Volume Delta with Custom Colors and Min Delta Input### Indicator Description: **Volume Delta with Custom Colors and Min Delta Input**
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Volume Delta with Custom Colors and Min Delta Input is a powerful and flexible indicator for analyzing volume delta (the difference between buying and selling volume) on TradingView charts. This indicator visualizes volume delta with customizable colors and allows filtering based on a minimum delta value. It is an ideal tool for traders who want to gain deeper insights into market activity and identify significant volume changes.
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### Key Features:
Volume Delta Visualization:
- The indicator displays volume delta as candlesticks, where:
- Green candles indicate positive delta (buying volume dominance).
- Red candles indicate negative delta (selling volume dominance).
Customizable Colors:
- Users can choose their preferred colors for positive and negative delta to tailor the indicator to their preferences.
Minimum Delta Volume Filter:
- Added functionality to set a minimum delta volume threshold. This helps ignore insignificant volume changes and focus on important movements.
Flexible Timeframe Selection:
- The indicator supports analyzing volume delta on a different timeframe than the current chart. For example, you can analyze hourly volume delta on a daily chart.
Adaptive Settings:
- Users can configure the moving average (SMA) period and standard deviation multiplier to calculate the delta threshold.
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### How to Use the Indicator:
Add the Indicator to Your Chart:
- Search for the indicator in the TradingView library and add it to your chart.
Configure the Settings:
- Positive Delta Bar Color: Choose the color for bars with positive delta.
- Negative Delta Bar Color: Choose the color for bars with negative delta.
- Minimum Delta Volume: Set the minimum delta volume value to be displayed.
- Use Custom Timeframe: Enable if you want to analyze volume on a different timeframe.
- Timeframe: Specify the desired timeframe for volume analysis (e.g., "1H" for hourly).
- SMA Period: Set the moving average period for delta calculation.
- Delta Multiplier: Adjust the standard deviation multiplier to fine-tune the delta threshold.
Analyze the Chart:
- Green candles indicate buying volume dominance, while red candles indicate selling volume dominance.
- Use the minimum delta volume filter to focus on significant movements.
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### Benefits of the Indicator:
Flexibility: Customizable colors, timeframe selection, and filtering make the indicator versatile for various trading strategies.
Clarity: Volume delta visualization as candlesticks allows for quick assessment of market activity.
Noise Reduction: The minimum delta volume filter helps ignore insignificant changes and focus on important movements.
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### Example Use Cases:
For Scalping: Use a minute timeframe and set a minimum delta volume filter to identify short-term volume anomalies.
For Long-Term Trading: Analyze volume delta on daily or weekly timeframes to identify key support and resistance levels.
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### Recommendations:
Use the indicator in combination with other technical analysis tools (e.g., support/resistance levels or trendlines) to improve signal accuracy.
Experiment with the settings to adapt the indicator to your trading strategies.
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Volume Delta with Custom Colors and Min Delta Input is an essential tool for traders who want to gain a deeper understanding of market dynamics and make more informed trading decisions. Try it out today and see its effectiveness for yourself!
在腳本中搜尋"Candlestick"
SSL Channel MTFSSL Channel with MTF support, This eliminates the noise of a basic SSL Channel script which is based on ErwinBeckers SSL Channel. So i have used a Multi Time Frame approach to have a clear confirmation of trend and reduce Noise and False signals unlike basic SSL Channel.
This script can be used to determine.
Support/Resistance
High/Low Breakout
Trend Direction
MA candles for Entry
The high and low sma are plotted as SSL CHANNEL when ever the high and low sma cross each other a direction change is observed.
The direction of SSL channel determines the trend of the price. The length of the channel can be changed as required a low value has a high noise and direction can be determined with low accuracy. Increasing the length of SSL channel has high accuracy trend confirmation.
The MTF SSL Channel uses plot from higher timeframe this helps in using SSL Channel as a Price Action Tool. Price when ever crosses over or below the channel determines a breakout. Price tries to move between the High SMA line and Low SMA Line of the SSL Channel rejection, breakouts can be easily observed on a lower timeframe using SSL Channel Plot from a higher timeframe.
I have used 5min/15min chart with MTF SSL from a 1Hr/4Hr and a length of 5 instead of 10. This helps quick direction changes over a period of 1hr to 4hr. Price is trapped within the High SMA and Low SMA lines of SSL Channel. In addition to SSL High Low and average mid line is plotted to additional reference.
Buy Sell Signals are plotted based on crossover of SMA High and Low.
Candle are Plotted Using a SMA with length of 5. This Candle Plot can be used to make an entry based on direction confirmation of SSL. keep in mind the direction of SSL Plot and the candle must be same. Preferably Entry can made above or below the midline of SSL Channel. The Candle Plot eliminates the Noise of traditional Japanese Candlesticks.
Additionally MACD Crossover and MACD Trend line confirmations can be used to confirm a Buy Sell and Entry signals
Alerts are also plotted accordingly.
FVG Breakout/BreakdownThe FVG Breakout/Breakdown indicator is designed to identify potential breakout and breakdown opportunities in the market, based on the concept of Fair Value Gaps (FVGs). FVGs are areas where price moves too quickly, leaving behind gaps between candlesticks, often seen as areas of inefficiency or imbalance that the market tends to revisit.
Key Concepts:
Fair Value Gaps (FVG):
FVG occurs when a price gap is created between candlesticks, typically when the high of one candle is lower than the low of the previous candle (for a bearish FVG) or the low of one candle is higher than the high of the previous candle (for a bullish FVG).
These gaps represent an imbalance between buying and selling pressure, and the market often revisits them, making them valuable for identifying potential entry points.
Bullish FVG: This occurs when the low of the current candle is higher than the high of the previous candle.
Condition: low > high
Bearish FVG: This occurs when the high of the current candle is lower than the low of the previous candle.
Condition: high < low
Breakout/Breakdown Signals:
Breakout: A bullish breakout signal occurs when the price breaks above a defined resistance level after an FVG gap. This suggests that the market may continue moving higher.
Breakdown: A bearish breakdown signal occurs when the price breaks below a defined support level after an FVG gap. This suggests that the market may continue moving lower.
NWOG (New Week Opening Gap):
The NWOG can be used as an additional factor to confirm the FVG signal. The gap between Friday's close and Monday's open is a crucial level for identifying the start of a new move for the week.
NWOG helps to further refine the timing of breakout or breakdown signals, only triggering them when price moves relative to the Monday Open and shows a new direction.
NWOG with FVGThe New Week Opening Gap (NWOG) and Fair Value Gap (FVG) combined indicator is a trading tool designed to analyze price action and detect potential support, resistance, and trade entry opportunities based on two significant concepts:
New Week Opening Gap (NWOG): The price range between the high and low of the first candle of the new trading week.
Fair Value Gap (FVG): A price imbalance or gap between candlesticks, where price may retrace to fill the gap, indicating potential support or resistance zones.
