XPloRR MA-Trailing-Stop StrategyXPloRR MA-Trailing-Stop Strategy
Long term MA-Trailing-Stop strategy with Adjustable Signal Strength to beat Buy&Hold strategy
None of the strategies that I tested can beat the long term Buy&Hold strategy. That's the reason why I wrote this strategy.
Purpose: beat Buy&Hold strategy with around 10 trades. 100% capitalize sold trade into new trade.
My buy strategy is triggered by the fast buy EMA (blue) crossing over the slow buy SMA curve (orange) and the fast buy EMA has a certain up strength.
My sell strategy is triggered by either one of these conditions:
the EMA(6) of the close value is crossing under the trailing stop value (green) or
the fast sell EMA (navy) is crossing under the slow sell SMA curve (red) and the fast sell EMA has a certain down strength.
The trailing stop value (green) is set to a multiple of the ATR(15) value.
ATR(15) is the SMA(15) value of the difference between the high and low values.
The scripts shows a lot of graphical information:
The close value is shown in light-green. When the close value is lower then the buy value, the close value is shown in light-red. This way it is possible to evaluate the virtual losses during the trade.
the trailing stop value is shown in dark-green. When the sell value is lower then the buy value, the last color of the trade will be red (best viewed when zoomed)(in the example, there are 2 trades that end in gain and 2 in loss (red line at end))
the EMA and SMA values for both buy and sell signals are shown as a line
the buy and sell(close) signals are labeled in blue
How to use this strategy?
Every stock has it's own "DNA", so first thing to do is tune the right parameters to get the best strategy values voor EMA , SMA, Strength for both buy and sell and the Trailing Stop (#ATR).
Look in the strategy tester overview to optimize the values Percent Profitable and Net Profit (using the strategy settings icon, you can increase/decrease the parameters)
Then keep using these parameters for future buy/sell signals only for that particular stock.
Do the same for other stocks.
Important : optimizing these parameters is no guarantee for future winning trades!
Here are the parameters:
Fast EMA Buy: buy trigger when Fast EMA Buy crosses over the Slow SMA Buy value (use values between 10-20)
Slow SMA Buy: buy trigger when Fast EMA Buy crosses over the Slow SMA Buy value (use values between 30-100)
Minimum Buy Strength: minimum upward trend value of the Fast SMA Buy value (directional coefficient)(use values between 0-120)
Fast EMA Sell: sell trigger when Fast EMA Sell crosses under the Slow SMA Sell value (use values between 10-20)
Slow SMA Sell: sell trigger when Fast EMA Sell crosses under the Slow SMA Sell value (use values between 30-100)
Minimum Sell Strength: minimum downward trend value of the Fast SMA Sell value (directional coefficient)(use values between 0-120)
Trailing Stop (#ATR): the trailing stop value as a multiple of the ATR(15) value (use values between 2-20)
Example parameters for different stocks (Start capital: 1000, Order=100% of equity, Period 1/1/2005 to now) compared to the Buy&Hold Strategy(=do nothing):
BEKB(Bekaert): EMA-Buy=12, SMA-Buy=44, Strength-Buy=65, EMA-Sell=12, SMA-Sell=55, Strength-Sell=120, Stop#ATR=20
NetProfit: 996%, #Trades: 6, %Profitable: 83%, Buy&HoldProfit: 78%
BAR(Barco): EMA-Buy=16, SMA-Buy=80, Strength-Buy=44, EMA-Sell=12, SMA-Sell=45, Strength-Sell=82, Stop#ATR=9
NetProfit: 385%, #Trades: 7, %Profitable: 71%, Buy&HoldProfit: 55%
AAPL(Apple): EMA-Buy=12, SMA-Buy=45, Strength-Buy=40, EMA-Sell=19, SMA-Sell=45, Strength-Sell=106, Stop#ATR=8
NetProfit: 6900%, #Trades: 7, %Profitable: 71%, Buy&HoldProfit: 2938%
TNET(Telenet): EMA-Buy=12, SMA-Buy=45, Strength-Buy=27, EMA-Sell=19, SMA-Sell=45, Strength-Sell=70, Stop#ATR=14
NetProfit: 129%, #Trade
Search in scripts for "ha溢价率"
Inverse Fisher Transform COMBO STO+RSI+CCIv2 by KIVANÇ fr3762A combined 3in1 version of pre shared INVERSE FISHER TRANSFORM indicators on RSI , on STOCHASTIC and on CCIv2 to provide space for 2 more indicators for users...
About John EHLERS:
From California, USA, John is a veteran trader. With 35 years trading experience he has seen it all. John has an engineering background that led to his technical approach to trading ignoring fundamental analysis (with one important exception).
John strongly believes in cycles. He’d rather exit a trade when the cycle ends or a new one starts. He uses the MESA principle to make predictions about cycles in the market and trades one hundred percent automatically.
In the show John reveals:
• What is more appropriate than trading individual stocks
• The one thing he relies upon in his approach to the market
• The detail surrounding his unique trading style
• What important thing underpins the market and gives every trader an edge
About INVERSE FISHER TRANSFORM:
The purpose of technical indicators is to help with your timing decisions to buy or
sell. Hopefully, the signals are clear and unequivocal. However, more often than
not your decision to pull the trigger is accompanied by crossing your fingers.
Even if you have placed only a few trades you know the drill.
In this article I will show you a way to make your oscillator-type indicators make
clear black-or-white indication of the time to buy or sell. I will do this by using the
Inverse Fisher Transform to alter the Probability Distribution Function ( PDF ) of
your indicators. In the past12 I have noted that the PDF of price and indicators do
not have a Gaussian, or Normal, probability distribution. A Gaussian PDF is the
familiar bell-shaped curve where the long “tails” mean that wide deviations from
the mean occur with relatively low probability. The Fisher Transform can be
applied to almost any normalized data set to make the resulting PDF nearly
Gaussian, with the result that the turning points are sharply peaked and easy to
identify. The Fisher Transform is defined by the equation
1)
Whereas the Fisher Transform is expansive, the Inverse Fisher Transform is
compressive. The Inverse Fisher Transform is found by solving equation 1 for x
in terms of y. The Inverse Fisher Transform is:
2)
The transfer response of the Inverse Fisher Transform is shown in Figure 1. If
the input falls between –0.5 and +0.5, the output is nearly the same as the input.
