Dragon Harmonic Pattern [TradingFinder] Dragon Detector🔵 Introduction
The Dragon Harmonic Pattern is one of the technical analysis tools that assists traders in identifying Potential Reversal Zones (PRZ). Resembling an "M" or "W" shape, this pattern is recognized in financial markets as a method for predicting bullish and bearish trends. By leveraging precise Fibonacci ratios and measuring price movements, traders can use this pattern to forecast market trends with high accuracy.
The Dragon Harmonic Pattern is built on the XABCD structure, where each point plays a significant role in shaping and forecasting price movements. Point X marks the beginning of the trend, representing the initial price movement. Point A indicates the first retracement, usually falling within the 0.380 to 0.620 range of the XA wave.
Next, point B signals the second retracement, which lies within 0.200 to 0.400 of the AB wave. Point C, acting as the hump of the pattern, is generally located within 0.800 to 1.100 of the XA wave. Finally, point D represents the endpoint of the pattern and the Potential Reversal Zone (PRZ), where the primary price reversal occurs.
In bullish scenarios, the Dragon Pattern indicates a reversal from a downtrend to an uptrend, where prices move upward from point D. Conversely, in bearish scenarios, prices decline after reaching point D. Accurate identification of this pattern through Fibonacci ratio analysis and PRZ examination can significantly increase the success rate of trades, enabling traders to adjust their strategies based on key market levels such as 0.618 or 1.100.
Due to its high accuracy in identifying Potential Reversal Zones (PRZ) and its alignment with Fibonacci ratios, the Dragon Harmonic Pattern is considered one of the most popular tools in technical analysis. Traders can use this pattern to pinpoint entry and exit points with greater confidence while minimizing trading risks.
Bullish :
Bearish :
🔵 How to Use
The Dragon Harmonic Pattern indicator helps traders identify bullish and bearish patterns in the market, allowing them to capitalize on available trading opportunities. By analyzing Fibonacci ratios and the XABCD structure, the indicator highlights Potential Reversal Zones (PRZ).
🟣 Bullish Dragon Pattern
In the Bullish Dragon Pattern, the price transitions from a downtrend to an uptrend after reaching point D. At this stage, points X, A, B, C, and D must be carefully identified.
Fibonacci ratios for these points are as follows: Point A should fall within 0.380 to 0.620 of the XA wave, point B within 0.200 to 0.400 of the AB wave, and point C within 0.800 to 1.100 of the XA wave.
When the price reaches point D, traders should look for bullish signals such as reversal candlesticks or increased trading volume to enter a buy position. The take-profit level can be set near the previous price high or based on the 1.272 Fibonacci ratio of the XA wave, while the stop-loss should be placed slightly below point D.
🟣 Bearish Dragon Pattern
In the Bearish Dragon Pattern, the price shifts from an uptrend to a downtrend after reaching point D. In this pattern, points X, A, B, C, and D must also be identified. Fibonacci ratios for these points are as follows: Point A should fall within 0.380 to 0.620 of the XA wave, point B within 0.200 to 0.400 of the AB wave, and point C within 0.800 to 1.100 of the XA wave.
Upon reaching point D, bearish signals such as reversal candlesticks or decreasing trading volume indicate the opportunity to enter a sell position. The take-profit level can be set near the previous price low or based on the 1.272 Fibonacci ratio of the XA wave, while the stop-loss should be placed slightly above point D.
By combining the Dragon Harmonic Pattern indicator with precise Fibonacci ratio analysis, traders can identify key opportunities while minimizing risks and improving their decision-making in both bullish and bearish market conditions.
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Forma t: If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
🔵 Conclusion
The Dragon Harmonic Pattern is an advanced and practical technical analysis tool that aids traders in accurately predicting bullish and bearish trends by identifying Potential Reversal Zones (PRZ) and utilizing Fibonacci ratios. Built on the XABCD structure, this pattern stands out for its flexibility and precision in identifying price movements, making it a valuable resource among technical analysts. One of its key advantages is its compatibility with other technical tools such as trendlines, support and resistance levels, and Fibonacci retracements.
By using the Dragon Harmonic Pattern indicator, traders can accurately determine entry and exit points for their trades. The indicator analyzes key Fibonacci ratios—0.380 to 0.620, 0.200 to 0.400, and 0.800 to 1.100—to identify critical levels such as price highs and lows, offering precise trading strategies. In bullish scenarios, traders can profit from rising prices, while in bearish scenarios, they can capitalize on price declines.
In conclusion, the Dragon Harmonic Pattern is a highly reliable tool for identifying trading opportunities with exceptional accuracy. However, for optimal results, it is recommended to combine this pattern with other analytical tools and thoroughly assess market conditions. By utilizing this indicator, traders can reduce their trading risks while achieving higher profitability and confidence in their trading strategies.
在腳本中搜尋"wave"
Quick scan for cycles🙏🏻
The followup for
As I told before, ML based algorading is all about detecting any kind of non-randomness & exploiting it (cuz allegedly u cant trade randomness), and cycles are legit patterns that can be leveraged
But bro would u really apply Fourier / Wavelets / 'whatever else heavy' on every update of thousands of datasets, esp in real time on HFT / nearly HFT data? That's why this metric. It works much faster & eats hell of a less electicity, will do initial rough filtering of time series that might contain any kind of cyclic behaviour. And then, only on these filtered datasets u gonna put Periodograms / Autocorrelograms and see what's going there for real. Better to do it 10x times less a day on 10x less datasets, right?
I ended up with 2 methods / formulas, I called em 'type 0' and 'type 1':
- type 0: takes sum of abs deviations from drift line, scales it by max abs deviation from the same drift line;
- type 1: takes sum of abs deviations from drift line, scales it by range of non-abs deviations from the same drift line.
Finnaly I've chosen type 0 , both logically (sum of abs dev divided by max abs dev makes more sense) and experimentally. About that actually, here are both formulas put on sine waves with uniform noise:
^^ generated sine wave with uniform noise
^^ both formulas on that wave
^^ both formulas on real data
As you can see type 0 is less affected by noise and shows higher values on synthetic data, but I decided to put type 1 inside as well, in case my analysis was not complete and on real data type 1 can actually be better since it has a lil higher info gain / info content (still not sure). But I can assure u that out of all other ways I've designed & tested for quite a time I tell you, these 2 are really the only ones who got there.
Now about dem thresholds and how to use it.
Both type 0 and type 1 can be modelled with Beta distribution, and based on it and on some obvious & tho non mainstream statistical modelling techniques, I got these thresholds, so these are not optimized overfitted values, but natural ones. Each type has 3 thresholds (from lowest to highest):
- typical value (turned off by default). aka basis ;
- typical deviation from typical value, aka deviation ;
- maximum modelled deviation from typical value (idk whow to call it properly for now, this is my own R&D), aka extension .
So when the metric is above one of these thresholds (which one is up to you, you'll read about it in a sec), it means that there might be a strong enough periodic signal inside the data, and the data got to be put through proper spectral analysis tools to confirm / deny it.
If you look at the pictures above again, you'll see gray signal, that's uniform noise. Take a look at it and see where does it sit comparing to the thresholds. Now you just undertand that picking up a threshold is all about the amount of false positives you care to withstand.
If you take basis as threshold, you'll get tons of false positives (that's why it's even turned off by default), but you'll almost never miss a true positive. If you take deviation as threshold, it's gonna be kinda balanced approach. If you take extension as threshold, you gonna miss some cycles, and gonna get only the strongest ones.
More true positives -> more false positives, less false positives -> less true positives, can't go around that mane
Just to be clear again, I am not completely sure yet, but I def lean towards type 0 as metric, and deviation as threshold.
Live Long and Prosper
P.S.: That was actually the main R&D of the last month, that script I've released earlier came out as derivative.
P.S.: These 2 are the first R&Ds made completely in " art-space", St. Petersburg. Come and see me, say wassup🤘🏻
Next Candle Predictor with Auto HedgingThe "Next Candle Predictor with Auto Hedging" is a Pine Script indicator designed for use on TradingView. It combines predictive analysis and basic hedging techniques to assist traders in making informed decisions. Here's a detailed explanation suitable for public sharing on TradingView:
Overview
This script predicts the closing price of the next candle based on the current candle's open and close prices. It also includes an auto hedging feature that suggests potential hedging levels to mitigate risk based on the predicted price movement. The indicator is particularly useful for traders looking to enhance their trading strategies with predictive analytics.
Key Features
Next Candle Prediction:
The indicator analyzes the current candle's data (open and close prices) to predict whether the next candle will close higher or lower.
If the current candle is bullish (close > open), it predicts a higher close for the next candle. Conversely, if the candle is bearish, it predicts a lower close.
Auto Hedging:
The script calculates a hedging level based on the predicted close price.
If the predicted close indicates a bullish move, the hedge level is set slightly below the predicted close, suggesting where a trader might consider placing a hedge. If the prediction indicates a bearish move, the hedge level is set above the predicted close.
Elliott Wave Analysis:
The script includes a basic implementation of identifying significant price movements, akin to Elliott Wave analysis, by detecting peaks and troughs over a specified number of bars (wave length).
This can help traders identify potential trend reversals or continuations.
How It Works
Input Parameters: Users can customize the waveLength parameter, which determines how many bars back the script looks to identify significant highs and lows.
Peak and Trough Detection: The script identifies the highest high and lowest low within the specified wave length, plotting these points on the chart for visual reference.
Prediction Logic: The predicted close is calculated based on the current candle's behavior, allowing traders to anticipate price movements.
