitions could be a signal for trend reversal, or corrections.
• It is a good idea to use larger timeframes for overall trend directions, and smaller timeframes for entries.
LIMITATIONS
• Lagging Indicator: As the Trend Battery relies on Exponential Moving Averages (EMAs), it is inherently a lagging indicator. This means it reflects past price action and may not always provide timely signals for rapid market changes or sudden reversals.
• False Signals in Sideways Markets: In ranging or consolidating markets, the indicator may produce mixed signals (frequent color changes) as EMAs intertwine without a clear trend. This can lead to false interpretations if not considered alongside other market context indicators.
• Not a Standalone System: The Trend Battery is designed to be a visual aid and should not be used as the sole basis for trading decisions. It's most effective when combined with other technical analysis tools, such as oscillators, support/resistance levels, and fundamental analysis.
DISCLAIMER
Use the Trend Battery indicator in conjunction with other forms of analysis and risk management. Past performance is not indicative of future results.
Austin MTF EMA Entry PointsAustin MTF EMA Entry Points
Overview
The Austin MTF EMA Entry Points is a custom TradingView indicator designed to assist traders in identifying high-probability entry points by combining multiple time frame (MTF) analysis. It leverages exponential moving averages (EMAs) from the daily, 1-hour, and 15-minute charts to generate buy and sell signals that align with the overall trend.
This indicator is ideal for traders who:
Want to trade in the direction of the broader daily trend.
Seek precise entry points on lower time frames (1H and 15M).
Prefer using EMAs as their main trend-following tool.
How It Works
Daily Trend Filter:
The indicator calculates the 50 EMA on the daily chart.
The daily EMA acts as the primary trend filter:
If the current price is above the daily 50 EMA, the trend is bullish.
If the current price is below the daily 50 EMA, the trend is bearish.
Lower Time Frame Entry Points:
The indicator calculates the 20 EMA on both the 1-hour (1H) and 15-minute (15M) time frames.
Buy and sell signals are generated when the price aligns with the trend on all three time frames:
Buy Signal: Price is above the daily 50 EMA and also above the 20 EMA on both the 1H and 15M charts.
Sell Signal: Price is below the daily 50 EMA and also below the 20 EMA on both the 1H and 15M charts.
Visual and Alert Features:
Plot Lines:
The daily 50 EMA is plotted in yellow for easy identification of the main trend.
The 20 EMA from the 1H chart is plotted in blue, and the 15M chart's EMA is in purple for comparison.
Buy/Sell Markers:
Green "Up" arrows appear for buy signals.
Red "Down" arrows appear for sell signals.
Alerts:
Alerts notify users when a buy or sell signal is triggered, making it easier to act on trading opportunities in real-time.
How to Use the Indicator
Identify the Main Trend:
Check the relationship between the price and the daily 50 EMA (yellow line):
Only look for buy signals if the price is above the daily 50 EMA.
Only look for sell signals if the price is below the daily 50 EMA.
Wait for Lower Time Frame Alignment:
For a valid signal, ensure that the price is also above or below the 20 EMA (blue and purple lines) on both the 1H and 15M time frames:
This alignment confirms short-term momentum in the same direction as the daily trend.
Act on Signals:
Use the arrows as visual cues for entry points:
Enter long trades on green "Up" arrows.
Enter short trades on red "Down" arrows.
The alerts will notify you of these signals, so you don’t have to monitor the chart constantly.
Exit Strategy:
Use your preferred stop-loss, take-profit, or trailing stop strategy.
You can also exit trades if the price crosses back below/above the daily 50 EMA, signaling a potential reversal.
Use Cases
Swing Traders: Use the daily trend filter to trade in the direction of the dominant trend, while using 1H and 15M signals to fine-tune entries.
Day Traders: Leverage the 1H and 15M time frames to capitalize on short-term momentum while respecting the broader daily trend.
Position Traders: Monitor the indicator to determine potential reversals or significant alignment across time frames.
Customizable Inputs
The indicator includes the following inputs:
Daily EMA Length: Default is 50. Adjust this to change the length of the trend filter EMA.
Lower Time Frame EMA Length: Default is 20. Adjust this to change the short-term EMA for the 1H and 15M charts.
Time Frames: Hardcoded to "D", "60", and "15", but you can modify the script for different time frames if needed.
Example Scenarios
Buy Signal:
Price is above the daily 50 EMA.
Price crosses above the 20 EMA on both the 1H and 15M time frames.
A green "Up" arrow is displayed, and an alert is triggered.
Sell Signal:
Price is below the daily 50 EMA.