When combined, these two concepts help traders identify key price levels (from the new week open) and price imbalances (from FVGs), which can act as powerful indicators for potential market reversals, retracements, or continuation trades.
1. New Week Opening Gap (NWOG):
Definition:
The New Week Opening Gap (NWOG) refers to the range between the high and low of the first candle in a new trading week (often, the Monday open in most markets).
Purpose:
NWOG serves as a significant reference point for market behavior throughout the week. Price action relative to this range helps traders identify:
Support and Resistance zones.
Bullish or Bearish sentiment depending on price’s relation to the opening gap levels.
Areas where the market may retrace or reverse before continuing in the primary trend.
How NWOG is Identified:
The high and low of the first candle of the new week are drawn on the chart, and these levels are used to assess the market's behavior relative to this range.
Trading Strategy Using NWOG:
Above the NWOG Range: If price is trading above the NWOG levels, it signals bullish sentiment.
Below the NWOG Range: If price is trading below the NWOG levels, it signals bearish sentiment.
Price Touching the NWOG Levels: If price approaches or breaks through the NWOG levels, it can indicate a potential retracement or reversal.
2. Fair Value Gap (FVG):
Definition:
A Fair Value Gap (FVG) occurs when there is a gap or imbalance between two consecutive candlesticks, where the high of one candle is lower than the low of the next candle (or vice versa), creating a zone that may act as a price imbalance.
Purpose:
FVGs represent an imbalance in price action, often indicating that the market moved too quickly and left behind a price region that was not fully traded.
FVGs can serve as areas where price is likely to retrace to fill the gap, as traders seek to correct the imbalance.
How FVG is Identified:
An FVG is detected if:
Bearish FVG: The high of one candle is less than the low of the next (gap up).
Bullish FVG: The low of one candle is greater than the high of the next (gap down).
The area between the gap is drawn as a shaded region, indicating the FVG zone.
Trading Strategy Using FVG:
Price Filling the FVG: Price is likely to retrace to fill the gap. A reversal candle in the FVG zone can indicate a trade setup.
Support and Resistance: FVG zones can act as support (in a bullish FVG) or resistance (in a bearish FVG) if the price retraces to them.
Combined Strategy: New Week Opening Gap (NWOG) and Fair Value Gap (FVG):
The combined use of NWOG and FVG helps traders pinpoint high-probability price action setups where:
The New Week Opening Gap (NWOG) acts as a major reference level for potential support or resistance.
Fair Value Gaps (FVG) represent market imbalances where price might retrace to, filling the gap before continuing its move.
Signal Logic:
Buy Signal:
Price touches or breaks above the NWOG range (indicating a bullish trend) and there is a bullish FVG present (gap indicating a support area).
Price retraces to fill the bullish FVG, offering a potential buy opportunity.
Sell Signal:
Price touches or breaks below the NWOG range (indicating a bearish trend) and there is a bearish FVG present (gap indicating a resistance area).
Price retraces to fill the bearish FVG, offering a potential sell opportunity.
Example:
Buy Setup:
Price breaks above the NWOG resistance level, and a bullish FVG (gap down) appears below. Traders can wait for price to pull back to fill the gap and then take a long position when confirmation occurs.
Sell Setup:
Price breaks below the NWOG support level, and a bearish FVG (gap up) appears above. Traders can wait for price to retrace and fill the gap before entering a short position.
Key Benefits of the Combined NWOG & FVG Indicator:
Combines Two Key Concepts:
NWOG provides context for the market's overall direction based on the start of the week.
FVG highlights areas where price imbalances exist and where price might retrace to, making it easier to spot entry points.
High-Probability Setups:
By combining these two strategies, the indicator helps traders spot high-probability trades based on major market levels (from NWOG) and price inefficiencies (from FVG).
Helps Identify Reversal and Continuation Opportunities:
FVGs act as potential support and resistance zones, and when combined with the context of the NWOG levels, it gives traders clearer guidance on where price might reverse or continue its trend.
Clear Visual Signals:
The indicator can plot the NWOG levels on the chart, and shade the FVG areas, providing a clean and easy-to-read chart with entry signals marked for buy and sell opportunities.
Conclusion:
The New Week Opening Gap (NWOG) and Fair Value Gap (FVG) combined indicator is a powerful tool for traders who use price action strategies. By incorporating the New Week's opening range and identifying gaps in price action, this indicator helps traders identify potential support and resistance zones, pinpoint entry opportunities, and increase the probability of successful trades.
This combined strategy enhances your analysis by adding layers of confirmation for trades based on significant market levels and price imbalances. Let me know if you'd like more details or modifications!
Candle Range Theory | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Candle Range Theory Indicator! This powerful tool offers a strategy built around the Candle Range Theory, which analyzes market movements through the relative size and structure of price candles. For more information about the process, check the "HOW DOES IT WORK" section.
Features of the new Candle Range Theory Indicator :
Implementation of the Candle Range Theory
FVG & Order Block Entry Methods
2 Different TP / SL Methods
Customizable Execution Settings
Customizable Backtesting Dashboard
Alerts for Buy, Sell, TP & SL Signals
📌 HOW DOES IT WORK ?
The Candle Range Theory (CRT) indicator operates by identifying significant price movements through the relative size and structure of candlesticks. A key part of the strategy is determining large candles based on their range compared to the Average True Range (ATR) in a higher timeframe. Once identified, a breakout of either the high wick or the low wick of the large candle is required. This breakout is considered a liquidity grab. After that, the indicator waits for confirmation through Fair Value Gaps (FVGs) or Order Blocks (OBs). The confirmation structure must be the opposite direction of the breakout, for example if the high wick is broken, a bearish FVG is required for the short entry. After a confirmation signal is received, the indicator will trigger entry points based on your chosen entry method (FVG or OB), and exit points will be calculated using either a dynamic ATR-based TP/SL method or fixed percentages. Alerts for Buy, Sell, Take-Proft, and Stop-Loss are available.
🚩 UNIQUENESS
This indicator stands out because it combines two highly effective entry methods: Fair Value Gaps (FVGs) and Order Blocks (OBs). You can choose between these strategies depending on market conditions. Additionally, the dynamic TP/SL system uses the ticker's volatility to automatically calculate stop-loss and take-profit targets. The backtesting dashboard provides metrics about the performance of the indicator. You can use it to tune the settings for best use in the current tiker. The Candle Range Theory approach offers more flexibility compared to traditional indicators, allowing for better customization and control based on your risk tolerance.
⚙️ SETTINGS
1. General Configuration
Higher Timeframe: Customize the higher timeframe for analysis. Recommended combinations include M15 -> H4, H4 -> Daily, Daily -> Weekly, and Weekly -> Monthly.
HTF Candle Size: Define the size of the higher timeframe candles as Big, Normal, or Small to filter valid setups based on their range relative to ATR.
Entry Mode: Choose between FVGs and Order Blocks for your entry triggers.
