Change in State of Delivery CISD ICT [TradingFinder] Liquidity 1🔵 Introduction
🟣 What is CISD ?
Change in State of Delivery (CISD) is a key concept in technical analysis, similar to Change of Character (ChoCh) and Market Structure Shift (MSS) in the ICT (Inner Circle Trader) and Smart Money trading styles. Like ChoCh and MSS, CISD helps traders identify critical changes in market structure and make timely entries into trades.
To determine the CISD Level, traders typically review the last 1 to 4 candles to identify the first positive or negative candle. The CISD Level is then set using the opening price of the next candle.
In this version of the indicator, support and resistance levels are defined based on liquidity, which includes patterns such as SFP (Swing Failure Pattern), fake breakout, and false breakout.
Bullish CISD :
Bearish CISD :
🔵 How to Use
🟣 Bullish CISD (Change in State of Delivery Upward)
In Bullish CISD, the trend shifts from bearish to bullish after the price hits a liquidity zone, typically indicated by patterns such as SFP, fake breakout, or false breakout.
The steps to identify Bullish CISD are as follow s:
Identify the liquidity zone (SFP, fake breakout).
Review the candles and find the first positive candle.
Set the CISD Level using the opening price of the next candle after the positive candle.
Confirm the change in state of delivery when the price closes above the CISD Level.
Enter the trade after CISD confirmation.
🟣 Bearish CISD (Change in State of Delivery Downward)
In Bearish CISD, the trader looks for a shift from a bullish to a bearish trend. This change typically occurs when the price hits a liquidity level, indicated by patterns such as SFP or false breakout.
The steps to identify Bearish CISD are :
Identify the liquidity zone.
Review the candles and find the first negative candle.
Set the CISD Level using the opening price of the next candle after the negative candle.
Confirm the change in state of delivery when the price closes below the CISD Level.
Enter a short trade after CISD confirmation.
🟣 CISD Compared to ChoCh and MSS (CISD Vs ChoCh/ MSS)
CISD, ChoCh, and MSS are all tools for identifying trend changes in the market, but they have some differences :
CISD: Focuses on a change in the state of delivery and uses liquidity patterns (SFP, fake breakout) and key candles to confirm trend reversals.
ChoCh: Identifies a change in the market’s character, often signaling rapid shifts in trend direction.
MSS: Focuses on changes in market structure and identifies the breaking of key levels as a signal of trend shifts.
🔵 Settings
🟣 CISD Logical settings
Bar Back Check : Determining the return of candles to identify the CISD level.
CISD Level Validity : CISD level validity period based on the number of candles.
🟣 SFP Logical settings
Swing period : You can set the swing detection period.
Max Swing Back Method : It is in two modes "All" and "Custom". If it is in "All" mode, it will check all swings, and if it is in "Custom" mode, it will check the swings to the extent you determine.
Max Swing Back : You can set the number of swings that will go back for checking.
🟣 CISD Display settings
Displaying or not displaying swings and setting the color of labels and lines.
🟣 SFP Display settings
Displaying or not displaying swings and setting the color of labels and lines.
🔵 Conclusion
CISD is a powerful tool for identifying trend reversals using liquidity patterns and key candle analysis. Traders can use the CISD Level to detect trend changes and find optimal entry and exit points.
This concept is similar to ChoCh and MSS but stands out with its focus on confirming trend changes through liquidity and specific patterns. With the right approach, CISD helps traders capitalize on market movements more effectively.
Trend Analysis
Pivot Data [QuantVue]The Pivot Data Indicator is designed to provide traders with valuable insights by identifying and analyzing pivot points on the price chart. It calculates both pivot highs and lows, then presents detailed statistics on the distance and time between these pivots.
a pivot point is defined as a specific point on the chart where the price either reaches a high or a low, with no bars higher or lower than it for a set number of bars on both sides (left and right). Essentially, it's a local high or low point, with the market moving in the opposite direction after the pivot forms.
For example:
A pivot high occurs when there are no bars with higher prices for a specified number of bars before and after that point.
A pivot low occurs when there are no bars with lower prices for the same number of bars on either side.
The number of bars to the left and right is adjustable via the Pivot Lookback Bars setting, allowing you to define how many bars are used to determine these pivot points.
Key features include:
Pivot Highs and Lows Identification: Automatically marks significant pivot highs and lows based on a user-defined lookback period, helping traders identify potential trend reversals or continuation points.
Prediction Labels: Provides forecasted pivot levels based on historical pivot price and time patterns, with options to show predictions for pivot highs, lows, or any pivot point.
Customizable Table Display: Displays a table summarizing important statistics, such as the average price percentage and the number of bars between pivots, along with the distance and time from the most recent pivot.
Traders can use this tool to map out potential levels of support and resistance based on historical data on pivot points.
EagleVision.V33 - Inside Pin Bar EagleVision.V33 is a specialized indicator designed for traders who focus on price action. It detects and highlights the Inside Pin Bar candle pattern, a key signal that can indicate potential market reversals or trend continuations. This tool is invaluable for traders who rely on precise candlestick patterns to make data-driven decisions.
Features:
• Customizable Pattern Highlighting: EagleVision.V33 allows traders to choose custom colors to highlight Inside Pin Bar patterns directly on the chart. This makes identifying critical trading signals straightforward, even in busy market conditions.
• Pin Bar Candle Customization: Beyond just highlighting, the indicator enables users to change the color of the detected pin bar itself, ensuring that crucial patterns are immediately visible and easy to track.
• Versatile Timeframe Application: The indicator can be applied across various timeframes, from intraday (1 minute, 5 minutes) to longer-term charts (daily, weekly). Users can easily switch between timeframes within the settings, making it adaptable to different trading strategies.
• Enhanced Visual Clarity with Background Highlighting: For traders who prefer additional emphasis, EagleVision.V33 offers an option to apply a background color that highlights the entire region where the Inside Pin Bar pattern is detected.
How It Works:
• Inside Bar Identification: The indicator first identifies an Inside Bar, where a candle’s high and low fall within the range of the preceding candle (the mother bar). This is a foundational pattern in price action trading.
• Pin Bar Detection: It then checks if the candle is a Pin Bar, characterized by a small body and a prominent wick (either upper or lower), which typically signals potential market turning points.
• Pattern Highlighting & Visualization: Upon detecting both conditions (Inside Bar and Pin Bar), EagleVision.V33 highlights the pattern using customizable shapes and colors, and optionally applies a background shade to further enhance visibility.
Use Cases:
• Reversals at Key Levels: The Inside Pin Bar pattern often appears at significant support or resistance levels, signaling potential reversals. EagleVision.V33 helps traders spot these opportunities early.
• Trend Continuations: In trending markets, this pattern can confirm the continuation of a trend, providing traders with the confidence to hold positions or enter new ones.
Customization Options:
• Pattern Highlight Color: Choose a distinct color for the label or shape that marks the Inside Pin Bar pattern, making it stand out against other chart elements.
• Pin Bar Candle Color: Customize the color of the Pin Bar itself, ensuring that it is immediately recognizable on the chart.
• Background Highlighting: Optionally apply a background color to the chart area where the pattern is detected, further enhancing visual clarity and making it easier to spot potential trading opportunities.
Why EagleVision.V33 Stands Out:
EagleVision.V33 is not just another pattern detection tool; it’s engineered for precision and clarity, with highly customizable features that cater to the unique needs of price action traders. By combining both Inside Bar and Pin Bar detection, it offers a powerful edge, providing traders with actionable insights directly on their charts.
Median Standard Deviation | viResearchMedian Standard Deviation | viResearch
The "Median Standard Deviation" indicator, developed by viResearch, introduces a unique combination of median smoothing and standard deviation to detect trends and volatility in market data. This tool provides traders with a stable and accurate measure of price trends by integrating median smoothing with a customized calculation of the standard deviation. This innovative approach allows for enhanced sensitivity to market fluctuations while filtering out short-term price noise.
Technical Composition and Calculation:
The "Median Standard Deviation" indicator incorporates median smoothing and dynamic standard deviation calculations to build upon traditional volatility measures.
Median Smoothing:
DEMA Calculation (len_dema): The script applies a Double Exponential Moving Average (DEMA) to smooth the price data over a user-defined period, reducing noise and helping traders focus on broader market trends.
Median Calculation (median_len): The smoothed DEMA data is further refined by calculating the 50th percentile (median) over a specified length, ensuring that the central tendency of price data is captured more accurately than with a simple moving average.
