This indicator, "Entry Tool," was coded at request for Sandmann. It is designed to provide traders with real-time feedback for strategizing entries, exits, and liquidation levels for trades initiated at that given moment.
The tool visualizes average entry prices, stop-loss levels, multiple take-profit targets, and potential liquidation prices, offering a comprehensive overview of possible trade outcomes. It aids traders in pre-planning their trades by visually simulating the impact of different trading decisions directly on the live chart. Each setting and parameter can be customized to align with individual trading strategies and risk tolerances, making this tool versatile for various trading styles, including day trading, swing trading, and position trading.
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Steps to Use the Indicator: 1. Basic Setup: Setup Type: Choose between "Long" or "Short" to set the direction of the trade. Leverage: Adjust the leverage to understand its impact on your potential returns and liquidation price. Tracking follows the close price, alternative you can enter a specific price.
2. Position Setup: Initial Entry Amount: Set the starting amount for the trade.
Distance: First Increment Percentage from Entry price Amount: Define the increase for the first incremental addition to the position and specify the amount to be added.
Distance: Second Increment Percentage from Entry Amount: Set the increase for the second incremental addition and the corresponding amount.
3. Risk Management: Stop-Loss (SL) Percentage: Set the percentage below or above the average entry price at which the position should be closed to minimize losses. Take-Profit (TP) Percentages: Define up to four different profit target levels by specifying the percentage above or below the average entry price.
4. Visual Settings: Box Colors: Customize the colors of the boxes that represent long and short positions to differentiate easily on the chart. Box Extension: Determine the length by which the box extends beyond the current bar, which helps in visualizing the potential price movement. Line Colors and Extensions: Select colors for various lines such as the Average Entry Line, Stop-Loss Line, Take-Profit Lines, and Liquidations Line. Adjust the length of these lines for better visibility. Label Settings: Configure the distance of labels from their corresponding lines and set the font size for better readability.
5. Additional Features: Liquidation Price Visualization: This new feature calculates and displays the liquidation price based on the current leverage and margin settings, giving traders a critical insight into their risk exposure. Interactive Drag Point: Adjust the start price manually by dragging the point on the chart, which dynamically updates entry and exit levels as well as risk metrics. Detailed Leverage Data Array: Input different scenarios with specific leverage, initial margin, and maintenance rates to see how these factors impact potential liquidation points.
6. Informations about leverage calculation The data used are fetched from Bybit for Linear pairs to calculate the liquidations like in their documentation. Keep in mind that other exchanges may calulate based on another formular.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.