EMA + Stochastic Strategy (day trading)Setup Instructions
Exponential Moving Averages (EMA):
Use two EMAs:
50-period EMA for the overall trend.
20-period EMA for shorter-term movements.
Trend Confirmation:
If the 20 EMA is above the 50 EMA, focus on buy opportunities.
If the 20 EMA is below the 50 EMA, focus on sell opportunities.
Stochastic Oscillator:
Set Stochastic to a 14, 3, 3 period (default).
Overbought level = 80; Oversold level = 20.
Look for crossovers:
Buy: Stochastic %K crosses above %D in the oversold zone (below 20).
Sell: Stochastic %K crosses below %D in the overbought zone (above 80).
Entry and Exit Rules
Buy Signal:
The 20 EMA is above the 50 EMA, confirming an uptrend.
The Stochastic Oscillator is in the oversold zone (below 20), and %K crosses above %D.
Enter when the price retraces to and bounces off the 20 EMA in the direction of the trend.
Sell Signal:
The 20 EMA is below the 50 EMA, confirming a downtrend.
The Stochastic Oscillator is in the overbought zone (above 80), and %K crosses below %D.
Enter when the price retraces to and rejects off the 20 EMA in the direction of the trend.
Stop Loss and Take Profit
Stop Loss:
For buy trades: Place the stop loss below the recent swing low.
For sell trades: Place the stop loss above the recent swing high.
Take Profit:
Use a risk-to-reward ratio of 1:2 or higher.
Alternatively, exit the trade when Stochastic reaches the opposite extreme (80 for buys, 20 for sells).
Example
Scenario: GBP/USD on a 15-minute chart.
The 20 EMA is above the 50 EMA, indicating an uptrend.
The Stochastic Oscillator dips below 20, and %K crosses above %D.
Enter a buy trade when the price bounces off the 20 EMA.
Place a stop loss below the nearest swing low and a take profit at twice the risk.
Tips for Success
Avoid Choppy Markets: Ensure the EMAs are diverging, and there’s a clear trend.
Use Stochastic for Confirmation: Only take trades when the Stochastic Oscillator aligns with the EMA trend.
Combine with Price Action:
Watch for candlestick patterns (e.g., pin bars, engulfing candles) near the 20 EMA for additional confirmation.
Practice Discipline: Stick to your stop-loss and take-profit rules.
震盪指標
Wickiness IndexWickiness Index - Detect Indecision and Trend Exhaustion
The Wickiness Index is a versatile technical indicator designed to measure the proportion of wicks (upper and lower shadows) relative to the total range of price bars over a specified lookback period. It provides insights into market indecision, reversals, and trend exhaustion by analyzing the structural composition of candlesticks. The indicator calculates the lengths of upper and lower wicks along with the body of each candlestick. Each bar's wick length is expressed as a percentage of the total range (High - Low). The ratio is scaled to 0–100, where 100 represents entirely wicks with no body (indicating pure indecision) and 0 represents no wicks with only body (indicating strong directional movement). These values are then averaged over the lookback period (default = 5 bars) to provide a smoothed representation of wickiness, reducing noise and highlighting trends.
A high value, especially above 70, suggests indecision or potential reversals, as candlesticks dominated by wicks often appear near tops or bottoms. Conversely, low values below 30 indicate trend strength and strong momentum, useful for spotting breakouts and trend continuation. Mid-range values between 30 and 70 often indicate consolidation phases or gradual transitions between trends. Traders can adjust the lookback period to match their trading style, with shorter periods offering faster responses and longer periods providing smoother trends.
This indicator is particularly useful for trend reversal detection, breakout confirmation, and volatility filtering. It scales effectively across all timeframes, making it suitable for both intraday traders and long-term investors. When combined with volume analysis or trend-following indicators, the Wickiness Index can further strengthen trade signals. The visual design includes a blue line for the index and horizontal reference lines at 30 and 70, allowing for quick and intuitive interpretation.
The Wickiness Index offers a unique perspective on market sentiment and price action behavior, providing traders with valuable insights into potential turning points, momentum shifts, and market indecision. It is a powerful tool for improving decision-making in volatile markets and identifying areas where price trends may weaken or reverse.
Multiple Values TableThis Pine Script indicator, named "Multiple Values Table," provides a comprehensive view of various technical indicators in a tabular format directly on your trading chart. It allows traders to quickly assess multiple metrics without switching between different charts or panels.
Key Features:
Table Position and Size:
Users can choose the position of the table on the chart (e.g., top left, top right).
The size of the table can be adjusted (e.g., tiny, small, normal, large).
Moving Averages:
Calculates the 5-day Exponential Moving Average (5DEMA) using daily data.
Calculates the 5-week and 20-week EMAs (5WEMA and 20WEMA) using weekly data.
Indicates whether the current price is above or below these moving averages in percentage terms.
Drawdown and Williams VIX Fix:
Computes the drawdown from the 365-day high to the current close.
Calculates the Williams VIX Fix (WVF), which measures the volatility of the asset.
Shows both the current WVF and a 2% drawdown level.
Relative Strength Index (RSI):
Displays the current RSI and compares it to the RSI from 14 days ago.
Indicates whether the RSI is increasing, decreasing, or flat.
Stochastic RSI:
Computes the Stochastic RSI and compares it to the value from 14 days ago.
Indicates whether the Stochastic RSI is increasing, decreasing, or flat.
Normalized MACD (NMACD):
Calculates the Normalized MACD values.
Indicates whether the MACD is increasing, decreasing, or flat.
Awesome Oscillator (AO):
Calculates the AO on a daily timeframe.
Indicates whether the AO is increasing, decreasing, or flat.
Volume Analysis:
Displays the average volume over the last 22 days.
Shows the current day's volume as a percentage of the average volume.
Percentile Calculations:
Calculates the current percentile rank of the WVF and ATH over specified periods.
Indicates the percentile rank of the current volume percentage over the past period.
Table Display:
All these values are presented in a neatly formatted table.
The table updates dynamically with the latest data.
Example Use Cases:
Comprehensive Market Analysis: Quickly assess multiple indicators at a glance.
Trend and Momentum Analysis: Identify trends and momentum changes based on various moving averages and oscillators.
Volatility and Drawdown Monitoring: Track volatility and drawdown levels to manage risk effectively.
This script offers a powerful tool for traders who want to have a holistic view of various technical indicators in one place. It provides flexibility in customization and a user-friendly interface to enhance your trading experience.
Smooth RSI [MarktQuant]This indicator combines elements of the Relative Strength Index (RSI) and Rate of Change (RoC) to provide a smoother and potentially more insightful view of market momentum and price movement. The Smooth RSI calculates RSI values across four price points (high, open, low, close) to average them, offering a less volatile RSI signal. Additionally, it incorporates a Rate of Change for trend confirmation, enhancing the decision-making process for trade entries and exits.
Features:
Multi-RSI Calculation: RSI is computed for high, open, low, and close prices, then averaged to reduce noise.
Trend Confirmation with RoC: Uses the Rate of Change to validate the RSI signals, coloring bars based on the trend direction.
Visual Signals:
Bar colors change based on combined RSI and RoC signals.
Green for bullish signals (RSI above 50 and positive RoC).
Red for bearish signals (RSI below 50 and negative RoC).
Horizontal lines at 30, 50, and 70 to denote overbought, neutral, and oversold conditions.
Customizable Display:
Option to show/hide RSI plot or RoC plot for cleaner charts.
Candle plot overlay option to visualize current price action alongside the indicator.
Inputs:
RSI Length: Default 28. Adjusts the lookback period for RSI calculation.
RoC Length: Default 28. Sets the period for the Rate of Change calculation.
Plot Settings:
Show RSI - Toggle RSI plot visibility.
Show RoC - Toggle RoC plot visibility.
Usage:
Long signals are indicated when the average RSI is above 50 and the RoC is positive.
Short signals are suggested when the average RSI falls below 50 with a negative RoC.
The color coding helps visually confirm trends at a glance.
Notes:
This indicator is best used in conjunction with other analysis methods to confirm signals.
Adjust the length parameters based on your trading timeframe for optimal results.
Disclaimer:
This indicator does not guarantee trading success; use it as part of a comprehensive trading strategy. Always conduct your own analysis before making trading decisions.
Fast WMAThe Fast WMA is a reactive trend-following tool designed to provide rapid signals on the ETHBTC ratio. It uses advanced smoothing techniques and normalized thresholds to detect trends effectively. Let’s break it down further:
Source Smoothing with Standard Deviations
The source price data is smoothed by calculating its standard deviation, which measures how far prices typically move from the average. This creates upper and lower deviation levels:
The upper deviation represents a high boundary where prices might be overextended.