Price crosses below the 20 EMA on both the 1H and 15M time frames.
A red "Down" arrow is displayed, and an alert is triggered.
Strengths and Limitations
Strengths:
Aligns trades with the higher time frame trend for increased probability.
Uses multiple time frame analysis to identify precise entry points.
Visual signals and alerts make it easy to use in real-time.
Limitations:
May produce fewer signals in choppy or ranging markets.
Requires discipline to avoid overtrading when conditions are unclear.
Lag in EMAs could result in late entries in fast-moving markets.
Final Notes
The Austin MTF EMA Entry Points indicator is a powerful tool for traders who value multiple time frame alignment and trend-following strategies. While it simplifies decision-making, it is always recommended to backtest and practice proper risk management before using it in live markets.
Try it out and make smarter, trend-aligned trades today! 🚀
EMA Cloud Matrix with Trend Tablethis script builds upon a standard exponential moving average (ema) by adding volatility-based dynamic bands and persistent trend detection. it also enhances decision-making by including visual indicators (labels and clouds), a multi-timeframe trend table, and optional retest signals. here's an in-depth explanation:
volatility-based bands:
instead of just plotting an ema line, this script creates an upper and lower band around the ema using the average volatility (calculated as the average range of high-low over 100 bars).
the bands represent areas where price is likely to deviate significantly from the ema, signaling potential trend shifts.
persistent trend detection:
a persistent trend variable updates when price crosses above the upper band (bullish trend) or below the lower band (bearish trend). this ensures that the trend state persists until a new cross event occurs.
normal emas don't store such states—they merely provide a lagging representation of price.
visual enhancements:
a color-coded cloud dynamically highlights the area between the ema and the current trend line (upper or lower band), making trend direction clearer.
labels mark significant crossover or crossunder events, serving as potential buy or sell signals.
multi-timeframe trend table:
the table shows the trend direction (buy/sell) for the 15-minute, 4-hour, and daily timeframes, giving a broader perspective for trading decisions.
optional retest signals:
when enabled, it identifies situations where price tests the ema after trending away, providing additional opportunities for entries or exits.
first time ever - why use this and how?
why use this?
this is ideal for traders who:
struggle with trend-following strategies that lack clear entry/exit rules.
want a hybrid system combining ema-based smoothness with volatility-based adaptability.
need to visualize trends in multiple timeframes without switching charts.
how to use this?
buy signal: when the price crosses above the upper band, the trend flips to bullish. you’ll see a green upward arrow (▲) on the chart, indicating a potential long entry.
sell signal: when the price crosses below the lower band, the trend flips to bearish. a blue downward arrow (▼) appears on the chart, signaling a potential short entry.
retest signals (optional): if the price comes back to test the ema during a trend, a retest label can guide you for a secondary entry.
exit based on risk-reward ratio (rr)
this script doesn't explicitly calculate risk-reward ratios (rr), but you can manage exits effectively using the following ideas:
set a defined stop-loss:
if entering on a buy signal (crossover above upper band), place a stop below the ema or the lower band. for short signals, use the upper band as a stop.
this ensures the stop-loss dynamically adjusts with volatility.
use rr to set targets:
decide on a risk-reward ratio like 1:2 or 1:3. for example:
if your stop-loss is 20 points below your entry, set your target 40 or 60 points above for a 1:2 or 1:3 rr.
you can use trailing stops to lock in profits as the trend continues.
exit on opposite signal:
if the trend changes (e.g., price crosses below the lower band in a bullish trade), close the position.
how it gives signals and when to buy or sell
signal logic:
buy signal (bullish crossover):
when the price crosses above the upper band, the script marks it as a bullish trend and plots a green arrow (▲).
sell signal (bearish crossunder):
when the price crosses below the lower band, the script identifies it as a bearish trend and plots a blue arrow (▼).
trend continuation:
the trend state persists until the opposite condition occurs, helping you avoid noise or whipsaws.
multi-timeframe insights:
consult the trend table for confirmation across timeframes. for example:
if the 15-minute and 4-hour timeframes align with a buy trend, it strengthens the case for a long trade.
conflicting signals might suggest waiting for further confirmation.
using retest signals:
during strong trends, price often revisits the ema before resuming. if the optional retest signals are enabled, you’ll see labels at these points. they can be used to:
add to an existing position.
enter a trade if you missed the initial breakout.
key event: price crosses above the upper band
when the price closes above the upper band (ema + volatility buffer), the script identifies a bullish trend.
a green upward arrow (▲) is plotted on the chart, signaling the beginning of a long trend.
