Bands and Channels
Half-Trend Channel [BigBeluga]Half Trend Channel is a powerful trend-following indicator designed to identify trend direction, fakeouts, and potential reversal points. The combination of upper/lower bands, midline coloring, and specific signals makes it ideal for spotting trend continuation and market reversals.
The base of the channel is calculated using smoothed half-trend logic.
// Initialize half trend on the first bar
if barstate.isfirst
hl_t := close
// Update half trend value based on conditions
switch
closeMA < hl_t and highestHigh < hl_t => hl_t := highestHigh
closeMA > hl_t and lowestLow > hl_t => hl_t := lowestLow
=> hl_t := hl_t
// Smooth
float s_hlt = ta.hma(hl_t, len)
🔵 Key Features:
Upper and Lower Bands:
The bands adapt dynamically to market volatility.
Price movements toward the bands help identify areas of overextension and potential reversal points.
Midline Trend Signal:
The midline changes color to reflect the current trend:
Green Midline: Indicates an uptrend.
Purple Midline: Signals a downtrend.
Fakeout Signals ("X"):
"X" markers appear when price briefly breaches the outer bands but fails to sustain the move.
Fakeouts help traders identify areas where price momentum weakens.
Reversal Signals (Triangles):
Triangles (▲ and ▼) mark potential tops and bottoms:
▲ Up Triangles: Suggest a potential bottom and a reversal to the upside.
▼ Down Triangles: Indicate a potential top and a reversal to the downside.
Dynamic Trend Labels:
At the last bar, the indicator displays labels like "Trend Up" or "Trend Dn" , reflecting the current trend direction.
🔵 Usage:
Use the colored midline to determine the overall trend direction.
Monitor "X" fakeout signals to spot failed breakouts or momentum exhaustion near the bands.
Watch for reversal triangles (▲ and ▼) to identify potential trend reversals at tops or bottoms.
Combine the bands and midline signals to confirm trade entries and exits:
Enter long trades when price bounces off the lower band with a green midline.
Consider short trades when price reverses from the upper band with a purple midline.
Use the trend label (e.g., "Trend Up" or "Trend Dn") for quick confirmation of the current market state.
The Half Trend Channel is an essential tool for traders who want to follow trends, avoid fakeouts, and identify reliable tops and bottoms to optimize their trading decisions.
3 Candle Strategy with HighlightIt has a very good accuracy of 70% across any stock or Indices it is very useful to understand the trend reversal easily and tackle the sudden shift of the market very easily
Strategy by Nachi Chennai//@version=5
indicator("EMA Scalping Strategy", overlay=true)
// Input for EMA settings
ema_short = input.int(9, title="Short EMA", minval=1)
ema_medium = input.int(21, title="Medium EMA", minval=1)
ema_long = input.int(50, title="Long EMA", minval=1)
// EMA calculations
shortEMA = ta.ema(close, ema_short)
mediumEMA = ta.ema(close, ema_medium)
longEMA = ta.ema(close, ema_long)
// Input for RSI settings
rsi_length = input.int(14, title="RSI Length", minval=1)
rsi_overbought = input.int(70, title="RSI Overbought Level", minval=50)
rsi_oversold = input.int(30, title="RSI Oversold Level", minval=1)
// RSI calculation
rsi = ta.rsi(close, rsi_length)
// MACD settings
= ta.macd(close, 12, 26, 9)
// Conditions for Buy and Sell
buyCondition = ta.crossover(shortEMA, mediumEMA) and close > longEMA and rsi > 50 and macdLine > signalLine
sellCondition = ta.crossunder(shortEMA, mediumEMA) and close < longEMA and rsi < 50 and macdLine < signalLine
// Plotting EMAs
plot(shortEMA, color=color.new(color.blue, 0), title="Short EMA (9)")
plot(mediumEMA, color=color.new(color.orange, 0), title="Medium EMA (21)")
plot(longEMA, color=color.new(color.red, 0), title="Long EMA (50)")
// Plot Buy and Sell signals
plotshape(series=buyCondition, title="Buy Signal", location=location.belowbar, color=color.new(color.green, 0), style=shape.labelup, text="BUY")