The lower deviation represents a low boundary where prices might be oversold.
These deviations are combined with the Weighted Moving Average (WMA) to filter out noise and focus on significant price movements.
Weighting the WMA for Further Smoothing
The Weighted Moving Average (WMA) itself is refined by applying adjustable weights:
An upper weight expands the WMA, forming an Upper Band.
A lower weight compresses the WMA, forming a Lower Band.
This dual-weighted approach allows the tool to adapt dynamically to price action, highlighting areas of potential trend reversals or continuations.
Normalized WMA (NWMA) with Adjustable Thresholds
The Normalized WMA (NWMA) adds an extra layer of analysis:
It compares the source price to its smoothed average, expressing the result as a percentage change.
This helps identify whether the market is overbought (positive NWMA) or oversold (negative NWMA).
Two adjustable thresholds—a long threshold (for buy signals) and a short threshold (for sell signals)—allow users to fine-tune the sensitivity of these signals based on their trading style or the market's volatility.
Entry/Exit Conditions
The Fast WMA generates signals based on two conditions:
Buy (Long) Signal:
Occurs when the price stays above the lower deviation level, and the NWMA crosses above the long threshold.
Indicates bullish momentum and suggests an upward trend.
Sell (Short) Signal:
Occurs when the price falls below the upper deviation level, and the NWMA drops below the short threshold.
Indicates bearish momentum and suggests a downward trend.
Important Note
This indicator is not designed to work alone. It’s a powerful tool for identifying trends but should be combined with other analyses, such as volume, higher time-frame trends, or fundamental analysis, for better decision-making.
Plotting Features
The Fast WMA includes intuitive visual cues to enhance usability:
Color-Coded Signals:
Colors change dynamically to indicate trend direction.
Options are available to customize the color scheme (e.g., for specific trading pairs like ETHBTC or SOLBTC).
Threshold Lines:
Dashed horizontal lines mark the long and short thresholds, helping users visualize signal levels.
Bands and Fill Areas:
The Upper Band and Lower Band are plotted around the WMA, with shaded regions indicating the deviation zones.
Signal Arrows:
Triangles appear below or above candles to highlight potential buy (upward arrow) or sell (downward arrow) points.
Bar Coloring:
Candlesticks are colored according to trend direction, making it easier to identify trends at a glance.
The Fast WMA combines mathematical precision with user-friendly visualization, offering traders a versatile tool to analyze trends and make informed decisions. However, like any indicator, it’s most effective when used as part of a broader trading strategy.
OBV Divergence Indicator [TradingFinder] On-Balance Vol Reversal🔵 Introduction
The On-Balance Volume (OBV) indicator, introduced by Joe Granville in 1963, is a powerful technical analysis tool used to measure buying and selling pressure based on trading volume and price.
By aggregating trading volume—adding it on positive days and subtracting it on negative days—OBV creates a cumulative line that reflects market volume pressure, making it valuable for confirming trends, identifying entry and exit points, and forecasting potential price movements.
Divergences between price and OBV often provide significant signals. A bearish divergence occurs when the price forms higher highs while the OBV line forms lower highs. This discrepancy indicates that upward momentum is weakening, increasing the likelihood of a downward trend.
In contrast, a bullish divergence happens when the price makes lower lows, but the OBV line forms higher lows. This suggests increasing buying pressure and the potential for an upward trend reversal.
For instance, if the price is rising but the OBV trendline is falling, it may signal a bearish divergence, warning of a possible price decline. Conversely, if the price is falling while the OBV line is rising, this could signal a bullish divergence, indicating a possible price recovery. These signals are particularly useful for identifying market turning points.
OBV often acts as a leading indicator, moving ahead of price changes. For example, a rising OBV alongside stable or declining prices can signal an impending upward breakout.
Conversely, a declining OBV with rising prices may indicate that the current uptrend is losing strength. Traders using this strategy often consider entering positions at breakout levels while setting stop losses near recent swing highs or lows to manage risk effectively.
This integration highlights how OBV divergences can provide actionable insights for predicting price movements and managing trades efficiently.
Bullish Divergence :
Bearish Divergence :
🔵 How to Use
The OBV indicator, as a cumulative tool, assists analysts in comparing volume and price changes to identify new trends and key levels for entering or exiting trades. Beyond confirming existing trends, it is particularly effective in analyzing positive and negative divergences between price and volume, providing valuable signals for trading decisions.
🟣 Bullish Divergence
A bullish divergence occurs when the price continues its downward or stable trend, but the OBV line starts rising, forming a higher low compared to its previous low. This suggests increasing volume on up days relative to down days and often signals a reversal to the upside.
For instance, if an asset's price stabilizes near a support level but the OBV line shows an upward trend, this divergence could present an opportunity to enter a long position.
🟣 Bearish Divergence
A bearish divergence occurs when the price forms higher highs, but the OBV line declines, creating lower highs compared to previous peaks. This indicates decreasing volume on up days relative to down days and often acts as a warning for a reversal to the downside.
For example, if an asset’s price approaches a resistance level while OBV starts declining, this divergence may signal the beginning of a downtrend and could indicate a good time to exit long trades or enter short positions.
🔵 Setting
Period : The "Period" setting allows you to define the number of bars or intervals for "Periodic" and "EMA" modes. A shorter period captures more short-term movements, while a longer period smooths out the fluctuations and provides a broader view of market trends.
You can enable or disable labels to highlight key levels or divergences and tables to show numerical details like values and divergence types. These options allow for a customized chart display.
🔵 Table
The following table breaks down the main features of the oscillator. It covers four critical categories: Exist, Consecutive, Divergence Quality, and Change Phase Indicator.
Exist : If divergence is detected, a "+" will appear in this row.
Consecutive: Shows the number of consecutive divergences that have formed in a short period.
Divergence Quality : Evaluates the quality of the divergence based on the number of occurrences. One is labeled "Normal," two are "Good," and three or more are considered "Strong."
Change Phase Indicator : If a phase change is detected between two oscillation peaks, this is marked in the table.
🔵 Conclusion
The OBV (On Balance Volume) indicator is a simple yet effective tool in technical analysis that combines volume and price changes to provide a comprehensive view of market buying and selling pressure. By identifying positive and negative divergences, OBV enables analysts to detect early signs of trend reversals and refine their trading strategies.
Divergences in OBV often precede price changes, making it a leading indicator for predicting market movements. Using OBV alongside other technical tools can enhance decision-making accuracy and help traders identify better entry and exit points. However, it is essential to consider the limitations of OBV, such as the potential for signal errors and the impact of sudden news events.
Ultimately, OBV serves as a complementary tool in technical analysis, aiding in trend identification, signal confirmation, and risk management. A thoughtful application of this indicator, in combination with other analytical tools, can create valuable opportunities for profiting in financial markets.
Fund Master Plus (TV Rev1, Dec2024)License: Mozilla Public License 2.0 (Open Source)
Version: Pine Script™ v6
Indicator Name: Fund Master Plus (TV Rev1, Dec2024)
Short Title: Fund Master Plus
About Fund Master Plus
Fund Master Plus indicator is an oscillating technical analysis tool designed to simulate the fund inflow and outflow trend.
Key features:
1. Fund Master Value and Candle
The candle highlights the direction of the Fund Master value.
Green candles represent an upward trend, while red candles indicate a downward trend.
When the candle crossover 0, it is a sign of the start of mid term bull, vice versa.
When the candle is above 0, it is a sign of mid-term bull, vice versa.
2. Fund Master Bar
This bar provides added visual representation of the Fund Master value.
Green bars represent and upward trend, while red bars indicate a downward trend.
3. FM EMA (Exponential Moving Average)
The Fund Master EMA (Exponential Moving Average) helps smooth out FM value fluctuations
and identify the overall trend.
When the candle crossover FM EMA, it is a sign of the start of short term bull, vice vera.
When the candle is above FM EMA, it is a sign of short term bull, vice versa.
4. EMA of FM EMA
This is an EMA of the Fund Master EMA, which can provide additional insights into the
trend's strength.
5. Candle Turn Green or Red
This feature generates alerts to signal potential trend changes.
6. Bottom Deviation & Top Deviation
Line plot and label of these deviation will show on indicator and the price chart to help user
identify potential buying and selling opportunities.
