ysantur trendfollowerIt is an indicator that aims to stay in the trend by generating a buy or sell signal according to the intersection of two moving averages. The first trend line is a moving average whose weights are calculated based on fibonacci numbers or golden ratio. The second trend line is achieved by smoothing the first. Thus, two trend lines, one faster and one slower, are obtained.
How does it work
- When the fast line cross over the slow line, it generates a buy signal. On the contrary, a sell signal occurs when the fast trend line cross under the slower trend
- The area between the two trend lines is colored for easier understanding. Blue cloud shows "Bullish", gray cloud shows "Bearish"
- If prices are above the blue cloud, it indicates a strong Bullish trend.
- When prices go under the gray cloud, a strong bearish trend is observed.
- Prices being in the cloud should be treated as a "Hold" signal. In this case, the fast trend will act as resistance and slow trend act as a support. Position should be changed according to the situation.
- While there is a blue cloud, that is, in the bull trend, the two trend lines moving too far from each other may indicate a possible correction / reversal.
- While there is a gray cloud, that is, in the bear trend, the divergence of two trend lines from each other may indicate a possible correction / reversal.
- While in the bearish trend, prices move far from the cloud and re-enter into the cloud in near time. When these levels are monitored carefully, a return from a possible bear trend can be caught early.
As with every indicator, it can produce false signals in the horizontal market, so it should not be used alone. I continue to improve on it to put it in less positions due to commission and slip, not to generate false signals in the horizontal market. Now I can say that it produces good results in daily periods, not bad in hourly and 4 hours periods. Backtest is required for shorter periods. Please feel free to comment and write for my improvement.
在腳本中搜尋"bear"
Efficient Work [LucF]█ OVERVIEW
Efficient Work measures the ratio of price movement from close to close ( resulting work ) over the distance traveled to the high and low before settling down at the close ( total work ). The closer the two values are, the more Efficient Work approaches its maximum value of +1 for an up move or -1 for a down move. When price does not change, Efficient Work is zero.
Higher values of Efficient Work indicate more efficient price travel between the close of two successive bars, which I interpret to be more significant, regardless of the move's amplitude. Because it measures the direction and strength of price changes rather than their amplitude, Efficient Work may be thought of as a sentiment indicator.
█ CONCEPTS
This oscillator's design stems from a few key concepts.
Relative Levels
Other than the centerline, relative rather than absolute levels are used to identify levels of interest. Accordingly, no fixed levels correspond to overbought/oversold conditions. Relative levels of interest are identified using:
• A Donchian channel (historical highs/lows).
• The oscillator's position relative to higher timeframe values.
• Oscillator levels following points in time where a divergence is identified.
Higher timeframes
Two progressively higher timeframes are used to calculate larger-context values for the oscillator. The rationale underlying the use of timeframes higher than the chart's is that, while they change less frequently than the values calculated at the chart's resolution, they are more meaningful because more work (trader activity) is required to calculate them. Combining the immediacy of values calculated at the chart's resolution to higher timeframe values achieves a compromise between responsiveness and reliability.
Divergences as points of interest rather than directional clues
A very simple interpretation of what constitutes a divergence is used. A divergence is defined as a discrepancy between any bar's direction and the direction of the signal line on that same bar. No attempt is made to attribute a directional bias to divergences when they occur. Instead, the oscillator's level is saved and subsequent movement of the oscillator relative to the saved level is what determines the bullish/bearish state of the oscillator.
Conservative coloring scheme
Several additive coloring conditions allow the bull/bear coloring of the oscillator's main line to be restricted to specific areas meeting all the selected conditions. The concept is built on the premise that most of the time, an oscillator's value should be viewed as mere noise, and that somewhat like price, it only occasionally conveys actionable information.
█ FEATURES
Plots
• Three lines can be plotted. They are named Main line , Line 2 and Line 3 . You decide which calculation to use for each line:
• The oscillator's value at the chart's resolution.
• The oscillator's value at a medium timeframe higher than the chart's resolution.
• The oscillator's value at the highest timeframe.
• An aggregate line calculated using a weighed average of the three previous lines (see the Aggregate Weights section of Inputs to configure the weights).
• The coloring conditions, divergence levels and the Hi/Lo channel always apply to the Main line, whichever calculation you decide to use for it.
• The color of lines 2 and 3 are fixed but can be set in the "Colors" section of Inputs.
• You can change the thickness of each line.
• When the aggregate line is displayed, higher timeframe values are only used in its calculation when they become available in the chart's history,
otherwise the aggregate line would appear much later on the chart. To indicate when each higher timeframe value becomes available,
a small label appears near the centerline.
• Divergences can be shown as small dots on the centerline.
• Divergence levels can be shown. The level and fill are determined by the oscillator's position relative to the last saved divergence level.
• Bull/bear markers can be displayed. They occur whenever a new bull/bear state is determined by the "Main Line Coloring Conditions".
• The Hi/Lo (Donchian) channel can be displayed, and its period defined.
• The background can display the state of any one of 11 different conditions.
• The resolutions used for the higher timeframes can be displayed to the right of the last bar's value.
• Four key values are always displayed in the Data Window (fourth icon down to the right of your chart):
oscillator values for the chart, medium and highest timeframes, and the oscillator's instant value before it is averaged.
Main Line Coloring Conditions
• Nine different conditions can be selected to determine the bull/bear coloring of the main line. All conditions set to "ON" must be met to determine the bull/bear state.
• A volatility state can also be used to filter the conditions.
• When the coloring conditions and the filter do not allow for a bull/bear state to be determined, the neutral color is used.
Signal
• Seven different averages can be used to calculate the average of the oscillator's value.
• The average's period can be set. A period of one will show the instant value of the oscillator,
provided you don't use linear regression or the Hull MA as they do not work with a period of one.
• An external signal can be used as the oscillator's instant value. If an already averaged external value is used, set the period to one in this indicator.
• For the cases where an external signal is used, a centerline value can be set.
Higher Timeframes
• The two higher timeframes are named Medium timeframe and Highest timeframe . They can be determined using one of three methods:
• Auto-steps: the higher timeframes are determined using the chart's resolution. If the chart uses a seconds resolution, for example,
the medium and highest resolutions will be 15 and 60 minutes.
• Multiples: the timeframes are calculated using a multiple of the chart's resolution, which you can set.
• Fixed: the set timeframes do not change with the chart's resolution.
Repainting
• Repainting can be controlled separately for the chart's value and the higher timeframe values.
• The default is a repainting chart value and non-repainting higher timeframe values. The Aggregate line will thus repaint by default,
as it uses the chart's value along with the higher timeframes values.
Aggregate Weights
• The weight of each component of the Aggregate line can be set.
• The default is equal weights for the three components, meaning that the chart's value accounts for one third of the weight in the Aggregate.
High Volatility
• This provides control over the volatility filter used in the Main line's coloring conditions and the background display.
• Volatility is determined to be high when the short-term ATR is greater than the long-term ATR.
Colors
• You can define your own colors for all of the oscillator's plots.
• The default colors will perform well on both white and black chart backgrounds.
Alerts
• An alert can be defined for the script. The alert will trigger whenever a bull/bear marker appears in the indicator's display.
The particular combination of coloring conditions and the display of bull/bear markers when you create the alert will thus determine when the alert triggers.
Once the alerts are created, subsequent changes to the conditions controlling the display of markers will not affect the existing alert(s).
• You can create multiple alerts from this script, each triggering on different conditions.
Backtesting & Trading Engine Signal Line
• An invisible plot named "BTE Signal" is provided. It can be used as an entry signal when connected to the PineCoders Backtesting & Trading Engine as an external input.
It will generate an entry whenever a marker is displayed.
█ NOTES
• I do not know for sure if the calculations in Efficient Work are original. I apologize if they are not.
