Golden ZoneIntroducing the "Golden Zone" indicator, a powerful tool that simplifies the Fibonacci indicator by creating a clear Golden Zone to identify potential future price movements. The Golden Zone is a supply or demand zone that corresponds to the 61.8% and 50% Fibonacci retracement levels. These levels are important because they often mark zones where the price reacts, making it an essential area for traders to watch.
The script plots the Fibonacci levels in the background, enabling traders to identify potential support and resistance levels quickly. The Golden Zone is highlighted with a yellow filled area, making it easy to spot on the chart. Traders use this zone to identify areas where the stock price may react, either bouncing off the support level or encountering resistance at the resistance level.
For example, if a stock price is moving up and reaches the Golden Zone, a trader may look for signs of resistance and consider selling the stock if the price begins to move back down. Conversely, if a stock price is moving down and reaches the Golden Zone, a trader may look for signs of support and consider buying the stock if the price begins to move back up.
The "Golden Zone" indicator is highly versatile and can be used in all markets, whether you are a swing trader or a day trader. It can be combined with other strategies, such as an EMA crossover strategy or price action, or as an area of confluence.
In summary, the "Golden Zone" indicator is a must-have tool for traders looking to identify potential price movements and locate key support and resistance levels. Its user-friendly inputs and clear display make it a valuable addition to any trading arsenal.
So, the "Golden Zone" indicator is like a magic tool that helps people who trade in the stock market find valuable things to buy or sell. And with its ability to identify key support and resistance levels, it can help traders make better-informed decisions when buying or selling stocks.
I hope you like it!
在腳本中搜尋"华泰柏瑞中证港股通高股息投资+ETF+最新持仓"
Tape (Time and Sales)OVERVIEW
This indicator is a synthesized "Tape" (aka. Time and Sales) from real time market data. It's specifically designed to be performant, expediting trading insights and decisions.
The table contains color-coded price action, volume size, and a timestamp data for each chart update. Because chart updates are independent of exchange orders, 1 chart update may combine more than 1 exchange and/or order. Even so, you're able to see very small and fast order flow changes, made possible by measuring real time volume differentials, and correlating them with price action.
Real time volume differentials are required for this indicator to be most useful. This is not ideal for historical analysis or TradingViews Replay feature.
INPUTS
You can can configure:
Table Position and Text Size
The Timestamp (visibility, format, timezone)
The number of lines to print
Volume Parameters (minimum size, large sizes, decimal precision)
Highlighting and Enlarging large sized prints
All the colors
DEV NOTES
This script illustrates:
The complimentary nature of loops and arrays
A method for iterative table management
Zero Lag Moving Average with Gaussian weightsIntroduction
The Zero Lag Moving Average (ZLMA) is a powerful technical indicator that aims to eliminate the lag inherent in traditional moving averages. This post provides a comprehensive exploration of the ZLMA with Gaussian Weights (GWMA) indicator, discussing the concepts, the calculations, and its application in trading.
Concepts
Zero Lag Moving Average (ZLMA): A ZLMA is an advanced moving average designed to reduce the lag in price movements associated with conventional moving averages. This reduction in lag enables traders to make more informed decisions based on the most recent price data.
Gaussian Weights: Gaussian weights are derived from the Gaussian function, which is a mathematical function used to calculate probabilities in a normal distribution. The Gaussian function is smooth, symmetric, and has a bell-shaped curve. In this context, Gaussian weights are used to calculate the weighted average of a series of data points.
Why Gaussian Weights are Beneficial
Gaussian Weights offer several advantages in comparison to traditional moving averages. One of the main reasons for using Gaussian Weights is to address the issue of lag, which is commonly associated with simple and exponential moving averages. By reducing lag, traders can make more informed decisions based on up-to-date information.
Another advantage of Gaussian Weights is their mathematical foundation, which is rooted in the Gaussian function. This function describes the normal distribution in probability theory and statistics. The smooth and symmetric bell-shaped curve of Gaussian Weights enables a more refined approach to handling data points, resulting in a more responsive and accurate moving average.
While exponential moving averages (EMAs) also assign more weight to recent data points, they can still exhibit some lag. Gaussian Weights, on the other hand, offer a smoother and more adaptive solution to different market conditions. By adjusting the smoothing period, traders can tailor the Gaussian Weights to their specific needs, making them a versatile tool for various trading strategies.
In summary, Gaussian Weights provide a valuable alternative to traditional moving averages due to their ability to reduce lag, their strong mathematical foundation, and their adaptability to different market conditions. These benefits make Gaussian Weights a worthwhile consideration for traders looking to enhance their trading strategies.
Calculations
The ZLMA with GWMA consists of two main calculations:
Gaussian Weight Calculation: The Gaussian weight for a given 'k' and 'smooth_per' is calculated using the standard deviation (sigma) and the exponent part of the Gaussian function.
