OPEN-SOURCE SCRIPT

normalize_heatmap

Updated

Description:
This was a simple indicator to indicate the heatmap area of an asset price, in a relative given time period. In default the lookback period was set to 50 bars, indicating the current state of the price within the previous lookback period. The color scheme was using the rainbow palette, which set blue as the cooling-off area, and red as the heating area. The indicator doesn't take into account momentum strategy and thus doesn't consider the future direction of the asset price. Note: cooling-off area, can be considered to entry or adding position as a DCA strategy.

Data Normalize:
norm = (x - min) / (max - min)

Feature:

Heatmap color condition
Weighted Moving average (Additional)

Release Notes

Description:
This was a simple indicator aimed to indicate the heatmap area of an asset price, in a relative given time period. In default the lookback period was set to 50 bars, indicating the current state of the price within the previous lookback period. The color scheme was using the rainbow palette, which set blue as the cooling-off area, while red as the heating area. The indicator doesn't take into account momentum strategy and thus doesn't consider the future direction of the asset price. Note: cooling-off area, can be considered to entry or adding more position as a Dollar Cost Averaging strategy.

Normalize Data:
norm = (x - min) / (max - min)

Feature:

Heatmap color condition
Weighted Moving average (Additional)

Release Notes

updated

Release Notes

adjusting the normalized data into a function, and adding a color scheme (use of rgb function)

Release Notes

Additional switch between moving average type, adding an alert condition on both moving average and normalized threshold

Example of other color schemes
https://www.tradingview.com/x/GDpAy79O/

Release Notes

group adjustment, optional asymmetrical alert condition

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

Want to use this script on a chart?

palitoj_endthen

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