visual confirmation:
the cloud between the ema and the trend line (lower band) is filled with a light green color, representing a bullish phase.
the trend table will display "buy" with an upward arrow for the respective timeframe(s).
actionable insight:
entry: take a long position when the green ▲ appears, confirming a bullish crossover.
continuation trades: use the optional retest signals to identify pullbacks to the ema as opportunities to add to the long position.
exit: close the position when a bearish crossunder (sell signal) occurs.
identifying short trends (sell signal)
key event: price crosses below the lower band
when the price closes below the lower band (ema - volatility buffer), the script identifies a bearish trend.
a blue downward arrow (▼) is plotted on the chart, signaling the beginning of a short trend.
visual confirmation:
the cloud between the ema and the trend line (upper band) is filled with a light blue color, representing a bearish phase.
the trend table will display "sell" with a downward arrow for the respective timeframe(s).
actionable insight:
entry: take a short position when the blue ▼ appears, confirming a bearish crossunder.
continuation trades: use the optional retest signals to identify rallies back to the ema as opportunities to add to the short position.
exit: close the position when a bullish crossover (buy signal) occurs.
what makes it different from other ema indicators?
dynamic volatility adaptation:
standard ema indicators only track the average price over a given period, making them susceptible to market noise in highly volatile conditions.
this script uses a volatility buffer (average true range of high-low) to create upper and lower bands around the ema, filtering out insignificant movements and focusing on meaningful breakouts.
persistent trend logic:
unlike traditional emas that simply follow price direction, this script maintains a persistent trend state until a clear crossover or crossunder occurs:
bullish trends persist above the upper band.
bearish trends persist below the lower band.
this minimizes whipsaws in choppy markets.
visual enhancements:
the trend-colored cloud (green for long trends, blue for short trends) helps you quickly identify the market’s state.
labels (▲ and ▼) mark critical entry signals, making it easier to spot potential trades.
multi-timeframe trend confirmation:
the trend table integrates higher and lower timeframes, providing a multi-timeframe perspective:
short-term (15 minutes) for active trading.
medium-term (4 hours) for swing positions.
long-term (daily) for overall trend direction.
optional retest signals:
most ema-based strategies miss the retest phase after a breakout.
this script includes an optional feature to identify pullbacks to the ema during a trend, helping traders enter or add positions at better prices.
all-in-one system:
while traditional ema indicators only show a smoothed average line, this script integrates trend detection, volatility bands, visual aids, and multi-timeframe analysis in a single tool, reducing the need for additional indicators.
summary
this script goes beyond a simple ema by incorporating trend persistence, volatility bands, and multi-timeframe analysis. buy signals occur when price crosses above the upper band, initiating a long trend, while sell signals occur when price crosses below the lower band, initiating a short trend. it stands out due to its ability to adapt to market conditions, provide clear visual cues, and avoid the noise common in standard ema-based systems.
Smart DCA Strategy (Public)INSPIRATION
While Dollar Cost Averaging (DCA) is a popular and stress-free investment approach, I noticed an opportunity for enhancement. Standard DCA involves buying consistently, regardless of market conditions, which can sometimes mean missing out on optimal investment opportunities. This led me to develop the Smart DCA Strategy – a 'set and forget' method like traditional DCA, but with an intelligent twist to boost its effectiveness.
The goal was to build something more profitable than a standard DCA strategy so it was equally important that this indicator could backtest its own results in an A/B test manner against the regular DCA strategy.
WHY IS IT SMART?
The key to this strategy is its dynamic approach: buying aggressively when the market shows signs of being oversold, and sitting on the sidelines when it's not. This approach aims to optimize entry points, enhancing the potential for better returns while maintaining the simplicity and low stress of DCA.
WHAT THIS STRATEGY IS, AND IS NOT
This is an investment style strategy. It is designed to improve upon the common standard DCA investment strategy. It is therefore NOT a day trading strategy. Feel free to experiment with various timeframes, but it was designed to be used on a daily timeframe and that's how I recommend it to be used.
You may also go months without any buy signals during bull markets, but remember that is exactly the point of the strategy - to keep your buying power on the sidelines until the markets have significantly pulled back. You need to be patient and trust in the historical backtesting you have performed.
HOW IT WORKS
The Smart DCA Strategy leverages a creative approach to using Moving Averages to identify the most opportune moments to buy. A trigger occurs when a daily candle, in its entirety including the high wick, closes below the threshold line or box plotted on the chart. The indicator is designed to facilitate both backtesting and live trading.