7. Alertcondition for Turn Green or Turn Red
User can set the alert using the Create Alert (the Clock Icon).
8. Table Summary
A table summary is provided to show indicator name, FM value, FM candle status,
Crossover, Crossunder, Turn Green, Turn Red status, Bar Number etc.
A tooltip for Filter Setting and a filter status check.
SOP to use the indicator:
Table (GR1):
Show Table: This option enables or disables the display of the table.
Text Size: This option allows you to set the text size for the table entries.
Width: This option sets the width of the table.
Fund Master Candle Color Setting (GR2):
FM candle will up by default.
This option enables the color setting of Fund Master candle.
Up: This option sets the color of the Fund Master candle for uptrend.
Down: This option sets the color of the Fund Master candle for downtrend.
Fund Master Bar and Color Setting (GR3):
Show Fund Master Bar: This option enables or disables the display of the Fund Master bar.
Up: This option sets the color of the Fund Master bar for uptrend.
Down: This option sets the color of the Fund Master bar for downtrend.
Fund Master EMA plots (GR4):
Show FM EMA: This option enables or disables the display of the Fund Master EMA line.
Look Back Period: This option sets the lookback period for the Fund Master EMA calculation.
EMA Color: This option sets the color of the Fund Master EMA line.
Show EMA of FM EMA: This option enables or disables the display of the EMA of the Fund Master EMA line.
Look Back Period 2: This option sets the lookback period for the EMA of the Fund Master EMA calculation.
Alerts: Fund Master Crossover & Crossunder EMA Line or 0 (GR5):
Show FM Crossover 0: This option enables or disables the display of the alert for FM crossover above the 0 line.
Show FM Crossunder 0: This option enables or disables the display of the alert for FM crossover below the 0 line.
Show FM Crossover EMA: This option enables or disables the display of the alert for FM crossover above the EMA line.
Show FM Crossunder EMA: This option enables or disables the display of the alert for FM crossover below the EMA line.
Bottom and Top Deviation (GR6):
Show Bottom Deviation: This option enables or disables the display of the bottom deviation line.
Show Top Deviation: This option enables or disables the display of the top deviation line.
Turn Green, Turn Red Alert (GR7):
Show Turn Green/Red Alerts: This option enables or disables the display of alerts for when the Fund Master value changes direction.
Current & Turn Green/Red Alerts: This option sets the number of bars to look back for the turn green/red alerts.
Band and User Input Setting (GR8):
100: This option enables or disables the display of the 100 band.
0: This option enables or disables the display of the 0 band.
-100: This option enables or disables the display of the -100 band.
User Input: This option enables or disables the display of a custom band based on user input.
Value: This option sets the value for the custom band.
Disclaimer
Attached chart is for the purpose of illustrating the use of indicator, no recommendation of buy/sell.
In this chart, all features in the setting are turned on (default and non default).
This chart is used to demonstrate the FM trend movement from mid-term bear to mid-term bull,
short-term bear and bull, bottom deviation and top deviation.
Hope this help. Merry Christmas and Happy New Year.
EMA RSI Trend Reversal Ver.1Overview:
The EMA RSI Trend Reversal indicator combines the power of two well-known technical indicators—Exponential Moving Averages (EMAs) and the Relative Strength Index (RSI)—to identify potential trend reversal points in the market. The strategy looks for key crossovers between the fast and slow EMAs, and uses the RSI to confirm the strength of the trend. This combination helps to avoid false signals during sideways market conditions.
How It Works:
Buy Signal:
The Fast EMA (9) crosses above the Slow EMA (21), indicating a potential shift from a downtrend to an uptrend.
The RSI is above 50, confirming strong bullish momentum.
Visual Signal: A green arrow below the price bar and a Buy label are plotted on the chart.
Sell Signal:
The Fast EMA (9) crosses below the Slow EMA (21), indicating a potential shift from an uptrend to a downtrend.
The RSI is below 50, confirming weak or bearish momentum.
Visual Signal: A red arrow above the price bar and a Sell label are plotted on the chart.
Key Features:
EMA Crossovers: The Fast EMA crossing above the Slow EMA signals potential buying opportunities, while the Fast EMA crossing below the Slow EMA signals potential selling opportunities.
RSI Confirmation: The RSI helps confirm trend strength—values above 50 indicate bullish momentum, while values below 50 indicate bearish momentum.
Visual Cues: The strategy uses green arrows and red arrows along with Buy and Sell labels for clear visual signals of when to enter or exit trades.
Signal Interpretation:
Green Arrow / Buy Label: The Fast EMA (9) has crossed above the Slow EMA (21), and the RSI is above 50. This is a signal to buy or enter a long position.
Red Arrow / Sell Label: The Fast EMA (9) has crossed below the Slow EMA (21), and the RSI is below 50. This is a signal to sell or exit the long position.
Strategy Settings:
Fast EMA Length: Set to 9 (this determines how sensitive the fast EMA is to recent price movements).
Slow EMA Length: Set to 21 (this smooths out price movements to identify the broader trend).
RSI Length: Set to 14 (default setting to track momentum strength).
RSI Level: Set to 50 (used to confirm the strength of the trend—above 50 for buy signals, below 50 for sell signals).
Risk Management (Optional):
Use take profit and stop loss based on your preferred risk-to-reward ratio. For example, you can set a 2:1 risk-to-reward ratio (2x take profit for every 1x stop loss).
Backtesting and Optimization:
Backtest the strategy on TradingView by opening the Strategy Tester tab. This will allow you to see how the strategy would have performed on historical data.
Optimization: Adjust the EMA lengths, RSI period, and risk-to-reward settings based on your asset and time frame.
Limitations:
False Signals in Sideways Markets: Like any trend-following strategy, this indicator may generate false signals during periods of low volatility or sideways movement.
Not Suitable for All Market Conditions: This indicator performs best in trending markets. It may underperform in choppy or range-bound markets.
Strategy Example:
XRP/USD Example:
If you're trading XRP/USD and the Fast EMA (9) crosses above the Slow EMA (21), while the RSI is above 50, the indicator will signal a Buy.
Conversely, if the Fast EMA (9) crosses below the Slow EMA (21), and the RSI is below 50, the indicator will signal a Sell.
Bitcoin (BTC/USD):
On the BTC/USD chart, when the indicator shows a green arrow and a Buy label, it’s signaling a potential long entry. Similarly, a red arrow and Sell label indicate a short entry or exit from a previous long position.
Summary:
The EMA RSI Trend Reversal Indicator helps traders identify potential trend reversals with clear buy and sell signals based on the EMA crossovers and RSI confirmations. By using green arrows and red arrows, along with Buy and Sell labels, this strategy offers easy-to-understand visual signals for entering and exiting trades. Combine this with effective risk management and backtesting to optimize your trading performance.
Cumulative Force Oscillator with MACDCumulative Force Oscillator with MACD
The Cumulative Force Oscillator with MACD is an advanced technical indicator designed to provide traders with a unique perspective on market momentum and trend strength. By combining the power of cumulative candle force analysis with MACD crossover signals, this indicator offers a multifaceted approach to market analysis.
Key Features
1. Cumulative Force Calculation**: Measures the net force of price movements over a specified number of candles.
2. MACD Integration**: Incorporates MACD crossover signals for additional trend confirmation.
3. Visual Cues**: Utilizes color-coded oscillator lines and background zones for easy interpretation.
4. **Dynamic Labeling**: Displays real-time force values and percentage changes.
How It Works
Cumulative Force Calculation
The indicator calculates the "force" of each candle by subtracting the open price from the close price. It then sums this force over a user-defined number of candles to create a cumulative force value. This value oscillates above and below zero, indicating bullish or bearish pressure respectively.
MACD Crossover Detection
The indicator uses the standard MACD (12, 26, 9) to detect bullish and bearish crossovers. These crossovers are visually represented by colored background zones, providing an additional layer of trend confirmation.
Visual Representation
- The main oscillator line is plotted in green when above zero (bullish) and red when below zero (bearish).
- Background colors change based on MACD crossovers: light blue for bullish crossovers and light orange for bearish crossovers.
- A dynamic label displays the current cumulative force value and its percentage change from the previous period.
Interpretation
1. Oscillator Line : When the line is above zero, it indicates net bullish pressure; below zero suggests net bearish pressure.
2. Oscillator Momentum : The steepness and direction of the oscillator line indicate the strength and direction of the current market force.
3. MACD Crossovers : Blue background zones suggest potential bullish trends, while orange zones indicate potential bearish trends.