Zero-Lag GWMA Calculation: The zero-lag GWMA is calculated using a source buffer, a Gaussian weighted moving average (gwma1), and an output array. The source buffer stores the input data, the gwma1 array stores the first Gaussian weighted moving average, and the output array stores the final zero-lag moving average.
Application in Trading
The ZLMA with GWMA indicator can be used to identify trends and potential entry/exit points in trading:
Trend Identification: When the ZLMA is above the price, it indicates a bearish trend, and when it is below the price, it indicates a bullish trend.
Entry/Exit Points: Traders can use crossovers between the ZLMA and price to identify potential entry and exit points. A long position could be taken when the price crosses above the ZLMA, and a short position could be taken when the price crosses below the ZLMA.
Conclusion
The Zero Lag Moving Average with Gaussian Weights is a powerful and versatile indicator that can be used in various trading strategies. By minimizing the lag associated with traditional moving averages, the ZLMA with GWMA provides traders with more accurate and timely information about price trends and potential trade opportunities.
Volume Weighted Pivot Point Moving Averages VPPMAAs traders and investors, we are constantly on the lookout for tools that can assist us in making informed decisions. While there are countless technical analysis tools available, sometimes even small, simple scripts can provide valuable insights. In this post, we will explore the Volume-Weighted Pivot Point Moving Average (PPMA) Indicator – a modest yet helpful script that could potentially enhance your trading experience.
Background
// © peacefulLizard50262
//@version=5
indicator("PPMA", overlay = true)
vppma(left, right)=>
signal = ta.change(ta.pivothigh(high, left, right)) or ta.change(ta.pivotlow(low, left, right))
var int count = na
var float sum = na
var float volume_sum = na
if not signal
count := nz(count ) + 1
sum := nz(sum ) + close * volume
volume_sum := nz(volume_sum ) + volume
else
count := na
sum := na
volume_sum := na
sum/volume_sum
left = input.int(50, "Pivot Left", 0)
plot(vppma(left, 0))
The Concept Behind PPMA Indicator
The Volume-Weighted Pivot Point Moving Average (PPMA) Indicator is a straightforward technical analysis tool that aims to help traders identify potential market turning points and trends. It does this by calculating a moving average based on price and volume data while considering pivot highs and pivot lows. The PPMA Indicator is designed to be more responsive than traditional moving averages by incorporating volume into its calculations.
Understanding the Script
The script is compatible with version 5 of the TradingView Pine Script language, and it features an overlay setting, allowing the indicator to be plotted directly onto the price chart. The customizable pivot left input enables traders to adjust the sensitivity of the pivot points.
The script first identifies pivot points, which are areas where the price changes direction. It then calculates the volume-weighted average price (VWAP) of each trading period between the pivot points. Finally, it plots the PPMA line on the chart, providing a visual representation of the volume-weighted average prices.
Using the PPMA Indicator
To use the PPMA Indicator, simply add the script to your TradingView chart. The indicator will plot the PPMA line directly onto the price chart. You can adjust the pivot left input to modify the sensitivity of the pivot points, depending on your preferred trading style.
When the PPMA line is trending upward, it may indicate a potential bullish trend. Conversely, a downward-trending PPMA line could suggest a bearish trend. The PPMA Indicator can be used in conjunction with other technical analysis tools to confirm potential trend changes and to establish entry or exit points for trades.
Conclusion
While the Volume-Weighted Pivot Point Moving Average (PPMA) Indicator may not be a game-changer, it is a modest yet helpful tool for traders looking to enhance their technical analysis. By incorporating volume into its calculations, the PPMA Indicator aims to provide more responsive signals compared to traditional moving averages. As with any trading tool, it is crucial to conduct your own analysis and combine multiple indicators before making any trading decisions.
Kalman RSIThis is a simplified version of Kalman RSI by onegreencandle.
Simplifications:
It shows the indicator for a single configurable length with a default of 14.
It does not color by region.
It allows selecting the source, with a default of close . The version by onegreencandle uses ohlc4 instead. Note that both versions also use high and low .
It uses the newer version (5) of Pine Script.
It sets bands at 85 and 15.
Aggregate Medians [wbburgin]This indicator recursively finds the average of all high/low medians under your chosen length. This can be very, very helpful for analyzing trends where a moving average or a normal median would produce a bunch of false signals.
Settings:
The "Length" setting is the maximum median that you want the algorithm to add into the sum. The "Start at Period" setting is the the minimum median that you want the algorithm to take into account. Starting at a higher period means that the faster, more sensitive medians of lower lengths are not included, and will smooth out your curve.
I haven't seen many recursive algorithms on TradingView so feel free to use this script as inspiration for any of your ideas. In theory, you can essentially replace the median function with any other function - a moving average, a supertrend, or anything else.
The start must be lower than the length, because this is a sum from the start to the length of all medians in between.
EMA + ATR Support and Resistance + Take Profit SignalThe 'EMA+ ATR Support Resistance Take Profit signal' indicator is a technical analysis tool designed to help traders identify potential support and resistance levels, using the Exponential Moving Average (EMA) and the Average True Range (ATR) indicators. This indicator not only tracks the EMA and ATR but also plots these levels as support and resistance lines, providing useful insights into potential buy and sell points.
