SuperThreeThe SuperThree is a comprehensive technical indicator designed to identify and visualize market trends and counter-trend momentum in trading. It uses a unique color-coding system to represent different market conditions and potential trading opportunities.
Uptrend (Green Fill) : This is indicated by a green fill. An uptrend is a period where prices are increasing overall, suggesting a strong market. It’s an ideal time for traders to consider entering long positions or exiting short positions.
Downtrend (Red Fill) : This is represented by a red fill. A downtrend is a period where prices are decreasing overall, indicating a bearish market. Traders might consider entering short positions or exiting long positions during this phase.
Sideways Trend (Blue Fill) : This is shown by a blue fill. A sideways trend, also known as a horizontal trend, is when the price is relatively stable and not making significant upward or downward movements. It’s often a period of consolidation before the price moves up or down.
Counter-Trend Momentum (Blue Arrows) : Blue arrows indicate counter-trend momentum, which can be a signal to exit trades or look for potential trend reversals. These are crucial points where the market’s momentum is shifting and may be about to move in the opposite direction.
The SuperThree indicator is an enhancement of the Supertrend indicator, providing additional features and visual cues to help traders make informed decisions. However, like all indicators, it should be used in conjunction with other forms of analysis to confirm signals and avoid potential false positives. Always consider your risk tolerance and investment goals before making trading decisions.
Happy trading! 😊
Trendtrading
Adaptive Trend Lines [MAMA and FAMA]Updated my previous algo on the Adaptive Trend lines, however I have added new functionalities and sorted out the settings.
You can now switch between normalized and non-normalized settings, the colors have also been updated and look much better.
The MAMA and FAMA
These indicators was originally developed by John F. Ehlers (Stocks & Commodities V. 19:10: MESA Adaptive Moving Averages). Everget wrote the initial functions for these in pine script. I have simply normalized the indicators and chosen to use the Laplace transformation instead of the hilbert transformation
How the Indicator Works:
The indicator employs a series of complex calculations, but we'll break it down into key steps to understand its functionality:
LaplaceTransform: Calculates the Laplace distribution for the given src input. The Laplace distribution is a continuous probability distribution, also known as the double exponential distribution. I use this because of the assymetrical return profile
MESA Period: The indicator calculates a MESA period, which represents the dominant cycle length in the price data. This period is continuously adjusted to adapt to market changes.
InPhase and Quadrature Components: The InPhase and Quadrature components are derived from the Hilbert Transform output. These components represent different aspects of the price's cyclical behavior.
Homodyne Discriminator: The Homodyne Discriminator is a phase-sensitive technique used to determine the phase and amplitude of a signal. It helps in detecting trend changes.
Alpha Calculation: Alpha represents the adaptive factor that adjusts the sensitivity of the indicator. It is based on the MESA period and the phase of the InPhase component. Alpha helps in dynamically adjusting the indicator's responsiveness to changes in market conditions.
MAMA and FAMA Calculation: The MAMA and FAMA values are calculated using the adaptive factor (alpha) and the input price data. These values are essentially adaptive moving averages that aim to capture the current trend more effectively than traditional moving averages.
But Omar, why would anyone want to use this?
The MAMA and FAMA lines offer benefits:
The indicator offers a distinct advantage over conventional moving averages due to its adaptive nature, which allows it to adjust to changing market conditions. This adaptability ensures that investors can stay on the right side of the trend, as the indicator becomes more responsive during trending periods and less sensitive in choppy or sideways markets.
One of the key strengths of this indicator lies in its ability to identify trends effectively by combining the MESA and MAMA techniques. By doing so, it efficiently filters out market noise, making it highly valuable for trend-following strategies. Investors can rely on this feature to gain clearer insights into the prevailing trends and make well-informed trading decisions.
This indicator is primarily suppoest to be used on the big timeframes to see which trend is prevailing, however I am not against someone using it on a timeframe below the 1D, just be careful if you are using this for modern portfolio theory, this is not suppoest to be a mid-term component, but rather a long term component that works well with proper use of detrended fluctuation analysis.
Dont hesitate to ask me if you have any questions
Again, I want to give credit to Everget and ChartPrime!
Code explanation as required by House Rules:
fastLimit = input.float(title='Fast Limit', step=0.01, defval=0.01, group = "Indicator Settings")
slowLimit = input.float(title='Slow Limit', step=0.01, defval=0.08, group = "Indicator Settings")
src = input(title='Source', defval=close, group = "Indicator Settings")
input.float: Used to create input fields for the user to set the fastLimit and slowLimit values.
input: General function to get user inputs, like the data source (close price) used for calculations.
norm_period = input.int(3, 'Normalization Period', 1, group = "Normalized Settings")
norm = input.bool(defval = true, title = "Use normalization", group = "Normalized Settings")
input.int: Creates an input field for the normalization period.
input.bool: Allows the user to toggle normalization on or off.
Color settings in the code:
col_up = input.color(#22ab94, group = "Color Settings")
col_dn = input.color(#f7525f, group = "Color Settings")
Constants and functions
var float PI = math.pi
laplace(src) =>
(0.5) * math.exp(-math.abs(src))
_computeComponent(src, mesaPeriodMult) =>
out = laplace(src) * mesaPeriodMult
out
_smoothComponent(src) =>
out = 0.2 * src + 0.8 * nz(src )
out
math.pi: Represents the mathematical constant π (pi).
laplace: A function that applies the Laplace transform to the source data.
_computeComponent: Computes a component of the data using the Laplace transform.
_smoothComponent: Smooths data by averaging the current value with the previous one (nz function is used to handle null values).
Alpha function:
_computeAlpha(src, fastLimit, slowLimit) =>
mesaPeriod = 0.0
mesaPeriodMult = 0.075 * nz(mesaPeriod ) + 0.54
...
alpha = math.max(fastLimit / deltaPhase, slowLimit)
out = alpha
out
_computeAlpha: Calculates the adaptive alpha value based on the fastLimit and slowLimit. This value is crucial for determining the MAMA and FAMA lines.
Calculating MAMA and FAMA:
mama = 0.0
mama := alpha * src + (1 - alpha) * nz(mama )
fama = 0.0
fama := alpha2 * mama + (1 - alpha2) * nz(fama )
Normalization:
lowest = ta.lowest(mama_fama_diff, norm_period)
highest = ta.highest(mama_fama_diff, norm_period)
normalized = (mama_fama_diff - lowest) / (highest - lowest) - 0.5
ta.lowest and ta.highest: Find the lowest and highest values of mama_fama_diff over the normalization period.
