Spider VisionSpider Vision is an indicator that I created for trading view, which consists of a spider chart with 7 indicators built into it. This chart provides a visual representation of how these indicators are behaving, allowing traders to quickly assess the current market conditions.
The chart displays the following indicators:
RSI (Relative Strength Index): This is a momentum indicator that measures the strength of a security's price action. When the RSI is above 70, it is considered overbought, and when it is below 30, it is considered oversold.
Stochastic: This is another momentum indicator that compares the closing price of a security to its price range over a given time period. When the stochastic is above 80, it is considered overbought, and when it is below 20, it is considered oversold.
Momentum: This is a simple indicator that measures the change in a security's price over a given time period. When the momentum is positive, it indicates that the price is increasing, and when it is negative, it indicates that the price is decreasing.
BBW (Bollinger Bands Width): This indicator measures the width of the Bollinger Bands, which are a popular technical analysis tool used to identify potential trends and reversals. When the BBW is high, it suggests that the market is volatile, and when it is low, it suggests that the market is quiet.
DTO (Detrended Price Oscillator): This indicator measures the difference between the price of a security and its moving average. When the DTO is positive, it indicates that the price is above its moving average, and when it is negative, it indicates that the price is below its moving average.
Chop Zone: This indicator measures the choppiness of the market by comparing the average true range (ATR) to the difference between the high and low prices over a given time period. When the chop zone is high, it suggests that the market is choppy, and when it is low, it suggests that the market is trending.
Chaikin Oscillator: This is an oscillator that measures the accumulation/distribution of a security. When the Chaikin Oscillator is positive, it indicates that there is buying pressure in the market, and when it is negative, it indicates that there is selling pressure.
To use this indicator, traders can simply add it to their TradingView chart and adjust the input parameters to suit their trading style. The scale parameter can be used to adjust the size of the spider chart, while the color parameters can be used to customize the appearance of the chart. Traders can also adjust the length of each indicator to suit their preference.
Overall, the Spider Vision indicator provides a convenient way for traders to quickly assess the current market conditions and make more informed trading decisions.
Search in scripts for "accumulation"
Range Sentiment Profile [LuxAlgo]The Range Sentiment Profile indicator is inspired from the volume profile and aims to indicate the degree of bullish/bearish variations within equidistant price areas inside the most recent price range.
The most bullish/bearish price areas are highlighted through lines extending over the entire range.
🔶 SETTINGS
Length: Most recent bars used for the calculation of the indicator.
Rows: Number of price areas the price range is divided into.
Use Intrabar: Use intrabar data to compute the range sentiment profile.
Timeframe: Intrabar data timeframe.
🔶 USAGE
This tool can be used to easily determine if a certain price area contain more significant bullish or bearish price variations. This is done by obtaining an estimate of the accumulation of all the close to open variations occurring within a specific profile area.
A blue range background indicates a majority of bullish variations within each area while an orange background indicates a majority of bearish variations within each area.
Users can easily identify the areas with the most bullish/bearish price variations by looking at the bullish/bearish maximums.
It can be of interest to see where profile bins might have no length, these can indicate price areas with price variations with alternating signs (bullish variations are followed by a bearish sign) and similar body. They can also indicate a majority of either bullish or bearish variations alongside a minority of more significant opposite variations.
These areas can also provide support/resistance, as such price entering these areas could reverse.
Users can obtain more precise results by allowing the profile to use intrabar data. This will change the calculation of the profile, see the details section for more information.
🔶 DETAILS
The Range Sentiment Profile's design is similar to the way a volume profile is constructed.
First the maximum/minimum values over the most recent Length bars are obtained, these define the calculation range of the profile.
The range is divided into Rows equidistant areas. We then see if price lied within a specific area, if it's the case we accumulate the difference between the closing and opening price for that specific area.
Let d = close - open . The length of the bin associated to a specific area is determined as follows:
length = Width / 100 * Area / Max
Where Area is the accumulated d within the area, and Max the maximum value between the absolute value of each accumulated d of all areas.
The percentage visible on each bin is determined as 100 multiplied by the accumulated d within the area divided by the total absolute value of d over the entire range.
🔹 Intrabar Calculation
When using intrabar data the range sentiment profile is calculated differently.
For a specific area and candle within the interval, the accumulated close to open difference is accumulated only if the intrabar candle of the user selected timeframe lies within the area.
This can return more precise results compared to the standard method, at the cost of a higher computation time.
Moonhub IndexMoonhub Index combines several popular technical indicators to create an aggregated index that aims to give a clearer overall picture of the market. The index takes into account the current market condition (trending, ranging, or volatile) to adjust its calculations accordingly.