plotshape(series=sellCondition, title="Sell Signal", location=location.abovebar, color=color.new(color.red, 0), style=shape.labeldown, text="SELL")
// Background Highlighting
bgcolor(buyCondition ? color.new(color.green, 90) : na, title="Buy Highlight")
bgcolor(sellCondition ? color.new(color.red, 90) : na, title="Sell Highlight")
$TRUMPT 多空策略分享【$TRUMP多空策略分享】
这是一个结合趋势跟随和波段交易的策略，通过多重技术指标确认入场，配合动态仓位管理和灵活止盈机制。
策略核心逻辑：
入场信号
多头：快速EMA上穿慢速EMA + MACD金叉 + RSI<70
空头：快速EMA下穿慢速EMA + MACD死叉 + RSI>30
风险管理
止损：5%
第一止盈：8%
第二止盈：12%
杠杆：3倍
仓位管理
基于ATR动态调整仓位大小
单笔最大风险控制在5%
最大仓位不超过40%账户权益
回测数据：
净利润：145.37 USDT (14.56%)
交易次数：164次
胜率：39.02%
盈亏比：1.468
最大回撤：84.43 USDT (6.90%)
平均每笔：0.89 USDT
策略特点：
多重指标过滤，提高交易质量
分批止盈，动态调整目标位
完善的风控体系，确保长期稳定
适合波动性较大的币种
注意：回测表现不代表未来收益，请理性对待，严格执行风控。
Moving Average Crossoverchatgpt testing script
New to pine script trading and copied this script from chatgpt and just want to see what it does \.
No idea what the words mean even though i'm a python programmer
Bollinger Bands + RSI + Heikin Ashi Breakout (Naman)Bollinger Bands + RSI + Heikin Ashi Candles (Smooth Breakout Strategy)
Objective:
Filter noise using Heikin Ashi candles to identify clean breakouts.
How It Works:
Bollinger Bands: Indicate breakout direction.
RSI: Confirm momentum (e.g., rising RSI > 50).
Heikin Ashi Candles: Smooth price action for cleaner signals.
Application:
Enter long when Heikin Ashi candles turn green and close above the upper Bollinger Band with RSI > 50.
Exit when Heikin Ashi candles turn red or RSI enters overbought.
sl for pro tradersThis script calculates the Average True Range (ATR) of a financial instrument, which measures market volatility. The ATR value is smoothed using one of four moving average methods chosen by the user: RMA (default), SMA, EMA, or WMA. Here's a breakdown of the functionality:
Inputs:
Length: Determines the period over which the ATR is calculated (default is 14).
Smoothing: Allows the user to select the smoothing method for the ATR from options like RMA, SMA, EMA, or WMA.
Smoothing Logic:
A function ma_function is defined to apply the selected smoothing method (RMA, SMA, EMA, or WMA) to the true range (ta.tr(true)) over the specified length.
Dividing the ATR by 2:
The calculated ATR is divided by 2 before being displayed. This adjustment ensures that if the original ATR value is 10, the script will now output 5.
Plot:
The modified ATR value (original ATR divided by 2) is displayed on a separate panel as a line chart, using a red color (#B71C1C).
Purpose of Update: The division by 2 scales down the ATR values for specific use cases where such an adjustment is desired. This could be for custom strategies or better alignment with other indicators.
RSI Divergence with Bullish CandleKey Concepts in the Script:
RSI Calculation: The RSI is calculated with the user-defined period (rsiLength). The script uses the default 14-period RSI but you can adjust it.
Bullish Divergence:
Price Low: The script checks for the lowest price over the last 20 bars (ta.lowest(close, 20)).
RSI Low: The script checks for the lowest RSI over the same 20 bars.
Divergence Condition: Bullish divergence is identified when the price forms a lower low (priceLow1 < priceLow2), while the RSI forms a higher low (rsiLow1 > rsiLow2), and the RSI is below the oversold level (typically 30).
Bullish Candle Pattern:
A Bullish Engulfing pattern is defined as the current candle closing higher than it opened, and the close being above the previous candle's high.
A Hammer pattern is defined as a candlestick where the close is higher than the open, and the low is the lowest of the last 5 bars.
Buy Signal: The script generates a buy signal when both the bullish divergence and bullish candle are confirmed at the same time.
Donchian Channels + Volume Strategy / Owl of ProfitDonchian Channels + Volume Strategy
This strategy combines Donchian Channels with Volume analysis to identify potential breakout opportunities and confirm them with volume strength. It is designed to capture trend reversals and breakouts based on price action and volume dynamics.