The oscillator is normalized to a range, making it easier to compare over different periods.
And finally, the plotting:
plot(norm == true ? normalized : na, style=plot.style_columns, color=col_wn, title = "mama_fama_diff Oscillator Normalized")
plot(norm == false ? mama_fama_diff : na, style=plot.style_columns, color=col_wnS, title = "mama_fama_diff Oscillator")
Example of Normalized settings:
Example for setup:
Try to make sure the lower timeframe follows the higher timeframe if you take a trade based on this indicator!
FiboSequFiboSequ: Fibonacci Sequence Marking
Leonardo Fibonacci was an Italian mathematician who lived in the 12th century. His real name was Leonardo of Pisa, but he is commonly known as "Fibonacci." Fibonacci is famous for introducing the Hindu-Arabic numeral system to the Western world. This system is the basis of the modern decimal number system we use today.
Fibonacci Sequence
The Fibonacci sequence is a series of numbers that frequently appears in mathematics and nature. The first two numbers in the sequence are 0 and 1, and each subsequent number is the sum of the two preceding numbers.
The sequence is as follows:
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, ...
Fibonacci Time Zones:
Fibonacci time zones are used to identify potential turning points in the market at specific time intervals. These time zones correspond to the Fibonacci sequence in terms of consecutive days or weeks.
The Fibonacci sequence has a wide range of applications in both mathematics and nature. Leonardo Fibonacci's work has had a significant impact on the development of modern mathematics and numeral systems. In financial markets, the Fibonacci sequence and ratios are frequently used by technical analysts to predict and analyze market movements.
Description:
Overview:
The FiboSequ indicator marks significant days on a price chart based on the Fibonacci sequence. This can help traders identify potential turning points or areas of interest in the market. The Fibonacci sequence is a series of numbers where each number is the sum of the two preceding ones, often found in nature and financial markets.
Fibonacci Sequence:
The sequence used in this indicator includes: 1, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, and 2584.
These numbers represent the days to be marked on the chart, highlighting possible significant market movements.
How It Works:
User Input:
Users can input the starting date (Year, Month, and Day) from which the Fibonacci sequence will begin to be calculated.
This allows flexibility and customization based on the trader's analysis needs.
Calculation:
The starting date is converted into a timestamp in seconds.
For each bar on the chart, the number of days since the starting date is calculated.
The indicator checks if the current day matches any of the Fibonacci sequence days, the previous day, or the next day.
In this indicator, Fibonacci numbers can be displayed on the chart as plus and minus 2 days. For example, for the 145th day, signals start to appear as 143,144 and 145. This is due to dates that sometimes coincide with weekends and public holidays.
Marking the Chart:
When a match is found, a label is placed above the bar indicating the day number from the Fibonacci sequence.
These labels are colored blue with white text for easy visibility.
Usage:
This indicator can be used on any timeframe and market to help identify potential areas where price might react.
It is especially useful for those who employ Fibonacci analysis in their trading strategy.
Example:
If the starting date is January 1, 2020, the indicator will mark significant Fibonacci days (e.g., 1, 3, 5, 8 days, etc.) on the chart from this date onward.
Community Guidelines Compliance:
This indicator adheres to TradingView's Pine Script community guidelines.
It provides customizable user inputs and does not violate any terms of use.
By using the FiboSequ indicator, traders can enhance their technical analysis by incorporating time-based Fibonacci levels, potentially leading to better market timing and decision-making.
Frequently Asked Questions (FAQ)
Q: What is the FiboSequ indicator?
A: The FiboSequ indicator is a technical analysis tool that marks significant days on a price chart based on the Fibonacci sequence. This indicator helps traders identify potential turning points or areas of interest in the market.
Q: What is the Fibonacci sequence and why is it important?
A: The Fibonacci sequence is a series of numbers where each number is the sum of the two preceding ones. The first two numbers are 0 and 1. This sequence frequently appears in nature and financial markets and is used in technical analysis to identify important support and resistance levels.
Q: How do the Fibonacci time zones in the indicator work?
A: Fibonacci time zones are used to identify potential market turning points at specific time intervals. The indicator calculates days based on the Fibonacci sequence (e.g., 1, 3, 5, 8 days, etc.) from the starting date and marks them on the chart.
Q: How can users set the starting date?
A: Users can input the starting date by specifying the year, month, and day. This sets the date from which the indicator begins its calculations, providing flexibility for user analysis.
Q: What do the labels in the indicator represent?
A: The labels mark specific days in the Fibonacci sequence. For example, 1st day, 3rd day, 5th day, etc. These labels are displayed in blue with white text for easy visibility.
Q: Which timeframes can I use the FiboSequ indicator on?
A: The FiboSequ indicator can be used on any timeframe. This includes daily, weekly, or monthly charts, as well as shorter timeframes.
Q: Which markets can the FiboSequ indicator be used in?
A: The FiboSequ indicator can be used in various financial markets, including stocks, forex, cryptocurrencies, commodities, and more.
Q: How can I achieve better market timing with the FiboSequ indicator?
A: The FiboSequ indicator helps identify potential market turning points using time-based Fibonacci levels. This can lead to better market timing and more informed trading decisions for traders.
-Please feel free to write your valuable comments and opinions. I attach importance to your valuable opinions so that I can improve myself.
Trend Following Parabolic Buy Sell Strategy [TradeDots]The Trend Following Parabolic Buy-Sell Strategy leverages the Parabolic SAR in combination with moving average crossovers to deliver buy and sell signals within a trend-following framework.
This strategy synthesizes proven methodologies sourced from various trading tutorials available on platforms such as YouTube and blogs, enabling traders to conduct robust backtesting on their selected trading pairs to assess the strategy's effectiveness.
HOW IT WORKS
This strategy employs four key indicators to orchestrate its trading signals:
1. Trend Alignment: It first assesses the relationship between the price and the predominant trendline to determine the directional stance—taking long positions only when the price trends above the moving average, signaling an upward market trajectory.
2. Momentum Confirmation: Subsequent to trend alignment, the strategy looks for moving average crossovers as a confirmation that the price is gaining momentum in the direction of the intended trades.
3. Signal Finalization: Finally, buy or sell signals are validated using the Parabolic SAR indicator. A long order is validated when the closing price is above the Parabolic SAR dots, and similarly, conditions are reversed for short orders.
