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Candlestick analysis

Green/Red Candle Probability (EMA 7, SMA 20, SMA 200)### Strategy Explanation for Candle Probability Indicator This script is designed to calculate the **probability of bullish (green) and bearish (red) candles** over a given analysis period. It leverages three key moving averages to identify market trends and display these probabilities directly on the chart, making it easier for traders to make informed decisions. #### **How the Script Works:** 1. **Trend Detection Using Moving Averages:** - The script calculates three moving averages: - **EMA (Exponential Moving Average) over 7 periods** - **SMA (Simple Moving Average) over 20 periods** - **SMA over 200 periods** The trend is classified as: - **Bullish:** When EMA 7 > SMA 20 > SMA 200 - **Bearish:** When EMA 7 < SMA 20 < SMA 200 2. **Candle Analysis:** The script analyzes the last "n" candles (based on the user-defined lookback period) to count the number of bullish and bearish candles: - **Bullish (green) candle:** The closing price is higher than the opening price. - **Bearish (red) candle:** The closing price is lower than the opening price. 3. **Probability Calculation:** The probabilities are calculated as a percentage of bullish and bearish candles in the lookback period: - **Green Probability (%) = (Number of Green Candles / Lookback Period) × 100** - **Red Probability (%) = (Number of Red Candles / Lookback Period) × 100** 4. **Displaying Results in a Table:** The results are displayed in a table on the chart, including: - **Green Probability (%)** - **Red Probability (%)** - **Current Trend (Bullish, Bearish, or Neutral)** #### **Strategy Overview:** This indicator provides traders with a quick overview of the candle probabilities and the current market trend based on moving averages. It helps traders: - Gauge the likelihood of bullish or bearish candles appearing in the near future. - Identify the prevailing trend (bullish, bearish, or neutral). - Adjust their trading strategies based on statistical probabilities rather than assumptions. ### **Important Notes:** - The lookback period can be customized between **10 and 200 periods**. - The indicator does not provide buy/sell signals but gives insights into market behavior. By understanding the candle probabilities and the trend, traders can better assess market conditions and improve their decision-making process.
Pine Script™ indicator
by Yannick1961
ICT Digital open Daily DividersDescription for "ICT Digital Open Daily Dividers" TradingView Indicator Overview The "ICT Digital Open Daily Dividers" is a versatile and comprehensive TradingView Pine Script indicator designed for traders who utilize Institutional Order Flow methodologies, particularly in ICT (Inner Circle Trader) trading. This indicator provides a structured visual framework to assist traders in identifying key daily market sessions, critical opening prices, and distinguishing different trading days, especially focusing on the Sunday open, which is a crucial element in the ICT trading strategy. Core Functionalities Daily Vertical Lines: The script plots vertical lines at the start of each trading day, which helps to demarcate daily trading sessions. These lines are customizable, allowing traders to choose their color, style (solid, dashed, or dotted), and width. This feature helps in visually segmenting each trading day, making it easier to analyze daily price action patterns. Sunday Open Differentiation: Unlike many other daily divider indicators, this script uniquely provides the option to highlight the Sunday open at 6 PM EST with distinct lines. This feature is especially valuable for ICT traders who consider the Sunday open as a critical reference point for weekly analysis. The color, style, and width of the Sunday open lines can be set separately, providing a clear visual distinction from regular weekday separators. 12 AM Open Toggle: For markets that are influenced by midnight opens, the indicator includes an option to shift the daily open line to 12 AM instead of the default 6 PM. This flexibility allows traders to adapt the indicator to different market dynamics or trading strategies. Timezone Customization: The indicator allows traders to set the timezone for the open lines, ensuring that the vertical lines align accurately with the trader’s specific market hours, whether they follow New York time or any other timezone. Session Time Filters: The script can hide or show specific trading session markers, such as the New York session open and close, which are pivotal for ICT traders. These markers help in focusing on the most active and liquid trading times. Customizable Style Settings: The script includes comprehensive styling options for the plotted lines and session markers, allowing traders to personalize their charts to suit their visual preferences and improve clarity. Day of the Week Labels: The indicator can plot labels for each day of the week, providing a quick reference to the day’s price action. This feature is particularly useful in reviewing weekly trading patterns and performance. Use in ICT Trading In ICT trading, the concept of the "open" is fundamental. The "ICT Digital Open Daily Dividers" indicator serves multiple purposes: Market Structure