The indicators used in this composite index are:
Hull Moving Average (HMA)
Fisher Transform (FT)
Williams Alligator
Moving Average Convergence Divergence (MACD)
Average True Range (ATR)
On-Balance Volume (OBV)
Money Flow Index (MFI)
Accumulation/Distribution (AD)
Pivot Points
True Strength Index (TSI)
Volume-Weighted Average Price (VWAP)
The script calculates the values of each indicator and then normalizes and weighs them according to predefined weights. The composite index is formed by summing the weighted values of each indicator. The final Moon Index is plotted on the chart, along with several other related lines like the exponential moving averages (EMA) and simple moving averages (SMA) of the index.
This custom index can be used by traders to get a more comprehensive view of the market and make better-informed trading decisions based on the combined insights of multiple indicators.
Supply and Demand Visible Range [LuxAlgo]The Supply and Demand Visible Range indicator displays areas & levels on the user's chart for the visible range using a novel volume-based method. The script also makes use of intra-bar data to create precise Supply & Demand zones.
🔶 SETTINGS
Threshold %: Percentage of the total visible range volume used as a threshold to set supply/demand areas. Higher values return wider areas.
Resolution: Determines the number of bins used to find each area. Higher values will return more precise results.
Intra-bar TF: Timeframe used to obtain intra-bar data.
🔶 USAGE
The supply/demand areas and levels displayed by the script are aimed at providing potential supports/resistances for users. The script's behavior makes it recalculate each time the visible chart interval/range changes, as such this script is more suited as a descriptive tool.
Price reaching a supply (upper) area that might have been tested a few times might be indicative of a potential reversal down, while price reaching a demand (lower) area that might have been tested a few times could be indicative of a potential reversal up.
The width of each area can also indicate which areas are more liquid, with thinner areas indicating more significant liquidity.
The user can control the width of each area using the Threshold % setting, with a higher setting returning wider areas. The precision setting can also return wider supply/demand areas if very low values are used and has the benefit of improving the script execution time at the cost of precision.
The Supply and Demand Zones indicator returns various levels. The solid-colored levels display the average of each area, while dashed colored lines display the weighted averages of each area. These weighted averages can highlight more liquid price levels within the supply/demand areas.
Central solid/dashed lines display the average between the areas' averages and weighted averages.
🔶 DETAILS
Each supply/demand area is constructed from volume data. The calculation is done as follows:
The accumulated volume within the chart visible range is calculated.
The chart visible range is divided into N bins of equal width (where N is the resolution setting)
Calculation start from the highest visible range price value for the supply area, and lowest value for the demand area.
The volume within each bin after the starting calculation level is accumulated, once this accumulated volume is equal or exceed the threshold value ( p % of the total visible range volume) the area is set.
Each bin volume accumulation within an area is displayed on the left, this can help indicate how fast volume accumulates within an area.
🔶 LIMITATIONS
The script execution time is dependent on all of the script's settings, using more demanding settings might return errors so make sure to be aware of the potential scenarios that might make the script exceed the allowed execution time:
Having a chart's visible range including a high number of bars.
Using a high number of bins (high resolution value) will increase computation time, this can be worsened by using a high threshold %.
Using very low intra-bar timeframe can drastically increase computation time but can also simply throw an error if the chart timeframe is high.
Users facing issues can lower the resolution value or use the chart timeframe for intra-bar data.
Balance Zone ExtensionBalance zones are an aspect of trading that many traders notice. Balance Zones are formed when a market is in equilibrium and respects a certain high and low multiple times. These zones could also be called accumulation or distribution areas depending on the price action. If the term "choppy" is used to describe a given markets price action, it is probably a fair statement to say that the market is currently in a Balance Zone.
This script is a take on vwaptrader1's teachings where you take a balance zone and "double it" to get a target if/when it does break out of balance. It provides an automated way of extending levels based on a given balance range.
The lines plotted by the script are calculated based off of the balance high/low inputs, how many sections are desired per zone, and how many boxes to plot based on the other user inputs.
Warning: Due to a current limitation of the Pine, this script is only allowed to plot up to 500 lines total. If you start to notice lines starting to disappear or you begin getting a script error, double check the input settings as the script may have crossed the 500 line threshold.
This can be used in conjunction with Fixed Range Volume Profile . Select the balance range with the Fixed Volume Profile . Note the Value Area High and Value Area Low prices and input those into the balance range High/Low inputs.
Use to create price targets from Balance Zone Breakouts
A recent example of this idea in action on ticker ES1! 2 hour chart where the balance range was found and the target (double the box size of the balance range) was hit.