Hedging Level Calculation: The script dynamically calculates a hedging level based on the predicted close, providing a visual cue for potential risk management strategies.
Visual Representation
The indicator plots:
Elliott Wave Highs: Marked in green.
Elliott Wave Lows: Marked in red.
Predicted Close: Shown as a blue step line.
Hedge Level: Displayed as an orange step line.
Benefits
Enhanced Decision-Making: By providing predictions and potential hedging levels, traders can make more informed decisions about entering or exiting positions.
Risk Management: The auto hedging feature helps traders manage risk by suggesting levels where they might place hedges against adverse price movements.
Customizable: The script allows for user-defined parameters, making it adaptable to different trading strategies and market conditions.
Conclusion
The "Next Candle Predictor with Auto Hedging" indicator is a powerful tool for traders seeking to enhance their trading strategies with predictive analytics and risk management techniques. By utilizing this indicator, traders can gain insights into potential price movements and make more informed trading decisions.
Feel free to explore the script, customize it to fit your trading style, and engage with the TradingView community for further insights and improvements!
Related
All Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws and sends alerts for all of the harmonic patterns in my public library as they occur. The patterns included are as follows:
• Bearish 5-0
• Bullish 5-0
• Bearish ABCD
• Bullish ABCD
• Bearish Alternate Bat
• Bullish Alternate Bat
• Bearish Bat
• Bullish Bat
• Bearish Butterfly
• Bullish Butterfly
• Bearish Cassiopeia A
• Bullish Cassiopeia A
• Bearish Cassiopeia B
• Bullish Cassiopeia B
• Bearish Cassiopeia C
• Bullish Cassiopeia C
• Bearish Crab
• Bullish Crab
• Bearish Deep Crab
• Bullish Deep Crab
• Bearish Cypher
• Bullish Cypher
• Bearish Gartley
• Bullish Gartley
• Bearish Shark
• Bullish Shark
• Bearish Three-Drive
• Bullish Three-Drive
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Measurement Tolerances
Tolerance refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. I have applied this concept in my pattern detection logic and have set default tolerances where applicable, as perfect patterns are, needless to say, very rare.
Chart Patterns
Generally speaking price charts are nothing more than a series of swing highs and swing lows. When demand outweighs supply over a period of time prices swing higher and when supply outweighs demand over a period of time prices swing lower. These swing highs and swing lows can form patterns that offer insight into the prevailing supply and demand dynamics at play at the relevant moment in time.
‘Let us assume… that you the reader, are not a member of that mysterious inner circle known to the boardrooms as “the insiders”… But it is fairly certain that there are not nearly so many “insiders” as amateur trader supposes and… It is even more certain that insiders can be wrong… Any success they have, however, can be accomplished only by buying and selling… hey can do neither without altering the delicate poise of supply and demand that governs prices. Whatever they do is sooner or later reflected on the charts where you… can detect it. Or detect, at least, the way in which the supply-demand equation is being affected… So, you do not need to be an insider to ride with them frequently… prices move in trends. Some of those trends are straight, some are curved; some are brief and some are long and continued… produced in a series of action and reaction waves of great uniformity. Sooner or later, these trends change direction; they may reverse (as from up to down), or they may be interrupted by some sort of sideways movement and then, after a time, proceed again in their former direction… when a price trend is in the process of reversal… a characteristic area or pattern takes shape on the chart, which becomes recognisable as a reversal formation… Needless to say, the first and most important task of the technical chart analyst is to learn to know the important reversal formations and to judge what they may signify in terms of trading opportunities’ (Edwards & Magee, 1948).
This is as true today as it was when Edwards and Magee were writing in the first half of the last Century, study your patterns and make judgements for yourself about what their implications truly are on the markets and timeframes you are interested in trading.
Over the years, traders have come to discover a multitude of chart and candlestick patterns that are supposed to pertain information on future price movements. However, it is never so clear cut in practice and patterns that where once considered to be reversal patterns are now considered to be continuation patterns and vice versa. Bullish patterns can have bearish implications and bearish patterns can have bullish implications. As such, I would highly encourage you to do your own backtesting.
There is no denying that chart patterns exist, but their implications will vary from market to market and timeframe to timeframe. So it is down to you as an individual to study them and make decisions about how they may be used in a strategic sense.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
█ INPUTS
• Change pattern and label colours
• Show or hide patterns individually
• Adjust pattern tolerances
• Set or remove alerts for individual patterns
█ NOTES
You can test the patterns with your own strategies manually by applying the indicator to your chart while in bar replay mode and playing through the history. You could also automate this process with PineScript by using the conditions from my swing and pattern libraries as entry conditions in the strategy tester or your own custom made strategy screener.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ SOURCES
Edwards, R., & Magee, J. (1948) Technical Analysis of Stock Trends (10th edn). Reprint, Boca Raton, Florida: Taylor and Francis Group, CRC Press: 2013.
[GYTS-Pro] Flux Composer🧬 Flux Composer (Professional Edition)
🌸 Confluence indicator in GoemonYae Trading System (GYTS) 🌸
The Flux Composer is a powerful tool in the GYTS suite that is designed to aggregate signals from multiple Signal Providers, apply advanced decaying functions, and offer customisable and advanced confluence mechanisms. This allows making informed decisions by considering the strength and agreement ("when all stars align") of various input signals.
🌸 --------- TABLE OF CONTENTS --------- 🌸
1️⃣ Main Highlights
2️⃣ Flux Composer’s Features
Multi Signal Provider support
Advanced decaying functions
Customisable Flux confluence mechanisms
Actionable trading experience
Filtering options
User-friendly experience
Upgrades compared to Community Edition
3️⃣ User Guide
Selecting Signal Providers
Connecting Signal Providers to the Flux Composer
Understanding the Flux
Tuning the decaying functions
Choosing Flux confluence mechanism
Choosing sensitivity
Utilising the filtering options
Interpreting the Flux for trading signals
4️⃣ Limitations
🌸 ------ 1️⃣ --- MAIN HIGHLIGHTS --- 1️⃣ ------ 🌸
- Signal aggregation : Combines signals from multiple different 📡 Signal Providers, each of which can be tuned and adjusted independently.
- Decaying function : Utilises advanced decaying functions to model the diminishing effect of signals over time, ensuring that recent signals have more weight. In addition to the decaying effect, the "quality" of the original signals (e.g. a "strong" GDM from WaveTrend 4D ) are accounted for as well.
- Flux confluence mechanism : The aggregation of all decaying functions form the "Flux", which is the core signal measurement of the Flux Composer. Multiple mechanisms are available for creating the Flux and effectively using it for actionable trading signals.
- Visualisation : Provides detailed visualisation options to help users understand and tune the contributions of individual Signal Providers and their decaying functions.
- Backtesting : The 🧬 Flux Composer is a core component of the TradingView suite of the 🌸 GoemonYae Trading System (GYTS) 🌸. It connects multiple 📡 Signal Providers, such as the WaveTrend 4D, and processes their signals to produce a unified "Flux". This Flux can then be used by the GYTS "🎼 Order Orchestrator" for backtesting and trade automation.
🌸 ------ 2️⃣ --- FLUX COMPOSER'S FEATURES --- 2️⃣ ------ 🌸
Let's delve into more details...
💮 1. Multi Signal Provider support
Using the name of the GYTS "🎼 Order Orchestrator" as an analogy: Imagine a symphony where each instrument plays its own unique part, contributing to the overall harmony. The Flux Composer operates similarly, integrating multiple Signal Providers to create a comprehensive and robust trading signal -- the "Flux". Currently, it supports up to four streams from the WaveTrend 4D's ’s Gradient Divergence Measure (GDM) and another four streams from the Quantile Median Cross (QMC). These can be either four "Professional Edition" Signal Providers or eight "Community Editions".
Note that the GDM includes 2 different continuous signals and the QMC 3 different continuous signals (from different frequencies). This means that the Community Edition can handle 2*2 + 2*3 = 10 different continuous signals and the Professional Edition as much as 20.
As GYTS evolves, more Signal Providers will be added; at the moment of releasing the Flux Composer, only WaveTrend 4D is publicly available.
💮 2. Advanced decaying functions
A trading signal can be relevant today, less relevant tomorrow, and irrelevant in a week's time. In other words, its relevance diminishes, or decays , over time. The Flux Composer utilises decaying functions that ensure that recent signals carry more weight, while older signals fade away. This is crucial for accurate signal processing. The intensity and decay settings allow for precise control, allowing emphasising certain signals based on their strength and relevance over time. On top of that, unlike binary signals ("buy now"), the Flux Composer utilises the actual values from the Signal Providers, differentiating between the exact quality of signals, and thus offering a detailed representation of the trading landscape. We will illustrate this in a further section.
💮 3. Customisable Flux confluence mechanisms
Another core component of the Flux Composer is the ability of intelligently combining the decaying functions. It offers four sophisticated confluence mechanisms: Amplitude Compression, Accentuated Amplitude Compression, Trigonometric, and GYTSynthesis. Each mechanism has its unique way of processing the Flux, tailored to different trading needs. For instance, the Amplitude Compression method scales the Flux based on recent values, much like the Stochastic Oscillator, while the Trigonometric method uses smooth functions to reduce outliers’ impact. The GYTSynthesis is a proprietary method, striking a balance between signal strength and discriminative power.
We'll discuss this in more detail in the User Guide section.