For larger absolute values (say, larger than 2), the output is compressed to be no
larger than unity . The result of using the Inverse Fisher Transform is that the
output has a very high probability of being either +1 or –1. This bipolar
probability distribution makes the Inverse Fisher Transform ideal for generating
an indicator that provides clear buy and sell signals.
Creator: John EHLERS
Inverse Fisher Transform on SMI (Stochastic Momentum Index)Inverse Fisher Transform on SMI (Stochastic Momentum Index)
About John EHLERS:
From California, USA, John is a veteran trader. With 35 years trading experience he has seen it all. John has an engineering background that led to his technical approach to trading ignoring fundamental analysis (with one important exception).
John strongly believes in cycles. He’d rather exit a trade when the cycle ends or a new one starts. He uses the MESA principle to make predictions about cycles in the market and trades one hundred percent automatically.
In the show John reveals:
• What is more appropriate than trading individual stocks
• The one thing he relies upon in his approach to the market
• The detail surrounding his unique trading style
• What important thing underpins the market and gives every trader an edge
About INVERSE FISHER TRANSFORM:
The purpose of technical indicators is to help with your timing decisions to buy or
sell. Hopefully, the signals are clear and unequivocal. However, more often than
not your decision to pull the trigger is accompanied by crossing your fingers.
Even if you have placed only a few trades you know the drill.
In this article I will show you a way to make your oscillator-type indicators make
clear black-or-white indication of the time to buy or sell. I will do this by using the
Inverse Fisher Transform to alter the Probability Distribution Function (PDF) of
your indicators. In the past12 I have noted that the PDF of price and indicators do
not have a Gaussian, or Normal, probability distribution. A Gaussian PDF is the
familiar bell-shaped curve where the long “tails” mean that wide deviations from
the mean occur with relatively low probability. The Fisher Transform can be
applied to almost any normalized data set to make the resulting PDF nearly
Gaussian, with the result that the turning points are sharply peaked and easy to
identify. The Fisher Transform is defined by the equation
1)
Whereas the Fisher Transform is expansive, the Inverse Fisher Transform is
compressive. The Inverse Fisher Transform is found by solving equation 1 for x
in terms of y. The Inverse Fisher Transform is:
2)
The transfer response of the Inverse Fisher Transform is shown in Figure 1. If
the input falls between –0.5 and +0.5, the output is nearly the same as the input.
For larger absolute values (say, larger than 2), the output is compressed to be no
larger than unity. The result of using the Inverse Fisher Transform is that the
output has a very high probability of being either +1 or –1. This bipolar
probability distribution makes the Inverse Fisher Transform ideal for generating
an indicator that provides clear buy and sell signals.
DepthHouse - Moving Average ChannelsThe indicator Moving Average Channels was created for experimental purposes due to the parabolic moves BTC has made in the recent past.
How it works:
The basis, or center line, is a standard moving average that is set by the user.
The bands are then a customizable percentage of the basis.
Which based on the settings, could serve as possible support and resistance.
DepthHouse – Moving Average Channels has been published for you all to see and try for yourselves.
Maybe this indicator has uses elsewhere? If you find something feel free to post it in the comments below!
If you like this indicator, please drop a like or comment!
They are very much appreciated!
Be sure to go to my profile and check out my other indicators!
OHLC Volatility Estimators by @Xel_arjonaDISCLAIMER:
The Following indicator/code IS NOT intended to be a formal investment advice or recommendation by the author, nor should be construed as such. Users will be fully responsible by their use regarding their own trading vehicles/assets.
The embedded code and ideas within this work are FREELY AND PUBLICLY available on the Web for NON LUCRATIVE ACTIVITIES and must remain as is by Creative-Commons as TradingView's regulations. Any use, copy or re-use of this code should mention it's origin as it's authorship.
WARNING NOTICE!
THE INCLUDED FUNCTION MUST BE CONSIDERED AS DEBUGING CODE The models included in the function have been taken from openly sources on the web so they could have some errors as in the calculation scheme and/or in it's programatic scheme. Debugging are welcome.
WHAT'S THIS?
Here's a full collection of candle based (compressed tick) Volatility Estimators given as a function, openly available for free, it can print IMPLIED VOLATILITY by an external symbol ticker like INDEX:VIX.
Models included in the volatility calculation function:
CLOSE TO CLOSE: This is the classic estimator by rule, sometimes referred as HISTORICAL VOLATILITY and is the must common, accepted and widely used out there. Is based on traditional Standard Deviation method derived from the logarithm return of current close from yesterday's.
ELASTIC WEIGHTED MOVING AVERAGE: This estimator has been used by RiskMetriks®. It's calculation is based on an ElasticWeightedMovingAverage Standard Deviation method derived from the logarithm return of current close from yesterday's. It can be viewed or named as an EXPONENTIAL HISTORICAL VOLATILITY model.
PARKINSON'S: The Parkinson number, or High Low Range Volatility, developed by the physicist, Michael Parkinson, in 1980 aims to estimate the Volatility of returns for a random walk using the high and low in any particular period. IVolatility.com calculates daily Parkinson values. Prices are observed on a fixed time interval. n=10, 20, 30, 60, 90, 120, 150, 180 days.
ROGERS-SATCHELL: The Rogers-Satchell function is a volatility estimator that outperforms other estimators when the underlying follows a Geometric Brownian Motion (GBM) with a drift (historical data mean returns different from zero). As a result, it provides a better volatility estimation when the underlying is trending. However, this Rogers-Satchell estimator does not account for jumps in price (Gaps). It assumes no opening jump. The function uses the open, close, high, and low price series in its calculation and it has only one parameter, which is the period to use to estimate the volatility.