Require Retracement: Enable this option if you want a retracement to the FVG or OB for entry confirmation.
Show HTF Candle Lines: Toggle to display the higher timeframe candle lines for better visual clarity.
2. Fair Value Gaps
FVG Sensitivity: You may select between Low, Normal, High or Extreme FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivities resulting in spotting bigger FVGs, and higher sensitivities resulting in spotting all sizes of FVGs.
3. Order Blocks
Swing Length: Swing length is used when finding order block formations. Smaller values will result in finding smaller order blocks.
4. TP / SL
TP / SL Method:
a) Dynamic: The TP / SL zones will be auto-determined by the algorithm based on the Average True Range (ATR) of the current ticker.
b) Fixed : You can adjust the exact TP / SL ratios from the settings below.
Dynamic Risk: The risk you're willing to take if "Dynamic" TP / SL Method is selected. Higher risk usually means a better winrate at the cost of losing more if the strategy fails. This setting is has a crucial effect on the performance of the indicator, as different tickers may have different volatility so the indicator may have increased performance when this setting is correctly adjusted.
BTC Arcturus IndicatorBTC Arcturus Indicator: This indicator is designed to create buy and sell signals based on the market value of Bitcoin. It also predicts potential market tops with the Pi Cycle Top indicator.
How Does It Work?
1. MVRVZ (Market Value to Realized Value-Z Score) Calculation:
MC: Bitcoin's market cap (Market Cap) is pulled daily from Glassnode data.
MCR: Realized Market Cap of Bitcoin is taken daily from Coinmetrics data.
MVRVZ: It is calculated by dividing the difference between Bitcoin's market value and realized market value by one standard deviation. This value indicates whether the market is overvalued or undervalued.
2. Reception and Warning Signals:
Buy Signal: When MVRVZ falls below the -0.255 threshold value, the indicator gives a "Buy" signal. This indicates that Bitcoin is undervalued and may be a buying opportunity.
Warning Signal: A warning signal turns on when MVRVZ exceeds the threshold value of 2.765. This indicates that the market is approaching saturation and caution is warranted.
3. Tracking the Highest MVRVZ Value:
The indicator records the highest MVRVZ value in the last 10 candlesticks. This value is used to determine whether the market has reached its highest risk levels.
4. Warning Display:
If the MVRVZ value matches the highest value in the last 10 bars and this warning has not been displayed before, a "Warning" signal is displayed.
Once the warning signal is shown, no further warnings are shown for 10 candles.
5. Pi Cycle Top Indicator:
Pi Cycle Top: This indicator predicts Bitcoin tops by comparing two moving averages (350-day and 111-day). If the short-term moving average falls below the long-term moving average, this is considered a sell signal.
The indicator displays this signal with the label "Sell", indicating a potential market top.
User Guide:
Green Buy Signal: It means Bitcoin is cheap and offers a buying opportunity.
Yellow Warning Signal: Indicates that Bitcoin has reached possible profit taking points and caution should be exercised.
Red Sell Signal: Indicates that Bitcoin has reached market saturation and it may be appropriate to sell.
High Volume Engulfing Candle_bullHornThe "High Volume Engulfing Candle" indicator is a technical analysis tool used in trading to identify specific candlestick patterns that suggest potential reversals or significant price movements in a financial instrument. It focuses on two key criteria: the engulfing candlestick pattern and high trading volume. Here's a brief description of the indicator:
Engulfing Candlestick Pattern: The indicator looks for bullish and bearish engulfing candlestick patterns.
Bullish Engulfing: This pattern occurs when the current candlestick completely engulfs the previous one. In other words, the current candlestick's body (the open and close prices) is larger than the previous candlestick's body, and it closes higher than the previous candle's close. It suggests a potential bullish reversal.
Bearish Engulfing: This pattern occurs when the current candlestick's body completely engulfs the previous one, but in the opposite direction. The current candlestick's body is larger than the previous candlestick's body, and it closes lower than the previous candle's close. It suggests a potential bearish reversal.
High Volume Confirmation: In addition to the engulfing pattern, the indicator considers trading volume. It looks for instances where the volume accompanying the engulfing candle is significantly higher than a moving average of the volume. This indicates strong market participation and validates the importance of the engulfing candle pattern.
Arrows on the Chart: When a high volume engulfing candle pattern is detected, the indicator plots arrows on the price chart. A green triangle pointing up is used for bullish engulfing patterns, while a red triangle pointing down is used for bearish engulfing patterns. These arrows help traders quickly identify potential reversal points.
Overall, the "High Volume Engulfing Candle" indicator combines the visual recognition of candlestick patterns with volume analysis to provide traders with potential signals for trend reversals or significant price moves in the market. Traders can use these signals as part of their technical analysis and trading strategies.
Candle GapsWhat This Indicator Does
This indicator shows you where the 'Gaps' are in the market ( as defined by this indicator ). The indicator draws a box that extends indefinitely to the right, this is the 'Gap'. This box will be 'Filled In' when price comes back and overlaps the box.
A Gap As Defined By This Indicator
A candle creates a 'Gap' in the area where there is no price action in front of, or behind ( up to 1 candle ) that area.
A 'Up Gap' is created when the close of a candle is above the high of the previous candle.
A 'Down Gap' is created when the close of a candle is below the low of the previous candle.
Both types of Gaps are coloured with the same colour.
Gaps are 'filled in' and disappear when price action crosses over them.
This indicator does not show gaps where there are no candlesticks.
The Intention Of This Indicator
The intention of this indicator is to make it possible to instantly identify Gaps in the market.
Gaps can be used as a confluence for a variety of different strategies.
Inputs
Gap Colour ( This changes the colour of the Gaps )
Draw Gaps From Wicks ( This changes whether the Gap begins to be drawn from the previous candles high/low, or from the candle the Gap occurs on )
Both inputs are for aesthetic preferences.
A maximum of 50 Gaps will be drawn on the chart at one time.
This indicator is not guaranteed to be 100% accurate.
Scalp Pump-Dump Detector with AlertsThis script displays the percentage of movement of all candles on the chart, as well as identifying abnormal movements to which you can attach alerts. An abnormal movement is considered a rise or fall that exceeds the parameter set in the settings (by default, 1% per 1 bar).
Added a function to display the volume on abnormal candlesticks.
Height of Candle BodyUnderstanding the Height of Candlestick Body
Candlestick charts are a popular method of displaying price data in financial markets. They provide a visual representation of price movements and are used by traders to make informed decisions about buying and selling assets. Understanding the height of a candlestick body is an important aspect of technical analysis and can help traders identify trends and make profitable trades.
The height of a candlestick body is the distance between the opening and closing price of an asset over a given time period. When the closing price is higher than the opening price, the candlestick body is typically colored green or white and is considered bullish. Conversely, when the closing price is lower than the opening price, the candlestick body is typically colored red or black and is considered bearish.
