Market Pressure Index [AlgoAlpha]The Market Pressure Index is a cutting-edge trading tool designed to measure and visualize bullish and bearish momentum through a unique blend of volatility analysis and dynamic smoothing techniques. This indicator provides traders with an intuitive understanding of market pressure, making it easier to identify trend shifts, breakout opportunities, and key moments to take profit. Perfect for scalpers and swing traders looking for a strategic edge in volatile markets.
Key Features:
🔎 Bullish and Bearish Volatility Separation : Dynamically calculates and displays bullish and bearish momentum separately, helping traders assess market direction with precision.
🎨 Customizable Appearance: Set your preferred colors for bullish and bearish signals to match your chart's theme.
📊 Deviation-Based Upper Band : Tracks extreme volatility levels using a configurable deviation multiplier, highlighting potential breakout points.
📈 Real-Time Signal Alerts : Provides alerts for bullish and bearish crossovers, as well as take-profit signals, ensuring you never miss key market movements.
⚡ Gradient-Based Visualization : Uses color gradients to depict the intensity of market pressure, making it easy to spot changes in momentum at a glance.
How to Use:
Add the Indicator : Add the Market Pressure Index to your TradingView chart by clicking the star icon. Customize inputs like the pressure lookback period, deviation settings, and colors to fit your trading style.
Interpret the Signals : Monitor the bullish and bearish momentum columns to gauge market direction. Look for crossovers to signal potential trend changes.
Take Action : Use alerts for breakouts above the upper band or for take-profit levels to enhance your trade execution.
How It Works:
The Market Pressure Index separates bullish and bearish momentum by analyzing price movement (close vs. open) and volatility. These values are smoothed using Hull Moving Averages (HMA) to highlight trends while minimizing noise. A deviation-based upper band dynamically tracks market extremes, signaling breakout zones. Color gradients depict the intensity of momentum, offering a clear, visually intuitive representation of market pressure. Alerts are triggered when significant crossovers or take-profit conditions occur, giving traders actionable insights without constant chart monitoring.
在腳本中搜尋"breakout"
Waldo RSI :oWaldo RSI :o Indicator Guide
The Waldo RSI :o indicator is designed to complement the "Waldo RSI Overlay :o" by providing an RSI-based analysis on TradingView, focusing on macro shifts in market trends. Here's a comprehensive guide on how to use this indicator:
Key Features:
RSI Settings:
RSI Source: Choose from ON RSI, ON HIGH, ON LOW, ON CLOSE, or ON OPEN to determine how RSI calculates pivots.
RSI Settings:
Source: Default is (H+L)/2, but you can select any price for RSI calculation.
Length: Default RSI length is 7, which can be adjusted for sensitivity.
Trend Lines:
Show Trend Lines: Option to display trend lines based on RSI pivot points.
Zigzag Length: Determines pivot point sensitivity.
Confirm Length: Validates pivot points (default is 3).
Colors: Customize colors for Higher Highs (HH), Lower Highs (LH), Higher Lows (HL), and Lower Lows (LL) on the RSI.
Label Size and Line Width: Adjust the appearance of labels and lines.
Divergences:
Classic Divergences:
Show Classic Div: Toggle to reveal divergences where RSI and price move in opposite directions.
Colors: Set different colors for bullish and bearish divergence indicators.
Transparency and Line Width: Control the visual impact of divergence signals.
Hidden Divergences:
Similar settings for identifying hidden divergences, suggest trend continuation.
Breakout/Breakdown:
Show Breakout/Breakdown: Generates signals for RSI breakouts or breakdowns, used by "Waldo RSI Overlay :o" for visual chart signals.
Overbought/Oversold Zones:
Show Overbought and OverSold Zones: Highlights when RSI goes above 70 (overbought) or below 30 (oversold).
Moving Averages on RSI:
The default Moving Average (MA) settings are tailored to capture macro shifts in market trends:
Show Moving Averages: Option to overlay two MAs on the RSI for trend confirmation:
Fast RSI MA:
RSI Period: 50 (this is the period over which the RSI is calculated).
MA Length: 50 (the number of periods used for the moving average of the RSI).
Slow RSI MA:
RSI Period: 50 (same as fast for consistency in RSI calculation).
MA Length: 200 (longer term for capturing broader trends).
Crossover Signals: The RSI changes color from red to green based on these moving average crossovers:
When the Fast MA (50 period) crosses above the Slow MA (200 period), the RSI turns green, indicating potential bullish conditions or momentum shift.
Conversely, when the Fast MA crosses below the Slow MA, the RSI turns red, suggesting bearish conditions or a shift back towards a downtrend.
This 50-period RSI crossover setting is used to identify overall macro shifts in the market, providing a clear visual cue for traders looking at longer-term trends.
Ghost Lines (Optional):
Ghost Lines: Option to limit how far RSI trend lines extend, helping to keep the chart less cluttered.
How to Use the Indicator:
Setup:
Configure RSI by choosing the source and setting the length to match your trading style.
Set the zigzag and confirm lengths for appropriate pivot detection.
Trend Analysis:
Monitor the RSI for trend changes using the colored trend lines and labels.
Divergence Detection:
Look for RSI and price divergences to anticipate potential reversals or continuations.
Breakout/Breakdown:
Use these signals in conjunction with "Waldo RSI Overlay :o" for price action confirmation.
Overbought/Oversold:
Identify when the market might be due for a correction or continued momentum.
Moving Averages:
Focus on the color changes in RSI to understand macro trend shifts with the default 50/200 period setup.
Ghost Lines:
Enable for a cleaner chart if you don't need trend lines extending indefinitely.
Usage Tips:
Combine with other indicators for confirmation, as no single tool is foolproof.
Adjust settings to suit different market conditions or trading timeframes.
Use in tandem with "Waldo RSI Overlay :o" for a full trading signal system.
Remember, trading involves significant risk, and historical data does not guarantee future performance. Use this indicator as part of a broader trading strategy.
Price Level Break & Candle Pattern DetectorPrice Level Break & Candle Pattern Detector
A powerful and customizable indicator that combines price level breakout detection with candlestick pattern analysis to generate precise trading signals.
Key Features
Monitors user-defined price levels for breakouts
Identifies bullish and bearish candle patterns
Generates real-time alerts when both conditions are met
Customizable alert settings for improved trade management
How It Works
The indicator continuously monitors price action around specified price levels. When price breaks through these levels AND forms either a bullish or bearish candle pattern (based on your settings), it triggers an alert. This dual-confirmation approach helps reduce false signals and provides more reliable trading opportunities.
Use Cases
Support/Resistance breakout trading
Key price level monitoring
Trend reversal identification
Breakout confirmation
Risk management tool
Benefits
Reduces false breakout signals through pattern confirmation
Saves time by automating price level monitoring
Helps identify higher-probability trading setups
Customizable to fit various trading strategies
Perfect for both day trading and swing trading
Alert Types
Price level break alerts
Candlestick pattern formation alerts
Combined confirmation alerts
Suggested Settings
Set price levels at major support/resistance zones
Adjust candle pattern sensitivity based on timeframe
Use with multiple timeframes for confirmation
Combine with volume analysis for better accuracy
Dynamic S/R Levels: Edge FinderOverview
The Dynamic S/R Levels: Edge Finder indicator is designed to identify dynamic support and resistance levels based on historical price action. It uses a combination of price extremes (highs and lows) over user-defined lookback periods, weighted moving averages (WMAs), and touch-count analysis to provide actionable insights into key market levels.
This tool is ideal for traders who want to:
Identify dynamic support and resistance zones.
Understand the strength of these levels based on price touches.
Make informed decisions using clear, adaptive levels.
How It Works
Dynamic Levels Calculation:
The indicator calculates dynamic support levels using the lowest lows and dynamic resistance levels using the highest highs over user-defined lookback periods (e.g., 20, 40, 60 bars, etc.).
These levels are updated dynamically as new price data becomes available.
Touch Count Analysis:
The indicator counts how many times the price has touched or come close to each support/resistance level within the lookback period.
Levels with more touches are considered stronger and are highlighted accordingly.
Weighted Moving Averages (WMAs):
The indicator uses 50-period and 100-period WMAs to identify the closest support/resistance levels to the current trend.
Levels near these WMAs are given additional weight, as they are more likely to act as significant barriers.
Level Merging:
If two support or resistance levels are too close to each other (based on the minimum distance percentage), the weaker level (with fewer touches) is removed to avoid clutter.
Visualization:
Support levels are displayed as dashed red lines, and resistance levels are displayed as dashed blue lines.
Each level is labeled with its corresponding touch count, allowing traders to quickly assess its strength.
How to Interpret the Indicator
Strong Support/Resistance Levels:
Levels with higher touch counts (e.g., 5, 10, or more) are considered stronger and are more likely to hold in the future.
Use these levels to plan entries, exits, or stop-loss placements.
Proximity to WMAs:
Levels closest to the 50-period or 100-period WMA are more significant, especially in trending markets.
These levels often act as dynamic barriers where price reactions are more likely.
Breakouts and Rejections:
If the price breaks through a strong resistance level, it may indicate a potential bullish trend.
If the price rejects a strong support level, it may indicate a potential bearish trend.
Always confirm breakouts or rejections with additional analysis (e.g., volume, candlestick patterns).
Level Merging:
Merged levels indicate areas of high confluence, where multiple support/resistance zones overlap.
These areas are particularly important for decision-making, as they represent stronger market reactions.
Key Features
Customizable Lookback Periods: Adjust the lookback periods for each dynamic level to suit your trading style.
Touch Count Labels: Quickly identify the strength of each level based on the number of price touches.
Adaptive Levels: The indicator dynamically updates levels based on recent price action.
Clean Visualization: Levels are automatically merged to avoid clutter and provide a clear view of the market structure.
Usage Tips
Trend Identification: Combine the indicator with trend-following tools (e.g., moving averages, trendlines) to confirm the overall market direction.
Risk Management: Use the identified levels to set stop-loss orders or take-profit targets.
Timeframe Flexibility: The indicator works on all timeframes, but it is particularly effective on higher timeframes (e.g., 1H, 4H, Daily) for more reliable levels.
Example Scenarios
Bounce Trade:
If the price approaches a strong support level (high touch count) and shows signs of rejection (e.g., bullish candlestick patterns), consider a long position with a stop-loss below the support level.
Breakout Trade:
If the price breaks above a strong resistance level with high volume, consider a long position with a target at the next resistance level.
Range-Bound Market:
In a sideways market, use the support and resistance levels to identify range boundaries and trade bounces between them.
Disclaimer
Dynamic S/R Levels: Edge Finder is a technical analysis tool designed to identify dynamic support and resistance levels based on historical price action. It is intended for informational and educational purposes only. This indicator does not provide financial, investment, or trading advice. Users are solely responsible for their trading decisions and should conduct their own research and analysis before making any trades. The developer of this tool is not liable for any financial losses or damages resulting from the use of this indicator. Trading in financial markets involves risk, and you should only trade with capital you can afford to lose.