Identification: By clearly marking daily opens, traders can easily identify market structure changes such as breakouts, retracements, or consolidations around these key levels. Reference Points: The Sunday open is often a key level in ICT analysis, serving as a benchmark for assessing market direction for the upcoming week. This indicator’s ability to plot Sunday opens separately makes it uniquely suited for ICT strategies. Time-based Analysis: ICT methodology often involves analyzing the market at specific times of the day. This indicator supports such analysis by marking significant session opens and closes. Uniqueness and Advantages The "ICT Digital Open Daily Dividers" stands out from other similar indicators due to its specialized features: Sunday Open Highlighting: Few indicators offer the capability to specifically mark the Sunday open with distinct styling options. Flexibility in Time Adjustments: With options to adjust the open time to either 6 PM or 12 AM, this indicator caters to a broader range of trading strategies and market conditions. Enhanced Visualization: The wide range of customization options ensures that traders can tailor the indicator to their specific needs, enhancing the usability and visual clarity of their charts. Compliance with TradingView's Pine Script Community Guidelines The description adheres to TradingView's guidelines by being comprehensive, clear, and informative. It highlights the utility of the script, its unique features, and its application in trading strategies without making exaggerated claims about performance or profitability. The detailed customization options and unique functionalities are emphasized to differentiate this script from other standard daily divider indicators.
Pine Script™ indicator
by SpxGh0st
Simple Reversal Point - v2感谢原作者 @Dreadblitz , 我在其脚本之上进行了优化 原脚本链接: 1. 不使用当前k线以避免重绘或者警告频繁触发且与绘图不一致的情况 2. 增加连续三根k线的触发反转条件 3. 使信号交替进行, 不会出现连续的信号 Thanks to the original author @Dreadblitz I optimized it on top of his script Original script link: 1. Do not use the current K-line to avoid redrawing or warnings that are triggered frequently and are inconsistent with the drawing. 2. Add triggering reversal conditions for three consecutive K lines 3. Make the signals alternate and there will be no continuous signals.
Pine Script™ indicator
by awesome365plus
CandelaCharts - Swing Failure Pattern (SFP)# SWING FAILURE PATTERN 📝 Overview The Swing Failure Pattern (SFP) indicator is designed to identify and highlight Swing Failure Patterns on a user’s chart. This pattern typically emerges when significant market participants generate liquidity by driving price action to key levels. An SFP occurs when the price temporarily breaks above a resistance level or below a support level, only to quickly reverse and return within the previous range. These movements are often associated with stop-loss hunting or liquidity grabs, providing traders with potential opportunities to anticipate reversals or key market turning points. A Bullish SFP occurs when the price dips below a key support level, triggering stop-loss orders, but then swiftly reverses upward, signaling a potential upward trend or reversal. A Bearish SFP happens when the price spikes above a key resistance level, triggering stop-losses of short positions, but then quickly reverses downward, indicating a potential bearish trend or reversal. The indicator is a powerful tool for traders, helping to identify liquidity grabs and potential reversal points in real-time. Marking bullish and bearish Swing Failure Patterns on the chart, it provides clear visual cues for spotting market traps set by major players, enabling more informed trading decisions and improved risk management. 📦 Features Bullish/Bearish SFPs Styling ⚙️ Settings Length: Determines the detection length of each SFP Bullish SFP: Displays the bullish SFPs Bearish SFP: Displays the bearish SFPs Label: Controls the size of the label ⚡️ Showcase Bullish Bearish Both 📒 Usage The best approach is to combine a few complementary indicators to gain a clearer market perspective. This doesn’t mean relying on the Golden Cross, RSI divergences, SFPs, and funding rates simultaneously, but rather focusing on one or two that align well in a given scenario. The example above demonstrates the confluence of a Bearish Swing Failure Pattern (SFP) with an RSI divergence. This combination strengthens the signal, as the Bearish SFP indicates a potential reversal after a liquidity grab, while the RSI divergence confirms weakening momentum at the key level. Together, these indicators provide a more robust setup for identifying potential market reversals with greater confidence. 🚨 Alerts This script provides alert options for all signals. Bearish Signal A bearish signal is triggered when a Bearish SFP is formed. Bullish Signal A bullish signal is triggered when a Bullish SFP is formed. ⚠️ Disclaimer Trading involves significant risk, and many participants may incur losses. The content on this site is not intended as financial advice and should not be interpreted as such. Decisions to buy, sell, hold, or trade securities, commodities, or other financial instruments carry inherent risks and are best made with guidance from qualified financial professionals. Past performance is not indicative of future results.