The indicator allows you to set the lengths for both the EMA and ATR, with default values set to 20 and 14, respectively. Moreover, you can specify the multiplier for the ATR in the Support/Resistance (S/R) length setting, which defaults to 2. The line width for the plotted lines can also be adjusted according to your preference.
The EMA line in center is invisible by default but you can change that by going to the setting of the indicator. The support and resistance lines are plotted in green and red, respectively. When the price hits the support or resistance levels, the indicator provides a visual signal with a cross shape below or above the respective bars, in lime and red, respectively. If you do not need the take profit signals you can disable them in the setting.
How to Use:
1. Define the EMA and ATR lengths according to your trading strategy. Higher lengths will provide smoother lines but may also lag the current price action.
2. Set the S/R length to determine the distance of the support and resistance lines from the EMA line. Higher values will place these lines further away from the EMA.
3. Monitor the chart for instances when the price hits the support or resistance levels. This is indicated by a cross shape below (for support hit) or above (for resistance hit) the price bar. These points may be considered as potential take profit points or entry/exit points, depending on your strategy.
4. Use the indicator in conjunction with other tools and indicators to confirm signals and reduce the risk of false signals. So the assumption is you enter a trade using your other indicators but you can rely on this indicator to remind you to take profit if you are long by a red cross of the resistance line and if you are short reminds you by a green cross on the support line.
Disclaimer: This indicator should not be used as the sole determinant for any investment decision. Always conduct thorough research and consider multiple factors before trading.
SPY 4 Hour Swing TraderThe purpose of this script is to spot 4 hour pivots that indicate ~30 trading day swings. As VIX starts to drop options trading will get more boring and as we get back on the bull and can benefit from swing trading strategy. Swing trading doesn't make a whole lot of sense when VIX is above 28. Seems to get best results on 4 hour chart for this one. This indicator spots a go long opportunity when the 5 ema crosses the 13 ema on the 4 hour along with the RSI > 50 and the ADX > 20 and Stoichastic values (smoothed line < 80 or line < 90) and close > last candle close and the True Range < 6. It also spots uses a couple different means to determine when to exit the trade. Sell condition is primarily when the 13 ema crosses the 5 ema and the MACD line crosses below the signal line and the smoothed Stoichastic appears oversold (greater than 60) and slop of RSI < -.2. Stop Losses and Take Profits are configurable in Inputs along with ability to include short trades plus other MACD and Stoichastic settings. If a stop loss is encountered the trade will close. Also once twice the expected move is encountered partial profits will taken and stop losses and take profits will be re-established based on most recent close. Also a VIX above 28 will trigger any open positions to close. If trying to use this for something other than SPXL it is best to update stop losses and take profit percentages and check backtest results to ensure proper levels have been selected and the script gives satisfactory results.
SPY 1 Hour Swing TraderThe purpose of this script is to spot 1 hour pivots that indicate ~5 to 6 trading day swings. Results indicate that swings are held approximately 5 to 6 trading days on average, over the last 6 years. This indicator spots a go long opportunity when the 5 ema crosses the 13 ema on the 1 hour along with the RSI > 50. It also spots uses a couple different means to determine when to exit the trade. Sell condition is primarily when the 13 ema crosses the 5 ema and the MACD line crosses below the signal line and the smoothed Stoichastic appears oversold (greater than 60). Stop Losses and Take Profits are configurable in Inputs along with ability to include short trades plus other MACD and Stoichastic settings. If a stop loss is encountered the trade will close. Also once twice the expected move is encountered partial profits will taken and stop losses and take profits will be re-established based on most recent close. Once long trades are exited, short trades will be initiated if recent conditions appeared oversold and input option for short trading is enabled. If trying to use this for something other than SPXL it is best to update stop losses and take profit percentages and check backtest results to ensure proper levels have been selected and the script gives satisfactory results.
Put to Call Ratio CorrelationHello!
Excited to share this with the community!
This is actually a very simple indicator but actually usurpingly helpful, especially for those who trade indices such as SPX, IWM, QQQ, etc.
Before I get into the indicator itself, let me explain to you its development.
I have been interested in the use of option data to detect sentiment and potential reversals in the market. However, I found option data on its own is full of noise. Its very difficult if not impossible for a trader to make their own subjective assessment about how option data is reflecting market sentiment.
Generally speaking, put to call ratios generally range between 0.8 to 1.1 on average. Unless there is a dramatic pump in calls or puts causing an aggressive spike up to over this range, or fall below this range, its really difficult to make the subjective assessment about what is happening.
So what I thought about trying to do was, instead of looking directly at put to call ratio, why not see what happens when you perform a correlation analysis of the PTC ratio to the underlying stock.
So I tried this in pinescript, pulling for Tradingview's ticker PCC (Total Equity Put to Call Ratio) and using the ta.correlation function against whichever ticker I was looking at.