💮 4. Actionable trading experience
While the mathematical abilities might seem overwhelming, the goal of the Flux Composer is to transform complex signal data into actionable trading signals. When the Flux reaches certain thresholds, it generates clear bullish or bearish signals, making it easy for traders to interpret. The inclusion of upper and lower thresholds (UT and LT) helps in identifying strong signals visually and should be a familiar behaviour similar to how many other indicators operate. Furthermore, the Flux Composer can plot trading signals directly on the oscillator, showing triangle shapes for buy or sell signals. This visual aid is complemented by the possibility to setup TradingView alerts.
💮 5. Filtering options
The Professional Edition also offers filtering options to possibly further improve the quality of Flux signals. Signal streams can be divided into “Signal Flux” and “Filter Flux.” The Filter Flux acts as a gatekeeper, ensuring that only signals meeting the Filter's criteria (which consist of similar UT/LT thresholds) are considered for trading. This dual-layer approach enhances the reliability of trading signals, reducing the chances of false positives.
💮 6. User-friendly experience
GYTS is all about sophisticated, robust methods but also "elegance". One of the interpretations of the latter, is that the users' experience is very important. Despite the Flux Composer's mathematical underpinnings, it offers intuitive settings that with omprehensive tooltips to help with a smooth setup process. For those looking to fine-tune their signals, the Flux Composer allows the visualisation of individual decaying functions. This feature helps users understand the impact of each setting and make informed adjustments. Additionally, the background of the chart can be coloured to indicate the trading direction suggested by the Filter Flux, providing an at-a-glance overview of market conditions.
💮 7. Upgrades compared to Community Edition
Number of signal streams -- At the moment of writing, the Professional Edition works with 4x GDM and 4x QMC signal streams from WaveTrend 4D Signal Provider , while Community Edition (CE) Flux Composer (FC) only works with 2x GDM and 2x QMC signal streams.
Flux confluence mechanism -- CE includes the Amplitude Compression and Trigonometric confluence mechanisms, while the Pro Edition also includes the Accentuated Amplitude Compression and the GYTSynthesis mechanisms.
Signal streams as filters -- The Pro Edition can use Signal Providers as filters.
🌸 ------ 3️⃣ --- USER GUIDE --- 3️⃣ ------ 🌸
💮 1. Selecting Signal Providers
The Flux Composer’s foundation lies in its Signal Providers. When starting with the Flux Composer, using a single Signal Provider can already provide significant value due to the nature of decaying functions. For instance, the WaveTrend 4D signal provider includes up to 5 signal types (GDM and QMC in different frequencies) in a single direction (long/short). Moreover, the various confluence mechanisms that enhance the resulting Flux result in improved discrimination between weak and strong signals. This approach is akin to ensemble learning in machine learning, where multiple models are combined to improve predictive performance.
While using a single Signal Provider is beneficial, the true power of the Flux Composer is realised with multiple Signal Providers. Here are two general approaches to selecting Signal Providers:
Diverse Behaviours
Use Signal Providers with different behaviours, such as WaveTrend 4D on various assets/timeframes or entirely different Signal Providers. This approach leverages diversification to achieve robustness, rooted in the principle that varied sources enhance the overall signal quality. To explain this with an analogy, this strategy aligns with the theory of diversification in portfolio management, where combining uncorrelated assets reduces overall risk. Similarly, combining uncorrelated signals can mitigate the risk of signal failure. A practical example can be integrating a mean-reversion signal with a trend-following signal -- these can balance each other out, providing more stable outputs over different market conditions.
Enhancing a Single Provider
If you consider a particular Signal Provider highly effective, you could improve its robustness by using multiple instances with slight variations. These variations could include different sources (e.g., close, HL2, HLC3), data providers (same asset across different brokers/exchanges), or parameter adjustments. This method mirrors Monte Carlo simulations, often used in risk management and derivative pricing, which involve running many simulations with varied inputs to estimate the probability of different outcomes. By applying similar principles, the strategy becomes less susceptible to overfitting, ensuring the signals are not overly dependent on specific data conditions.
💮 2. Connecting Signal Providers to the Flux Composer
Moving on to practicalities: how do you connect Signal Providers with the Flux Composer? You may have noticed that when you open the drawdown of a data source in a TradingView indicator (with "open", "high", "low", etc.), you also see names from other indicators on your chart. We call these "streams", and the Signal Providers are designed such that they output this stream in a way that the Flux Composer can interpret it. Thus, to connect a Signal Provider with the Flux Composer, you should first have that Signal Provider on your chart. Obviously you should set it up an a way that it seems to provide good signals. After that, in the Data Stream dropdown in the Flux Composer, you can select the stream that is outputted by your Signal Provider. This will always be with a prefix of "🔗 STREAM" (after the Signal Provider's indicator name). See the chart below.
There is one important nuance: when you have multiple (similar) Signal Providers on your chart, it may be hard to select the correct data stream in the Flux Composer as the names of the streams keep repeating when you use identical indicators. So be sure to be attentive as you might end up using the same signals multiple times.
Also, the Signal Providers have an "Indicator name" parameter (and another parameter to repeat this name) that is handy to use when you have multiple Signal Providers on your screen. It is handy to give names that describe the unique settings of that Signal Provider so you can better differentiate what you are looking at on your screen.
💮 3. Understanding the Flux
Let's understand how the Signal Provider's signals are processed. In the chart below, you see we have one Signal Provider (WaveTrend 4D) connected to the Flux Composer and that it gives a bearish QMC signal. The Flux Composer converts this into a decaying function. You can show these functions per Signal Provider when the option "Show decaying function of Signal Provider" is enabled (as it is in the chart).
In our opinion, of crucial importance is the ability to process the quality of signals, rather than just any signal. In mathematical terms, we are interested in continuous signals as these provide a spectrum of values. These signals can reflect varying degrees of market sentiment or trend strength, offering richer information than binary signals, which offer only two states (e.g., buy/sell). Especially in the context of the Flux Composer, where you aggregate multiple signals, it makes a big difference whether you combine 10 weak signals or 10 strong signals. To illustrate this principle, look at the chart below where there are 4 signals of different strengths. As you can see, each of the signals affects the Flux with different intensities.
💮 4. Tuning the decaying functions
As previously mentioned, the decaying functions are a way to give more importance to recent signals while allowing older ones to fade away gradually. This mimics the natural way we assess information, giving more weight to recent events. The decaying functions in the Flux Composer are highly customisable while remaining easy to use. You can adjust the initial intensity , which sets the starting strength of a signal, and the decay rate, which determines how quickly this signal diminishes over time. Let's look at specific examples.
If we add 3 Flux Composers on the chart, connect the same Signal Provider, keep all settings the same with one exception, we get the chart below. Here we have changed the "intensity" parameter of the specific signal. As you can see, the decaying functions are different. The intensity determines the initial strength of the decayed function. Adjusting the intensity allows you to emphasise certain signal types based on their perceived reliability or importance.
Let's now keep the intensity the same ("normal"), but change the "decay" parameter. As you can see in the image below, the decay controls how quickly the signal’s strength diminishes over time. By adjusting the decay, you can model the longevity of the signal’s impact. A faster decay means the signal loses its influence quickly, while a slower decay means it remains relevant for a longer period.
So how do multiple signals interact? You can see this as a simple "stacking of decaying functions" (although there is more to it, see next section). In the chart below we different strenghts of signals and different decay rates to illustrate how the Flux is constructed.
Hopefully this helps with developing some intuition how signals are converted to decaying functions, how you can control them, and how the Flux is constructed. When tuning these parameters, use the visualisation options to see how individual decaying functions contribute to the overall Flux. This helps in understanding and refining the parameters to achieve the desired trading signal behaviour.
💮 5. Choosing Flux confluence mechanism
While we mentioned that the Flux is a "stacking of individual decaying functions", in the back-end, that is not exactly that simple. Like previously mentioned, for GYTS, "elegance" is very important. One of the interpretations is "user friendliness" and the Flux confluence mechanism is one of the essential developments for this characteristic. The Flux confluence mechanism is critical in synthesising the aggregated signals into the Flux. The choice of mechanism affects how the signals are combined and the resulting trading signals. The Professional Edition offers four distinct mechanisms, each with its strengths.
The Amplitude Compression mechanism is intuitive, scaling the Flux based on recent values, intuitively not unlike the method of the well-known Stochastic Oscillator. The Accentuated Amplitude Compression method takes this a step further, giving more weight to strong Flux values. The Trigonometric mechanism smooths the Flux and reduces the impact of outliers, providing a balanced approach. Finally, the GYTSynthesis mechanism, a proprietary approach, balances signal strength and discriminative power, making it easier to tune and generalise.
It's difficult to convey the workings of the Flux confluence mechanism in a chart, but let's take the opportunity to show how the Flux would look like when connecting both one WaveTrend 4D Signal Provider signals to four Flux Composers with default settings, except the Flux confluence mechanism:
You may notice subtle differences between the four methods. They react differently to different values and their overall shape is slightly be different. The Amplitude Compression is more "pointy" and GYTSynthesis doesn't react to low values. There are many nuances, especially in combination with tuning the sensitivity and upper/lower threshold (UT/LT) parameters.
💮 6. Choosing sensitivity
Speaking of the sensitivity , this parameters fine-tunes how responsive the Flux is to the input signals. Higher sensitivity results in more pronounced responses, leading to more frequent trading signals. Lower sensitivity makes the Flux less responsive, resulting in fewer but potentially more reliable signals.