YANG-ZHANG: Yang and Zhang were the first to derive an historical volatility estimator that has a minimum estimation error, is independent of the drift, and independent of opening gaps. This estimator is maximally 14 times more efficient than the close-to-close estimator.
LOGARITHMIC GARMAN-KLASS: The former is a pinescript transcript of the model defined as in iVolatility . The metric used is a combination of the overnight, high/low and open/close range. Such a volatility metric is a more efficient measure of the degree of volatility during a given day. This metric is always positive.
Fractals and Levels by JustUncleLEven though there are a many other Fractal and Level indicators, this indicator has some unique features. The indicator will display Fractals, fractal levels and HH/LL points, they will only be drawn after they have completed. Also the indicator has options to :
Show Ideal Fractals Only.
Use Renko Style Fractals, where open/close values are used instead of high/low to find Fractals. This is used to show the correct Fractals when Renko Wicks are enabled.
Has an optional Filter to only display Fractals that are above/below a MA Ribbon.
References:
This code is based on Fractal Levels V8 by RicardoSantos
This is a Renko Chart with "Renko Style Fractals" enabled, notice that the wicks are ignored and only the true Bricks are used for Fractals:
Adaptive Donchian ChannelThis indicator adds a level of adaptivity to the simple Donchian Channel by adjusting the sensitivity (lookback periods) of the channel's upper and lower bounds based on the amount of time that has elapsed since the price has hit/expanded the channel boundaries. Comparing the results of this indicator to the standard Donchian Channel, the readier level of responsiveness may prove self-evident.
METHODOLOGY:
Specifically, the more recently the channel was expanded in one direction, the longer the lookback period grows in that direction. Conversely, if the channel has not been expanded in a given direction, the lookback period will contract so as to allow for a tighter channel.
For example, let the initial lookback period be 20 bars and let the factor argument be 0.1 (or 2 bars to start, as 20*0.1 = 2). Now say the current bar sets a new 20-period high. Then the lookback period for the upper bound is expanded by 2 bars to 22, and the lookback period for the lower bound is contracted by 2 bars to 18, thereby making it simultaneously harder to set new highs and easier to set new lows (and vice versa for hitting new lows). If neither a new high nor a new low is formed, both periods contract by the given factor.
Guth_3X_ConfirmThis indicator has three built in indicators based on the SMA of HIGH, SMA of LOW, and Stochastic. The baseline indicator is the retreats after departures from SMA of HIGH and LOW.
The first time a HIGH that is above the SMA HIGH has a lower HIGH but it still above the SMA HIGH, a (-) will appear at the bottom. This signals an aggressive entry point for potential coming downtrend. The second time the HIGH produces a lower high but is still above the SMA HIGH, a (S) will appear at the bottom which signals a more conservative entry point for potential coming downtrend. All of the opposite information is true of reversals beyond the SMA LOW.
When these reversals appear the same time the Stochastic is overbought or oversold, a red bar (overbought and potentially coming down) or a green bar (oversold and potentially coming up) will appear. NOTE: Aggressive symbols occur more often and will always occur when a conservative symbol appears. When a conservative indicator and respective overbought/oversold level occur at the same time, the bar is darker in color.
You can enter positions at any one of the indicators, however, the darker bars are what I look for. This has a high success rate but cannot guarantee results every time. I recommend adjusting the SMA, and Stoch parameters as well as time periods. I have had success with this indicator while day trading the 5, 10, 15, 30, 65 minute periods as well as daily and weekly periods. Every symbol traded can provide differing results based on the parameters used.
Please feel free to leave feedback and I know this can work well for you!
AlphaAlpha is a measure of the active return on an investment, the performance of that investment compared to the S&P500 index, where 0.01 = 1%
alpha < 0: the investment has earned too little for its risk (or, was too risky for the return)
alpha = 0: the investment has earned a return adequate for the risk taken
alpha > 0: the investment has a return in excess of the reward for the assumed risk
Mister Transistor 3.0This is a general purpose very flexible program to test the effectiveness of HA bars.
Please note that if you are charting at tradingview using Heikin-Ashi charting, your system will be trading fictitious prices even if you check the "use real prices" box. Thought you might like to know that before you lose all your money.
This program performs the HA calcs internally thus allowing you to use HA bars on a standard bar chart and obtaining real prices for your trades.
Courtesy of Boffin Hollow Lab
Author: Tarzan the Ape Man
Trailing Sharpe RatioThe Sharpe ratio allows you to see whether or not an investment has historically provided a return appropriate to its risk level. A Sharpe ratio above one is acceptable, above 2 is good, and above 3 is excellent. A Sharpe ratio less than one would indicate that an investment has not returned a high enough return to justify the risk of holding it. Interesting in this example, SPY's one year avg Sharpe ratio is above 3. This would mean on average SPY returns 3x better returns than the risk associated with holding it, implying there is some sort of underlying value to the investment.
When the sharpe ratio is above its signal, this implies the investment is currently outperforming compared to its typical return, below the signal means the investment is currently under performing. A negative Shape would mean that the investment has not provided a positive return, and may be a possible short candidate.
Zweig Market Breadth Thrust Indicator [LazyBear]The Breadth Thrust (BT) indicator is a market momentum indicator developed by Dr. Martin Zweig. According to Dr. Zweig a Breadth Thrust occurs when, during a 10-day period, the Breadth Thrust indicator rises from below 40 percent to above 61.5 percent.
A "Thrust" indicates that the stock market has rapidly changed from an oversold condition to one of strength, but has not yet become overbought. This is very rare and has happened only a few times. Dr. Zweig also points out that most bull markets begin with a Breadth Thrust.
All parameters are configurable. You can draw BT for NYSE, NASDAQ, AMEX or based on combined data (i.e., AMEX+NYSE+NASD). There is also a "CUSTOM" mode supported, so you can enter your own ADV/DEC symbols.