4. Divergences : Look for divergences between the oscillator and price action for potential trend reversal signals.
Customization
Users can customize several aspects of the indicator :
- Number of candles for force calculation
- Label offset and text size
- Color schemes (through code modification)
Conclusion
The Cumulative Force Oscillator with MACD is a versatile tool that combines momentum analysis with trend confirmation signals. By providing a visual representation of cumulative market force alongside MACD crossovers, it offers traders a comprehensive view of market dynamics. This indicator can be particularly useful for identifying potential trend reversals, confirming existing trends, and gauging overall market strength.
Smart Moving Average Trend IndicatorThe Smart Moving Average Trend Indicator is designed to provide traders with a comprehensive analysis of market trends, confirmations, and potential reversals. Here’s a detailed description of its technical features:
Technical Features
Moving Average Calculation:
Simple Moving Average (SMA): The indicator calculates a simple moving average over a user-defined period (default is 14 bars). This average helps smooth out price fluctuations and identify the overall direction of the trend.
Trend Detection:
Primary Trend: Identifies long-term trends (weeks to months) based on price movement above or below the SMA.
Secondary Trend: Tracks short-term corrections or retracements against the primary trend.
Minor Trend: Monitors short-term fluctuations, providing insights into immediate market movements.
Volume Confirmation:
The indicator assesses whether the current volume exceeds a threshold (default is 1.5 times the SMA of volume). A price increase accompanied by higher volume indicates stronger trend validity.
Trendline Detection:
The script draws trendlines for primary, secondary, and minor trends, visually assisting traders in identifying potential support and resistance levels. These trendlines help visualize the overall market structure.
Trend Reversal Signals:
The indicator highlights potential trend reversals based on specific conditions (e.g., lower troughs or peaks). This feature allows traders to anticipate changes in trend direction, increasing the likelihood of capturing significant price moves.
Alerts:
Alert Conditions: The indicator includes alert conditions for potential trend reversals and volume confirmations. Traders can set up alerts to be notified when these conditions are met, facilitating timely decision-making.
Visual Indications:
Background Color: Changes the background color to red when a potential trend reversal is detected, providing a clear visual cue.
Volume Confirmation Markers: Displays small upward labels below bars when volume confirmation is present, indicating significant trading activity accompanying price movements.
Overall Benefits
Multi-Faceted Analysis: The combination of trend detection, volume analysis, and reversal signals provides a holistic view of market dynamics.
Enhanced Decision-Making: With alerts and visual cues, traders can make more informed decisions, potentially increasing their success in identifying entry and exit points.
Flexibility: Users can customize the moving average length and volume threshold, allowing the indicator to adapt to different trading strategies and timeframes.
This Smart Moving Average Trend Indicator is particularly useful for traders looking to capture trends while minimizing noise and false signals, making it a valuable tool in technical analysis.
Kernel Regression Envelope with SMI OscillatorThis script combines the predictive capabilities of the **Nadaraya-Watson estimator**, implemented by the esteemed jdehorty (credit to him for his excellent work on the `KernelFunctions` library and the original Nadaraya-Watson Envelope indicator), with the confirmation strength of the **Stochastic Momentum Index (SMI)** to create a dynamic trend reversal strategy. The core idea is to identify potential overbought and oversold conditions using the Nadaraya-Watson Envelope and then confirm these signals with the SMI before entering a trade.
**Understanding the Nadaraya-Watson Envelope:**
The Nadaraya-Watson estimator is a non-parametric regression technique that essentially calculates a weighted average of past price data to estimate the current underlying trend. Unlike simple moving averages that give equal weight to all past data within a defined period, the Nadaraya-Watson estimator uses a **kernel function** (in this case, the Rational Quadratic Kernel) to assign weights. The key parameters influencing this estimation are:
* **Lookback Window (h):** This determines how many historical bars are considered for the estimation. A larger window results in a smoother estimation, while a smaller window makes it more reactive to recent price changes.
* **Relative Weighting (alpha):** This parameter controls the influence of different time frames in the estimation. Lower values emphasize longer-term price action, while higher values make the estimator more sensitive to shorter-term movements.
* **Start Regression at Bar (x\_0):** This allows you to exclude the potentially volatile initial bars of a chart from the calculation, leading to a more stable estimation.
The script calculates the Nadaraya-Watson estimation for the closing price (`yhat_close`), as well as the highs (`yhat_high`) and lows (`yhat_low`). The `yhat_close` is then used as the central trend line.
**Dynamic Envelope Bands with ATR:**
To identify potential entry and exit points around the Nadaraya-Watson estimation, the script uses **Average True Range (ATR)** to create dynamic envelope bands. ATR measures the volatility of the price. By multiplying the ATR by different factors (`nearFactor` and `farFactor`), we create multiple bands:
* **Near Bands:** These are closer to the Nadaraya-Watson estimation and are intended to identify potential immediate overbought or oversold zones.
* **Far Bands:** These are further away and can act as potential take-profit or stop-loss levels, representing more extreme price extensions.
The script calculates both near and far upper and lower bands, as well as an average between the near and far bands. This provides a nuanced view of potential support and resistance levels around the estimated trend.
**Confirming Reversals with the Stochastic Momentum Index (SMI):**
While the Nadaraya-Watson Envelope identifies potential overextended conditions, the **Stochastic Momentum Index (SMI)** is used to confirm a potential trend reversal. The SMI, unlike a traditional stochastic oscillator, oscillates around a zero line. It measures the location of the current closing price relative to the median of the high/low range over a specified period.
The script calculates the SMI on a **higher timeframe** (defined by the "Timeframe" input) to gain a broader perspective on the market momentum. This helps to filter out potential whipsaws and false signals that might occur on the current chart's timeframe. The SMI calculation involves:
* **%K Length:** The lookback period for calculating the highest high and lowest low.
* **%D Length:** The period for smoothing the relative range.
* **EMA Length:** The period for smoothing the SMI itself.
The script uses a double EMA for smoothing within the SMI calculation for added smoothness.
**How the Indicators Work Together in the Strategy:**
The strategy enters a long position when:
1. The closing price crosses below the **near lower band** of the Nadaraya-Watson Envelope, suggesting a potential oversold condition.
2. The SMI crosses above its EMA, indicating positive momentum.
3. The SMI value is below -50, further supporting the oversold idea on the higher timeframe.
Conversely, the strategy enters a short position when:
1. The closing price crosses above the **near upper band** of the Nadaraya-Watson Envelope, suggesting a potential overbought condition.
2. The SMI crosses below its EMA, indicating negative momentum.
3. The SMI value is above 50, further supporting the overbought idea on the higher timeframe.
Trades are closed when the price crosses the **far band** in the opposite direction of the trade. A stop-loss is also implemented based on a fixed value.
**In essence:** The Nadaraya-Watson Envelope identifies areas where the price might be deviating significantly from its estimated trend. The SMI, calculated on a higher timeframe, then acts as a confirmation signal, suggesting that the momentum is shifting in the direction of a potential reversal. The ATR-based bands provide dynamic entry and exit points based on the current volatility.
**How to Use the Script:**
1. **Apply the script to your chart.**
2. **Adjust the "Kernel Settings":**
* **Lookback Window (h):** Experiment with different values to find the smoothness that best suits the asset and timeframe you are trading. Lower values make the envelope more reactive, while higher values make it smoother.
* **Relative Weighting (alpha):** Adjust to control the influence of different timeframes on the Nadaraya-Watson estimation.
* **Start Regression at Bar (x\_0):** Increase this value if you want to exclude the initial, potentially volatile, bars from the calculation.
* **Stoploss:** Set your desired stop-loss value.
3. **Adjust the "SMI" settings:**
* **%K Length, %D Length, EMA Length:** These parameters control the sensitivity and smoothness of the SMI. Experiment to find settings that work well for your trading style.
* **Timeframe:** Select the higher timeframe you want to use for SMI confirmation.
4. **Adjust the "ATR Length" and "Near/Far ATR Factor":** These settings control the width and sensitivity of the envelope bands. Smaller ATR lengths make the bands more reactive to recent volatility.
5. **Customize the "Color Settings"** to your preference.
6. **Observe the plots:**
* The **Nadaraya-Watson Estimation (yhat)** line represents the estimated underlying trend.
* The **near and far upper and lower bands** visualize potential overbought and oversold zones based on the ATR.
* The **fill areas** highlight the regions between the near and far bands.