You might think that changing the upper/lower threshold (UT/LT) parameters would be equivalent, but that's not the case. The sensitivity In case of the Amplitude Compression mechanisms, changing the sensitivity would change the relative Flux shape over time, and with the Trigonometric and GYTSynthesis mechanisms, the Flux shape itself (independent of time) would change. In other words, these are all good parameters for tuning.
💮 7. Utilising the filtering options
When choosing the signal stream of a Signal Provider, you can also change the default "Signal" category of that Signal Provider to a "Filter". In the example below, two Signal Providers are connected; the second is set as a filter. You can see that a second row of a Flux is shown in the Flux Composer (this visualisation can be disabled), corresponding with the signals of the second Signal Provider.
Logically, only when the Filter Flux gives a signal in a certain direction, signals from the regular Signal Flux are registered. Generally speaking, for this use case it is handy to set the thresholds for the Filter Flux low and possibly to decrease the decay rate so that the filtering is active for a long enough time.
💮 8. Interpreting the Flux for trading signals
Lastly, the Signal Flux gives buy and sell signals when it crosses the upper/lower thresholds (UT/LT), when the filter allows it (if enabled). This can be visualised with the triangles as you may have seen in the charts in the previous sections. For people using TradingView's alerts -- these would work too out of the box. And finally, for backtesting and possibly trade automation, we will have the GYTS "🎼 Order Orchestrator" that connects with the Flux Composer.
🌸 ------ 4️⃣ --- LIMITATIONS --- 4️⃣ ------ 🌸
Only 🌸 GYTS 📡 Signal Providers are supported, as there is a specific method to pass continuous (non-binary) data in the data stream
At the moment of release, only the WaveTrend 4D Signal Provider is available. Other Signal Providers will be gradually released.
[GYTS-CE] Flux Composer🧬 Flux Composer (Community Edition)
🌸 Confluence indicator in GoemonYae Trading System (GYTS) 🌸
The Flux Composer is a powerful tool in the GYTS suite that is designed to aggregate signals from multiple Signal Providers, apply customisable decaying functions, and offer customisable and advanced confluence mechanisms. This allows making informed decisions by considering the strength and agreement ("when all stars align") of various input signals.
🌸 --------- TABLE OF CONTENTS --------- 🌸
1️⃣ Main Highlights
2️⃣ Flux Composer’s Features
Multi Signal Provider support
Advanced decaying functions
Customisable Flux confluence mechanisms
Actionable trading experience
User-friendly experience
3️⃣ User Guide
Selecting Signal Providers
Connecting Signal Providers to the Flux Composer
Understanding the Flux
Tuning the decaying functions
Choosing Flux confluence mechanism
Choosing sensitivity
Interpreting the Flux for trading signals
4️⃣ Limitations
🌸 ------ 1️⃣ --- MAIN HIGHLIGHTS --- 1️⃣ ------ 🌸
- Signal aggregation : Combines signals from multiple different 📡 Signal Providers, each of which can be tuned and adjusted independently.
- Decaying function : Utilises advanced decaying functions to model the diminishing effect of signals over time, ensuring that recent signals have more weight. In addition to the decaying effect, the "quality" of the original signals (e.g. a "strong" GDM from WaveTrend 4D with GDM ) are accounted for as well.
- Flux confluence mechanism : The aggregation of all decaying functions form the "Flux", which is the core signal measurement of the Flux Composer. Multiple mechanisms are available for creating the Flux and effectively using it for actionable trading signals.
- Visualisation : Provides detailed visualisation options to help users understand and tune the contributions of individual Signal Providers and their decaying functions.
- Backtesting : The 🧬 Flux Composer is a core component of the TradingView suite of the 🌸 GoemonYae Trading System (GYTS) 🌸. It connects multiple 📡 Signal Providers, such as the WaveTrend 4D, and processes their signals to produce a unified "Flux". This Flux can then be used by the GYTS "🎼 Order Orchestrator" for backtesting and trade automation.
🌸 ------ 2️⃣ --- FLUX COMPOSER'S FEATURES --- 2️⃣ ------ 🌸
Let's delve into more details...
💮 1. Multi Signal Provider support
Using the name of the GYTS "🎼 Order Orchestrator" as an analogy: Imagine a symphony where each instrument plays its own unique part, contributing to the overall harmony. The Flux Composer operates similarly, integrating multiple Signal Providers to create a comprehensive and robust trading signal -- the "Flux". Currently, it supports up to two streams from the WaveTrend 4D’s Gradient Divergence Measure (GDM) and another two streams from the WaveTrend 4D's Quantile Median Cross (QMC) .
Note that the GDM includes 2 different continuous signals and the QMC 3 different continuous signals (from different frequencies). This means that the Community Edition can handle 2*2 + 2*3 = 10 different continuous signals.
As GYTS evolves, more Signal Providers will be added; at the moment of releasing the Flux Composer, only WaveTrend 4D with GDM and with QMC are publicly available.
💮 2. Advanced decaying functions
A trading signal can be relevant today, less relevant tomorrow, and irrelevant in a week's time. In other words, its relevance diminishes, or decays , over time. The Flux Composer utilises decaying functions that ensure that recent signals carry more weight, while older signals fade away. This is crucial for accurate signal processing. The intensity and decay settings allow for precise control, allowing emphasising certain signals based on their strength and relevance over time. On top of that, unlike binary signals ("buy now"), the Flux Composer utilises the actual values from the Signal Providers, differentiating between the exact quality of signals, and thus offering a detailed representation of the trading landscape. We will illustrate this in a further section.
💮 3. Customisable Flux confluence mechanisms
Another core component of the Flux Composer is the ability of intelligently combining the decaying functions. It offers two sophisticated confluence mechanisms: Amplitude Compression and Trigonometric. Each mechanism has its unique way of processing the Flux, tailored to different trading needs. The Amplitude Compression method scales the Flux based on recent values, much like the Stochastic Oscillator, while the Trigonometric method uses smooth functions to reduce outliers’ impact We'll discuss this in more detail in the User Guide section.
💮 4. Actionable trading experience
While the mathematical abilities might seem overwhelming, the goal of the Flux Composer is to transform complex signal data into actionable trading signals. When the Flux reaches certain thresholds, it generates clear bullish or bearish signals, making it easy for traders to interpret. The inclusion of upper and lower thresholds (UT and LT) helps in identifying strong signals visually and should be a familiar behaviour similar to how many other indicators operate. Furthermore, the Flux Composer can plot trading signals directly on the oscillator, showing triangle shapes for buy or sell signals. This visual aid is complemented by the possibility to setup TradingView alerts.
💮 5. User-friendly experience
GYTS is all about sophisticated, robust methods but also "elegance". One of the interpretations of the latter, is that the users' experience is very important. Despite the Flux Composer's mathematical underpinnings, it offers intuitive settings that with omprehensive tooltips to help with a smooth setup process. For those looking to fine-tune their signals, the Flux Composer allows the visualisation of individual decaying functions. This feature helps users understand the impact of each setting and make informed adjustments.
🌸 ------ 3️⃣ --- USER GUIDE --- 3️⃣ ------ 🌸
💮 1. Selecting Signal Providers
The Flux Composer’s foundation lies in its Signal Providers. When starting with the Flux Composer, using a single Signal Provider can already provide significant value due to the nature of decaying functions. For instance, the WaveTrend 4D signal provider includes up to two GDM and three QMC signals in a single direction (long/short). Moreover, the various confluence mechanisms that enhance the resulting Flux result in improved discrimination between weak and strong signals. This approach is akin to ensemble learning in machine learning, where multiple models are combined to improve predictive performance.
While using a single Signal Provider is beneficial, the true power of the Flux Composer is realised with multiple Signal Providers. Here are two general approaches to selecting Signal Providers:
Diverse Behaviours
Use Signal Providers with different behaviours, such as WaveTrend 4D on various assets/timeframes or entirely different Signal Providers. This approach leverages diversification to achieve robustness, rooted in the principle that varied sources enhance the overall signal quality. To explain this with an analogy, this strategy aligns with the theory of diversification in portfolio management, where combining uncorrelated assets reduces overall risk. Similarly, combining uncorrelated signals can mitigate the risk of signal failure. A practical example can be integrating a mean-reversion signal with a trend-following signal -- these can balance each other out, providing more stable outputs over different market conditions.
Enhancing a Single Provider
If you consider a particular Signal Provider highly effective, you could improve its robustness by using multiple instances with slight variations. These variations could include different sources (e.g., close, HL2, HLC3), data providers (same asset across different brokers/exchanges), or parameter adjustments. This method mirrors Monte Carlo simulations, often used in risk management and derivative pricing, which involve running many simulations with varied inputs to estimate the probability of different outcomes. By applying similar principles, the strategy becomes less susceptible to overfitting, ensuring the signals are not overly dependent on specific data conditions.
💮 2. Connecting Signal Providers to the Flux Composer
Moving on to practicalities: how do you connect Signal Providers with the Flux Composer? You may have noticed that when you open the drawdown of a data source in a TradingView indicator (with "open", "high", "low", etc.), you also see names from other indicators on your chart. We call these "streams", and the Signal Providers are designed such that they output this stream in a way that the Flux Composer can interpret it. Thus, to connect a Signal Provider with the Flux Composer, you should first have that Signal Provider on your chart. Obviously you should set it up an a way that it seems to provide good signals. After that, in the Data Stream dropdown in the Flux Composer, you can select the stream that is outputted by your Signal Provider. This will always be with a prefix of "🔗 STREAM" (after the Signal Provider's indicator name). See the chart below.