Features:
Donchian Channels:
Tracks the highest high and lowest low over a customizable period.
Provides dynamic support and resistance levels for breakout identification.
Volume Confirmation:
Uses a Volume SMA to validate breakout signals by ensuring above-average volume.
Entry Conditions:
Long: Triggered when the price crosses above the previous upper Donchian Channel, with volume greater than the average.
Short: Triggered when the price crosses below the previous lower Donchian Channel, with volume greater than the average.
Exit Conditions:
Long Exit: Triggered when the price crosses below the current lower Donchian Channel.
Short Exit: Triggered when the price crosses above the current upper Donchian Channel.
Customization Options:
Adjust the Donchian Channel period for breakout sensitivity.
Modify the Volume SMA period to fine-tune volume confirmation.
Visualization:
Dynamic Donchian Channels plotted with shaded areas for better zone visibility.
Visual markers for entry and exit signals directly on the chart.
This strategy is designed for educational and testing purposes. Use it as a foundation for backtesting and adapting to your trading style.
Visit my website for more tools and strategies: bybitindicators.com
Happy trading!
CCI / Owl of ProfitCCI Strategy Example
This strategy uses the Commodity Channel Index (CCI) to identify potential long and short trading opportunities. It features customizable smoothing options and optional Bollinger Bands for added precision.
Features:
CCI Calculation:
CCI is calculated using the source (default: HLC3) with customizable period length.
Plots CCI values along with key levels (+100, -100, and 0) to identify overbought/oversold conditions.
Smoothing Options:
Includes various moving average types: SMA, EMA, SMMA (RMA), WMA, and VWMA.
Optionally applies Bollinger Bands to the smoothed CCI values for dynamic overbought/oversold levels.
Entry Conditions:
Long: Triggered when CCI crosses above -100.
Short: Triggered when CCI crosses above +100.
Customization Options:
Adjust CCI length and source (e.g., close, hlc3).
Select MA type and length for smoothing.
Enable Bollinger Bands with customizable standard deviation multiplier.
Visualization:
Clear CCI plot with shaded background for oversold and overbought zones.
Optional smoothed CCI with Bollinger Bands for advanced analysis.
This strategy is designed for educational and testing purposes. Use it as a foundation for backtesting and adapting to your trading needs.
Visit my website for more tools and strategies: bybitindicators.com
Happy trading!
Chande Momentum Oscillator + BB / Owl of ProfitChande Momentum Oscillator + Bollinger Bands Strategy
This strategy combines the Chande Momentum Oscillator (CMO) with Bollinger Bands to identify overbought and oversold conditions and generate entry and exit signals based on price action and momentum.
Features:
Bollinger Bands:
Visualize volatility and identify price breakouts using customizable period and standard deviation.
Signals are triggered when the price crosses above or below the Bollinger Bands.
Chande Momentum Oscillator (CMO):
Detects momentum with a customizable length.
Confirms overbought or oversold conditions with upper and lower thresholds.
Entry Conditions:
Long: Price crosses below the lower Bollinger Band, and CMO is below the oversold level.
Short: Price crosses above the upper Bollinger Band, and CMO is above the overbought level.
Exit Conditions:
Long Exit: Price crosses above the Bollinger Basis or CMO enters overbought.
Short Exit: Price crosses below the Bollinger Basis or CMO enters oversold.
Customization Options:
Adjust Bollinger Bands length and standard deviation for sensitivity.
Modify CMO length and thresholds to refine momentum detection.
Visualization:
Bollinger Bands are shaded for clear identification of overbought and oversold zones.
CMO and its thresholds are plotted for easy reference.
This strategy is designed for educational and testing purposes. Use it as a foundation for backtesting and adapting to your trading approach.
Visit my website for more tools and strategies: bybitindicators.com
Happy trading!
Bollinger Bands Filter (TradeChartist) / Owl of Profit remakeThis strategy, created by TradeChartist, uses Bollinger Bands to filter market conditions and generate precise signals for long and short positions based on price action relative to the Bollinger Bands.
Special thanks to TradeChartist for the inspiration!
Features:
Bollinger Bands Logic:
Long Entry: Triggered when the price crosses above the upper Bollinger Band.
Short Entry: Triggered when the price crosses below the lower Bollinger Band.