EMA/RMA clouds by AlpachinoRE-UPLOAD
The indicator is designed for faster trend determination and also provides hints about whether the trend is strong, weaker, or if a range is expected.
It consists of an exponential moving average (EMA) and a slower smoothed moving average (RMA). I chose these because EMA is the fastest and is respected by the market, while I discovered through practice that the market often respects RMA, and in some cases, even more than EMA. Their combination is necessary because I want to take advantage of the best qualities of both averages. Displaying averages based solely on the close values creates a simple line that the market might respect. However, this is often not the case. Market makers know that many traders still believe in the theory that closing above/below an EMA signals a valid new trend. They commonly apply this belief to EMA200. Traders think that if the market closes below EMA, it signals a downtrend. That’s not necessarily true. This misconception often traps inexperienced traders.
For this reason, my indicator does not include a separate line.
I use what are called envelopes. In other words, for both EMA and RMA, the calculation uses the high and low of the selected period, which can be chosen as an input in the indicator.
Why did I choose high and low?
To stabilize price fluctuations as much as possible, especially to allow enough space for the price to react to the moving average. This reaction occurs precisely between the high and low.
Modes:
EMA Cloud – This is the most common envelope in terms of averages. It shows the best reactions with a period of 50.
What should you observe: the alignment of the envelope or its slope.
Usage:
Breakouts through the entire envelope tend to be strong, which signals that the trend may change. However, what interests you most is that the first test of the envelope after a breakout is the most successful entry point for trades in the breakout direction.
In an uptrend, the first support will be the high of the envelope, and the second (let’s call it the "ultimate support") will be the low of the envelope.
If, during an uptrend, the market closes below the low, be cautious, as the trend may reverse.
If the envelope is broken, trade the retest of the envelope.
In general, if the price is above the envelope, focus on long trades; if it’s below the envelope, focus on short trades.
Double Cloud – Since we already know that highs and lows are more relevant for price respect, I utilized this in the double cloud. Here, I use calculations for EMA and RMA highs and EMA and RMA lows.
The core idea is that since the price often reacts more to RMA than EMA, I wanted to eliminate attempts by market makers to lure you into incorrect directions. By creating more space for the price to react to the highs or lows, I made the cloud fill the area between EMA and RMA highs. This serves as the last zone where the price can hold. If the price breaks above this high cloud during a return, this doesn’t happen randomly—you should pay attention, as it’s likely signaling a range or a trend change.
The same applies to the low cloud for EMA and RMA.
The advantage of the double cloud is that you can see two clouds that may move sideways. This can resemble two walls—and they really act as such.
Usage:
Let’s say we have a downtrend. The market seems to be experiencing a downtrend exhaustion. Here's the behavior you might observe:
The price returns to the EMA/RMA low; the first reaction may still have some strength, but each subsequent return will move higher and higher into the cloud with increasingly smaller rejections downward. This indicates the absorption of selling pressure by bullish pressure. Eventually, the price may close above the cloud, significantly disrupting the downtrend and potentially signaling a reversal.
A confirmation of the reversal is usually seen with a retest of the cloud and a bounce upward into an uptrend.
The second scenario, which you’ll often see, involves sharp and significant moves through both envelopes. This kind of move is the strongest signal of a trend change. However, do not jump into trades immediately—wait for the first retest, which is usually successful. Additional tests may not work, as the breakout might not signify a trend change but rather a range.
When the clouds are far apart, it signals a weak trend or that the market is in a range. You will see that this is generally true. When the clouds cross or overlap, their initial point of contact signals the start of a stronger trend. The steeper the slope, the stronger the trend.
Enhanced SMA Strategy with Trend Lines & S&R by DaxThe Enhanced SMA Strategy with Trend Lines & Support/Resistance (S&R) by Dax indicator is a technical analysis tool designed to improve trading decisions by combining the simplicity of the Simple Moving Average (SMA) with the insight provided by trend lines and support/resistance levels. This hybrid approach aims to create a more robust and reliable trading strategy.
Key Components:
Simple Moving Average (SMA):
SMA is a basic trend-following indicator that calculates the average of a set of price data over a specified period. It helps identify the direction of the market, such as whether an asset is in an uptrend or downtrend.
The Enhanced SMA Strategy may use multiple SMAs, such as short-term (e.g., 20-period) and long-term (e.g., 50-period), to detect crossovers that signal buy or sell opportunities. For example, a bullish crossover occurs when a short-term SMA crosses above a long-term SMA, indicating a potential buying signal, while a bearish crossover signals a potential sell.
Trend Lines:
Trend lines are drawn on the price chart to visually identify the direction of the market, acting as dynamic support and resistance levels. A trend line is drawn by connecting two or more price points that demonstrate the overall price movement.
Trend lines can help traders see potential breakout or breakdown points. A price breaking above a downtrend line or below an uptrend line often signals a trend reversal.
Support and Resistance (S&R):
Support levels are price levels where an asset tends to find buying interest and stop falling, while Resistance levels are points where selling pressure emerges and prevent the price from rising further.
These levels are critical in determining where price reversals or consolidations are likely to occur. Enhanced S&R indicators can automatically identify these levels and draw horizontal lines at these critical points on the chart.
Combining S&R with SMA can help traders decide whether a breakout or bounce is likely at these levels, increasing the odds of a successful trade.
How It Works:
Trend Identification: The SMA is used to determine the trend direction. A rising SMA indicates an uptrend, while a falling SMA suggests a downtrend.
Signal Generation: The strategy often uses a combination of SMA crossovers (bullish or bearish) along with the confirmation of price action near trend lines and support/resistance levels. For example:
If a price breaks above resistance and the short-term SMA crosses above the long-term SMA, a buy signal is confirmed.
Conversely, if the price breaks below support and the short-term SMA crosses below the long-term SMA, a sell signal is given.
Dynamic Support/Resistance: Trend lines are drawn automatically or manually to spot areas where price might reverse. The Enhanced SMA Strategy checks if the price is close to these levels, providing a more precise entry/exit point based on the broader market context.
Advantages of the Enhanced SMA Strategy with Trend Lines & S&R:
Improved Accuracy: By combining trend-following (SMA) with key levels like trend lines and S&R, the strategy filters out false signals, leading to more reliable trade setups.
Trend Confirmation: The use of trend lines and S&R confirms the broader market context, reducing the risk of trading against the trend or entering at weak price points.
Flexible: This strategy can be applied to various timeframes, from short-term day trading to longer-term swing trading.
Visual Clarity: The combination of trend lines, S&R, and moving averages provides a clear and visually intuitive strategy for identifying key price levels and trend shifts.
How to Use It:
Draw Trend Lines: Identify the most recent price peaks and troughs to draw trend lines, marking the potential resistance and support levels.
Use SMAs: Apply two different-period SMAs to detect the trend (e.g., 20-period and 50-period). Pay attention to crossovers for buy/sell signals.
Watch for Breakouts or Reversals: Monitor how the price behaves at support or resistance levels and the trend lines. A price move beyond these levels, accompanied by a confirming SMA crossover, can signal a strong trade opportunity.
Conclusion:
The Enhanced SMA Strategy with Trend Lines & S&R by Dax is a powerful, multi-layered approach to technical analysis. It enhances the basic SMA strategy by incorporating additional tools like trend lines and support/resistance levels, which help traders make more informed decisions with higher accuracy. This method is suitable for both novice and experienced traders, offering clear trade signals while reducing the risk of false entries.
FT SessionsFT Sessions
Overview
The FT Sessions is a highly customizable and powerful indicator designed for intraday traders who focus on session-based analysis. This script visually highlights global market sessions—Asia, Frankfurt, London, and New York (AM & PM)—on the chart, making it easier to track session ranges and analyze intraday price movements.
Key Features
Customizable Session Times and Colors:
Define your own session times and assign unique colors for better visibility.
Session Range Visualization:
Displays high and low ranges for each session.
Optional transparent range areas with outlines for clarity.
Configurable session range labels for enhanced readability.
Flexible Timezone Settings:
Choose a UTC offset or sync with the exchange's timezone.
User-Friendly Customization:
Compact settings for easier adjustments.
Enable or disable specific sessions to focus on relevant market activity.
How This Script Differs from LuxAlgo
This script draws inspiration from LuxAlgo's session tracking concept but has been developed with significant modifications and unique features:
Built from Scratch in Pine Script v5:
Fully optimized for Pine Script’s latest version, improving performance and functionality.
Expanded Session Range Features:
Five unique sessions (Asia, Frankfurt, London, New York AM, New York PM) with customizable ranges, colors, and labels.
Real-time updating of session ranges for improved intraday analysis.
4H Timeframe Optimization:
Automatically notifies users if applied to an unsupported timeframe, ensuring session accuracy.
Highly Configurable Input Options:
Advanced timezone handling and compact session management settings.
Unique Coding Structure:
Designed to maximize efficiency and minimize resource usage on TradingView.
While LuxAlgo focuses on session concepts, this script brings a fresh, customizable approach specifically tailored for intraday traders seeking precision in tracking session activity.
How It Works
The indicator tracks price movements within each session.
Highlights the high and low range of each session directly on the chart.
Updates session ranges in real-time to reflect evolving market conditions.
Practical Applications
Intraday Trading: Plan trades based on major market session ranges.
Breakout Strategies: Use session high and low levels to identify potential breakouts.
Session-Specific Patterns: Spot consolidations and reversals within session activity.
Important Notes
Optimized for the 4H timeframe. If applied to another timeframe, a notification will appear.
Best used in combination with other tools (e.g., volume or trend indicators) for a complete trading strategy.
Credits
This script draws inspiration from LuxAlgo's open-source session-tracking methodology. However, it introduces substantial improvements and unique features that set it apart. Full credit is given to LuxAlgo for their original open-source concept.
Disclaimer
This script is for informational and educational purposes only. Always test on a demo account before applying to live markets.
Enhanced Effort vs Result Analysis V.2How to Use in Trading
A. Confirm Breakouts
Check if the Effort-Result Ratio or Z-Score spikes above the Upper Band or Z > +2:
Suggests a strong, efficient price move.
Supports breakout continuation.
B. Identify Reversal or Exhaustion
Look for Effort-Result Ratio or Z-Score dropping below the Lower Band or Z < -2:
Indicates high effort but low price movement (inefficiency).
Often signals potential trend reversal or consolidation.
C. Assess Efficiency of Trends
Use Relative Efficiency Index (REI):
REI near 1 during a trend → Confirms strength (efficient movement).
REI near 0 → Weak or inefficient movement, likely signaling exhaustion.
