Donchian MA Bands [LuxAlgo]The Donchian MA Bands script is a complete trend indicator derived from the popular Donchian channel indicator as well as various customizable moving averages to estimate trend direction and build support/resistance levels & zones.
🔶 USAGE
The indicator outputs various elements, the main ones being a lower dynamic zone (blue by default), an upper dynamic zone (in orange by default), and one support and resistance level/zones (red/green by default).
A prominent lower zone is indicative of an uptrend, while a prominent upper zone is indicative of a downtrend. These zones can be used as support/resistance as well.
Support/resistance zones and levels can be used using a breakout methodology or to determine price bounced if a level was tested multiple times.
The indicator contains various modes affecting the output of the indicator, described below.
🔹 Clouds
Clouds return one upper/lower dynamic zone and look/act similarly to a trailing stop. Price over the lower zone is indicative of an uptrend, and price under the upper zone is indicative of a downtrend.
🔹 Upper Band
The upper band mode returns a dynamic zone closer to prices during an uptrend, and farther away during a downtrend.
This band can act as a support during uptrends.
🔹 Lower Band
The lower band mode returns a dynamic zone closer to prices during an uptrend, and farther away during a downtrend.
This band can act as a resistance during downtrends.
🔹 Bands
Bands return both upper and lower zones, the zones are more apparent depending on the price trend direction, with uptrends being indicated by a more visible lower zone, and downtrends being indicated by a more visible upper zone.
Breakout dots are highlighted when price breakout the indicator displayed extremities, and can be indicative of a confirmed trend reversal.
These breakouts can be more effective for trend following during trending markets. Ranging markets might return breakouts highlighting the top/bottom.
🔶 DETAILS
The core of this script is the highest / lowest mean average (MA) value for a given number of bars back ( Donchian lines).
This is repeated a few times with the obtained values.
When Bands are chosen ( Style ) this will be repeated 1 more time.
The type of mean average can be customized ( Type MA ), as well as the number of bars back ( Length ).
Depending on the choice of bands ( Style ) the script will focus on certain area's of interest.
When the option Clouds , Upper band or Lower band is chosen, an extra feature, support/resistance (S/R), will be shown.
These color-filled areas are visible when there is a difference between the 2nd and 3rd highest/lowest values.
The lines/areas can be used for stop loss, entry, exit,...
You can set the type of MA and Length separately ( Settings -> S/R ).
If you don't need this feature, simply set Type ( Settings -> S/R ) -> NONE
The shape sometimes resembles triangles, indicating a potential direction
Default the average of the highest and lowest values is plotted (Style -> Mid Donchian)
This can act as potential support/resistance or visualization of the trend, the mean average is not plotted but can be (Style -> MA)
🔹 Note
When the option Bands is chosen, an indication is plotted when the closing price breaks above the highest band or breaks below the lower band. This isn't necessarily a buy/sell signal, it is merely a signal that these lines are broken.
Users should decide on their own how they use the bands/lines/areas as entry, exit, trailing stop, stop loss, profit taking,...
🔶 SETTINGS
🔹 Bands
Style: Clouds (default), Upper band, Lower band, Bands
Type MA: choose between SMA, EMA, RMA, HullMA, WMA, VWMA (default), DEMA, TEMA, NONE (off)
Length: Length of moving average and Donchian calculations (default 20)
Colour Bands
🔹 S/R (Support/Resistance, visible with Clouds, Upper band or Lower band)
Type MA: choose between SMA, EMA, RMA, HullMA, WMA, VWMA (default), DEMA, TEMA, NONE (off)
Length: Length of moving average and Donchian calculations (default 20)
Colour S/R
在腳本中搜尋"support"
Fibonacci Ranges (Real-Time) [LuxAlgo]The "Fibonacci Ranges" indicator combines Fibonacci ratio-derived ranges (channels), together with a Fibonacci pattern of the latest swing high/low.
🔶 USAGE
The indicator draws real-time ranges based on Fibonacci ratios as well as retracements. Breakouts from a Fibonacci Channel are also indicated by labels, indicating a potential reversal.
Each range extremity/area can also be used as support/resistance.
🔶 CONCEPTS
Fibonacci Channels
Latest Fibonacci
Both, Latest Fibonacci and Fibonacci Channels , display different Fibonacci levels (labels not included in the code):
However, the 2 react in a totally different way.
🔹 Fibonacci Channels
2 conditions must be fulfilled until a Fibonacci Channel is displayed:
New swing high/low
close has to be between chosen limits/levels ( Break level )
As visual guidance, chosen Break levels are accentuated by 2 small gray blocks:
Once the channel is displayed, it will remain visible until x consecutive bars break out of the chosen Break level at closing time.
• x consecutive bars is set by Break count .
The amount of breaks is counted in the code. When the price, without breaking the user-set limit, closes back between the 2 levels, the count is reset to 0.
By enabling Channels and Shadows you can see previous channels (" Shadows ", which is always delayed with 1 bar)
Previous channels can be helpful in finding potential support/resistance areas, especially from large channel blocks
The more narrow Break levels are set the less chance the price closes between these 2 levels, and the quicker close breaks out.
In other words, narrow levels give fewer & smaller channels, broader levels give more & larger channels.
Note:
• swing settings: L & R
• Break count (x consecutive bars that close outside chosen levels to invalidate the Fibonacci Channel )
will also be of influence in displaying the channels.
• Show breaks enable you to visualize signals when there is a break:
• Alerts can also be set ( Break Down / Break Up )
🔹 Latest Fibonacci
This displays the Fibonacci levels between the latest swing high and swing low, independently from the Fibonacci Channel .
The Lastest Fibonacci can be helpful in detecting the current trend against the larger Fibonacci Channel .
🔶 SETTINGS
🔹 Swing Settings
L: set left of pivothigh / pivotlow
R: set right of pivothigh / pivotlow
🔹 Fibonacci Channels
Channel : Channel / Channels + Shadows / None
Break level
-0.382 - 1.382
0.000 - 1.000
0.236 - 0.764
0.382 - 0.618
Break count
🔹 Fibonacci
Toggle
Colours: [ -0.382 - 0 ], [ 0.236 - 0.382 ], [ 0.5 ], [ 0.618 - 0.764 ], [ 1 - 1.382 ]
[MAD] MindreaderHi,
This is a multiband indicator that shows you liquid support and resistance ranges based on growing offsets and growing ATR channels.
In the end, when setup well, you can make, based on historical observations, estimates of how traders will react, maybe identical again.
How to use:
Setup:
Activate the two checkboxes for centerline and All_Lines
Start with the middle line to establish the general direction of the asset.
With the 6 following options, you try to match the trends in the outer bands as good as possible.
Small changes can be made by till you have best fitting overall bands. I tried to make small steppingsize to visual setup very easy. Change a bit... wait look,... change a bit, wait look...
Deactivate the two setup boxes and continue with setting up the colors.
Have fun figuring out the perfect wave !!
Trade Tool VDWMA + OI RSI BasedThis indicator works only for symbols where open interest data is available.
The idea was to create a combination of Volume Delta, Open Interest, RSI, Moving Average and Support / Resistance as a unified tool.
I created a Weighted Moving Average based on the Volume Delta (VDWMA). The idea behind this was to reflect the moving average on the difference between buy and sell volume.
There are two VDWMA to determine a trend. Fast and Slow. The principle is the same as with conventional moving averages. For visualization, the candles are colored based on the following logic:
up trend = Fast VDWMA is above the Slow VDWMA and the price is above the Fast VWDWMA.
down Trend = Fast VDWMA is below the Slow VDWMA and the Short is below the Fast VDWMA
Further, support and resistance zones were defined based on the close and high prices as well as close and low prices.