Volatility Measurement:
ATR Calculation (atr_len, atr_mul): The script incorporates the Average True Range (ATR) to measure market volatility. The user-defined ATR multiplier is applied to this value to calculate upper and lower trend bands around the median, providing a dynamic measure of potential price movement based on recent volatility.
Standard Deviation Analysis:
Standard Deviation Calculation (len_sd): The script calculates the standard deviation of the median over a user-defined length, providing another layer of volatility measurement. The upper and lower standard deviation bands (sdd, sdl) act as additional indicators of price extremes.
Trend Detection:
Trend Logic: The indicator uses the calculated bands to identify whether the price is moving within or outside the standard deviation and ATR bands. Crosses above or below these bands are used to signal potential uptrends or downtrends, offering traders a clear view of market direction.
Features and User Inputs:
The "Median Standard Deviation" script offers a variety of user inputs to customize the indicator to suit traders' styles and market conditions:
DEMA Length: Allows traders to adjust the sensitivity of the DEMA smoothing to control the amount of noise filtered from the price data.
Median Length: Users can define the length over which the median price is calculated, providing flexibility in capturing short-term or long-term trends.
ATR Length and Multiplier: These inputs let traders fine-tune the ATR calculation, affecting the size of the dynamic upper and lower bands.
Standard Deviation Length: Controls how the standard deviation is calculated, allowing for further customization in detecting price volatility.
Practical Applications:
The "Median Standard Deviation" indicator is particularly effective in volatile markets where price swings can lead to false signals using traditional methods. By combining median smoothing and standard deviation, this tool provides a more robust analysis of trends and price movements.
Key Uses:
Trend Following: The upper and lower bands provide clear signals for entering and exiting trades based on whether the price is moving outside the calculated ranges.
Volatility Detection: The integration of ATR and standard deviation bands allows traders to assess market volatility in real time, enabling more informed trading decisions.
Noise Reduction: The use of median smoothing ensures that short-term price fluctuations do not interfere with broader trend analysis, making this indicator ideal for traders looking to avoid whipsaws in volatile markets.
Advantages and Strategic Value:
The "Median Standard Deviation" indicator offers several key advantages:
Precision in Trend Detection: The combination of median smoothing and standard deviation allows traders to detect trends with greater accuracy, reducing the risk of false signals.
Customization: With several adjustable parameters, traders can fine-tune the indicator to suit different timeframes and trading strategies.
Volatility Sensitivity: By incorporating ATR and standard deviation, this indicator provides an adaptive measure of market volatility, ensuring that traders are always aware of potential price swings.
Summary and Usage Tips:
The "Median Standard Deviation" indicator is a powerful tool for traders looking to refine their analysis of market trends and volatility. Its combination of median smoothing and standard deviation provides a nuanced view of market movements, helping traders make better-informed decisions. It's recommended to experiment with the various input parameters to optimize the indicator for specific needs, whether used for trend detection, volatility analysis, or noise reduction. The "Median Standard Deviation" offers a reliable and adaptable solution for modern trading strategies.
Please keep in mind the following text: Backtests are based on past results and are not indicative of future performance.
Rainbow Histogram v1.01Sure! Here’s a compelling English version of the article for your TradingView post:
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### 🌈 **Introducing Rainbow Histogram: A Fusion of EMA and MA for Enhanced Trading Analysis**
**Hello Traders,**
I’m excited to introduce a fresh concept that combines technical analysis techniques into a new indicator called **Rainbow Histogram**. This innovative tool blends Exponential Moving Averages (EMA) and Moving Averages (MA) to provide you with a powerful and accurate tool for making trading decisions.
#### **🎨 What is Rainbow Histogram?**
The Rainbow Histogram is designed to help you identify market trends and signal precise entry and exit points by blending EMA and MA into a colorful "Rainbow" display. This visual approach enhances your ability to spot trend strength and direction with clarity.
#### **📈 How Does Rainbow Histogram Work?**
1. **Exponential Moving Average (EMA):** Captures short-term trends and reacts quickly to price changes.
2. **Moving Average (MA):** Tracks long-term trends and provides a broader view of the market direction.
**Rainbow Histogram** uses the combination of EMA and MA to create a histogram that shows the difference between these two averages in distinct colors. This makes it easy to visualize trend changes and market momentum.
#### **🔧 Setting It Up**
1. **EMA:** Adjust the EMA settings based on your trading timeframe and strategy (e.g., EMA 9, EMA 21).
2. **MA:** Set the MA parameters to capture long-term trends (e.g., MA 50, MA 200).
#### **🌟 Why Use Rainbow Histogram?**
- **Simplified Analysis:** Quickly identify trends and their strength with a clear visual representation.
- **Distinct Colors:** Differentiate between EMA and MA with vibrant colors for easy interpretation.
- **Precise Signals:** Get clear buy and sell signals based on histogram changes.
#### **📥 Get Started**
Add **Rainbow Histogram** to your TradingView charts by searching for the script in TradingView’s library or set it up manually using the recommended settings.
#### **📝 In Summary**
**Rainbow Histogram** is a unique tool that simplifies trend analysis and enhances accuracy by merging EMA and MA into a single, colorful indicator. Use this tool to refine your trading strategy and make more informed financial decisions.
If you have any questions or feedback about **Rainbow Histogram**, feel free to comment below or send me a message!
**Happy Trading!** 🌟
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I hope this version effectively captures attention and engages your audience!
User-Defined RSI-Adaptive Dynamic Stop Loss User-Defined RSI-Adaptive Dynamic Stop Loss
(Long name is: User-Defined RSI-Adaptive Smart Dynamic Stop Loss (SDSL) Indicator)
The User-Defined RSI-Adaptive SDSL Indicator is an enhanced version of the Smart Dynamic Stop Loss (SDSL) indicator. It provides a more adaptive risk management strategy by adjusting the stop loss level dynamically based on the Relative Strength Index (RSI). The script allows users to define the stop loss parameters, offering a flexible approach that can be tailored to different market conditions.
How It Works / Calculation:
RSI Calculation: The indicator calculates the RSI (Relative Strength Index) over a user-defined period (default 14). The RSI is used to determine market overbought and oversold levels, which are set by default at 70 and 30, respectively, but these levels can be adjusted by the user.
Adaptive Stop Loss Percentage: The stop loss percentage is dynamically adjusted between user-defined maximum (default 10%) and minimum (default 1%) values. This percentage adapts based on the current RSI value:
When RSI is in the oversold zone, the stop loss percentage is at its maximum (providing a wider margin).
When RSI is in the overbought zone, the stop loss percentage is at its minimum (tightening the stop to secure gains).
Dynamic Stop Loss Calculation:
Initialization: If no existing stop loss level is set, it initializes at a user-defined percentage below the current closing price.
Upward Movement: If the price rises above the current stop loss level, the stop loss is recalculated to stay within the adaptive range.
Price Crosses Below Stop Loss: If the price falls below the current stop loss level, the indicator resets, establishing a new stop loss level at the user-defined percentage below the low of the candle where the crossover occurred.
Visual and Data Display:
The stop loss line is plotted on the chart for easy visualization.
A data box on the chart provides real-time updates on the current dynamic stop loss level, stop loss percentage, and RSI value.
Key Features:
User-Configurable Parameters: Users can adjust the RSI period, overbought/oversold levels, and the maximum and minimum stop loss percentages to suit their trading style and risk tolerance.
Dynamic Adaptation to Market Conditions: The stop loss level automatically adjusts according to RSI, allowing for more flexible risk management.
Visual Alerts and Signals : Optional visual signals indicate when the stop loss is triggered.
Informational Display: A table on the chart displays current indicator data for quick reference.
Note:
This script builds upon the previously developed "Smart Dynamic Stop Loss (SDSL) Indicator" and enhances its functionality by incorporating RSI-based adaptive stop loss settings that users can customize.
Smart Dynamic Stop Loss (SDSL) IndicatorSmart Dynamic Stop Loss (SDSL) Indicator
The Smart Dynamic Stop Loss (SDSL) Indicator creates a stop loss level that dynamically adapts to market conditions.
How It Works / How To Calculate:
1. **Initialization**: The indicator initially sets a stop loss level at a specified percentage (default 2%, user-adjustable) below the current price.
2. **Upward Movement**: As the price rises, the stop loss level moves up as well. However, it always remains at the specified percentage below the highest price reached. This allows the price room to move while protecting gains.
3. **Downward or Sideways Movement**: When the price falls or moves sideways, the stop loss level remains static. This prevents premature exits during minor pullbacks or consolidations.