4. Risk Management: The strategy institutes a fixed stop-loss at the moving average trendline and a take-profit level determinable by a prefixed risk-reward ratio calculated from the moving average trendline. These parameters are customizable by the users within the strategy settings.
APPLICATION
Designed for assets exhibiting pronounced directional momentum, this strategy aims to capitalize on clear trend movements conducive to achieving set take-profit targets.
As a lagging strategy that waits for multiple confirmatory signals, entry into trades might occasionally lag beyond optimal timing.
Furthermore, in periods of consolidation or sideways movement, the strategy may generate several false signals, suggesting the potential need for additional market condition filters to enhance signal accuracy during volatile phases.
DEFAULT SETUP
Commission: 0.01%
Initial Capital: $10,000
Equity per Trade: 70%
Users are advised to adjust and personalize this trading strategy to better match their individual trading preferences and style.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
ZigZag Smart Trend [TradingFinder] Major & Minor Structured Wave🔵 Introduction
🟣 Zigzag
Zigzag is a lagging indicator; this indicator identifies points on a price chart that have more significant changes than its previous wave and then by connecting these lines to each other, it assists traders in trend detection.
This indicator reduces random price fluctuations and attempts to make the primary price trend clearer.
🟣 Pivot
Pivots are points where the price chart changes direction. Pivots, also called reversal points, form when supply and demand forces dominate one another.
Different types of technical analysis pivots can be introduced into two categories, minor pivots, and major pivots, each of which has a specific meaning in analysis.
Major Pivot : These pivots actually indicate major changes in the direction of the chart and occur at the end of trends. Analysts seeking to reach the primary analysis focus more on major pivot points. In fact, most technical analysis tools are examined and determined based on major pivots.
Minor Pivot : This type of pivot focuses more on small and subsidiary points and directions. Therefore, it occurs at the end of corrections. Analysts focusing on minor pivots represent small trends, and it should be noted that minor pivots are not suitable for use in primary technical tools.
How to identify minor and major pivots :
Minor pivots are pivots formed between two major pivots and fail to break the opposite major pivot.
Major pivots are pivots that have either successfully broken the opposite pivot or have moved more than the previous pivot of the same type.
🔵 How to use
Based on identifying pivots and drawing zigzag lines, you can have various uses for this indicator.
Identifying support and resistance levels :
Identifying Elliott Waves :
Identifying classic patterns :
Identifying pivots with higher validity :
Identifying internal and external breakouts :
Identifying trends and range areas :
Identifying pivot types along with major and minor recognition :
MHH : Major Higher High
MLH : Major Lower High
MLL : Major Lower Low
MHL : Major Higher Low
mHH : Minor Higher High
mLH : Minor Lower High
mLL : Minor Lower Low
mHL : Minor Higher Low
🔵 Settings
Pivot Period Zigzag Line : Using this input, you can determine the pivot period for identifying zigzag swings.
Show Zigzag Line : To show or not to show the zigzag line.
Zigzag Line Color : Change the color of the zigzag line.
Zigzag Line Style : Change the Style of the zigzag line.
Zigzag Line Width : Change the Width of the zigzag line.
Show Label : To show or not to show Pivot Type.
Color Label : Change the color of the Pivot Type Label.
Johnny's Trend Lines, Supports and ResistancesInspired and based on ismailcarlik's Trend Lines, Supports and Resistances.
Additions include an overall upgrade to Pinescript v5, changes in the way resistance and support levels are calculated, improved visual queues, and additional customization options.
This indicator is meticulously crafted to provide traders with visual tools for identifying trend lines, support, and resistance levels, enhancing the decision-making process in trading activities.
Features and Functionality
Trend Lines: The indicator allows users to enable or disable trend lines, adjust the number of points to check for establishing a trend, and set parameters for trend validation, including the maximum violation and exceptions for the last bars.
Support and Resistance: It offers tools to identify and visualize key support and resistance levels based on recent pivot points. This includes adjustable parameters for the maximum violations allowed and the exclusion of recent bars from the analysis.
Pivot Points: Users can define the pivot length for calculating highs and lows, which helps in marking significant pivot points that are instrumental in trend analysis.
Alerts and Notifications: The indicator is equipped with customizable alerts for trend line breaches and pivot point formations, which can be set to trigger at different frequencies based on user preference.
How It Works
Input Flexibility: Users can adjust various settings like the length of trend lines and pivot points, enabling or disabling specific features like marking pivots, and managing alert settings directly from the indicator’s input panel.
Dynamic Analysis: By analyzing the price action relative to the calculated trend lines and pivot points, the indicator dynamically identifies potential trend reversals, continuations, and significant price levels.
Visualization: It plots trend lines and marks support and resistance levels directly on the chart, with options to extend these lines and add labels for better clarity. Violated trend lines can be visually differentiated by changing their style and width.
Practical Application
Trend Line Strategy: Traders can use the trend lines to determine the strength of the current market trend and to spot potential reversal points.
Support and Resistance Strategy: By marking where the price has historically faced resistance or found support, traders can plan entry and exit points, set stop-loss orders, or identify breakout opportunities.
Pivot Points Strategy: Pivot points serve as vital indicators for intraday trading or long-term trend analysis, providing insights into potential support and resistance levels.
Customization and Alerts
Custom Alerts: Traders can set alerts for when the price crosses trend lines or when new support or resistance levels are formed, helping them stay informed of critical market movements without having to continuously monitor the charts.
Visual Customization: Users can personalize the appearance of trend lines and labels, choosing from a variety of colors and styles to match their chart setup or preferences.
"Johnny's Trend Lines, Supports and Resistances" is an essential tool for traders who rely on technical analysis, offering detailed insights and real-time updates on market conditions, trend strength, and potential price barriers.
Alligator + MA Trend Catcher [TradeDots]The "Alligator + MA Trend Catcher" is a trading strategy that integrates the William Alligator indicator with a Moving Average (MA) to establish robust entry and exit conditions, optimized for capturing trends.
HOW IT WORKS
This strategy combines the traditional William Alligator set up with an additional Moving Average indicator for enhanced trend confirmation, creating a user-friendly backtesting tool for traders who prefer the Alligator method.
The original Alligator strategy can frequently present fluctuations, even in well-established trends, leading to potentially premature exits. To mitigate this, we incorporate a Moving Average as a secondary confirmation measure to ensure the market trend has indeed shifted.