• Because this version of Efficient Work only has access to OHLC information, it cannot measure the total distance traveled through all of a bar's ticks, but the indicator nonetheless behaves in a manner consistent with the intentions underlying its design.
For Pine coders
This code was written using the following standards:
• The PineCoders Coding Conventions for Pine .
• A modified version of the PineCoders MTF Oscillator Framework and MTF Selection Framework .
MTF Oscillator Framework [PineCoders]This framework allows Pine coders to quickly build a complete multi-timeframe oscillator from any calculation producing values around a centerline, whether the values are bounded or not. Insert your calculation in the script and you have a ready-to-publish MTF Oscillator offering a plethora of presentation options and features.
█ HOW TO USE THE FRAMEWORK
1 — Insert your calculation in the `f_signal()` function at the top of the "Helper Functions" section of the script.
2 — Change the script's name in the `study()` declaration statement and the `alertcondition()` text in the last part of the "Plots" section.
3 — Adapt the default value used to initialize the CENTERLINE constant in the script's "Constants" section.
4 — If you want to publish the script, copy/paste the following description in your new publication's description and replace the "OVERVIEW" section with a description of your calculations.
5 — Voilà!
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█ OVERVIEW
This oscillator calculates a directional value of True Range. When a bar is up, the positive value of True Range is used. A negative value is used when the bar is down. When there is no movement during the bar, a zero value is generated, even if True Range is different than zero. Because the unit of measure of True Range is price, the oscillator is unbounded (it does not have fixed upper/lower bounds).
True Range can be used as a metric for volatility, but by using a signed value, this oscillator will show the directional bias of progressively increasing/decreasing volatility, which can make it more useful than an always positive value of True Range.
The True Range calculation appeared for the first time in J. Welles Wilder's New Concepts in Technical Trading Systems book published in 1978. Wilder's objective was to provide a reliable measure of the effective movement—or range—between two bars, to measure volatility. True Range is also the building block used to calculate ATR (Average True Range), which calculates the average of True Range values over a given period using the `rma` averaging method—the same used in the calculation of another of Wilder's remarkable creations: RSI.
█ CONCEPTS
This oscillator's design stems from a few key concepts.
Relative Levels
Other than the centerline, relative rather than absolute levels are used to identify levels of interest. Accordingly, no fixed levels correspond to overbought/oversold conditions. Relative levels of interest are identified using:
• A Donchian channel (historical highs/lows).
• The oscillator's position relative to higher timeframe values.
• Oscillator levels following points in time where a divergence is identified.
Higher timeframes
Two progressively higher timeframes are used to calculate larger-context values for the oscillator. The rationale underlying the use of timeframes higher than the chart's is that, while they change less frequently than the values calculated at the chart's resolution, they are more meaningful because more work (trader activity) is required to calculate them. Combining the immediacy of values calculated at the chart's resolution to higher timeframe values achieves a compromise between responsiveness and reliability.
Divergences as points of interest rather than directional clues
A very simple interpretation of what constitutes a divergence is used. A divergence is defined as a discrepancy between any bar's direction and the direction of the signal line on that same bar. No attempt is made to attribute a directional bias to divergences when they occur. Instead, the oscillator's level is saved and subsequent movement of the oscillator relative to the saved level is what determines the bullish/bearish state of the oscillator.
Conservative coloring scheme
Several additive coloring conditions allow the bull/bear coloring of the oscillator's main line to be restricted to specific areas meeting all the selected conditions. The concept is built on the premise that most of the time, an oscillator's value should be viewed as mere noise, and that somewhat like price, it only occasionally conveys actionable information.
█ FEATURES
Plots
• Three lines can be plotted. They are named Main line , Line 2 and Line 3 . You decide which calculation to use for each line:
• The oscillator's value at the chart's resolution.
• The oscillator's value at a medium timeframe higher than the chart's resolution.
• The oscillator's value at the highest timeframe.
• An aggregate line calculated using a weighed average of the three previous lines (see the Aggregate Weights section of Inputs to configure the weights).
• The coloring conditions, divergence levels and the Hi/Lo channel always apply to the Main line, whichever calculation you decide to use for it.
• The color of lines 2 and 3 are fixed but can be set in the "Colors" section of Inputs.
• You can change the thickness of each line.
• When the aggregate line is displayed, higher timeframe values are only used in its calculation when they become available in the chart's history,
otherwise the aggregate line would appear much later on the chart. To indicate when each higher timeframe value becomes available,
a small label appears near the centerline.
• Divergences can be shown as small dots on the centerline.
• Divergence levels can be shown. The level and fill are determined by the oscillator's position relative to the last saved divergence level.
• Bull/bear markers can be displayed. They occur whenever a new bull/bear state is determined by the "Main Line Coloring Conditions".
• The Hi/Lo (Donchian) channel can be displayed, and its period defined.
• The background can display the state of any one of 11 different conditions.
• The resolutions used for the higher timeframes can be displayed to the right of the last bar's value.
• Four key values are always displayed in the Data Window (fourth icon down to the right of your chart):
oscillator values for the chart, medium and highest timeframes, and the oscillator's instant value before it is averaged.
Main Line Coloring Conditions
• Nine different conditions can be selected to determine the bull/bear coloring of the main line. All conditions set to "ON" must be met to determine the bull/bear state.
• A volatility state can also be used to filter the conditions.
• When the coloring conditions and the filter do not allow for a bull/bear state to be determined, the neutral color is used.
Signal
• Seven different averages can be used to calculate the average of the oscillator's value.
• The average's period can be set. A period of one will show the instant value of the oscillator,
provided you don't use linear regression or the Hull MA as they do not work with a period of one.
• An external signal can be used as the oscillator's instant value. If an already averaged external value is used, set the period to one in this indicator.
• For the cases where an external signal is used, a centerline value can be set.
Higher Timeframes
• The two higher timeframes are named Medium timeframe and Highest timeframe . They can be determined using one of three methods:
• Auto-steps: the higher timeframes are determined using the chart's resolution. If the chart uses a seconds resolution, for example,
the medium and highest resolutions will be 15 and 60 minutes.
• Multiples: the timeframes are calculated using a multiple of the chart's resolution, which you can set.
• Fixed: the set timeframes do not change with the chart's resolution.
Repainting
• Repainting can be controlled separately for the chart's value and the higher timeframe values.
• The default is a repainting chart value and non-repainting higher timeframe values. The Aggregate line will thus repaint by default,
as it uses the chart's value along with the higher timeframes values.
Aggregate Weights
• The weight of each component of the Aggregate line can be set.
• The default is equal weights for the three components, meaning that the chart's value accounts for one third of the weight in the Aggregate.
High Volatility
• This provides control over the volatility filter used in the Main line's coloring conditions and the background display.
• Volatility is determined to be high when the short-term ATR is greater than the long-term ATR.
Colors
• You can define your own colors for all of the oscillator's plots.
• The default colors will perform well on both white and black chart backgrounds.
Alerts
• An alert can be defined for the script. The alert will trigger whenever a bull/bear marker appears in the indicator's display.
The particular combination of coloring conditions and the display of bull/bear markers when you create the alert will thus determine when the alert triggers.
Once the alerts are created, subsequent changes to the conditions controlling the display of markers will not affect the existing alert(s).
• You can create multiple alerts from this script, each triggering on different conditions.
Backtesting & Trading Engine Signal Line
• An invisible plot named "BTE Signal" is provided. It can be used as an entry signal when connected to the PineCoders Backtesting & Trading Engine as an external input.
It will generate an entry whenever a marker is displayed.
Look first. Then leap.
Bitcoin Bullish Percent IndexHello Traders,
This is Bitcoin Bullish Percent Index script. First lets talk about what the Bullish Percent Index and how it is calculated:
"The Bullish Percent Index (BPI) is a breadth indicator based on the number of securities on Point & Figure Buy Signals, Developed by Abe Cohen in the mid-1950s. Because a security is either on a P&F Buy or Sell Signal, there is no ambiguity when it comes to P&F charts. This makes BPI a straightforward indicator with clearly defined signals."