Pine Script™ indicator
by CandelaCharts
8
Non-Lagging Indicator: EMA + TSI BY UTTAM PARAMANIK//@version=5 indicator("Non-Lagging Indicator: EMA + TSI", overlay=true) // Parameters for the EMA fastLength = input.int(9, title="Fast EMA Period", minval=1) slowLength = input.int(21, title="Slow EMA Period", minval=1) // Parameters for the TSI tsiFastLength = input.int(13, title="TSI Fast Length", minval=1) tsiSlowLength = input.int(25, title="TSI Slow Length", minval=1) tsiSignalLength = input.int(7, title="TSI Signal Length", minval=1) // EMA Calculation fastEMA = ta.ema(close, fastLength) slowEMA = ta.ema(close, slowLength) // TSI Calculation delta = close - close doubleSmoothDelta = ta.ema(ta.ema(delta, tsiFastLength), tsiSlowLength) doubleSmoothAbsDelta = ta.ema(ta.ema(math.abs(delta), tsiFastLength), tsiSlowLength) tsi = 100 * doubleSmoothDelta / doubleSmoothAbsDelta tsiSignal = ta.ema(tsi, tsiSignalLength) // Plot EMAs plot(fastEMA, color=color.blue, title="Fast EMA") plot(slowEMA, color=color.orange, title="Slow EMA") // Plot TSI and Signal plot(tsi, color=color.green, title="True Strength Indicator") plot(tsiSignal, color=color.red, title="TSI Signal") // Buy and Sell Conditions buyCondition = ta.crossover(fastEMA, slowEMA) and ta.crossover(tsi, tsiSignal) sellCondition = ta.crossunder(fastEMA, slowEMA) and ta.crossunder(tsi, tsiSignal) // Plot Buy and Sell Signals plotshape(buyCondition, color=color.green, style=shape.labelup, location=location.belowbar, text="BUY") plotshape(sellCondition, color=color.red, style=shape.labeldown, location=location.abovebar, text="SELL")
Pine Script™ indicator
by uttamparamanik50
2
Nitesh - Buyside & Sellside LiquidityLiquidity Zones Buyside Liquidity Zones: Enables display of the buyside liquidity zones. Margin: Sets margin/sensitivity for the liquidity zone boundaries. Color: Color option for buyside liquidity levels & zones. Sellside Liquidity Zones: Enables display of the sellside liquidity zones. Margin: Sets margin/sensitivity for the liquidity zone boundaries. Color: Color option for sellside liquidity levels & zones. 🔹 Liquidity Voids Liquidity Voids: Enables display of both bullish and bearish liquidity voids. Label: Enables display of a label indicating liquidity voids.
Pine Script™ indicator
by nitesh190178
SuperTrend Heikin AshiSupertrend Heikin Ashi is an indicator based on the standard calculation of the Supertrend with the difference of using the Open and Close value of the Heikin Ashi candles instead of the normal Candle Sticks. In this way the main characteristic of the HA candles is exploited, thus filtering movements that could generate false signals. I recommend using SPY, SPX, QQQ to be aware of the market situation, not operating (or paying great attention) long on stocks when the indicator is red and the price is below the drawn line.