Another example of this same concept but on a normal security like AAPL but on a 30 minute chart:
Extending the usefulness even further to crypto on BTCUSD with a 5 minute chart:
Use to create reference levels for future price action
The other way to utilize this is to provide future reference levels from a key balance range from the past.
Here is another example utilizing the AMD daily chart . First, a balance zone was noted for all of 2017:
Moving forward to the most recent price action in 2023, notice that the box extension levels are still fairly well respected almost 6 years later!
Advanced VWAP_Pullback Strategy_Trend-Template QualifierGeneral Description and Unique Features of this Script
Introducing the Advanced VWAP Momentum-Pullback Strategy (long-only) that offers several unique features:
1. Our script/strategy utilizes Mark Minervini's Trend-Template as a qualifier for identifying stocks and other financial securities in confirmed uptrends. Mark Minervini, a 2x US Investment Champion, developed the Trend-Template, which covers eight different and independent characteristics that can be adjusted and optimized in this trend-following strategy to ensure the best results. The strategy will only trigger buy-signals in case the optimized qualifiers are being met.
2. Our strategy is based on the supply/demand balance in the market, making it timeless and effective across all timeframes. Whether you are day trading using 1- or 5-min charts or swing-trading using daily charts, this strategy can be applied and works very well.
3. We have also integrated technical indicators such as the RSI and the MA / VWAP crossover into this strategy to identify low-risk pullback entries in the context of confirmed uptrends. By doing so, the risk profile of this strategy and drawdowns are being reduced to an absolute minimum.
Minervini’s Trend-Template and the ‘Stage-Analysis’ of the Markets
This strategy is a so-called 'long-only' strategy. This means that we only take long positions, short positions are not considered.
The best market environment for such strategies are periods of stable upward trends in the so-called stage 2 - uptrend.
In stable upward trends, we increase our market exposure and risk.
In sideways markets and downward trends or bear markets, we reduce our exposure very quickly or go 100% to cash and wait for the markets to recover and improve. This allows us to avoid major losses and drawdowns.
This simple rule gives us a significant advantage over most undisciplined traders and amateurs!
'The Trend is your Friend'. This is a very old but true quote.
What's behind it???
• 98% of stocks made their biggest gains in a Phase 2 upward trend.
• If a stock is in a stable uptrend, this is evidence that larger institutions are buying the stock sustainably.
• By focusing on stocks that are in a stable uptrend, the chances of profit are significantly increased.
• In a stable uptrend, investors know exactly what to expect from further price developments. This makes it possible to locate low-risk entry points.
The goal is not to buy at the lowest price – the goal is to buy at the right price!
Each stock goes through the same maturity cycle – it starts at stage 1 and ends at stage 4
Stage 1 – Neglect Phase – Consolidation
Stage 2 – Progressive Phase – Accumulation
Stage 3 – Topping Phase – Distribution
Stage 4 – Downtrend – Capitulation
This strategy focuses on identifying stocks in confirmed stage 2 uptrends. This in itself gives us an advantage over long-term investors and less professional traders.
By focusing on stocks in a stage 2 uptrend, we avoid losses in downtrends (stage 4) or less profitable consolidation phases (stages 1 and 3). We are fully invested and put our money to work for us, and we are fully invested when stocks are in their stage 2 uptrends.
But how can we use technical chart analysis to find stocks that are in a stable stage 2 uptrend?
Mark Minervini has developed the so-called 'trend template' for this purpose. This is an essential part of our JS-TechTrading pullback strategy. For our watchlists, only those individual values that meet the tough requirements of Minervini's trend template are eligible.
The Trend Template
• 200d MA increasing over a period of at least 1 month, better 4-5 months or longer
• 150d MA above 200d MA
• 50d MA above 150d MA and 200d MA
• Course above 50d MA, 150d MA and 200d MA
• Ideally, the 50d MA is increasing over at least 1 month
• Price at least 25% above the 52w low
• Price within 25% of 52w high
• High relative strength according to IBD.
NOTE: In this basic version of the script, the Trend-Template has to be used as a separate indicator on TradingView (Public Trend-Template indicators are available in TradingView – community scripts). It is recommended to only execute buy signals in case the stock or financial security is in a stage 2 uptrend, which means that the criteria of the trend-template are fulfilled.
This strategy can be applied to all timeframes from 5 min to daily.
The VWAP Momentum-Pullback Strategy
For the JS-TechTrading VWAP Momentum-Pullback Strategy, only stocks and other financial instruments that meet the selected criteria of Mark Minervini's trend template are recommended for algorithmic trading with this startegy.
A further prerequisite for generating a buy signals is that the individual value is in a short-term oversold state (RSI).