4. **Price Crosses Below Stop Loss**: If the price drops below the stop loss level, the indicator resets. It sets a new stop loss level at the specified percentage below the low of the candle where the crossover occurred.
5. **Continuous Adaptation**: This process repeats across the entire chart, constantly adjusting to price movements.
note: When the price intersects with the dynamic stop loss line, it resets at 2% below the candle's lowest value (this is the default value, but it can be adjusted by the user)
Key Features
- **User-Configurable**: The stop loss percentage can be adjusted by the user.
- **Visual Alerts**: The indicator plots the stop loss line on the chart.
- **Triggered Signals**: Optional visual signals are displayed when the stop loss is triggered.
- **Information Display**: A data box shows the current stop loss level.
Usage
1. Apply the indicator to the chart.
2. Adjust the stop loss percentage if desired (default is 2%).
3. Monitor the dynamic stop loss level.
4. Watch for visual alerts for potential signals.
CARNAC Trading - Dynamic Support and Resistance LevelsThe **CARNAC Trading - Dynamic Support and Resistance Levels** indicator is designed to help traders identify key support and resistance levels on any chart timeframe. This indicator dynamically detects major support and resistance levels based on historical price pivots and displays them as lines on the chart. The levels are color-coded for easy identification—**green lines** represent support levels below the current price, while **red lines** represent resistance levels above the current price.
Key Features:
- Dynamic Support/Resistance Detection**: Automatically identifies the strongest support and resistance levels on the chart.
- Timeframe Selection**: Allows users to choose a specific timeframe for detecting support and resistance levels, independent of the chart's timeframe.
- Pivot Strength and Lookback Period**: Customizable inputs to control how far back the indicator looks and how strong the pivots need to be for support/resistance detection.
- Level Limitation**: Limits the number of support and resistance lines to keep charts clean, ensuring only the most relevant levels are displayed.
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How to Use the Indicator:
Inputs and Settings:
1. **Lookback Period**: Defines how many bars back the indicator will consider for detecting support and resistance levels. You can adjust this depending on how much historical data you want to include. A larger value will capture more significant levels, while a smaller value focuses on more recent price action.
2. **Pivot Strength**: This setting determines how significant a high or low must be to qualify as a pivot. A higher pivot strength will capture stronger, more critical levels, while a lower value will detect more frequent, minor pivots.
3. **Max Levels Above/Below Price**: This controls the maximum number of support and resistance levels displayed on each side of the current price. Keeping this number low helps reduce clutter and focuses on the most important levels.
4. **Timeframe for Support/Resistance Detection**: Select the timeframe used for detecting support and resistance levels, which can differ from the chart's timeframe. This is helpful when you're trading on shorter timeframes but want to see key levels from a higher timeframe (e.g., detecting daily levels while trading intraday).
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Visualization:
- **Green Lines**: Represent support levels below the current price. These are potential areas where buying interest may increase, and the price could bounce upwards.
- **Red Lines**: Represent resistance levels above the current price. These are potential areas where selling interest may increase, and the price could fall downwards.
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Example Usage:
1. **Identifying Support and Resistance Zones**: Use this indicator to identify critical support and resistance zones. These are areas where the price has historically reversed or paused, making them ideal for setting entry, exit, stop-loss, or take-profit levels.
2. **Trend Analysis**: By observing which side of the current price the majority of lines are on (more red or more green), traders can gauge whether the market is facing more resistance or support, helping them align with the current trend.
3. **Timeframe Flexibility**: You can choose to detect support and resistance levels from higher timeframes (e.g., Daily or Weekly) while trading on lower timeframes (e.g., 15-minute or 1-hour charts). This gives you a macro-level view of key price levels while executing trades on the micro-level.
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Recommendations:
- **Swing Traders**: Use this indicator with a larger lookback period and higher pivot strength to capture major long-term support and resistance levels.
- **Scalpers and Intraday Traders**: Use shorter lookback periods and lower pivot strengths to detect key levels within a shorter timeframe.
By customizing the inputs and tailoring them to your trading style, this indicator can provide valuable insights into price levels where significant buying or selling activity is likely to occur, helping you make more informed trading decisions.
Revenue GridDescription:
The Revenue Grid indicator helps traders and investors visualize a stock’s valuation by plotting horizontal lines based on its price-to-sales (P/S) ratio. This tool displays how the stock price compares to multiples of its total revenue per share, giving a clear perspective on valuation benchmarks.
Fundamental Concept:
The price-to-sales ratio compares a company’s stock price to its revenue per share. It’s used to evaluate whether a stock is overvalued or undervalued based on its revenue.
This indicator offers a unique way to view this ratio by applying Fibonacci multiples to the revenue per share. It plots lines at these multiples to show how the stock price measures up against different valuation levels.
How It Works:
Data Inputs:
Total Revenue (TR): The company’s revenue over the past twelve months.
Total Shares Outstanding (TSO): The total number of shares in circulation.
Calculation:
Calculates the revenue per share (TR/TSO).
Plots lines at fixed Fibonacci multiples (e.g., 1x, 2x, 3x, 5x, 8x, 13x) of the revenue per share value.
How to Use:
1. Add the "Revenue Grid" indicator to your chart by searching for it in the indicator library and applying it.
2. Observe the lines plotted on the chart. If these lines are trending upwards, it indicates that the revenue is increasing.
3. Analyze how historical prices trend relative to these lines. Look for periods where the stock price supports around specific multiples, you can easily get a sense of overvaluation or undervaluation in certain periods.
Use this information to guide further analysis and investment decisions.
Benefits:
1. Clear Valuation View: Easily see how the company’s revenue translates into stock price levels.
2. Investment Insight: Identify if the stock price is lagging behind revenue growth, which might signal a buying opportunity.
3. Historical Context: Understand how the market has historically valued the company and assess the current valuation.
Do let me know your feedbacks in comments. Happy Investing :)
Grid Bot Parabolic [xxattaxx]🟩 The Grid Bot Parabolic, a continuation of the Grid Bot Simulator Series , enhances traditional gridbot theory by employing a dynamic parabolic curve to visualize potential support and resistance levels. This adaptability is particularly useful in volatile or trending markets, enabling traders to explore grid-based strategies and gain deeper market insights. The grids are divided into customizable trade zones that trigger signals as prices move into new zones, empowering traders to gain deeper insights into market dynamics and potential turning points.
While traditional grid bots excel in ranging markets, the Grid Bot Parabolic’s introduction of acceleration and curvature adds new dimensions, enabling its use in trending markets as well. It can function as a traditional grid bot with horizontal lines, a tilted grid bot with linear slopes, or a fully parabolic grid with curves. This dynamic nature allows the indicator to adapt to various market conditions, providing traders with a versatile tool for visualizing dynamic support and resistance levels.
🔑 KEY FEATURES 🔑
Adaptable Grid Structures (Horizontal, Linear, Curved)
Buy and Sell Signals with Multiple Trigger/Confirmation Conditions
Secondary Buy and Secondary Sell Signals
Projected Grid Lines
Customizable Grid Spacing and Zones
Acceleration and Curvature Control
Sensitivity Adjustments
📐 GRID STRUCTURES 📐
Beyond its core parabolic functionality, the Parabolic Grid Bot offers a range of grid configurations to suit different market conditions and trading preferences. By adjusting the "Acceleration" and "Curvature" parameters, you can transform the grid's structure:
Parabolic Grids
Setting both acceleration and curvature to non-zero values results in a parabolic grid.This configuration can be particularly useful for visualizing potential turning points and trend reversals. Example: Accel = 10, Curve = -10)
Linear Grids
With a non-zero acceleration and zero curvature, the grid tilts to represent a linear trend, aiding in identifying potential support and resistance levels during trending phases. Example: Accel =1.75, Curve = 0
Horizontal Grids
When both acceleration and curvature are set to zero, the indicator reverts to a traditional grid bot with horizontal lines, suitable for ranging markets. Example: Accel=0, Curve=0
⚙️ INITIAL SETUP ⚙️
1.Adding the Indicator to Your Chart
Locate a Starting Point: To begin, visually identify a price point on your chart where you want the grid to start.This point will anchor your grid.
2. Setting Up the Grid
Add the Grid Bot Parabolic Indicator to your chart. A “Start Time/Price” dialog will appear
CLICK on the chart at your chosen start point. This will anchor the start point and open a "Confirm Inputs" dialog box.