The height of the candlestick body is important because it can provide valuable information about market sentiment. If the candlestick body is relatively small, it suggests that there is indecision in the market and that buyers and sellers are evenly matched. Conversely, if the candlestick body is relatively large, it suggests that there is a significant amount of buying or selling pressure in the market.
Wick Length Dominance IndicatorThis indicator, called the "Wick Momentum Indicator" (WMI), helps to gauge price momentum by comparing the total length of upper and lower wicks of a certain number of candlesticks. The indicator turns green when there is a bullish momentum (total length of lower wicks is greater than that of upper wicks) and turns red when there is a bearish momentum (total length of upper wicks is greater than that of lower wicks).
Price Action CandlesThis simple script provides a visual aid for price action traders by coloring outside & inside candles, which in effect leaves the trader with 6 possible candle colors:
-Regular bullish candle
-Outside bullish candle
-Inside bullish candle
-Regular bearish candle
-Outside bearish candle
-Inside bearish candle
These candlesticks may provide powerful signals when used in conjunction with key levels, market structure and chart patterns.
Make sure to disable the regular candlesticks (body, borders and wicks) in the symbol tab inside the configuration menu!
Hope it can help someone!
Hammer / Shooting Star ScannerAlways missing hammer and shooting star candlestick pattern?
This script will help you to alert hammer shooting star candlestick.
Please leave your comments for improving this script.
Outside Bar Strategy % (Alessio)Outside Bar Strategy %
This strategy is based on identifying Outside Bars, which occur when the current bar's high is higher than the previous bar's high and its low is lower than the previous bar's low. The strategy enters trades in the direction of the Outside Bar, offering a powerful way to capture price moves following a strong price expansion.
Key Features:
Long and Short Entries: The strategy enters a Long trade when the Outside Bar closes bullish (current close > open), and a Short trade when the Outside Bar closes bearish (current close < open).
Customizable Entry Levels: The entry point is calculated based on a customizable percentage of the Outside Bar's range, allowing flexibility for traders to fine-tune their entries at 50% or 70% of the bar's range.
Stop Loss (SL) and Take Profit (TP):
Stop Loss (SL) is automatically placed at the Outside Bar's low for Long trades and at its high for Short trades.
Take Profit (TP) is calculated as a percentage of the Outside Bar's range, with customizable settings for take-profit levels.
Visual Indicators:
Entry, Stop Loss, and Take Profit levels are plotted as lines on the chart, with customizable colors and widths for easy identification.
Labels are placed on the chart to indicate whether the trade is Long or Short, positioned above or below the Outside Bar's candlestick.
Alerts: Users can enable alerts to receive notifications when a trade is triggered, including details such as entry points and stop loss levels.
Strategy Parameters:
Entry Percentage: Set the entry level as a percentage of the Outside Bar's range (e.g., 50%, 70%).
Take Profit Percentage: Customize the Take Profit level as a percentage of the Outside Bar's range.
Customizable Colors and Line Widths: Adjust the colors and thickness of the entry, stop loss, and take profit lines to fit your preferences.
Alerts: Enable alerts to be notified when a trade is executed or when the entry level is reached.
This strategy is ideal for traders who want to capitalize on significant price moves after a breakout, with clear risk management through Stop Loss and Take Profit levels. The customizable features make it suitable for various market conditions and trading styles.
Pin Bar, Inside Bars and Engulfing Candle SticksIntroducing the Candlestick Pattern Plotter, a comprehensive TradingView indicator designed to elevate your technical analysis by automatically identifying and plotting three essential candlestick patterns – Pin Bars, Engulfing Candles, and Inside Bars. This powerful tool equips traders with a holistic view of market dynamics, enabling them to make informed decisions based on key price action signals.
Pin Bar Identification:
The indicator adeptly recognizes Pin Bars, a pivotal candlestick pattern characterized by a small body and a long wick in the opposite direction of the prevailing trend.
Pin Bars are instrumental in signaling potential trend reversals or continuations, providing crucial insights for strategic decision-making.
Engulfing Candle Detection:
Identify Engulfing Candles effortlessly with this indicator, showcasing instances where the body of one candle fully engulfs the body of the previous candle.
Engulfing Candles serve as powerful reversal indicators, offering valuable insights into shifts in market sentiment and potential trend reversals.
Inside Bar Recognition:
The indicator goes beyond traditional patterns by identifying Inside Bars, where the range of a candle is entirely within the previous candle's high and low.
Inside Bars often signify consolidation or a period of indecision in the market, providing traders with crucial information about potential breakouts or reversals.
Seamlessly integrate the Candlestick Pattern Plotter into your TradingView chart, enjoying a user-friendly interface for swift interpretation of candlestick patterns.
Toggle the display of Pin Bars, Engulfing Candles, and Inside Bars on and off with ease, allowing you to focus on the specific patterns most relevant to your analysis.
Real-Time Alerts:
Stay ahead of the market with real-time alerts that notify you when a Pin Bar, Engulfing Candle, or Inside Bar is identified on the chart.
Timely notifications keep you informed, ensuring you never miss a potential trading opportunity based on these crucial candlestick patterns.
Enhance your trading strategy with the precision of Pin Bars, Engulfing Candles, and Inside Bars, seamlessly integrated into your analysis through the Candlestick Pattern Plotter. Gain a comprehensive understanding of market movements and make well-informed decisions in real-time.
3LS | 3 Line Strike Strategy [Kintsugi Trading]What is the 3LS | 3 Line Strike Strategy?
Incorporating the 3 Line Strike candlestick pattern into our strategy was inspired by Arty at The Moving Average and the amazing traders at TheTrdFloor .
The Three Line Strike is a trend continuation candlestick pattern consisting of four candles. Depending on their heights and collocation, a bullish or a bearish trend continuation can be predicted.
In a symphony of trend analysis, price action, and volume we can find and place high-probability trades with the 3LS Strategy.
How to use it!
----- First, start by choosing a Stop-Loss Strategy, Stop PIP Size, and Risk/Reward Ratio -----
- Stop-Loss Strategy
Fixed PIP Size – This uses the top/bottom of the indicator candle and places a TP based on the chosen Risk:Reward ratio.
ATR Trail (No set Target Profit, only uses ATR Stop)
ATR Trail-Stop (Has set Target Profit, however, stop is based on ATR inputs)
**If you choose an ATR Stop-Loss Strategy - input the desired ATR period and Multiple you would like the stop to be calculated at**
**ATR Stop-Loss Strategies have a unique alert setup for Auto-Trading. See Auto-Trading Section**
- Risk/Reward Ratio = If you have a .5 risk/reward, it means you are risking $100 to make $50.
- Additional Stop PIP Size = Number of PIPs over the default stop location of the top or bottom of the indicator candle.
----- Next, we set the Session Filter -----
Set the Timezone and Trade Session you desire. If no specific session is desired, simply set the Trade Session to 00:00 - 00:00.