7. **Look for entry signals:** A long entry is considered when the price touches or crosses below the lower near band and the SMI confirms upward momentum. A short entry is considered when the price touches or crosses above the upper near band and the SMI confirms downward momentum.
8. **Manage your trades:** The script provides exit signals when the price crosses the far band. The fixed stop-loss will also close trades if the price moves against your position.
**Justification for Combining Nadaraya-Watson Envelope and SMI:**
The combination of the Nadaraya-Watson Envelope and the SMI provides a more robust approach to identifying potential trend reversals compared to using either indicator in isolation. The Nadaraya-Watson Envelope excels at identifying potential areas where the price is overextended relative to its recent history. However, relying solely on the envelope can lead to false signals, especially in choppy or volatile markets. By incorporating the SMI as a confirmation tool, we add a momentum filter that helps to validate the potential reversals signaled by the envelope. The higher timeframe SMI further helps to filter out noise and focus on more significant shifts in momentum. The ATR-based bands add a dynamic element to the entry and exit points, adapting to the current market volatility. This mashup aims to leverage the strengths of each indicator to create a more reliable trading strategy.
Uptrick: Smart BoundariesThis script is an indicator that combines the RSI (Relative Strength Index) and Bollinger Bands to highlight potential points where price momentum and volatility may both be at extreme levels. Below is a detailed explanation of its components, how it calculates signals, and why these two indicators have been merged into one tool. This script is intended solely for educational purposes and for traders who want to explore the combined use of momentum and volatility measures. Please remember that no single indicator guarantees profitable results.
Purpose of This Script
This script is designed to serve as a concise, all-in-one tool for traders seeking to track both momentum and volatility extremes in real time. By overlaying RSI signals with Bollinger Band boundaries, it helps users quickly identify points on a chart where price movement may be highly stretched. The goal is to offer a clearer snapshot of potential overbought or oversold conditions without requiring two separate indicators. Additionally, its optional pyramiding feature enables users to manage how many times they initiate trades when signals repeat in the same direction. Through these combined functions, the script aims to streamline technical analysis by consolidating two popular measures—momentum via RSI and volatility via Bollinger Bands—into a single, manageable interface.
1. Why Combine RSI and Bollinger Bands
• RSI (Relative Strength Index): This is a momentum oscillator that measures the speed and magnitude of recent price changes. It typically ranges between 0 and 100. Traders often watch for RSI crossing into “overbought” or “oversold” levels because it may indicate a potential shift in momentum.
• Bollinger Bands: These bands are plotted around a moving average, using a standard deviation multiplier to create an upper and lower boundary. They help illustrate how volatile the price has been relative to its recent average. When price moves outside these boundaries, some traders see it as a sign the price may be overstretched and could revert closer to the average.
Combining these two can be useful because it blends two different perspectives on market movement. RSI attempts to identify momentum extremes, while Bollinger Bands track volatility extremes. By looking for moments when both conditions agree, the script tries to highlight points where price might be unusually stretched in terms of both momentum and volatility.
2. How Signals Are Generated
• Buy Condition:
- RSI dips below a specified “oversold” level (for example, 30 by default).
- Price closes below the lower Bollinger Band.
When these occur together, the script draws a label indicating a potential bullish opportunity. The underlying reasoning is that momentum (RSI) suggests a stronger-than-usual sell-off, and price is also stretched below the lower Bollinger Band.
• Sell Condition:
- RSI rises above a specified “overbought” level (for example, 70 by default).
- Price closes above the upper Bollinger Band.
When these occur together, a label is plotted for a potential bearish opportunity. The rationale is that momentum (RSI) may be overheated, and the price is trading outside the top of its volatility range.
3. Pyramiding Logic and Trade Count Management
• Pyramiding refers to taking multiple positions in the same direction when signals keep firing. While some traders prefer just one position per signal, others like to scale into a trade if the market keeps pushing in their favor.
• This script uses variables that keep track of how many recent buy or sell signals have fired. If the count reaches a user-defined maximum, no more signals of that type will trigger additional labels. This protects traders from over-committing to one direction if the market conditions remain “extreme” for a prolonged period.
• If you disable the pyramiding feature, the script will only plot one label per side until the condition resets (i.e., until RSI and price conditions are no longer met).
4. Labels and Visual Feedback
• Whenever a buy or sell condition appears, the script plots a label directly on the chart:
- Buy labels under the price bar.
- Sell labels above the price bar.
These labels make it easier to review where both RSI and Bollinger Band conditions align. It can be helpful for visually scanning the chart to see if the signals show any patterns related to market reversals or trend continuations.
• The Bollinger Bands themselves are plotted so traders can see when the price is approaching or exceeding the upper or lower band. Watching the RSI and Bollinger Band plots simultaneously can give traders more context for each signal.
5. Originality and Usefulness
This script provides a distinct approach by merging two well-established concepts—RSI and Bollinger Bands—within a single framework, complemented by optional pyramiding controls. Rather than using each indicator separately, it attempts to uncover moments when momentum signals from RSI align with volatility extremes highlighted by Bollinger Bands. This combined perspective can aid in spotting areas of possible overextension in price. Additionally, the built-in pyramiding mechanism offers a method to manage multiple signals in the same direction, allowing users to adjust how aggressively they scale into trades. By integrating these elements together, the script aims to deliver a tool that caters to diverse trading styles while remaining straightforward to configure and interpret.
6. How to Use the Indicator
• Configure the Inputs:
- RSI Length (the lookback period used for the RSI calculation).
- RSI Overbought and Oversold Levels.
- Bollinger Bands Length and Multiplier (defines the moving average period and the degree of deviation).
- Option to reduce pyramiding.
• Set Alerts (Optional):
- You can create TradingView alerts for when these conditions occur, so you do not have to monitor the chart constantly. Choose the buy or sell alert conditions in your alert settings.
• Integration in a Trading Plan:
- This script alone is not a complete trading system. Consider combining it with other forms of analysis, such as support and resistance, volume profiles, or candlestick patterns. Thorough research, testing on historical data, and risk management are always recommended.
7. No Performance Guarantees
• This script does not promise any specific trading results. It is crucial to remember that no single indicator can accurately predict future market movements all the time. The script simply tries to highlight moments when two well-known indicators both point to an extreme condition.
• Actual trading decisions should factor in a range of market information, including personal risk tolerance and broader market conditions.
8. Purpose and Limitations
• Purpose:
- Provide a combined view of momentum (RSI) and volatility (Bollinger Bands) in a single script.
- Assist in spotting times when price may be at an extreme.
- Offer a configurable system for labeling potential buy or sell points based on these extremes.
• Limitations:
- Overbought and oversold conditions can persist for an extended period in trending markets.
- Bollinger Band breakouts do not always result in immediate reversals. Sometimes price keeps moving in the same direction.
- The script does not include a built-in exit strategy or risk management rules. Traders must handle these themselves.
Additional Disclosures
This script is published open-source and does not rely on any external or private libraries. It does not use lookahead methods or repaint signals; all calculations are performed on the current bar without referencing future data. Furthermore, the script is designed for standard candlestick or bar charts rather than non-standard chart types (e.g., Heikin Ashi, Renko). Traders should keep in mind that while the script can help locate potential momentum and volatility extremes, it does not include an exit strategy or account for factors like slippage or commission. All code comes from built-in Pine Script functions and standard formulas for RSI and Bollinger Bands. Anyone reviewing or modifying this script should exercise caution and incorporate proper risk management when applying it to their own trading.
Calculation Details
The script computes RSI by examining a user-defined number of prior bars (the RSI Length) and determining the average of up-moves relative to the average of down-moves over that period. This ratio is then scaled to a 0–100 range, so lower values typically indicate stronger downward momentum, while higher values suggest stronger upward momentum. In parallel, Bollinger Bands are generated by first calculating a simple moving average (SMA) of the closing price for the user-specified length. The script then measures the standard deviation of closing prices over the same period and multiplies it by the chosen factor (the Bollinger Bands Multiplier) to form the upper and lower boundaries around the SMA. These two measures are checked in tandem: if the RSI dips below a certain oversold threshold and price trades below the lower Bollinger Band, a condition is met that may imply a strong short-term sell-off; similarly, if the RSI surpasses the overbought threshold and price rises above the upper Band, it may indicate an overextended move to the upside. The pyramiding counters track how many of these signals occur in sequence, preventing excessive stacking of labels on the chart if conditions remain extreme for multiple bars.