There is one important nuance: when you have multiple (similar) Signal Providers on your chart, it may be hard to select the correct data stream in the Flux Composer as the names of the streams keep repeating when you use identical indicators. So be sure to be attentive as you might end up using the same signals multiple times.
Also, the Signal Providers have an "Indicator name" parameter (and another parameter to repeat this name) that is handy to use when you have multiple Signal Providers on your screen. It is handy to give names that describe the unique settings of that Signal Provider so you can better differentiate what you are looking at on your screen.
💮 3. Understanding the Flux
Let's understand how the Signal Provider's signals are processed. In the chart below, you see we have one Signal Provider (WaveTrend 4D) connected to the Flux Composer and that it gives a bearish QMC signal. The Flux Composer converts this into a decaying function. You can show these functions per Signal Provider when the option "Show decaying function of Signal Provider" is enabled (as it is in the chart).
In our opinion, of crucial importance is the ability to process the quality of signals, rather than just any signal. In mathematical terms, we are interested in continuous signals as these provide a spectrum of values. These signals can reflect varying degrees of market sentiment or trend strength, offering richer information than binary signals, which offer only two states (e.g., buy/sell). Especially in the context of the Flux Composer, where you aggregate multiple signals, it makes a big difference whether you combine 10 weak signals or 10 strong signals. To illustrate this principle, look at the chart below where there are 4 signals of different strengths. As you can see, each of the signals affects the Flux with different intensities.
💮 4. Tuning the decaying functions
As previously mentioned, the decaying functions are a way to give more importance to recent signals while allowing older ones to fade away gradually. This mimics the natural way we assess information, giving more weight to recent events. The decaying functions in the Flux Composer are highly customisable while remaining easy to use. You can adjust the initial intensity , which sets the starting strength of a signal, and the decay rate, which determines how quickly this signal diminishes over time. Let's look at specific examples.
If we add 3 Flux Composers on the chart, connect the same Signal Provider, keep all settings the same with one exception, we get the chart below. Here we have changed the "intensity" parameter of the specific signal. As you can see, the decaying functions are different. The intensity determines the initial strength of the decayed function. Adjusting the intensity allows you to emphasise certain signal types based on their perceived reliability or importance.
Let's now keep the intensity the same ("normal"), but change the "decay" parameter. As you can see in the image below, the decay controls how quickly the signal’s strength diminishes over time. By adjusting the decay, you can model the longevity of the signal’s impact. A faster decay means the signal loses its influence quickly, while a slower decay means it remains relevant for a longer period.
So how do multiple signals interact? You can see this as a simple "stacking of decaying functions" (although there is more to it, see next section). In the chart below we use different "intensity" and "decay" parameters to discuss how the Flux is created.
Hopefully this helps with developing some intuition how signals are converted to decaying functions, how you can control them, and how the Flux is constructed. When tuning these parameters, use the visualisation options to see how individual decaying functions contribute to the overall Flux. This helps in understanding and refining the parameters to achieve the desired trading signal behaviour.
💮 5. Choosing Flux confluence mechanism
While we mentioned that the Flux is a "stacking of individual decaying functions", in the back-end, that is not exactly that simple. Like previously mentioned, for GYTS, "elegance" is very important. One of the interpretations is "user friendliness" and the Flux confluence mechanism is one of the essential developments for this characteristic. The Flux confluence mechanism is critical in synthesising the aggregated signals into the Flux. The choice of mechanism affects how the signals are combined and the resulting trading signals. The Community Edition offers two distinct mechanisms, each with its strengths.
The Amplitude Compression mechanism is intuitive, scaling the Flux based on recent values, intuitively not unlike the method of the well-known Stochastic Oscillator. On the other hand, the Trigonometric mechanism smooths the Flux and reduces the impact of outliers, providing a balanced approach. It's difficult to convey the workings of the Flux confluence mechanism in a chart, but let's take the opportunity to show how the Flux would look like when connecting both GDM and QMC signals to two Flux Composers with default settings, except the Flux confluence mechanism:
You can notice that the upper Flux Converter (FC) triggered two signals while the other FC triggered only one. There are more nuances, especially in combination with tuning the sensitivity and upper/lower threshold (UT/LT) parameters.
💮 6. Choosing sensitivity
Speaking of the sensitivity , this parameters fine-tunes how responsive the Flux is to the input signals. Higher sensitivity results in more pronounced responses, leading to more frequent trading signals. Lower sensitivity makes the Flux less responsive, resulting in fewer but potentially more reliable signals.
You might think that changing the upper/lower threshold (UT/LT) parameters would be equivalent, but that's not the case. The sensitivity In case of the Amplitude Compression mechanism, changing the sensitivity would change the relative Flux shape over time, and with the Trigonometric mechanism, the Flux shape itself (independent of time) would change. In other words, these are all good parameters for tuning.
💮 8. Interpreting the Flux for trading signals
Lastly, the Signal Flux gives buy and sell signals when it crosses the upper/lower thresholds (UT/LT) This can be visualised with the triangles as you may have seen in the charts in the previous sections. For people using TradingView's alerts -- these would work out of the box. And finally, for backtesting and possibly trade automation, we will have the GYTS "🎼 Order Orchestrator" that connects with the Flux Composer.
🌸 ------ 4️⃣ --- LIMITATIONS --- 4️⃣ ------ 🌸
Only 🌸 GYTS 📡 Signal Providers are supported, as there is a specific method to pass continuous (non-binary) data in the data stream
At the moment of release, only WaveTrend 4D with GDM and with QMC are available. Other Signal Providers will be gradually released.
Trend Direction Sequence | Auto-Multi-TimeframeThe main benefit of this indicator is the ability to see multiple higher timeframes at ones to get a better overview of signals that could mark possible trend reversals with more weight than those on the selected timeframe. Since the higher timeframes are calculated automatically, the user needs to set a Period Multiplier that multiplies the selected timeframe several times to determine the higher timeframes. Equal periods are filtered out. And the current highest timeframe is capped at 1 year by TradingView.
It is possible to alter the sequence Count Limit and the underlying Wavelength. The Wavelength defines the distance between the starting and ending candle. This builds the minimum condition to find a trend. A longer Wavelength means that the distortions between the start and end candle can be bigger, so it can become easier to find a trending sequence. But be careful not to set the length too high as this could mean that the resulting sequence does not really represent a trend anymore. The Count Limit defines the completion of a trending sequence. A higher number makes it more difficult to find a completed sequence, but also makes the result more reliable. If the Wavelength is changed, the Count Limit should be adjusted accordingly.
There is also a qualifier for the completion of a sequence. A completed sequence only will be labeled on the chart, if it is proved that the lowest low/highest high of the last two candlesticks of a period is lower/higher than that of the previous two candlesticks. It does not require the trend to be continuous on the last candlestick. On the contrary, a trend shift may already have begun.
By default, the labeling of completed sequences will appear on the highs and lows of the specific periods. Because the higher periods will take time and several candlesticks to appear, the labels will be redrawn accordingly. As an option it is possible to disable the Count Limit for completed sequences so that the labels will be fluently redrawn until the corresponding sequences are interrupted by trend breaks. Only activate this option, if it can serve a plausible strategy.
The count status of all sequences in the specific timeframe periods is listed in a table. Also the results of the trends in higher timeframes are accumulated and combined into an overall trend. Positive trends are counted as positive, negative in the opposite case. To see the resulting Trend Shift Signals, the user can set a filter under 100% so that not all of them will be filtered out and therefore labeled on the chart (this signals cannot be redrawn). An “External Indicator Analysis Overlay” can be used to analyze the profitability with the provided Trend Shift Signal (TSS) which switches from 0 to 1, if the trend becomes positive or from 0 to -1, if the trend becomes negative.
DB MACD TTM SQZ HistogramDB MACD TTM SQZ Histogram
What does the indicator do?
The DB MACD TTM SQZ Histogram combines the MACD with the TTM Squeeze into a single histogram. Traders may use the "Multiplier" settings to weight MACD vs. TTM SQZ. The MACD will default have a multiplier value of 2 vs. 1 for TTM SQZ. The reasoning behind the default 2:1 multiplier is to allow the faster MACD to have a strong hand in the histogram. In addition to the histogram, the indicator will display a red dot when a BB/KC squeeze (TTM SQZ) is present. The TTM SQZ uses a length of 20, BB m-factor of 2, and KC m-factor of 1.5 to match the "Mastering the Trade" squeeze. The histogram is calculated by taking the MACD histogram and the TTM SQZ histogram and first standardizing them into reasonable decimal percentages. Once standardized, each decimal percentage is then multiplied by the individual multiplier. Finally, the two values are summed into the combined histogram value. The end result is a standardized weighted combination of the MACD (faster) with the TTM SQZ (slower) histogram.
How should this indicator be used?
The DB ETHUSD MMA Indicator should be combined with other indicators as a secondary visual indicator or market buy/sell periods. The indicator is not meant to replace the MACD or TTM SQZ. Analyzing the MACD and TTM SQZ wave patterns individually is extremely useful. The indicator allows the trader to quickly obtain a combined analysis of the two indicators with a predetermined preference (multiplier) towards one vs. the other.
In other words, the indicator is very helpful when the MACD and TTM SQZ are conflicting in providing market direction. Those familiar with MACD or TTM SQZ histograms recognize there are four periods in the full cycle; growing below zero line, growing above zero line, falling above zero line, and falling below zero line. Typically a trader would look for buying opportunities when the cycle is showing "growing below zero line." and sell when the price reaches the "falling above zero line." The qualification of the wave pattern of the four periods must be reviewed before trades. If the wave is choppy, then alternative timeframes should be reviewed. Think of wake on a lake or ocean waves. Choppy is unpredictable but smooth waves are more predictable.