A simple logic looks for divergences between RSI and price to generate first signals for possible price reversals.
Another RSI was created based on the open interest.
In combination with the conventional RSI, oversold and overbought zones were defined based on the following logic, which are marked by vertical zones on the chart.
Oversold zone = RSI is below 30 and OI RSI is above 70 or below 30 and OI opening is not greater than OI closing price
Overbought zone = RSI is above 70 and OI RSI is above 70 or below 30 and OI opening is not smaller than OI closing price
Based on this, buy and sell signals were defined.
First, the support or resistance zone must remain the same for two candles, which signals that the zone has not been breached. In addition, a divergence must occur in the RSI and the price must bounce.
newsell = resistance == resistance and high >= resistance and close < resistance and bearishDiv
newbull = support == support and low <= support and close > support and bullishDiv
The OI signaling was deliberately not included as well as the trend function. The tool should be suitable for scalping as well as for swinging. Thus, depending on the tradestyle itself to decide which points you want to trade.
Have fun with it
Master Pattern [LuxAlgo]The Master Pattern indicator is derived from the framework proposed by Wyckoff and automatically displays major/minor patterns and their associated expansion lines on the chart.
Liquidity levels are also included and can be used as targets/stops. Note that the Liquidity levels are plotted retrospectively as they are based on pivots.
🔶 USAGE
The Master Pattern indicator detects contraction phases in the markets (characterized by a lower high and higher low). The resulting average from the latest swing high/low is used as expansion line. Price breaking the contraction range upwards highlights a bullish master pattern, while a break downward highlights a bearish master pattern.
During the expansion phase price can tend to be stationary around the expansion level. This phase is then often followed by the price significantly deviating from the expansion line, highlighting a markup phase.
Expansion lines can also be used as support/resistance levels.
🔹 Major/Minor Patterns
The script can classify patterns as major or minor patterns.
Major patterns occur when price breaks both the upper and lower extremity of a contraction range, with their contraction area highlighted with a border, while minor patterns have only a single extremity broken.
🔶 SETTINGS
Contraction Detection Lookback: Lookback used to detect the swing points used to detect the contraction range.
Liquidity Levels: Lookback for the swing points detection used as liquidity levels. Higher values return longer term liquidity levels.
Show Major Pattern: Display major patterns.
Show Minor Pattern: Display minor patterns.
Extrapolated Previous Trend [LuxAlgo]The Extrapolated Previous Trend indicator extrapolates the estimated linear trend of the prices within a previous interval to the current interval. Intervals can be user-defined.
🔶 USAGE
Returned lines can be used to provide a forecast of trends, assuming trends are persistent in sign and slope.
Using them as support/resistance can also be an effecting usage in case the trend in a new interval does not follow the characteristic of the trend in the previous interval.
The indicator includes a dashboard showing the degree of persistence between segmented trends for uptrends and downtrends. A higher value is indicative of more persistent trend signs.
A lower value could hint at an anti-persistent behavior, with uptrends over an interval often being followed by a down-trend and vice versa. We can invert candle colors to determine future trend direction in this case.
🔶 DETAILS
This indicator can be thought of as a segmented linear model ( a(n)t + b(n) ), where n is the specific interval index. Unlike a regular segmented linear regression model, this indicator is not subject to lookahead bias, coefficients of the model are obtained on previous intervals.
The quality of the fit of the model is dependent on the variability of its coefficients a(n) and b(n) . Coefficients being less subject to change over time are more indicative of trend persistence.
🔶 SETTINGS
Timeframe: Determine the frequency at which new trends are estimated.
Liquidity PeaksThe "Liquidity Peaks" indicator is a tool designed to identify significant supply and demand zones based on volumetric analysis. It analyzes the volume profile within a specified lookback range to pinpoint the most volumetric point and draw corresponding zones on the price chart.
The 𝐋𝐢𝐪. 𝐏𝐞𝐚𝐤𝐬 indicator utilizes volume data to identify key supply and demand areas on the price chart. By examining the volume profile within a defined lookback range, it highlights three distinct zones: liquidity grab, volume containment, and the most volumetric point.
Zones and their meanings:
Liquidity grab (Orange box): This zone represents a price level where there is a significant swipe of the previous demand zone within the volume range. It indicates a potential shift in market sentiment and serves as a key supply or demand area.
Volume containment (Gray box): This zone displays the area of volume contained before the peak in volume. It provides insights into the range where buying or selling pressure was concentrated, highlighting potential support or resistance levels.
Most volumetric point (Light blue box): This zone represents the point within the lookback range that exhibits the highest volume. It signifies a significant area of market interest and indicates a potential supply or demand level.
Adjustable options:
Adjust liquidity Grab: This option allows you to adjust the size of the boxes. When enabled, the box size is set to twice the size of the high or low of the candle's wick. This adjustment enhances the visibility and accuracy of identifying swipes at specific price levels.
Show origin: Enabling this option ensures that the liquidity boxes are drawn from the wick they were created from. This provides a clear visual reference to the specific candle and highlights the liquidity levels associated with it.
Utility:
The 𝐋𝐢𝐪. 𝐏𝐞𝐚𝐤𝐬 indicator is a valuable tool for traders and investors seeking to identify significant supply and demand zones in the market. By analyzing volume data and drawing corresponding zones on the chart, it helps to pinpoint areas where buying or selling pressure is likely to emerge.
Traders can utilize this information to identify potential support and resistance levels, plan their entries and exits, and make more informed trading decisions. The liquidity grab zones can act as potential reversal or breakout points, while the volume containment zones and most volumetric points provide insights into areas of high market interest.
It is important to note that this indicator should be used in conjunction with other technical analysis tools and indicators to confirm trading signals and validate market dynamics.
Example Charts:
RSI Chart LevelsThe RSI Chart Levels shows you in a simple way where Support/Resistance might be. You want to make sure all settings are the same in the RSI that you are using with this overlay to be accurate.
This is also good at spotting divergence in real-time. If price goes over the Higher High but the RSI hasn't gained a new Higher High it is showing divergence, vice versa for Lower Low.
This overlay was created with the idea of RSI Divergence Scanner by zdmre indicator. Add his RSI and match the settings to the chart overlay. The default Zigzag is set to 7 which zdmre settings is different so change to whatever you prefer.
Shoutout to zdmre original work!
Liquidity Sentiment Profile [LuxAlgo]The Liquidity Sentiment Profile is an advanced charting tool that measures by combining PRICE and VOLUME data over specified anchored periods and highlights within a sequence of profiles the distribution of the liquidity and the market sentiment at specific price levels.
The Liquidity Sentiment Profile allows traders to reveal significant price levels, dominant market sentiment, support and resistance levels, supply and demand zones, liquidity availability levels, liquidity gaps, consolidation zones, and more based on price and volume data.
Liquidity refers to the availability of orders at specific price levels in the market, allowing transactions to occur smoothly.
🔶 USAGE
A Liquidity Sentiment Profile is a combination of a liquidity and a sentiment profile, where the right part of the profile displays the distribution of the traded activity at different price levels and the left part displays the market sentiment at those price levels.
The Liquidity Sentiment Profiles are visualized with different colors, where each color has a different meaning.
The Liquidity Sentiment Profiles aim to present Value Areas based on the significance of price levels, thus allowing users to identify value areas that can be formed more than once within the range of a single profile.