I played around with this idea a bit, pulled the data into excel and from this I found something interesting. When there is a very significant negative or positive correlation between PTC ratio and price movement, we see a reversal impending. In fact, a significant negative or positive correlation (defined as a R value of 0.8 or higher or -0.8 or lower) corresponded to a stock reversal about 92% of the time when data was pulled on a 5 minute timeframe on SPY.
But wait, what is a correlation?
If you are not already familiar, a correlation is simply a statistical relationship. It is defined with a Pearson R correlation value which ranges from 0 (no correlation) to 1 (significant positive correlation) and 0 to -1 (significant negative correlation).
So what does positive vs negative mean?
A significant positive correlation means the correlation is moving the same as the underlying. In the case of this indicator, if there is a significant positive correlation could mean the stock price is climbing at the same time as the PTC ratio.
Inversely, it could mean the stock price is falling as well as the PTC ratio.
A significant negative correlation means the correlation is moving in the opposite direction. So in this case, if the stock price is climbing and the PTC ratio is falling proportionately, we would see a significant negative correlation.
So how does this work in real life?
To answer this, let's get into the actual indicator!
In the image above, you will see the arrow pointing to an area of significant POSITIVE correlation.
The indicator will paint the bars on the actual chart purple (customizable of course) to signify this is an area of significant correlation.
So, in the above example this means that the PTC ratio is increase proportionately to the increase in the stock price in the SAME direction (Puts are going up proportionately to the stock price). Thus, we can make the assumption that the underlying sentiment is overwhelmingly BEARISH. Why? Because option trading activity is significantly proportionate to stock movement, meaning that there is consensus among the options being traded and the movement of the market itself.
And in the above example we will see, the stock does indeed end up selling:
In this case, IWM fell roughly 1 point from where there was bearish consensus in the market.
Let's use this same trading day and same example to show the inverse:
You will see a little bit later, a significant NEGATIVE correlation developed.
In this case identified, the stock wise RISING and the PTC ratio was FALLING.
This means that Puts were not being bought up as much as calls and the sentiment had shifted to bullish .
And from that point, IWM ended up going up an additional 0.75 points from where there was a significant INVERSE correlation.
So you can see that it is helpful for identifying reversals. But what is also can be used for is identifying areas of LOW conviction. Meaning, areas where there really is no relationship between option activity and stock movement. Let's take spy on the 1 hour timeframe for this example:
You can see in the above example there really is no consensus in the option trading activity with the overarching sentiment. The price action is choppy and so too is option trading activity. Option traders are not pushing too far in one direction or the other. We can also see the lack of conviction in the option trading activity by looking at the correlation SMA (the white line).
When a ticker is experiencing volatile and good movement up and down, the SMA will generally trade to the top of the correlation range (roughly + 1.0) and then make a move down to the bottom (roughly - 1.0), see the example below:
When the SMA is not moving much and accumulating around the centerline, it generally means a lot of indecision.
Additional Indicator Information:
As I have said, the indicator is very simple. It pulls the data from the ticker PCC and runs a correlation assessment against whichever ticker you are on.
PCC pulls averaged data from all equities within the market and is not limited to a single equity. As such, its helpful to use this with indices such as SPY, IWM and QQQ, but I have had success with using it on individual tickers such as NVDA and AMD.
The correlation length is defaulted to 14. You can modify it if you wish, but I do recommend leaving it at this as the default and the testing I have done with this have all been on the 14 correlation length.
You can chose to smooth the SMA over whichever length of period you wish as well.
When the indicator is approaching a significant negative or positive relationship, you will see the indicator flash red in the upper or lower band to signify the relationship. As well, the chart will change the bar colour to purple:
Everything else is pretty straight forward.
Let me know your questions/comments or suggestions around the indicator and its applications.
As always, no indicator is meant to provide a single, reliable strategy to your trading regimen and no indicator or group of indicators should be relied on solely. Be sure to do your own analysis and assessments of the stock prior to taking any trades.
Safe trades everyone!
MACD/RSI - editedThis strategy checks MACDcrossover and RSI crossover. When MACD crosses up or down the signal line, it checks if RSI is crossing back OverSold or OverBought lines, respectively, over the past few candles. The period can be changed by the parameter "RSI lookback".
The strategy seems to work better for reversal—still a work in progress.
VIX Futures Spread StrategyThis script was an exercise in learning Pinescript and exploring the futures curve of the VIX in relation to SPY. Was deleted by TV, trying to republish it now with updated parameters for slippage and commission and a more detailed description.
"VIX Futures Spread Strategy" is a trading strategy that capitalizes on the spread between the 3-month VIX futures (VIX3M) and the spot VIX index. This strategy is based on the idea that the VIX futures spread can serve as a contrarian indicator of market sentiment, with extreme negative spreads potentially signaling oversold conditions and opportunities for long positions.