Pine Script™ indicator
by DieciTrader
Volume-Based RSI Color Indicator with MAsVolume-Based RSI Color Indicator with MAs Overview This script combines the Relative Strength Index (RSI) with volume analysis to provide an enhanced perspective on market conditions. By dynamically coloring the RSI line based on overbought/oversold conditions and volume thresholds, this indicator helps traders quickly identify high-probability reversal zones. Additionally, it incorporates short-term and long-term moving averages (MAs) of the RSI for trend analysis, making it a versatile tool for scalping and swing trading strategies. Key Features Dynamic RSI Color Coding: The RSI line changes color based on two conditions: Overbought/High Volume: RSI is above the overbought threshold (default: 70) and volume exceeds the average volume by a user-defined multiplier (default: 2.0). The line turns red, indicating potential reversal zones. Oversold/High Volume: RSI is below the oversold threshold (default: 30) and volume exceeds the average volume by the multiplier. The line turns green, suggesting potential buying opportunities. Neutral Conditions: Default blue color for all other scenarios. Volume Integration: Unlike standard RSI indicators, this script incorporates volume data to refine signals, helping traders avoid false signals in low-volume environments. RSI Moving Averages: Two moving averages of the RSI (short-term and long-term) provide trend context: 200-period MA: Highlights the long-term trend in RSI values. 20-period MA: Shows short-term fluctuations for quick decision-making. Both MAs can be calculated using Simple or Exponential methods, giving users flexibility. Visual Aids: Horizontal lines at the overbought (70) and oversold (30) levels help define the boundaries of expected price action extremes. How It Works The script calculates the RSI over a user-defined length (default: 14). Volume data is compared to its moving average to determine if it exceeds the user-defined high-volume threshold. When RSI and volume conditions align, the RSI line is dynamically colored to indicate potential overbought/oversold zones. The RSI moving averages provide additional context to confirm trends or reversals. How to Use Identify Reversal Zones: Look for green RSI signals in oversold conditions to identify potential buying opportunities. Look for red RSI signals in overbought conditions to identify potential selling opportunities. Use Moving Averages for Confirmation: When the RSI is above its 200-period MA, the long-term trend is bullish; consider only long trades. When the RSI is below its 200-period MA, the trend is bearish; consider only short trades. Combine with Other Tools: This indicator works best when used alongside price action analysis, candlestick patterns, or support/resistance levels. Originality This script is unique in combining volume analysis with RSI and RSI-specific moving averages. While many indicators focus on RSI or volume separately, this script marries these two key metrics to filter out weak signals and improve trade decision accuracy. Chart Recommendations Clean Chart: Use this indicator on a clean chart without additional overlays for maximum clarity. Timeframes: Works well on intraday charts (e.g., 5m, 15m) for scalping and on higher timeframes (e.g., 1H, 4H, Daily) for swing trading. Disclaimer This indicator is a tool to aid trading decisions and should not be used in isolation. Always consider other factors such as market conditions, news events, and risk management.