D. Evaluate Volume-Price Relationship
Monitor the Volume-Price Correlation:
Positive correlation (+1): Confirms price is driven by volume.
Negative correlation (-1): Indicates divergence; price moves independently of volume (potential warning signal).
3. Example Scenarios
Scenario 1: Breakout Confirmation
Effort-Result Ratio spikes above the Upper Band.
Z-Score exceeds +2.
REI approaches 1.
Volume-Price Correlation is positive (near +1).
Action: Strong breakout confirmation → Trend continuation likely.
Scenario 2: Reversal or Exhaustion
Effort-Result Ratio drops below the Lower Band.
Z-Score is below -2.
REI approaches 0.
Volume-Price Correlation weakens or turns negative.
Action: Signals trend exhaustion → Watch for reversal or consolidation.
Scenario 3: Range-Bound Market
Effort-Result Ratio stays within the Bollinger Bands.
Z-Score remains between -1 and +1.
REI fluctuates around 0.5 (neutral efficiency).
Volume-Price Correlation hovers near 0.
Action: Normal conditions → Look for breakout signals before acting.
*IMPORTANT*
There is a problem with the overlay ... How to fix some of it
The Standard Deviation bands dont work while the other variable activated so Id suggest deselecting them. The fix for this is to make sure you have the background selected and by doing this it will highlight on the chart ( you may need to increase the opacity ) when the bands ( Second standard deviation) are touched.
- Also you can use them all at once if you can but you do not need to
Adaptive Volatility-Scaled Oscillator [AVSO] (Zeiierman)█ Overview
The Adaptive Volatility-Scaled Oscillator (AVSO) is a dynamic trading indicator that measures and visualizes volatility-adjusted market behavior. By scaling various metrics (such as volume, price changes, standard deviation, ATR, and Yang-Zhang volatility) and applying adaptive smoothing, AVSO helps traders identify market conditions where volatility deviates significantly from the norm.
This indicator uses standardized scaling (Z-Score logic) to highlight periods of abnormally high or low volatility relative to recent history. With gradient coloring and clear volatility zones, AVSO provides a visually intuitive way to analyze market volatility and adapt trading strategies accordingly.
█ How It Works
⚪ Scaling Metrics: The indicator scales user-selected metrics (e.g., volume, ATR, standard deviation) relative to the market and price, providing a standardized volatility measure.
⚪ Z-Score Standardization: The scaled metric is normalized using a Z-Score to measure how far current volatility deviates from its recent mean.
Positive Z-Score: Above-average volatility.
Negative Z-Score: Below-average volatility.
⚪ Adaptive Smoothing: An Adaptive EMA smooths the Z-Score, dynamically adjusting its length based on the strength of the volatility. Stronger deviations result in shorter smoothing, increasing responsiveness.
█ Unique Feature: Yang-Zhang Volatility
The Yang-Zhang volatility estimator sets this indicator apart by providing a more robust and accurate measure of volatility compared to traditional methods like ATR or standard deviation.
⚪ What Makes Yang-Zhang Volatility Unique?
Comprehensive Calculation: It combines overnight price gaps (log returns from the previous close to the current open) and intraday price movements (high, low, and close).
Accurate for Gapped Markets: Traditional volatility measures can misrepresent price movement when significant gaps occur between sessions. Yang-Zhang accounts for these gaps, making it highly reliable for assets prone to overnight price jumps, such as stocks, cryptocurrencies, and futures.
Adaptable to Real Market Conditions : By including both close-to-open returns and intraday volatility, it provides a balanced and adaptive measure that captures the full volatility picture.
⚪ Why This Matters to Traders
Better Volatility Insights: Yang-Zhang offers a clearer view of true market volatility, especially in markets with price gaps or uneven trading sessions.
Improved Trade Timing: By identifying volatility spikes and calm periods more effectively, traders can time their entries and exits with greater confidence.
█ How to Use
Identify High and Low Volatility
A high Z-Score (>2) indicates significant market volatility. This can signal momentum-driven moves, breakouts, or areas of increased risk.
A low Z-Score (<-2) suggests low volatility or a calm market environment. This often occurs before a potential breakout or reversal.
Trade Signals
High Volatility Zones (background highlight): Monitor for potential breakouts, trend continuations, or reversals.
Low Volatility Zones: Anticipate range-bound conditions or upcoming volatility spikes.
█ Settings
Source: Select the price source for scaling calculations (close, high, low, open).
Metric Measure: Choose the volatility measure:
Volume: Scales raw volume.
Close: Uses closing price changes.
Standard Deviation: Price dispersion.
ATR: Average True Range.
Yang: Yang-Zhang volatility estimate.
Bars to Analyze: Number of historical bars used to calculate the mean and standard deviation of the scaled metric.
ATR / Standard Deviation Period: Lookback period for ATR or Standard Deviation calculation.
Yang Volatility Period: Period for the Yang-Zhang volatility estimator.
Smoothing Period: Base smoothing length for the adaptive smoothing line.
-----------------
Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Top-Down Trend and Key Levels with Swing Points//by antaryaami0
Overview
The “Top-Down Trend and Key Levels with Swing Points” indicator is a comprehensive tool designed to enhance your technical analysis by integrating multiple trading concepts into a single, easy-to-use script. It combines higher timeframe trend analysis, key price levels, swing point detection, and ranging market identification to provide a holistic view of market conditions. This indicator is particularly useful for traders who employ multi-timeframe analysis, support and resistance levels, and price action strategies.
Key Features
1. Higher Timeframe Trend Background Shading:
• Purpose: Identifies the prevailing trend on a higher timeframe to align lower timeframe trading decisions with the broader market direction.
• How it Works: The indicator compares the current higher timeframe close with the previous one to determine if the trend is up, down, or ranging.
• Customization:
• Trend Timeframe: Set your preferred higher timeframe (e.g., Daily, Weekly).
• Up Trend Color & Down Trend Color: Customize the background colors for uptrends and downtrends.
• Ranging Market Color: A separate color to indicate when the market is moving sideways.
2. Key Price Levels:
• Previous Day High (PDH) and Low (PDL):
• Purpose: Identifies key support and resistance levels from the previous trading day.
• Visualization: Plots horizontal lines at PDH and PDL with labels.
• Customization: Option to show or hide these levels and customize their colors.
• Pre-Market High (PMH) and Low (PML):
• Purpose: Highlights the price range during the pre-market session, which can indicate potential breakout levels.
• Visualization: Plots horizontal lines at PMH and PML with labels.
• Customization: Option to show or hide these levels and customize their colors.
3. First 5-Minute Marker (F5H/F5L):
• Purpose: Marks the high or low of the first 5 minutes after the market opens, which is significant for intraday momentum.
• How it Works:
• If the first 5-minute high is above the Pre-Market High (PMH), an “F5H” label is placed at the first 5-minute high.
• If the first 5-minute high is below the PMH, an “F5L” label is placed at the first 5-minute low.
• Visualization: Labels are placed at the 9:35 AM candle (closing of the first 5 minutes), colored in purple by default.
• Customization: Option to show or hide the marker and adjust the marker color.
4. Swing Points Detection:
• Purpose: Identifies significant pivot points in price action to help recognize trends and reversals.
• How it Works: Uses left and right bars to detect pivot highs and lows, then determines if they are Higher Highs (HH), Lower Highs (LH), Higher Lows (HL), or Lower Lows (LL).
• Visualization: Plots small markers (circles) with labels (HH, LH, HL, LL) at the corresponding swing points.
• Customization: Adjust the number of left and right bars for pivot detection and the size of the markers.
5. Ranging Market Detection:
• Purpose: Identifies periods when the market is consolidating (moving sideways) within a defined price range.
• How it Works: Calculates the highest high and lowest low over a specified period and determines if the price range is within a set percentage threshold.
• Visualization: Draws a gray box around the price action during the ranging period and labels the high and low prices at the end of the range.
• Customization: Adjust the range detection period and threshold, as well as the box color.
6. Trend Coloring on Chart:
• Purpose: Provides a visual cue for the short-term trend based on a moving average.
• How it Works: Colors the candles green if the price is above the moving average and red if below.
• Customization: Set the moving average length and customize the uptrend and downtrend colors.
How to Use the Indicator
1. Adding the Indicator to Your Chart:
• Copy the Pine Script code provided and paste it into the Pine Script Editor on TradingView.
• Click “Add to Chart” to apply the indicator.
2. Configuring Inputs and Settings:
• Access Inputs:
• Click on the gear icon next to the indicator’s name on your chart to open the settings.
• Customize Key Levels:
• Show Pre-Market High/Low: Toggle on/off.
• Show Previous Day High/Low: Toggle on/off.
• Show First 5-Minute Marker: Toggle on/off.
• Set Trend Parameters:
• Trend Timeframe for Background: Choose the higher timeframe for trend analysis.
• Moving Average Length for Bar Color: Set the period for the moving average used in bar coloring.
• Adjust Ranging Market Detection:
• Range Detection Period: Specify the number of bars to consider for range detection.
• Range Threshold (%): Set the maximum percentage range for the market to be considered ranging.
• Customize Visuals:
• Colors: Adjust colors for trends, levels, markers, and ranging market boxes.
• Label Font Size: Choose the size of labels displayed on the chart.
• Level Line Width: Set the thickness of the lines for key levels.
3. Interpreting the Indicator:
• Background Shading:
• Green Shade: Higher timeframe is in an uptrend.
• Red Shade: Higher timeframe is in a downtrend.
• Gray Box: Market is ranging (sideways movement).
• Key Levels and Markers:
• PDH and PDL Lines: Represent resistance and support from the previous day.
• PMH and PML Lines: Indicate potential breakout levels based on pre-market activity.
• F5H/F5L Labels: Early indication of intraday momentum after market open.
• Swing Point Markers:
• HH (Higher High): Suggests bullish momentum.
• LH (Lower High): May indicate a potential bearish reversal.
• HL (Higher Low): Supports bullish continuation.
• LL (Lower Low): Indicates bearish momentum.
• Ranging Market Box:
• Gray Box Around Price Action: Highlights consolidation periods where breakouts may occur.
• Range High and Low Labels: Provide the upper and lower bounds of the consolidation zone.
4. Applying the Indicator to Your Trading Strategy:
• Trend Alignment:
• Use the higher timeframe trend shading to align your trades with the broader market direction.
• Key Levels Trading:
• Watch for price reactions at PDH, PDL, PMH, and PML for potential entry and exit points.
• Swing Points Analysis:
• Identify trend continuations or reversals by observing the sequence of HH, HL, LH, and LL.
• Ranging Market Strategies:
• During ranging periods, consider range-bound trading strategies or prepare for breakout trades when the price exits the range.
• Intraday Momentum:
• Use the F5H/F5L marker to gauge early market sentiment and potential intraday trends.
