OPEN-SOURCE SCRIPT
Pivot Points + Day First Candle Breakout + VWAP + Supertrend
Updated
This indicator amalgamates several key indicators to provide a comprehensive analysis for trading decisions, including SuperTrend, Pivot Points, VWAP, along with the Day First Candle Breakout strategy.
Key Features:
Day First Candle Breakout: Identifies potential breakout opportunities based on the first candle of the trading day. It utilizes the high and low of the initial trading range to determine entry points.
Timeframe Selection: Allows users to select the timeframe for analyzing the first candle (e.g., 5, 15, or 60 minutes).
Previous Day and Week High/Low: Displays the high and low of the previous day and week to provide additional context for trading decisions and assess the strength of the trend.
Trend Strength Analysis: Indicates whether the current price is above or below the previous day's high or low, signaling a stronger bullish or bearish trend respectively.
SuperTrend Indicator: Visualizes the trend direction and potential reversal points based on the SuperTrend indicator. It helps traders to stay aligned with the prevailing trend and avoid premature exits.
Pivot Points: Presents key support and resistance levels derived from Pivot Points, assisting traders in identifying potential reversal or breakout zones.
VWAP (Volume Weighted Average Price): Plots VWAP to provide insight into the average price traded over a given period, aiding in determining the fair value of the asset and potential buying/selling zones.
Trading Signals:
Buy Signal: Triggered when the price exceeds the high of the initial trading range after an upward price gap.
Sell Signal: Generated when the price falls below the low of the initial trading range after a downward price gap.
Caveats for Effective Trading:
Extended Trading Ranges: Adjusts support and resistance levels if the initial trading range extends beyond the defined timeframe.
Morning Noise Consideration: Exercises caution during volatile morning sessions to avoid false breakouts and whipsaws.
Pullbacks and Narrow Range Bars: Looks for opportunities during pullbacks or when the price forms narrow range bars to enter trades, reducing the risk of sudden reversals.
Key Features:
Day First Candle Breakout: Identifies potential breakout opportunities based on the first candle of the trading day. It utilizes the high and low of the initial trading range to determine entry points.
Timeframe Selection: Allows users to select the timeframe for analyzing the first candle (e.g., 5, 15, or 60 minutes).
Previous Day and Week High/Low: Displays the high and low of the previous day and week to provide additional context for trading decisions and assess the strength of the trend.
Trend Strength Analysis: Indicates whether the current price is above or below the previous day's high or low, signaling a stronger bullish or bearish trend respectively.
SuperTrend Indicator: Visualizes the trend direction and potential reversal points based on the SuperTrend indicator. It helps traders to stay aligned with the prevailing trend and avoid premature exits.
Pivot Points: Presents key support and resistance levels derived from Pivot Points, assisting traders in identifying potential reversal or breakout zones.
VWAP (Volume Weighted Average Price): Plots VWAP to provide insight into the average price traded over a given period, aiding in determining the fair value of the asset and potential buying/selling zones.
Trading Signals:
Buy Signal: Triggered when the price exceeds the high of the initial trading range after an upward price gap.
Sell Signal: Generated when the price falls below the low of the initial trading range after a downward price gap.
Caveats for Effective Trading:
Extended Trading Ranges: Adjusts support and resistance levels if the initial trading range extends beyond the defined timeframe.
Morning Noise Consideration: Exercises caution during volatile morning sessions to avoid false breakouts and whipsaws.
Pullbacks and Narrow Range Bars: Looks for opportunities during pullbacks or when the price forms narrow range bars to enter trades, reducing the risk of sudden reversals.
Release Notes
This advanced trading indicator offers a comprehensive toolkit for intraday trading, combining multiple analytical tools to provide precise trading signals and trend analysis.A key feature of this indicator is its focus on the initial trading hour, which studies have shown to be highly effective in identifying significant market movements.
Statistical Analysis
ORB Effectiveness: Studies have demonstrated that 60% to 70% of the day's high and low are established within the first trading hour. This indicates that on these days, the stock may experience limited price movement, making it less likely to produce profitable trades.
Reduced False Signals: By focusing on the 30% to 40% of days when the stock is trending and exhibiting momentum (i.e., when the price breaks out of the initial trading range), our indicator helps reduce the chances of false trades and improve overall accuracy. These days often present more significant price movements, offering greater potential for profitable trades.
Key Features:
Dynamic ORB Calculation: Our indicator employs a refined ORB calculation to provide accurate and reliable entry points.
Multi-Time frame Perspective: By analyzing the ORB across multiple time frames, we capture both short-term and long-term trends, enhancing the reliability of breakout signals.
Comprehensive Technical Analysis: Our indicator combines Fibonacci pivot levels, Supertrend, and multiple EMAs to provide a well-rounded technical analysis.
Visual Insights: Candlestick coloring and other visual cues help traders quickly identify significant price levels and market trends.
Multi-Time frame Trend Analysis: The multi-time frame MACD and RSI table offers a comprehensive view of market trends across various time scales.
VWAP Integration: The Volume Weighted Average Price (VWAP) provides a benchmark for assessing the current trend.
Customizable Settings: Our indicator offers customizable settings to align with your individual trading style and preferences.
Additional Considerations:
Highlight Unique Features:
Bullish Trend Signals: When the LTP is above the ORB, previous day's high, and Supertrend, while RSI and MACD on 1-hour or higher time frames indicate a bullish trend, it signals a potential buy opportunity.
Entry Point: Enter the trade at a pullback level to EMA 9 on the 15-minute time frame.
52-Week High Indication: The color of the candlesticks indicates whether the stock is at a 52-week high.
Focus on Benefits:
Improved Accuracy: The combination of ORB, Supertrend, MACD, and RSI provides a more accurate and reliable approach to identifying trading opportunities.
Enhanced Decision-Making: The multi-time frame analysis and visual cues help traders make informed decisions based on a comprehensive understanding of market conditions.
Increased Profit Potential: By focusing on high-probability setups, the indicator can help traders increase their profit potential.
Release Notes
Opening Range Breakout (ORB) and Supertrend setting updated.1) Checkbox (On/off) to show Percentage Move Between High and Low.
2) Checkbox (On/off) to show the percentage move calculation in Supertrend.
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.
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Disclaimer
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