When the selling pressure is over and the continuation of the uptrend can be confirmed by the MA / VWAP crossover after reaching a price low, a buy signal is issued by this strategy.
Stop-loss limits and profit targets can be set variably. You also have the option to make use of the trailing stop exit strategy.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a technical indicator developed by Welles Wilder in 1978. The RSI is used to perform a market value analysis and identify the strength of a trend as well as overbought and oversold conditions. The indicator is calculated on a scale from 0 to 100 and shows how much an asset has risen or fallen relative to its own price in recent periods.
The RSI is calculated as the ratio of average profits to average losses over a certain period of time. A high value of the RSI indicates an overbought situation, while a low value indicates an oversold situation. Typically, a value > 70 is considered an overbought threshold and a value < 30 is considered an oversold threshold. A value above 70 signals that a single value may be overvalued and a decrease in price is likely , while a value below 30 signals that a single value may be undervalued and an increase in price is likely.
For example, let's say you're watching a stock XYZ. After a prolonged falling movement, the RSI value of this stock has fallen to 26. This means that the stock is oversold and that it is time for a potential recovery. Therefore, a trader might decide to buy this stock in the hope that it will rise again soon.
The MA / VWAP Crossover Trading Strategy
This strategy combines two popular technical indicators: the Moving Average (MA) and the Volume Weighted Average Price (VWAP). The MA VWAP crossover strategy is used to identify potential trend reversals and entry/exit points in the market.
The VWAP is calculated by taking the average price of an asset for a given period, weighted by the volume traded at each price level. The MA, on the other hand, is calculated by taking the average price of an asset over a specified number of periods. When the MA crosses above the VWAP, it suggests that buying pressure is increasing, and it may be a good time to enter a long position. When the MA crosses below the VWAP, it suggests that selling pressure is increasing, and it may be a good time to exit a long position or enter a short position.
Traders typically use the MA VWAP crossover strategy in conjunction with other technical indicators and fundamental analysis to make more informed trading decisions. As with any trading strategy, it is important to carefully consider the risks and potential rewards before making any trades.
This strategy is applicable to all timeframes and the relevant parameters for the underlying indicators (RSI and MA/VWAP) can be adjusted and optimized as needed.
Backtesting
Backtesting gives outstanding results on all timeframes and drawdowns can be reduced to a minimum level. In this example, the hourly chart for MCFT has been used.
Settings for backtesting are:
- Period from Jan 2020 until March 2023
- Starting capital 100k USD
- Position size = 25% of equity
- 0.01% commission = USD 2.50.- per Trade
- Slippage = 2 ticks
Other comments
- This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
- The combination of the Trend-Template and the RSI qualifiers results in a highly selective strategy which only considers the most promising swing-trading entries. As a result, you will normally only find a low number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
- Consequently, traders need to apply this strategy for a full watchlist rather than just one financial security.
Volatility Percentile (H-LINES)A simple script that adjusts the Volatility Percentile Indicator visibly in order to better accommodate entries/exits and certain trading setups/strategies.
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TL;DR - Remember after a full reset, we are looking for initial crosses UP on the UpperSwingline and crosses DOWN on the LowerSwingline for primary and secondary signal derivation.
Vice versa also works great but the prior method mentioned is a little more consistent in my experience, but you should mess around and optimise this for your own setups and strategies anyway.
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ORIGINAL SCRIPT HERE:
^Click image for a redirect to that script.
ALL CREDIT GOES TO: www.tradingview.com
He wrote everything so give credit where it's due, good bit of kit this here script is.
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HOW I USE MY VISUALLY ALTERED VERSION OF THIS SCRIPT
First of all, the alterations I've made seem only to be consistently viable with renko charts though if you can get the sought after results using candles or any other chart type then perfect, but be wary. All my back-testing done only with LinReg, HMA and SWMA - ATR type settings exclusively on renko charts. The changes I've made to the original script essentially just turns it visibly into an oscillator and uses a couple horizontal lines to generate signals, very simple - absolutely nothing has changed in the actual code of calculating this indicator.
What I believe my adjustments have achieved is quite simple. A full reset/oscillation on the indicator tries to map the strongest parts of a move or at least the part of the move where volume and the rate of transactions is at its peak to even facilitate said move. *take this statement with a pinch of salt though I do believe it's interacting with accumulation/distribution patterns, which is expected of volatility*
For ease of communication let's refer to the area between the the first UpperSwingline cross to the subsequent LowerSwingline cross, as the primary move. Then afterwards when it crosses the UpperSwingline again to make the full reset, the area in between those two points referred to as the secondary move.