3. Configure Settings. In the dialog box, you can set the following:
Acceleration: Adjust how quickly the grid reacts to price changes.
Curve: Define the shape of the parabola.
Intervals: Determine the distance between grid levels.
If you choose to keep the default settings, with acceleration set to 0 and curve set to 0, the grid will display as traditional horizontal lines. The grid will align with your selected price point, and you can adjust the settings at any time through the indicator’s settings panel.
⚙️ CONFIGURATION AND SETTINGS ⚙️
Grid Settings
Accel (Acceleration): Controls how quickly the price reacts to changes over time.
Curve (Curvature): Defines the overall shape of the parabola.
Intervals (Grid Spacing): Determines the vertical spacing between the grid lines.
Sensitivity: Fine tunes the magnitude of Acceleration and Curve.
Buy Zones & Sell Zones: Define the number of grid levels used for potential buy and sell signals.
* Each zone is represented on the chart with different colors:
* Green: Buy Zones
* Red: Sell Zones
* Yellow: Overlap (Buy and Sell Zones intersect)
* Gray: Neutral areas
Trigger: Chooses which part of the candlestick is used to trigger a signal.
* `Wick`: Uses the high or low of the candlestick
* `Close`: Uses the closing price of the candlestick
* `Midpoint`: Uses the middle point between the high and low of the candlestick
* `SWMA`: Uses the Symmetrical Weighted Moving Average
Confirm: Specifies how a signal is confirmed.
* `Reverse`: The signal is confirmed if the price moves in the opposite direction of the initial trigger
* `Touch`: The signal is confirmed when the price touches the specified level or zone
Sentiment: Determines the market sentiment, which can influence signal generation.
* `Slope`: Sentiment is based on the direction of the curve, reflecting the current trend
* `Long`: Sentiment is bullish, favoring buy signals
* `Short`: Sentiment is bearish, favoring sell signals
* `Neutral`: Sentiment is neutral. No secondary signals will be generated
Show Signals: Toggles the display of buy and sell signals on the chart
Chart Settings
Grid Colors: These colors define the visual appearance of the grid lines
Projected: These colors define the visual appearance of the projected lines
Parabola/SWMA: Adjust colors as needed. These are disabled by default.
Time/Price
Start Time & Start Price: These set the starting point for the parabolic curve.
* These fields are automatically populated when you add the indicator to the chart and click on an initial location
* These can be adjusted manually in the settings panel, but he easiest way to change these is by directly interacting with the start point on the chart
Please note: Time and Price must be adjusted for each chart when switching assets. For example, a Start Price on BTCUSD of $60,000 will not work on an ETHUSD chart.
🤖 ALGORITHM AND CALCULATION 🤖
The Parabolic Function
At the core of the Parabolic Grid Bot lies the parabolic function, which calculates a dynamic curve that adapts to price action over time. This curve serves as the foundation for visualizing potential support and resistance levels.
The shape and behavior of the parabola are influenced by three key user-defined parameters:
Acceleration: This parameter controls the rate of change of the curve's slope, influencing its tilt or steepness. A higher acceleration value results in a more pronounced tilt, while a lower value leads to a gentler slope. This applies to both curved and linear grid configurations.
Curvature: This parameter introduces and controls the curvature or bend of the grid. A higher curvature value results in a more pronounced parabolic shape, while a lower value leads to a flatter curve or even a straight line (when set to zero).
Sensitivity: This setting fine-tunes the overall responsiveness of the grid, influencing how strongly the Acceleration and Curvature parameters affect its shape. Increasing sensitivity amplifies the impact of these parameters, making the grid more adaptable to price changes but potentially leading to more frequent adjustments. Decreasing sensitivity reduces their impact, resulting in a more stable grid structure with fewer adjustments. It may be necessary to adjust Sensitivity when switching between different assets or timeframes to ensure optimal scaling and responsiveness.
The parabolic function combines these parameters to generate a curve that visually represents the potential path of price movement. By understanding how these inputs influence the parabola's shape and behavior, traders can gain valuable insights into potential support and resistance areas, aiding in their decision-making process.
Sentiment
The Parabolic Grid Bot incorporates sentiment to enhance signal generation. The "Sentiment" input allows you to either:
Manually specify the market sentiment: Choose between 'Long' (bullish), 'Short' (bearish), or 'Neutral'.
Let the script determine sentiment based on the slope of the parabolic curve: If 'Slope' is selected, the sentiment will be considered 'Long' when the curve is sloping upwards, 'Short' when it's sloping downwards, and 'Neutral' when it's flat.
Buy and Sell Signals
The Parabolic Grid Bot generates buy and sell signals based on the interaction between the price and the grid levels.
Trigger: The "Trigger" input determines which part of the candlestick is used to trigger a signal (wick, close, midpoint, or SWMA).
Confirmation: The "Confirm" input specifies how a signal is confirmed ('Reverse' or 'Touch').
Zones: The number of "Buy Zones" and "Sell Zones" determines the areas on the grid where buy and sell signals can be generated.
When the trigger condition is met within a buy zone and the confirmation criteria are satisfied, a buy signal is generated. Similarly, a sell signal is generated when the trigger and confirmation occur within a sell zone.
Secondary Signals
Secondary signals are generated when a regular buy or sell signal contradicts the prevailing sentiment. For example:
A buy signal in a bearish market (Sentiment = 'Short') would be considered a "secondary buy" signal.
A sell signal in a bullish market (Sentiment = 'Long') would be considered a "secondary sell" signal.
These secondary signals are visually represented on the chart using hollow triangles, differentiating them from regular signals (filled triangles).
While they can be interpreted as potential contrarian trade opportunities, secondary signals can also serve other purposes within a grid trading strategy:
Exit Signals: A secondary signal can suggest a potential shift in market sentiment or a weakening trend. This could be a cue to consider exiting an existing position, even if it's currently profitable, to lock in gains before a potential reversal
Risk Management: In a strong trend, secondary signals might offer opportunities for cautious counter-trend trades with controlled risk. These trades could utilize smaller position sizes or tighter stop-losses to manage potential downside if the main trend continues
Dollar-Cost Averaging (DCA): During a prolonged trend, the parabolic curve might generate multiple secondary signals in the opposite direction. These signals could be used to implement a DCA strategy, gradually accumulating a position at potentially favorable prices as the market retraces or consolidates within the larger trend
Secondary signals should be interpreted with caution and considered in conjunction with other technical indicators and market context. They provide additional insights into potential market reversals or consolidation phases within a broader trend, aiding in adapting your grid trading strategy to the evolving market dynamics.
Examples
Trigger=Wick, Confirm=Touch. Signals are generated when the wick touches the next gridline.
Trigger=Close, Confirm=Touch. Signals require the close to touch the next gridline.
Trigger=SWMA, Confirm=Reverse. Signals are triggered when the Symmetrically Weighted Moving Average reverse crosses the next gridline.
🧠THEORY AND RATIONALE 🧠
The innovative approach of the Parabolic Grid Bot can be better understood by first examining the limitations of traditional grid trading strategies and exploring how this indicator addresses them by incorporating principles of market cycles and dynamic price behavior
Traditional Grid Bots: One-Dimensional and Static
Traditional grid bots operate on a simple premise: they divide the price chart into a series of equally spaced horizontal lines, creating a grid of trading zones. These bots excel in ranging markets where prices oscillate within a defined range. Buy and sell orders are placed at these grid levels, aiming to profit from mean reversion as prices bounce between the support and resistance zones.
However, traditional grid bots face challenges in trending markets. As the market moves in one direction, the bot continues to place orders in that direction, leading to a stacking of positions. If the market eventually reverses, these stacked trades can be profitable, amplifying gains. But the risk lies in the potential for the market to continue trending, leaving the trader with a series of losing trades on the wrong side of the market
The Parabolic Grid Bot: Adding Dimensions
The Parabolic Grid Bot addresses the limitations of traditional grid bots by introducing two additional dimensions:
Acceleration (Second Dimension): This parameter introduces a second dimension to the grid, allowing it to tilt upwards or downwards to align with the prevailing market trend. A positive acceleration creates an upward-sloping grid, suitable for uptrends, while a negative acceleration results in a downward-sloping grid, ideal for downtrends. The magnitude of acceleration controls the steepness of the tilt, enabling you to fine-tune the grid's responsiveness to the trend's strength
Curvature (Third Dimension): This parameter adds a third dimension to the grid by introducing a parabolic curve. The curve's shape, ranging from gentle bends to sharp turns, is controlled by the curvature value. This flexibility allows the grid to closely mirror the market's evolving structure, potentially identifying turning points and trend reversals.