The red dot on the zero line would indicate that a squeeze is present in the current timeframe, building pressure. The red dot does not indicate a pressure release of up or down. Instead, it simply means the spring is being compressed. When a squeeze is present, pressure builds and may release in either direction. You can combine this indicator with BB and KC on the plot with BB (20 len, 2 m-factor) and KC (20 len, 1.5 m-factor). You can review the BB/KC outer bands to see possible breakout resistance or support when a squeeze is on. If the price is outside the BB/KC outer banks, move to a higher timeframe.
Does the indicator include any alerts?
Not Yet. Perhaps in the Future (If Desired)
Enjoy!
MME NimblrTA Setup v1.0Hi All,
This is a Candlestick template script to be used for identifying momentum and waves.
There are only 2 types of candles - Momentum Candles ( MC - Body height >= 50%) and Indecision Candles ( IC ).
ICs are further separated as Tiny Beast based on NimblrTAs, Candle height ratio compared to certain % Open price of the day. The % varies based on TF of the chart.
Green and Red are MCs .
IC is colored white
Tiny Beast based on Candle height is colored blue.
Tiny Beast based on Candle height + Body Height is marked $.
This setup is used to identify Waves (ascending waves, descending waves, binets, reverse binets etc) - Per Line chart, Zig Zag .
Intraday EMA setup - 5, 13, 34 is used for EMA alignment
Investment EMA setup - 5, 21, 55 is used for EMA alignment.
PSAR 0.01 setting is normally used for trailing / to check ascending or descending wave at high level.
PSAR 0.005 is additionally added to check for follow-up of move. So when PSAR 0.01 is broken, expect PSAR 0.005 to be broken. That can be a scalping target or confirmation of capturing the right trend.
This setup is used for Intraday as well as Investments. The settings have been defaulted for Intraday setup.
Honey CypherHoney Cypher Aims to do 4 things
Momentum
Trend Strength
Overbought and oversold zones
Being the most beautiful indicator you ever see
Momentum
The big yellow honey waves primary use is to see the momentum of the market, they can be used in a similar way you would use a MACD or Chaikin Money Flow
On this image you see the honey waves being plotted to the 30 minute timeframe while on the 5 minute chart to have an understanding of longer time momentum in the chart.
Trend Strength
Most tools of the indicator can be used for that but the yellow and purple slope strength lines are made specificaly for this. When you see them curl down you know trend is strengthening towards the downside.
The candle color is based on the amount of Honey waves sloping in one direction. This might be the best tool in the indicator to find Trend Strength. Bright yellow candles mean strong bears while the bright blue candles mean strong bulls.
Overbought and oversold zones
By analysing the waves on a chart you start to learn how big waves can get before a reversal or consolidation period arrives.
You can become profitable with the indicator. But to be honest, my primary focus in making this indicator was find ways to visualise alot of data in a clear and beautiful way.
You should use the indicator with some out of the box ideas instead of just trusting the signals.
examples:
Find a head and shoulders pattern on the top of a huge honey wave.
Find a bottom small wave while the others honey waves are in the opposite direction for entering a pullback.
Use the honey for direction but the yellow and purple slope line crosses for entrys.
Comment your own strategys, I made this open source to be able to get community feedback.
The Honey Cypher waves are calculated in a similar way as the MACD histogram. I've combined MACD formula with some of the lazybear formula. It looks for the distance between 2 moving averages to find trend strength. After that the end results get's smoothed out. It is very satisfying to change that as you can see the honey waves create a melting like motion on each change of smoothing.
Below a preview of the honey cypher moving average lines, all lines have a length that is based on the fibonacci number sequence. Honey cypher measures the distance between for example length 5-8 averages.
I hope this inspires coders to create very beautiful scripts.
MktCurves‴ | Market Curves‴What does it do?
Imagin being able to watch the money flow between markets and figure out when it's time to make your own move. This is what this my proposal and this is what the Market Curves (MktCurves) indicator is all about!
You are able to see the money flowing into Core Commodities, T-Bonds (2, 5, 10, 20 and 30 years), High Yield Corporate Bonds, Gold, Silver, Bitcoin and Dollar.
Don't let the big guys get you off guard, know their moves and move with them.
How does it work?
By analysing the current curve data it is possible to notice that one or more of the curves start an up trend while others move sideway or a down trend, this is how you can have a guess where the smart money is moving from and to.
Curves available:
. Core Commodities
. T-Bond 2 Years
. T-Bond 5 Years
. T-Bond 10 Years
. T-Bond 20 Years
. T-Bond 30 years
. High Yield Corporate Bonds
. Gold
. Silver
. Bitcoin
. Dollar
What's my filling?
I'm still testing this indicator for only a week and so far still trying to understand its signs. I'm using it in conjunction with Volume Wave (VolWave) and Price Spread Wave (PSWave).
What does it do?
This indicator allows you to identify possible asset top and bottom reversals by having a prior Volatility acting among the price movement with a sequential positive (top reversal) or negative (bottom reversal) waves.
How does it work?
Everytime the wave starts showing a curved top movement (ascending price movment) or a curved bottom movement (descending price movment), it might be signing that a price reversal is on its way. It is possible to adjust the wave shape by increasing/decreasing its gradient value analysis, but it's so easy to use that most of the times no reconfiguration is needed, just add it and let it guide you.
Important to mention that the positive wave band, histogram bars and moving average line are calculate totally separete from the the negative wave.
What's my filling?
It definitely gives me a great insight into the smart money moves, which gives me the confidence to make my own moves.
To have access to this indicator,
Please DM me.
Don't contact me in the comment area.
MJ ECT== One Line Introduction ==
ECT is a multi-level, trend focused technical indicator based on a three-step hierarchical approach - comprising the tide, wave, and ripple - to trend identification.
== Indicator Philosophy ==
The author believes that market trends can be understood in a three-step hierarchy, with tide at the top, wave in the middle, and ripple at the bottom, corresponding to long-, middle-, and short-term momentum in the stock price. This indicator therefore comprises three technical indicators which aims to reflect the abovementioned features of a trend. These three components are True Strength Index (TSI), Exponential Moving Averages ( EMA ), and Commodity Channel Index ( CCI ).
== Indicator Components and Breakdown ==
True Strength Index (TSI) -> Tide
A 20-period TSI is used to visualize the bullish or bearish sentiment surrounding the stock. Crossovers above the zero line are interpreted as bullish while crossovers below the zero line are interpreted as bearish . This is painted into the background where green represents bullish and red represents bearish . While the background is red ( bearish ), no bullish positions should be taken. Hence, the TSI painted background acts as a directional bias filter and going against the bias is not recommended. After understanding the directional bias, the user can delve further into the areas of value for the stock in the Wave.
Exponential Moving Averages ( EMA ) -> Wave
Four EMA are used (20, 50, 100, 200) to identify the dynamic support and resistance waves in a trending market. Stock price pullbacks into any of these EMA represent areas of value where the user can consider taking positions. The correct EMA to use depends on individual stock's behavior, with multiple bounces on a specified EMA being the priority. After understanding which wave best reflects the area of value of a stock, the user can move on to the Ripple to time their entries.
Commodity Channel Index ( CCI ) -> Ripple
A 5-period CCI is used to identify short-term oversold conditions where prices are on discount. Discount is defined by the 5-period CCI crossing below -100 as it reflects a weekly oversold condition. The indicator will display a small triangle below the candle when this condition is met.
== Ready To Deploy Field Manual ==
When background is painted red, do nothing.
When background is painted green, begin thinking of bullish opportunities.
Look for the specific EMA that has the most bounces of stock price in recent months, this is the area of value to look for buying opportunity.
For the candles that intersect the EMA you identified above, watch for the appearance of a small triangle below the candle that tells you the entry timing.
When the entry timing signal triangle appears, remember the High of that candle and buy your position when the subsequent candle breaks above this High.
If the High is not broken above in the next immediate candle, remember the newer High of the newer candle (basically follow / trail the latest High until a break above is hit).
If the background turns from green to red, stop following the High and do not enter because the market sentiment has changed to bearish .
If you are holding an existing position and the background turns red, consider exiting the position. You may consider remembering the Low of the candle and exit your position if this Low is broken below on a subsequent candle.
== Best Wishes ==
The author wishes the best success for all users of this technical indicator.
MFI Pro By CryptoScriptsWelcome to the MFI Pro! This indicator uses the Money Flow Index and overlays two EMAs along with different 'under' levels for the buy triggers. It uses the 14 EMA2 length for the white line and the 5 EMA3 length for the waves. The red shaded 'sell' signal is triggered whenever the MFI climbs above the 80 level and the green shaded 'buy' signal is triggered whenever the MFI dips below the 30 level. A couple ways to use this indicator is wait until the MFI crosses above the 14 EMA for buy signals or below it for sell signals. You can also wait for the waves to cross above or below the 50 line (if it crosses above the 50, buy, if below then sell). Another way to use it is wait until the EMA3 wave crosses above the EMA2 white line for buy signal or if it crosses below the white line for a sell signal. You can also adjust the settings of the overbought and oversold levels which will change your buy/sell signals or change the length of the waves to your liking.
As you can see, there are various ways to use this indicator so please test it out and find what works best for you :) Let me know if you have any questions and thanks for following!