Though more interestingly/practically the indicator ends up giving you two signals. In order for this to work we have to first decide that a spike up in volatility which crosses the UpperSwingline implies a significant level of interest at that price level. Usually that means a reversal is brewing, if price has already moved, trended and is approaching a certain area of value; which causes a spike of new positions to be taken, then you know that this is a level where contrarians are looking to enter. Now here's the tricky part, when volatility crosses the LowerSwingline price action becomes a little more open for interpretation, the way I personally like to look at this secondary signal is the potential for an exhaustion period to prolong itself a little longer. I know that's not the perfect analysis for what's going on, a more in-depth look into what's going on would best be described using Elliott Wave Theory, if a cross on the UpperSwingline near a significant area of value gives us a reversal trade lets just assume for the sake of argument that a new Elliott Wave can begin forming here. Making the move from that initial UpperSwngline cross to the cross on the LowerSwingline, the area that encompasses those two points: the impulse wave. After this point my analogy kind of falls apart and sadly my knowledge just isn't what it needs to be in order for me to properly analyse what's going on here but I must digress. Price after crossing the LowerSwingline up until the point where it makes a full reset by crossing the UpperSwingline again, within this area price seems to do either one of two things:
Situation 1 - Most likely occurs after a major trend reversal from major support/resistance or area of value (price has trended to new territory, maybe spent time a little time consolidating but hasn't broken the key level, momentum shifts, price action breaks current structure and you get the signal that primary move is a reversal) = Exhaustion Period, price will continue in direction of primary move during the secondary move. This here is for our trend-followers, you wanna take a continuation trade? Just wait for the pullback/rally to hit a FiB retracement level and enter - or any other means to find a decent support/resistance to enter.
Situation 2 - Most likely occurs when market enters a range or consolidation (price was previously seen as being at either a discount or premium so Situation 1 could have already played out and now you're looking at a full reset after that, imagine this spot to be the centre line of a linear regression channel or bang in the middle of your range, could even occur if price breaks a key moving average and decides it ought to consolidate around it for a while. Basically at any point where a somewhat prolonged consolidation is expected and not a quick reversal) = Corrective Wave, price will move against the direction of primary move during the secondary move. Now you might be expecting me to say this ones for you reversal traders but not really, if this is occurring then there probably isn't a definitive direction the market has chosen so you can use this opportunity to take range trades in the direction or against the direction of whatever the current trend or latest trend was depending on whatever slight bias you may have. <--- Situation 2 is very useful for finding cleaner entries if you do have a trend bias, say price underwent Situation 1, is now at key moving average but your bias is that it will break and continue up, so you wait and allow the secondary move of Situation 2 to take your entry to a much better R:R before entering a position.
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[Hoss] OBV RSIThe OBV ( On Balance Volume ) RSI ( Relative Strength Index ) indicator is an innovative tool that combines the power of OBV and RSI to provide traders with a comprehensive view of the market's momentum and volume dynamics. This combination enables users to make better-informed trading decisions by analyzing the relationship between price, volume , and relative strength .
The script starts by calculating the On Balance Volume , which is a cumulative volume-based indicator that measures buying and selling pressure. The OBV increases when the closing price is higher than the previous closing price and decreases when the closing price is lower than the previous closing price. This helps traders identify potential price trend reversals based on volume accumulation or distribution.
Next, the script computes the Relative Strength Index ( RSI ) based on the OBV values, offering a unique perspective on the market's momentum through the lens of volume . The RSI is a popular momentum indicator that ranges from 0 to 100 and helps traders identify overbought and oversold conditions. In this script, the user can define the RSI length and the higher and lower levels (default values are 70 and 30, respectively).
A distinctive feature of this OBV RSI indicator is the addition of a monitor that counts the number of times the RSI crosses above the higher level and below the lower level within a user-defined lookback period. This monitor is displayed as a table in the bottom right corner of the chart and can be enabled or disabled through an input option.
The cross count monitor provides valuable insights into the historical frequency of RSI crossings, helping traders to identify potential trading opportunities based on historical price behavior around these levels.
RS Stage AnalysisThis script trying to detect different lifecycle of stock / Stages.
There is mainly 4 stages of stocks.
1) stage 1 - Accumulation = color = aqua
2) stage 2 - Advancing = color = green
3) stage 3 - Distribution = color = yellow
4) stage 4 - Declining = color = red
At some point the condition i wrote wont detect any stage.
JS-TechTrading: VWAP Momentum_Pullback StrategyGeneral Description and Unique Features of this Script
Introducing the VWAP Momentum-Pullback Strategy (long-only) that offers several unique features:
1. Our script/strategy utilizes Mark Minervini's Trend-Template as a qualifier for identifying stocks and other financial securities in confirmed uptrends.