Practical Tips
• Adjust Settings to Your Trading Style:
• Tailor the indicator’s inputs to match your preferred timeframes and trading instruments.
• Combine with Other Indicators:
• Use in conjunction with volume indicators, oscillators, or other technical tools for additional confirmation.
• Backtesting:
• Apply the indicator to historical data to observe how it performs and refine your settings accordingly.
• Stay Updated on Market Conditions:
• Be aware of news events or economic releases that may impact market behavior and the effectiveness of technical levels.
Customization Options
• Time Zone Adjustment:
• The script uses “America/New_York” time zone by default. Adjust the timezone variable in the script if your chart operates in a different time zone.
var timezone = "Your/Timezone"
• Session Times:
• Modify the Regular Trading Session and Pre-Market Session times in the indicator settings to align with the trading hours of different markets or exchanges.
• Visual Preferences:
• Colors: Personalize the indicator’s colors to suit your visual preferences or to enhance visibility.
• Label Sizes: Adjust label sizes if you find them too intrusive or not prominent enough.
• Marker Sizes: Further reduce or enlarge the swing point markers by modifying the swing_marker_size variable.
Understanding the Indicator’s Logic
1. Higher Timeframe Trend Analysis:
• The indicator retrieves the closing prices of a higher timeframe using the request.security() function.
• It compares the current higher timeframe close with the previous one to determine the trend direction.
2. Key Level Calculation:
• Previous Day High/Low: Calculated by tracking the highest and lowest prices of the previous trading day.
• Pre-Market High/Low: Calculated by monitoring price action during the pre-market session.
3. First 5-Minute Marker Logic:
• At 9:35 AM (end of the first 5 minutes after market open), the indicator evaluates whether the first 5-minute high is above or below the PMH.
• It then places the appropriate label (F5H or F5L) on the chart.
4. Swing Points Detection:
• The script uses ta.pivothigh() and ta.pivotlow() functions to detect pivot points.
• It then determines the type of swing point based on comparisons with previous swings.
5. Ranging Market Detection:
• The indicator looks back over a specified number of bars to find the highest high and lowest low.
• It calculates the percentage difference between these two points.
• If the difference is below the set threshold, the market is considered to be ranging, and a box is drawn around the price action.
Limitations and Considerations
• Indicator Limitations:
• Maximum Boxes and Labels: Due to Pine Script limitations, there is a maximum number of boxes and labels that can be displayed simultaneously.
• Performance Impact: Adding multiple visual elements (boxes, labels, markers) can affect the performance of the script on lower-end devices or with large amounts of data.
• Market Conditions:
• False Signals: Like any technical tool, the indicator may produce false signals, especially during volatile or erratic market conditions.
• Not a Standalone Solution: This indicator should be used as part of a comprehensive trading strategy, including risk management and other forms of analysis.
Conclusion
The “Top-Down Trend and Key Levels with Swing Points” indicator is a versatile tool that integrates essential aspects of technical analysis into one script. By providing insights into higher timeframe trends, highlighting key price levels, detecting swing points, and identifying ranging markets, it equips traders with valuable information to make more informed trading decisions. Whether you are a day trader looking for intraday opportunities or a swing trader aiming to align with the broader trend, this indicator can enhance your chart analysis and trading strategy.
Disclaimer
Trading involves significant risk, and it’s important to understand that past performance is not indicative of future results. This indicator is a tool to assist in analysis and should not be solely relied upon for making trading decisions. Always conduct thorough research and consider seeking advice from financial professionals before engaging in trading activities.
True Range Trend StrengthThis script is designed to analyze trend strength using True Range calculations alongside Donchian Channels and smoothed moving averages. It provides a dynamic way to interpret market momentum, trend reversals, and anticipate potential entry points for trades.
Key Functionalities:
Trend Strength Oscillator:
Calculates trend strength based on the difference between long and short momentum derived from ATR (Average True Range) adjusted stop levels.
Smooths the trend strength using a simple moving average for better readability.
Donchian Channels on Trend Strength Oscillator:
Plots upper and lower Donchian Channels on the smoothed trend strength oscillator.
Traders can use these levels to anticipate breakout points and determine the strength of a trend.
Zero-Cross Shading:
Highlights bullish and bearish zones with shaded backgrounds:
Green for bullish zones where smoothed trend strength is above zero.
Red for bearish zones where smoothed trend strength is below zero.
Moving Averages for Oscillator:
Overlays fast and slow moving averages on the oscillator to provide crossover signals:
Fast MA Cross Above Slow MA: Indicates bullish momentum.
Fast MA Cross Below Slow MA: Indicates bearish momentum.
Alerts:
Alerts are available for MA crossovers, allowing traders to receive timely notifications about potential trend reversals or continuation signals.
Anticipating Entries with Donchian Channels:
The integration of Donchian Channels offers an edge in anticipating excellent trade entries.
Traders can use the oscillator's position relative to the channels to gauge oversold/overbought conditions or potential breakouts.
Use Case:
This script is particularly useful for traders looking to:
Identify the strength and direction of market trends.
Time entries and exits based on dynamic Donchian Channel levels and trend strength analysis.
Incorporate moving averages and visual cues for better decision-making.
Infinity Market Grid -AynetConcept
Imagine viewing the market as a dynamic grid where price, time, and momentum intersect to reveal infinite possibilities. This indicator leverages:
Grid-Based Market Flow: Visualizes price action as a grid with zones for:
Accumulation
Distribution
Breakout Expansion
Volatility Compression
Predictive Dynamic Layers:
Forecasts future price zones using historical volatility and momentum.
Tracks event probabilities like breakout, fakeout, and trend reversals.
Data Science Visuals:
Uses heatmap-style layers, moving waveforms, and price trajectory paths.
Interactive Alerts:
Real-time alerts for high-probability market events.
Marks critical zones for "buy," "sell," or "wait."
Key Features
Market Layers Grid:
Creates dynamic "boxes" around price using fractals and ATR-based volatility.
These boxes show potential future price zones and probabilities.
Volatility and Momentum Waves:
Overlay volatility oscillators and momentum bands for directional context.
Dynamic Heatmap Zones:
Colors the chart dynamically based on breakout probabilities and risk.
Price Path Prediction:
Tracks price trajectory as a moving "wave" across the grid.
How It Works
Grid Box Structure:
Upper and lower price levels are based on ATR (volatility) and plotted dynamically.
Dashed green/red lines show the grid for potential price expansion zones.
Heatmap Zones:
Colors the background based on probabilities:
Green: High breakout probability.
Blue: High consolidation probability.
Price Path Prediction:
Forecasts future price movements using momentum.
Plots these as a dynamic "wave" on the chart.
Momentum and Volatility Waves:
Shows the relationship between momentum and volatility as oscillating waves.
Helps identify when momentum exceeds volatility (potential breakouts).
Buy/Sell Signals:
Triggers when price approaches grid edges with strong momentum.
Provides alerts and visual markers.
Why Is It Revolutionary?
Grid and Wave Synergy:
Combines structural price zones (grid boxes) with real-time momentum and volatility waves.
Predictive Analytics:
Uses momentum-based forecasting to visualize what’s next, not just what’s happening.
Dynamic Heatmap:
Creates a living map of breakout/consolidation zones in real-time.
Scalable for Any Market:
Works seamlessly with forex, crypto, and stocks by adjusting the ATR multiplier and box length.
This indicator is not just a tool but a framework for understanding market dynamics at a deeper level. Let me know if you'd like to take it even further — for example, adding machine learning-inspired probability models or multi-timeframe analysis! 🚀
Day High/Low and Horizontal Lines with Custom Increments How It Works:
Day High and Day Low: The indicator tracks and displays the highest and lowest prices of the current trading day. These values are updated dynamically throughout the day.
Custom Horizontal Lines: The user specifies a starting price and an increment value. The indicator then plots multiple horizontal lines above and below the starting price, spaced at the given increment. Up to 15 lines can be drawn in both directions (above and below).
Alerts: Alerts are triggered when the price crosses any of the horizontal lines, helping traders monitor potential breakouts or reversals.
Use Case:
This indicator is useful for traders who want to:
Track the Day High/Low: Easily reference the high and low of the current day as key price levels.
Monitor Key Price Levels: Draw and observe custom horizontal levels above and below a specific price, such as support/resistance levels or price targets.
Set Alerts: Receive notifications when the price crosses these key levels, helping identify potential breakout or breakdown points in the market.
Why Use This Indicator:
Day Trading: Traders can monitor the high and low of the current trading day to see if the price breaks through key levels.
Breakout Strategy: The custom horizontal lines provide reference points for potential breakout levels, with alerts helping traders act in real-time.
Support and Resistance: The plotted lines can represent predefined support or resistance levels, allowing traders to plan their entries and exits effectively.
The indicator gives a structured way to visualize price movements, highlight important price levels, and react quickly with alerts when the price crosses those levels.
Pavan CPR Strategy Pavan CPR Strategy (Pine Script)
The Pavan CPR Strategy is a trading system based on the Central Pivot Range (CPR), designed to identify price breakouts and generate long trade signals. This strategy uses key CPR levels (Pivot, Top CPR, and Bottom CPR) calculated from the daily high, low, and close to inform trade decisions. Here's an overview of how the strategy works:
Key Components:
CPR Calculation:
The strategy calculates three critical CPR levels for each trading day:
Pivot (P): The central value, calculated as the average of the high, low, and close prices.
Top Central Pivot (TC): The midpoint of the daily high and low, acting as the resistance level.
Bottom Central Pivot (BC): Derived from the pivot and the top CPR, providing a support level.
The script uses request.security to fetch these CPR values from the daily timeframe, even when applied on intraday charts.
Trade Entry Condition:
A long position is initiated when:
The current price crosses above the Top CPR level (TC).
The previous close was below the Top CPR level, signaling a breakout above a key resistance level.
This condition aims to capture upward momentum as the price breaks above a significant level.
Exit Strategy:
Take Profit: The position is closed with a profit target set 50 points above the entry price.
Stop Loss: A stop loss is placed at the Pivot level to protect against unfavorable price movements.
Visual Reference:
The script plots the three CPR levels on the chart:
Pivot: Blue line.
Top CPR (TC): Green line.
Bottom CPR (BC): Red line.
These plotted levels provide visual guidance for identifying potential support and resistance zones.
Use Case:
The Pavan CPR Strategy is ideal for intraday traders who want to capitalize on price movements and breakouts above critical CPR levels. It provides clear entry and exit signals based on price action and is best used in conjunction with proper risk management.
Note: The strategy is written in Pine Script v5 for use on TradingView, and it is recommended to backtest and optimize it for the asset or market you are trading.