Pragmatic risk managementINTRO
The indicator is calculating multiple moving averages on the value of price change %. It then combines the normalized (via arctan function) values into a single normalized value (via simple average).
The total error from the center of gravity and the angle in which the error is accumulating represented by 4 waves:
BLUE = Good for chance for price to go up
GREEN = Good chance for price to continue going up
ORANGE = Good chance for price to go down
RED = Good chance for price to continue going down
A full cycle of ORANGE\RED\BLUE\GREEN colors will ideally lead to the exact same cycle, if not, try to understand why.
NOTICE-
This indicator is calculating large time-windows so It can be heavy on your device. Tested on PC browser only.
My visual setup:
1. Add two indicators on-top of each other and merge their scales (It will help out later).
2. Zoom out price chart to see the maximum possible data.
3. Set different colors for both indicators for simple visual seperation.
4. Choose 2 different values, one as high as possible and one as low as possible.
(Possible - the indicator remains effective at distinguishing the cycle).
Manual calibration:
0. Select a fixed chart resolution (2H resolution minimum recommended).
1. Change the "mul2" parameter in ranges between 4-15 .
2. Observe the "Turning points" of price movement. (Typically when RED\GREEN are about to switch.)
2. Perform a segmentation of time slices and find cycles. No need to be exact!
3. Draw a square on price movement at place and color as the dominant wave currently inside the indicator.
This procedure should lead to a full price segmentation with easier anchoring.
[blackcat] L2 Ehlers Autocorrelation IndicatorLevel: 2
Background
John F. Ehlers introduced Autocorrelation Indicator in his "Cycle Analytics for Traders" chapter 8 on 2013.
Function
If we correlate a waveform composed of perfectly random numbers by itself, the correlation will be perfect. However, if we lag one of the data streams by just one bar, the correlation will be dramatically reduced. In a long memory process with normally distributed random numbers the autocorrelation follows the power law.
One of the underlying principles of technical analysis is that market data do not follow this power law of an efficient market, and we therefore can extract information from the partial correlation of the autocorrelation function. For example, assume the data being examined is a perfect sine wave whose period is 20 bars. The autocorrelation with zero lag, averaged over one full period of the sine wave, is unity. That is, the correlation is perfect. Introducing a lag of one bar in the autocorrelation process causes the average correlation to be decreased slightly. Introducing another bar of lag further decreases the average correlation, and so on. That is, until a lag of 10 bars is reached. In this case, the positive alternation of the sine wave is correlated with the negative alternation of the lagged waveform and the negative alternation of the sine wave is correlated with the positive alternation of the lagged waveform, with the result that perfect anticorrelation has been reached. Continued lag increases causes the average correlation to increase until a lag of 20 bars is reached. When the lag is equal to the period of the sine wave waveform, the correlation is again perfect. In this theoretical example, the correlation values as a function of lag vary exactly as a sine wave.
Market data are considerably messier than purely random numbers or perfect sine waves but contain features of both. However, the characteristics that are uncovered by autocorrelation offer unique trading perspectives. Aside from appearing psychedelic, there are two distinct characteristics of the autocorrelation indicator using minimum averaging. First, there is a sharp reversal from red to yellow and from yellow to red at the timing of price reversals for all periods of lag. Second, there is a variation of the thickness of the bars and the number of bars over the vertical range of the indicator as a function of time.
Key Signal
Corr --> Pearson correlation data array
Pros and Cons
I am sorry this script is NOT 100% as original Ehlers works but I modified it accordingly which demostrated with better visual effect.
Remarks
The 47th script for Blackcat1402 John F. Ehlers Week publication.
Courtesy of @RicardoSantos for RGB functions.
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
Momentum ArrowsThis simple indicators paints the Momentum based on Stochastic, RSI or WaveTrend onto the Price Chart by showing Green or Red arrows.
In the settings it can be selected which indicator is used, Stochastic is selected by default.
Length of the arrows is determined by the strength of the momentum:
Stochastic: Difference between D and K
RSI: Difference from RSI-50
WaveTrend: Difference between the Waves
(Thanks to @LazyBear for the WaveTrend inspiration)
PS:
If anyone has an idea how to conditionally change the color of the arrows, then please let me know - that would be the icing on the cake. Then it would be possible to indicate Overbought/Oversold levels with different colors.
Unfortunately it currently seems not to be possible to dynamically change the arrow colour.
WWV_LB pivotfix histogram jayy
This is a modification of LazyBear's WWV_LB which plots cumulative volume of waves. The reversal points are defined through relative closing prices. I made adjustments to the script to show waves turning on actual/true low or high pivots as opposed to the bar/candle identified in the LazyBear script. What I mean by that is that the actual/true low or high pivots are in fact the true WWV_LB pivots. The original WWV_LB script calculates cumulative volume from reversal confirmation bar to reversal confirmation bar as opposed to the true WWV_LB pivot bar to pivot bar. As such the waves can have slightly different start and end points. As such the cumulative volume can also be different from te WWV_LB script. This is because confirmation of a wave reversal can lag a few bars after the true reversal pivot bar. In the script notes, you will see the original key WWV_LB script lines that identify the true high or low pivots and confirm the wave direction has reversed. I have taken these lines from LazyBear's original script. I have included the LazyBear script within the script notes so that the original can be compared to what I have added/changed. Instead of "trendDetectionLength" I have inserted "Trend Detection Length". You can of course change the descriptor to what you wish by editing script line 33 to the original term or whatever you wish. You might also wish to set the default to the value "2" as per the original script. I have set the default to "3". This script should be used in conjunction with "WWV-LB zigzag pivot fix jayy" script which is shown on this screen for comparison.
Here is a link to the original LazyBear histogram script which can be used for comparison. The differences are subtle, however, the histograms will regularly be different by a bar or two:
The lowest panel has the original LazyBear WWV_LB script for comparison. All three scripts have been set to a Trend Detection Length of 3.jayy
Vegas tunnelHi all,
This is the first step in putting together a more comprehensive suite of indicators and strategies based around the original Vegas tunnel method.
You will need to know what that is before trying to use this indicator. I would implore you to take the time to read the document. It's free to the universe and is a very valuable piece of work in my opinion.
Here is the link to the original documentation dl.fxf1.com
This indicator is set up to use the original levels as described by Vegas. Future releases will allow for more custom levels.
A note on the target waves. Vegas gives us the levels of 55, 89 and 233...all in FX pips. You will need to adjust that for your instrument and it is your personal preference. If you are using BTC , you might use $55, $89 etc, for ETH $5.50, $8.90 etc, for S+P 55, 89, 233 or for FX, the number might be 0.0055 etc
The indicator has been left blank so you can fill the target waves in yourself.
A note on the templates
The original template is simply as Vegas described it in his document, change it as you wish
The TD template comes from where I first was introduced to the concept. I can't mention the full source here, but some of you will know to what I am referring to. A massive thanks to TD for all the material they have provided the world.
The HH (Hero Hedge) template is just my way of looking at the wave. It's green when the faster MA is above the slower MA and red for the opposite. It doesn't really mean much, it's just a visual reference. Perhaps you can use it to filter signals if you so wish.
Finally, some of you may notice that I am an amateur coder at best. If you think you can improve or tidy up the code, then by all means, please reach out and collaborate with me.
I am trying to produce something to the benefit of all. I hope this can help you. If it does, then please pay it forward as I am trying to do.
Hero Hedge.
Vegas tunnelHi all,
This is the first step in putting together a more comprehensive suite of indicators and strategies based around the original Vegas tunnel method.
You will need to know what that is before trying to use this indicator. I would implore you to take the time to read the document. It's free to the universe and is a very valuable piece of work in my opinion.
Here is the link to the original documentation dl.fxf1.com
This indicator is set up to use the original levels as described by Vegas. Future releases will allow for more custom levels.
A note on the target waves. Vegas gives us the levels of 55, 89 and 233...all in FX pips. You will need to adjust that for your instrument and it is your personal preference. If you are using BTC , you might use $55, $89 etc, for ETH $5.50, $8.90 etc, for S+P 55, 89, 233 or for FX, the number might be 0.0055 etc
The indicator has been left blank so you can fill the target waves in yourself.
A note on the templates
The original template is simply as Vegas described it in his document, change it as you wish
The TD template comes from where I first was introduced to the concept. I can't mention the full source here, but some of you will know to what I am referring to. A massive thanks to TD for all the material they have provided the world.
The HH (Hero Hedge) template is just my way of looking at the wave. It's green when the faster MA is above the slower MA and red for the opposite. It doesn't really mean much, it's just a visual reference. Perhaps you can use it to filter signals if you so wish.
Finally, some of you may notice that I am an amateur coder at best. If you think you can improve or tidy up the code, then by all means, please reach out and collaborate with me.
I am trying to produce something to the benefit of all. I hope this can help you. If it does, then please pay it forward as I am trying to do.
Hero Hedge.
DELTA7 HistogramDELTA7 Histogram is placement of the DELTA7 core functionality script into a centered oscilator show up 3-layered waves.
(this is not a signal bot. It's meant for analysis as toolkit for DELTA7 Suit traders)
Each wave are the reperesentation of the DELTA7 on-chart overlay trends plotted into a centered oscilator.
The Delta Lead is ploted as the baseline and the difference between Delta Lead, Delta-Price and Price Average from each wave.
This indicator will allow the trader/analyst to make observations around how extended are the trends against each other as well as serving as basis for divergence and trendline studies plotted manually by the analyst. The oscilator turn green/red (default color-scheme) as observable the main chart overlay.