Conclusion
This indicator aims to provide a more complete view of potential market extremes by overlaying the RSI’s momentum readings on top of Bollinger Band volatility signals. By doing so, it attempts to help traders see when both indicators suggest that the market might be oversold or overbought. The optional reduced pyramiding logic further refines how many signals appear, giving users the choice of a single entry or multiple scaling entries. It does not claim any guaranteed success or predictive power, but rather serves as a tool for those wanting to explore this combined approach. Always be cautious and consider multiple factors before placing any trades.
Price Changes Relative to Previous CloseThis script displays the price values in percentages (open, high, low, and close) of the current bars relative to the previous bar's close. This helps visualize the amplitude of price movements. Depending on the user's choice, the display can be in the form of candles or bars.
Main steps of the script
Retrieves the previous bar's closing price.
Calculates the percentage changes in the open, high, low, and close prices of the current bar relative to the previous bar's close.
Sets the colors for bullish (green) and bearish (red) candles/bars.
Allows the user to choose the display type (candles or bars).
Displays the candles or bars on the chart.
Creates arrays to store the highs and lows of the last 252 bars and filters them based on the current bar's close.
Calculates the average values of the highs and lows for the filtered bars and displays them on the chart.
Изменение цен относительно предыдущего закрытия
Этот скрипт отображает значения цен в процентах (открытие, высокие, низкие и закрытие) текущих баров относительно закрытия предыдущего бара. Это помогает визуализировать амплитуду движений цен. В зависимости от выбора пользователя, отображение может быть в виде свечей или баров.
Основные шаги скрипта
Получает цену закрытия предыдущего бара.
Вычисляет процентные изменения открытой, высокой, низкой и закрытой цен текущего бара относительно закрытия предыдущего бара.
Настраивает цвета для бычьих (зелёных) и медвежьих (красных) свечей/баров.
Позволяет пользователю выбирать тип отображения (свечи или бары).
Отображает свечи или бары на графике.
Создаёт массивы для хранения максимумов и минимумов за последние 252 бара и фильтрует их в зависимости от закрытия текущего бара.
Вычисляет средние значения максимумов и минимумов для отфильтрованных баров и отображает их на графике.
Range PolarityDescription:
This indicator is a "Rate of Change" style oscillator designed to measure market dynamics through the lens of price ranges. By utilizing the true range in conjunction with high and low separation, this script produces two distinct oscillators: one for positive price shifts and one for negative price shifts.
Key Features:
High/Low Isolation:
The script calculates the relative movement of upwards and downwards price movements over a user-defined period. This separation provides a nuanced view of market behavior, offering two separate signals for comparison.
Dynamic Transform Smoothing:
A smoothing transform is applied to the signals, ensuring better outlier handling while maintaining sensitivity to price extremes. This makes the oscillator especially suited for identifying overbought and oversold conditions.
Zero-Centered:
The zero line acts as a "gravity point," where shifts away or toward zero indicate market momentum. Signal crosses or reversals from extreme zones can signal potential entry or exit points.
Outlier Identification:
Unlike traditional ATR based strategies (e.g., Keltner Channels ), this indicator isolates high and low ranges, creating a more granular view of market extremes. These measurements can help identify shifts from the outlying positions and reversal opportunities.
Visual Enhancements:
Multiple layers enhance the visual distinction of the positive and negative transformations. Horizontal lines at key thresholds provide visual reference for overbought, oversold, and equilibrium zones.
How to Use:
Primary signals are shifts from outlying positions or a positive/negative cross. An extreme reading itself can reveal an incoming reversal when calibrated with other indicators or compared with higher timeframes. Pairing "Range Polarity" with volume and momentum can create a comprehensive strategy.
In conclusion, be aware the base length controls the window for high/low contributions while the transform smoothing enhances the raw data through normalization within a tempered range to filter out insignificant fluctuations.
Merry Christmas to all and have a Happy New Year!
Multi-Feature IndicatorThe Multi-Feature Indicator combines three popular technical analysis tools — RSI, Moving Averages (MA), and MACD — into a single indicator to provide unified buy and sell signals. This script is designed for traders who want to filter out noise and focus on signals confirmed by multiple criteria.
Features:
RSI (Relative Strength Index):
Measures momentum and identifies overbought (70) and oversold (30) conditions.
A signal is triggered when RSI crosses these thresholds.
Moving Averages (MA):
Uses a short-term moving average (default: 9 periods) and a long-term moving average (default: 21 periods).
Buy signals occur when the short-term MA crosses above the long-term MA, indicating an uptrend.
Sell signals occur when the short-term MA crosses below the long-term MA, indicating a downtrend.
MACD (Moving Average Convergence Divergence):
A trend-following momentum indicator that shows the relationship between two moving averages of an asset's price.
Signals are based on the crossover of the MACD line and its signal line.
Unified Buy and Sell Signals:
Buy Signal: Triggered when:
RSI crosses above 30 (leaving oversold territory).
Short-term MA crosses above the long-term MA.
MACD line crosses above the signal line.
Sell Signal: Triggered when:
RSI crosses below 70 (leaving overbought territory).
Short-term MA crosses below the long-term MA.
MACD line crosses below the signal line.
Visualization:
The indicator plots the short-term and long-term moving averages on the price chart.
Green "BUY" labels appear below price bars when all buy conditions are met.
Red "SELL" labels appear above price bars when all sell conditions are met.
Parameters:
RSI Length: Default is 14. This controls the sensitivity of the RSI.
Short MA Length: Default is 9. This determines the short-term trend.
Long MA Length: Default is 21. This determines the long-term trend.
Use Case:
The Multi-Feature Indicator is ideal for traders seeking higher confirmation before entering or exiting trades. By combining momentum (RSI), trend (MA), and momentum shifts (MACD), it reduces false signals and enhances decision-making.
How to Use:
Apply the indicator to your chart in TradingView.
Look for "BUY" or "SELL" signals, which appear when all conditions align.
Use this tool in conjunction with other analysis techniques for best results.
Note:
The default settings are suitable for many assets, but you may need to adjust them for different timeframes or market conditions.
This indicator is meant to assist in trading decisions and should not be used as the sole basis for trading.
Christmas RSI with Jingle Bell [TrendX_]Jingle Bell 🔔, Jingle Bell 🔔, Jingle all the chart 📈 Merry Christmas Tradingview Community !!!
Introducing the Jingle Bell Indicator, a festive Pine Script creation designed to spread joy and luck to your trading endeavors. The Bow will change colors based on the reaction of RSI with the 50 level. Add a Jingle Bell drawing to your charts and celebrate the most wonderful time of the year. Turn on alert for today to get my Merry Christmas wish.
This indicator is my gift to the Tradingview community, designed to bring a touch of luck to your trades. Hope this Jingle Bell will bring some joy and festive vibes to your trading experience.
MERCURY-PRO by DrAbhiramSivprasd“MERCURYPRO”
The MERCURYPRO indicator is a custom technical analysis tool designed to provide dynamic trend signals based on a combination of the Chande Momentum Oscillator (CMO) and Standard Deviation (StDev). This indicator helps traders identify trend reversals or continuation based on the behavior of the price and momentum.
Key Features:
• Source Input: The indicator works with any price data, with the default set to close, which represents the closing price of each bar.
• Length Input: A period (default value 9) is used to determine the calculation window for the Chande Momentum Oscillator and Standard Deviation.
• Fixed CMO Length Option: Users can choose whether to use a fixed CMO length of 9 or adjust the length to the user-defined pds value.
• Calculation Method: The indicator allows switching between using the Chande Momentum Oscillator (CMO) or Standard Deviation (StDev) for the momentum calculation.
• Alpha: The smoothing factor used in the calculation of the MERCURYPRO value, which is based on the length of the period input (pds).
Core Calculation:
1. Momentum Calculation: The script calculates the momentum by determining the change in the source price (e.g., close) from one period to the next.
2. Chande Momentum Oscillator (CMO): The positive and negative momentum components are calculated and then summed over the specified period. This value is normalized to a percentage to determine the momentum strength.
3. K Value Calculation: The script selects either the CMO or Standard Deviation (depending on the user setting) to calculate the k value, which represents the dynamic price momentum.
4. MERCURYPRO Line: The final output of the indicator, MERCURYPRO, is computed using a weighted average of the k value and the previous MERCURYPRO value. The line is smoothed using the Alpha parameter.
Plot and Signal Generation:
• Color Coding: The line is color-coded based on the direction of MERCURYPRO:
• Blue: The trend is bullish (MERCURYPRO is rising).
• Maroon: The trend is bearish (MERCURYPRO is falling).