The calculation is straightforward and simple: (Number of securities on P&F Buy signals) / (Total number of securities)
Here you can see what the P&F buy signal is:
In this script I choose 40 cryptos that is correlated ( as I see ) with BTC (including BtcUsdt). in the first part the script creates P&F chart for each security and check if there is Buy or Sell signal and sum the buy signals if there is. in the second part it creates P&F chart by using the P&F buy/sell signals coming from the securities P&F chart. because of complicated calculation the script may need a few seconds to load.
in the first part reversal value is 3 by default but you can set different values as reversal. sometimes I got better results with reversal = 5.
in BPI part reversal = 3 is used. so each box represents 2% (each X or O is a box). And this means it takes at least a 6% move in BPI for a reversal. the Bullish Percent Index favors the bulls when above 50% and the bears when below 50%. The bulls have the edge when over 50% of stocks are on a P&F Buy Signal. BPI is also considered overbought when above 70% and oversold when below 30%. BPI can move between 0 and 100.
Because of 40 securities are used in the script and all different prices, it uses Percentage scaling only. it can calculate the Percentage automatically by using the time frame of the chart or you can set it as you wish.
The Signals coming from BPI:
Bull Alert: BPI is below 30% and then forms a new column of X's (rises)
Bear Alert: BPI is above 70% and then forms a new column of O's that decline below 70%.
Bull Confirmed: BPI is on a P&F buy signal and in a column of X's (rising).
Bear Confirmed: BPI is on a P&F sell signal and in a column of O's (falling).
Bull Correction: BPI is on a P&F buy signal, but currently falling (column of O's).
Bear Correction: BPI is on a P&F sell signal, but currently rising (column of X's).
If you are not familiar with Bullish Percent Index you better search it on the net to get more info, you can find a lot of articles and web sites about BPI.
as I remember I developed the script 6-7 months ago and today I had chance to publish it as it was
Enjoy!
Momentum ZigZag Territories & Momentum
Territories:overall Bullish , overall Bearish, minor Bullish , minor Bearish
Definition of trend:
BULL - consecutive HIGHER HIGH and HIGHER LOW, once NO NEW HIGHER HIGHS is formed, doesn't mean its automatically BEARISH; Once HIGHER LOW is BROKEN and PRICE forms LOWER LOW and LOWE HIGH bellow previous HIGHER LOW its officially BEAR TREND
BEAR - consecutive LOWR LOW and LOWER LOW, once NO NEW LOWER LOW is formed, doesn't mean its automatically BULLISH ; Once LOWER HIGH is BROKEN and PRICE forms HIGHER HIGH above previous HIGH its officially BULL TREND
Minor territory is shorter trend within overall trend: as Long as overall trend is not broken , it is bound to continue once minor territory gets broken
MOMENTUM - its is the motion of trend, and character of condition
Momentum is not Strategy alone, it is part of technical analysis
momentum is used to determent : current conditions (trend , range , channel ) heath and strength
EMA 5/10/21 SMA 50/100/200The Script is mixture of both EMAs and SMAs. EMA 5/10/21 are powerful indicators for short term providing more weightage to the recent prices. SMA 50/100/200 provide the long term view.
5 Day EMA: This is a sign of strong momentum. It tracks the trend in the short term time frame. This is support in the strongest up trends. This line can only be used in low volatility trends with strong momentum. A break back above this line is a sign for me that an uptrend may be resuming. I primarily use it as an end of day trailing stop. It is rare that this line does not break intraday, even in the strongest trending markets.
• 10 day EMA: The 10 day EMA is a great moving average to use to keep you on the right side of the major market trend. It is usually the first line to be lost before any real trouble begins. It can be used as a standalone signal in some stocks and markets that tend to trend strongly in one direction for long periods.
• 21 day EMA: This is the intermediate term moving average. It is generally the last line of support in a volatile uptrend. To me, it is the inevitable reversion to the mean in a market when it finally pulls back after an extended trend.
• 50 day SMA: This is the line that strong leading stocks typically pull back to. This is usually the support level for strong uptrends. It is normal for uptrending markets to pull back to this line and find support. Most bull markets and uptrends will pull back to this level. It is generally a great “Buy the dip” level.
• 100 day SMA: This is the line that provides the support between the 50 day and the 200 day. If it does not hold as support, there is a high probability that the 200 day SMA is the next stop. This is the deeper pullback level in bull markets and uptrends. It usually presents a great risk/reward ratio in bull markets.
• 200 day SMA: Bulls like to buy dips when markets are trading above the 200 day moving average, while bears sell rallies short below it. Bears usually win below this line, as the 200 day becomes longer term resistance, and bulls buy pullbacks to the 200 day as long as the price stays above it. This line is one of the biggest signals in the market telling you which side to be on. Bull above, Bear below. Bad things happen to stocks and markets when this line is lost.
Trend following 3 EMA & Bullish Engulfing indicator for ForexHello world,
I now took the time and puzzled through my own indicator.
The idea:
Main "strategy" uses 3 EMAs (8, 13 and 21) to attain trend-relevant information.
Then we look for bullish & bearing engulfing candles which indicate and pullback into trend direction and a gain in momentum.
Trading purpose:
One could now enter with next open. SL at low/high of engulfing candle. TP at e.g. 1.25 of that candles size.
Security:
There are two security functions build in.
We check for higher timeframe confirmation.
This is done by checking if current trend is in accordance with the EMA of the next higher timframe.
Standard-deviation is 3 on default. Can be changed in the inputs.
Alerts:
Until now there is just one alertcondition programmed.
It alerts for every engulfing candle (bullish and bearish).
More will follow in further versions.
Inputs:
I build in multiple inputs.
- switch on/off the security EMA's
- define security trend backcheck
- define the higher timeframe (15min/1h, 1h/240, 4h/D, D/W)
Happy to take feedback or contr.
All the best,
c4ss10p314
Monthly MA Close Generates buy or sell signal if monthly candle closes above or below the signal MA.
Long positions only.
Inputs:
-Change timeframe MA
-Change period MA
-Use SMA or EMA
-Display MA
-Use another ticker as signal
-Select time period for backtesting
This script is not necessarily written to maximize profits, but to minimize losses.
Although it can outperform 'Buy & Hold' on some occasions when there is a multiple month bearisch trend.
You can optimise this strategy by changing the signal MA inputs.
I would suggest aiming for the best Profit Factor starting from the monthly ("M") setting.
You can always fine-tune the results at a lower timeframe.
The option to use another ticker for providing signals can give you a more stable and unified results.
For example using AMEX:SPY as signal with default parameters gives better results with NASDAQ:AAPL than if you would use NASDAQ:AAPL itself.
I used the anti-repainting function from PineCoders to prevent repainting.
This script is best used for multi-month trading positions & Daily or 4H setting of your chart.
GRAB or TrendStrength Bars with Highlights[Salty]GRAB or TrendStrength Bars with Propulsion Dots and Highlights for Squeeze Pro, CCI-Arrows, and SlowStoch
This indicator shows GRAB or TrendStrength candles and allows several moving averages to be displayed at the same time.
It has arrows and diamonds above or below the candles to show CCI values above 100 or below -100 with the arrow pointing in the direction of the momentum.
Diamonds indicate slightly weaker momentum than arrows, but still consider strong.
It has background coloring that is light green to show bullish trends and light red to show bearish trends that are derived from slow stochastics.
In general Darker colors are used for down moves and lighter colors are use to show up moves. Also, red indicates bearish, and green indicates bullish throughout.
It has yellow background to show squeezes with additional Squeeze Pro information shown at the bottom of the chart in the form of letters and momentum arrows.
L = Low compression squeeze, S = Normal Squeeze, and H = High Compression Squeeze.