HOW TO USE
Settings:
The input parameters for tuning have been intentionally simplified in an effort to prevent users falling into the overfitting trap.
The main control is the Buying strictness scale setting. Setting this to a lower value will provide more buying days (less strict) while higher values mean less buying days (more strict). In my testing I've found level 9 to provide good all round results.
Validation days is a setting to prevent triggering entries until the asset has spent a given number of days (candles) in the overbought state. Increasing this makes entries stricter. I've found 0 to give the best results across most assets.
In the backtest settings you can also configure how much to buy for each day an entry triggers. Blind buy size is the amount you would buy every day in a standard DCA strategy. Smart buy size is the amount you would buy each day a Smart DCA entry is triggered.
You can also experiment with backtesting your strategy over different historical datasets by using the Start date and End date settings. The results table will not calculate for any trades outside what you've set in the date range settings.
Backtesting:
When backtesting you should use the results table on the top right to tune and optimise the results of your strategy. As with all backtests, be careful to avoid overfitting the parameters. It's better to have a setup which works well across many currencies and historical periods than a setup which is excellent on one dataset but bad on most others. This gives a much higher probability that it will be effective when you move to live trading.
The results table provides a clear visual representation as to which strategy, standard or smart, is more profitable for the given dataset. You will notice the columns are dynamically coloured red and green. Their colour changes based on which strategy is more profitable in the A/B style backtest - green wins, red loses. The key metrics to focus on are GOA (Gain on Account) and Avg Cost.
Live Trading:
After you've finished backtesting you can proceed with configuring your alerts for live trading.
But first, you need to estimate the amount you should buy on each Smart DCA entry. We can use the Total invested row in the results table to calculate this. Assuming we're looking to trade on
BTCUSD
Decide how much USD you would spend each day to buy BTC if you were using a standard DCA strategy. Lets say that is $5 per day
Enter that USD amount in the Blind buy size settings box
Check the Blind Buy column in the results table. If we set the backtest date range to the last 10 years, we would expect the amount spent on blind buys over 10 years to be $18,250 given $5 each day
Next we need to tweak the value of the Smart buy size parameter in setting to get it as close as we can to the Total Invested amount for Blind Buy
By following this approach it means we will invest roughly the same amount into our Smart DCA strategy as we would have into a standard DCA strategy over any given time period.
After you have calculated the Smart buy size, you can go ahead and set up alerts on Smart DCA buy triggers.
BOT AUTOMATION
In an effort to maintain the 'set and forget' stress-free benefits of a standard DCA strategy, I have set my personal Smart DCA Strategy up to be automated. The bot runs on AWS and I have a fully functional project for the bot on my GitHub account. Just reach out if you would like me to point you towards it. You can also hook this into any other 3rd party trade automation system of your choice using the pre-configured alerts within the indicator.
PLANNED FUTURE DEVELOPMENTS
Currently this is purely an accumulation strategy. It does not have any sell signals right now but I have ideas on how I will build upon it to incorporate an algorithm for selling. The strategy should gradually offload profits in bull markets which generates more USD which gives more buying power to rinse and repeat the same process in the next cycle only with a bigger starting capital. Watch this space!
MARKETS
Crypto:
This strategy has been specifically built to work on the crypto markets. It has been developed, backtested and tuned against crypto markets and I personally only run it on crypto markets to accumulate more of the coins I believe in for the long term. In the section below I will provide some backtest results from some of the top crypto assets.
Stocks:
I've found it is generally more profitable than a standard DCA strategy on the majority of stocks, however the results proved to be a lot more impressive on crypto. This is mainly due to the volatility and cycles found in crypto markets. The strategy makes its profits from capitalising on pullbacks in price. Good stocks on the other hand tend to move up and to the right with less significant pullbacks, therefore giving this strategy less opportunity to flourish.
Forex:
As this is an accumulation style investment strategy, I do not recommend that you use it to trade Forex.
For more info about this strategy including backtest results, please see the full description on the invite only version of this strategy named "Smart DCA Strategy"
Prediction Based on Linreg & Atr
We created this algorithm with the goal of predicting future prices 📊, specifically where the value of any asset will go in the next 20 periods ⏳. It uses linear regression based on past prices, calculating a slope and an intercept to forecast future behavior 🔮. This prediction is then adjusted according to market volatility, measured by the ATR 📉, and the direction of trend signals, which are based on the MACD and moving averages 📈.
How Does the Linreg & ATR Prediction Work?