Here’s the operational flow for long orders:
Entry Signal: When the price rises above the Moving Average, it confirms a bullish market state. Enter if Alligator spread in an upward direction. The trade remains active even if the Alligator indicator suggests a trend reversal.
Exit Signal: The position is closed when the price falls below the Moving Average, and the Alligator spreads in the downward direction. This setup helps traders to maintain positions through the entirety of the trend for maximum gain.
APPLICATION
This strategy is tailored for assets with significant, well-defined trends, such as Bitcoin and Ethereum, which are known for their high volatility and substantial price movements.
This strategy offers a low win-rate but high reward configuration, making asset selection critical for long-term profitability. If you choose assets that lack strong price momentum, there's a high chance that this strategy may not be effective.
For traders seeking to maximize gains from large trends without exiting prematurely, this strategy provides an aggressive yet controlled approach to riding out substantial market waves.
DEFAULT SETUP
Commission: 0.01%
Initial Capital: $10,000
Equity per Trade: 80%
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
RSI and ATR Trend Reversal SL/TPQuick History:
I was frustrated with a standard fixed percent TP/SL as they often were not receptive to quick market rallies/reversals. I developed this TP/SL and eventually made it into a full fledge strategy and found it did well enough to publish. This strategy can be used as a standalone or tacked onto another strategy as a TP/SL. It does function as both with a single line. This strategy has been tested with TSLA , AAPL, NVDA, on the 15 minutes timeframe.
HOW IT WORKS:
Inputs:
Length: Simple enough, it determines the length of the RSI and ATR used.
Multiplier: This multiplies the RSI and ATR calculation, more on this later.
Delay to prevent Idealization: TradingView will use the open of the bar the strategy triggers on when calculating the backtest. This can produce unrealistic results depending on the source. If your source is open, set to 0, if anything else, set to 1.
Minimum Difference: This is essentially a traditional SL/TP, it is borderline unnecessary, but if the other parameters are wacky this can be used to ensure the SL/TP. It multiplies the source by the percent, so if it is set to 10, the SL/TP is initialized at src +- 10%.
Source input: Self Explanatory, be sure to update the Delay if you use open.
CALCULATION:
Parameters Initialization:
The strategy uses Heikinashi values for calculations, this is not toggleable in parameters, but can be easily changed by changing hclose to equal src.
FUNCTION INITIALIZATION:
highest_custom and lowest_custom do the same thing as ta.highest and ta.lowest, however the built in ta library does not allow for var int input, so I had to create my own functions to be used here. I actually developed these years ago and have used them in almost every strategy since. Feel especially free to use these in your own scripts.
The rsilev is where the magic happens.
SL/TP min/max are initially calculated to be used later.
Then we begin by establishing variables.
BullGuy is used to determine the length since the last crossup or crossdown, until one happens, it returns na, breaking the function. BearGuy is used in all the calculations, and is the same as BullGuy, unless BullGuy is na, where BearGuy counts up from 1 on each bar from 0.
We create our rsi and have to modify the second one to suit the function. In the case of the upper band, we mirror the lower one. So if the RSI is 80, we want it to be 20 on the upper band.
the upper band and lower band are calculated the exact same way, but mirrored. For the purpose of writing, I'm going to talk about the lower band. Assume everything is mirrored for the upper one. It finds the highest source since the last crossup or crossdown. It then multiplies from 1 / the RSI, this means that a rapid RSI increase will increase the band dramatically, so it is able to capture quick rally/reversals. We add this to the atr to source ratio, as the general volatility is a massive factor to be included. We then multiply this number by our chosen amount, and subtract it from the highest source, creating the band.
We do this same process but mirrored with both bands and compared it to the source. If the source is above the lower band, it suggests an uptrend, so the lower band is outputted, and vice versa for the upper one.
PLOTTING:
We also determine the line color in the same manner as we do the trend direction.
STRATEGY:
We then use the source again, and if it crosses up or down relative to the selected band, we enter a long or short respectively.
This may not be the most superb independent strategy, but it can be very useful as a TP/SL for your chosen entry conditions, especially in volatile markets or tickers.
Thank you for taking the time to read, and please enjoy.
Bull Bear Trend IndicatorIntroduction: Origin of the Swing Point Indicator
In the quest for a reliable indicator that accurately predicts trend directions and identifies valid highs and lows, the genesis of the Swing Point Indicator emerged. Faced with the challenge of finding a tool that provided comprehensive market analysis and actionable insights, the need for a novel solution became evident. Combining insights gleaned from market analysis and innovative algorithmic approaches, the Swing Point Indicator was born.
Enhanced Feature: Highs and Lows Labeling in Trend Direction
In addition to its core functionalities, the Swing Point Indicator incorporates an advanced feature that enhances the visualization of trend direction. This feature provides further clarity by selectively labeling highs and lows based on the prevailing trend, reinforcing the identification of higher highs and lower lows in uptrends and downtrends, respectively. Overlapping labels on highs and lows signify a potential trend change, providing traders with valuable insight into market reversals.
Detailed Description:
1. Uptrend Labeling:
- Higher Highs (Green Label with Price): In an uptrend, where higher highs are observed, the indicator labels these points with vibrant green color and includes the corresponding price value. This visually highlights the significance of higher highs as pivotal points in the upward trajectory of prices.
- Higher Lows (Red Marker without Text or Diamond): To complement the identification of higher highs, higher lows are marked with a distinct red marker or diamond, devoid of any accompanying text. While these points are crucial in delineating the ascending trend, their emphasis lies in their role as support levels, providing a foundation for upward price movements.
2. Downtrend Labeling:
- Lower Lows (Red Label with Price): Conversely, in a downtrend characterized by lower lows, the indicator labels these points with conspicuous red color, accompanied by the corresponding price value. Lower lows signify critical levels of downward price momentum, acting as indicators of potential bearish continuation.
- Lower Highs (Green Marker without Text or Diamond): Lower highs, indicative of downward retracements in a downtrend, are marked by distinctive green markers or diamonds without accompanying text. While these points denote temporary pauses or pullbacks in the bearish trend, their emphasis lies in their role as resistance levels, impeding upward price movements.
Functionality and Utility:
- Customizable Lookback Candle Count: Traders have the option to adjust the lookback candle count, which is set by default at 108 candles in the settings. This flexibility allows traders to tailor the indicator to their specific trading preferences and timeframes.
- Equal Highs or Lows Option: When enabled, the Swing Point Indicator can identify equal highs or equal lows, providing traders with additional insight into market dynamics.