Pine Script™ indicator
by Riccardo02
CANDLE RANGE THEORY (H1 Only)Hello traders. This indicator identifies CRT candles -Each candle is a range. -Each candle has its own po3. -Focus on specific times of the day. By recognizing the importance of time and price, we can capture high-quality trades. Together with HTF PD array, Look for 4-hour candles forming at specific times of the day. (1am - 5am - 9am EST) -After the 1st candle, wait for the 2nd candle to clear the high/low of the 1st candle and then close inside the 1st candle range at a specific time (1-5-9) and look for entries in the LTF Why choose 1 5 9 hours EST? ### **1. 1:00 AM (EST)** - **Trading Session:** This is the time between the Tokyo (Asian) session and the Sydney (Australian) session. The Asian market is very active. - **Characteristics:** - Liquidity: Moderate, as only the Asian market is active. - Volatility: Pairs involving JPY (Japanese Yen), AUD (Australian Dollar), and NZD (New Zealand Dollar) tend to have higher volatility. - Trading Opportunities: Suitable for traders who like to trade trends or news in the Asian region. - **Note:** Volatility may be lower than the London or New York session. ### **2. 5:00 AM (EST)** - **Trading Session:** This is the time near the end of the Tokyo session and the London (European) session is about to open. - **Characteristics:** - Liquidity: Starts to increase due to the preparation of the European market. - Volatility: This is the time between two trading sessions, there can be strong fluctuations, especially in major currency pairs such as EUR/USD, GBP/USD. - Trading opportunities: Suitable for breakout trading strategies when liquidity increases. - **Note:** The overlap between Tokyo and London can cause sudden fluctuations. ### **3. 9:00 AM (EST)** - **Trading sessions:** This time is within the London session and near the beginning of the New York session. - **Characteristics:** - Liquidity: Very high, as this is the period between the two largest sessions – London and New York. - Volatility: Extremely strong, especially for major currency pairs such as EUR/USD, GBP/USD, USD/JPY. - Trading opportunities: Suitable for both news trading and trend trading, as this is the time when a lot of economic data is released (usually from the US or the European region). - **Note:** High volatility can bring big profits, but also comes with high risks. ### **Summary of effects:** - **1 AM (EST):** Moderate volatility, focusing on Asian currency pairs. - **5 AM (EST):** Increased liquidity and volatility, suitable for breakout trading. - **9 AM (EST):** High volatility and high liquidity, the best time for Forex trading. ==> How to trade, when the high/low of CRT is swept, move to LTF to wait for confirmation to enter the order Only sell at high level and buy at discount price. Find CE at specific important time. Trading CRT with HTF direction has better win rate. The more inside bars, the higher the probability. Place a partial and Move breakeven at 50% range. Do a backtest and post your chart.
Pine Script™ indicator
by Paulhdvn
1
Multi-Timeframe Candles HistogramsAt some community members' requests, I have built on the original code to make it a single indicator with the option for users to check off which timeframes they want to be shown. Choices are 1-hour, daily, weekly, and monthly. I couldn't figure out how to separate each timeframe into its own histogram, so this is the best I can offer at the moment. If any community member wants to take a crack at it, be my guest. Colors are customizable. If you have a paid TW account, you can lay it down twice and put the hour and daily on one and the weekly and monthly on the other. That said, I hope you enjoy this version of this indicator. R.I.P. Rob Smith, creator of TheStrat. --- Key Features and Benefits 1. Custom Timeframe Selection: - Choose from an array of timeframes ranging from minutes to months, giving you complete flexibility in your market analysis. - Quickly switch between different timeframes (e.g., 1-hour, daily, or weekly) to track continuity across varying levels. 2. Visual Representation of High/Low Markers: - Enable or disable the display of high and low points to better understand price ranges and reversals. - These markers allow you to spot key turning points on different timeframes, facilitating better entry or exit decisions. 3. Enhanced Candle Visualization: - Displays candles with precise price levels aligned to your chosen timeframe, giving a clearer view of price trends. - Candles are color-coded to reflect price movement, which is customizable by the user. --- How to Use This Indicator Monitor Multiple Timeframes Simultaneously: - Place the indicator on your chart and choose the timeframes you want to follow (e.g., hourly, daily, weekly, monthly). - For each instance, checkmark the desired timeframes in the menu to ensure that you’re tracking the right period. Achieve Timeframe Continuity: - By aligning lower timeframes with higher ones, this tool helps you confirm trends, detect reversals, and avoid trades that go against the broader market movement. --- Why This Indicator is Valuable for Traders This tool simplifies a core principle of TheStrat—full timeframe continuity—by visually representing price action across multiple timeframes in a clear and actionable way. It removes the guesswork and helps traders stay in sync with market momentum, regardless of the timeframe they are analyzing. This solution offers flexibility, clarity, and speed, enabling traders to quickly grasp critical movements and improve decision-making. Whether you are a scalper focusing on intraday moves or a swing trader watching weekly trends, this tool empowers you to maintain alignment with the overall market structure. In essence, it brings the power of TheStrat to your fingertips by offering precise and easy-to-read visual aids, allowing you to seamlessly apply Rob Smith’s philosophy to your trading.