Globex time (New York Time)This indicator is designed to highlight and analyze price movements within the Globex session. Primarily geared toward the Globex Trap trading strategy, this tool visually identifies the session's high and low prices, allowing traders to better assess price action during extended hours. Here’s a comprehensive breakdown of its features and functionality:
Purpose
The "Globex Time (New York Time)" indicator tracks price levels during the Globex trading session, providing a clear view of overnight market activity. This session, typically running from 6 p.m. ET (18:00) until the following morning at 8:30 a.m. ET, is a critical period where significant market positioning can occur before the regular session opens. In the Globex Trap strategy, the session high and low are essential levels, as price movements around these areas often indicate potential support, resistance, or reversal zones, which traders use to set up entries or exits when the regular trading session begins.
Key Features
Customizable Session Start and End Times
The indicator allows users to specify the exact start and end times of the Globex session in New York time. The default settings are:
Start: 6 p.m. ET (18:00)
End: 8:30 a.m. ET
These settings can be adjusted to align with specific market hours or personal preferences.
Session High and Low Identification
Throughout the defined session, the indicator dynamically calculates and tracks:
Session High: The highest price reached within the session.
Session Low: The lowest price reached within the session.
These levels are essential for the Globex Trap strategy, as price action around them can indicate likely breakout or reversal points when regular trading resumes.
Vertical Lines for Session Start and End
The indicator draws vertical lines at both the session start and end times:
Session Start Line: A solid line marking the exact beginning of the Globex session.
Session End Line: A similar vertical line marking the session’s conclusion.
Both lines are customizable in terms of color and thickness, making it easy to distinguish the session boundaries visually on the chart.
Horizontal Lines for Session High and Low
At the end of the session, the indicator plots horizontal lines representing the Globex session's high and low levels. Users can customize these lines:
Color: Define specific colors for the session high (default: red) and session low (default: green) to easily differentiate them.
Line Style: Options to set the line style (solid, dashed, or dotted) provide flexibility for visual preferences and chart organization.
Automatic Reset for Daily Tracking
To adapt to the next trading day, the indicator resets the session high and low data once the current session ends. This reset prepares it to start tracking new levels at the beginning of the next session without manual intervention.
Practical Application in the Globex Trap Strategy
In the Globex Trap strategy, traders are primarily interested in price behavior around the high and low levels established during the overnight session. Common applications of this indicator for this strategy include:
Breakout Trades: Watching for price to break above the Globex high or below the Globex low, indicating potential momentum in the breakout direction.
Reversal Trades: Monitoring for failed breakouts or traps where price tests and rejects the Globex high or low, suggesting a reversal as liquidity is trapped in these zones.
Support and Resistance Zones: Using the session high and low as key support and resistance levels during the regular trading session, with potential entry or exit points when price approaches these areas.
Additional Configuration Options
Vertical Line Color and Width: Define the color and thickness of the vertical session start and end lines to match your chart’s theme.
Upper and Lower Line Colors and Styles: Customize the appearance of the session high and low horizontal lines by setting color and line style (solid, dashed, or dotted), making it easy to distinguish these critical levels from other chart markings.
Summary
This indicator is a valuable tool for traders implementing the Globex Trap strategy. It visually segments the Globex session and marks essential price levels, helping traders analyze market behavior overnight. Through its customizable options and clear visual representation, it simplifies tracking overnight price activity and identifying strategic levels for potential trade setups during the regular session.
Range Detect SystemTechnical analysis indicator designed to identify potential significant price ranges and the distribution of volume within those ranges. The system helps traders calculate POC and show volume history. Also detecting breakouts or potential reversals. System identifies ranges with a high probability of price consolidation and helps screen out extreme price moves or ranges that do not meet certain volatility thresholds.
⭕️ Key Features
Range Detection — identifies price ranges where consolidation is occurring.
Volume Profile Calculation — indicator calculates the Point of Control (POC) based on volume distribution within the identified range, enhancing the analysis of market structure.
Volume History — shows where the largest volume was traded from the center of the range. If the volume is greater in the upper part of the range, the color will be green. If the volume is greater in the lower part, the color will be red.
Range Filtering — Includes multi-level filtering options to avoid ranges that are too volatile or outside normal ranges.
Visual Customization — Shows graphical indicators for potential bullish or bearish crossovers at the upper and lower range boundaries. Users can choose the style and color of the lines, making it easier to visualize ranges and important levels on the chart.
Alerts — system will notify you when a range has been created and also when the price leaves the range.
⭕️ How it works
Extremes (Pivot Points) are taken as a basis, after confirming the relevance of the extremes we take the upper and lower extremes and form a range. We check if it does not violate a number of rules and filters, perform volume calculations, and only then is the range displayed.
Pivot points is a built-in feature that shows an extremum if it has not been updated N bars to the left and N bars to the right. Therefore, there is a delay depending on the bars specified to check, which allows for a more accurate range. This approach allows not to make unnecessary recalculations, which completely eliminates the possibility of redrawing or range changes.
⭕️ Settings
Left Bars and Right Bars — Allows you to define the point that is the highest among the specified number of bars to the left and right of this point.
Range Logic — Select from which point to draw the range. Maximums only, Minimums only or both.
Use Wick — Option to consider the wick of the candles when identifying Range.
Breakout Confirmation — The number of bars required to confirm a breakout, after which the range will close.
Minimum Range Length — Sets the minimum number of candles needed for a range to be considered valid.
Row Size — Number of levels to calculate POC. *Larger values increase the script load.
% Range Filter — Dont Show Range is than more N% of Average Range.
Multi Filter — Allows use of Bollinger Bands, ATR, SMA, or Highest-Lowest range channels for filtering ranges based on volatility.
Range Hit — Shows graphical labels when price hits the upper or lower boundaries of the range, signaling potential reversal or breakout points.
Range Start — Show points where Range was created.
Gold scalper 1 min or 30 secThis Pine Script code for TradingView is designed to create a trading indicator titled "Gold scalper 1 min or 30 sec." The indicator is primarily used for scalping gold and is focused on short-term timeframes (1 minute or 30 seconds).
### Key Components of the Code:
1. **Inputs:**
- **Resolution:** Users can set the timeframe for analysis (default is 240 minutes).
- **SMA (Simple Moving Average):** Users can specify the period for the SMA used in the calculations.
2. **Daily Highs and Lows:**
- The script calculates the previous day’s high (`yesterdayHigh`) and low (`yesterdayLow`) prices using the `request.security` function.
3. **SMA Calculation:**
- An SMA is computed based on the closing prices of the selected timeframe.
4. **Breakout Conditions:**
- The script detects breakouts using the SMA in relation to yesterday's high and low:
- A breakout upwards occurs when the SMA crosses above the previous day's high.
- A breakout downwards occurs when the SMA crosses below the previous day's low.
5. **RSI (Relative Strength Index) Calculations:**
- Two RSI values are calculated to assess market momentum:
- **Banker RSI:** Used for buy conditions.
- **Hot Money RSI:** Used for sell conditions.
- These include adjustable sensitivity factors and periods to customize the indicator’s sensitivity.
6. **Trade Direction Selection:**
- Users can select whether to trade long, short, or both directions.
7. **Buy and Sell Signals:**
- Buy conditions are set when the Retail Moving Average crosses the Banker Moving Average under certain conditions.
- Sell conditions are marked when the Banker Moving Average crosses under the specified sell threshold.
- These signals are visually represented on the chart with specific shapes (up arrows for buys and down arrows for sells).
8. **Alerts:**
- Alerts are generated for buy and sell signals to notify users when certain conditions are met.
9. **Trend Visualization:**
- The script visually indicates uptrends and downtrends on the chart by plotting colors based on the relationship between the current price, yesterday's high, and low.
### General Purpose:
This indicator is designed to assist traders in identifying potential buying and selling opportunities in the gold market based on short-term price movements and momentum indicators, helping them capitalize on quick price fluctuations that are characteristic of scalping strategies.
Time Based 3 Candle Model CRT FrameworkThe 3 Candle Model Overview:
The 3 Candle Model serves as a sophisticated framework for traders to navigate the complexities of financial markets, particularly within futures and forex trading. This guide not only elaborates on the model's key features but also emphasizes its originality and practical usefulness in the TradingView community. The core principle of the 3 Candle Model revolves around understanding how candle patterns can represent significant price ranges, offering valuable insights into potential market movements. By integrating the model with other critical trading concepts such as the Power of Three (PO3), Open-High-Low-Close (OHLC), and Turtle Soup setups, traders can enhance their ability to identify high-probability trades and achieve better trading outcomes.
Indicator includes:
3 Customizable Timeframe choices to fractally frame 3 candle models for precision
Live Timers for each timeframe to always be aware of the models timing
Parent Candle tracking on every preffered timeframe until new models parent candle is printed
Key Features of the 3 Candle Model
The 3 Candle Model primarily utilizes a three-candle structure, where the first candle establishes a price range, the second candle may act as a confirmation (often termed a "turtle soup"), and the third candle provides the breakout or continuation. This structure is pivotal in determining entry and exit points for trades, ensuring that each trading decision is backed by solid price action analysis.
OHLC Principle:
The Open-High-Low-Close (OHLC) concept is integral to the 3 Candle Model, allowing traders to analyze price action more effectively. Understanding the relationship between these four price points helps traders gauge market sentiment and potential reversals. By incorporating OHLC into the model, traders can develop a deeper understanding of market structure and its implications for future price movements.
Delivery States:
The 3 Candle Model emphasizes the importance of delivery states, which refer to the market's phase during specific time frames. Recognizing these states aids traders in determining the appropriate conditions for entering trades, particularly when combined with the power of three and candle range patterns. This understanding is crucial for positioning trades in alignment with market momentum.
High Probability Setups:
By aligning the 3 Candle Model with inside bar setups, traders can optimize their strategies for high-probability outcomes. This approach capitalizes on the inherent fractal nature of price movements, where previous patterns repeat at different scales. The combination of the model and inside bar setups enhances the trader's toolkit, allowing for more strategic trade placements.
Turtle Soup Formation:
The 3 Candle Model intricately connects with the Turtle Soup concept, which focuses on false breakouts. Identifying these formations at critical levels enhances the trader's ability to anticipate reversals or continuation patterns. The timing of these setups, particularly during specified times like 3:00 AM, 6:00 AM, 9:00 AM, and 1:00 PM, is crucial for maximizing trade success.
Using the 3 Candle Model in Trading
Integration with PO3:
The Power of Three (PO3) is a fundamental aspect of the 3 Candle Model that emphasizes the significance of three distinct stages of price delivery. Traders can leverage this principle by observing the initial range, confirming patterns, and executing trades during the third phase, leading to higher risk-to-reward ratios. This three-stage approach enhances a trader's ability to make informed decisions based on market behavior.
Targeting Midpoints:
Successful application of the 3 Candle Model involves targeting the midpoints of identified ranges. This practice not only provides strategic entry points but also enhances the probability of reaching desired profit levels. By targeting these midpoints, traders can refine their exit strategies and manage risk more effectively.