- Formation Confirmation: A new higher high along with its higher low or a new lower low along with its lower high is confirmed after two candles have closed following the swing point candle. This ensures the reliability of the identified trend direction.
Conclusion:
The incorporation of selective labeling for highs and lows based on trend direction, alongside the introduction of customizable settings and formation confirmation criteria, enhances the effectiveness of the Swing Point Indicator. This feature-rich tool empowers traders with a nuanced understanding of market dynamics, highlighting critical price levels and trend reversals. By offering enhanced visualization, customizable options, and confirmation criteria, the Swing Point Indicator equips traders with the confidence and precision needed to navigate the markets successfully, contributing to more informed and profitable trading strategies.
Bayesian Bias OscillatorWhat is a Bayes Estimator?
Bayesian estimation, or Bayesian inference, is a statistical method for estimating unknown parameters of a probability distribution based on observed data and prior knowledge about those parameters. At first , you will need a prior probability distribution, which is a prior belief about the distribution of the parameter that you are interested in estimating. This distribution represents your initial beliefs or knowledge about the parameter value before observing any data. Second , you need a likelihood function, which represents the probability of observing the data given different values of the parameter. This function quantifies how well different parameter values explain the observed data. Then , you will need a posterior probability distribution by combining the prior distribution and the likelihood function to obtain the posterior distribution of the parameter. The posterior distribution represents the updated belief about the parameter value after observing the data.
Bayesian Bias Oscillator
This tool calculates the Bayes bias of returns, which are directional probabilities that provide insight on the "trend" of the market or the directional bias of returns. It comes with two outputs: the default one, which is the Z-Score of the Bayes Bias, and the regular raw probability, which can be switched on in the settings of the indicator.
The Z-Score output value doesn't tell you the probability, but it does tell you how much of a standard deviation the value is from the mean. It uses both probabilities, the probability of a positive return and the probability of a negative return, which is just (1 - probability of a positive return).
The probability output value shows you the raw probability of a positive return vs. the probability of a negative return. The probability is the value of each line plotted (blue is the probability of a positive return, and purple is the probability of a negative return).
ORB Heikin Ashi SPY 5min Correlation StrategyOverview:
The ORB (Opening Range Breakout) strategy combined with Heikin Ashi candles and Relative Volume (RVOL) indicator aims to capitalize on significant price movements that occur shortly after the market opens. This strategy identifies breakouts above or below the opening range, using Heikin Ashi candles for smoother price visualization and RVOL to gauge the strength of the breakout.
Components:
Opening Range Breakout (ORB): The strategy starts by defining the opening range, typically the first few minutes of the trading session. It then identifies breakouts above the high or below the low of this range as potential entry points.
Heikin Ashi Candles: Heikin Ashi candles are used to provide a smoother representation of price movements compared to traditional candlesticks. By averaging open, close, high, and low prices of the previous candle, Heikin Ashi candles reduce noise and highlight trends more effectively.
Relative Volume (RVOL): RVOL compares the current volume of a stock to its average volume over a specified period. It helps traders identify abnormal trading activity, which can signal potential price movements.
Candle for correlation : In this case we are using SPY candles. It can also use different asset
Strategy Execution:
Initialization: The strategy initializes by setting up variables and parameters, including the ORB period, session timings, and Heikin Ashi candle settings.
ORB Calculation: It calculates the opening range by identifying the high and low prices during the specified session time. These values serve as the initial reference points for potential breakouts. For this we are looking for the first 30 min of the US opening session.
After that we are going to use the next 2 hours to check for breakout opportunities.
Heikin Ashi Transformation: Optionally, the strategy transforms traditional candlestick data into Heikin Ashi format for smoother visualization and trend identification.
Breakout Identification: It continuously monitors price movements within the session and checks if the current high breaches the ORB high or if the current low breaches the ORB low. These events trigger potential long or short entry signals, respectively.
RVOL Analysis: Simultaneously, the strategy evaluates the relative volume of the asset to gauge the strength of the breakout. A surge in volume accompanying the breakout confirms the validity of the signal. In this case we are looking for at least a 1 value of the division between currentVolume and pastVolume
Entry and Exit Conditions: When a breakout occurs and is confirmed by RVOL and is within our session time, the strategy enters a long or short position accordingly. It does not have a stop loss or a takie profit level, instead it will always exit at the end of the trading session, 5 minutes before
Position Sizing and Commissions: For the purpose of this backtest, the strategy allocated 10% of the capital for each trade and assumes a trading commission of 0.01$ per share ( twice the IBKR broker values)
Session End: At the end of the trading session, the strategy closes all open positions to avoid overnight exposure.
Conclusion:
The combination of ORB breakout strategy, Heikin Ashi candles, and RVOL provides traders with a robust framework for identifying and capitalizing on early trends in the market. By leveraging these technical indicators together, traders can make more informed decisions and improve the overall performance of their trading strategies. However, like any trading strategy, it's essential to backtest thoroughly and adapt the strategy to different market conditions to ensure its effectiveness over time.
Trend Tide Oscillator [UAlgo]🔶 Description:
The "Trend Tide Oscillator " is a technical analysis tool designed to identify potential trend reversals and overbought/oversold conditions in the market. It calculates an oscillator based on the Commodity Channel Index (CCI) and then applies smoothing techniques to provide a clearer view of market momentum.
🔶 Key Features:
Oscillator Calculation : The indicator calculates an oscillator based on the Commodity Channel Index (CCI), which is a momentum-based oscillator used to identify overbought and oversold conditions.
Smoothing : Smoothing techniques are applied to the oscillator to reduce noise and provide a clearer view of market momentum. This helps traders in identifying trends more effectively.
Support and Resistance Zones : The indicator plots support and resistance zones based on the highest and lowest values of the oscillator over a specified lookback (default 50) period. These zones can help traders identify potential areas of price reversal. The indicator considers volatility when plotting the support and resistance zones. This aims to create more adaptable levels that account for fluctuating market conditions.
Visualization : The indicator visually represents overbought and oversold conditions with shapes (⚠️), aiding traders in quickly identifying potential entry or exit points.
Customization : Users can adjust parameters such as oscillator length, smoothing, and overbought/oversold levels, support and resistance lookbacks according to their trading preferences.
🔶 Disclaimer :
This indicator is provided for informational and educational purposes only and should not be considered as financial advice. Trading in the financial markets involves risk, and users should conduct their own research and analysis before making any investment decisions.