It has a set of propulsion dots for each Moving Average. The trend is consider bullish when green colored dots print, and bearish when red dots print.
3 ATR Keltner channels are printed. The first two show the values used by the squeeze by default
2 Bolinger Bands are displayed based on the values used by the Squeeze by default.
1 VWAP line may be displayed.
TIP: overlaying the TICK symbol is great for confirming a bias where positive values are bullish and negative values are bearish.
Delta Volume Candles [LucF]█ OVERVIEW
This indicator plots on-chart volume delta information using candles that can replace your normal candles, tops and bottoms appended to normal candles, optional MAs of those tops and bottoms levels, a divergence channel and a chart background. The indicator calculates volume delta using intrabar analysis, meaning that it uses the lower timeframe bars constituting each chart bar.
█ CONCEPTS
Volume Delta
The volume delta concept divides a bar's volume in "up" and "down" volumes. The delta is calculated by subtracting down volume from up volume. Many calculation techniques exist to isolate up and down volume within a bar. The simplest use the polarity of interbar price changes to assign their volume to up or down slots, e.g., On Balance Volume or the Klinger Oscillator . Others such as Chaikin Money Flow use assumptions based on a bar's OHLC values. The most precise calculation method uses tick data and assigns the volume of each tick to the up or down slot depending on whether the transaction occurs at the bid or ask price. While this technique is ideal, it requires huge amounts of data on historical bars, which considerably limits the historical depth of charts and the number of symbols for which tick data is available. Furthermore, historical tick data is not yet available on TradingView.
This indicator uses intrabar analysis to achieve a compromise between the simplest and most precise methods of calculating volume delta. It is currently the most precise method usable on TradingView charts. TradingView's Volume Profile built-in indicators use it, as do the CVD - Cumulative Volume Delta Candles and CVD - Cumulative Volume Delta (Chart) indicators published from the TradingView account . My Delta Volume Channels and Volume Delta Columns Pro indicators also use intrabar analysis. Other volume delta indicators such as my Realtime 5D Profile use realtime chart updates to calculate volume delta without intrabar analysis, but that type of indicator only works in real time; they cannot calculate on historical bars.
This is the logic I use to determine the polarity of intrabars, which determines the up or down slot where its volume is added:
• If the intrabar's open and close values are different, their relative position is used.
• If the intrabar's open and close values are the same, the difference between the intrabar's close and the previous intrabar's close is used.
• As a last resort, when there is no movement during an intrabar, and it closes at the same price as the previous intrabar, the last known polarity is used.
Once all intrabars making up a chart bar have been analyzed and the up or down property of each intrabar's volume determined, the up volumes are added, and the down volumes subtracted. The resulting value is volume delta for that chart bar, which can be used as an estimate of the buying/selling pressure on an instrument. Not all markets have volume information. Without it, this indicator is useless.
Intrabar analysis
Intrabars are chart bars at a lower timeframe than the chart's. The timeframe used to access intrabars determines the number of intrabars accessible for each chart bar. On a 1H chart, each chart bar of an active market will, for example, usually contain 60 bars at the lower timeframe of 1min, provided there was market activity during each minute of the hour.
This indicator automatically calculates an appropriate lower timeframe using the chart's timeframe and the settings you use in the script's "Intrabars" section of the inputs. As it can access lower timeframes as small as seconds when available, the indicator can be used on charts at relatively small timeframes such as 1min, provided the market is active enough to produce bars at second timeframes.
The quantity of intrabars analyzed in each chart bar determines:
• The precision of calculations (more intrabars yield more precise results).
• The chart coverage of calculations (there is a 100K limit to the quantity of intrabars that can be analyzed on any chart,
so the more intrabars you analyze per chart bar, the less chart bars can be calculated by the indicator).
The information box displayed at the bottom right of the chart shows the lower timeframe used for intrabars, as well as the average number of intrabars detected for chart bars and statistics on chart coverage.
Balances
This indicator calculates five balances from volume delta values. The balances are oscillators with a zero centerline; positive values are bullish, and negative values are bearish. It is important to understand the balances as they can be used to:
• Color candle bodies.
• Calculate body and top and bottom divergences.
• Color an EMA channel.
• Color the chart's background.
• Configure markers and alerts.
The five balances are:
1 — Bar Balance : This is the only balance using instant values; it is simply the subtraction of the down volume from the up volume on the bar, so the instant volume delta for that bar.
2 — Average Balance : Calculates a distinct EMA for both the up and down volumes, and subtracts the down EMA from the up EMA.
The result is akin to MACD's histogram because it is the subtraction of two moving averages.
3 — Momentum Balance : Starts by calculating, separately for both up and down volumes, the difference between the same EMAs used in "Average Balance" and
an SMA of twice the period used for the "Average Balance" EMAs. The difference for the up side is subtracted from the difference for the down side,
and an RSI of that value is calculated and brought over the −50/+50 scale.
4 — Relative Balance : The reference values used in the calculation are the up and down EMAs used in the "Average Balance".
From those, we calculate two intermediate values using how much the instant up and down volumes on the bar exceed their respective EMA — but with a twist.
If the bar's up volume does not exceed the EMA of up volume, a zero value is used. The same goes for the down volume with the EMA of down volume.
Once we have our two intermediate values for the up and down volumes exceeding their respective MA, we subtract them. The final value is an ALMA of that subtraction.
The rationale behind using zero values when the bar's up/down volume does not exceed its EMA is to only take into account the more significant volume.
If both instant volume values exceed their MA, then the difference between the two is the signal's value.
The signal is called "relative" because the intermediate values are the difference between the instant up/down volumes and their respective MA.
This balance flatlines when the bar's up/down volumes do not exceed their EMAs, which makes it useful to spot areas where trader interest dwindles, such as consolidations.
The smaller the period of the final value's ALMA, the more easily it will flatline. These flat zones should be considered no-trade zones.
5 — Percent Balance : This balance is the ALMA of the ratio of the "Bar Balance" over the total volume for that bar.
From the balances and marker conditions, two more values are calculated:
1 — Marker Bias : This sums the up/down (+1/‒1) occurrences of the markers 1 to 4 over a period you define, so it ranges from −4 to +4, times the period.
Its calculation will depend on the modes used to calculate markers 3 and 4.
2 — Combined Balances : This is the sum of the bull/bear (+1/−1) states of each of the five balances, so it ranges from −5 to +5.
The periods for all of these balances can be configured in the "Periods" section at the bottom of the script's inputs. As you cannot see the balances on the chart, you can use my Volume Delta Columns Pro indicator in a pane; it can plot the same balances, so you will be able to analyze them.
Divergences
In the context of this indicator, a divergence is any bar where the bear/bull state of a balance (above/below its zero centerline) diverges from the polarity of a chart bar. No directional bias is assigned to divergences when they occur. Candle bodies and tops/bottoms can each be colored differently on divergences detected from distinct balances.
Divergence Channel
The divergence channel is the space between two levels (by default, the bar's open and close ) saved when divergences occur. When price (by default the close ) has breached a channel and a new divergence occurs, a new channel is created. Until that new channel is breached, bars where additional divergences occur will expand the channel's levels if the bar's price points are outside the channel.
Prices breaches of the divergence channel will change its state. Divergence channels can be in one of three different states:
• Bull (green): Price has breached the channel to the upside.
• Bear (red): Price has breached the channel to the downside.
• Neutral (gray): The channel has not yet been breached.
█ HOW TO USE THE INDICATOR
I do not make videos to explain how to use my indicators. I do, however, try hard to include in their description everything one needs to understand what they do. From there, it's up to you to explore and figure out if they can be useful in your trading practice. Communicating in videos what this description and the script's tooltips contain would make for very long videos that would likely exceed the attention span of most people who find this description too long. There is no quick way to understand an indicator such as this one because it uses many different concepts and has quite a bit of settings one can use to modify its visuals and behavior — thus how one uses it. I will happily answer questions on the inner workings of the indicator, but I do not answer questions like "How do I trade using this indicator?" A useful answer to that question would require an in-depth analysis of who you are, your trading methodology and objectives, which I do not have time for. I do not teach trading.