• Default Blue: Neutral or sideways market conditions.
• Plotting: The MERCURYPRO line is plotted with varying colors depending on the trend direction.
Alerts:
• Color Change Alert: The indicator has an alert condition based on when the MERCURYPRO line crosses its previous value. This helps traders stay informed about potential trend reversals or continuation signals.
Use Case:
• Trend Confirmation: Traders can use the MERCURYPRO indicator to identify whether the market is in a strong trend or not.
• Signal for Entries/Exits: The color change and crossovers of the MERCURYPRO line can be used as entry or exit signals, depending on the trader’s strategy.
Overall Purpose:
The MERCURYPRO indicator combines momentum analysis with smoothing techniques to offer a dynamic, responsive tool for identifying market trends and potential reversals. It is particularly useful in conjunction with other technical indicators to provide confirmation for trade setups.
How to Use the MERCURYPRO Indicator:
The MERCURYPRO indicator is designed to help traders identify trend reversals and market conditions. Here are a few ways you can use it:
1. Trend Confirmation (Bullish or Bearish)
• Bullish Trend: When the MERCURYPRO line is colored Blue, it indicates a rising trend, suggesting that the market is bullish.
• Action: You can consider entering long positions when the line turns blue, or holding your existing positions if you’re already long.
• Bearish Trend: When the MERCURYPRO line is colored Maroon, it signals a downward trend, indicating a bearish market.
• Action: You may consider entering short positions or closing any long positions when the line turns maroon.
2. Trend Reversal Alerts
• Color Change: The MERCURYPRO indicator changes color when there’s a trend reversal. The alert condition triggers when the MERCURYPRO crosses above or below its previous value, signaling a potential shift in the trend.
• Action: You can use this alert as a signal to monitor potential entry or exit points for trades. For example, a crossover from maroon to blue could indicate a potential buying opportunity, while a crossover from blue to maroon could suggest a selling opportunity.
3. Use with Other Indicators for Confirmation
• While the MERCURYPRO provides valuable trend insights, it’s often more effective when used in combination with other indicators like RSI (Relative Strength Index), MACD, or moving averages to confirm signals.
• Example: If MERCURYPRO turns blue and RSI is above 50, it may signal a strong bullish trend, enhancing the confidence to enter a long trade.
4. Divergence
• Watch for divergence between the MERCURYPRO line and the price chart:
• Bullish Divergence: If the price makes new lows while MERCURYPRO is showing higher lows, it suggests a potential bullish reversal.
• Bearish Divergence: If the price makes new highs while MERCURYPRO is showing lower highs, it suggests a potential bearish reversal.
Example of Use:
• Example 1: If the MERCURYPRO line changes from maroon to blue, you might enter a long position. After the MERCURYPRO line turns blue, use an alert to monitor the price action. If other indicators (like RSI) also suggest strength, your confidence in the trade will increase.
• Example 2: If the MERCURYPRO line shifts from blue to maroon, it could be a signal to close long positions and consider shorting the market if other conditions align (e.g., moving averages also turn bearish).
Warning for Using the MERCURYPRO Indicator:
1. Lagging Indicator:
• The MERCURYPRO is a lagging indicator, meaning it responds to price changes after they have occurred. This may delay entry and exit signals, and it’s crucial to combine it with other leading indicators to get timely information.
2. False Signals in Range-bound Markets:
• In choppy or sideways markets, the MERCURYPRO line can produce false signals, flipping between blue and maroon frequently without showing a clear trend. It’s important to avoid trading based on these false signals when the market is not trending.
3. Overreliance on One Indicator:
• Relying solely on MERCURYPRO can be risky. Always confirm signals with additional tools like volume analysis, price action, or other indicators to increase the accuracy of your trades.
4. Market Conditions Matter:
• The indicator may work well in trending markets, but in highly volatile or news-driven environments, it may provide misleading signals. Ensure that you take market fundamentals and external news events into consideration before acting on the indicator’s signals.
5. Risk Management:
• As with any technical indicator, MERCURYPRO is not infallible. Always use appropriate risk management techniques such as stop-loss orders to protect your capital. Never risk more than you can afford to lose on a trade.
6. Backtest First:
• Before implementing MERCURYPRO in live trading, make sure to backtest it on historical data. Test the strategy with various market conditions to assess its effectiveness and identify any potential weaknesses.
By considering these guidelines and warnings, you can use the MERCURYPRO indicator more effectively and mitigate potential risks in your trading strategy.
Enhanced Price Z-Score OscillatorThe Enhanced Price Z-Score Oscillator by tkarolak is a powerful tool that transforms raw price data into an easy-to-understand statistical visualization using Z-Score-derived candlesticks. Simply put, it shows how far prices stray from their average in terms of standard deviations (Z-Scores), helping traders identify when prices are unusually high (overbought) or unusually low (oversold).
The indicator’s default feature displays Z-Score Candlesticks, where each candle reflects the statistical “distance” of the open, high, low, and close prices from their average. This creates a visual map of market extremes and potential reversal points. For added flexibility, you can also switch to Z-Score line plots based on either Close prices or OHLC4 averages.
With clear threshold lines (±2σ and ±3σ) marking moderate and extreme price deviations, and color-coded zones to highlight overbought and oversold areas, the oscillator simplifies complex statistical concepts into actionable trading insights.
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.
RSI Divergence + Sweep + Signal + Alerts Toolkit [TrendX_]The RSI Toolkit is a powerful set of tools designed to enhance the functionality of the traditional Relative Strength Index (RSI) indicator. By integrating advanced features such as Moving Averages, Divergences, and Sweeps, it helps traders identify key market dynamics, potential reversals, and newly-approach trading stragies.
The toolkit expands on standard RSI usage by incorporating features from smart money concepts (Just try to be creative 🤣 Hope you like it), providing a deeper understanding of momentum, liquidity sweeps, and trend reversals. It is suitable for RSI traders who want to make more informed and effective trading decisions.
💎 FEATURES
RSI Moving Average
The RSI Moving Average (RSI MA) is the moving average of the RSI itself. It can be customized to use various types of moving averages, including Simple Moving Average (SMA), Exponential Moving Average (EMA), Relative Moving Average (RMA), and Volume-Weighted Moving Average (VWMA).
The RSI MA smooths out the RSI fluctuations, making it easier to identify trends and crossovers. It helps traders spot momentum shifts and potential entry/exit points by observing when the RSI crosses above or below its moving average.
RSI Divergence
RSI Divergence identifies discrepancies between price action and RSI momentum. There are two types of divergences: Regular Divergence - Indicates a potential trend reversal; Hidden Divergence - Suggests the continuation of the current trend.
Divergence is a critical signal for spotting weakness or strength in a trend. Regular divergence highlights potential trend reversals, while hidden divergence confirms trend continuation, offering traders valuable insights into market momentum and possible trade setups.
RSI Sweep
RSI Sweep detects moments when the RSI removes liquidity from a trend structure by sweeping above or below the price at key momentum level crossing. These sweeps are overlaid on the RSI chart for easier visualized.
RSI Sweeps are significant because they indicate potential turning points in the market. When RSI sweeps occur: In an uptrend - they suggest buyers' momentum has peaked, possibly leading to a reversal; In a downtrend - they indicate sellers’ momentum has peaked, also hinting at a reversal.
(Note: This feature incorporates Liquidity Sweep concepts from Smart Money Concepts into RSI analysis, helping RSI traders identify areas where liquidity has been removed, which often precedes a trend reversal)
🔎 BREAKDOWN
RSI Moving Average
How MA created: The RSI value is calculated first using the standard RSI formula. The MA is then applied to the RSI values using the trader’s chosen type of MA (SMA, EMA, RMA, or VWMA). The flexibility to choose the type of MA allows traders to adjust the smoothing effect based on their trading style.
Why use MA: RSI by itself can be noisy and difficult to interpret in volatile markets. Applying moving average would provide a smoother, more reliable view of RSI trends.
RSI Divergence
How Regular Divergence created: Regular Divergence is detected when price forms HIGHER highs while RSI forms LOWER highs (bearish divergence) or when price forms LOWER lows while RSI forms HIGHER lows (bullish divergence).
How Hidden Divergence created: Hidden Divergence is identified when price forms HIGHER lows while RSI forms LOWER lows (bullish hidden divergence) or when price forms LOWER highs while RSI forms HIGHER highs (bearish hidden divergence).
Why use Divergence: Divergences provide early warning signals of a potential trend change. Regular divergence helps traders anticipate reversals, while hidden divergence supports trend continuation, enabling traders to align their trades with market momentum.