Ordinarily the VIX curve is in contango as futures contracts are priced at a premium to the current spot price and are used to hedge future uncertainty in the market. When the spot price of VIX spikes the curve can invert and enter backwardation; this strategy detects this condition and uses it as a trigger to open a long position in SPY. The spread going negative tends to correlate with excessive fear and uncertainty in the short term while expecting lower volatility in the long term, in this case 3 months out.
The strategy is designed to enter a long position when the VIX futures spread is negative and to exit the position when the spread rises above 3 -- when the curve is in contango again. The strategy employs a pyramiding approach, allowing up to 10 additional orders to be placed while the entry condition is met, with each order consisting of 10 contracts. This approach aims to maximize potential profits during periods of favorable market conditions.
In this strategy, the VIX futures spread is calculated as the difference between the 3-month VIX futures (VIX3M) and the spot VIX index. The spread is plotted as a histogram on the chart, with the zero line representing no spread, and horizontal lines at 0 and 3 indicating the entry and exit thresholds, respectively.
The strategy's backtesting settings use an initial capital of HKEX:10 ,000, a commission of 0.5% per trade, and a maximum of 10 pyramiding orders, and a slippage of 2 ticks.
Please note that this strategy is intended for educational purposes and should not be considered as financial advice. Before using this strategy in live trading, make sure to thoroughly test and optimize its parameters to suit your risk tolerance and specific trading conditions.
Put-Call Bias IndicatorThe Put-Call Bias Indicator provides a visual representation of the relative bias towards put options using CBOE data. This script calculates the Put/All ratio, displaying the difference as compared to an even 50% ratio as columns on the chart. A positive value indicates a higher proportion of puts being bought compared to the total number of options contracts.
The indicator uses weekly CBOE data to determine the Put/Call ratio, making it suitable for analyzing longer-term trends in options trading sentiment. The gray columns represent the bias towards puts, with the green horizontal line at 0 acting as a reference point to quickly identify the prevailing bias.
In addition to providing an overview of market sentiment, this indicator can also be used as a contrarian indicator. A high Put/All ratio may suggest that the market is overly bearish, potentially signaling a bullish reversal, while a low ratio may indicate an overly bullish market, potentially pointing to a bearish reversal. Please note that this indicator should be used in conjunction with other technical analysis tools and indicators for a comprehensive understanding of the market.
(This is a new version of an old script bc previous version was deleted by TradingView; republishing with a more verbose description)
Basic Polychromatic Momentum IndicatorBasic Polychromatic Momentum Indicator with alerts
PMI involves taking the difference between the current price and the price n periods ago, and then subtracting from it the difference between the current price and the price n periods ago, divided by n. This gives a smoothed version of the momentum indicator.
The user can also specify a smoothing factor using the "smoothing" input, which applies a simple moving average to the PMI. The resulting smoothed PMI is plotted on the chart in blue, with a dotted gray line at the zero level.
Polychromatic Momentum IndicatorPolychromatic Momentum is a generalized Momentum study considering a number of Momentum values controlled by the length input. The greatest weight is given to the most recent Momentum value, while the precedent values are given lesser weight. Each Momentum value is assigned weight equal to inverse square root of Momentum distance (number of bars prior to the current bar). Then the sum of the weighted Momentum values is divided by the sum of the square roots.
Multi-Time Period Chart[1] 3 overlays w/ Halfbacks These are 3 High-Low ranges that uses the code of TradingView's built-in Multi-Time Period Chart indicator as well as adds on optional midpoint (or "halfback") to the overlays. Finally, there are labels offset on the right margin that indicate the open price for each of those timeframes. One thing I adjusted is that range of each timeframe is omitted. This is because the original TV indicator's boxes have their right edge completely covering the wicks (Thus, the title for this indicator). This script has plenty of utility, but it designed specifically with the STRAT (Rob Smith) methodology in mind.
RSI and Stochastic Probability Based Price Target IndicatorHello,
Releasing this beta indicator. It is somewhat experimental but I have had some good success with it so I figured I would share it!
What is it?
This is an indicator that combines RSI and Stochastics with probability levels.
How it works?
This works by applying a regression based analysis on both Stochastics and RSI to attempt to predict a likely close price of the stock.
It also assess the normal distribution range the stock is trading in. With this information it does the following:
2 lines are plotted:
Yellow line: This is the stochastic line. This represents the smoothed version of the stochastic price prediction of the most likely close price.
White Line: This is the RSI line. It represents the smoothed version of the RSI price prediction of the most likely close price.
When the Yellow Line (Stochastic Line) crosses over the White Line (the RSI line), this is a bearish indication. It will signal a bearish cross (red arrow) to signal that some selling or pullback may follow.
IF this bearish cross happens while the stock is trading in a low probability upper zone (anything 13% or less), it will trigger a label to print with a pullback price. The pullback price is the "regression to the mean" assumption price. Its the current mean at the time of the bearish cross.
The inverse is true if it is a bullish cross. If the stock has a bullish cross and is trading in a low probability bearish range, it will print the price target for a regression back to the upward mean.