Level of Significance Line - displays the changes in the price levels with the highest traded activity (developing POC)
🔶 SETTINGS
The script takes into account user-defined parameters and plots the profiles, where detailed usage for each user-defined input parameter in indicator settings is provided with the related input's tooltip.
🔹 Liquidity Sentiment Profiles
Anchor Period: The indicator resolution is set by the input of the Anchor Period, the default option is AUTO.
🔹 Liquidity Profile Settings
Liquidity Profile: Toggles the visibility of the Liquidity Profiles
High Traded Nodes: Threshold and Color option for High Traded Nodes
Average Traded Nodes: Color option for Average Traded Nodes
Low Traded Nodes: Threshold and Color option for Low Traded Nodes
🔹 Sentiment Profile Settings
Sentiment Profile: Toggles the visibility of the Sentiment Profiles
Bullish Nodes: Color option for Bullish Nodes
Bearish Nodes: Color option for Bearish Nodes
🔹 Other Settings
Level of Significance: Toggles the visibility of the Level of Significance Line
Profile Price Levels: Toggles the visibility of the Profile Price Levels
Number of Rows: Specify how many rows each profile histogram will have. Caution, having it set to high values will quickly hit Pine Script™ drawing objects limit and fewer historical profiles will be displayed
Profile Width %: Alters the width of the rows in the histogram, relative to the profile length
Profile Range Background Fill: Toggles the visibility of the Profiles Range
🔶 LIMITATIONS
The amount of drawing objects that can be used is limited, as such using a high number of rows can display fewer historical profiles and occasionally incomplete profiles.
🔶 RELATED SCRIPTS
🔹 Buyside-Sellside-Liquidity
🔹 ICT-Concepts
🔹 Swing-Volume-Profiles
Market Structure CHoCH/BOS (Fractal) [LuxAlgo]The Market Structure CHoCH/BOS (Fractal) indicator is an experimental take on classical market structure, whereas fractal patterns are used for their construction instead of swing points.
Compared to utilizing swing points for highlighting market structure like our Smart Money Concepts indicator , fractal-based market structure can appear as more adaptive, however, it can also be more restrictive when it comes to returning swing points which can cause the indicator to miss reversals in some cases.
If enabled from within the settings, users can see support and resistance levels returned from the detected market structure with breakouts highlighted on the chart. Alongside this feature, an additional dashboard showing the structure to fractal structure percentage is also provided.
🔶 SETTINGS
Length: Length of the fractal patterns to detect.
🔹 Style
Bullish Structures: Show bullish structures.
Bearish Structures: Show bullish structures.
Support: Show support levels.
Resistance: Show resistance levels.
🔹 Dashboard
Show Dashboard: Show structure to fractal percentage dashboard on the chart.
Location: Location of the dashboard on the chart.
Size: Dashboard size.
🔶 USAGE
Market structure is commonly used to determine trend direction by using price positions relative to prior swing points. Using fractal patterns to determine market structure can allow users to obtain shorter, more frequent structure labels.
Market structure is commonly classified as follows:
Change of Character (CHoCH), also referred to as Market Structure Shift (MSS)
Break of Structure (BOS), also referred to as Market Structure Break (MSB)
Change of Characters indicate a shift in the market trend, confirming trend reversals. Break of Structures on the other hand occur once a trend is already determined, confirming new higher highs/lower lows.
Using higher length values allow users to detect longer-term fractals, thus highlighting longer-term market structures. The image above detects fractal patterns made of 7 candles, even if the increment is only of 2 bars this significantly reduces the amount of detected market structure labels.
The result obtained by utilizing fractals and higher settings can be a more dynamic view of market structure, however, as seen in the image above this can introduce very significant delay compared to utilizing pure swing points.
🔹 Support/Resistance
The indicator also returns support/resistance levels constructed from the market structure, these levels are obtained similarly to order blocks, finding the minimum on the interval of a bullish market structure and the maximum of a bearish market structure.
Price reaching a support/resistance level can be expected to bounce from it. Once a level is broken, the support/resistance level will no longer extend, and a circle will be displayed highlighting the break.
While utilizing this script for fractal-based market structure, these levels can be useful to ensure all swing points are still considered by the user with the possibility of the indicator missing reversals due to its calculation not being based on swing points themselves.
🔹 Dashboard
The dashboard reports the structure to fractal percentage, that is the amount of bullish/bearish market structures relative to the total amount of detected bullish/bearish fractal patterns.
This allows us to see how often a detected fractal pattern is used to display a market structure.
🔶 DETAILS
🔹 Fractals
In the context of technical analysis, Fractals refer to specific patterns that exhibit self-similarity at different scales or timeframes.
The most commonly known fractal pattern consists of a consecutive sequence of candles (more commonly 5), with the central candle being the lowest (in case of a bullish fractal) or highest (in case of a bearish fractal).
A bullish fractal has candles on the right side of the central candle with increasing lows, while candles on the left side have decreasing lows.
A bearish fractal has candles on the right side of the central candle with decreasing highs, while candles on the left side have increasing highs.
🔶 RELATED SCRIPTS
🔹 Smart Money Concepts
🔹 Market Structure Trailing Stop
🔹 ICT Concepts
Period OpenA very simple indicator that displays the Open of the specified Timeframe
How to use this indicator?
1. Directional Bias
Bullish => Closing Price > Period Open
Bearish => Closing Price < Period Open
2. Support / Resistance
Each Period Open can be used as Support or Resistance
3. Take Profit Targets
Each Period Open can be used as targets for taking profit
Fibonacci Breakout Target LevelsFibonacci Extension
Fibonacci Extension is a powerful technical analysis tool that traders use to predict where the market might find support and resistance. It is based on the Fibonacci sequence and uses levels that are found by extending the 23.6%, 38.2%, 50%, 61.8%, and 100% Fibonacci ratios from a swing high or low. These levels can be used to find possible areas of support and resistance, and traders often use them to figure out when to get into or get out of a trade.
What does this indicator do?
This indicator gets five levels of the Fibonacci Extension and uses it for both the low and the high. The default lookback period is 10 days, and it checks for the highest and lowest price in that period. Then it calculates the extension levels and plots them, and it also adds a line that shows you the current breakout target levels.
How to use?
The primary use intended for this indicator is to be used to determine possible breakout target levels. Let's say you are trading a range and a breakout happens. You can use this indicator to determine possible take-profit zones and possible support and resistance zones.
Features:
Change the lookback period for the Fibonacci Extension levels.
Disable the Fibonacci Bands if you just want to see the FIB levels.
You can also change the 5 levels and add different Fibonacci numbers.
In this image, you can see how you can use this indicator to determine take-profit levels. The Fibonacci Extensions will determine potential support and resistance levels, which could be good places to exit your long or short positions.
Trading ChannelTrading Channel aims to be a canvas on which to develop any strategy that the user feels comfortable with.
The greatest utility of the script lies in the fact that it plots a channel over the price action, as a support and resistance pivot, within which the price action develops.
It is a script of maximum simplicity in concept and development, but at the same time presents robust support to the price action and a quick visual aid complementary to any indicators that the user works with, feels comfortable with, and uses as a basis for their strategies.