Customizable Settings:
Adjust the SMA period and Standard Deviation multiplier for Bollinger Bands to suit your trading style.
Enable or disable bar coloring based on Bollinger Bands logic.
Alerts and Visualization:
Clear alerts for both Long and Short signals.
Visual signals with triangle markers directly on the chart.
Shaded Bollinger Bands with customizable transparency for easier zone identification.
Bar Coloring:
Green for bullish conditions when the price is above the upper band.
Red for bearish conditions when the price is below the lower band.
This strategy is designed for educational and testing purposes. Use it as a foundation for backtesting and customization to your trading approach.
Visit my website for more tools and strategies: bybitindicators.com
Happy trading!
BB + MA / Owl of ProfitThis strategy combines Bollinger Bands (BB) and a Moving Average (MA) to identify trend-following entry and exit signals. It leverages Bollinger Bands for volatility-based breakouts and a Moving Average for trend confirmation.
Features:
Bollinger Bands:
Detects price volatility with customizable period and multiplier.
Generates signals based on price crossing the upper or lower bands.
Moving Average:
Supports both SMA (Simple Moving Average) and EMA (Exponential Moving Average).
Confirms trend direction for entry and exit conditions.
Entry Conditions:
Long: Price crosses above the lower Bollinger Band and is above the MA.
Short: Price crosses below the upper Bollinger Band and is below the MA.
Exit Conditions:
Long Exit: Price crosses below the MA or drops below it.
Short Exit: Price crosses above the MA or rises above it.
Customization Options:
Adjust Bollinger Bands period and multiplier for volatility sensitivity.
Choose between SMA or EMA for the Moving Average.
Visualization:
Bollinger Bands with shaded areas for easy identification of price ranges.
Visual markers for entry and exit signals directly on the chart.
This strategy is designed for educational and testing purposes. Use it as a foundation for further customization and backtesting on your preferred markets.
Visit my website for more tools and strategies: bybitindicators.com
Happy trading!
Fartcoin log line bot and topThe first script for bitcoin went perfect. Lets see if the same works for fartcoin, because we all know, hot air rises...
ATR + Pivot Points / Owl of ProfitThis strategy combines ATR (Average True Range) and Pivot Points for trade entries and exits. It uses dynamic stop loss and take profit levels based on ATR, and incorporates daily Pivot Points as key levels for decision-making.
Features:
Pivot Points: Calculates standard daily Pivot Points (Pivot, R1, R2, S1, S2) for support and resistance levels.
ATR Integration: Uses ATR to dynamically set stop loss and take profit levels with customizable multipliers.
Entry Conditions:
Long: Price crosses above R1.
Short: Price crosses below S1.
Exit Conditions:
Optional closing of positions when crossing the main pivot point.
Fully visualized Pivot Points for easy reference on the chart.
Customization Options:
Adjust Pivot Points calculation period.
Modify ATR length and multiplier for tailored risk management.
Enable or disable Pivot Points visualization.
This strategy is designed for demonstration and educational purposes. Use it as a foundation for further backtesting and customization.
Visit my website for more tools and strategies: bybitindicators.com
Happy trading!
RSI Bands with Volume and EMAThis script is a comprehensive technical analysis tool designed to help traders identify key market signals using RSI bands, volume, and multiple Exponential Moving Averages (EMAs). It overlays the following on the chart:
RSI Bands: The script calculates and plots two bands based on the Relative Strength Index (RSI), indicating overbought and oversold levels. These bands act as dynamic support and resistance zones:
Resistance Band (Upper Band): Plotted when the RSI exceeds the overbought level, typically indicating a potential sell signal.
Support Band (Lower Band): Plotted when the RSI falls below the oversold level, typically indicating a potential buy signal.
Midline: The average of the upper and lower bands, acting as a neutral reference.
Buy/Sell Labels: Labels are dynamically added to the chart when price reaches the overbought or oversold levels.
A "Buy" label appears when the price reaches the oversold (lower) band.
A "Sell" label appears when the price reaches the overbought (upper) band.
Volume Indicator: The script visualizes trading volume as histograms, with red or green bars representing decreasing or increasing volume, respectively. The volume height is visually reduced for better clarity and comparison.