1. Trend Calculation and Signals:
o Technical Indicators: We use short- and long-term exponential moving averages (EMA), RSI, MACD, and Bollinger Bands 📊 to assess market direction and sentiment (not visually presented in the script).
o Calculation Functions: These include functions to calculate slope, average, intercept, standard deviation, and Pearson's R, which are crucial for regression analysis 📉.
2. Predicting Future Prices:
o Linear Regression: The algorithm calculates the slope, average, and intercept of past prices to create a regression channel 📈, helping to predict the range of future prices 🔮.
o Standard Deviation and Pearson's R: These metrics determine the strength of the regression 🔍.
3. Adjusting the Prediction:
o The predicted value is adjusted by considering market volatility (ATR 📉) and the direction of trend signals 🔮, ensuring that the prediction is aligned with the current market environment 🌍.
4. Visualization:
o Prediction Lines and Bands: The algorithm plots lines that display the predicted future price along with a prediction range (upper and lower bounds) 📉📈.
5. EMA Cross Signals:
o EMA Conditions and Total Score: A bullish crossover signal is generated when the total score is positive and the short EMA crosses above the long EMA 📈. A bearish crossover signal is generated when the total score is negative and the short EMA crosses below the long EMA 📉.
6. Additional Considerations:
o Multi-Timeframe Regression Channel: The script calculates regression channels for different timeframes (5m, 15m, 30m, 4h) ⏳, helping determine the overall market direction 📊 (not visually presented).
Confidence Interpretation:
• High Confidence (close to 100%): Indicates strong alignment between timeframes with a clear trend (bullish or bearish) 🔥.
• Low Confidence (close to 0%): Shows disagreement or weak signals between timeframes ⚠️.
Confidence complements the interpretation of the prediction range and expected direction 🔮, aiding in decision-making for market entry or exit 🚀.
Español
Creamos este algoritmo con el objetivo de predecir los precios futuros 📊, específicamente hacia dónde irá el valor de cualquier activo en los próximos 20 períodos ⏳. Utiliza regresión lineal basada en los precios pasados, calculando una pendiente y una intersección para prever el comportamiento futuro 🔮. Esta predicción se ajusta según la volatilidad del mercado, medida por el ATR 📉, y la dirección de las señales de tendencia, que se basan en el MACD y las medias móviles 📈.
¿Cómo Funciona la Predicción con Linreg & ATR?
Cálculo de Tendencias y Señales:
Indicadores Técnicos: Usamos medias móviles exponenciales (EMA) a corto y largo plazo, RSI, MACD y Bandas de Bollinger 📊 para evaluar la dirección y el sentimiento del mercado (no presentados visualmente en el script).
Funciones de Cálculo: Incluye funciones para calcular pendiente, media, intersección, desviación estándar y el coeficiente de correlación de Pearson, esenciales para el análisis de regresión 📉.
Predicción de Precios Futuros:
Regresión Lineal: El algoritmo calcula la pendiente, la media y la intersección de los precios pasados para crear un canal de regresión 📈, ayudando a predecir el rango de precios futuros 🔮.
Desviación Estándar y Pearson's R: Estas métricas determinan la fuerza de la regresión 🔍.
Ajuste de la Predicción:
El valor predicho se ajusta considerando la volatilidad del mercado (ATR 📉) y la dirección de las señales de tendencia 🔮, asegurando que la predicción esté alineada con el entorno actual del mercado 🌍.
Visualización:
Líneas y Bandas de Predicción: El algoritmo traza líneas que muestran el precio futuro predicho, junto con un rango de predicción (límites superior e inferior) 📉📈.
Señales de Cruce de EMAs:
Condiciones de EMAs y Puntaje Total: Se genera una señal de cruce alcista cuando el puntaje total es positivo y la EMA corta cruza por encima de la EMA larga 📈. Se genera una señal de cruce bajista cuando el puntaje total es negativo y la EMA corta cruza por debajo de la EMA larga 📉.
Consideraciones Adicionales:
Canal de Regresión Multi-Timeframe: El script calcula canales de regresión para diferentes marcos de tiempo (5m, 15m, 30m, 4h) ⏳, ayudando a determinar la dirección general del mercado 📊 (no presentado visualmente).
Interpretación de la Confianza:
Alta Confianza (cerca del 100%): Indica una fuerte alineación entre los marcos temporales con una tendencia clara (alcista o bajista) 🔥.
Baja Confianza (cerca del 0%): Muestra desacuerdo o señales débiles entre los marcos temporales ⚠️.
La confianza complementa la interpretación del rango de predicción y la dirección esperada 🔮, ayudando en las decisiones de entrada o salida en el mercado 🚀.