RSI Confirm Trend with Williams (W%R)RSI Confirm Trend with Williams (W%R)
This is the "RSI Confirm Trend with Williams (W%R)" indicator
This is a modification of the "RSI Trends" indicator by zzzcrypto123.
What Is the Relative Strength Index (RSI)?
The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate overvalued or undervalued conditions in the price of that security.
What is Williams %R?
Williams %R, also known as the Williams Percent Range, is a type of momentum indicator that moves between 0 and -100 and measures overbought and oversold levels. The Williams %R may be used to find entry and exit points in the market. The indicator is very similar to the Stochastic oscillator and is used in the same way. It was developed by Larry Williams and it compares a stock’s closing price to the high-low range over a specific period, typically 14 days or periods.
How Does "RSI Confirm Trend with Williams (W%R)" work?
This indicator combines the momentum of both RSI and Williams %R by adding upper and lower thresholds. When the thresholds are broken, this indicator changes color from gray to either green or red.
What Are The Thresholds?
The default RSI thresholds are 55 and 45. These values are configurable.
The default Williams %R thresholds are 80 and 20. These values are configurable and made positive so it can be plotted against the RSI line.
How To Use?
When the RSI exceeded the upper/lower thresholds, the RSI line color will change from gray to lighter green/red color.
When the Williams %R exceeded the upper/lower thresholds, the RSI color will change to darker green/red color signifying a strong momentum in that direction.
When the RSI color is gray, this means the RSI and Williams %R thresholds are not broken which can also signify as no trend or consolidation.
The Williams %R line is not displayed by default but can be enabled using the checkbox provided in the Style tab.
This "RSI Confirm Trend with Williams (W%R)" indicator can be combined with other technical indicators to verify the idea behind this theory.
-----------------
Disclaimer
The information contained in this indicator does not constitute any financial advice or a solicitation to buy or sell any securities of any type.
My scripts/indicators/ideas are for educational purposes only!
Sequencer [LuxAlgo]The Sequencer indicator is a tool that is able to highlight sequences of prices based on their relative position to past prices, which allows a high degree of customization from the user.
Two phases are included in this script, a "Preparation" phase and a "Lead-Up" phase, each with a customizable amount of steps, as well as other characteristics.
Users can also highlight the last step leading to each phase completion with a level, this level can eventually be used as a key price point.
🔶 USAGE
The script highlights two phases, each being based on a sequence of events requiring prices to be higher/lower than prices various bars ago.
The completion of the preparation phase will lead to the evaluation of the lead-up phase, however, it isn't uncommon to see a reversal occurring after the completion of a preparation phase. In the script, bullish preparations are highlighted in green, while bearish preparations are highlighted in red.
Completion of a "Lead-Up" phase is indicative of a potential reversal, with a bullish reversal for the completion of a bullish lead-up (in blue), and a bearish reversal for the completion of a bearish lead-up (in orange).
Using a higher length for the preparation/lead-up phases can allow the detection of longer-term reversals.
Users wishing to display levels based on specific phases completion can do so from the settings in the "Preparation/Lead-Up Completion Levels" settings group.
The "Show Last" settings determine the amount of respective levels to display on the chart.
🔶 PREPARATION PHASE
The "Preparation" phase precedes the "Lead-Up" phase. The completion of this phase requires N successive prices to be lower than the closing price P bars ago for a bullish phase, and for prices to be higher than the closing price P bars ago for a bearish phase, where N is the user set "Preparation Phase Length" and P the user set "Comparison Period".
🔹 Refined Preparations
Sequences of the preparation phase can either be "Standard" or "Refined". Unlike the standard preparation previously described a refined preparation requires the low prices from the user-specified steps in "Refined Preparation Steps" to be above the low price of the last step for a bullish preparation phase, and for the high prices specified in the refined preparation steps to be below the high price of the last step for a bearish preparation phase.
🔶 LEAD-UP PHASE
The "Lead-Up" phase is initiated by the completion of the "Preparation" phase.
Completion of this phase requires the price to be lower than the low price P bars ago N times for a bullish phase, and for prices to be higher than the high price P bars ago N times for a bearish phase, where N is the user set "Lead-Up Phase Length" and P the user set "Comparison Period".
Unlike with the "Preparation" phase these conditions don't need to be successive for them to be valid and can occur at any time.
🔹 Lead-Up Cancellation
Incomplete "Lead-Up" phases can be canceled and removed from the chart once a preparation of the opposite sentiment is completed, avoiding lead-ups to be evaluated after completion of complete preparations.
This can be disabled by toggling off "Apply Cancellation".
🔹 Lead-Up Suspension
Like with refined preparations, we can require specific steps from the lead-up phase to be higher/lower than the price on the last step. This can be particularly important since we do not require lead-up steps to be successive.
For a bullish lead-up, the low of the last step must be lower than the minimum closing prices of the user-specified steps for it to be valid, while for a bearish lead-up, the high of the last step must be higher than the maximum closing prices of the user-specified steps for it to be valid.
This effectively allows for eliminating lead-up phases getting completed on opposite trends.
🔶 SETTINGS
🔹 Preparation Phase
Preparation Phase Length: Length of the "Preparation" phase.
Comparison Period: Offset used to compare current prices to past ones.
Preparation Type: Type of preparation to evaluate, options include "Standard" or "Refined"
Refined Preparations Steps: Steps to evaluate when preparation type is "Refined"
🔹 Lead-Up Phase
Lead-Up Phase Length: Length of the "Lead-Up" phase.
Comparison Period: Offset used to compare current prices to past ones.
Suspension: Applies suspension rule to evaluate lead-up completion.
Suspension Steps: Specifies the steps evaluated to determine if the lead-up referral is respected. Multiple steps are supported and should be comma-separated.
Apply Cancellation: Cancellation will remove any incomplete lead-up upon the completion of a new preparation phase of the opposite sentiment.
🔹 Levels
Bullish Preparations Levels: When enabled display price levels from completed bullish preparations.
Show Last: Number of most recent bullish preparations levels to display.
Bearish Preparations Levels: When enabled display price levels from completed bearish preparations.
Show Last: Number of most recent bearish preparations levels to display.
Trend Lines with Break Signals [UAlgo]🔶 Description:
The "Trend Lines with Breaks " indicator is designed to identify and visualize trend lines on a price chart, allowing traders to observe potential trend reversals or continuations. This script implements a method to draw trend lines based on pivot points (highs and lows) within a specified sensitivity range. It also provides an option to display breaks in these trend lines, aiding traders in recognizing significant market movements.