Aligning with Market Timing:
Timing is everything in trading. By synchronizing the 3 Candle Model setups with the aforementioned key timeframes, traders can better position themselves to exploit market dynamics. This alignment also facilitates the identification of high-quality trades that exhibit strong potential for profitability.
Prioritizing A+ Setups:
By focusing on the 3 Candle Model and its associated concepts, traders can prioritize A+ setups that exhibit a strong alignment of factors. This methodical approach enhances the quality of trades taken, leading to improved overall performance. By cultivating a strategy centered on high-probability setups, traders can maximize their return on investment.
Ensuring Originality and Usefulness
To meet the TradingView community guidelines, it is essential that this script is both original and useful. The 3 Candle Model, in its essence, is designed to provide traders with a unique perspective on market movements, free from generic or rehashed strategies. This tool integrates unique interpretations of the three-candle model and the associated strategies that are distinctly articulated and innovative.
Practical Applications: there are many practical applications of the 3 Candle Model in various trading contexts. This model in conjunction with other strategies to cultivate high-probability trade setups that can enhance performance across diverse market conditions.
Educational Value: This script is crafted with educational value in mind, providing insights that extend beyond mere trading signals. It encourages users to develop a deeper understanding of market mechanics and the interplay between price action, time, and trader psychology.
Conclusion
The 3 Candle Model provides a comprehensive framework for traders to enhance their trading strategies in the futures and forex markets. By understanding and applying the principles of this model alongside the Power of Three, OHLC concepts, and Turtle Soup formations, traders can significantly improve their ability to identify high-probability trades. The emphasis on timing, delivery states, and alignment of ranges ensures that traders are well-equipped to navigate the complexities of market movements, ultimately leading to more consistent and rewarding trading outcomes.
As trading involves risk, it is essential for traders to utilize these principles judiciously and maintain a disciplined approach to their trading strategies. By adhering to the TradingView community guidelines and emphasizing originality, usefulness, and detailed descriptions, this 3 Candle Model script stands as a valuable resource for traders seeking to refine their skills and achieve greater success in the financial markets.
Through this detailed exploration of the 3 Candle Model, traders will not only learn to recognize and exploit key patterns in price action but also appreciate the interconnectedness of various trading strategies that can significantly enhance their performance and profitability.
FVG Channel [LuxAlgo]The FVG Channel indicator displays a channel constructed from the averages of unmitigated historical fair value gaps (FVG), allowing to identify trends and potential reversals in the market.
Users can control the amount of FVGs to consider for the calculation of the channels, as well as their degree of smoothness through user settings.
🔶 USAGE
The FVG Channel is constructed by averaging together recent unmitigated Bullish FVGs (contributing to the creation of the upper bands), and Bearish unmitigated FVGs (contributing to the creation of the lower bands) within a lookback determined by the user. A higher lookback will return longer-term indications from the indicator.
The channel includes 5 bands, with one upper and one lower outer extremities, as well as an inner series of values determined using the Fibonacci ratios (respectively 0.786, 0.5, 0.236) from the channel's outer extremities.
An uptrend can be identified by price holding above the inner upper band (obtained from the 0.786 ratio), this band can also provide occasional support when the price retraces to it while in an uptrend.
Breaking below the inner upper band with an unwillingness to reach above again is a clear sign of hesitation in the market and can be indicative of an upcoming consolidation or reversal.
This can directly be applied to downtrends as well, below are examples displaying both scenarios.
Uptrend Example:
Downtrend Example:
🔹 Breakout Levels
When the price mitigates all FVGs in a single direction except for 1, the indicator will display a "Breakout Level". This is the level that price will need to cross in order for all FVGs in that direction to be mitigated, because of this they can also be aptly called "Last Stand Levels".
These levels can be considered as potential support and resistance levels, however, should always be monitored for breakouts since a substantial push above or below these points would indicate strong momentum.
🔹 Signals
The indicator includes Bullish and Bearish Signals, these signals fire when all FVGs for a single direction have been mitigated and an engulfing candle occurs in the opposite direction. These are reversal signals and should be used alongside other indicators to appropriately manage risk.
Note: When all FVGs in a single direction have been mitigated, the candles will change colors accordingly.
🔶 DETAILS
The script uses a typical identification method for FVGs. Once identified, the script collects and stores the mitigation levels of the respective bullish and bearish FVGs:
For Bullish FVGs this is the bottom of the FVG.
For Bearish FVGs this is the top of the FVG.
The data is managed to only consider a specific amount of FVG mitigation levels, determined by the set "Unmitigated FVG Lookback". If an FVG is mitigated, it frees up a spot in the memory for a new FVG, however, if the memory is full, the oldest will be deleted.
The averages displayed (Channel Upper and Lower) are created from 2 calculation steps, the first step involves taking the raw average of the FVG mitigation levels, and the second step applies a simple moving average (SMA) smoothing of the precedent obtained averages.
Note: To view the mitigation levels average obtained in the first step, the "Smoothing Length" can be set to 1.
🔶 SETTINGS
Unmitigated FVG Lookback: Sets the maximum number of Unmitigated FVG mitigation levels that the script will use to calculate the channel.
Smoothing Length: Sets the smoothing length for the channel to reduce noise from the raw data.
Custom Moving Average Ribbon with EMA Table & Text ColorComprehensive Description of the Custom Moving Average Ribbon with EMA Table & Text Color
The Custom Moving Average Ribbon with EMA Table & Text Color is a highly flexible and customizable indicator designed for traders who use multiple moving averages to assess trends, strength, and potential market reversals. It plots up to 8 moving averages (either SMA, EMA, WMA, or VWMA) on the price chart and displays a table summarizing the moving averages’ values, periods, and colors. The table also allows for the customization of the text color, making it easier to align with your chart’s theme or preference.
Key Features:
Multiple Moving Averages: You can display up to 8 moving averages (MA), each of which can be customized in terms of:
Type: SMA (Simple Moving Average), EMA (Exponential Moving Average), WMA (Weighted Moving Average), or VWMA (Volume-Weighted Moving Average).
Period: Each moving average has a user-defined period, which allows for flexibility depending on your trading style (short-term, medium-term, or long-term).
Enable/Disable: Each moving average can be independently enabled or disabled based on your preference.
Moving Average Ribbon: The indicator visualizes multiple moving averages as a ribbon, giving traders insight into the market's underlying trend. The interaction between these moving averages provides essential signals:
Uptrend: Shorter-term MAs above longer-term MAs, all sloping upward.
Downtrend: Shorter-term MAs below longer-term MAs, sloping downward.
Consolidation: MAs tightly packed, indicating low volatility or a sideways market.
Customizable Table: The indicator includes a table that displays:
The Name of each moving average (e.g., MA 1, MA 2, etc.).
The Period used for each moving average.
The Current Value of each moving average.
Color Coding for easier visual identification on the chart.
Text Color Customization: You can change the text color in the table to match your chart style or to ensure high visibility.
Responsive Design: This indicator works on any time frame, whether you're a day trader, swing trader, or long-term investor, and the table adjusts dynamically as new data comes in.
How to Use the Indicator
a) Trend Identification
The Custom Moving Average Ribbon helps in identifying trends and their strength. Here’s how you can interpret the plotted moving averages:
Uptrend (Bullish):
If the shorter-term moving averages (e.g., 5-period, 10-period) are above the longer-term moving averages (e.g., 50-period, 200-period), and all the MAs are sloping upward, it suggests a strong bullish trend.
The greater the separation between the moving averages, the stronger the uptrend.
Use the table to quickly verify the current value of each MA and confirm that the price is staying above most or all of the MAs.
Downtrend (Bearish):
When shorter-term moving averages are below the longer-term moving averages and all MAs are sloping downward, this indicates a bearish trend.
Greater separation between MAs indicates a stronger downtrend.
Neutral/Consolidating Market:
If the MAs are tightly packed and frequently crossing each other, the market is likely consolidating, and a strong trend is not in play.
In these situations, it’s better to wait for a clearer signal before taking any positions.
b) Reversal Signals
Golden Cross: When a short-term moving average (e.g., 50-period) crosses above a long-term moving average (e.g., 200-period), this is considered a bullish signal, suggesting a possible upward trend.
Death Cross: When a short-term moving average crosses below a long-term moving average, it’s considered a bearish signal, indicating a potential downward trend.
c) Using the Table for Quick Reference
The table allows you to monitor:
The current price value relative to each moving average. If the price is above most MAs, the market is likely in an uptrend, and if below, in a downtrend.
Changes in MA values: If you see values of shorter-term MAs moving closer to or crossing longer-term MAs, this could indicate a weakening trend or a potential reversal.
How to Combine this Indicator with Other Indicators for a Solid Strategy
The Custom Moving Average Ribbon is powerful on its own but can be enhanced when combined with other technical indicators to form a comprehensive trading strategy.
1. Combining with RSI (Relative Strength Index)
How It Works: RSI is a momentum oscillator that measures the speed and change of price movements, typically over 14 periods. It ranges from 0 to 100, with readings above 70 considered overbought and below 30 considered oversold.
Strategy:
Overbought in an Uptrend: If the moving average ribbon indicates an uptrend but the RSI shows the market is overbought (RSI > 70), it could signal a pullback or correction is imminent.
Oversold in a Downtrend: If the moving average ribbon indicates a downtrend but the RSI shows oversold conditions (RSI < 30), a bounce or reversal may be on the horizon.
2. Combining with MACD (Moving Average Convergence Divergence)
How It Works: MACD tracks the difference between two exponential moving averages, typically the 12-period and 26-period EMAs. It generates buy and sell signals based on crossovers and divergences.
Strategy:
Trend Confirmation: Use the MACD to confirm the direction and momentum of the trend indicated by the moving average ribbon. For example, if the MACD line crosses above the signal line while the shorter-term MAs are above the longer-term MAs, it confirms strong bullish momentum.
Divergences: Watch for divergences between price action and MACD. If price is making higher highs but MACD is making lower highs, it could signal a weakening trend, which you can verify using the moving averages.
3. Combining with Bollinger Bands
How It Works: Bollinger Bands plot two standard deviations above and below a moving average, typically the 20-period SMA. The bands widen during periods of high volatility and contract during periods of low volatility.
Strategy:
Breakout or Reversal: If price action moves above the upper Bollinger Band while the shorter-term MAs are crossing above the longer-term MAs, it confirms a strong breakout. Conversely, if price touches or falls below the lower Bollinger Band and the shorter MAs start crossing below the longer-term MAs, it indicates a potential breakdown.
Mean Reversion: In sideways markets, when the moving averages are tightly packed, Bollinger Bands can help spot mean reversion opportunities (buy near the lower band, sell near the upper band).