----- Next, we set the Moving Average Cloud Fill -----
Enter the Fast and Slow Moving Average Length used to calculate trend direction:
MA Period Fast
MA Period Slow
These inputs will determine whether the strategy looks for Long or Short positions.
----- Next, we set the VSA – Volume Spread Analysis Settings -----
Check the box to show the indicator at the bottom of the chart if desired.
This is just a different visual output of the VSA | Volume Spread Analysis indicator available for free under the community indicators tab. You can add that indicator to your chart and see the same output in candle format.
In combination with the Moving Average Cloud, the Volume Spread Analysis will help us determine when to take a trade and in what direction.
The strategy is essentially looking for small reversals going against the overall trend and placing a trade once that reversal ends and the price moves back in the direction of the overall trend.
The 3LS Strategy utilizes confirmation between trend, volume, and price action to place high probability trades.
The VSA is completely customizable by:
Moving Average Length
MA-1 Multiplier
MA-2 Multiplier
MA-3 Multiplier
Check out the VSA | Volume Spread Analysis indicator in the community scripts section under the indicators tab to use this awesome resource on other strategies.
----- Next, we have the option to view the automated KT Bull/Bear Signals -----
Check the boxes to show the buy-sell signal on the chart if desired.
----- Next, we set the risk we want to use if Auto Trading the strategy -----
I always suggest using no more than 1-3% of your total account balance per trade. Remember, if you have multiple strategies triggering per day with each using 1%, the total percent at risk will be much larger.
For Example – if you have 10 strategies each risking 1% your total risk is 10% of your account, not 1%! Be mindful to only use 1-3% of your total account balance across all strategies, not just each individual one.
----- Finally, we backtest our ideas -----
After using the 'Strategy Tester' tab on TradingView to thoroughly backtest your predictions you are ready to take it to the next level - Automated Trading!
This was my whole reason for creating the script. If you work a full-time job, live in a time zone that is hard to trade, or just don't have the patience, this will be a game-changer for you as it was for me.
Auto-Trading
When it comes to auto-trading this strategy I have included two options in the script that utilize the alert messages generated by TradingView.
*Note: Please trade on a demo account until you feel comfortable enough to use real money, and then please stick to 1%-2% of your total account value in risk per trade.*
AutoView
PineConnector
**ATR Auto-Trading Alert Setup**
How to create alerts on 3 Line Strike Strategy
For Trailing Stops:
1) Adjust autoview/pineconnector settings
2) Click "add alert"
3) Select "Condition" = Strategy Name
4) Select "Order Fills Only" from the drop-down
3) Remove template message text from "message" box and place the exact text. '{{strategy.order.alert_message}}'
4) Click "create"
For Fixed Pip Stop:
1) Adjust autoview/pineconnector settings
2) Click "add alert"
3) Select "Condition" = Strategy Name
4) Select "alert() function calls only"
5) I like to title my Alert Name the same thing I named it as an Indicator Template to keep track
Good luck with your trading!
Easy Scalping by JayKasunBINANCE:BTCUSDTPERP
This indicator can show stochastic RSI K and D line crosses and some candlestick patterns on chart.
You can use this indicator to scalping, check usage for more info. Always backtest before trading with your real money.
This indicator will also help mobile TradingView users to get an idea when getting stochastic RSI signals, they can use this indicator to check if stochastic RSI K and D crossed or not. ( Because they have limited area to view chart ) .
4 Exponential moving averages are there in the indicator with easy enable disable option. 9 , 21 , 55 , 100 is suggested as default values.
Meanings of signs in chart
Blue triangle bellow candle means it's a stochastic RSI K and D line cross in oversold level
Red triangle above candle means it's a stochastic RSI K and D line cross in overbought level
Green plus sign shows when EMA 50 crossover EMA 100
Red plus sign shows when EMA 50 cross bellow EMA 100
Features
You can enable candlestick pattern displaying when stochastic RSI K and D cross happen. Check indicator settings.
You can enable displaying ATR Trailing Stops in indicator settings.
Indicator will only show blue triangle after Green plus sign and Red triangles after Red plus sign
After you enable candlestick pattern option, stochastic RSI crosses with candlestick patterns will show in deferent colors. Blue triangle will turn into green and Red triangle into pink.
Usage
Use lower time frames like 5m or 15m
After green plus sign, if price retouched 21 EMA or 55 EMA and blue triangle appeared , you can enter a long position.
After red plus sign, if price retouched 21 EMA or 55 EMA and red triangle appeared , you can enter a short position.
Always wait for candle close . signs of chart can be changed when candle closing. ( Does repaint until candle close )
Use ATR trailing to get a stop loss price.
Use 1:1 or 1:0.5 Risk Reward ratio. Because it's scalping and lower time frame.
Use more indicators like RSI to get more confirmations ( like divergences ) before entering a trade. Its more reliable.
Candlestick Patterns Short names
H - Hammer
IH -Inverted Hammer
BE - Bullish Engulfing ( green triangle )
BE - Bearish Engulfing ( pink triangle )
BH - Bullish Harami ( green triangle )
BH - Bearish Harami ( pink triangle )
I have included ATR + Trailing Stops by SimpleCryptoLife and Candlestick Patterns Identified (updated 3/11/15) by repo32
this is a combination of multiple indicators
credit goes to original creators of above indicators
SOT & SA Detector ProSOT & SA Detector Pro- Advanced Reversal Pattern Recognition
OVERVIEW
The SOT & SA Detector is an educational indicator designed to identify potential market reversal points through systematic analysis of candlestick patterns, volume confirmation, and price wave structures. SOT (Shorting of Thrust) signals suggest potential bearish reversals after upward price movements, while SA (Selling Accumulation) signals indicate possible bullish reversals following downward trends. This tool helps traders recognize key market transition points by combining multiple technical criteria for enhanced signal reliability.
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HOW IT WORKS
Technical Methodology
The indicator employs a multi-factor analysis approach that evaluates:
Wave Structure Analysis: Identifies minimum 2-bar directional waves (upward for SOT, downward for SA)
Price Delta Validation: Ensures closing price changes remain within specified percentage thresholds (default 0.3%) best 0.1.