Additional information:
The indicator also provides a data table. This data table provides you with the current probability range (i.e. whether the stock is trading in the 68% probability zone or the outer 13, 2.1 or 0.1 probability zones), as well as the overall probability of a move up or down.
It also provides the next bull and bear targets. These are calculated based on the next probability zone located immediately above and below the current trading zone of the stock.
Smoothing vs Non-smoothed data:
For those who like to assess RSI and Stochastic for divergences, there is an option in the indicator to un-smooth the stochastic and RSI lines. Doing so looks like this:
Un-smoothing the RSI and stochastic will not affect the analysis or price targets. However it does add some noise to the chart and makes it slightly difficult to check for crosses. But whatever your preference is you can use.
Cross Indicators :
A bearish cross (stochastic crosses above RSI line) is signalled with a red arrow down shape.
A bullish cross (RSI crosses above stochastic line) is signalled with a green arrow up shape.
Labels vs Arrows:
The arrows are lax in their signalling. They will signal at any cross. Thus you are inclined to get false signals.
The labels are programmed to only trigger on high probability setups.
Please keep this in mind when using the indicator!
Warning and disclaimer:
As with all indicators, no indicator is 100% perfect.
This will not replace the need for solid analysis, risk management and planning.
This is also kind of beta in its approach. As such, there are no real rules on how it should be or can be applied rigorously. Thus, its important to exercise caution and not rely on this alone. Do your due diligence before using or applying this indicator to your trading regimen.
As it is kind of different, I am interested in hearing your feedback and experience using it. Let me know your feedback, experiences and suggestions below.
Also, because it does have a lot of moving parts, I have done a tutorial video on its use linked below:
Thanks for checking it out, safe trades everyone and take care!
Automated Option Price - Black-Scholes modelPlease make sure you are plotting this indicator on DAILY bars, not doing so will lead to unintended results. Also, make sure that you keep up to date the Risk-free interest rate, which you can consult (for U.S.) on ycharts.com.
This is an indicator that is meant to be used for Options Day Trading, but it can be useful for mid-term or leaps for I also enabled the possibility for user to input manually the Strike and Expiration date. I based the calculation on the Black-Scholes model. Variables included in the calculation are:
-Stock price (S): The current price of the underlying asset (e.g., a stock).
-Strike price (K): The predetermined price at which the option can be exercised.
-Time to expiration (T): The time remaining until the option expires, expressed as a fraction of a year.
-Volatility (σ): The annualized standard deviation of the stock's returns, which is a measure of the stock's price fluctuations.
-Risk-free interest rate (r): The annualized return on a risk-free investment, often approximated by the yield on a government bond.
The only variable I excluded from the original model was the Dividend yield (q).
U S E R I N P U T S:
1. AUTOMATIC calculations enabled:
i) Strike price (K):
Automatically calculate the strike price for both call and put options based on the stock's closing price. The logic follows a set of rules to determine the strike prices which will usually be Out-of-the-Money (OTM):
-If the stock's closing price is between 1 and 60, the call strike price is rounded up to the nearest whole number, while the put strike price is rounded down to the nearest whole number.
-If the stock's closing price is between 60 and 90, the call strike price is rounded up to the nearest whole number and increased by 1, while the put strike price is rounded down to the nearest whole number and decreased by 1.
-If the stock's closing price is between 90 and 120, the call strike price is rounded up to the nearest whole number and increased by 2, while the put strike price is rounded down to the nearest whole number and decreased by 2.
-If the stock's closing price is above 120, the call strike price is rounded up to the nearest multiple of 5, while the put strike price is rounded down to the nearest multiple of 5.
By applying these rules, I just tried to ensure that the automatically calculated strike prices are tailored to the stock's price range, allowing for more accurate option pricing calculations.
ii) Time to expiration (T):
The indicator will consider this week’s expiration contracts (Friday) only when the current day/bar = Monday. If Tuesday or older it will consider the expiration date of the next week’s Friday (because we are not Theta gamblers, right?).
If you are not comfortable with above for whatever reason, you can always…
2. Enter inputs MANUALLY
First make sure you UNTICK the boxes for automatic calculation.
i) Strike price (K) – Self-explanatory
ii) Time to expiration (T) – Just make sure that the horizon you are inputting matches with the next parameter (e.g. you would not input a Monthly risk-free interest rate for a Leap).
iii) Risk-free interest rate (r) – You can pull this data from the web. Here’s the link I used to define the value that this indicator was launched with:
ycharts.com
Don’t get obsessed with updating this daily if you are using this for day trading, you will notice that weekly may be more than enough.
V O L A T I L I T Y
Not option to manually input Volatility so I’ll explain how it is calculated in this script:
I considered two measures of volatility; one is derived calculating the annualized volatility using the standard deviation of daily returns and the second one is the ATR-based annualized volatility. I then used a ‘combined’ approach with the harmonic mean and the arithmetic mean of these results which can help account for the variability in the option prices calculated with different volatility estimates, which can be more robust when dealing with outliers or skewed data. I back tested with some samples of actual option prices and found that this approach is the one that got results closer to the actual bids.