4. Combining with Volume Indicators
How It Works: Volume is a crucial confirmation indicator for any trend or breakout. Combining volume with the moving average ribbon can enhance your strategy.
Strategy:
Trend Confirmation: If the price breaks above the moving averages and is accompanied by high volume, it confirms a strong breakout. Similarly, if price breaks below the moving averages on high volume, it signals a strong downtrend.
Divergence: If price continues to trend in one direction but volume decreases, it could indicate a weakening trend, helping you prepare for a reversal.
Example Strategies Using the Indicator
Trend-Following Strategy:
Use the moving average ribbon to identify the main trend.
Combine with MACD or RSI for confirmation of momentum.
Enter trades when the shorter-term MAs confirm the trend and the confirmation indicator (MACD or RSI) aligns with the trend.
Exit trades when the moving averages start converging or when your confirmation indicator shows signs of reversal.
Reversal Strategy:
Wait for significant crossovers in the moving averages (Golden Cross or Death Cross).
Confirm the reversal with divergence in MACD or RSI.
Use Bollinger Bands to fine-tune your entry and exit points based on overbought/oversold conditions.
Conclusion
The Custom Moving Average Ribbon with EMA Table & Text Color indicator provides a robust framework for traders looking to use multiple moving averages to gauge trend direction, strength, and potential reversals. By combining it with other technical indicators like RSI, MACD, Bollinger Bands, and volume, you can develop a solid trading strategy that enhances accuracy, reduces false signals, and maximizes profit potential in various market conditions.
This indicator offers high flexibility with customization options, making it suitable for traders of all levels and strategies. Whether you're trend-following, scalping, or swing trading, this tool provides invaluable insights into market movements.
Amplitude [Anan]The Amplitude indicator calculates and visualizes both the amplitude and cumulative amplitude of price movements, providing traders with insights into price volatility and trend strength. By distinguishing between positive and negative amplitude movements, this indicator aids in identifying bullish and bearish sentiments, potential reversal points, and confirming trend directions.
█ Main Formulas
‣ Amplitude = High - Low
‣ Cumulative Amplitude = sum of Amplitude over the specified lookback period
‣ Percentage Amplitude = (Amplitude / Open) × 100%
High: Candle high (or highest high when lookback > 1)
Low: Candle low (or lowest low when lookback > 1)
Open: Open price of the first candle in the lookback period
█ Key Features
✦Dual Amplitude Calculations:
Amplitude: Reflects price range and direction over a short-term period.
Cumulative Amplitude: Aggregates amplitude over a longer period for broader trend analysis.
✦Customizable Parameters: Adjust lookback periods, smoothing options, moving averages and Alerts.
✦Direction Separation: Distinguish between positive and negative amplitude movements to identify market sentiment.
✦Flexible Visualization: Customizable colors and plot styles for enhanced chart readability.
✦Alert System: Generate signals based on amplitude direction and moving average crossovers
█ How to Use and Interpret
✦Understanding Amplitude and Cumulative Amplitude:
‣Amplitude: Measures the price range (high - low) over a specified short-term period.
‣Cumulative Amplitude: Aggregates amplitude over a defined longer-term period.
‣Percentage Representation: shows amplitude relative to the open price from `amp_length` bars ago, providing a normalized view.
‣Interpretation:
Large Amplitude Values: Indicate high volatility.
Small Amplitude Values: Indicate low volatility.
✦Trend Identification:
‣Uptrend: Consistently positive amplitudes and upward-moving averages.
‣Downtrend: Consistently negative amplitudes and downward-moving averages.
✦Overbought/Oversold Conditions:
‣High Positive Amplitude: May indicate overbought conditions and potential reversals.
‣High Negative Amplitude: May indicate oversold conditions and potential reversals.
✦Volatility Analysis:
‣High Amplitude Values: Suggest increased market volatility.
‣Low Amplitude Values: Suggest reduced market volatility.
✦Signal Confirmation:
‣Moving Average Crossovers: Confirm the strength and direction of trends, aiding in informed trading decisions.
✦Trading Strategies:
‣ Breakout Trading: Large increases in amplitude can signal potential breakouts.
‣ Mean Reversion: Extreme amplitude values may indicate upcoming price corrections.
‣ Volatility-Based Strategies: Adjust position sizes or trading frequency based on amplitude magnitudes.
‣ Multi-Timeframe Analysis: Compare amplitudes across different timeframes for a comprehensive market view.
█ Customization Tips
‣ Lookback Periods: Experiment with different periods to suit your trading style and asset characteristics.
‣ Smoothing Settings: Adjust to balance responsiveness and noise reduction.
‣ Percentage Amplitude: Use for normalized comparisons across different price levels.
Curved Price Channels (Zeiierman)█ Overview
The Curved Price Channels (Zeiierman) is designed to plot dynamic channels around price movements, much like the traditional Donchian Channels, but with a key difference: the channels are curved instead of straight. This curvature allows the channels to adapt more fluidly to price action, providing a smoother representation of the highest high and lowest low levels.
Just like Donchian Channels, the Curved Price Channels help identify potential breakout points and areas of trend reversal. However, the curvature offers a more refined approach to visualizing price boundaries, making it potentially more effective in capturing price trends and reversals in markets that exhibit significant volatility or price swings.
The included trend strength calculation further enhances the indicator by offering insight into the strength of the current trend.
█ How It Works
The Curved Price Channels are calculated based on the asset's average true range (ATR), scaled by the chosen length and multiplier settings. This adaptive size allows the channels to expand and contract based on recent market volatility. The central trendline is calculated as the average of the upper and lower curved bands, providing a smoothed representation of the overall price trend.
Key Calculations:
Adaptive Size: The ATR is used to dynamically adjust the width of the channels, making them responsive to changes in market volatility.
Upper and Lower Bands: The upper band is calculated by taking the maximum close value and adjusting it downward by a factor proportional to the ATR and the multiplier. Similarly, the lower band is calculated by adjusting the minimum close value upward.
Trendline: The trendline is the average of the upper and lower bands, representing the central tendency of the price action.
Trend Strength
The Trend Strength feature in the Curved Price Channels is a powerful feature designed to help traders gauge the strength of the current trend. It calculates the strength of a trend by analyzing the relationship between the price's position within the curved channels and the overall range of the channels themselves.
Range Calculation:
The indicator first determines the distance between the upper and lower curved channels, known as the range. This range represents the overall volatility of the price within the given period.
Range = Upper Band - Lower Band
Relative Position:
The next step involves calculating the relative position of the closing price within this range. This value indicates where the current price sits in relation to the overall range.
RelativePosition = (Close - Trendline) / Range
Normalization:
To assess the trend strength over time, the current range is normalized against the maximum and minimum ranges observed over a specified look-back period.
NormalizedRange = (Range - Min Range) / (Max Range - Min Range)
Trend Strength Calculation:
The final Trend Strength is calculated by multiplying the relative position by the normalized range and then scaling it to a percentage.
TrendStrength = Relative Position * Normalized Range * 100
This approach ensures that the Trend Strength not only reflects the direction of the trend but also its intensity, providing a more comprehensive view of market conditions.
█ Comparison with Donchian Channels
Curved Price Channels offer several advantages over Donchian Channels, particularly in their ability to adapt to changing market conditions.
⚪ Adaptability vs. Fixed Structure
Donchian Channels: Use a fixed period to plot straight lines based on the highest high and lowest low. This can be limiting because the channels do not adjust to volatility; they remain the same width regardless of how much or how little the price is moving.
Curved Price Channels: Adapt dynamically to market conditions using the Average True Range (ATR) as a measure of volatility. The channels expand and contract based on recent price movements, providing a more accurate reflection of the market's current state. This adaptability allows traders to capture both large trends and smaller fluctuations more effectively.
⚪ Sensitivity to Market Movements
Donchian Channels: Are less sensitive to recent price action because they rely on a fixed look-back period. This can result in late signals during fast-moving markets, as the channels may not adjust quickly enough to capture new trends.
Curved Price Channels: Respond more quickly to changes in market volatility, making them more sensitive to recent price action. The multiplier setting further allows traders to adjust the channel's sensitivity, making it possible to capture smaller price movements during periods of low volatility or filter out noise during high volatility.
⚪ Enhanced Trend Strength Analysis
Donchian Channels: Do not provide direct insight into the strength of a trend. Traders must rely on additional indicators or their judgment to gauge whether a trend is strong or weak.
Curved Price Channels: Includes a built-in trend strength calculation that takes into account the distance between the upper and lower channels relative to the trendline. A broader range between the channels typically indicates a stronger trend, while a narrower range suggests a weaker trend. This feature helps traders not only identify the direction of the trend but also assess its potential longevity and strength.
⚪ Dynamic Support and Resistance
Donchian Channels: Offer static support and resistance levels that may not accurately reflect changing market dynamics. These levels can quickly become outdated in volatile markets.
Curved Price Channels: Offer dynamic support and resistance levels that adjust in real-time, providing more relevant and actionable trading signals. As the channels curve to reflect price movements, they can help identify areas where the price is likely to encounter support or resistance, making them more useful in volatile or trending markets.
█ How to Use
Traders can use the Curved Price Channels in similar ways to Donchian Channels but with the added benefits of the adaptive, curved structure:
Breakout Identification:
Just like Donchian Channels, when the price breaks above the upper curved band, it may signal the start of a bullish trend, while a break below the lower curved band could indicate a bearish trend. The curved nature of the channels helps in capturing these breakouts more precisely by adjusting to recent volatility.
Volatility:
The width of the price channels in the Curved Price Channels indicator serves as a clear indicator of current market volatility. A wider channel indicates that the market is experiencing higher volatility, as prices are fluctuating more dramatically within the period. Conversely, a narrower channel suggests that the market is in a lower volatility state, with price movements being more subdued.
Typically, higher volatility is observed during negative trends, where market uncertainty or fear drives larger price swings. In contrast, lower volatility is often associated with positive trends, where prices tend to move more steadily and predictably. The adaptive nature of the Curved Price Channels reflects these volatility conditions in real time, allowing traders to assess the market environment quickly and adjust their strategies accordingly.
Support and Resistance:
The trend line act as dynamic support and resistance levels. Due to it's adaptive nature, this level is more reflective of the current market environment than the fixed level of Donchian Channels.
Trend Direction and Strength:
The trend direction and strength are highlighted by the trendline and the directional candle within the Curved Price Channels indicator. If the price is above the trendline, it indicates a positive trend, while a price below the trendline signals a negative trend. This directional bias is visually represented by the color of the directional candle, making it easy for traders to quickly identify the current market trend.
In addition to the trendline, the indicator also displays Max and Min values. These represent the highest and lowest trend strength values within the lookback period, providing a reference point for understanding the current trend strength relative to historical levels.