Candlestick Tail Analysis: Measures rejection wicks using configurable tail multipliers
Volume Confirmation: Requires increased volume compared to previous periods
Pattern Confirmation: Validates signals through subsequent price action
Signal Generation Process
Pattern Recognition: Scans for qualifying candlestick formations with appropriate tail characteristics
Volume Verification: Confirms patterns with volume expansion using adjustable multiplier
Price Confirmation: Validates signals when price breaks and closes beyond pattern extremes
Signal Display: Places labeled markers and draws horizontal reference levels
Mathematical Foundation
Delta calculation: math.abs(close - close ) / close <= deltaPercent / 100
Tail analysis: (high - close ) >= tailMultiplier * (close - low ) for SOT
Volume filter: volume >= volume * volumeFactor
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KEY FEATURES
Dual Pattern Recognition: Identifies both bullish (SA) and bearish (SOT) reversal candidates
Volume Integration: Incorporates volume analysis for enhanced signal validation
Customizable Parameters: Adjustable wave length, delta percentage, tail multiplier, and volume factor
Visual Clarity: Color-coded bar highlighting, labeled signals, and horizontal reference levels
Time-Based Filtering: Configurable analysis period to focus on recent market activity
Non-Repainting Signals: Confirmed signals remain stable and do not change with new price data
Alert System: Built-in notifications for both initial signals and subsequent confirmations
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HOW TO USE
Signal Interpretation
Red SOT Labels: Appear above potential bearish reversal candles with downward-pointing markers
Green SA Labels: Display below potential bullish reversal candles with upward-pointing markers
Horizontal Lines: Extend from signal levels to provide ongoing reference points
Bar Coloring: Highlights qualifying pattern candles for visual emphasis
Trading Application
This indicator serves as an educational tool for pattern recognition and should be used in conjunction with additional analysis methods. Consider SOT signals as potential areas of selling pressure following upward moves, while SA signals may indicate buying interest after downward price action.
Best Practices
Combine with trend analysis and support/resistance levels
Consider overall market context and timeframe alignment
Use proper risk management techniques
Validate signals with additional technical indicators
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SETTINGS
Analysis Days (Default: 20)
Controls the lookback period for signal detection. Higher values extend historical analysis while lower values focus on recent activity.
Minimum Bars in Wave (Default: 2)
Sets the minimum consecutive bars required to establish directional wave patterns. Increase for stronger trend confirmation.
Max Close Change % (Default: 0.3) best 0.1.
Defines acceptable closing price variation between consecutive bars. Lower values require tighter price consolidation.
Tail Multiplier (Default: 1.0) best 1.5 or more.
Adjusts sensitivity for candlestick tail analysis. Higher values require more pronounced rejection wicks.
Volume Factor (Default: 1.0)
Sets volume expansion threshold compared to previous period. Values above 1.0 require volume increases.
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LIMITATIONS
Market Conditions
May produce false signals in highly volatile or low-volume conditions
Effectiveness varies across different market environments and timeframes
Requires sufficient volume data for optimal performance
Signal Timing
Signals appear after pattern completion, not in real-time during formation
Confirmation signals depend on subsequent price action
Historical signals do not guarantee future market behavior
Technical Constraints
Limited to analyzing price and volume data only
Does not incorporate fundamental analysis or external market factors
Performance may vary significantly across different trading instruments
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IMPORTANT DISCLAIMERS
This indicator is designed for educational purposes and technical analysis learning. It does not constitute financial advice, investment recommendations, or trading signals. Past performance does not guarantee future results. Trading involves substantial risk of loss, and this tool should be used alongside proper risk management techniques and additional analysis methods.
Always conduct thorough analysis using multiple indicators and consider market context before making trading decisions. The SOT & SA patterns represent potential reversal points but do not guarantee price direction changes.
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Credits: Original concept and Pine Script implementation by Everyday_Trader_X
Version: Pine Script v6 compatible
Category: Technical Analysis / Reversal Detection
Overlay: Yes (displays on price chart)
Canuck Trading IndicatorOverview
The Canuck Trading Indicator is a versatile, overlay-based technical analysis tool designed to assist traders in identifying potential trading opportunities across various timeframes and market conditions. By combining multiple technical indicators—such as RSI, Bollinger Bands, EMAs, VWAP, MACD, Stochastic RSI, ADX, HMA, and candlestick patterns—the indicator provides clear visual signals for bullish and bearish entries, breakouts, long-term trends, and options strategies like cash-secured puts, straddles/strangles, iron condors, and short squeezes. It also incorporates 20-day and 200-day SMAs to detect Golden/Death Crosses and price positioning relative to these moving averages. A dynamic table displays key metrics, and customizable alerts help traders stay informed of market conditions.
Key Features
Multi-Timeframe Adaptability: Automatically adjusts parameters (e.g., ATR multiplier, ADX period, HMA length) based on the chart's timeframe (minute, hourly, daily, weekly, monthly) for optimal performance.
Comprehensive Signal Generation: Identifies short-term entries, breakouts, long-term bullish trends, and options strategies using a combination of momentum, trend, volatility, and candlestick patterns.
Candlestick Pattern Detection: Recognizes bullish/bearish engulfing, hammer, shooting star, doji, and strong candles for precise entry/exit signals.
Moving Average Analysis: Plots 20-day and 200-day SMAs, detects Golden/Death Crosses, and evaluates price position relative to these averages.
Dynamic Table: Displays real-time metrics, including zone status (bullish, bearish, neutral), RSI, MACD, Stochastic RSI, short/long-term trends, candlestick patterns, ADX, ROC, VWAP slope, and MA positioning.
Customizable Alerts: Over 20 alert conditions for entries, exits, overbought/oversold warnings, and MA crosses, with actionable messages including ticker, price, and suggested strategies.
Visual Clarity: Uses distinct shapes, colors, and sizes to plot signals (e.g., green triangles for bullish entries, red triangles for bearish entries) and overlays key levels like EMA, VWAP, Bollinger Bands, support/resistance, and HMA.
Options Strategy Signals: Suggests opportunities for selling cash-secured puts, straddles/strangles, iron condors, and capitalizing on short squeezes.
How to Use
Add to Chart: Apply the indicator to any TradingView chart by selecting "Canuck Trading Indicator" from the Pine Script library.
Interpret Signals:
Bullish Signals: Green triangles (short-term entry), lime diamonds (breakout), blue circles (long-term entry).
Bearish Signals: Red triangles (short-term entry), maroon diamonds (breakout).
Options Strategies: Purple squares (cash-secured puts), yellow circles (straddles/strangles), orange crosses (iron condors), white arrows (short squeezes).
Exits: X-cross shapes in corresponding colors indicate exit signals.
Monitor: Gray circles suggest holding cash or monitoring for setups.
Review Table: Check the top-right table for real-time metrics, including zone status, RSI, MACD, trends, and MA positioning.
Set Alerts: Configure alerts for specific signals (e.g., "Short-Term Bullish Entry" or "Golden Cross") to receive notifications via TradingView.
Adjust Inputs: Customize input parameters (e.g., RSI period, EMA length, ATR period) to suit your trading style or market conditions.
Input Parameters
The indicator offers a wide range of customizable inputs to fine-tune its behavior:
RSI Period (default: 14): Length for RSI calculation.
RSI Bullish Low/High (default: 35/70): RSI thresholds for bullish signals.
RSI Bearish High (default: 65): RSI threshold for bearish signals.
EMA Period (default: 15): Main EMA length (15 for day trading, 50 for swing).
Short/Long EMA Length (default: 3/20): For momentum oscillator.
T3 Smoothing Length (default: 5): Smooths momentum signals.
Long-Term EMA/RSI Length (default: 20/15): For long-term trend analysis.