More info:
Definition: www.investopedia.com
A Breadth Thrust Signal: www.mcoscillator.com
A Rare "Zweig" Buy Signal: www.moneyshow.com
Zweig Breadth Thrust: recessionalert.com
List of my public indicators: bit.ly
List of my app-store indicators: blog.tradingview.com
KK_Traders Dynamic Index_Bar HighlightingHey guys,
this is one of my favorite scripts as it represents a whole trading system that has given me very good results!
I have only used it on Bitcoin so far but I am sure it will also work for other instruments.
The original code to this was created by LazyBear, so all props to him for this great script!
I have linked his original post down below.
You can find the full rules to the system in this PDF (which has also been taken from LBs post):
www.forexmt4.com
Here is a short summary of the rules:
Go long when (all conditions have to be met):
The green line is above 50
The green line is above the red line
The green line is above the orange line
The close is above the upper Band of the Price Action Channel
The candles close is above its open
(The green line is below 68)
Go short when (all conditions have to be met):
The green line is below 50
The green line is below the red line
The green line is below the orange line
The close is below the lower band of the Price Action Channel
The candles close is below its open
(The green line is above 32)
Close when:
Any of these conditions aren't true anymore.
I have marked two of the rules in brackets as they seem to cut out a lot of the profits this system generates. You can choose to still use these rules by checking the box that says "Use Original Ruleset" in the options.
The system also contains rules regarding the Heiken Ashi bars. However these aren't as specific as the other rules. This is where your personal judgement comes in and this part is hard to explain. Take a look at the PDF I have linked to get a better understanding.
So far, this is just the TDI trading system and LBs script, now what have I changed?
I have incorporated the Price Action Channel to the system and changed it so that it highlights the bars whenever the system is giving a signal. As long as the bars are green the system is giving a long signal, as long as they are red the system is giving a short signal. Keep in mind that this doesn't consider the bar size of the HA bars. I recommend coloring all bars grey via the chart settings in order to be able to see the bar highlighting properly.
I have also published the Price Action Channel seperately in case some of you wish to view the Channel.
I am fairly new to creating scripts so use it with caution and let me know what you think!
LBs original post:
The seperate Price Action Channel script:
CM Stochastic POP Method 1 - Jake Bernstein_V1A good friend ucsgears recently published a Stochastic Pop Indicator designed by Jake Bernstein with a modified version he found.
I spoke to Jake this morning and asked if he had any updates to his Stochastic POP Trading Method. Attached is a PDF Jake published a while back (Please read for basic rules, which also Includes a New Method). I will release the Additional Method Tomorrow.
Jake asked me to share that he has Updated this Method Recently. Now across all symbols he has found the Stochastic Values of 60 and 30 to be the most profitable. NOTE - This can be Significantly Optimized for certain Symbols/Markets.
Jake Bernstein will be a contributor on TradingView when Backtesting/Strategies are released. Jake is one of the Top Trading System Developers in the world with 45+ years experience and he is going to teach how to create Trading Systems and how to Optimize the correct way.
Below are a few Strategy Results....Soon You Will Be Able To Find Results Like This Yourself on TradingView.com
BackTesting Results Example: EUR-USD Daily Chart Since 01/01/2005
Strategy 1:
Go Long When Stochastic Crosses Above 60. Go Short When Stochastic Crosses Below 30. Exit Long/Short When Stochastic has a Reverse Cross of Entry Value.
Results:
Total Trades = 164
Profit = 50, 126 Pips
Win% = 38.4%
Profit Factor = 1.35
Avg Trade = 306 Pips Profit
***Most Consecutive Wins = 3 ... Most Consecutive Losses = 6
Strategy 2:
Rules - Proprietary Optimization Jake Will Teach. Only Added 1 Additional Exit Rule.
Results:
Total Trades = 164
Profit = 62, 876 Pips!!!
Win% = 38.4%
Profit Factor = 1.44
Avg Trade = 383 Pips Profit
***Most Consecutive Wins = 3 ... Most Consecutive Losses = 6
Strategy 3:
Rules - Proprietary Optimization Jake Will Teach. Only added 1 Additional Exit Rule.
Results:
Winning Percent Increases to 72.6%!!! , Same Amount of Trades.
***Most Consecutive Wins = 21 ...Most Consecutive Losses = 4
Indicator Includes:
-Ability to Color Candles (CheckBox In Inputs Tab)
Green = Long Trade
Blue = No Trade
Red = Short Trade
-Color Coded Stochastic Line based on being Above/Below or In Between Entry Lines.
Link To Jakes PDF with Rules
dl.dropboxusercontent.com
We Are Witnessing A Historical Event With A Clear Outcome!!!"Full Disclosure: I came across this information from www.SentimenTrader.com
I have no financial affiliation…They provide incredible statistical facts on
The General Market, Currencies, and Futures. They offer a two week free trial.
I Highly Recommend.
The S&P 500 has gone 43 trading days without a 1% daily move, up or down.
which is the equivalent of two months and one day in trading days.
During this stretch, the S&P has gained more than 4%,
and it has notched a 52-week high recently as well.
Since 1952, there were nine other precedents. All of
these went 42 trading days without a 1% move, all of
them saw the S&P gain at least 4% during their streaks,
and all of them saw the S&P close at a 52-week highs.
***There was consistent weakness a week later, with only three
gainers, and all below +0.5%.
***After that, stocks did better, often continuing an Extraordinary move higher.
Charts can sometimes give us a better nuance than
numbers from a table, and from the charts we can see a
general pattern -
***if stocks held up well in the following
weeks, then they tended to do extremely well in the
months ahead.
***If stocks started to stumble after this two-
month period of calm, however, then the following months
tended to show a lot more volatility.
We already know we're seeing an exceptional market
environment at the moment, going against a large number
of precedents that argued for weakness here, instead of
the rally we've seen. If we continue to head higher in
spite of everything, these precedents would suggest that
we're in the midst of something that could be TRULY EXTRAORDINARY.