The script includes the following features (most of them disabled by default, available for potential use without the need to add additional indicators):
Fast SMA
Medium SMA
Slow SMA (disabled)
Fast EMA (disabled)
Medium EMA (disabled)
Slow EMA (disabled)
Pivot
Pivot SMA
P Multiplier
Set of resistance and support pivots according to the studies of John L. Person (R3, R2, R1, S1, S2, S3 and midpoints) (disabled by default)
Channel for the current time period in use
Channels for extended time periods (disabled by default)
Various trend, momentum, and overbought/oversold indicating labels (note that the calculations for their representation are based on SMA's even though EMA's are visualized).
SMA's/EMA's
Both are available as both are used as basic indicators for different types of strategies. The default selection of SMA's in this case is based on the fact that the script development is largely based on the studies shared by John L. Person in the area of pivots and by Bill Williams in the area of fractals. Note also that for that same reason the various trend, momentum, and overbought/oversold indicating labels are calculated based on them.
Set of resistance and support pivots
They are included as a consultation tool especially for the higher time periods. They can be used to mark the most interesting supports/resistances and not lose sight of them while operating in lower time periods. Marking monthly, weekly, and daily pivots can be very useful. Additionally, marking S1 and R2 for bullish trends, S1 and R1 for ranges, and S2 and R1 for bearish trends can provide an even more precise framework to work on.
P Multiplier
It is set by default at 4, and is the basis for being able to consider during the use of a specific time frame, the price action with respect to higher time frames. It is the multiplier used for the generation of channels for extended time periods.
Channel for the current time period in use
It is a channel formed by the maximum and minimum closing of the last 21 periods. This value is modifiable and its adjustment depends on the asset under study. 24/7 markets show good results with this adjustment (in the case of BTC really good).
This channel represents a pivot in the form of a yellow middle line, with its support and resistance extremes on the upper green and lower red lines. The same green and red lines, referenced this time to the maximum, are added and serve as possible stop-loss marks.
Channels for extended time periods
Enabling the maximum and minimum channels for extended periods can provide a better idea of the price situation (it is recommended to disable the channel in use and enable the upper one for consultation, it provides a better vision).
Identifying labels:
Following a summary explanation for possible long entries, the same but opposite should be considered for possible short entries:
Small green arrow under candle: indicates possible upward trend (pivot above pivot SMA)
Large green arrow under candle: indicates upward trend (pivot above pivot SMA and above fast SMA)
Green triangle over candle: indicates channel breakout, possible upward momentum (represented as a fractal as its concept is the same)
Green/red arrows at the bottom of the chart: intended to confirm the validity of a signal (should doubt green indications with red lower arrow and vice versa)
Green/red dots at the bottom of the chart: red represents areas of strong resistance and green signals of strong support (with red dots, proceed with caution despite green signals, and vice versa)
Comments
It is emphasized that the basic and most useful functionality of this script is to provide a reliable base on which to develop any strategy, as a framework for working.
If the identifying labels are used, it should be taken into account that the earliest will always be the most reliable and valuable, but their confirmation will always depend on the user's strategy.
Its use in conjunction with the "Pivot Position for Trading Channel" indicator can serve as a base for the development of different strategies, by providing indication of the relative position of the price within the channel.
This script is just a consultation tool with didactic goals, it should not be used as an investment recommendation and the information provided should not be relied upon as such.
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Trading Channel pretende ser un lienzo sobre el que desarrollar cualquiera que sea la estrategia con la que el usuario se sienta más cómodo.
La mayor utilidad del script radica en que se traza sobre la acción del precio un canal, a modo de pivotes de soporte y resistencia, dentro del cual se desarrolla la acción del precio.
Se trata de un script de máxima sencillez en concepto y desarrollo, pero que a la vez presenta un soporte robusto a la acción del precio y una ayuda rápida visual complementaria a cualquieras que sean los indicadores con los que el usuario trabaje, se sienta más cómodo y utilice como base de sus estrategias.
El script incluye las siguientes funcionalidades (la mayoría desactivadas por defecto, disponibles para su potencial uso sin necesidad de añadir indicadores adicionales):
- SMA rápida
- SMA media
- SMA lenta (desactivada)
- EMA rápida (desactivada)
- EMA media (desactivada)
- EMA lenta (desactivada)
- Pivote
- SMA de pivote
- Multiplicador de P
- Conjunto de pivotes resistencia y soporte de acuerdo a los estudios de John L. Person (R3, R2, R1, S1, S2, S3 y puntos medios) (desactivados por defecto)
- Canal para el periodo temporal en uso
- Canales para periodos temporales extendidos (desactivados por defecto)
- Diversas etiquetas indicativas de cambios de tendencia, de impulso y de sobrecompra y sobreventa (nótese que los cálculos para su representación están basados en SMA's aunque se visualicen EMA's).
SMA's/EMA's
Ambas disponibles pues tanto unas como otras son utilizadas como indicadores básicos para diferentes tipos de estrategias. La selección de SMA's por defecto en este caso se basa en que las bases para desarrollo del script son en gran medida los estudios compartidos por John L. Person en el área de pivotes y de Bill Williams en el área de los fractales. Nótese también que por esa misma razón las diversas etiquetas indicativas de cambios de tendencia, impulso y sobrecompra/sobreventa se calculan en base a ellas.
Conjunto de pivotes resistencia y soporte
Se incluyen como herramienta de consulta sobre todo para los periodos temporales más altos. Pueden utilizarse para marcar los soportes/resistencias de más interés y no perderlos de vista mientras se opera en periodos de tiempo más bajos. De acuerdo a los estudios de John L. Person, marcarse los pivotes mensuales, semanales y diarios puede resultar de mucha utilidad. Adicionalmente, marcar S1 y R2 para tendencias alcistas, S1 y R1 para rangos, y S2 y R1 para tendencias bajistas puede proporcionar un marco aún más preciso sobre el que trabajar.
Multiplicador de p
Está fijado por defecto en 4, y es la base para poder considerar durante el uso de una franja temporal concreta, la acción del precio respecto a franjas temporales superiores. Es el multiplicador utilizado para la generación de los canales para periodos temporales extendidos.
Canal para el periodo temporal en uso
Se trata de un canal conformado por los cierres máximos y mínimos de los últimos 21 periodos. Este valor es modificable y su ajuste depende del activo en estudio. Mercados 24/7 muestran buenos resultados con este ajuste (en el caso de BTC realmente buenos).
Este canal representa en cierta manera un pivote en forma de línea intermedia amarilla, con sus extremos de soporte y resistencia en las líneas verdes superior y roja inferior. Se añaden las mismas líneas verdes y rojas, referenciadas esta vez a los máximos, que sirven como posibles marcas de stop-loss.
Canales para periodos temporales extendidos
Habilitar los máximos y mínimos de canales de periodos extendidos puede proporcionar una mejor idea de la situación del precio (se recomienda deshabilitar el canal en uso y habilitar el superior para consulta, proporciona una mejor visión).
Etiquetas identificativas:
A continuación explicación resumida para posibles entradas en largo, lo mismo pero de modo opuesto debería considerarse para posibles entradas en corto:
Flecha verde pequeña bajo vela: indica inicio de tendencia en alza (pivote por encima de SMA de pivote y ambos por encima de SMA rápida)
Flecha verde grande bajo vela: indica tendencia en alza (pivote por encima de SMA de pivote y ambos por encima de SMA rápida y media)
Triángulo verde sobre vela: indica rotura de canal, posible impulso al alza (representado a modo de fractal pues su concepto es el mismo)
Flechas verdes/rojas a pie de gráfico: pretenden confirmar la validez de una señal (debería dudarse de las indicaciones verdes con flecha inferior roja y viceversa)
Puntos verdes/rojos a pie de gráfico: los rojos representan áreas de fuerte resistencia y los verdes de fuerte soporte (con puntos rojos, proceder con cautela pese a señales verdes, y viceversa)
Comentarios
Se insiste en que la funcionalidad básica y de mayor utilidad de este script es proporcionar una base confiable sobre la que desarrollar cualquier estrategia, a modo de marco de trabajo.