Support/Resistance Lookback (default: 5): Periods for support/resistance levels.
MACD Fast/Slow/Signal (default: 12/26/9): MACD parameters.
Bollinger Bands Period/StdDev (default: 15/2): BB settings.
Stochastic RSI Period/Smoothing (default: 14/3/3): Stochastic RSI settings.
Uptrend/Short-Term/Long-Term Lookback (default: 2/2/5): Candles for trend detection.
ATR Period (default: 14): For volatility and price targets.
VWAP Sensitivity (default: 0.1%): Threshold for VWAP-based signals.
Volume Oscillator Period (default: 14): For volume surge detection.
Pattern Detection Threshold (default: 0.3%): Sensitivity for candlestick patterns.
ROC Period (default: 3): Rate of change for momentum.
VWAP Slope Period (default: 5): For VWAP trend analysis.
TradingView Publishing Compliance
Originality: The Canuck Trading Indicator is an original script, combining multiple technical indicators and custom logic to provide unique trading signals. It does not replicate existing public scripts.
No Guaranteed Profits: This indicator is a tool for technical analysis and does not guarantee profits. Trading involves risks, and users should conduct their own research and risk management.
Clear Instructions: The description and usage guide are detailed and accessible, ensuring users understand how to apply the indicator effectively.
No External Dependencies: The script uses only built-in Pine Script functions (e.g., ta.rsi, ta.ema, ta.vwap) and requires no external libraries or data sources.
Performance: The script is optimized for performance, using efficient calculations and adaptive parameters to minimize lag on various timeframes.
Visual Clarity: Signals are plotted with distinct shapes and colors, and the table provides a concise summary of market conditions, enhancing usability.
Limitations and Risks
Market Conditions: The indicator may generate false signals in choppy or low-liquidity markets. Always confirm signals with additional analysis.
Timeframe Sensitivity: Performance varies by timeframe; test settings on your preferred chart (e.g., 5-minute for day trading, daily for swing trading).
Risk Management: Use stop-losses and position sizing to manage risk, as suggested in alert messages (e.g., "Stop -20%").
Options Trading: Options strategies (e.g., straddles, iron condors) carry unique risks; consult a financial advisor before trading.
Feedback and Support
For questions, suggestions, or bug reports, please leave a comment on the TradingView script page or contact the author via TradingView. Your feedback helps improve the indicator for the community.
Disclaimer
The Canuck Trading Indicator is provided for educational and informational purposes only. It is not financial advice. Trading involves significant risks, and past performance is not indicative of future results. Always perform your own due diligence and consult a qualified financial advisor before making trading decisions.
Engulfing BoxThe Engulfing Box indicator is a custom script designed to visually highlight and track bullish and bearish engulfing candlestick patterns on a price chart. These patterns are often used to identify potential reversal points, making them valuable for technical analysis. The script dynamically draws colored boxes around these patterns, helping users easily spot them in the price action.
Key Features:
Bullish Engulfing Pattern: When a candlestick fully engulfs the previous bearish candle (i.e., the close of the current candle is higher than the open of the previous candle, and the open is lower than the close of the previous candle), the script draws a green box around the bullish engulfing candle. This box is drawn from the open of the previous candle to the low of the previous candle.
Bearish Engulfing Pattern: When a candlestick fully engulfs the previous bullish candle (i.e., the close of the current candle is lower than the open of the previous candle, and the open is higher than the close of the previous candle), a red box is drawn around the bearish engulfing candle. This box is drawn from the open of the previous candle to the high of the previous candle.
Dynamic Box Management: Once an engulfing pattern is detected, a box is drawn with the following attributes:
Bullish Engulfing Box: Green, with a transparent background.
Bearish Engulfing Box: Red, with a transparent background.
The box will adjust its color to gray if the price moves past certain thresholds, indicating that the engulfing pattern may no longer be as relevant.
Max Pattern Tracking: The script limits the number of engulfing boxes tracked on the chart to prevent clutter. The maximum number of bullish and bearish engulfing patterns shown is customizable (set to 500 by default), and once this limit is exceeded, older boxes are deleted to maintain a clean chart.
Pattern Expiry: Boxes are deleted if price action moves beyond the pattern’s range, ensuring that outdated signals are removed. If the low price falls below the bottom of the bullish engulfing box, or the high price rises above the top of the bearish engulfing box, the respective box is removed. Additionally, if the low price moves below the top of the bullish box or the high price exceeds the bottom of the bearish box, the box's color is changed to a more neutral tone.
How it Works:
Pattern Detection: The script compares the current price data with the previous candlestick to detect the bullish or bearish engulfing patterns.
Box Creation: If a pattern is detected, a colored box is drawn around the candle to visually highlight the pattern.
Pattern Expiry and Cleanup: The script continuously monitors past boxes. If the price moves too far from the box’s range, the box is either deleted or altered to reflect the reduced significance of the pattern.
B ox Count Limit: To avoid clutter, the script ensures that no more than 500 bullish or bearish engulfing boxes are shown at any time.
Customization:
The number of previous bars to scan for engulfing patterns can be adjusted (maxBarsback).
The maximum number of patterns displayed at any time can be modified.
Price Action StrategyThe **Price Action Strategy** is a tool designed to capture potential market reversals by utilizing classic reversal candlestick patterns such as Hammer, Shooting Star, Doji, and Pin Bar near dinamic support and resistance levels.
***Note to moderators
- The moving average was removed from the strategy because it was not suitable for the strategy and not participating in the entry or exit criteria.
- The moving average length has been replaced/renamed by the support/resistance lenght.
- The bullish engulfing and bearish engulfing patterns were also removed because in practice they were not working as entry criteria, since the candle price invariably closes far from the support/resistance level even considering the sensitivity range. There was no change in the backtest results after removing these patterns.
### Key Elements of the Strategy
1. Support and Resistance Levels
- Support and resistance are pivotal price levels where the asset has previously struggled to move lower (support) or higher (resistance). These levels act as psychological barriers where buying interest (at support) or selling interest (at resistance) often increases, potentially causing price reversals.
- In this strategy, support is calculated as the lowest low and resistance as the highest high over a 16-period length. When the price nears these levels, it indicates possible zones for a reversal, and the strategy looks for specific candlestick patterns to confirm an entry.
2. Candlestick Patterns
- This strategy uses classic reversal patterns, including:
- **Hammer**: Indicates a buy signal, suggesting rejection of lower prices.
- **Shooting Star**: Suggests a sell signal, showing rejection of higher prices.
- **Doji**: Reflects indecision and potential reversal.
- **Pin Bar**: Represents price rejection with a long shadow, often signaling a reversal.
By combining these reversal patterns with the proximity to dinamic support or resistance levels, the strategy aims to capture potential reversal movements.
3. Sensitivity Level
- The sensitivity parameter adjusts the acceptable range (Default 0.018 = 1.8%) around support and resistance levels within which reversal patterns can trigger trades (i.e. the closing price of the candle must occur within the specified range defined by the sensitivity parameter). A higher sensitivity value expands this range, potentially leading to less accurate signals, as it may allow for more false positives.