Trading Strategy based on BB/KC squeeze**** [Edit: New version (v02) posted, see the comments section for the code *****
Simple strategy. You only consider taking a squeeze play when both the upper and lower Bollinger Bands go inside the Keltner Channel. When the Bollinger Bands (BOTH lines) start to come out of the Keltner Channel, the squeeze has been released and a move is about to take place.
I have added more support indicators -- I highlight the bullish / bearish KC breaches (using GREEN/RED crosses) and a SAR to see where price action is trending.
Appreciate any feedback. Enjoy!
Color codes for v02:
----------------------------
When both the upper and lower Bollinger Bands go inside the Keltner Channel, the squeeze is on and is highlighted in RED.
When the Bollinger Bands (BOTH lines) start to come out of the Keltner Channel, the squeeze has been released and is highlighted in GREEN.
When one of the Bollinger Bands is out of Keltner Channel, no highlighting is done (this means, the background color shows up, so don't get confused if you have RED/GREEN in your chart's bground :))
Color codes for v01:
----------------------------
When both the upper and lower Bollinger Bands go inside the Keltner Channel, the squeeze is on and is highlighted in YELLOW.
When the Bollinger Bands (BOTH lines) start to come out of the Keltner Channel, the squeeze has been released and is highlighted in BLUE.
Quasimodo Pattern Strategy Back Test [TradingFinder] QM Trading🔵 Introduction
The QM pattern, also known as the Quasimodo pattern, is one of the popular patterns in price action, and it is often used by technical analysts. The QM pattern is used to identify trend reversals and provides a very good risk-to-reward ratio. One of the advantages of the QM pattern is its high frequency and visibility in charts.
Additionally, due to its strength, it is highly profitable, and as mentioned, its risk-to-reward ratio is very good. The QM pattern is highly popular among traders in supply and demand, and traders also use this pattern.
The Price Action QM pattern, like other Price Action patterns, has two types: Bullish QM and Bearish QM patterns. To identify this pattern, you need to be familiar with its types to recognize it.
🔵 Identifying the QM Pattern
🟣 Bullish QM
In the bullish QM pattern, as you can see in the image below, an LL and HH are formed. As you can see, the neckline is marked as a dashed line. When the price reaches this range, it will start its upward movement.
🟣 Bearish QM
The Price Action QM pattern also has a bearish pattern. As you can see in the image below, initially, an HH and LL are formed. The neckline in this image is the dashed line, and when the LL is formed, the price reaches this neckline. However, it cannot pass it, and the downward trend resumes.
🔵 How to Use
The Quasimodo pattern is one of the clearest structures used to identify market reversals. It is built around the concept of a structural break followed by a pullback into an area of trapped liquidity. Instead of relying on lagging indicators, this pattern focuses purely on price action and how the market reacts after exhausting one side of liquidity. When understood correctly, it provides traders with precise entry points at the transition between trend phases.
🟣 Bullish Quasimodo
A bullish Quasimodo forms after a clear downtrend when sellers start losing control. The market continues to make lower lows until a sudden higher high appears, signaling that buyers are entering with strength. Price then pulls back to retest the previous low, creating what is known as the Quasimodo low.
This area often becomes the final trap for sellers before the market shifts upward. A visible rejection or displacement from this zone confirms bullish momentum. Traders usually place entries near this level, stops below the low, and targets at previous highs or the next resistance zone. Combining the setup with demand zones or Fair Value Gaps increases its accuracy.
🟣 Bearish Quasimodo
A bearish Quasimodo forms near the top of an uptrend when buyers begin to lose strength. The market continues to make higher highs until a sudden lower low breaks the bullish structure, showing that selling pressure is entering the market. Price then retraces upward to retest the previous high, forming the Quasimodo high, where breakout buyers are often trapped.
Once rejection appears at this level, it indicates a likely reversal. Traders can enter short near this area, with stop-losses placed above the high and targets near the next support or previous lows. The setup gains more reliability when aligned with supply zones, SMT divergence, or bearish Fair Value Gaps.
🔵 Setting
Pivot Period : You can use this parameter to use your desired period to identify the QM pattern. By default, this parameter is set to the number 5.
Take Profit Mode : You can choose your desired Take Profit in three ways. Based on the logic of the QM strategy, you can select two Take Profit levels, TP1 and TP2. You can also choose your take profit based on the Reward to Risk ratio. You must enter your desired R/R in the Reward to Risk Ratio parameter.
Stop Loss Refine : The loss limit of the QM strategy is based on its logic on the Head pattern. You can refine it using the ATR Refine option to prevent Stop Hunt. You can enter your desired coefficient in the Stop Loss ATR Adjustment Coefficient parameter.
Reward to Risk Ratio : If you set Take Profit Mode to R/R, you must enter your desired R/R here. For example, if your loss limit is 10 pips and you set R/R to 2, your take profit will be reached when the price is 20 pips away from your entry point.
Stop Loss ATR Adjustment Coefficient : If you set Stop Loss Refine to ATR Refine, you must adjust your loss limit coefficient here. For example, if your buy position's loss limit is at the price of 1000, and your ATR is 10, if you set Stop Loss ATR Adjustment Coefficient to 2, your loss limit will be at the price of 980.
Entry Level Validity : Determines how long the Entry level remains valid. The higher the level, the longer the entry level will remain valid. By default it is 2 and it can be set between 2 and 15.
🔵 Results
The following examples show the backtest results of the Quasimodo (QM) strategy in action. Each image is based on specific settings for the symbol, timeframe, and input parameters, illustrating how the QM logic can generate signals under different market conditions. The detailed configuration for each backtest is also displayed on the image.
⚠ Important Note : Even with identical settings and the same symbol, results may vary slightly across different brokers due to data feed variations and pricing differences.