T A B L E
Nomenclature to read rows is:
Option Strike Price | Type of Option (Put or Call) @ The current Close or at 50% level of bar | Estimated Price
*The Option expiration Date showed as dd-MMM as part of the headers.
Second and third row (color 1): These will show the calculated value for the Put/Call, assuming you are buying at the CURRENT price of the stock.
Third and Fifth row (color2): These will show the calculated value for the Put/Call, assuming you buy at the 50% level of the current bar (this is the value that the contract WOULD HAVE at the 50% level of the bar).
If you plot the indicator during market hours it will obviously update as price moves, this is an intended feature.
L I M I T A T I O N S
The Black-Scholes model, like many other models, has its limitations and will oftentimes provide inaccurate option prices in all market conditions. High volatility events, such as earnings announcements, can lead to significant price fluctuations that are not fully captured by the model.
The model assumes that the stock price follows a continuous random walk with constant volatility, but in reality, volatility can change over time, and stock prices can exhibit jumps, especially around significant events like earnings announcements. This can cause the model to underestimate the true option price in such situations.
Please make sure that you first back test on the symbols you trade to ensure the information presented by this indicator will suit your trading strategy. You will find that the delta between the proposed price of the indicator versus the actual price may differ significantly in some symbols while for others it will be very close. For instance, today (13APR23), the prices for AMD, DIS, AAPL (puts only), were very close to actual bids, whereas TSLA differ significantly (but then again, take a look at the calendar and this last symbol is having earnings next week which may add a premium to the contracts)… I am sure you will get your own conclusions and applicable use cases based on the data you test with.
As always, be wise and methodical on the investment or trading decisions you make!
Nadaraya-Watson OscillatorThis indicator is based on the work of @jdehorty and his amazing Nadaraya-Watson Kernel Envelope, which you can see here:
General Description
The Nadaraya-Watson Oscillator (NWO) will give the same information as the Nadaraya-Watson Envelope, but as an oscillator off the main chart, by plotting the relationship between price and the Kernel and its bands. This also means that we can now detect divergences between price and the NWO.
You can see the relationship between the two here:
You can think of this indicator as the kernel envelope version of a Bollinger Band %B. In ranging markets the bands are perfect for mean reversion trades, but in certain situations the break of one of the bands can signal the beggining of a strong trend and price will remain close to the bands for a long period and will only give small pullbacks. As with any indicator, confluence with price and other tools must be taken into account.
Main Features
As with @jdehorty 's Envelope, you can change the following settings:
Lookback Window.
Relative Weighting.
The initial bar for the regression.
ATR period for the bands.
Inner and Outer Multiples for the bands.
I also added the following:
A middle band around the Kernel to filter out false crossovers.
A Hull Moving Average to smoothen out the movements of the oscillator and give extra confirmation of turnover points.
Colors
Some special things to note regarding the coloring:
The zero line features a gradient that changes color every time the Kernel slope changes direction.
The Oscillator plot has a gradient coloring that gets stronger the closer it gets to each of the bands.
Every time the oscillator crosses over/under the outer bands the background will be highlighted.
Happy trading!
LNL Simple Hedging ToolLNL Simple Hedging Tool
Simple Hedging Tool was created specifically for swing traders who struggle with hedging. This tool helps to spot the ideal moments to put the hedges on (protection of the portfolio during "high risk" times). Simple Hedging Tool will not help you when day trading. It was designed for the daily charts. It is called simple because it is pretty much self-explanatory indicator. The candles are either blue or yellow. Meaning of the colors depend on the version you are using. This tool consist of two versions:
SPX Version:
This version was designed for indexes & overall market benchmarks. In contrast with the VIX version, the SPX version is little more sophisticated since it is based on key market internals. Blue arrows above the candles? More often than not this is signalizing that the key market internals are now approaching bearish signals which means it is the best time to hedge any bullish positions. On the contrary, the yellow arrows are the good reason to lighten up of the shorts & ease off the gas pedal on any bearish outlooks.
VIX Version:
Apart from the black swan events (big market crashes) Vix usually oscillates between the daily extremes. The VIX version is based on a simple bollinger band technique which is visualized with blue & yellow arrows. Whenever the yellow arrows & candles appear, it is good time to put the hedges on & perhaps lighten up on longs.
IMPORTANT DISCLAIMER:
The signals from this tool WILL NOT TELL YOU where to buy or sell! But rather when is a good time TO NOT buy or TO NOT sell. Once the signals appear it does not necessarily mean that the move is over & reversion willl happen immidiately. These signals can be flashing for days even weeks. They are not flashing for you to change the bias but rather tighten up your exposure in case your portfolio is mostly one sided.
Hope it helps.
ADD 2This is a modification to the original ADD script by Tom1trader
I added the option to choose the timeframe, moving average type and length.