Si se hace uso de las etiquetas identificativas, debe tenerse en cuenta que las más prematuras siempre serán las más confiables y valiosas, pero que su confirmación siempre dependerá de la estrategia por parte del usuario.
Su uso en conjunción al indicador "Pivot Position for Trading Channel" puede servir de base para el desarrollo de diferentes estrategias, al proporcionar indicación de la posición relativa del precio dentro del canal.
Este script es solo una herramienta de consulta con objetivos didácticos, no debe ser utilizado como recomendación de inversión y no se debe confiar en ella como tal.
Trading Channel for BTCThe goal is to visualize, through basic but robust information, a channel that frames the price action, whose referenced limits and lines are indicative of potential entries and exits.
It is a simple but enormously reliable base for the development of different strategies.
The parameters for the script have been optimized for BTC. It shows good results in all time frames.
Red lines: support of closures and lows (indicative of potential points of purchase).
Green lines: resistance of closures and highs (indicative of potential points of sale).
Orange-gray line: proposed stop loss for long positions, at a ratio of 2:1.
Yellow line: midpoint of channel (as a reference for trend change detection or even possible take-profits).
White line: 8-period simple moving average (SMA).
Gray line: 21-period SMA.
Pink line: standard pivot.
Purple line: 3-period simple moving average pivot.
Blue lines (deactivated by default): standard range of support and resistance pivots (according to the studies of John L. Person).
A channel of support and resistance indicative of potential entry points is shown, both for short and long positions. The channel is based on the closures and the lowest and highest lows and highs of the last 21 periods, shifted one period.
In addition to showing the channel of support and resistance, the script also includes the display of two SMAs (simple moving averages) of 8 and 21 periods, as well as standard and 3-period simple moving average pivots, which can be used as support for entry decisions.
The script allows the user to develop more or less aggressive strategies, conditioning the entries to the price's contact, closure, or distance from the different proposed support and resistance lines, and confirming the same entries through possible SMA and/or pivot crosses, and exits in the same way.
The standard range of support and resistance lines, deactivated by default, is a consultation tool for the higher time frames (month, week, day) for the location of strong supports and resistances that may recommend or, on the contrary, discourage the execution of entries.
The strong point of the script is the visualization of a reliable channel within which the price action develops with basic and repetitive behavior: when the price touches one of the limits, it then goes to the opposite one. Based on that foundation, with the help of the indicators that are most familiar and/or reliable for the user, an infinity of strategies suitable for all types of traders can be developed.
This script is just a consultation tool with didactic goals, it should not be used as an investment recommendation and the information provided should not be relied upon as such.
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Se pretende visualizar por medio de información básica pero robusta, un canal que enmarca la acción del precio, cuyos límites y líneas referenciadas son indicativos de potenciales entradas y salidas.
Resulta una base simple pero enormemente confiable para el desarrollo de diferentes estrategias.
Los parámetros para el script han sido optimizados para BTC. Muestra buenos resultados en todos los marcos temporales.
Líneas rojas: soportes de cierres y mínimos (indicativas de puntos potenciales de compra).
Líneas verdes: resistencias de cierres y mínimos (indicativas de puntos potenciales de venta).
Línea gris anaranjada: propuesta de stop loss para posiciones en largo, a razón de 2:1.
Línea amarilla: punto medio de canal (como referencia para detección de cambios de tendencia o incluso posibles take-profit).
Línea blanca: SMA (promedio móvil simple) de 8 periodos.
Línea gris: SMA de 21 periodos.
Línea rosa: pivote estándar.
Línea morada: pivote de media simple de 3 periodos.
Líneas azules (desactivadas por defecto): abanico de pivotes de soportes y resistencias estándar (según los estudios de John L. Person).
Se muestra un canal de soportes y resistencias indicativas de puntos potenciales de entradas tanto en corto como en largo. El canal se basa en los cierres y los mínimos y máximos más bajos y más altos de los últimos 21 periodos, desplazados un periodo.
Además de mostrar el canal de soportes y resistencias, el script incluye también la visualización de dos SMA's (promedios móviles simples) de 8 y 21 periodos, así como pivotes estándar y de media simple de 3 periodos, que se pueden utilizar como apoyo para las decisiones de entrada.
El script permite al usuario desarrollar diferentes estrategias más o menos agresivas, condicionando las entradas al contacto, al cierre o al alejamiento del precio respecto a las diferentes líneas de soporte y resistencia propuestas, pudiendo confirmar las mismas entradas por posibles cruces de SMA's y/o pivotes, y las salidas de igual manera.
El abanico de soportes y resistencias estándar, desactivadas por defecto, son herramienta de consulta para los marcos temporales más altos (mes, semana, día) para localización de resistencias y soportes fuertes, que pudieran recomendar o, por el contrario, desaconsejar la ejecución de entradas.
El punto fuerte del script es la visualización de un canal confiable dentro del que se desarrolla la acción del precio con un comportamiento básico y repetitivo: al tocar el precio uno de los límites, se dirige después al opuesto. Sobre esa base, con la ayuda de los indicadores que resulten más conocidos y/o confiables para el usuario, se pueden desarrollar infinidad de estrategias adecuadas para todos los tipos de trader.
Este script es solo una herramienta de consulta con objetivos didácticos, no debe ser utilizado como recomendación de inversión y no se debe confiar en ella como tal.
Sessions [LuxAlgo]This indicator shows when user set sessions are active and returns various tools + metrics using the closing price within active sessions as an input. Users have the option to change up to 4 session times.
The indicator will increasingly lack accuracy when the chart timeframe is higher than 1 hour.
Settings
Sessions
Enable Session: Allows to enable or disable all associated elements with a specific user set session.
Session Time: Opening and closing times of the user set session in the hh:mm format.
Range: Highlights the associated session range on the chart.
Trendline: Returns the associated session trendline on the chart.
Mean: Returns the associated session mean average on the chart.
VWAP: Returns the associated session volume weighted average price on the chart.
Ranges Settings
Range Area Transparency: Transparency of the area highlighting sessions ranges.
Range Outline: Highlights the borders of the session range area.
Range Label: Shows the session label at the mid-point of the session interval.
Dashboard
Show Dashboard: Enables sessions dashboard on the chart.
Advanced Dashboard: Returns more information regarding user set sessions on the dashboard.
Dividers
Show Session Divider: Highlights active sessions using intervals on the bottom of the chart (this can lead to less responsive charts)
Show Daily Divider: Highlights days on the chart.
Usage
This tool is versatile and allows the user to perform a wide variety of tasks all focusing on highlighting and analyzing price movements within a specific user set session in a periodic fashion.
Significant forex trading sessions are used by default, but the users are free to choose the opening and closing time of their choices.
Using ranges can indicate which sessions returned the most volatile price movements.
Trendlines can be useful to estimate the underlying trend of a specific session, but they can also offer a quick way to see which session started a trend reversal.
The session Mean highlights the equilibrium level within a session, extrapolating these levels can provide potential support and resistances levels of interest.
Finally, users can use the sessions VWAP's for real time applications, using them as trailing supports and resistances.