NOTE: In this basic version of the script, the Trend-Template has to be used as a separate indicator on TradingView (Public Trend-Template indicators are available on TradingView – community scripts). It is recommended to only execute buy signals in case the stock or financial security is in a stage 2 uptrend, which means that the criteria of the trend-template are fulfilled.
2. Our strategy is based on the supply/demand balance in the market, making it timeless and effective across all timeframes. Whether you are day trading using 1- or 5-min charts or swing-trading using daily charts, this strategy can be applied and works very well.
3. We have also integrated technical indicators such as the RSI and the MA / VWAP crossover into this strategy to identify low-risk pullback entries in the context of confirmed uptrends. By doing so, the risk profile of this strategy and drawdowns are being reduced to an absolute minimum.
Minervini’s Trend-Template and the ‘Stage-Analysis’ of the Markets
This strategy is a so-called 'long-only' strategy. This means that we only take long positions, short positions are not considered.
The best market environment for such strategies are periods of stable upward trends in the so-called stage 2 - uptrend.
In stable upward trends, we increase our market exposure and risk.
In sideways markets and downward trends or bear markets, we reduce our exposure very quickly or go 100% to cash and wait for the markets to recover and improve. This allows us to avoid major losses and drawdowns.
This simple rule gives us a significant advantage over most undisciplined traders and amateurs!
'The Trend is your Friend'. This is a very old but true quote.
What's behind it???
• 98% of stocks made their biggest gains in a Phase 2 upward trend.
• If a stock is in a stable uptrend, this is evidence that larger institutions are buying the stock sustainably.
• By focusing on stocks that are in a stable uptrend, the chances of profit are significantly increased.
• In a stable uptrend, investors know exactly what to expect from further price developments. This makes it possible to locate low-risk entry points.
The goal is not to buy at the lowest price – the goal is to buy at the right price!
Each stock goes through the same maturity cycle – it starts at stage 1 and ends at stage 4
Stage 1 – Neglect Phase – Consolidation
Stage 2 – Progressive Phase – Accumulation
Stage 3 – Topping Phase – Distribution
Stage 4 – Downtrend – Capitulation
This strategy focuses on identifying stocks in confirmed stage 2 uptrends. This in itself gives us an advantage over long-term investors and less professional traders.
By focusing on stocks in a stage 2 uptrend, we avoid losses in downtrends (stage 4) or less profitable consolidation phases (stages 1 and 3). We are fully invested and put our money to work for us, and we are fully invested when stocks are in their stage 2 uptrends.
But how can we use technical chart analysis to find stocks that are in a stable stage 2 uptrend?
Mark Minervini has developed the so-called 'trend template' for this purpose. This is an essential part of our JS-TechTrading pullback strategy. For our watchlists, only those individual values that meet the tough requirements of Minervini's trend template are eligible.
The Trend Template
• 200d MA increasing over a period of at least 1 month, better 4-5 months or longer
• 150d MA above 200d MA
• 50d MA above 150d MA and 200d MA
• Course above 50d MA, 150d MA and 200d MA
• Ideally, the 50d MA is increasing over at least 1 month
• Price at least 25% above the 52w low
• Price within 25% of 52w high
• High relative strength according to IBD.
NOTE: In this basic version of the script, the Trend-Template has to be used as a separate indicator on TradingView (Public Trend-Template indicators are available in TradingView – community scripts). It is recommended to only execute buy signals in case the stock or financial security is in a stage 2 uptrend, which means that the criteria of the trend-template are fulfilled.
This strategy can be applied to all timeframes from 5 min to daily.
The VWAP Momentum-Pullback Strateg y
For the JS-TechTrading VWAP Momentum-Pullback Strategy, only stocks and other financial instruments that meet the selected criteria of Mark Minervini's trend template are recommended for algorithmic trading with this startegy.
A further prerequisite for generating a buy signals is that the individual value is in a short-term oversold state (RSI).
When the selling pressure is over and the continuation of the uptrend can be confirmed by the MA / VWAP crossover after reaching a price low, a buy signal is issued by this strategy.
Stop-loss limits and profit targets can be set variably.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a technical indicator developed by Welles Wilder in 1978. The RSI is used to perform a market value analysis and identify the strength of a trend as well as overbought and oversold conditions. The indicator is calculated on a scale from 0 to 100 and shows how much an asset has risen or fallen relative to its own price in recent periods.
The RSI is calculated as the ratio of average profits to average losses over a certain period of time. A high value of the RSI indicates an overbought situation, while a low value indicates an oversold situation. Typically, a value > 70 is considered an overbought threshold and a value < 30 is considered an oversold threshold. A value above 70 signals that a single value may be overvalued and a decrease in price is likely , while a value below 30 signals that a single value may be undervalued and an increase in price is likely.