Default Properties of Backtests :
OANDA:XAUUSD | TimeFrame: 5min | Duration: 1 Year :
BINANCE:BTCUSD | TimeFrame: 5min | Duration: 1 Year :
CAPITALCOM:US30 | TimeFrame: 5min | Duration: 1 Year :
NASDAQ:QQQ | TimeFrame: 5min | Duration: 5 Year :
OANDA:EURUSD | TimeFrame: 5min | Duration: 5 Year :
PEPPERSTONE:US500 | TimeFrame: 5min | Duration: 5 Year :
Aroon RSI Logic — Customizable + No-Trade RSI ZoneThis indicator — **“Aroon RSI Logic — Customizable + No-Trade RSI Zone”** — is designed to help traders identify high-probability turning points in the market by combining **trend momentum (Aroon)** with **relative strength dynamics (RSI)**, while also protecting against emotional or impulsive trading through structured filters and psychological safeguards.
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### 🧠 **Concept Overview**
At its core, the system balances **trend confirmation** with **momentum moderation**. It seeks to enter trades only when technical alignment suggests both exhaustion of a recent move and early signs of a potential reversal — while filtering out market noise and emotionally driven trades in neutral or extreme conditions.
This design encourages **discipline**, **patience**, and **objectivity**, three of the most critical psychological traits of successful traders.
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### 📊 **Core Components**
#### 1. **Aroon Structure Awareness**
The Aroon indicator measures how recently price has reached a new high or low within a specific period, reflecting trend strength and potential exhaustion.
* When **Aroon Down** approaches the predefined target level, it suggests the market has not made new lows for several bars — an early indication that bearish momentum may be fading.
* Conversely, when **Aroon Up** nears the target, bullish strength may be waning.
This mechanism trains the trader’s mind to **look for transitions** — moments when dominant sentiment begins to lose control.
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#### 2. **RSI Momentum Confirmation**
The RSI (Relative Strength Index) and its smoothed version act as dual filters to confirm emotional extremes and trend shifts in momentum.
* When RSI significantly diverges from its smoothed version, it often reflects **emotional spikes** or **unsustainable acceleration**.
* The system only allows trades when the RSI difference remains within a defined limit, fostering entries during **balanced, rational phases** of the market rather than moments of panic or euphoria.
This approach supports **emotional discipline**, discouraging entries when crowd psychology dominates decision-making.
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#### 3. **No-Trade RSI Zone**
A critical safeguard is the **“No-Trade Zone”**, defined by specific RSI thresholds.
When RSI is too low (oversold) or too high (overbought), traders are often tempted to act impulsively — either out of fear or greed.
By preventing entries during these phases, the indicator helps traders **avoid psychological traps** such as:
* Chasing reversals prematurely.
* Getting caught in continuation moves driven by crowd emotion.
It reinforces a mindset of **restraint** and **selective participation**.
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#### 4. **Time-Based Discipline Filter**
The session filters allow trading only within designated market hours (for example, morning and afternoon sessions).
This enforces **structured activity**, reducing exposure to low-volume, erratic periods when decision fatigue or overtrading tendencies often arise.
It mirrors the behavior of professional traders who work within time-framed playbooks rather than emotional impulses.
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### 🟢 **Buy Logic**
Buy opportunities arise when:
* Downward momentum (Aroon Down) weakens near the target level,
* RSI behavior supports balanced momentum or mild recovery, and
* Emotional extremes are absent.
This combination reflects a **calm, data-driven reversal environment**, ideal for contrarian but controlled entries.
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### 🔴 **Sell Logic**
Sell signals appear when:
* Upward momentum (Aroon Up) softens around the target,
* RSI confirms slowing bullish pressure, and
* Market sentiment shows fatigue without panic.
It aligns with a **psychologically sound exit or shorting scenario**, avoiding reactionary decisions.
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### 🧩 **Psychological Philosophy**
This tool isn’t just a signal generator — it’s a **trader’s behavioral framework**.
By combining structured logic, volatility filters, and emotional control zones, it helps cultivate:
* **Patience** to wait for qualified setups.
* **Confidence** to act when all conditions align.
* **Detachment** from impulsive market movements.
It transforms trading from a reactive habit into a **strategic execution process** rooted in logic and emotional balance.
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oppliger trendfollow📈 Strategy Overview: SMA25 vs SMA200 – Gap Momentum Trend Strategy
This strategy is a trend-following system designed to capture strong, accelerating uptrends while exiting early when momentum begins to fade.
It uses the relationship between two moving averages — the 25-period SMA and the 200-period SMA — and monitors the gap (distance) between them as a measure of trend strength.
🟢 Entry Conditions (Go Long)
A long position is opened only when all of the following conditions are true:
Uptrend confirmation:
The 25-period SMA is above the 200-period SMA
→ confirms a clear upward trend.
Price momentum:
The closing price is above the SMA25 line,
→ showing that the market currently trades with bullish momentum.
Trend acceleration:
The gap between SMA25 and SMA200 has been increasing for the last 5 consecutive bars.
→ mathematically:
gap_t > gap_(t-1) > gap_(t-2) > gap_(t-3) > gap_(t-4)
→ indicates that the short-term trend is pulling away from the long-term trend and accelerating upward.
✅ When all three conditions are met, the strategy enters a long trade at the close of the current candle.
🔴 Exit Conditions (Close Long)
The position is closed when the uptrend starts to lose strength:
Trend deceleration:
The gap between SMA25 and SMA200 has been shrinking for 3 consecutive bars.
→ mathematically:
gap_t < gap_(t-1) < gap_(t-2)
→ signals that the short-term moving average is converging toward the long-term average, showing weakening momentum.
🚪 When this condition is met, the strategy closes the position at market price.
⚙️ Summary of Logic
Phase Condition Meaning
Entry SMA25 > SMA200 Long-term trend is up
Entry Close > SMA25 Short-term momentum is bullish
Entry Gap rising 5 bars Trend is accelerating
Exit Gap falling 3 bars Trend is weakening
💡 Interpretation
This strategy aims to:
Enter only when a strong, accelerating uptrend is confirmed.
Stay in the trade as long as momentum remains intact.
Exit early when the market starts losing strength, before the trend fully reverses.