Start by loading the indicator on an active chart containing volume information. See here if you need help.
The default configuration displays:
• Normal candles where the bodies are only colored if the bar's volume has increased since the last bar.
If you want to use this indicator's candles, you may want to disable your chart's candles by clicking the eye icon to the right of the symbol's name in the top left of the chart.
• A top or bottom appended to the normal candles. It represents the difference between up and down volume for that bar
and is positioned at the top or bottom, depending on its polarity. If up volume is greater than down volume, a top is displayed. If down volume is greater, a bottom is plotted.
The size of tops and bottoms is determined by calculating a factor which is the proportion of volume delta over the bar's total volume.
That factor is then used to calculate the top or bottom size relative to a baseline of the average candle body size of the last 100 bars.
• An information box in the bottom right displaying intrabar and chart coverage information.
• A light red background when the intrabar volume differs from the chart's volume by more than 1%.
The script's inputs contain tooltips explaining most of the fields. I will not repeat them here. Following is a brief description of each section of the indicator's inputs which will give you an idea of what the indicator can do:
Normal Candles is where you configure the replacement candles plotted by the script. You can choose from different coloring schemes for their bodies and specify a unique color for bodies where a divergence calculated using the method you choose occurs.
Volume Tops & Botttoms is where you configure the display of tops and bottoms, and their EMAs. The EMAs are calculated from the high point of tops and the low point of bottoms. They can act as a channel to evaluate price, and you can choose to color the channel using a gradient reflecting the advances/declines in the balance of your choice.
Divergence Channel is where you set up the appearance and behavior of the divergence channel. These areas represent levels where price and volume delta information do not converge. They can be interpreted as regions with no clear direction from where one will look for breaches. You can configure the channel to take into account one or both types of divergences you have configured for candle bodies and tops/bottoms.
Background allows you to configure a gradient background color that reflects the advances/declines in the balance of your choice. You can use this to provide context to the volume delta values from bars. You can also control the background color displayed on volume discrepancies between the intrabar and the chart's timeframe.
Intrabars is where you choose the calculation mode determining the lower timeframe used to access intrabars. The indicator uses the chart's timeframe and the type of market you are on to calculate the lower timeframe. Your setting there should reflect which compromise you prefer between the precision of calculations and chart coverage. This is also where you control the display of the information box in the lower right corner of the chart.
Markers allows you to control the plotting of chart markers on different conditions. Their configuration determines when alerts generated from the indicator will fire. Note that in order to generate alerts from this script, they must be created from your chart. See this Help Center page to learn how. Only the last 500 markers will be visible on the chart, but this will not affect the generation of alerts.
Periods is where you configure the periods for the balances and the EMAs used in the indicator.
The raw values calculated by this script can be inspected using the Data Window.
█ INTERPRETATION
Rightly or wrongly, volume delta is considered by many a useful complement to the interpretation of price action. I use it extensively in an attempt to find convergence between my read of volume delta and price movement — not so much as a predictor of future price movement. No system or person can predict the future. Accordingly, I consider people who speak or act as if they know the future with certainty to be dangerous to themselves and others; they are charlatans, imprudent or blissfully ignorant.
I try to avoid elaborate volume delta interpretation schemes involving too many variables and prefer to keep things simple:
• Trends that have more chances of continuing should be accompanied by VD of the same polarity.
In trends, I am looking for "slow and steady". I work from the assumption that traders and systems often overreact, which translates into unproductive volatility.
Wild trends are more susceptible to overreactions.
• I prefer steady VD values over wildly increasing ones, as large VD increases often come with increased price volatility, which can backfire.
Large VD values caused by stopping volume will also often occur on trend reversals with abnormally high candles.
• Prices escaping divergence channels may be leading a trend in that direction, although there is no telling how long that trend will last; could be just a few bars or hundreds.
When price is in a channel, shifts in VD balances can sometimes give us an idea of the direction where price has the most chance of breaking.
• Dwindling VD will often indicate trend exhaustion and predate reversals by many bars, but the problem is that mere pauses in a trend will often produce the same behavior in VD.
I think it is too perilous to infer rigidly from VD decreases.
Divergence Channel
Here I have configured the divergence channels to be visible. First, I set the bodies to display divergences on the default Bar Balance. They are indicated by yellow bodies. Then I activated the divergence channels by choosing to draw levels on body divergences and checked the "Fill" checkbox to fill the channel with the same color as the levels. The divergence channel is best understood as a direction-less area from where a breach can be acted on if other variables converge with the breach's direction:
Tops and Bottoms EMAs
I find these EMAs rather interesting. They have no equivalent elsewhere, as they are calculated from the top and bottom values this indicator plots. The only similarity they have with volume-weighted MAs, including VWAP, is that they use price and volume. This indicator's Tops and Bottoms EMAs, however, use the price and volume delta. While the channel differs from other channels in how it is calculated, it can be used like others, as a baseline from which to evaluate price movement or, alternatively, as stop levels. Remember that you can change the period used for the EMAs in the "Periods" section of the inputs.
This chart shows the EMAs in action, filled with a gradient representing the advances/decline from the Momentum balance. Notice the anomaly in the chart's latest bars where the Momentum balance gradient has been indicating a bullish bias for some time, during which price was mostly below the EMAs. Price has just broken above the channel on positive VD. My interpretation of this situation would be that it is a risky opportunity for a long trade in the larger context where the market has been in a downtrend since the 5th. Intrepid traders choosing to enter here could do so with a "make or break" tight stop that will minimize their losses should the market continue its downtrend while hopefully preserving the potential upside of price continuing on the longer-term uptrend prevalent since the 28th:
█ NOTES
Volume
If you use indicators such as this one which depends on volume information, it is important to realize that the volume data they consume comes from data feeds, and that all data feeds are NOT created equally. Those who create the data feeds we use must make decisions concerning the nature of the transactions they tally and the way they are tallied in each feed, and these decisions affect the nature of our volume data. My Volume X-ray publication discusses some of the reasons why volume information from different timeframes, brokers/exchanges or sectors may vary considerably. I encourage you to read it. This indicator's display of a warning through a background color on volume discrepancies between the timeframe used to access intrabars and the chart's timeframe is an attempt to help you realize these variations in feeds. Don't take things for granted, and understand that the quality of a given feed's volume information affects the quality of the results this indicator calculates.
Markets as ecosystems
I believe it is perilous to think that behavioral patterns you discover in one market through the lens of this or any other indicator will necessarily port to other markets. While this may sometimes be the case, it will often not. Why is that? Because each market is its own ecosystem. As cities do, all markets share some common characteristics, but they also all have their idiosyncrasies. A proportion of a city's inhabitants is always composed of outsiders who come and go, but a core population of regulars and systems is usually the force that actually defines most of the city's observable characteristics. I believe markets work somewhat the same way; they may look the same, but if you live there for a while and pay attention, you will notice the idiosyncrasies. Some things that work in some markets will, accordingly, not work in others. Please keep that in mind when you draw conclusions.
On Up/Down or Buy/Sell Volume
Buying or selling volume are misnomers, as every unit of volume transacted is both bought and sold by two different traders. While this does not keep me from using the terms, there is no such thing as “buy only” or “sell only” volume. Trader lingo is riddled with peculiarities. Without access to order book information, traders work with the assumption that when price moves up during a bar, there was more buying pressure than selling pressure, just as when buy market orders take out limit ask orders in the order book at successively higher levels. The built-in volume indicator available on TradingView uses this logic to color the volume columns green or red. While this script’s calculations are more precise because it analyses intrabars to calculate its information, it uses pretty much the same imperfect logic. Until Pine scripts can have access to how much volume was transacted at the bid/ask prices, our volume delta calculations will remain a mere proxy.