Mean Reversion in Trending Markets
Even in trending markets, the Parabolic Grid Bot can help identify opportunities for mean reversion strategies. While the grid may be tilted to reflect the trend, the buy and sell zones can capture short-term price oscillations or consolidations within the broader trend. This allows traders to potentially pinpoint entry and exit points based on temporary pullbacks or reversals.
Visualize and Adapt
The Parabolic Grid Bot acts as a visual aid, enhancing your understanding of market dynamics. It allows you to "see the curve" by adapting the grid to the market's patterns. If the market shows a parabolic shape, like an upward curve followed by a peak and a downward turn (similar to a head and shoulders pattern), adjust the Accel and Curve to match. This highlights potential areas of interest for further analysis.
Beyond Straight Lines: Visualizing Market Cycle
Traditional technical analysis often employs straight lines, such as trend lines and support/resistance levels, to interpret market movements. However, many analysts, including Brian Millard, contend that these lines can be misleading. They propose that what might appear as a straight line could represent just a small part of a larger curve or cycle that's not fully visible on the chart.
Markets are inherently cyclical, marked by phases of expansion, contraction, and reversal. The Parabolic Grid Bot acknowledges this cyclical behavior by offering a dynamic, curved grid that adapts to these shifts. This approach helps traders move beyond the limitations of straight lines and visualize potential support and resistance levels in a way that better reflects the market's true nature
By capturing these cyclical patterns, whether subtle or pronounced, the Parabolic Grid Bot offers a nuanced understanding of market dynamics, potentially leading to more accurate interpretations of price action and informed trading decisions.
⚠️ DISCLAIMER⚠️
This indicator utilizes a parabolic curve fitting approach to visualize potential support and resistance levels. The mathematical formulas employed have been designed with adaptability and scalability in mind, aiming to accommodate various assets and price ranges. While the resulting curves may visually resemble parabolas, it's important to note that they might not strictly adhere to the precise mathematical definition of a parabola.
The indicator's calculations have been tested and generally produce reliable results. However, no guarantees are made regarding their absolute mathematical accuracy. Traders are encouraged to use this tool as part of their broader analysis and decision-making process, combining it with other technical indicators and market context.
Please remember that trading involves inherent risks, and past performance is not indicative of future results. It is always advisable to conduct your own research and exercise prudent risk management before making any trading decisions.
🧠 BEYOND THE CODE 🧠
The Parabolic Grid Bot, like the other grid bots in this series, is designed with education and community collaboration in mind. Its open-source nature encourages exploration, experimentation, and the development of new grid trading strategies. We hope this indicator serves as a framework and a starting point for future innovations in the field of grid trading.
Your comments, suggestions, and discussions are invaluable in shaping the future of this project. We welcome your feedback and look forward to seeing how you utilize and enhance the Parabolic Grid Bot.
Swing Failure Pattern SFP [TradingFinder] SFP ICT Strategy🔵 Introduction
The Swing Failure Pattern (SFP), also referred to as a "Fake Breakout" or "False Breakout," is a vital concept in technical analysis. This pattern is derived from classic technical analysis, price action strategies, ICT concepts, and Smart Money Concepts.
It’s frequently utilized by traders to identify potential trend reversals in financial markets, especially in volatile markets like cryptocurrencies and forex. SFP helps traders recognize failed attempts to breach key support or resistance levels, providing strategic opportunities for trades.
The Swing Failure Pattern (SFP) is a popular strategy among traders used to identify false breakouts and potential trend reversals in the market. This strategy involves spotting moments where the price attempts to break above or below a previous high or low (breakout) but fails to sustain the move, leading to a sharp reversal.
Traders use this strategy to identify liquidity zones where stop orders (stop hunt) are typically placed and targeted by larger market participants or whales.
When the price penetrates these areas but fails to hold the levels, a liquidity sweep occurs, signaling exhaustion in the trend and a potential reversal. This strategy allows traders to enter the market at the right time and capitalize on opportunities created by false breakouts.
🟣 Types of SFP
When analyzing SFPs, two main variations are essential :
Real SFP : This occurs when the price breaks a critical level but fails to close above it, then quickly reverses. Due to its clarity and strong signal, this SFP type is highly reliable for traders.
Considerable SFP : In this scenario, the price closes slightly above a key level but quickly declines. Although significant, it is not as definitive or trustworthy as a Real SFP.
🟣 Understanding SFP
The Swing Failure Pattern, or False Breakout, is identified when the price momentarily breaks a crucial support or resistance level but cannot maintain the movement, leading to a rapid reversal.
The pattern can be categorized as follows :
Bullish SFP : This type occurs when the price dips below a support level but rebounds above it, signaling that sellers failed to push the price lower, indicating a potential upward trend.
Bearish SFP : This pattern forms when the price surpasses a resistance level but fails to hold, suggesting that buyers couldn’t maintain the higher price, leading to a potential decline.
🔵 How to Use
To effectively identify an SFP or Fake Breakout on a price chart, traders should follow these steps :
Identify Key Levels: Locate significant support or resistance levels on the chart.
Observe the Fake Breakout: The price should break the identified level but fail to close beyond it.
Monitor Price Reversal: After the breakout, the price should quickly reverse direction.
Execute the Trade: Traders typically enter the market after confirming the SFP.
🟣 Examples
Bullish Example : Bitcoin breaks below a $30,000 support level, drops to $29,000, but closes above $30,000 by the end of the day, signaling a Real Bullish SFP.
Bearish Example : Ethereum surpasses a $2,000 resistance level, rises to $2,100, but then falls back below $2,000, forming a Bearish SFP.
🟣 Pros and Cons of SFP
Pros :
Effective in identifying strong reversal points.
Offers a favorable risk-to-reward ratio.
Applicable across different timeframes.
Cons :
Requires experience and deep market understanding.
Risk of encountering false breakouts.
Should be combined with other technical tools for optimal effectiveness.
🔵 Settings
🟣 Logical settings
Swing period : You can set the swing detection period.
SFP Type : Choose between "All", "Real" and "Considerable" modes to identify the swing failure pattern.
Max Swing Back Method : It is in two modes "All" and "Custom". If it is in "All" mode, it will check all swings, and if it is in "Custom" mode, it will check the swings to the extent you determine.
Max Swing Back : You can set the number of swings that will go back for checking.
🟣 Display settings
Displaying or not displaying swings and setting the color of labels and lines.
🟣 Alert Settings
Alert SFP : Enables alerts for Swing Failure Pattern.
Message Frequency : Determines the frequency of alerts. Options include 'All' (every function call), 'Once Per Bar' (first call within the bar), and 'Once Per Bar Close' (final script execution of the real-time bar). Default is 'Once per Bar'.
Show Alert Time by Time Zone : Configures the time zone for alert messages. Default is 'UTC'.
🔵 Conclusion
The Swing Failure Pattern (SFP), or False Breakout, is an essential analytical tool that assists traders in identifying key market reversal points for successful trading.
By understanding the nuances between Real SFP and Considerable SFP, and integrating this pattern with other technical analysis tools, traders can make more informed decisions and better manage their trading risks.
Median Supertrend | viResearchMedian Supertrend | viResearch
Conceptual Foundation and Innovation
The "Median Supertrend" indicator, developed by viResearch, offers a unique approach to identifying trends by combining a median-based smoothing mechanism with a modified Supertrend calculation. Unlike the traditional Supertrend, which relies solely on price data, this version calculates a median percentile of the closing price over a specified length, resulting in a more accurate representation of underlying trends.
Technical Composition and Calculation
The "Median Supertrend" enhances the conventional Supertrend formula by introducing improvements to minimize lag and improve responsiveness to market volatility.
Median Smoothing:
The script uses the 50th percentile of the closing price over a user-defined period to provide a smoother representation of price movements, reducing the influence of short-term price spikes or dips for more stable trend analysis.
Supertrend Calculation:
The indicator applies the Average True Range (ATR) to determine the upper and lower trend bands, which are then shifted above or below the smoothed price (median) by a multiple of the ATR, customizable by users to adjust sensitivity.
Trend Logic:
The script uses the upper and lower bands to detect whether the price is trending upwards or downwards and introduces persistence logic to prevent excessive shifting of the bands during consolidating market phases. This mechanism ensures that once the trend changes, the bands adjust smoothly rather than oscillating with each price movement.