4. Entry Criteria
- **Buy (Long)**: A Hammer, Doji, or Pin Bar pattern near support.
- **Sell (Short)**: A Shooting Star, Doji, or Pin Bar near resistance.
5. Exit criteria
- Take profit = 9.5%
- Stop loss = 16%
6. No Repainting
- The Price Action Strategy is not subject to repainting.
7. Position Sizing by Equity and risk management
- This strategy has a default configuration to operate with 35% of the equity. The stop loss is set to 16% from the entry price. This way, the strategy is putting at risk about 16% of 35% of equity, that is, around 5.6% of equity for each trade. The percentage of equity and stop loss can be adjusted by the user according to their risk management.
8. Backtest results
- This strategy was subjected to deep backtest and operations in replay mode on **1000000MOGUSDT.P**, with the inclusion of transaction fees at 0.12% and slipagge of 5 ticks, and the past results have shown consistent profitability. Past results are no guarantee of future results. The strategy's backtest results may even be due to overfitting with past data.
9. Chart Visualization
- Support and resistance levels are displayed as green (support) and red (resistance) lines.
- Only the candlestick pattern that generated the entry signal to triger the trade is identified and labeled on the chart. During the operation, the occurrence of new Doji, Pin Bar, Hammer and Shooting Star patterns will not be demonstrated on the chart, since the exit criteria are based on percentage take profit and stop loss.
Doji:
Pin Bar and Doji
Shooting Star and Doji
Hammer
10. Default settings
Chart timeframe: 20 min
Moving average lenght: 16
Sensitivity: 0.018
Stop loss (%): 16
Take Profit (%): 9.5
BYBIT:1000000MOGUSDT.P
Hammers & star Patterns After a Trend
1. **Candlestick Patterns Detection:**
- **Hammers** and **Inverted Hammers** are specific candlestick patterns that can indicate potential reversals in the market.
- **Hammer**: A candle with a small body and a long lower wick, showing a possible reversal after a downtrend.
- **Inverted Hammer**: A candle with a small body and a long upper wick, indicating a possible reversal after an uptrend.
2. **Volume Consideration:**
- The script checks if these patterns occur with **high trading volume**. If the volume is significantly higher than the average volume over a certain period, the pattern is highlighted.
3. **Trend Detection:**
- The script looks for a significant trend before the pattern appears:
- **Downtrend**: A significant downward movement in price is required before a Hammer is considered.
- **Uptrend**: A significant upward movement is required before an Inverted Hammer is considered.
4. **Additional Patterns:**
- **Morning Star** and **Evening Star** patterns are also detected:
- **Morning Star**: A three-candle pattern where the first candle is a large bearish candle, followed by a small-bodied candle, and then a large bullish candle, indicating a potential reversal from downtrend to uptrend.
- **Evening Star**: The opposite pattern, signaling a potential reversal from uptrend to downtrend.
5. **Visual Indicators:**
- The script **plots arrows** and **labels** on the chart to show where these patterns occur:
- **Hammers** and **Inverted Hammers** are marked with triangle arrows.
- **Morning Stars** and **Evening Stars** are marked with labels.
In summary, this script helps traders identify key candlestick patterns that may signal potential reversals in price trends, with special emphasis on patterns that occur with high volume and after significant price movements.
CBO (Candle Bias Oscillator)The Candle Bias Oscillator (CBO) with volume and ATR scaling is a unique technical analysis tool designed to capture market sentiment through the analysis of candlestick patterns, volume momentum, and market volatility. This indicator is built on the foundation of assessing the bias within a candlestick's body and wicks, adjusted for market volatility using the Average True Range (ATR), and further refined by comparing the Rate of Change (ROC) in volume and the adjusted bias. The culmination of these calculations results in the CBO, a smoothed oscillator that highlights potential market turning points through divergence analysis.
Key Features:
Bias Calculations: Utilizes the relationship between the candle's body and wicks to determine the market's immediate bias, offering a nuanced view beyond simple price action. Have you ever wanted to quantify exactly how bullish or bearish a particular candle or candlestick pattern is? Whether it's dojis, hammers, engulfing, gravestones, evening morning star, three soldiers etc. you don't have to memorize 50 candlestick patterns anymore.
Volatility Adjustment: Employs the ATR to adjust the bias calculation, ensuring the oscillator remains relevant across varying market conditions by accounting for volatility.
Momentum and Divergence: Measures the momentum in volume and bias through ROC calculations, identifying divergence that may signal reversals or significant price movements.
Signal Line: A smoothed version of the CBO, derived from its own values, serving as a benchmark for identifying potential crossovers and divergences.
Utility and Application:
The CBO with Divergence Scaling is developed for traders who seek a deeper understanding of market dynamics beyond price movements alone. It is particularly useful for identifying potential reversals or continuation patterns early, by highlighting divergence between market sentiment (as expressed through candlestick bias) and actual volume movements. In this way, it aligns us retail traders with institutional traders and smart money. This indicator is versatile and can be applied across various time frames and market instruments, offering value to both short-term traders and long-term investors.
How to Use:
Trend Identification: The direction and value of the CBO provide insights into the prevailing market trend. A positive oscillator value may indicate bullish sentiment, while a negative value suggests bearish sentiment.
Signal Line Crossovers: Crossovers between the CBO and its signal line can be used as potential buy or sell signals. A crossover above the signal line might indicate a buying opportunity, whereas a crossover below could suggest a selling point.
Divergence: Discrepancies between the CBO and price action (especially when confirmed by volume ROC) can highlight potential reversals.
Customization and Parameters: This script allows users to adjust several parameters, including oscillator periods, signal line periods, ATR periods, and ROC periods for divergence, to best fit their trading strategy and the characteristics of the market they are analyzing.
Conclusion:
The Custom Bias Oscillator with Divergence Scaling is a comprehensive tool designed to offer traders a multi-faceted view of market conditions, combining elements of price action, volatility, and momentum. By integrating these aspects into a single indicator, it aims to provide a more rounded and actionable insight into market trends and potential turning points.
To comply with best practices and ensure clarity regarding the informational nature of the Custom Bias Oscillator (CBO) tool, it's crucial to include a disclaimer about the non-advisory nature of the script. Here's a suitable disclaimer that you can add to the end of your script description or publication:
Disclaimer:
The Custom Bias Oscillator (CBO) with Divergence Scaling and its accompanying analysis are provided as tools for educational and informational purposes only and should not be construed as financial advice. The creator of this indicator does not guarantee any specific outcomes or profit, and all users should be aware of the risks involved in trading and investing. Users should conduct their own research and consult with a professional financial advisor before making any investment decisions. The use of this indicator is at the user's own risk, and the creator bears no responsibility for any direct or consequential loss arising from any use of this tool or the information provided herein.