Repainting
• The values calculated on the realtime bar will update as new information comes from the feed.
• Historical values may recalculate if the historical feed is updated or when calculations start from a new point in history.
• Markers and alerts will not repaint as they only occur on a bar's close. Keep this in mind when viewing markers on historical bars,
where one could understandably and incorrectly assume they appear at the bar's open.
To learn more about repainting, see the Pine Script™ User Manual's page on the subject .
Superfluity
In "The Bed of Procrustes", Nassim Nicholas Taleb writes: To bankrupt a fool, give him information . This indicator can display a lot of information. The inevitable adaptation period you will need to figure out how to use it should help you eliminate all the visuals you do not need. The more you eliminate, the easier it will be to focus on those that are the most useful to your trading practice. Don't be a fool.
█ THANKS
Thanks to alexgrover for his Dekidaka-Ashi indicator. His volume plots on candles were the inspiration for my top/bottom plots.
Kudos to PineCoders for their libraries. I use two of them in this script: Time and lower_tf .
The first versions of this script used functionality that I would not have known about were it not for these two guys:
— A guy called Kuan who commented on a Backtest Rookies presentation of their Volume Profile indicator.
— theheirophant , my partner in the exploration of the sometimes weird abysses of request.security() ’s behavior at lower timeframes.
Commercial Movement Index-BuschiEnglish
Inspired by the book "The Commitments of Traders Bible" by Stephen Briese, this indicator is a follow-up of my already published "Commercial Index-Buschi".
Here, the Commercial Index isn't shown in values from 0 to 100, but in how far the value changed from a given timeframe (default Movement Reference: 6 weeks). Therefore it ranges from 100 (bullish move from the Commercials during the last weeks) to -100 (bearish move).
Deutsch
Inspiriert durch das Buch "The Commitments of Traders Bible" by Stephen Briese, ist dieser Indikator eine Weiterentwicklung meines bereits veröffentlichten Skriptes "Commercial Index-Buschi".
Hier wird der Commercial Index nicht in Werten von 0 bis 100 angezeigt, sondern in wieweit er sich innerhalb eines vorgegebenen Zeitfensters (Standard: Movement Reference: 6 Wochen) verändert hat. Daher schwankt er zwischen 100 (bullishe Bewegung der Commercials innerhalb der letzten Wochen) und -100 (bearishe Bewegung).
Histogram (MACD) with DivergencesThe focus with this MACD plot is solely towards the Histogram .
MACD & Signal can be made visible, but is made invisible by default.
The brighter line (green-red) is derived from the 'usual' MACD, the initial settings are completely different though:
- Fast Length 1
- 'Slow' Length 7
This is Histogram (1)
When this line crosses the 0 - line, this can give a nice early BUY - SELL sign,
especially combined with the 2nd Histogram, which uses a Slow Length of 49.
This latter Histogram (2) is filled ("Area") with a green/orange colour.
When Histogram (2) cross the 0 - line, this is visible as a green/red 'Cross'
These "Crosses", compared with the candles, gives possible/probable Support/Resistance lines.
Example,
if you bought on 5 March (Green Cross), and sold on 14 July, you'd have a nice profit!
A nice green area filled Histogram (2) (above 0 - line) can be considered as very Bullish,
an orange area filled Histogram (2) (below 0 - line) can be considered as Bearish.
Histogram (1) line can be used for shorter term Buy - Sell trades, the larger Bullish/Bearish Trend (of Histogram (2)) taking into account!
(see yellow dotted lines on the image).
All this is combined with a "Divergence" plot (with thanks to "Coingrats" (and "BabyWhale83") for the hard work!)
The small, more bright Triangles are triggered by Histogram (1)
The larger Triangles are triggered by Histogram (2)
- Green Triangles are Bullish Divergences
- Red Triangles are Bearish Divergences
- White Triangles (pointing upwards/downwards) are Bullish/Bearish Hidden Divergences
Very importantly, always combine the Divergence Triangles with another tool for confirmation, for example a MACD or RSI which produced an extra confirmation.
The movement of Histogram (2) above or below the 0 - line can be a confirmation as well.
As default these 3 options are enabled (for me this gives better results):
Simple MA (Oscillator)
Simple MA (Signal Line)
Simple MA (Signal Line 2)
This indicator can be used with normal "Candles", "Line", or "Heikin Ashi" (gives some differences)
Hope this is original and helpful!
Visual RSI [LucF]Visual RSI offers a different way of looking at RSI by providing a composite representation of 9 different RSI-generated components. Instead of focusing on one line only, this approach blends multiple sources to provide the viewer with a larger context RSI-based picture.
For those who don’t want to read
• Green in bullish (>50) zone is the most bullish.
• Red in bullish zone doesn’t necessarily mean bearish—it just means bullish strength is weakening. It may be just a pause before a reprise or exhaustion signalling a reversal—impossible to tell.
• The same in inverse applies to the bearish zone (<50).
For those who want to understand
The nine components making up Visual RSI are:
• a current timeframe RSI
• a higher timeframe RSI
• the delta between these two RSI lines
• for each of these three basic components, two independent Bollinger band: one calculated for the bullish section of the scale (>50) and a separate one calculated for the lower bearish region.
Dual BBs
In my view, RSI’s position with regards to the centerline is much more important than its position in extreme areas. Why? Because the building block of RSI is the ratio of the averages of up/down moves during the RSI period. When the average of ups is greater, RSI is > 50. So while a rising signal starting from 20 let’s say, indicates that the rate of change is increasing, only when it crosses 50 can we say that sentiment balance has truly become bullish, and this information is more reliable than the signal being at a level corresponding to whatever estimate we make of what constitutes an extreme value. In my landscape, the general balance of a ratio provides more valuable information than the ratio’s exact value.
The idea behind the dual BBs is to provide independent tracking information for both halves of the indicator’s space, which I find more useful than the normal method of simply adding a multiple of the standard deviation on both sides of the mean. With dual BBs, the upper BB will never go lower than the indicator’s centerline, and the lower BB will never go higher. The upper BB focuses on upper-bound volatility when the signal is bearish, and the lower BB focuses on downside volatility when the signal is bearish.
The functions used to calculate the independent BBs are reusable on other signals if a centerline can be defined for them. A clamping percentage is implemented, so that when a BB line is hugging the centerline it clamps to it. This helps in providing earlier signals when they use the BB line states.
Providing context to RSI
What RSI measures indirectly is the balance in the rate of change—or the speed of price movement, but not its instant value, otherwise RSI would be even noisier. More precisely, RSI represents the relative strength of the up/down movement in the last n bars of RSI’s length, with 14 often used because that’s what Wilder proposed (Visual RSI’s defaults are 20 for the current timeframe and 40 for the higher timeframe). At every bar, a new value is added to the equation and an old value carrying equal weight is dropped, so a large dropped off value will have more impact on RSI’s value if the new bar’s move is small. This accounts for some of RSI’s speed in identifying exhaustion after important moves, but almost for some of its noise.
Visual RSI is the result of trying to drown RSI’s noise in the context of other informational streams, while simultaneously providing even faster information than RSI alone, by giving more visual weight to the delta between the current and higher timeframe RSI’s.
How to read Visual RSI
The default settings show all 9 basic components as green/red areas of intensities varying with their importance. The most intense colors are reserved for the delta RSI and the BBs have the lightest intensities. The individual lines of components are intentionally difficult to distinguish so that focus is first on the general picture, including the all-important six-state background, and then on the delta RSI.
One entry setup could be reversals in a larger trend context, so low pivots of the delta in a fully bullish context (a green background in the upper section of the indicator), and inversely, high pivots in a fully bearish context (a red background in the lower section of the indicator).