Using The Advanced Dashboard
The advanced dashboard returns useful information regarding the user set sessions. Each dashboard elements are described below:
Status: Highlights whether the user set session is active (open) of inactive (closed).
Trend: Shows correlation coefficient between the session prices and a linear sequence of values. Values above 0 indicates an up-trending session, while values under 0 indicates a down-trending session. Values closer to (1, -1) indicates a more trending session.
Volume: Shows accumulated volume within the session
σ (Standard Deviation): Shows standard deviation of the session, while this value is not bounded it can be useful to compare it with the other ones to see which session was the most volatile.
Note that when a session becomes inactive the value on the dashboard will hold until the specific session becomes active again.
CAT Month Opening RangeA trading range which is formed during the first three trading day of any month sets an important "Month Opening Range".
The lowest price made during the first three trading days can be considered the Monthly Support level (see the green line drawn by the indicator).
The highest price made during the first three trading days can be considered the Monthly Resistance level (see the red line drawn by the indicator).
In an Up trending market price tends to break over the upper edge of the Month Opening Range and keep moving higher at the very least until the middle of that month.
In an Up trending market once price broke out of the Month Opening Range, the Monthly Resistance level tends to work as a support.
In a Down trending market price tends to break under the lower edge of the Month Opening Range and keep moving higher at the very least until the middle of that month.
In a Down trending market once price broke under the Month Opening Range, the Monthly Support level tends to work as a resistance
There are may ways to use that instrument:
(1) Trend Confirmation.
The first three days of a month tends to bring volatile trading. The market sets boundaries for the following four trading weeks.
Once the range has been set, swing traders may wait for the market to break out of the range and consider that direction of the prevailing trend direction.
(2) Short "Failed Breakout" setup
Quite often price breaks out of the Month Opening Range on the fourth or fifth trading day of a month but then drops back into the range.
That failed breakout quite often is followed by decline back down to the Month Support level (the lower edge of the Month Opening Range).
(3) Long "Failed Breakdown" setup
Quite often price breaks down under the Month Support on the fourth or fifth trading day of a month but then pops back up over the Monthly Support.
That failed breakdown quite often is followed by a rally targeting to retest the Monthly Resistance (the red line).
The indicator generates signals, trade set-ups and alerts that are for educational and hypothetical purposes only and shall not be considered trade recommendations.
Any signals or trading setups drawn by the indicator is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All users of the indicator must determine for themselves what specific investments to make or not make and are urged to consult with their own independent financial advisors with respect to any investment decision.
Opening Range, Initial Balance, Opening PriceThis script draws Opening Range, Initial Balance and Opening Price with options to show mid levels.
By default, lines changes color depending on whether closing price is above or below the lines. Red if price is below, green if price is above.
Colors and line styles are all configurable.
Options to change label positions.
Some definitions:
Opening Range - The opening range is high and low for a given period after the market opens. This period is generally the first 30 or 60 minutes of trading
Initial Balance - WRT to TPO profile chart, the Initial Balance is the price range resulting from the market’s trade during the first two 30 minute periods of the regular trading hours session.
Why is this useful?
The first hour of the trading day is the most active and dynamic period. The price range defined by this period of trading creates some key support / resistance levels for the rest of the day. Example below:
Attrition Scalper v2.0Green/Red Arrowed Buy/Sell signals are just simple buy sell signals based on SuperTrend, VWAP, Bollinger, Linear Regression
Purple Arrowed Buy/Sell Signals happen when the price/candle cross over or under the yellow outer lines (4.236 fib lines) It's extremely rare and hard for price to stay above these lines therefore we can usually and comfortably buy/sell it, a key information here though when price pumps or dumps super fast and hard to the point of crossing these borders, the trend might also be extremely strong and continous so even if the price temporarily goes back inside the borders as the lines expand over time price can continue riding or crossing these lines back again and continue the uptrend/downtrend, therefore crossing these outer borders doesn't necessarilly and always mean a reversal is due.
When analyzing the instrument you're trading the important factors for support/resistance areas are usually the outer lines like i said previously it's super hard for price to be outside these and will almost always get back inside quickly. The Middle thicker green/red line which is Variable Index Dynamic Average should also be a nice pivot line for major support and resistance . All the other lines are also important dynamic support/resistance lines.
Their Importance Order
1- Outer Yellow Line (4.236 Fibs)
2- Thicker Middle Green/Red Line (VIDYA)
3- Thinner Upper/Lower Green/Red Line (VIDYA +3, VIDYA -3)
4- The Rest Of The Lines (Fib Lines)
You can use this indicator in any market condition in any market to determine key support/resistance levels, use it for mean reversion through price expanding to outside of the most outer line therefore being overbought/oversold basically using the purple buy/sell signals or only follow the normal buy/sell signals or use it in confluence with each other. You can also use this indicator in confluence with your own manual technical analysis or other indicators/strategies you are already using and are comfortable with.
A good part is the support/resistance lines from timeframe to timeframe pictures the whole situation quite well, you can use lower timeframe to find your entry/exit positions and higher timeframe to find your key support/resistance points, they all should be somewhat in confluence from timeframe to timeframe anyways. My recommendation would be to look at 1HR, 4HR and 1D charts for swing trading and 5-15 Min for quick scalping/day trading
You should still probably at least take a look to higher timeframes so that you don't get burned when you realize there is a huge resistance line at price XXXXX on the 4 hour chart but you're expecting it to go above it on the 5 minute chart, it can go above it temporarily but we analyze everything on a closing basis so it most likely won't close above it. Again don't take a position or FOMO when price breaks a support/resistance line, we're looking for a CLOSE above/below them and a retest to see if S/R flip happened would even be better.
Sometimes the most outer line won't be the 4.236 (Yellow) lines as when it gets quite volatile the Thinner Upper/Lower Green/Red Lines (VIDYA +3, VIDYA-3) might cross them to be the most outer line, in this case i have observed that the trend is extremely strong this time price almost always doesn't go above or below the VIDYA line but can stay outside of the Yellow 4.236 Fib line for an extended amount of time (price will still get back inside the channel relatively quickly, just not as fast as the normal condition)
With Proper Risk Management and Discipline this indicator can be of great use to you as it's surprisingly successful especially at mean reversion and pointing out the support/resistance lines, they are so much more successful than your average MA/EMA lines.
Trend SuggestionsThis brings together a number of variables to produce trend predictions that could be utilized as decision-making tools.
Uses the aforementioned price and volume derivatives
- A moving average and three weighted moving averages (WMA1, WMA2, WMA3)
- Super Trend Line (ST)
- Opening Range Breakout on Five Minutes, Resistance Bands Pocket pivots, support, and price volume
he Direction is determined by the High and Low Bands of WMAs and the Supertrend Line, which are used to determine the Upper and Lower Lines around the Price. When the price passes below the lower boundary of the band, a downtrend is said to have begun.
Similarly, for an uptrend, this continues until the price passes over the upper edge of the band. Teal for an uptrend and fuchsia for a downturn area shared by the band to identify the trend.
The first five minutes of the breakout lines have a tiny buffer augmentation of 11% applied to them.
Based on what has been observed, support and resistance zones have been somewhat changed from the figures that are often utilized (might work other markets as well)
The markings that may be seen are as follows:
- Blue Triangle indicates a pocket pivot with an upward bias;
- Maroon Triangle indicates a pocket pivot with a downward bias;
- Teal colored Diamonds indicate price upthrusts and potential trend confirmation locations, depending on success or failure.
- Similar backdrop color changes that look as vertical shading are also used to identify them.