Exponential Moving Averages (EMAs): The script calculates and plots four key EMAs (12, 26, 50, and 200) to highlight short-term, medium-term, and long-term trends:
EMA 12: Blue
EMA 26: Orange
EMA 50: Purple
EMA 200: Green
The combined use of RSI, volume, and EMAs offers traders a multi-faceted view of the market, assisting in making informed decisions about potential price reversals, trends, and volume analysis. The script is particularly useful for identifying entry and exit points on charts like BTC/USDT, although it can be applied to any asset.
Drawdown from 22-Day High (Daily Anchored)This Pine Script indicator, titled "Drawdown from 22-Day High (Daily Anchored)," is designed to plot various drawdown levels from the highest high over the past 22 days. This helps traders visualize the performance and potential risk of the security in terms of its recent high points.
Key Features:
Daily High Data:
Fetches daily high prices using the request.security function with a daily timeframe.
Highest High Calculation:
Calculates the highest high over the last 22 days using daily data. This represents the highest price the security has reached in this period.
Drawdown Levels:
Computes various drawdown levels from the highest high:
2% Drawdown
5% Drawdown
10% Drawdown
15% Drawdown
25% Drawdown
45% Drawdown
50% Drawdown
Dynamic Line Coloring:
The color of the 2% drawdown line changes dynamically based on the current closing price:
Green (#02ff0b) if the close is above the 2% drawdown level.
Red (#ff0000) if the close is below the 2% drawdown level.
Plotting Drawdown Levels:
Plots each drawdown level on the chart with specific colors and line widths for easy visual distinction:
2% Drawdown: Green or Red, depending on the closing price.
5% Drawdown: Orange.
10% Drawdown: Blue.
15% Drawdown: Maroon.
25% Drawdown: Purple.
45% Drawdown: Yellow.
50% Drawdown: Black.
Labels for Drawdown Levels:
Adds labels at the end of each drawdown line to indicate the percentage drawdown:
Labels display "2% WVF," "5% WVF," "10% WVF," "15% WVF," "25% WVF," "45% WVF," and "50% WVF" respectively.
The labels are positioned dynamically at the latest bar index to ensure they are always visible.
Explanation of Williams VIX Fix (WVF)
The Williams VIX Fix (WVF) is a volatility indicator designed to replicate the behavior of the VIX (Volatility Index) using price data instead of options prices. It helps traders identify market bottoms and volatility spikes.
Key Aspects of WVF:
Calculation:
The WVF measures the highest high over a specified period (typically 22 days) and compares it to the current closing price.
It is calculated as:
WVF
=
highest high over period
−
current close
highest high over period
×
100
This formula provides a percentage measure of how far the price has fallen from its recent high.
Interpretation:
High WVF Values: Indicate increased volatility and potential market bottoms, suggesting oversold conditions.
Low WVF Values: Suggest lower volatility and potentially overbought conditions.
Usage:
WVF can be used in conjunction with other indicators (e.g., moving averages, RSI) to confirm signals.
It is particularly useful for identifying periods of significant price declines and potential reversals.
In the script, the WVF concept is incorporated into the drawdown levels, providing a visual representation of how far the price has fallen from its 22-day high.
Example Use Cases:
Risk Management: Quickly identify significant drawdown levels to assess the risk of current positions.
Volatility Monitoring: Use the WVF-based drawdown levels to gauge market volatility.
Support Levels: Utilize drawdown levels as potential support levels where price might find buying interest.
This script offers traders and analysts an efficient way to visualize and track important drawdown levels from recent highs, helping in better risk management and decision-making. The dynamic color and label features enhance the readability and usability of the indicator.
Bollingers Bands Fibonacci ratios_copy of FOMOBollinger Bands Fibonacci Ratios (FiBB)
This TradingView script is a powerful tool that combines the classic Bollinger Bands with Fibonacci ratios to help traders identify potential support and resistance zones based on market volatility.
Key Features:
Dynamic Fibonacci Levels: The script calculates additional levels around a Simple Moving Average (SMA) using Fibonacci ratios (default: 1.618, 2.618, and 4.236). These levels adapt to market volatility using the Average True Range (ATR).
Customizable Parameters: Users can modify the length of the SMA and the Fibonacci ratios to fit their trading strategy and time frame.
Visual Representation: The indicator plots three upper and three lower bands, with color-coded transparency for easy interpretation.
Central SMA Line: The core SMA line provides a baseline for price movement and trend direction.