Please resist the common misconception, when interpreting RSI, that a reversal in the signal will necessarily lead to a reversal in price. Each trend has its rhythm. Only machine-generated price action can progress regularly. It’s normal for trends to take a breather for some time before they continue or reverse, as traders driving the trend experience emotional fatigue and gradual fear. RSI reversals merely signify that such a breather has occurred—nothing more. Only the larger context can provide information that can situate that pause and put more meaningful odds on it having more probability of continuing in one direction or the other. This is the reasoning behind the setup just described.
Features
• All components can be hidden, displayed as a simple line, a uniformly colored fill, or a green/red fill (the default).
• The background can be colored using 9 different methods, including 3 six-state methods using the rising/falling BB lines of the 3 basic components. These six states allow for bullish/bearish/neutral sentiment in both the upper and lower regions of the indicator. A bearish (dark red) background in the bullish (>50) section of the indicator represents decreasing bullishness. A bearish (slightly brighter red) in the bearish (<50) section of the indicator means incresingly bearish sentiment. The six-state backgrounds allow for neutral (no color) sentiment when no compelling signs can be found to conclude anything with meaningful odds. The default background uses the six-state method on the higher timeframe RSI’s BBs because I find it the most useful, as it represents the largest—and slowest—context sentiment among all the indicator’s components.
• A thin status bar in the top part of the indicator also allows selection of the same 9 methods to color it. The default is a triple-state system using the rising/falling characteristics of the current timeframe RSI’s BBs to provide a short-term counterbalance to the long-term background.
• Three different markers can be configured using approximately 70 permutations each, each filtered by 20 different filter permutations. When modification of the relevant parameters in the script’s Settings/Settings/Parameters section is added, possibilities are almost endless. If the generated signals are then fed into the PineCoders Engine and combined with the Engine’s own options, the permutations go up another order of magnitude, and changes to any setting can be instantly evaluated using the Engine’s backtesting results.
• Five simple filters can be combined. They are additive. They include volume-related conditions and a chandelier, which I find useful because both volume and volatility (the chandelier using highs/lows and ATR) are sensible complementary sources to RSI’s momentum information. The filter’s state can be shown as a thin line at the bottom of the indicator.
• Alerts can be configured using any of the marker/filter combinations mentioned. As usual, once your markers/filters are set up the way you want, create your alert from the chart/timeframe you want the alert to run on and be sure to use the “Once Per Bar Close” triggering condition. Use an alert message that will remind you of which combination of markers were used when creating the alert.
• A plot providing entry signals for the PineCoders Backtesting & Trading Engine is supplied. It will use whichever marker/filter configuration is active to generate signals.
• All higher timeframe information is non-repainting. Higher timeframe lines can be smoothed (the default). The selection of the higher timeframe can be made using 3 different methods:
1. By steps (if current timeframe <= 1 minute: 60 min, <= 60 min: 1D, <= 6H: 3D, <= 1D: 1W, <=1W: 1M, >1W: 12M)
2. By a user-defined multiple of the current timeframe
3. Using a fixed timeframe
Thanks to:
• Alex Orekhov aka @everget for the chandelier code.
• @RicardoSantos who through a small remark early on, unknowingly put me on the track of eliminating noise through visual crowding.
• The brilliant guys in the PineCoders Pro room for your knowledge, limitless creativity and constant companionship.
How To Use Dynamic ZonesExample of how to apply and use Dynamic Zones with an indicator by injecting it's source into my adaptation of the original idea by Leo Zamansky, Ph.D., and David Stendahl.
• Load your desired oscillating indicator on your chart (CCI, RSI, etc).
• Load my "How To Use Dynamic Zones" indicator on your chart.
• In the "How To Use Dynamic Zones" indicator settings choose your desired oscillating indicator as the Oscillator Source.
You will now have dynamic overbought and oversold levels. I have also included alerts which may be used to indicate when these conditions occur.
If desired you may repeat the above process by loading additional indicators along with additional copies of my indicator to use with each oscillator.
Oscillator Source: CLOSE uses your chosen indicator as a source or you may use price as a source
Sample Length: 70 uses number of previous values for evaluating
Hi is Above X% of Sample: 88 sets overbought zone
Lo is Below X% of Sample: 88 sets oversold zone
The simplest explanation of what these default settings are doing is that they take 70 previous values of your chosen indicator, then create an overbought level that is above 88% of those previous values and an oversold level that is below 88% of those previous values. As new bars form the levels are dynamically reevaluated and updated.
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"This investing style follows a very simple form of logic: Enter the market only when an oscillator has moved far above or below traditional trading levels. However, these oscillator driven systems lack the ability to evolve with the market because they use fixed buy and sell zones. Traders typically use one set of buy and sell zones for a bull market and substantially different zones for a bear market. And therein lies the problem.
Once traders begin introducing their market opinions into trading equations, by changing the zones, they negate the system’s mechanical nature. The objective is to have a system automatically define its own buy and sell zones and thereby profitably trade in any market — bull or bear. Dynamic zones offer a solution to the problem of fixed buy and sell zones for any oscillator-driven system."
Reference: Stocks & Commodities V15:7 (306-310): Dynamic Zones by Leo Zamansky, Ph.D., and David Stendahl
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NOTICE: This is an example script and not meant to be used as an actual strategy. By using this script or any portion thereof, you acknowledge that you have read and understood that this is for research purposes only and I am not responsible for any financial losses you may incur by using this script!
Total Power IndicatorHello traders!
This indicator was originally developed by Daniel Fernandez (Currency Trader magazine, 2011).
It is based on the two well-known indicators by Dr. Alexander Elder - Bulls Power and Bears Power.
Signals
1) Long when Bull and Total lines indicate 100 (it happens rarely)
2) Short when Bear and Total lines indicate 100 (it happens rarely)
3) Bull and Bear lines crossovers
4) Long when Bull line crosses Total line from below
5) Short when Bear line crosses Total line from below
6) Long/Short when Bull/Bear lines cross adjustable level.
Like and follow for more open source indicators!
Happy Trading!
Collar Color IndicatorThe collar color ribbon indicator uses 4 different colors to help you deciding what to do with your position.
It uses a combination of MACD, RSI, SMA5 and SMA20 indicators to predict possible changes stock movement.
Green color
The indicator displays green when the RSI > 50, the MACD > 0 and the SMA5 > SMA20
Green indicates an upward (bullish) trend
When your long position is protected by a PUT option, the first green signal (after a series of 'non' green signals) indicates you could sell your PUT option as the trend becomes bullish.
In case of a short position, you should be protected by a CALL option
Yellow color
The indicator displays yellow when 1 of 3 the 'green' conditions aren't met
Yellow indicates that an upwards (bullish) trend is weakening or that a downwards (bearish) trend is strongly transitioning towards an upward (bullish) trend
If going short then you should consider buying a CALL option to protect your position
Orange color
The indicator displays orange when 2 of the 3 'green' conditions aren't met
Orange indicates that an upwards bullish trend is strongly transitioning towards a downwards bearish trend or that a downwards (bearish) trend is weakening
If going long then this you should considering buying a PUT option to protect your position
Red color
The indicator displays red when none of the 'green' conditions are met
Red indicates an downwards (bearish) trend
When your short position is protected by a CALL option, the first red signal (after a series of 'non' red signals) indicates you could sell your CALL option as the trend becomes bearish.
In case of a long position, you should be protected by a PUT option
Cloud, MA & BB Signal ConvergenceA combination of 3 popular lagging indicators (Ichimoku Cloud, Moving Average and Bollinger Bands) that generates a signal when all 3 of those lagging indicators are bullish or bearish.
Bullish is represented with a green dot above price. Bearish is represented with a red dot below price.