🔶 Key Features:
Trend Line Sensitivity Adjustment: Users can adjust the sensitivity of the trend lines using the "Trend Line Sensitivity" parameter, allowing customization based on market conditions and preferences.
Visualization of Trend Lines: The indicator visually represents trend lines on the chart, distinguishing between upward and downward trends. Users can customize the appearance of these trend lines, including color, style, and width.
Detection of Trend Line Breaks: Trend line breaks are identified by comparing the current price with the slope of the trend line. If the price breaks below (for bullish trend lines) or above (for bearish trend lines) the slope of the trend line, indicating a potential reversal, a "B" label is displayed on the chart. Trend line breaks are only displayed if the "showBreaks" parameter is enabled.
Before Bearish Trend Line Break :
If the price "Close" value closes above the trend line :
Before Bullish Trend Line Break :
If the price "Close" value closes below the trend line :
🔶 Disclaimer:
Not Financial Advice: This indicator is intended for educational and informational purposes only. It does not constitute financial advice or recommendations to buy, sell, or hold any financial instruments.
Use at Own Risk: Trading involves substantial risk of loss and is not suitable for all investors. Users of this indicator should exercise caution and conduct their own research and analysis before making any trading decisions.
Performance Not Guaranteed: Past performance is not indicative of future results. While the indicator aims to assist traders in analyzing market trends, there is no guarantee of accuracy or success in trading operations.
QuarterCandlesChanges candle color when close is within the top 25% or bottom 25% of candle range (High - Low) on the last candle update.
Due to limitations of barcolor command, I'd suggest that you turn OFF the candle borders (chart settings--> right click on chart --> settings -->symbol and uncheck the border option) to ensure that the bar color is easily identifiable.
Johnny's Moving Average RibbonProps to Madrid for creating the original script: Madrid Moving Average Ribbon.
All I did was upgrade it to pinescript v5 and added a few changes to the script.
Features and Functionality
Moving Average Types: The indicator offers a choice between exponential moving averages (EMAs) and simple moving averages (SMAs), allowing users to select the type that best fits their trading strategy.
Dynamic Color Coding: Each moving average line within the ribbon changes color based on its direction and position relative to a reference moving average, providing visual cues for market sentiment and trend strength.
Lime Green: Indicates an uptrend and potential long positions, shown when a moving average is rising and above the longer-term reference MA.
Maroon: Suggests caution for long positions or potential short reentry points, displayed when a moving average is rising but below the reference MA.
Ruby Red: Represents a downtrend, suitable for short positions, shown when a moving average is falling and below the reference MA.
Green: Signals potential reentry points for downtrends or warnings for uptrend reversals, displayed when a moving average is falling but above the reference MA.
Usage and Application
Trend Identification: Traders can quickly ascertain the market's direction at a glance by observing the predominant color of the ribbon and its orientation.
Trade Entry and Exit Points: The color transitions within the ribbon can signal potential entry or exit points, with changes from green to lime or red to maroon indicating shifts in market momentum.
Customization: Users have the flexibility to toggle between exponential and simple moving averages, allowing for a tailored analytical approach that aligns with their individual trading preferences.
Technical Specifications
The ribbon consists of multiple moving averages calculated over different periods, typically ranging from shorter to longer-term intervals to capture various aspects of market behavior.
The color dynamics are determined by comparing each moving average to a reference point, often a longer-term moving average within the ribbon, to assess the relative trend strength and direction.
Adaptive Schaff Trend Cycle (STC) [AlgoAlpha]Introducing the Adaptive Schaff Trend Cycle by AlgoAlpha: Elevate Your Trading Strategies 🚀
Discover precision and adaptability with the Adaptive Schaff Trend Cycle 🎯, meticulously crafted for traders seeking an edge in the markets. This advanced tool integrates sophisticated algorithms to offer clear insights and real-time analytics 📈.
Key Features:
⚙️Adaptive Signal Processing: Utilizes evolving calculations to adjust to market changes, offering highly responsive signals.
🔍Enhanced MACD Analysis: Innovates on the traditional MACD, providing new insights into market dynamics through an adaptive lens.
🎨Customizable Visual Experience: Features customizable up and down colors for tailored chart analysis.
🔔Real-Time Alerts: Stay informed with instant alerts on indicator changes.
Quick Guide to Using the Adaptive STC Indicator
1. 🔧 Adding the Indicator: Search for "Adaptive Schaff Trend Cycle (STC) " within TradingView's Indicators & Strategies and apply it to your chart. Customize the settings according to your trading style for optimum results.
2.👀 Market Analysis: Monitor the STC and Histogram values closely. The indicator's color gradients provide a visual representation of momentum shifts, helping you to identify trends more clearly.
3. 🚨 Set Alerts: Enable alerts for specific conditions like significant moves up or down, or when the histogram crosses zero. This feature ensures you never miss a potential trading opportunity.
How It Works:
The Adaptive Schaff Trend Cycle by AlgoAlpha introduces a dynamic approach to market analysis, refining traditional indicators through adaptive logic to align with fluctuating market conditions. Here's a concise overview of its operation:
🔄 Adaptive MACD Adjustment: The foundation of the indicator is an enhanced MACD calculation, which dynamically adjusts its parameters based on real-time market trends and momentum. This algorithmic adjustment aims to ensure the MACD's responsiveness to market changes, adapting its sensitivity to offer timely insights .
🌟 Integration of Schaff Trend Cycle (STC): After adjusting the MACD, the indicator calculates STC values to provide a smoothed representation of market trends. By normalizing and smoothing the MACD values on a scale from 0 to 100, the STC method helps in identifying market phases with a clear visualization. The smoothing process is designed to mitigate noise and focus on significant market movements .
📊 Visualization and Alerts: To aid in the interpretation of these insights, the Adaptive Schaff Trend Cycle employs color gradients and customizable visual settings to indicate momentum shifts. These visual cues, combined with alert functionalities, are structured to assist traders in monitoring market developments, enabling them to make informed decisions based on the presented data .
🛠️The Adaptive Schaff Trend Cycle thus merges adaptive MACD adjustments with STC methodology, supported by visual and alert features, to create a tool aimed at enhancing market analysis. By focusing on adaptability and current market conditions, it provides a nuanced view of market trends, intended to support traders in their decision-making processes without promising predictive accuracy or reliability .