Directional Analysis:
Based on price action relative to the trend bands, a directional variable (d) is computed to track whether the price crosses above or below these bands, signaling uptrends or downtrends. The script also includes events to detect transitions from bullish to bearish trends and vice versa, with the option to set alerts for timely decision-making.
Features and User Inputs
The "Median Supertrend" offers several customizable parameters to suit different trading styles:
Supertrend Length: Defines the period used to calculate the smoothing, allowing users to adjust the indicator's sensitivity based on market conditions.
Multiplier: Controls how far the trend bands are placed from the median price. Traders can increase the multiplier for less frequent trend changes or decrease it for more sensitive detection.
Median Length: Governs the length over which the median price is calculated, providing further customization to balance responsiveness and stability.
Practical Applications
The "Median Supertrend" is particularly useful in markets with rapid trend reversals and high volatility, offering an effective way to filter out noise and capture significant trend changes promptly.
Key Uses:
Trend Following: The indicator's primary function is to identify prevailing trends and guide traders in aligning with the market's direction, with its smoothing mechanism helping to ensure reliable trend signals.
Trend Reversal Detection: By tracking crossovers and crossunders relative to the Supertrend bands, the indicator helps traders detect potential reversals early, making it valuable in fast-moving markets.
Strategic Positioning: With adjustable sensitivity and real-time alerts, the "Median Supertrend" can adapt to a variety of trading strategies, from scalping to longer-term trend-following.
Advantages and Strategic Value
The "Median Supertrend" offers advantages over traditional trend indicators:
Reduced Noise: Median smoothing reduces noise from extreme price movements, ensuring more reliable trend signals.
Customizability: With adjustable length and multiplier settings, the indicator allows traders to fine-tune its sensitivity for different market conditions.
Responsiveness: Median-based smoothing, coupled with the ATR, provides a more responsive and adaptive measure of trend direction, particularly valuable in volatile markets.
Summary and Usage Tips
The "Median Supertrend" indicator is a potent tool for capturing market trends with increased precision and reduced lag. It combines the best features of traditional Supertrend indicators with the added stability of median-based smoothing, making it highly effective in volatile markets. Traders are encouraged to experiment with the length and multiplier settings to optimize the indicator for their specific trading strategies, while alerts and visual cues further enhance its utility.
Please keep in mind the following text: Backtests are based on past results and are not indicative of future performance.
N Bar Reversal Detector [LuxAlgo]The N Bar Reversal Detector is designed to detect and highlight N-bar reversal patterns in user charts, where N represents the length of the candle sequence used to detect the patterns. The script incorporates various trend indicators to filter out detected signals and offers a range of customizable settings to fit different trading strategies.
🔶 USAGE
The N-bar reversal pattern extends the popular 3-bar reversal pattern. While the 3-bar reversal pattern involves identifying a sequence of three bars signaling a potential trend reversal, the N-bar reversal pattern builds on this concept by incorporating additional bars based on user settings. This provides a more comprehensive indication of potential trend reversals. The script automates the identification of these patterns and generates clear, visually distinct signals to highlight potential trend changes.
When a reversal chart pattern is confirmed and aligns with the price action, the pattern's boundaries are extended to create levels. The upper boundary serves as resistance, while the lower boundary acts as support.
The script allows users to filter patterns based on the trend direction identified by various trend indicators. Users can choose to view patterns that align with the detected trend or those that are contrary to it.
🔶 DETAILS
🔹 The N-bar Reversal Pattern
The N-bar reversal pattern is a technical analysis tool designed to signal potential trend reversals in the market. It consists of N consecutive bars, with the first N-1 bars used to identify the prevailing trend and the Nth bar confirming the reversal. Here’s a detailed look at the pattern:
Bullish Reversal : In a bullish reversal setup, the first bar is the highest among the first N-1 bars, indicating a prevailing downtrend. Most of the remaining bars in this sequence should be bearish (closing lower than where they opened), reinforcing the existing downward momentum. The Nth (most recent) bar confirms a bullish reversal if its high price is higher than the high of the first bar in the sequence (standard pattern). For a stronger signal, the closing price of the Nth bar should also be higher than the high of the first bar.
Bearish Reversal : In a bearish reversal setup, the first bar is the lowest among the first N-1 bars, indicating a prevailing uptrend. Most of the remaining bars in this sequence should be bullish (closing higher than where they opened), reinforcing the existing upward momentum. The Nth bar confirms a bearish reversal if its low price is lower than the low of the first bar in the sequence (standard pattern). For a stronger signal, the closing price of the Nth bar should also be lower than the low of the first bar.
🔹 Min Percentage of Required Candles
This parameter specifies the minimum percentage of candles that must be bullish (for a bearish reversal) or bearish (for a bullish reversal) among the first N-1 candles in a pattern. For higher values of N, it becomes more challenging for all of the first N-1 candles to be consistently bullish or bearish. By setting a percentage value, P, users can adjust the requirement so that only a minimum of P percent of the first N-1 candles need to meet the bullish or bearish condition. This allows for greater flexibility in pattern recognition, accommodating variations in market conditions.
🔶 SETTINGS
Pattern Type: Users can choose the type of the N-bar reversal patterns to detect: Normal, Enhanced, or All. "Normal" detects patterns that do not necessarily surpass the high/low of the first bar. "Enhanced" detects patterns where the last bar surpasses the high/low of the first bar. "All" detects both Normal and Enhanced patterns.
Reversal Pattern Sequence Length: Specifies the number of candles (N) in the sequence used to identify a reversal pattern.
Min Percentage of Required Candles: Sets the minimum percentage of the first N-1 candles that must be bullish (for a bearish reversal) or bearish (for a bullish reversal) to qualify as a valid reversal pattern.
Derived Support and Resistance: Toggles the visibility of the support and resistance levels/zones.
🔹 Trend Filtering
Filtering: Allows users to filter patterns based on the trend indicators: Moving Average Cloud, Supertrend, and Donchian Channels. The "Aligned" option only detects patterns that align with the trend and conversely, the "Opposite" option detects patterns that go against the trend.
🔹 Trend Indicator Settings
Moving Average Cloud: Allows traders to choose the type of moving averages (SMA, EMA, HMA, etc.) and set the lengths for fast and slow moving averages.
Supertrend: Options to set the ATR length and factor for Supertrend.
Donchian Channels: Option to set the length for the channel calculation.
🔶 RELATED SCRIPTS
Reversal-Candlestick-Structure.
Reversal-Signals.
Season ChartThis overlay is built on the idea of seasonal charts.
It is constructed by taking the percentage change from each close and recording that change for every trading day of any year that is within the sample. We then take the average for each day of all the years.
These averages are then cumulated to create the chart as per traditional seasonal chart construction.
I have also taken a trimmed mean of the averages to try and dampen the impact one off moves that may have a dramatic effect on the daily averages (for example the crash to $0 in oil in April 2020) however, even removing 10% may not guarantee one off moves won’t affect the average.
The construction of the chart is completely dependent on the data provided by TradingView and so it is recommended that if longer sample sizes are used, the user go back to check that the years contained within the sample have a full history. Some data may have large gaps in their history and this can distort the seasonality readings.
I have attempted to align the chart with the first trading day of the year, but the start of some months may be out by a day or two as it becomes difficult to track all weeks with differing market holidays closures each year and this in turn varies the total amount of actual trading days in each year as well as leap years.
This overlay is designed for the Daily time frame only and will not work on Crypto or any other instrument that trades outside of usual business weekdays. Future updates may include the ability to adapt to Crypto instruments.
All feedback and comments welcome!
Open Equals Low/High Candles
This Indicator basically helps us to get the candles where Open = Low & Open =High.
Significance:
1) Open = Low Candles
----> Such candles are very powerful, as the Open = Low marks that there aren't any sellers left below the price on that day. Denoting BULLS power and aggression.
2) Open = High Candles
----> Open = High Candles signify that as soon as the markets opened, Bears were very strong, and no buyers left above the opening price for that candle. Denoting Strong BEARISH sentiment and aggression.
PS: This indicator can be used across all timeframes and indices. As it is purely based on Price-Action study.
RSI based MAGot it! Here’s some information in English specifically about the **RSI-based Moving Average (RSI-based MA)** that we wrote the Pine Script code for:
### RSI-Based Moving Average (RSI-based MA)
An **RSI-based Moving Average (RSI-based MA)** is a technical analysis tool that combines the Relative Strength Index (RSI) with moving averages to provide more insight into market trends and potential reversals. This indicator can be particularly useful for identifying the beginning and end of trends, allowing traders to make more informed decisions.