It works best in trending markets and helps avoid false entries during sideways or weak phases.
Trend Engine [MMT]The Trend Engine is a versatile Pine Script indicator designed to identify trend direction, potential reversals, and key price levels using a combination of Exponential Moving Averages (EMAs), and Anchored Volume-Weighted Average Price (VWAP). This indicator provides traders with a clear visual representation of market bias, momentum, and key support/resistance levels, making it suitable for both trend-following and pullback trading strategies.
Key Features:
1. EMA Cloud System:
- Displays three customizable EMAs (Fast, Pullback, and Slow) with configurable lengths and visibility.
- Creates two cloud fills:
- Fast Cloud : Between the Fast EMA (default: 8) and Pullback EMA (default: 13).
- Slow Cloud : Between the Pullback EMA and Slow EMA (default: 21).
- Clouds are color-coded (green for bullish, red for bearish) based on EMA alignment, with adjustable transparency for clarity.
2. Bias EMA:
- A longer-term EMA (default: 35) indicates the overall market bias.
- Changes color based on whether the regular candle close is above (green) or below (red) the Bias EMA, providing a clear trend direction signal.
3. Heikin Ashi Signals:
- Utilizes Heikin Ashi candles to detect strong bullish or bearish momentum.
- Generates buy/sell signals when a Heikin Ashi candle confirms a trend (bullish HA candle closing above Bias EMA for buy, bearish HA candle closing below for sell).
- Signal arrows are currently disabled but can be enabled via settings for visual confirmation.
4. Anchored VWAP and Standard VWAP:
- Plots both a standard VWAP and an Anchored VWAP (anchored to the US RTH session, 09:30–16:00 EST).
- Customizable line styles (solid, cross, or circles) and colors for both VWAPs, aiding in identifying dynamic support/resistance levels.
5. Background and Candle Coloring:
- Optional background coloring reflects the market bias (green for bullish, red for bearish) based on the regular close relative to the Bias EMA.
- Optional Heikin Ashi candle coloring to visually distinguish bullish and bearish market conditions.
6. Regular Candle Close:
- Option to plot the regular (non-Heikin Ashi) close price with customizable styles (line, circles, or cross) for reference.
7. Alerts:
- Built-in alert conditions for bullish and bearish signals, allowing traders to receive notifications when a Heikin Ashi candle confirms a trend relative to the Bias EMA.
How to Use:
- Trend Identification : Use the Bias EMA and background color to determine the overall market direction.
- Pullback Trading : Monitor the EMA clouds for alignment (bullish or bearish) and use the Pullback EMA for entries during retracements.
- Support/Resistance : Leverage the VWAP and Anchored VWAP as dynamic levels for trade entries or exits.
- Signal Confirmation : Enable signal arrows (when fixed) to spot high-probability trend continuation or reversal setups.
- Customization : Adjust EMA lengths, colors, transparency, and visibility to suit your trading style and timeframe.
Settings:
- EMA Cloud : Customize lengths (default: 8, 13, 21), visibility, and cloud colors/transparency.
- Bias EMA : Adjust length (default: 35) and colors for above/below states.
- VWAP : Toggle standard and Anchored VWAP, with customizable styles and colors.
- Background/Candles : Enable/disable background and candle coloring for visual clarity.
- Regular Close : Show/hide the regular close price with style options.
Notes:
- Designed for use on any timeframe, but most effective on intraday (e.g., 5m, 15m) or daily charts.
- Best used in conjunction with other technical analysis tools for confirmation.
- Anchored VWAP is tailored for US markets (RTH session) but can be adjusted for other sessions by modifying the anchor time in the code.
Ideal For:
- Day traders and swing traders looking for trend direction and pullback opportunities.
- Traders using VWAP-based strategies for intraday support/resistance.
- Those seeking a clean, customizable visual aid for market bias and momentum.
This indicator is a powerful tool for traders aiming to capture trends and manage risk effectively, with extensive customization to adapt to various markets and trading styles.
TMA Dual BandsTMA Dual Bands - Adaptive Channel Indicator with Crossover Signals
TMA Dual Bands represents my interpretation of the classic Triangular Moving Average methodology, specifically designed to identify high-probability trading setups through the interaction of two adaptive channel systems. Unlike traditional channel indicators that rely on static calculations, this tool dynamically adjusts to market volatility while maintaining the smooth, reliable characteristics that make TMA-based systems so effective.
The indicator combines a MAIN channel (slow-moving, representing the broader trend) with a FAST channel (responsive, capturing momentum shifts). When these two systems interact in specific ways, they generate clear trading signals that can be used across multiple timeframes and market conditions.
The Mathematics Behind the Indicator
At its core, this indicator uses a sophisticated approach to calculating Triangular Moving Averages. Rather than using the traditional double Simple Moving Average method, I've implemented a double Weighted Moving Average calculation. This means the TMA is computed by taking a WMA of another WMA, which provides better responsiveness to recent price action while maintaining the smooth, triangular weighting distribution that gives this indicator its name.
The weighted approach significantly reduces lag compared to double-smoothed simple moving averages, allowing the indicator to catch trend changes earlier without sacrificing reliability. This is particularly important for the FAST channel, where responsiveness is crucial for signal generation.
Adaptive Volatility Bands
What makes this indicator truly unique is its adaptive band calculation system. Instead of using a single standard deviation like traditional Bollinger Bands, the indicator maintains separate variance calculations for upward and downward price movements. When price rises above the TMA centerline, the upper band variance increases while the lower band variance decreases proportionally. The opposite occurs when price falls below the centerline.
This asymmetric approach allows the bands to better reflect actual market conditions. During uptrends, the upper band expands to accommodate bullish volatility while the lower band contracts, creating a channel that naturally "leans" in the direction of the trend. The same principle applies in reverse during downtrends.
The full calculation uses a smoothed variance over approximately four times the base period, ensuring that band adjustments are gradual rather than erratic. The multiplier parameter allows you to adjust the sensitivity of the bands to volatility, with higher values creating wider channels that generate fewer but higher-quality signals.