RSI Sweep
How Sweep created: Trend Structure Shift are identified based on the RSI crossing key momentum level of 50. To track these sweeps, the indicator pinpoints moments when liquidity is removed from the Trend Structure Shift. This is a direct application of Liquidity Sweep concepts used in Smart Money theories, adapted to RSI.
Why use Sweep: RSI Sweeps are created to help traders detect potential trend reversals. By identifying areas where momentum has exhausted during a certain trend direction, the indicator highlights opportunities for traders to enter trades early in a reversal or continuation phase.
⚙️ USAGES
Divergence + Sweep
This is an example of combining Devergence & Sweep in BTCUSDT (1 hour)
Wait for a divergence (regular or hidden) to form on the RSI. After the divergence is complete, look for a sweep to occur. A potential entry might be formed at the end of the sweep.
Divergences indicate a potential trend change, but confirmation is required to ensure the setup is valid. The RSI Sweep provides that confirmation by signaling a liquidity event, increasing the likelihood of a successful trade.
Sweep + MA Cross
This is an example of combining Devergence & Sweep in BTCUSDT (1 hour)
Wait for an RSI Sweep to form then a potential entry might be formed when the RSI crosses its MA.
The RSI Sweep highlights a potential turning point in the market. The MA cross serves as additional confirmation that momentum has shifted, providing a more reliable and more potential entry signal for trend continuations.
DISCLAIMER
This indicator is not financial advice, it can only help traders make better decisions. There are many factors and uncertainties that can affect the outcome of any endeavor, and no one can guarantee or predict with certainty what will occur. Therefore, one should always exercise caution and judgment when making decisions based on past performance.
ATR Oscillator with Dots and Dynamic Zero LineWhat It Is
The ATR Oscillator with Dots and Dynamic Zero Line is a custom indicator based on the Average True Range (ATR), designed to provide traders with enhanced insights into market volatility and directional bias. Unlike traditional ATR oscillators that plot continuous lines, this version uses distinct dots to display ATR values and includes a dynamic zero line that changes color based on market direction (uptrend, downtrend, or consolidation).
How It Works
ATR Calculation:
The indicator calculates the Average True Range over a user-defined period (default: 14 bars). ATR measures market volatility by considering the range between the high, low, and close of each bar.
Dots for ATR Values:
Instead of plotting ATR values as a continuous line, the indicator represents each value as an individual blue dot. This format highlights changes in volatility without visually connecting them, helping to avoid false trends and clutter.
Dynamic Zero Line:
A horizontal zero line provides additional directional context. The line changes color dynamically:
Green: Indicates an uptrend (price is consistently closing higher over consecutive bars).
Red: Indicates a downtrend (price is consistently closing lower over consecutive bars).
Gray: Indicates market consolidation or sideways movement (no clear trend in price).
The thickness and step-like style of the zero line make it visually prominent, enabling quick interpretation of market direction.
What It Does
Visualizes Market Volatility:
By plotting ATR values as dots, the oscillator emphasizes periods of heightened or reduced market activity, helping traders anticipate breakout opportunities or avoid low-volatility zones.
Provides Trend Context:
The dynamic zero line gives traders a clear signal of the prevailing market trend (uptrend, downtrend, or consolidation), which can be used to align trading strategies with the broader market context.
Avoids Misleading Trends:
Unlike traditional ATR oscillators that use continuous lines, this version eliminates visual artifacts caused by noise, such as false trends during consolidation periods.
Simplifies Interpretation:
The combination of ATR dots and a color-coded zero line creates a straightforward and intuitive tool for assessing both volatility and market direction.
Why It’s More Useful Than a Traditional ATR Oscillator
Enhanced Visibility:
The use of dots instead of a continuous line makes it easier to spot discrete changes in ATR values, avoiding visual clutter and false impressions of smooth trends.
Dynamic Market Context:
Traditional ATR oscillators only measure volatility, offering no indication of market direction. The dynamic zero line in this oscillator adds valuable directional context, helping traders align their strategies with the trend.
Better for Range-Bound Markets:
The zero line’s color-changing feature highlights consolidation periods, enabling traders to identify and avoid trading during sideways, low-volatility conditions where false signals are common.
Quick Decision-Making:
With clear visual cues (dots and color-coded lines), traders can quickly assess market conditions without needing to analyze multiple charts or indicators.
Improved Confluence:
The oscillator’s signals can easily be combined with other tools like VWAP, Volume Profile, or Order Flow indicators for more confident trade decisions.
When to Use It
Trending Markets:
Use the dynamic zero line to confirm the market’s direction and align trades accordingly.
Breakout Opportunities:
Look for periods of increasing ATR (dots moving higher) to anticipate high-volatility breakout scenarios.
Avoiding Noise:
During consolidation (gray zero line), this oscillator warns traders to wait for clearer signals before entering trades.
RSI BB StdDev SignalOverview
The RSI BB StdDev Signal Indicator is a powerful tool designed to enhance your trading strategy by combining the Relative Strength Index (RSI) with Bollinger Bands (BB). This unique combination allows traders to identify potential buy and sell signals more accurately by leveraging the strengths of both indicators. The RSI helps in identifying overbought and oversold conditions, while the Bollinger Bands provide a dynamic range to assess volatility and potential price reversals.
Key Features
— RSI Calculation: The indicator calculates the RSI based on user-defined parameters, allowing for customization to fit different trading styles.
— Bollinger Bands Integration: The RSI values are smoothed using a moving average, and Bollinger Bands are applied to this smoothed RSI to generate buy and sell signals.
— Divergence Detection: The indicator includes an optional feature to detect and alert on bullish and bearish divergences between the RSI and price action.
— Customizable Alerts: Users can set up alerts for buy and sell signals, as well as for divergences, ensuring they never miss a trading opportunity.
— Visual Aids: The indicator plots the RSI, Bollinger Bands, and signals on the chart, making it easy to visualize and interpret the data.
How It Works
1. RSI Calculation:
— The RSI is calculated using the change in the source input (default is close price) over a specified period.
— The RSI values are then plotted on the chart with customizable overbought and oversold levels.
2. Smoothing and Bollinger Bands:
— The RSI values are smoothed using a moving average (SMA, EMA, SMMA, WMA, VWMA) selected by the user.
— Bollinger Bands are applied to the smoothed RSI to create dynamic upper and lower bands.
3. Signal Generation:
—Buy signals are generated when the RSI crosses above the lower Bollinger Band.
—Sell signals are generated when the RSI crosses below the upper Bollinger Band.
—These signals are plotted on both the RSI pane and the main price chart for easy reference.
4. Divergence Detection:
— The indicator can detect and alert on regular bullish and bearish divergences between the RSI and price action.
— Bullish divergences occur when the price makes a lower low, but the RSI makes a higher low.
— Bearish divergences occur when the price makes a higher high, but the RSI makes a lower high.
Usage
1. Setting Up:
— Add the indicator to your TradingView chart.
— Customize the RSI length, source, and other parameters in the settings panel.
— Enable or disable the divergence detection based on your trading strategy.
2. Interpreting Signals:
— Use the buy and sell signals generated by the RSI crossing the Bollinger Bands as potential entry and exit points.
— Pay attention to divergences for additional confirmation of trend reversals.
3. Alerts:
— Set up alerts for buy and sell signals to receive notifications in real-time.
— Enable divergence alerts to be notified of potential trend reversals.
Conclusion
The RSI BB StdDev Signal Indicator is a comprehensive tool that combines the strengths of the RSI and Bollinger Bands to provide traders with more accurate and reliable signals. Whether you are a beginner or an experienced trader, this indicator can enhance your trading strategy by offering clear visual cues and customizable alerts.
Note
This indicator is provided with open-source code, allowing users to understand its logic and customize it further if needed. The detailed description and customizable settings ensure that traders of all levels can benefit from its unique features.
PROWIN STUDY ALTCOIN INDEXPROWIN STUDY ALTCOIN INDEX
This indicator tracks the performance of key altcoin dominance indices (BTC.D, ETH.D, USDT.D, USDC.D, and DAI.D) by analyzing their closing prices. It calculates an Exponential Moving Average (EMA) to highlight the overall trend of the altcoin market. Key horizontal levels representing support (limit up), resistance (limit down), and a central line are drawn to help identify potential price action zones. This indicator is designed for analysis on the others.d asset in a daily timeframe, providing insights into market movements and altcoin dominance shifts.