### How RSI-based MA Works
The RSI-based MA indicator calculates the moving average of the RSI values rather than the asset's price itself. In the script you asked for, we implemented two RSI-based moving averages: one for a 1-minute timeframe and another for a 5-minute timeframe. This dual timeframe approach can help traders spot trends more accurately and identify shifts in momentum across different time periods.
#### Key Features of RSI-based MA:
1. **Dual Timeframe Analysis**:
- The script plots two RSI-based moving averages on the same chart:
- **1-minute RSI-based MA**: A moving average calculated based on RSI values over a 1-minute interval.
- **5-minute RSI-based MA**: A moving average calculated based on RSI values over a 5-minute interval.
- Using different timeframes helps traders see both short-term and longer-term trends simultaneously.
2. **RSI Levels**:
- The RSI-based MA plots values between 0 and 100, similar to the RSI itself. Traders can use typical RSI levels, such as 70 (overbought) and 30 (oversold), to identify potential entry and exit points.
- **Overbought condition**: When the RSI-based MA moves above 70, it indicates the asset might be overbought, suggesting a potential for price to drop.
- **Oversold condition**: When the RSI-based MA drops below 30, it signals that the asset might be oversold, indicating a potential price increase.
3. **Crossovers**:
- **Bullish signal**: If the shorter 1-minute RSI-based MA crosses above the longer 5-minute RSI-based MA, this could indicate a new upward trend beginning.
- **Bearish signal**: Conversely, if the 1-minute RSI-based MA crosses below the 5-minute RSI-based MA, it could suggest the beginning of a downward trend.
### Potential Advantages
- **Smoother Trend Identification**: By applying moving averages to RSI, you can smooth out the short-term fluctuations in RSI values, making it easier to identify the underlying trend.
- **Versatility**: The indicator can be customized for different timeframes and settings, allowing it to be tailored to various trading strategies and asset classes.
- **Enhanced Signals**: Combining RSI and moving averages helps filter out noise, providing more reliable signals for potential trend changes or continuations.
### Potential Limitations
- **Lagging Indicator**: Like most moving averages, RSI-based MAs are lagging indicators. They tend to react after price movements have already begun, which could result in delayed signals.
- **False Signals**: In ranging or highly volatile markets, RSI-based MA may give false signals, indicating a trend reversal or continuation that does not occur.
- **Should Not Be Used Alone**: It's often recommended to use RSI-based MA alongside other technical indicators (like MACD, Bollinger Bands, or moving average crossovers) to confirm signals and reduce the risk of false readings.
### Conclusion
The RSI-based MA can be a powerful tool for traders looking to enhance their understanding of market trends and momentum. By combining RSI with moving averages, traders can smooth out RSI readings and gain a clearer view of the market’s direction. However, as with any indicator, it should be used in conjunction with other tools and strategies to maximize its effectiveness and reduce risk.
Honey Badger and Dip and Rip Days**Definitions**
A Honey Badger Day is defined as a day where the market dips below a certain threshold but then closes above it. Specifically:
- The day's low is less than or equal to the lower of either the opening price or the previous day's closing price.
- The day's closing price is greater than or equal to this same lower threshold.
Dip and Rip Day:A Dip and Rip Day is characterized by a more pronounced dip followed by a stronger recovery. The criteria are:
- The day's low is below 0.11% of the lower of the day's opening price or the previous day's closing price.
- The day's closing price is at least 0.405% higher than its opening price.
- The day's closing price is at least 0.792% higher than its low.
- The day's closing price is at least 0.405% higher than the previous day's closing price.
Both patterns indicate a day where the market experiences a dip but then recovers, with the Dip and Rip pattern showing a more dramatic movement in both directions.
High-Low Cloud Trend [ChartPrime]The High-Low Cloud Trend - ChartPrime indicator, combines the concepts of trend following and mean reversion into a dynamic cloud representation. This indicator constructs high and low bands based on lookback periods, which adjust dynamically to reflect market conditions. By highlighting the upper and lower extremes, it provides a visual gauge for potential reversals and continuation points.
◆ KEY FEATURES
Dynamic Cloud Bands : Uses high and low derived from user-defined lookback periods to create reactive bands that illustrate trend strength and potential reversal zones.
Color-coded Visualization : Applies distinct colors to the bands based on the trend direction, improving readability and decision-making speed.
Mean Reversion Detection : Identifies points where price extremes may revert to a mean, signaling potential entry or exit opportunities based on deviation from expected values.
Flexible Visualization : Offers options to display volume or price-based metrics within labels, enhancing analytical depth.
◆ FUNCTIONALITY DETAILS
Band Formation : Calculates two sets of bands; one based on a primary lookback period and another for a shorter period to capture mean reversion points.
◆ USAGE
Trend Confirmation : Use the main bands to confirm the prevailing market trend, with the cloud filling acting as a visual guide.
Breakout Identification : Monitor for price breaks through the cloud to identify strong momentum that may suggest a viable breakout.
Risk Management : Adjust positions based on the proximity of price to either band, using these as potential support or resistance areas.
Mean Reversion Strategies : Apply mean reversion techniques when price touches or crosses the bands, indicating a possible return to a central value.
⯁ USER INPUTS
Lookback Period : Sets the primary period for calculating high and low bands.
Mean Reversion Points : Toggles the identification of mean reversion opportunities within the bands.
Volume/Price Display : Chooses between displaying volume or price information in the indicator's labels for enhanced detail.
The High-Low Cloud Trend indicator is a versatile and powerful tool for traders who engage in both trend following and mean reversion strategies. It provides a clear visual representation of market dynamics, helping traders to make informed decisions based on established and emerging patterns. This indicator's dual approach ensures that it is suitable for various trading styles and market conditions.
Standardized PSAR Oscillator [AlgoAlpha]Enhance your trading experience with the "Standardized PSAR Oscillator" 🪝, a powerful tool that combines the Parabolic Stop and Reverse (PSAR) with standardization techniques to offer more nuanced insights into market trends and potential reversals.
🔑 Key Features:
- 🛠 Customizable PSAR Settings: Adjust the starting point, increment, and maximum values for the PSAR to tailor the indicator to your strategy.
- 📏 Standardization: Smooth out volatility by standardizing the PSAR values using a customizable EMA, making reversals easier to identify.
- 🎨 Dynamic Color-Coding: The oscillator changes colors based on market conditions, helping you quickly spot bullish and bearish trends.
- 🔄 Divergence Detection: Automatic detection of bullish and bearish divergences with customizable sensitivity and confirmation settings.
- 🔔 Alerts: Set up alerts for key events like zero-line crossovers and trend weakening, ensuring you never miss a critical market move.
🚀 How to Use:
✨ Add the Indicator: Add the indicator to favorites by pressing the star icon, adjust the settings to suite your needs.
👀 Monitor Signals: Watch for the automatic plotting of divergences and reversal signals to identify potential market entries and exits.
🔔 Set Alerts: Configure alerts to get notified of key changes without constantly monitoring the charts.
🔍 How It Works:
The Standardized PSAR Oscillator is an advanced trading tool that refines the traditional PSAR (Parabolic Stop and Reverse) indicator by incorporating several key enhancements to improve trend analysis and signal accuracy. The script begins by calculating the PSAR, a widely used indicator known for its effectiveness in identifying trend reversals. To make the PSAR more adaptive and responsive to market conditions, it is standardized using an Exponential Moving Average (EMA) of the high-low range over a user-defined period. This standardization helps to normalize the PSAR values, making them more comparable across different market conditions.
To further enhance signal clarity, the standardized PSAR is then smoothed using a Weighted Moving Average (WMA). This combination of EMA and WMA creates an oscillator that not only captures trend direction but also smooths out market noise, providing a cleaner signal. The oscillator's values are color-coded to visually indicate its position relative to the zero line, with additional emphasis on whether the WMA is rising or falling—this helps traders quickly interpret the trend’s strength and direction.
The oscillator also includes built-in divergence detection by comparing pivot points in price action with those in the oscillator. This feature helps identify potential discrepancies between the price and the oscillator, signaling possible trend reversals. Alerts can be configured for when the oscillator crosses the zero line or when a trend shows signs of weakening, ensuring that traders receive timely notifications to act on emerging opportunities. These combined elements make the Standardized PSAR Oscillator a robust tool for enhancing your trading strategy with more reliable and actionable signals
Periodical Trend [BigBeluga]The Periodical Trend indicator is designed to provide a detailed analysis of market trends and volatility. It utilizes a combination of Moving Averages and volatility measures to plot trend line, highlight potential trend reversals, and indicate mean reversion opportunities. The indicator offers customizable display options, allowing traders to adjust for sensitivity, volatility bands, and price deviation visibility.