Pine Script™ indicator
by hardwaybets
Kamal 5 Tick Trading SetupKamal 5 Tick Trading Setup The "Kamal 5 Tick Trading Setup" is a custom indicator designed by Kamal Preet Singh Trader for TradingView to identify potential Buy and Sell signals on daily forex charts. This indicator helps traders make informed decisions based on the price action of the previous five daily candles. Indicator Logic: Buy Signal: A Buy signal is generated when the closing price of the current candle exceeds the highest high of the previous five daily candles. Sell Signal: A Sell signal is generated when the closing price of the current candle falls below the lowest low of the previous five daily candles. Features: Lookback Period: The indicator uses a lookback period of five candles to determine the highest high and lowest low. Visual Signals: Buy signals are plotted as green "BUY" labels below the candles, while Sell signals are plotted as red "SELL" labels above the candles. Debugging Plots: The highest high and lowest low of the previous five candles are plotted as blue and orange lines, respectively, to help verify the conditions for Buy and Sell signals. Non-Repetitive Signals: The indicator ensures that once a Buy signal is given, no further Buy signals are generated until a Sell signal is given, and vice versa. Usage: Apply the indicator to your daily forex chart in TradingView. Observe the plotted Buy and Sell signals to identify potential entry and exit points. Use the debugging plots to ensure the conditions for the signals are being met correctly. This indicator provides a straightforward approach to trading based on recent price action, helping traders capitalize on potential breakout and breakdown opportunities.
Pine Script™ indicator
by kamal.ventura
Noteworthy CandlesticksThis indicator identifies noteworthy candlestick formations by analyzing the proportions of a candlestick’s body, wicks, and shadows in relation to its total range. It highlights specific patterns to assist in analyzing potential market activity. Key Features Lower Wick Candles: It identifies candlesticks with long lower wicks, which may indicate price rejection at lower levels. Upper Wick Candles: It detects candlesticks with long upper wicks, which may indicate price rejection at higher levels. Doji Candles: It recognizes candlesticks with small bodies relative to their range, often associated with market indecision. Definitions of Wicks and Shadows In traditional candlestick charting, the terms wick and shadow are interchangeable, referring to the thin lines extending above and below the candlestick's body. However, this indicator uses distinct definitions: Wicks represent the distance from the edges of the candlestick body (the open and close prices) to the high or low. Shadows measure the distance from the closing price to the high or low of the candlestick. By distinguishing between wicks and shadows, the indicator provides separate insights into price extremes (wicks) and price behavior around the close (shadows). How It Works The indicator evaluates each candlestick against user-defined thresholds for wick and shadow length. It compares the overall range of the candlestick to the ATR (Average True Range) to ensure patterns are relevant in the context of recent volatility. Candlesticks with noteworthy lower wicks are marked with a symbol below the bar. Candlesticks with noteworthy upper wicks are marked with a symbol above the bar. Doji candles are marked with symbols both above and below the bar. Applications This indicator can assist traders in identifying potential areas of price reversal, rejection, or indecision. It can also provide additional context when used alongside other technical tools like volume analysis, trendlines, or support and resistance levels. Acknowledgment This description was written by ChatGPT to facilitate the understanding of the indicator's features and functionality.