- Fuchsia-colored diamonds indicate price declines and a potential trend, depending on whether it persists or fails.
- Dark green and maroon square boxes indicate potential price reversals in the support and resistance bands, respectively.
It goes without saying that this work is derived from numerous other open-source community initiatives.
Feel free to adjust anything you'd like, and we appreciate any feedback.
Psychological levels (Bank levels) PsychoLevels v2 - TartigradiaPsychological levels (Bank levels) plots "round" price levels above and below current price, by truncating after the nth leftmost digits, based on neuroscience research of how humans intuitively calculate in logarithms.
Psychological levels, also called bank levels, are "round" price numbers around which price often experience resistance or support, because traders and investors tend to set orders around these round numbers.
Calculation here is fully automatic and dynamic, contrary to other similar scripts, this one uses a mathematical calculation that extracts the 1, 2 or 3 leftmost digits and calculate the previous and next level by incrementing/decrementing these digits. This means it works for any symbol under any price range.
This approach is based on neuroscience research, which found that human brains intuitively approximate numbers on a logarithmic scale, adults and children alike, and similarly to macaques, for more info see Numerical Cognition , Weber-Fechner Law , Zipf law.
For example, if price is at 0.0421, the next major price level is 0.05 and medium one is 0.043. For another asset currently priced at 19354, the next and previous major price levels are 20000 and 10000 respectively, and the next/previous medium levels are 20000 and 19000, and the next/previous weak levels are 19400 and 19300.
Usage:
* By default, strong upper level is in green, strong lower level is in red, medium upper level is in blue, medium lower level is in yellow, and weak levels aren't displayed but can be. Half levels are also displayed, in a darker color. Strong levels are increments of the first leftmost digit (eg, 10000 to 20000), medium levels are increments of the second leftmost digit (eg, 19000 to 20000), and weak levels of the third leftmost digit (eg, 19100 to 19200). Instead of plotting all the psychological levels all at once as a grid, which makes the chart unintelligible, here the levels adapt dynamically around the current price, so that they show the upper/lower levels relatively to the current price.
* A simple moving average is implemented, so that "half-levels" are also displayed when relevant (eg, medium level can also display 19500 instead of only 19000 or 20000). This can be disabled by setting smoothing to 1.
* By default, the script runs on the daily timeframe, whatever the current chart's timeframe is. This is to reduce the variability in levels, to make it less noisy than intraday price movement, but this can be changed in the settings.
* The step can be adjusted to increase the gap between levels, eg, if you want to display one every 2 levels then input step = 2 (eg, 22000, 24000, 26000, etc), or if you want to display quarter levels, input 0.25 (eg, 22000, 22250, 22500, etc). The default values should fit most use cases and cover most psychological levels.
I made this script mainly to train with PineScript, but I found it surprisingly accurate to define levels that are respected by price movements. So I guess it can be useful for new traders and experienced traders alike, as it's easy to forget that psychological levels can often be as strong if not stronger than technical levels. It can also be used to quickly screen other minor assets for trading opportunities. For example, a hybrid strategy would be to manually define levels on BTCUSD but using this script to automatically define levels in crypto altcoins and quickly screen them for a trade opportunity that can be greater than with BTCUSD but with the same trend.
Changes compared to v1:
* Deduplicated redundant calculations and hence faster script.
* Added half-step levels, which allows to more easily see breakouts (because the levels are still on-screen).
* All steps are now configuration on the GUI.
* Revamped color scheme.
* And major reasons to post as a separate v2 script rather than updating: because we can't update the original description nor screenshot. I have now read more about the House Rules and saw other scriptmakers, so I am trying to write better descriptions like wizards do, by explaining not only how the script works but what the underlying financial concept is to a neophyte audience.
Price Action in action
What?
Price Action in Action is an indicator to help Price Action learners and practitioners to get everything related for Price Action in one place.
Price Action is:
Price + Volume = Action
In this indicator, we have the following features available:
Support/Resistance
Using the RSI with different periods in a multiple of 7 (7, 14, 21, 28), we first determine the overbought (above 70, customizable) and oversold (below 30, customizable) regions. Then we pick up the highest point and lowest point in the RSI values in the overbought and oversold regions, respectively. These are the point, historically supply/demand emerged for surety to push down/up the RSI indicator and the corresponding price. So, these are the most accurate way, we believe, to draw support/resistance (or demand/supply) in the chart. By default, the Support is green color and Resistance is red color. To give a visual representation, we differentiate the different shades of green and red. For example, for Level-1 (i.e. 7 by default) we use the darkest shade (0 transparency) and Level-4 (i.e. 28 by default) we use lighter shade (60 transparency). Note please: you can customize the color of support and resistance lines (say if you want resistance as green and support as red). The respective shades (transparency) will be automatically adjusted accordingly. But those shade (transparency) levels are not customizable, they are fixed (please bear with it for version-1 at least).
Strength of Support/Resistance
In the chart above/below the Resistance / Support lines you can see the tiny labels with some numbers like 1, 2.
We found out how many times a particular support/resistance is appearing across multiple RSI periods. E.g. if price P1 appears 2 times among 4 different RSI periods, the number will be 2 for that calculation, and so on.
There can be multiple presence of these numbers in a support/resistance line (i.e. multiple tiny labels). Something like: 1, 1, 2 (into different candles). This means the same support/resistance is tested so many times in different occasion (means there is a RSI max/min coincides in this level over multiple occasions) at different candles.
This will help you to intuitionally gauge the “strength” of a support/resistance line.
The more the marrier, unworthy to mention.
Candle Stick Patterns
Well: we don’t need to tell anything about the Candlestick. All of you know it better than us. And it’s a time proven, zero-lag mechanism to judge the Price-Action is unfolding in the market. We do not know if there is anything better possible than this time tested patterns to judge the prevailing sentiments of market.
Price-Action does not complete without finding out the Candlestick Patterns correctly.
And in this indicator your will get all of these: Single Candle such as Doji (default off), Marubozu, Spinner, hammers, inverted-hammer etc. ; 2 candles like Tweezer, Inside Candle, Engulfing; 3 candles like morning star/evening star.
In the multi candle patterns (2/3 candles), we are grouping the candles with a dotted rectangle such that it is clear which 2/3 candles are part of the pattern. E.g. Morning Star: 3 candles are grouped in a dotted rectangle and the Morning Star label will come to the latest candle (3rd most – as the pattern is detected reliably only on the completion of the 3rd final candle).
Of course, any program can not eliminate your trained eyes and brain to capture the patterns. But we have provided sufficient knobs to adjust various parameters to tweak the candle-pattern detection. Such as Strict Inside Candle(Harami) Boolean knob where the whole current candle including wicks will be inside the body part of the previous big candle. For non-strict mode, the current candle just inside the previous candle, possibly by wicks.
To make it better usable, for every such knobs (which are not obvious) we have added user-friendly tooltip (just mouse hover the question mark (?) besides the control/switch). There are plenty of it.
Volume
Here we have a rudimentary (yet effective) way to judge the volumes.
We find out the Volume Weighted Moving Average (VMWA) of the 20-period (default, but customizable) and the latest volume. If the latest volume is more than the 20 period vwma, we just add a grey diamond on the top of the candle to denote it’s attracting volumes. Of course, we provide a Weight coefficient (default is set to 1). So if the current bar’s volume on bar’s completion is more than the 20 period volume vmwa times the weigh-cofficient, we mark it with a tiny grey diamond.