Max Value: Indicates the highest recorded trend strength during the lookback period. If the Max value is greater than the Min value, it suggests that the market has generally experienced more positive (bullish) conditions during this time frame.
Min Value: Represents the lowest recorded trend strength within the same period. If the Min value is greater than the Max value, it indicates that the market has been predominantly negative (bearish) over the lookback period.
By assessing these Max and Min values, traders gain an immediate understanding of the underlying trend. If the current trend strength is close to the Max value, it indicates a strong bullish trend. Conversely, if the trend strength is near the Min value, it suggests a strong bearish trend.
█ Settings
Trend Length: Defines the number of bars used to calculate the core trendline and adaptive size. A length of 200 will create a smooth, long-term trendline that reacts slowly to price changes, while a length of 20 will create a more responsive trendline that tracks short-term movements.
Multiplier: Adjusts the width of the curved price channels. A higher value tightens the channels, making them more sensitive to price movements, while a lower value widens the channels. A multiplier of 10 will create tighter channels that are more sensitive to minor price fluctuations, which is useful in low-volatility markets. A multiplier of 2 will create wider channels that capture larger trends and are better suited for high-volatility markets.
Trend Strength Length: Defines the period over which the maximum and minimum ranges are calculated to normalize the trend strength. A length of 200 will smooth out the trend strength readings, providing a stable indication of trend health, whereas a length of 50 will make the readings more reactive to recent price changes.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Advanced Keltner Channel/Oscillator [MyTradingCoder]This indicator combines a traditional Keltner Channel overlay with an oscillator, providing a comprehensive view of price action, trend, and momentum. The core of this indicator is its advanced ATR calculation, which uses statistical methods to provide a more robust measure of volatility.
Starting with the overlay component, the center line is created using a biquad low-pass filter applied to the chosen price source. This provides a smoother representation of price than a simple moving average. The upper and lower channel lines are then calculated using the statistically derived ATR, with an additional set of mid-lines between the center and outer lines. This creates a more nuanced view of price action within the channel.
The color coding of the center line provides an immediate visual cue of the current price momentum. As the price moves up relative to the ATR, the line shifts towards the bullish color, and vice versa for downward moves. This color gradient allows for quick assessment of the current market sentiment.
The oscillator component transforms the channel into a different perspective. It takes the price's position within the channel and maps it to either a normalized -100 to +100 scale or displays it in price units, depending on your settings. This oscillator essentially shows where the current price is in relation to the channel boundaries.
The oscillator includes two key lines: the main oscillator line and a signal line. The main line represents the current position within the channel, smoothed by an exponential moving average (EMA). The signal line is a further smoothed version of the oscillator line. The interaction between these two lines can provide trading signals, similar to how MACD is often used.
When the oscillator line crosses above the signal line, it might indicate bullish momentum, especially if this occurs in the lower half of the oscillator range. Conversely, the oscillator line crossing below the signal line could signal bearish momentum, particularly if it happens in the upper half of the range.
The oscillator's position relative to its own range is also informative. Values near the top of the range (close to 100 if normalized) suggest that price is near the upper Keltner Channel band, indicating potential overbought conditions. Values near the bottom of the range (close to -100 if normalized) suggest proximity to the lower band, potentially indicating oversold conditions.
One of the strengths of this indicator is how the overlay and oscillator work together. For example, if the price is touching the upper band on the overlay, you'd see the oscillator at or near its maximum value. This confluence of signals can provide stronger evidence of overbought conditions. Similarly, the oscillator hitting extremes can draw your attention to price action at the channel boundaries on the overlay.
The mid-lines on both the overlay and oscillator provide additional nuance. On the overlay, price action between the mid-line and outer line might suggest strong but not extreme momentum. On the oscillator, this would correspond to readings in the outer quartiles of the range.
The customizable visual settings allow you to adjust the indicator to your preferences. The glow effects and color coding can make it easier to quickly interpret the current market conditions at a glance.
Overlay Component:
The overlay displays Keltner Channel bands dynamically adapting to market conditions, providing clear visual cues for potential trend reversals, breakouts, and overbought/oversold zones.
The center line is a biquad low-pass filter applied to the chosen price source.
Upper and lower channel lines are calculated using a statistically derived ATR.
Includes mid-lines between the center and outer channel lines.
Color-coded based on price movement relative to the ATR.
Oscillator Component:
The oscillator component complements the overlay, highlighting momentum and potential turning points.
Normalized values make it easy to compare across different assets and timeframes.
Signal line crossovers generate potential buy/sell signals.
Advanced ATR Calculation:
Uses a unique method to compute ATR, incorporating concepts like root mean square (RMS) and z-score clamping.
Provides both an average and mode-based ATR value.
Customizable Visual Settings:
Adjustable colors for bullish and bearish moves, oscillator lines, and channel components.
Options for line width, transparency, and glow effects.
Ability to display overlay, oscillator, or both simultaneously.
Flexible Parameters:
Customizable inputs for channel width multiplier, ATR period, smoothing factors, and oscillator settings.
Adjustable Q factor for the biquad filter.
Key Advantages:
Advanced ATR Calculation: Utilizes a statistical method to generate ATR, ensuring greater responsiveness and accuracy in volatile markets.
Overlay and Oscillator: Provides a comprehensive view of price action, combining trend and momentum analysis.
Customizable: Adjust settings to fine-tune the indicator to your specific needs and trading style.
Visually Appealing: Clear and concise design for easy interpretation.
The ATR (Average True Range) in this indicator is derived using a sophisticated statistical method that differs from the traditional ATR calculation. It begins by calculating the True Range (TR) as the difference between the high and low of each bar. Instead of a simple moving average, it computes the Root Mean Square (RMS) of the TR over the specified period, giving more weight to larger price movements. The indicator then calculates a Z-score by dividing the TR by the RMS, which standardizes the TR relative to recent volatility. This Z-score is clamped to a maximum value (10 in this case) to prevent extreme outliers from skewing the results, and then rounded to a specified number of decimal places (2 in this script).
These rounded Z-scores are collected in an array, keeping track of how many times each value occurs. From this array, two key values are derived: the mode, which is the most frequently occurring Z-score, and the average, which is the weighted average of all Z-scores. These values are then scaled back to price units by multiplying by the RMS.
Now, let's examine how these values are used in the indicator. For the Keltner Channel lines, the mid lines (top and bottom) use the mode of the ATR, representing the most common volatility state. The max lines (top and bottom) use the average of the ATR, incorporating all volatility states, including less common but larger moves. By using the mode for the mid lines and the average for the max lines, the indicator provides a nuanced view of volatility. The mid lines represent the "typical" market state, while the max lines account for less frequent but significant price movements.
For the color coding of the center line, the mode of the ATR is used to normalize the price movement. The script calculates the difference between the current price and the price 'degree' bars ago (default is 2), and then divides this difference by the mode of the ATR. The resulting value is passed through an arctangent function and scaled to a 0-1 range. This scaled value is used to create a color gradient between the bearish and bullish colors.
Using the mode of the ATR for this color coding ensures that the color changes are based on the most typical volatility state of the market. This means that the color will change more quickly in low volatility environments and more slowly in high volatility environments, providing a consistent visual representation of price momentum relative to current market conditions.
Using a good IIR (Infinite Impulse Response) low-pass filter, such as the biquad filter implemented in this indicator, offers significant advantages over simpler moving averages like the EMA (Exponential Moving Average) or other basic moving averages.
At its core, an EMA is indeed a simple, single-pole IIR filter, but it has limitations in terms of its frequency response and phase delay characteristics. The biquad filter, on the other hand, is a two-pole, two-zero filter that provides superior control over the frequency response curve. This allows for a much sharper cutoff between the passband and stopband, meaning it can more effectively separate the signal (in this case, the underlying price trend) from the noise (short-term price fluctuations).
The improved frequency response of a well-designed biquad filter means it can achieve a better balance between smoothness and responsiveness. While an EMA might need a longer period to sufficiently smooth out price noise, potentially leading to more lag, a biquad filter can achieve similar or better smoothing with less lag. This is crucial in financial markets where timely information is vital for making trading decisions.
Moreover, the biquad filter allows for independent control of the cutoff frequency and the Q factor. The Q factor, in particular, is a powerful parameter that affects the filter's resonance at the cutoff frequency. By adjusting the Q factor, users can fine-tune the filter's behavior to suit different market conditions or trading styles. This level of control is simply not available with basic moving averages.
Another advantage of the biquad filter is its superior phase response. In the context of financial data, this translates to more consistent lag across different frequency components of the price action. This can lead to more reliable signals, especially when it comes to identifying trend changes or price reversals.
The computational efficiency of biquad filters is also worth noting. Despite their more complex mathematical foundation, biquad filters can be implemented very efficiently, often requiring only a few operations per sample. This makes them suitable for real-time applications and high-frequency trading scenarios.
Furthermore, the use of a more sophisticated filter like the biquad can help in reducing false signals. The improved noise rejection capabilities mean that minor price fluctuations are less likely to cause unnecessary crossovers or indicator movements, potentially leading to fewer false breakouts or reversal signals.
In the specific context of a Keltner Channel, using a biquad filter for the center line can provide a more stable and reliable basis for the entire indicator. It can help in better defining the overall trend, which is crucial since the Keltner Channel is often used for trend-following strategies. The smoother, yet more responsive center line can lead to more accurate channel boundaries, potentially improving the reliability of overbought/oversold signals and breakout indications.
In conclusion, this advanced Keltner Channel indicator represents a significant evolution in technical analysis tools, combining the power of traditional Keltner Channels with modern statistical methods and signal processing techniques. By integrating a sophisticated ATR calculation, a biquad low-pass filter, and a complementary oscillator component, this indicator offers traders a comprehensive and nuanced view of market dynamics.
The indicator's strength lies in its ability to adapt to varying market conditions, providing clear visual cues for trend identification, momentum assessment, and potential reversal points. The use of statistically derived ATR values for channel construction and the implementation of a biquad filter for the center line result in a more responsive and accurate representation of price action compared to traditional methods.
Furthermore, the dual nature of this indicator – functioning as both an overlay and an oscillator – allows traders to simultaneously analyze price trends and momentum from different perspectives. This multifaceted approach can lead to more informed decision-making and potentially more reliable trading signals.
The high degree of customization available in the indicator's settings enables traders to fine-tune its performance to suit their specific trading styles and market preferences. From adjustable visual elements to flexible parameter inputs, users can optimize the indicator for various trading scenarios and time frames.
Ultimately, while no indicator can predict market movements with certainty, this advanced Keltner Channel provides traders with a powerful tool for market analysis. By offering a more sophisticated approach to measuring volatility, trend, and momentum, it equips traders with valuable insights to navigate the complex world of financial markets. As with any trading tool, it should be used in conjunction with other forms of analysis and within a well-defined risk management framework to maximize its potential benefits.