This offer a horizontal plotted view of the same on-chart DELTA7 trends while making divergences or hyperbolic rallies more evident.
It also has the same DELTA7 scoring ploted into the baseline that match the default settings on DELTA7 ot alternatively user chan check in options for one of the available 7 scorings.
Furthermore, script has 7 available color-scheme themes (4 for dark background and 3 for light backgrounds)
DELTA7:
DELTA7 RSI :
This script is optional and meant to be used in combo with DELTA7 Suit main scripts.
Traders interested in this suit need to get in touch via DM or contact provided in signture.
MarketDecryptor BThis is a private indicator available to MarketDecryptor members.
Purple wave : Momentum slow wave
Light blue wave: Momentum fast wave
Yellow/Red line: VWAP oscillator
Orange/Gray wave: Directional strength indicator
Green dot: Bullish cross
Red Dot: Bearish cross
DR + Fibonacci Zones — 🔵 Bullish Scenario -- 🔴 Bearish ScenarioElliott + Fibonacci Zones — 🔵 Bullish Scenario & 🔴 Bearish Scenario
A visual tool that combines Elliott Waves and Fibonacci levels to help traders map out potential market scenarios.
✦ Features:
Manual plotting of Elliott Waves (1→5) using customizable highs and lows.
Display of classic Fibonacci retracements (0.236 – 0.382 – 0.5 – 0.618 – 0.786) with individual on/off controls.
Display of Fibonacci extensions (1.272 – 1.618) to project possible Wave (5) targets.
Full customization options:
• Line styles (Solid / Dashed / Dotted).
• Line extension (Left / Right / Both / None).
• Label background colors with adjustable transparency.
• Custom text color for labels.
Flexible inputs to adjust wave points according to your own market analysis.
✦ How to Use:
Set the wave levels (Wave 1–4) in the input panel.
Enable or disable Fibonacci levels as needed.
Watch the key retracement and extension areas:
🔵 Bullish scenario: Wave (5) continuation after breaking resistance.
🔴 Bearish scenario: Support failure and breakdown through critical retracement zones.
✦ Benefit:
This indicator provides a clear visual roadmap of critical support and resistance zones, combining Elliott Wave structure with Fibonacci confluence to anticipate potential reversals or price extensions.
Sniper-2025 Sniper-2025 Indicator Explanation
Overview
The Sniper-2025 indicator is a versatile technical analysis tool designed for TradingView, combining a Hyper Wave oscillator, Smart Money Flow analysis, divergence detection, reversal signals, confluence visualization, and a machine learning-based k-Nearest Neighbors (k-NN) prediction model. It provides traders with actionable buy and sell signals, trend insights, and confluence indicators to enhance decision-making across various trading strategies. The indicator is highly customizable, allowing users to adjust sensitivity, colors, and display options to suit their preferences.
Key Features
1. Hyper Wave Oscillator: A normalized oscillator based on price data, smoothed with either a Simple Moving Average (SMA) or Exponential Moving Average (EMA), highlighting momentum and potential reversal points.
2. Smart Money Flow: Tracks bullish and bearish money flow using a smoothed Money Flow Index (MFI), providing insights into market strength and direction.
3. Divergence Detection: Identifies bullish and bearish divergences between price and the oscillator, with optional labels displaying price levels.
4. Reversal Signals: Detects major and minor reversal conditions based on volume, oscillator values, and RSI, visualized as triangles and circles on the chart.
5. Confluence Meter and Areas: Visualizes alignment between the oscillator and MFI, indicating bullish or bearish confluence with customizable colors and shaded areas.
6. Signal and Divergence Labels: Displays labels for key oscillator levels (e.g., Z-Buy, Z-V-Sell) and money flow conditions (e.g., C-Buy, T-Sell) with customizable visibility and sizes.
7. Trend and Control Table: Shows the current trend (Bullish/Bearish) and control (Bull/Bear) in a customizable table positioned on the chart.
8. k-NN Prediction: Uses a k-Nearest Neighbors algorithm to predict price movement direction based on RSI indicators, with adjustable prediction sensitivity.
9. Gradient Fills and Alerts: Visualizes overbought and oversold zones with gradient fills and provides alert conditions for key crossovers and crossunders.
How It Works
- Hyper Wave Oscillator: The oscillator is calculated by normalizing the close price relative to the highest, lowest, and average prices over a user-defined length (default: 15). It is smoothed using SMA or EMA (default: SMA, length 3) to generate a signal line. Crossovers and crossunders of the oscillator and signal line are plotted as circles, indicating potential buy or sell signals.
- Smart Money Flow: The MFI is calculated over a user-defined length (default: 10) and smoothed (default: 6). It tracks bullish (positive) or bearish (negative) money flow, with colors changing based on direction (blue for bullish, red for bearish). The indicator compares current MFI to its historical average to identify strong trends.
- Divergence Detection: The script identifies divergences by comparing oscillator peaks/troughs with price highs/lows. Bullish divergences (price makes lower lows, oscillator does not) and bearish divergences (price makes higher highs, oscillator does not) are plotted as lines, with optional labels showing the divergence type and price.
- Reversal Signals: Major reversals are detected when volume exceeds a threshold (based on a 7-period SMA and reversal factor, default: 4) and the oscillator exceeds ±4. Minor reversals consider RSI (±20) and oscillator crossovers. Signals are plotted as triangles (major) or circles (minor), with blue for bullish and red for bearish.
- Confluence Meter and Areas: The confluence meter, displayed on the right, shows alignment between the oscillator and MFI using a gradient from red (bearish) to blue (bullish). Shaded areas at ±55 highlight strong bullish or bearish confluence when both indicators align.
- Signal and Divergence Labels: Labels are plotted on the candlestick chart when the oscillator crosses key levels (±20, ±40) or when money flow conditions are met (e.g., MFI crossing 0 or ±20/±40). Users can toggle label visibility and adjust sizes (Small, Normal, Large, Huge).
- Trend and Control Table: A table displays the trend (based on oscillator SMA) and control (based on MFI direction), with customizable position (default: Top Right), text color, and background color. Sensitivity for trend and control calculations can be adjusted.
- k-NN Prediction: The k-NN algorithm predicts price movement direction by comparing current RSI values (5-period and 20-period WMAs) to historical data. The number of neighbors (default: 200) and trend length (default: 20) control prediction sensitivity. A green line shows the prediction, with gradient fills indicating overbought (lime) and oversold (red) zones.
- Gradient Fills and Alerts: Gradient fills highlight the prediction's position relative to overbought/oversold zones, calculated using a 2000-period lookback and standard deviation. Alerts are triggered for crossovers/crossunders of the prediction line with its WMA, overbought/oversold levels, or the zero line.
Usage Instructions
1. Add the Sniper-2025 indicator to your TradingView chart.
2. Interpret signals:
- Z-Buy/Z-V-Buy (green labels): Potential buy signals when the oscillator crosses below -20/-40.
- Z-Sell/Z-V-Sell (red labels): Potential sell signals when the oscillator crosses above 20/40.
- C-Buy/C-Sell (green/red labels): Money flow shifts to bullish/bearish when MFI crosses 0.
- T-Buy/T-Sell (green/red labels): Money flow crosses ±20, indicating stronger trends.
- T-V-Buy/T-V-Sell (green/red labels): Money flow crosses ±40, indicating very strong trends.
- Divergence Labels: Green (D-Bullish) or red (D-Bearish) labels indicate potential reversals.
- Reversal Signals: Blue triangles/circles for bullish reversals, red for bearish.
- Confluence Meter: Blue (bullish) or red (bearish) gradient indicates alignment strength.
- Table: Check "Trend" and "Control" for market direction (🟩/🟥 for trend, 🟢/🔴 for control).
- k-NN Prediction: Green line above 0 suggests bullish momentum; below 0 suggests bearish. Watch for crossovers with the WMA or overbought/oversold zones.
3. Set alerts for crossovers/crossunders of the prediction line, oscillator, or MFI to automate trading signals.
Customization Options
- Hyper Wave: Adjust Main Length (mL, default: 15) for oscillator sensitivity, Signal Type (sT, SMA/EMA), and Signal Length (sLHW, default: 3). Customize colors and transparency.
- Smart Money Flow: Set Money Flow Length (mfL, default: 10) and Smooth (mfS, default: 6) for MFI sensitivity. Choose bullish/bearish colors.
- Divergence: Modify Divergence Sensibility (dvT, default: 20) for short-term (lower) or long-term (higher) divergences. Toggle visibility and price display on labels.
- Reversal: Adjust Reversal Factor (rsF, default: 4) for signal strength (higher = fewer, stronger signals). Set colors for bullish/bearish signals.
- Confluence: Toggle Confluence Meter (sCNF) and Areas (sCNB), and customize colors.
- Labels: Enable/disable specific signal labels (e.g., showZBuy, showHSell) and adjust Label Size (default: Normal).
- Table: Toggle Trend and Control display, adjust sensitivities, and set position and colors.
- k-NN Prediction: Adjust Prediction Data (numNeighbors, default: 200) for sensitivity and Trend Length (momentumWindow, default: 20) for responsiveness.
Conclusion
The Sniper-2025 indicator is a powerful tool for traders seeking a comprehensive analysis of price momentum, money flow, divergences, reversals, and predictive signals. Its customizable settings and clear visualizations make it suitable for both novice and experienced traders. Use the indicator to identify high-probability trading opportunities, monitor market trends, and refine strategies with its machine learning-driven predictions.