For example, let's say you're watching a stock XYZ. After a prolonged falling movement, the RSI value of this stock has fallen to 26. This means that the stock is oversold and that it is time for a potential recovery. Therefore, a trader might decide to buy this stock in the hope that it will rise again soon.
The MA / VWAP Crossover Trading Strategy
This strategy combines two popular technical indicators: the Moving Average (MA) and the Volume Weighted Average Price (VWAP). The MA VWAP crossover strategy is used to identify potential trend reversals and entry/exit points in the market.
The VWAP is calculated by taking the average price of an asset for a given period, weighted by the volume traded at each price level. The MA, on the other hand, is calculated by taking the average price of an asset over a specified number of periods. When the MA crosses above the VWAP, it suggests that buying pressure is increasing, and it may be a good time to enter a long position. When the MA crosses below the VWAP, it suggests that selling pressure is increasing, and it may be a good time to exit a long position or enter a short position.
Traders typically use the MA VWAP crossover strategy in conjunction with other technical indicators and fundamental analysis to make more informed trading decisions. As with any trading strategy, it is important to carefully consider the risks and potential rewards before making any trades.
This strategy is applicable to all timeframes and the relevant parameters for the underlying indicators (RSI and MA/VWAP) can be adjusted and optimized as needed.
Backtesting
Backtesting gives outstanding results on all timeframes and drawdowns can be reduced to a minimum level. In this example, the hourly chart for MCFT has been used.
Settings for backtesting are:
- Period from April 2020 until April 2021 (1 yr)
- Starting capital 100k USD
- Position size = 25% of equity
- 0.01% commission = USD 2.50.- per Trade
- Slippage = 2 ticks
Other comments
• This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
• The RSI qualifier is highly selective and filters out the most promising swing-trading entries. As a result, you will normally only find a low number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
• As a result, traders need to apply this strategy for a full watchlist rather than just one financial security.
Average Traded MoneyAs its name indicates, this indicator shows us the average amount of money traded in a specific asset.
It is calculated by multiplying the volume by the price (calculated on hl2) on each trading day and from there calculate a moving average of 25 periods.
The indicator only shows this 25 period moving average .
What is it for?
Well, it helps us to find out if there are variations in the amount of money traded and therefore identify areas of accumulation and distribution and thus be able to anticipate changes in trend and enter together with the large funds and thus obtain benefits.
It is something very simple to calculate but strangely no one had published it in TradingView yet. I think it is very useful and shows us information that is hidden in the volatility of a simple volume indicator. The simple volume indicator only shows us the number of shares traded but not the money that has been traded, that's why my indicator can be helpful. By averaging this data, we smooth the highs and lows of money traded and we get a cleaner graphic that gives us a better interpretation of what is happening with the negotiation of the asset.
mentfx Triple MThis indicator colors the wick of a candle on any timeframe based on whether the following rules are met:
A colored wick below a candle indicates that the candles low was lower than the previous candles low, and the body of the candle closed above the previous candles low.
A colored wick above a candle indicates that the candles high was higher than the previous candles high, and the body of the candle closed below the previous candles high.
The idea behind this indicator is to fractally see a distribution (colored wick above a candle) or an accumulation (colored wick below a candle) as a confirmation once you have established a directional trend or turning point. This indicator will color any wick that meets these conditions. This indicator is meant more so as an entry confirmation, coupling it with your understanding of turning points, or likely points that price will continue in a direction - this can provide a nice confirmation.
Dominant Cycle Detection OscillatorThis is a Dominant Cycle Detection Oscillator that searches multiple ranges of wavelengths within a spectrum. Choose one of 4 different dominant cycle detection methods (MESA MAMA cycle, Pearson Autocorrelation, Discreet Fourier Transform, and Phase Accumulation) to determine the most dominant cycles and see the historical results. Straight lines can indicate a steady dominant cycle; while Wavy lines might indicate a varying dominant cycle length. The steadier the cycle, the easier it may be to predict future events in that cycle (keep the log scale in mind when considering steadiness). The presence of evenly divisible (or harmonic) cycle lengths may also indicate stronger cycles; for example, 19, 38, and 76 dominant lengths for the 2x, 4x, and 8x cycles. Practically, a trader can use these cycle outputs as the default settings for other Hurst/cycle indicators. For example, if you see dominant cycle oscillator outputs of 38 & 76 for the 4x and 8x cycle respectively, you might want to test/use defaults of 38 & 76 for the 4x & 8x lengths in the bandpass, diamond/semi-circle notation, moving average & envelope, and FLD instead of the defaults 40 & 80 for a more fine-tuned analysis.