Points to be noted:
In all places we mark the indication only on the completion of the bar (technically speaking we have checks, as far as possible, with barstate.isconfirmed). However, if you wish, you can turn it off for Candlestick (as some experts may want to check candlestick on the real time, even before the closing of bars).
In case if you see the chart looks cluttered (because of many information, specially in smaller timeframes like 5 min), there are controls given in the settings to toggle each and every features.
By default, we turn off Doji candles (all 3 types of Doji’s – normal, Gravestone & Dragonfly) as they are mainly indecision. However, you can toggle it to turn it on.
It does not give you any Buy/Sell call. The interpretation it does not have.
Why?
What’s unique in it?
As we already mentioned our intention is to include Price (in forms of Support / Resistance), Volume and Action (sentiments in terms of Candlestick patterns) into a single place. And so far, to the best of our knowledge, we could not come across a single indicator provides all of these.
There were works available to determine the RSI based support / resistance zones. Those are great piece works at that time (lets say 3 years back when PineScript was in earlier versions). To the best of our knowledge those does not cover up finding out the lowest / highest point of RSI and the corresponding price to get the simplistic and distinct support/resistance lines.
We have the intuitive support/resistance strength included which we could not found out in current set of available indicators.
To the best of our knowledge, there seems no indicator can detect 3-candle patterns which are extremely popular to detect trend reversals (such as Morning Star or Evening Star). Moreover for the multi-candle patterns we are grouping the candles part of the pattens (2-candles or 3-candles) using a dotted rectangle such that it’s visually clearly (and a well educative material for Price-Action learners also).
Mentions:
There are many works which inspire us along the way. Honestly: we sometimes forgot which all indicators we experimented with. We are sincerely apologetic in case we forgot to mention. A few note-worthy:
There is an indicator from user “repo32” named as “Candlestick Patterns Identified (updated 3/11/15)”. (We could not be able to contact “repo32”). We are inspired from his work that it’s feasible to detect Candlestick patterns.
There is an awesome work done by “RSI Based Automatic Demand and Supply” by user “shtcoinr”. The idea of consulting multiple RSI levels to find out the demand/supply zone we inspired from him. (We did contact “shtcoinr” and got his kind permission to use the concept.)
We are greatly thankful to these abovementioned wizards for their pioneering a-prior work in this front.
And of course, this TradingView platform to provide this abstraction, facilitates and felicitates collaborative contributions.
Ultimately, what’s for you?
That’s the main question. What’s for you?
Price-action comprises of following 3 tasks (at least):
Draw support/resistance lines in the chart.
Once price reaches at the support/resistance line, you fervently look out the candles’ formation to mentally map to the candle patterns. Your aim is divine: You want to judge if the price-action will continue or take a rejection/reversal.
Then you double-confirm with the volume (in a non-overlaid chart below).
Finally take a trade.
For a price-action newbie or seasoned, expert practitioner, you must be doing all the above tasks regularly and manually, in a mechanical, mundane way. There come the humanly subjectivity & the inevitable emotions . This indicator, being a piece of program/code in PineScript latest version v5 , eliminates (or at least, reduces to a great extend) that subjectivity & emotions out of the way of decision making . Thus resulting better yield.
Of course, you can argue that you draw slanted trend lines also. We recommend an already existing indicator by user LuxAlgo named as “Trendlines with Breaks ”, if you wish so.
Disclaimer:
This piece of software does not come up with any warrantee or any rights of not changing it over the future course of time.
We are not responsible for any trading/investment decision you are taking out of the outcome of this indicator.
Happy trading.
Stock Tech Bot One ViewTechnical indicators are not limited. Hence, here is another indicator with the combination of OBV, RSI, and MACD along with support, and resistance that follows the price while honoring the moving average of 200, 90 & 50.
The default lookback period of this indicator is 21 though it is changeable as per the user's desire.
The highest high and lowest low for the last 21 days lookback period proven to be the perfect Support & Resistance as the price of particular stock values are decided by market psychology. The support and resistance lines are very important to understand the market psychology which is very well proven with price action patterns and the lines are drawn based on,
Lower Extreme = 0.1 (Changeable)
Maximum Range = 21 days highest high - 21 days lowest low.
Support Line = 21 days lowest low + (Maximum Range * Lower Extreme)
Resistance Line = 21 days highest high - (Maximum Range * Lower Extreme)
RSI - Relative strength indicator is very famous to find the market momentum within the range of 0 - 100. Though the lookback period is changeable, the 14 days lookback period is the perfect match as the momentum of market movement for the last 3 weeks will always assist to identify the market regime. Here the momentum is just to highlight the indication (green up arrow under the candle for long and red down arrow above the candle for short) of market movement though it is not very important to consider if the price of the stock respect the support & resistance lines along with volume indicator (* = violet color).
OBV - Momentum:
The on-balance volume is always going indicator on any kind of tickers, which helps to identify the buying interest. Now, applying momentum on OBV with the positive movement for at least two consecutive days gives perfect confirmation for entry. A combination of the price along with this momentum(OBV) in the chart will help us to know the whipsaw in the price.
The Symbol "*" on top of each bar shows the market interest in that particular stock. If your ticker is fundamentally strong then you can see this "*" even when the market falls.
MACD:
One of the favorites and simple indicators widely used, where the thump of the rule is not to change the length even if it is allowed. It's OK to believe blindly in certain indicator and consider it while trading. That's why the indicator changes the bar color by following the MACD histogram.
Volume:
It may be the OBV works based on the open price and close price along with volume movement, it is wise to have the volume that is plotted along with price movement that should help you to decide whether the market is greedy or fearful.
The symbol "-" on top of each bar tells you a lot and don't ignore it.
Moving Average:
Moving average is a very good trend indicator as everyone considers seeing along with the price in the chart which is not omitted while we gauge the price movement alone with volume in this indicator. The 200, 90 & 50 MA's are everyone's favorite, and the same is plotted on the chart.
As explained above, the combination of all four indicators with price movement will give us very good confidence to take entry.
Candlestick Pattern:
You should admire the techniques of the candlestick pattern as you navigate the chart from right to left. Though there are a lot of patterns that exist, it is easy to enable and disable to view the signal as the label.
Further, last but not least, the exit always depends on individual conviction and how often the individual watch the price movement, if your conviction is strong then follow the down arrow red indication. If not, then exit with a trailing stop that indicates the bar with orange color.
Happy investing
Note: It is just a combination of multiple indicators and patterns to get one holistic view. So, the credit goes to all wise developers who publically published.
Customizable Pivot Support/Resistance Zones [MyTradingCoder]This script uses the standard pivot-high/pivot-low built-in methods to identify pivot points on the chart as a base calculation for the zones. Rather than displaying basic lines, it displays a zone from the original pivot point to the closest part of the available body on the same candle. The script comes in handy by utilizing Pinescripts available input.source() function to allow for an external indicators output value to be used within the indicator. Make sure to read all of the TOOLTIPS in the indicator settings menu to get a full understanding of what each setting does, and how it can affect the results that end up on the chart.
By enabling the custom filter in the indicator settings, you will notice you have the ability to filter out zones using an external indicator such as an RSI. Maybe you only want zones to be calculated/drawn when the RSI is overbought or oversold, or maybe you only want the zones to calculate/draw if the Supertrend is green or red. The list of possible filters that you can implement is too many to count. Feel free to play around with the indicator however you like, and configure something that you find to be the most useful for your trading.
On top of everything listed above, the indicator has pre-programmed built-in alertconditions so that you can potentially automate trading, or get a notification to your cell phone when a zone is being touched/broken.