Shaded Range: The script visually fills the area between the outermost bands to highlight the overall range of price action.
How to Use:
Use the upper bands as potential resistance zones and the lower bands as potential support zones.
Look for price interactions with these levels to identify opportunities for breakout, trend continuation, or reversal trades.
Combine with other indicators or price action analysis to enhance decision-making.
This script is ideal for traders who want a unique blend of Fibonacci-based analysis and Bollinger Bands to better navigate market movements.
Futures Engulfing Candle Size Strategy (Ticks, TP/SL)The Futures Candle Size Strategy is designed to identify and trade significant price movements in the futures market based on candle size. It is optimized for futures instruments like ES, NQ, or CL, where precise tick-level calculations are essential. The strategy includes a customizable take profit and stop loss in ticks and operates only within a specified time window (e.g., 7:00 AM to 9:15 AM CST).
Key Features:
Candle Size Threshold: Trades are triggered when the candle's high-to-low range exceeds the defined threshold in ticks.
Time Filter: Limits trades to the most active market hours, specifically between 7:00 AM and 9:15 AM CST.
Take Profit and Stop Loss: Customizable exit levels in ticks to manage risk and lock in profits.
Long and Short Trades: Automatically places buy or sell orders based on the candle's direction (bullish or bearish).
Alerts: Sends alerts whenever a trade is triggered, helping you stay informed in real-time.
How It Works:
The strategy calculates the size of each candle in ticks and compares it to the user-defined threshold.
If the candle size meets or exceeds the threshold within the specified time range, it triggers a long or short trade.
The trade automatically exits when the price hits the take profit or stop loss levels.
RSI Volatility Suppression Zones [BigBeluga]RSI Volatility Suppression Zones is an advanced indicator that identifies periods of suppressed RSI volatility and visualizes these suppression zones on the main chart. It also highlights breakout dynamics, giving traders actionable insights into potential market momentum.
🔵 Key Features:
Detection of Suppression Zones:
Identifies periods where RSI volatility is suppressed and marks these zones on the main price chart.
Breakout Visualization:
When the price breaks above the suppression zone, the box turns aqua, and an upward label is drawn to indicate a bullish breakout.
If the price breaks below the zone, the box turns purple, and a downward label is drawn for a bearish breakout.
Breakouts accompanied by a "+" label represent strong moves caused by short-lived, tight zones, signaling significant momentum.
Wave Labels for Consolidation:
If the suppression zone remains unbroken, a "wave" label is displayed within the gray box, signifying continued price stability within the range.
Gradient Intensity Below RSI:
A gradient strip below the RSI line increases in intensity based on the duration of the suppressed RSI volatility period.
This visual aid helps traders gauge how extended the low volatility phase is.
🔵 Usage:
Identify Breakouts: Use color-coded boxes and labels to detect breakouts and their direction, confirming potential trend continuation or reversals.
Evaluate Market Momentum: Leverage "+" labels for strong breakout signals caused by short suppression phases, indicating significant market moves.
Monitor Price Consolidation: Observe gray boxes and wave labels to understand ongoing consolidation phases.
Analyze RSI Behavior: Utilize the gradient strip to measure the longevity of suppressed volatility phases and anticipate breakout potential.
RSI Volatility Suppression Zones provides a powerful visual representation of RSI volatility suppression, breakout signals, and price consolidation, making it a must-have tool for traders seeking to anticipate market movements effectively.
Relative Risk MetricOVERVIEW
The Relative Risk Metric is designed to provide a relative measure of an asset's price, within a specified range, over a log scale.
PURPOSE
Relative Position Assessment: Visualizes where the current price stands within a user-defined range, adjusted for log scale.
Logarithmic Transformation: Utilizes the natural log to account for a log scale of prices, offering a more accurate representation of relative positions.
Calculation: The indicator calculates a normalized value via the function Relative Price = / log(UpperBound) − log(LowerBound) . The result is a value between 0 and 1, where 0 corresponds to the lower bound and 1 corresponds to the upper bound on a log scale.
VISUALIZATION
The indicator plots three series:
Risk Metric - a plot of the risk metric value that’s computed from an asset's relative price so that it lies within a logarithmic range between 0.0 & 1.0.
Smoothed Risk Metric - a plot of the risk metric that’s been smoothed.