Muting the oscillator's historical lines and overlaying the indicator on the chart can visually cue a trader to the cycle lengths without taking up extra panes. The DFT Cycle lengths with muted historical lines have been overlayed on the chart in the photo.
The y-axis scale for this indicator's pane (just the oscillator pane, not the chart) most likely needs to be changed to logarithmic to look normal, but it depends on the search ranges in your settings. There are instructions in the settings. In the photo, the MESA MAMA scale is set to regular (not logarithmic) which demonstrates how difficult it can be to read if not changed.
In the Spectral Analysis chapter of Hurst's book Profit Magic, he recommended doing a Fourier analysis across a spectrum of frequencies. Hurst acknowledged there were many ways to do this analysis but recommended the method described by Lanczos. Currently in this indicator, the closest thing to the method described by Lanczos is the DFT Discreet Fourier Transform method.
Shoutout to @lastguru for the dominant cycle library referenced in this code. He mentioned that he may add more methods in the future.
ONCHAIN: BTC HOLDERS/RETAIL Assets RatioThis indicator is based on on-chain data developed exclusively for Bitcoin
This indicator measures the ratio of Hodlers' assets to Retails' assets based on the On-chain data of Intotheblock platform (you can find it on Sources). This is consistent with Wyckoff's theory of accumulation and distribution. At the top of the market, Hodlers have sold most of their assets to retailers, so this ratio is at its lowest. At market bottoms, Hodlers accumulates the asset at low prices. The uptrend and downtrend of this indicator can also be used to confirm the uptrend or downtrend of the Bitcoin market.
Liquidity Swings [LuxAlgo]The liquidity swings indicator highlights swing areas with existent trading activity. The number of times price revisited a swing area is highlighted by a zone delimiting the swing areas. Additionally, the accumulated volume within swing areas is highlighted by labels on the chart. An option to filter out swing areas with volume/counts not reaching a user-set threshold is also included.
This indicator by its very nature is not real-time and is meant for descriptive analysis alongside other components of the script. This is normal behavior for scripts detecting pivots as a part of a system and it is important you are aware the pivot labels are not designed to be traded in real-time themselves.
🔶 USAGE
The indicator can be used to highlight significant swing areas, these can be accumulation/distribution zones on lower timeframes and might play a role as future support or resistance.
Swing levels are also highlighted, when a swing level is broken it is displayed as a dashed line. A broken swing high is a bullish indication, while a broken swing low is a bearish indication.
Filtering swing areas by volume allows to only show significant swing areas with an higher degree of liquidity. These swing areas can be wider, highlighting higher volatility, or might have been visited by the price more frequently.
🔶 SETTINGS
Pivot Lookback : Lookback period used for the calculation of pivot points.
Swing Area : Determine how the swing area is calculated, "Wick Extremity" will use the range from price high to the maximum between price close/open in case of a swing high, and the range from price low to the minimum between price close/open in case of a swing low. "Full Range" will use the full candle range as swing area.
Intrabar Precision : Use intrabar data to calculate the accumulated volume within a swing area, this allows obtaining more precise results.
Filter Areas By : Determine how swing areas are filtered out, "Count" will filter out swing areas where price visited the area a number of time inferior to the user set threshold. "Volume" will filter out swing areas where the accumulated volume within the area is inferior to the user set threshold.
🔹 Style
Swing High : Show swing highs.
Swing Low : Show swing lows.
Label Size : Size of the labels on the chart.
Note that swing points are confirmed after Pivot Lookback bars, as such all elements are displayed retrospectively.
VolumeFlowVolume & price have a direct correlation with each other. If the fundamental value changes, the price changes and volume follows. If the technicals change, volume changes and price follows.
Because the relationship between volume and price is so connected, I created a script highlighting important volume flow measurements.
The VolumeFlow indicator combines several volume measurements into 1 indicator.
1) Volume net inflow / outflow
2) Volume total flow change
3) Volume cumulation flow
The VolumeFlow indicator uses a scale from 100 high to -100 low, with the zero level being neutral.
The VolumeFlow indicator has 4 inputs:
1) +Volume-
2) VolumeFast
3) VolumeSlow
4) Accum/Dist
Default inputs:
+Volume-
length = 1, color = + green or - red
VolumeFast
length = 2, color = blue
VolumeSlow
length = 3, color = white
Accum/Dist
length = 5, color = brown
Horizontal lines
length = 100, 50, 0, -50, -100, color = white
* The VolumeFlow indicator uses altered pieces of code from my Options360 FibVIP indicator, Tradingview "Up / down volume" indicator and Tradingview "Accumulation/Distribution" indicator. *