PARAMETERS:
1) Ichimoku Cloud
-Bullish Kumo
-Price above Kumo
-Chikou span above price
-Tenkan-sen and Kijun-sen above Kumo
-Tenkan-sen above Kijun-sen
-Price above Tenkan-sen
*opposite for bearish
Note: cloud settings is the popular settings for cryptocurrency advocated by @CarpeNoctom.
2) Moving Average
-MA1 greater than MA2
-MA2 greater than MA3
-MA3 greater than MA4
-MA4 greater than MA5
*opposite for bearish
Note: Put your MA setting from lowest to highest on MA1-MA5 respectively to generate more accurate signals.
3) Bollinger Bands
-price closed above upper band at least once
*opposite for bearish
Note: Put your MA setting from lowest to highest on MA1-MA5 respectively to generate more accurate signals.
P.S. Still on early alpha stage.
Institutional BiasShows what we at TRI call the institutional bias, i.e. a bull bias when 9 ema is above 18 ema and a bear bias when the 9 ema is below the 18 ema.
Plots the 9 and 18 ema, and fills the background green when the institutional bias is bullish and red when it is bearish.
Volume Strength Candles / Colored BarsIs Price Action Higher or Lower on STRONG or WEAK VOLUME from lookback
(Strong or Weak Bulls // Strong or Weak Bears)
Candles / Bars Indicate the Following (default 13 period lookback / Length)
MAROON Bear Candle with STRONG VOLUME more than 150% of the lookback / length (13 default), STRONG Bear Candle Confirmed With Volume
RED Bear Candle while VOLUME is BETWEEN 50% & 150% of the Lookback / Length (13 default), Neutral Bear Volume Neither strong or weak
ORANGE Bear Candle with WEAK VOLUME (Less than 50% of the Length / Lookback)
DARK GREEN Bull Candle with STRONG VOLUME MORE than 150% of lookback
GREEN Bull Candle with Neutral VOLUME BETWEEN 50% & 150% of the lookback / Length
AQUA Bull Candle with WEAK VOLUME less than 50% of the Lookback
Is price confirmed by volume?
Can Change the Lookback / Length from 13
Can Change the Colors and Transparency to easily see based off your chart background colors I recommend ZERO Transparency to easily identify volume strength (i use white background but many use black or other)
Bitfinex Bitcoin BullishnessBased on contrary opinion in futures, I've adjusted this to Bitcoin, more thoroughly Bitfinex margin longs & shorts. Those unfamiliar with the concept, contrary opinion illustrates the psychological sentiment in the market by determining the degree of bullishness or bearishness among participants in the market.
The principle holds that when the majority of people agree on anything, they are generally wrong, so following the principle you would analyse and look to take the other side of the trades.
Consider this, once the market is extremely bullish, all bulls have already entered the market to an extent that one can't commit any more funds to the position. Even though Bitfinex margin positions are not like future trading, that every short must have someone taking the long side, one should understand that the majority of people do not make money on the market, so whenever this indicator goes too low or too high, one should look for a trend reversal.
This indicator is in the range of 0 to 1 and the neutral position for a "healthy" market is 0.55ish. Some adjustments should probably be made according to the cryptocurrency markets and I might add this in the future updates, but as of now it's a good indicator for forecasts and to get a bigger picture on a timeframe of 1 DAY or longer charts.
The base of the indicator is simple, amount of longs divided by the sum of shorts and longs.
Also you can see, how only now, 10th of April, we are hitting new lows in the bearishness of the market.
Two Bar Break Line Alerts R1.0 by JustUncleLThis indicator with default settings is designed for BINARY OPTIONS trading. The indicator can also be used for Forex trading with some setting changes. The script shows Two Bar Pullback Break lines and alerts when those Break lines are Touched (broken) creating a short term momentum entry condition.
For a Bullish Break (Green Up Arrow) to occur: first must have two (or three) consecutive bear (red) candles which is followed by a bull (green) candle creating a pivot point. The breakout occurs then the High of the current Bull (green) exceeds the highest point of the previous two (or three) pivotal bear candles. The green channel Line shows where the current Bullish BreakOut occurs.
For a Bearish Break (Red Down Arrow) to occur: first must have two (or three) consecutive bull (green) candles which is followed by a bear (red) candle creating a pivot point. The breakout occurs when the Low of the current Bear (red) drops below the lowest point of the previous two (or three) pivotal Bull candles. The red channel Line shows where the current Bearish BreakOut occurs.
The break Line Arrows can optionally be filtered by the Coloured MA (enabled by default), a longer term directional MA (disabled by default) and/or a MACD condition (enabled by default) as a momentum filter.
You can optionally select three Bar break lines instead of two. The three bar break lines are actually equivalent to Guppy's Three Bar Count Back Line method for trade entries (see Guppy's video reference below).
Included in this indicator is an ability to display some basic Binary Option statistics, when enabled (enabled by default) it shows Successful Bars in Yellow and failed Bars in Black and the last Nine numbers on the script title line represent the Binary option Statistics in order:
%ITM rate
Total orders
Successful Orders
Failed Orders
Total candles tested
Candles per Day
Trades per Day
Max Consecutive Wins
Max Consecutive Losses
You can start the Binary Option statistics from a specific Date, which is handy for checking more recent history.
HINTS:
BINARY OPTIONS trading: use 5min, 15m, 1hr or even Daily charts. Trade after the price touches one of the Breakout lines and the Arrow first appears. Wait for the price to come back from Break Line by 1 or 2 pips, the alert arrow must stay on and candle change to black, then take Binary trade expiry End of Candle. If price pull back and arrow turns off, don't trade this candle, move on you probably don't have momentum, there will be plenty of other trigger events. The backtesting results are good with ITM rates 65% to 72% on many currency pairs, commodities and indices. Realtime trading has confirmed the backtesting results and they could even be bettered, provided you are selective on which signals to trade (strong MACD support etc), that you are patient and disciplined to this trading method.
FOREX trading: the default settings should work with scalping. For longer term trades try with settings change to a more standard MACD filter or slower to catch the longer term momentum swings and the idea would be to trade the first Break Line alert that occurs after a decent Pullback in the direction of the trend. Setting the SL to just above/below the Pivot High/Low and set target to two or three times SL.
References:
"Fundamentals of Price Action Trading for Forex, Stocks, Options and Futures" video:
www.youtube.com
Other videos by "basecamptrading" on Naked Trading.
"Taking Profits in Today's Market by Daryl Guppy" video:
www.youtube.com
NG [Simple Harmonic Oscillator]The SHO is a bounded oscillator for the simple harmonic index that calculates the period of the market’s cycle.
The oscillator is used for short and intermediate terms and moves within a range of -100 to 100 percent.
The SHO has overbought and oversold levels at +40 and -40, respectively.
At extreme periods, the oscillator may reach the levels of +60 and -60.
The zero level demonstrates an equilibrium between the periods of bulls and bears.
The SHO oscillates between +40 and -40.
The crossover at those levels creates buy and sell signals.
In an uptrend, the SHO fluctuates between 0 and +40 where the bulls are controlling the market.
On the contrary, the SHO fluctuates between 0 and -40 during downtrends where the bears controlthe market.
Reaching the extreme level -60 in an uptrend is a sign of weakness.
Force Index with Buy on Dip strategyThis charts has 2 indicators
1 - Force Index
This indicator is based on Dr Alexander Elder ForceIndex indicator with relate price to volume by multiplying net change and volume.
- GREEN Bar indicates Bull is in control
- RED Bar indicates Bear is in control.
LENGTH of the bar indicate the strength of Bull or Bear.
Normally there's potential BUY if the RED bar turned GREEN and SELL if GREEN to RED.
2 - Stochastic momentum
Stochastic momentum is to detect potential Reversal where BLUE bar will appear if :-
- Oversold - Stochastic less than 35
- Closing price is higher than last 2 High (Fast Turtle)
// Note : Best use with "EMA Indicators with BUY sell Signal"