Understanding the Signals
The signal generation mechanism is elegantly simple yet remarkably effective. A bullish signal occurs when the lower FAST band crosses above the lower MAIN band. This crossover indicates that short-term momentum has shifted decisively upward, strong enough to break through the slower-moving baseline channel. These signals typically appear after consolidation periods or healthy pullbacks in uptrends, making them excellent continuation entry points.
Conversely, bearish signals trigger when the upper FAST band crosses below the upper MAIN band. This pattern suggests that upward momentum has exhausted itself and that sellers are beginning to dominate. These signals often appear near resistance levels or at the culmination of extended rallies, providing excellent risk-reward opportunities for counter-trend or trend-reversal trades.
The visual representation enhances signal clarity. The MAIN TMA centerline changes color dynamically based on its slope, displaying green during upward movement and red during downward movement. This gives you instant visual confirmation of the prevailing trend direction. The signal markers themselves appear as diamond shapes positioned just outside the MAIN channel bands, with cyan diamonds indicating buy opportunities below the lower band and blue diamonds marking sell opportunities above the upper band. You could consider taking bull signals only on long trend, and vice versa for the sell signals.
Practical Application
The indicator works across multiple trading approaches and timeframes. For trend-following strategies, the most reliable signals occur when they align with the MAIN TMA color. Taking only green-colored uptrend signals and red-colored downtrend signals significantly improves win rates by ensuring you're always trading with the dominant momentum.
For breakout traders, the most powerful setups occur after periods of compression when the FAST bands squeeze inside the MAIN bands. This compression indicates low volatility and tight consolidation. When a signal finally triggers after such compression, it often leads to explosive moves as the market breaks out of its range.
Mean reversion traders can also benefit from this indicator by taking counter-trend signals when price reaches extreme band levels. However, this approach requires careful risk management and works best in clearly ranging market conditions.
Configuration and Customization
The default parameters have been carefully selected through extensive testing, with the MAIN period set to 133 bars and the FAST period at 19 bars. These values create an effective balance between trend identification and momentum responsiveness. However, the indicator is fully customizable to suit different trading styles and market conditions.
Traders focusing on longer-term positions might increase both periods proportionally, while scalpers and day traders might reduce them. The price type parameter allows you to choose how price is calculated for the TMA, with the weighted option providing the most responsive results. The band multiplier controls how wide the channels expand, with values between 2.5 and 4.0 being most common depending on your preferred signal frequency.
Technical Integrity
A critical feature of this indicator is its complete absence of repainting. All signals are generated and confirmed on closed bars, meaning that once a signal appears in historical data, it will remain exactly where it appeared regardless of subsequent price action. This makes the indicator equally reliable for backtesting historical data and trading live markets, a characteristic that many "magic indicator" systems cannot claim.
The calculation methodology ensures that what you see on your chart is exactly what you would have seen in real-time when that bar closed. There are no retrospective adjustments, no future-peeking calculations, and no algorithmic tricks that make historical performance look better than actual trading results would have been.
Conclusion
TMA Dual Bands offers a sophisticated yet user-friendly approach to technical analysis, combining time-tested TMA methodology with modern adaptive volatility concepts. The dual-channel system provides clear visual representation of market structure while the crossover signals offer objective entry points that remove much of the guesswork from trading decisions.
Whether you're a discretionary trader looking for high-probability setups or a systematic trader seeking reliable signals for automated strategies, this indicator provides the clarity and consistency needed for confident decision-making in dynamic market conditions.
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**Developed by AlgoAlex81**
*Disclaimer: This indicator is provided for educational and informational purposes only. Past performance does not guarantee future results. Always practice proper risk management and never risk more than you can afford to lose.*
3 Candle FVG with 5m S/R3 candle breakout indicator.
Shows EMA 50.
Shows Support and Resistance from the 5m chart on every timeframe.
Indicates every engulfing candle.
Indicates entry at 3 consecutive candles in the same direction where the middle candle has an FVG and it crosses the EMA.
Indicates entry at 3 consecutive candles in the same direction where the middle candle has an FVG and it does not cross the EMA.
SMA25 vs SMA150 – Reentry nur bei Gap-Expansion version 1📈 Strategy: SMA25 vs. SMA150 – Reentry with Gap Expansion
This trend-following strategy trades long positions only during strong uptrends.
It combines mid-term trend confirmation (SMA150) with short-term momentum (SMA25), and includes strict entry, reentry, and exit conditions to capture sustained bullish phases while cutting weak setups early.
🟢 Entry Rules
A long position is opened only if all of the following conditions are met:
Trend filter: The closing price is above SMA150 → confirms an uptrend.
Bullish candle: Current candle closes higher than it opens.
SMA range: SMA25 is 8% to 60% above SMA150.
Momentum slope: SMA25 has increased more strongly than SMA150 over the last 5 candles and is rising.
Trend confirmation: SMA25 has remained above SMA150 for at least 5 candles.
Price distance: The close is at least 0.5% above SMA25.
Stability: The previous two candles also closed above SMA25.
Short-term breakout: Current close is higher than the last 3 closes.
Reentry condition: Allowed only after 20 candles since the last exit and only if a gap expansion occurs above the previous high.
🔴 Exit Rules
A trade is closed as soon as any of the following conditions is triggered:
Dynamic trailing exit:
Close falls 3% below the highest SMA25 value since entry.
Hard stop-loss:
The low of the candle falls 5% or more below the entry price (intrabar trigger).
Early weakness filter:
If any of the first 3 candles after entry closes below the entry price, the trade is exited immediately.
⚙️ Additional Details
Long trades only (no shorts)
No pyramiding – only one position open at a time
Chart background color:
Green = position open
Red = no position
This system targets clean, established uptrends, avoids premature entries, and exits quickly when momentum fades.
It’s designed for swing and position traders who prefer systematic, trend-based setups with tight risk control and clear structure.