Pine Script™ indicator
by abuzka
2
ELC Indicator**ELC Indicator – Enigma Liquidity Concept** The ELC Indicator is a cutting-edge tool designed for traders who want to leverage price action and liquidity concepts for high-precision trading opportunities. Unlike conventional indicators that rely purely on trend-following or oscillatory methods, ELC incorporates a unique combination of market structure, Fibonacci retracement levels, and dynamic EMA filtering to detect key buy and sell zones. This original approach helps traders capture the most relevant market movements and anticipate potential reversals with higher confidence. --- ### **What the ELC Indicator Does** The primary goal of the ELC Indicator is to identify liquidity zones and plot Fibonacci-based levels around detected buy or sell signals. It continuously monitors price action to identify instances where significant liquidity grabs occur, signaled by breakouts beyond recent highs or lows. Once a signal is detected, the indicator plots horizontal lines at key Fibonacci ratios (0%, 25%, 50%, 75%, 100%, 120%, and 180%) to give traders a clear visual framework for potential retracement or extension levels. Additionally, the indicator includes a dynamic EMA filter, which ensures that buy signals are only triggered when the price is above the EMA and sell signals when the price is below the EMA. This filtering mechanism helps reduce false signals in choppy markets and aligns trades with the broader trend direction. --- ### **Key Features** 1. **Buy & Sell Signals** - Buy signals are generated when a liquidity grab occurs below the previous low, and the closing price is above the candle body midpoint and the EMA. - Sell signals are triggered when a liquidity grab occurs above the previous high, and the closing price is below the candle body midpoint and the EMA. - Visual cues are provided via small upward (green) and downward (red) triangles on the chart. 2. **Fibonacci Levels** - For each buy or sell signal, the indicator plots multiple horizontal lines at key Fibonacci levels. These levels can help traders set realistic profit targets and stop-loss levels. - The plotted lines can be customized in terms of style (solid, dotted, dashed) and color (buy and sell line colors). 3. **Dynamic EMA Filtering** - A customizable EMA filter is integrated into the logic to align trades with the prevailing trend. - The EMA length is adjustable, allowing traders to fine-tune the indicator based on their trading style and market conditions. 4. **Alert System** - Alerts can be enabled for both buy and sell signals, ensuring traders never miss an opportunity even when away from the screen. - Alerts are triggered once per bar, ensuring timely notifications without excessive noise. 5. **Customizable Signal Visibility** - Traders can toggle the visibility of the last 9 buy and sell signals. When this option is disabled, only the most recent signal is displayed, helping to declutter the chart. --- ### **How to Use the ELC Indicator** - **Trend Following**: The ELC Indicator works well in trending markets by filtering signals based on the EMA direction. Traders can use the plotted Fibonacci levels to enter trades, set profit targets, and manage risk. - **Reversal Trading**: The liquidity grab detection mechanism allows traders to capture potential market reversals. By waiting for price retracements to key Fibonacci levels after a signal, traders can enter trades with a favorable risk-to-reward ratio. - **Scalping & Day Trading**: With its ability to plot key intraday levels and generate real-time alerts, the ELC Indicator is particularly useful for scalpers and day traders looking to exploit short-term market inefficiencies. --- ### **Concepts Underlying the Calculations** 1. **Liquidity Grabs**: The ELC Indicator’s core logic is based on detecting instances where the market moves beyond a recent high or low, triggering a liquidity grab. This often signals a potential reversal or continuation, depending on broader market conditions. 2. **Fibonacci Ratios**: Once a signal is detected, key Fibonacci levels are plotted to provide traders with actionable zones for trade entries, profit targets, or stop-loss placements. 3. **EMA Filtering**: The EMA acts as a dynamic trend filter, ensuring that signals are aligned with the dominant market direction. This reduces the likelihood of entering trades against the prevailing trend. --- ### **Why ELC is Unique** The ELC Indicator stands out by combining multiple powerful trading concepts—liquidity, Fibonacci ratios, and EMA filtering—into a single tool that provides actionable and visually intuitive information. Unlike traditional trend-following indicators that lag behind price action, ELC proactively identifies key market turning points based on liquidity events. Its customizable features, real-time alerts, and comprehensive plotting of Fibonacci levels make it a versatile tool for traders across various styles and timeframes. Whether you're a scalper looking for intraday opportunities or a swing trader aiming to capture larger moves, the ELC Indicator offers a robust framework for identifying and executing high-probability trades. --- ### **How to Get Started** 1. Add the ELC Indicator to your chart. 2. Customize the EMA length, line colors, and style based on your preference. 3. Enable alerts to receive real-time notifications of buy and sell signals. 4. Use the plotted Fibonacci levels to plan your trade entries, profit targets, and stop-loss levels. 5. Combine the signals from ELC with your existing market analysis for optimal results. --- This unique approach makes the ELC Indicator a valuable tool for traders seeking precision, clarity, and consistency in their trading decisions.
Pine Script™ indicator
by Niko-picasso369