Note from the original script:
"This is the NYSE Advancers - decliners which the SPX pretty much follows. You can chart it like any index (ADD -NYSE $ADV MINUS $DECL) but I find it more useful in a separate panel with colors for direction.
The level gives an idea of days move (example: plus or minus 500 is not much movement through the session) but I follow the direction as when more stocks advance (green) or decline (red) the index tends to track it pretty closely.
On SPX , SPY and correlates - very useful for intra-day trading (Scalping or 0DTE option trades) but not for higher time frames at all. If you chart the ADD in a chart and compare 5 minute to daily you will see what I mean."
Momentum Reversal [AngelAlgo]The Momentum Reversal Indicator is a technical analysis tool used to identify potential reversals and trends in financial markets. It does this by comparing the momentum of a market to its trend. The momentum is calculated by measuring the change in price over a specified time interval set by the "Period" input. The trend is then determined as the simple moving average of the momentum, with the length of the moving average determined by the "Trend length" input. When the momentum deviates significantly from the trend, it is considered a potential reversal signal. The user can choose to receive signals based on either "Contrarian" or "Trend" signals type, and also has the option to smooth the signals using the Hull Moving Average. The indicator is plotted as a histogram with trading signals indicated by triangle shapes (up for buys, down for sells). The histogram is also accompanied by a smoothed line representation of the indicator and dynamic threshold levels.
The color of the histogram bars is green if the momentum is positive, red if it's negative. The histogram can be smoothed using the Hull Moving Average (HMA) if the "Smoothed signals" input is set to true.
The indicator also plots the threshold levels, which are dynamically calculated as the simple moving average (SMA) of the absolute value of the histogram. The threshold levels are plotted as circles on the chart.
The signals are plotted as arrows on the chart, either triangle-up for buy signals, or triangle-down for sell signals. If "Contrarian" signals are selected, a triangle-up will appear when the histogram crosses below the lower threshold, and a triangle-down will appear when it crosses above the upper threshold. If "Trend" signals are selected, a triangle-up will appear when the histogram crosses above the upper threshold, and a triangle-down will appear when it crosses below the lower threshold. Trend signals work for trending markets, Contrarian signals are good for ranging markets.
SETTINGS
Period: This input allows you to set the period for the momentum calculation. The default value is 14.
Trend length: This input allows you to set the length of the trend-following moving average. The default value is 50.
Signals type : This input allows you to choose the type of signals you want to receive. You can choose between "Contrarian" and "Trend" signals. The default value is "Contrarian".
Smoothed signals: This input allows you to choose between the raw or smoothed signals. If set to true, the signals will be based on the smoothed histogram line, otherwise, they will be based on the raw histogram. The default value is true.
Weis Wave Volume - Simple labels and comparisonThis script is designed to identify and display the Weis Wave Volume on a chart. The Weis Wave Volume is a volume-based indicator that helps traders analyze market waves, identify trend reversals, and assess the strength of a trend. The script calculates wave volume based on user-defined input parameters, detects price waves, and displays the results as labels on the chart.
This version in particular is based on ideas from @the_MarketWhisperer and some other pieces of the script from @LucF.
The overall functionality of the script is to identify price waves and their corresponding volume. It does this by determining the trend direction and detecting trend reversals based on user-defined inputs such as the Trend reversal length and Price source for trend detection. The script also calculates and displays the cumulative volume of the current wave, the number of bars in the wave, the average volume in the wave, and consecutive increasing average volume bars in the same wave:
- An 'o' is printed to show that the volume of the current wave was 'O'ver/ above the count of the volume from preceding wave (regardless of it being up or down).
- An 'u' is printed to show that the volume of the current wave was 'U'nder/ below the count of the volume from preceding wave (regardless of it being up or down).
- Current wave will be between ' ' signaling that the wave is not confirmed yet.
- Actual values for the wave are available as tooltips. You decide how many bars to show the labels for, but for now and since I am a fan of clean charts, this is set to 50.
The user can adjust various inputs that affect the output of the script, such as Trend reversal length, Price source for trend detection, Labels for X last bars. Adjusting these inputs allows the trader to customize the script's behavior to better suit their trading style or specific market conditions. For example, by increasing the Trend reversal length, the script will require more consecutive bars in the opposite direction to confirm a trend reversal, potentially filtering out shorter-term price fluctuations. Similarly, adjusting the Price source for trend detection allows the user to base trend calculations on different price values, such as the high, low, or close of each bar.
In addition to the customizable inputs, the user can enable or disable the display of pivot markers and choose the colors for the up and down volume labels. This helps the trader to easily visualize and analyze the wave volume information on the chart.
In summary, this script offers traders a powerful tool for visualizing and analyzing the Weis Wave Volume on a chart. By identifying price waves, detecting trend reversals, and providing insights into the strength of a trend based on volume, the script can be a valuable addition to a trader's technical analysis toolbox. Please note this is not meant to provide any buy or sell signals, it should be rather used to complement your existing analysis.
Have fun and trade wisely ;)