Entry/Exit - a scatter plot for identified entry and exit. Values are expressed as percent and are coded as red being exit and green being entity. E.g., a red dot at 0.02 implies exit 2% of the held asset. A green dot at 0.01 implies use 1% of a designated capital reserve.
USAGE
Risk Metric
The risk metric transformation function has several parameters. These control aspects such as decay, sensitivity, bounds and time offset.
Decay - Acts as an exponent multiplier and controls how quickly dynamic bounds change as a function of the bar_index.
Time Offset - provides a centering effect of the exponential transformation relative to the current bar_index.
Sensitivity - controls how sensitive to time the dynamic bound adjustments should be.
Baseline control - Serves as an additive offset for dynamic bounds computation which ensures that bounds never become too small or negative.
UpperBound - provides headroom to accomodate growth an assets price from the baseline. For example, an upperbound of 3.5 accommodates a 3.5x growth from the baseline value (e.g., $100 -> $350).
LowerBound - provides log scale compression such that the overall metric provides meaningful insights for prices well below the average whilst avoiding extreme scaling. A lowerbound of 0.25 corresponds to a price that is approx one quarter of a normalised baseline in a log context.
Weighted Entry/Exit
This feature provides a weighted system for identifying DCA entry and exit. This weighting mechanism adjusts the metric's interpretation to highlight conditions based on dynamic thresholds and user-defined parameters to identify high-probability zones for entry/exit actions and provide risk-adjusted insights.
Weighting Parameters
The weighting function supports fine-tuning of the computed weighted entry/exit values
Base: determines the foundational multiplier for weighting the entry/exit value. A higher base amplifies the weighting effect, making the weighted values more pronounced. It acts as a scaling factor to control the overall magnitude of the weighting.
Exponent: adjusts the curve of the weighting function. Higher exponent values increase sensitivity, emphasizing differences between risk metric values near the entry or exit thresholds. This creates a steeper gradient for the computed entry/exit value making it more responsive to subtle shifts in risk levels.
Cut Off: specifies the maximum percentage (expressed as a fraction of 1.0) that the weighted entry/exit value can reach. This cap ensures the metric remains within a meaningful range and avoids skewing
Exit condition: Defines a threshold for exit. When the risk metric is below the exit threshold (but above the entry threshold) then entry/exit is neutral.
Entry condition: Defines a threshold for entry. When the risk metric is above the entry threshold (but below the exit threshold) then entry/exit is neutral.
Weighting Behaviour
For entry conditions - value is more heavily weighted as the metric approaches the entry threshold, emphasizing lower risk levels.
For exit conditions - value is more heavily weighted as the metric nears the exit threshold, emphasizing increased risk levels.
USE-CASES
Identifying potential overbought or oversold conditions within the specified logarithmic range.
Assisting in assessing how the current price compares to historical price levels on a logarithmic scale.
Guiding decision-making processes by providing insights into the relative positioning of prices within a log context
CONSIDERATIONS
Validation: It's recommended that backtesting over historical data be done before acting on any identified entry/exit values.
User Discretion: This indicator focus on price risk. Consider other risk factors and general market conditions as well.
NIFTY BANKNIFTY MIDCAP SENSEX FINNIFTY LEVELS)this indicator uses Gann's methods which are based on the idea that markets move in predictable geometric patterns and are influenced by time and price.
Key Concepts of Gann Levels:
Gann Angles:
Gann believed that specific angles could indicate the trend of a market. The most notable is the 45-degree angle, which he called the "1x1" or "45-degree line."
Angles are drawn from a significant price point, such as a high or low, and represent the speed or slope of the price movement.
Gann Square of 9:
A mathematical tool that calculates support and resistance levels based on the square root of numbers and their geometric relationships.
It aligns numbers in a spiral format, starting from a central point, and helps identify key price levels at certain degrees.
Gann Fan:
A series of lines drawn at specific angles from a significant high or low. Common angles include 1x1 (45°), 2x1 (26.25°), and 1x2 (63.75°).
These angles help traders identify potential areas where the trend might accelerate, decelerate, or reverse.
Gann Retracements:
Levels based on key price ratios derived from natural laws and geometric principles. Common Gann retracement levels include 12.5%, 25%, 50%, and 75%.
Time Analysis:
Gann emphasized the importance of time cycles. He believed markets move in time-based patterns, such as yearly cycles, seasonal cycles, or specific time intervals.