🔵 KEY FEATURES
● Periodical Trend Analysis
Uses (high + volatility) or (low - volatility) as the foundation for trend analysis with a set period.
// Condition to update the AVG array based on the selected mode
if mode == "Normal"
? bar_index == 122
: bar_index % period == 0
AVG.push(close) // Add the close price to the AVG array
// Update AVG array based on the period and price comparison
if bar_index % period == 0
if close > AVG.last() // If the current close is greater than the last stored value in AVG
AVG.push(low - vlt) // Add the low price minus volatility to the array
if close < AVG.last() // If the current close is lower than the last stored value in AVG
AVG.push(high + vlt) // Add the high price plus volatility to the array
Provides adjustable sensitivity modes ("Normal" and "Sensitive") for different market conditions.
Trend direction is visualized with dynamic color coding based on the relationship between the trend line and price.
● Volatility Bands
Displays upper and lower volatility bands derived from a moving average of price volatility (high-low).
The bands help identify potential breakout zones, overbought, or oversold conditions.
Users can toggle the visibility of the bands to suit their trading style.
● Mean Reversion Signals
Detects mean reversion opportunities when price deviates significantly from the trend line.
Includes both regular and strong mean reversion signals, marked directly on the chart.
Signals are based on oscillator crossovers, offering potential entry and exit points.
● Price Deviation Oscillator
Plots an oscillator that measures the deviation of price from the average trend line.
The oscillator is normalized using standard deviation, highlighting extreme price deviations.
Traders can choose to display the oscillator for in-depth analysis of price behavior relative to the trend.
● Dynamic Trend Coloring
The indicator colors the background on the direction of the trend.
Green indicates bullish trends, while blue indicates bearish trends.
The trend colors adapt dynamically to market conditions, providing clear visual cues for traders.
🔵 HOW TO USE
● Trend Analysis
The trend line represents the current market direction. A green trend line suggests a bullish trend, while a blue trend line indicates a bearish trend.
Use the trend line in conjunction with volatility bands to confirm potential breakouts or areas of consolidation.
● Volatility Bands
Volatility bands offer insight into potential overbought or oversold conditions.
Price exceeding these bands can signal a strong trend continuation or a possible reversal.
● Mean Reversion Strategies
Look for mean reversion signals (regular and strong) when price shows signs of reverting to the trend line after significant deviation.
Regular signals are represented by small dots, while strong signals are represented by larger circles.
These signals can be used as entry or exit points, depending on the market context.
● Price Deviation Analysis
The oscillator provides a detailed view of price deviations from the trend line.
A positive oscillator value indicates that the price is above the trend, while a negative value suggests it is below.
Use the oscillator to identify potential overbought or oversold conditions within the trend.
🔵 USER INPUTS
● Period
Defines the length of the period used for calculating the trend line. A higher period smooths out the trend, while a shorter period makes the trend line more sensitive to price changes.
● Mode
Choose between "Normal" and "Sensitive" modes for trend detection. The "Sensitive" mode responds more quickly to price changes, while the "Normal" mode offers smoother trend lines.
● Volatility Bands
Toggle the display of upper and lower volatility bands. These bands help identify potential areas of price exhaustion or continuation.
● Price Deviation
Toggle the display of the price deviation oscillator. This oscillator shows the deviation of the current price from the trend line and highlights extreme conditions.
● Mean Reversion Signals
Toggle the display of mean reversion signals. These signals highlight potential reversal points when the price deviates significantly from the trend.
● Strong Mean Reversion Signals
Toggle the display of stronger mean reversion signals, which occur at more extreme deviations from the trend.
● Width
Adjust the thickness of the trend line for better visibility on the chart.
🔵 CONCLUSION
The Periodical Trend indicator combines trend analysis, volatility bands, and mean reversion signals to provide traders with a comprehensive tool for market analysis. By offering customizable display options and dynamic trend coloring, this indicator can adapt to different trading styles and market conditions. Whether you are a trend follower or a mean reversion trader, the Periodical Trend indicator helps identify key market opportunities and potential reversals.
For optimal results, it is recommended to use this indicator alongside other technical analysis tools and within the context of a well-structured trading strategy.
[MACC] Moving Average Candle ColorThe simplest trading framework is using moving average. This indicator is harnessing that very method.
What It Does:
This indicator helps you see market trends at a glance by changing the color of the candlesticks based on the relationship between two Exponential Moving Averages (EMAs). When the 9-period EMA is above the 21-period EMA, candlesticks turn green, suggesting a bullish trend. When the 9 EMA is below the 21 EMA, candlesticks turn red, indicating a bearish trend.
Why You'll Love It:
Easy Trend Visualization: Quickly spot trends and potential reversals with color-coded candlesticks.
Customizable Settings: Adjust the lengths of the EMAs to fit your trading style. Just change the values in the settings panel and watch the indicator update in real-time.
Optional EMA Lines: See the EMA lines plotted on your chart for added context and trend confirmation.
How to Use It:
Green Candlesticks: It’s a sign that the trend is likely upward.
Red Candlesticks: signaling a potential downward trend.
Customization:
EMA Lengths: You can set the lengths for the 9 EMA and 21 EMA to whatever fits your trading strategy best.
Colors: Adjust the colors if you want to match your chart’s theme.
Get Started: Add this indicator to your TradingView chart and tweak the settings to see how it helps you track market trends more effectively.
Cherio...
Greer BuyZone toolGreer BuyZone Tool
Description:
The Greer BuyZone Tool is a custom Pine Script indicator designed to help identify potential long-term investment opportunities by marking BuyZones on the chart. This tool utilizes the Aroon indicator in combination with Fibonacci numbers to define periods where the asset might be a good candidate for dollar-cost averaging.
Features:
BuyZone Detection: The script identifies and marks the beginning and end of a BuyZone with vertical lines and labels.
Visual Markers: A red vertical line and label indicate the start of a BuyZone, while a green vertical line and label mark the end of a BuyZone.
Aroon Indicator Calculation: Utilizes the Aroon indicator with a Fibonacci length (233) to determine key price levels.
How to Use:
Setup: Add the Greer BuyZone Tool to your TradingView chart. It will display vertical lines and labels marking the BuyZone periods.
BuyZone Identification: Use the red lines and labels ("BZ Begins ->>") to identify the start of a BuyZone, and the green lines and labels ("<<- BZ Ends") to determine when the BuyZone ends.
Long-Term Investment: This tool is intended for long-term investing and dollar-cost averaging strategies, not for day trading.
Disclaimer:
This script is provided for informational purposes only and is not intended as financial advice. The Greer BuyZone Tool is designed to assist in identifying potential long-term investment opportunities and is not suitable for day trading. The use of this tool involves risk, and there is no guarantee of profitability. Users are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The creator of this script assumes no liability for any losses or damages resulting from the use of this indicator.
Author: Sean Lee Greer
Date: 9/1/2024
Dynamic Trailing Stop with Trend ChangeKey features of this script:
Trend Identification: Uses previous day's high/low breaks to identify trend changes.
Uptrend starts when price closes above the previous day's high.
Downtrend starts when price closes below the previous day's low.
Dynamic Trailing Stop:
In an uptrend, the stop is set to the previous day's low and trails higher.
In a downtrend, the stop is set to the previous day's high and trails lower.
Visual Indicators:
Green triangle for uptrend start, red triangle for downtrend start.
Green/red line for the trailing stop.
Background color changes to light green in uptrends, light red in downtrends.
Alerts:
Trend change alerts when a new trend is identified.
Stop hit alerts when price crosses the trailing stop, suggesting a potential exit.
This implementation allows you to:
Identify trend changes based on previous day's high/low breaks.
Trail your stop loss dynamically as the trend progresses.
Get visual and alert-based signals for trend changes and potential exit points.
For swing trading, you could:
Enter long when an uptrend starts (green triangle).
Set your initial stop loss to the trailing stop (green line).
Exit if the price closes below the trailing stop or a downtrend starts (red triangle).
(Reverse for short trades)
Remember, while this strategy can be effective, it's important to combine it with other forms of analysis and proper risk management. The effectiveness can vary depending on the volatility of the asset and overall market conditions. Always test thoroughly before using in live trading.