ZigZag Library [TradingFinder]🔵 Introduction
The "Zig Zag" indicator is an analytical tool that emerges from pricing changes. Essentially, it connects consecutive high and low points in an oscillatory manner. This method helps decipher price changes and can also be useful in identifying traditional patterns.
By sifting through partial price changes, "Zig Zag" can effectively pinpoint price fluctuations within defined time intervals.
🔵 Key Features
1. Drawing the Zig Zag based on Pivot points :
The algorithm is based on pivots that operate consecutively and alternately (switch between high and low swing). In this way, zigzag lines are connected from a swing high to a swing low and from a swing low to a swing high.
Also, with a very low probability, it is possible to have both low pivots and high pivots in one candle. In these cases, the algorithm tries to make the best decision to make the most suitable choice.
You can control what period these decisions are based on through the "PiPe" parameter.
2.Naming and labeling each pivot based on its position as "Higher High" (HH), "Lower Low" (LL), "Higher Low" (HL), and "Lower High" (LH).
Additionally, classic patterns such as HH, LH, LL, and HL can be recognized. All traders analyzing financial markets using classic patterns and Elliot Waves can benefit from the "zigzag" indicator to facilitate their analysis.
" HH ": When the price is higher than the previous peak (Higher High).
" HL ": When the price is higher than the previous low (Higher Low).
" LH ": When the price is lower than the previous peak (Lower High).
" LL ": When the price is lower than the previous low (Lower Low).
🔵 How to Use
First, you can add the library to your code as shown in the example below.
import TFlab/ZigZagLibrary_TradingFinder/1 as ZZ
Function "ZigZag" Parameters :
🟣 Logical Parameters
1. HIGH : You should place the "high" value here. High is a float variable.
2. LOW : You should place the "low" value here. Low is a float variable.
3. BAR_INDEX : You should place the "bar_index" value here. Bar_index is an integer variable.
4. PiPe : The desired pivot period for plotting Zig Zag is placed in this parameter. For example, if you intend to draw a Zig Zag with a Swing Period of 5, you should input 5.
PiPe is an integer variable.
Important :
Apart from the "PiPe" indicator, which is part of the customization capabilities of this indicator, you can create a multi-time frame mode for the indicator using 3 parameters "High", "Low" and "BAR_INDEX". In this way, instead of the data of the current time frame, use the data of other time frames.
Note that it is better to use the current time frame data, because using the multi-time frame mode is associated with challenges that may cause bugs in your code.
🟣 Setting Parameters
5. SHOW_LINE : It's a boolean variable. When true, the Zig Zag line is displayed, and when false, the Zig Zag line display is disabled.
6. STYLE_LINE : In this variable, you can determine the style of the Zig Zag line. You can input one of the 3 options: line.style_solid, line.style_dotted, line.style_dashed. STYLE_LINE is a constant string variable.
7. COLOR_LINE : This variable takes the input of the line color.
8. WIDTH_LINE : The input for this variable is a number from 1 to 3, which is used to adjust the thickness of the line that draws the Zig Zag. WIDTH_LINE is an integer variable.
9. SHOW_LABEL : It's a boolean variable. When true, labels are displayed, and when false, label display is disabled.
10. COLOR_LABEL : The color of the labels is set in this variable.
11. SIZE_LABEL : The size of the labels is set in this variable. You should input one of the following options: size.auto, size.tiny, size.small, size.normal, size.large, size.huge.
12. Show_Support : It's a boolean variable that, when true, plots the last support line, and when false, disables its plotting.
13. Show_Resistance : It's a boolean variable that, when true, plots the last resistance line, and when false, disables its plotting.
Suggestion :
You can use the following code snippet to import Zig Zag into your code for time efficiency.
//import Library
import TFlab/ZigZagLibrary_TradingFinder/1 as ZZ
// Input and Setting
// Zig Zag Line
ShZ = input.bool(true , 'Show Zig Zag Line', group = 'Zig Zag') //Show Zig Zag
PPZ = input.int(5 ,'Pivot Period Zig Zag Line' , group = 'Zig Zag') //Pivot Period Zig Zag
ZLS = input.string(line.style_dashed , 'Zig Zag Line Style' , options = , group = 'Zig Zag' )
//Zig Zag Line Style
ZLC = input.color(color.rgb(0, 0, 0) , 'Zig Zag Line Color' , group = 'Zig Zag') //Zig Zag Line Color
ZLW = input.int(1 , 'Zig Zag Line Width' , group = 'Zig Zag')//Zig Zag Line Width
// Label
ShL = input.bool(true , 'Label', group = 'Label') //Show Label
LC = input.color(color.rgb(0, 0, 0) , 'Label Color' , group = 'Label')//Label Color
LS = input.string(size.tiny , 'Label size' , options = , group = 'Label' )//Label size
Show_Support= input.bool(false, 'Show Last Support',
tooltip = 'Last Support' , group = 'Support and Resistance')
Show_Resistance = input.bool(false, 'Show Last Resistance',
tooltip = 'Last Resistance' , group = 'Support and Resistance')
//Call Function
ZZ.ZigZag(high ,low ,bar_index ,PPZ , ShZ ,ZLS , ZLC, ZLW ,ShL , LC , LS , Show_Support , Show_Resistance )
WaveTrend Ribbon [AlgoAlpha]🌟🚀 Introducing the WaveTrend Ribbon by AlgoAlpha - Your Next-Level Trading Companion! 🚀🌟
Dive into the world of advanced trading with the WaveTrend Ribbon by AlgoAlpha, a cutting-edge indicator designed to elevate your trading strategy on TradingView. 📈💡 This powerful tool combines the efficiency of the WaveTrend oscillator with innovative Z-score analysis to offer clear, actionable trading signals. 🌊🎯
Key Features:
🔧 Customizable Parameters: Tailor the indicator to your trading needs with adjustable settings including Channel Length, Average Length, Overbought/Oversold Levels, and more.
📊 WaveTrend Oscillator: Utilizes a smoothed version of the average price to identify potential market reversals.
📉 Z-Score Analysis: Enhances signal reliability by measuring the standard deviation of the current price from the mean.
🎨 Dynamic Color Coding: Visual cues shift between up and down colors to indicate market trends, making it easy to read at a glance.
⚠️ Divergence Detection: Automatic identification of bullish and bearish divergences for early signal warnings.
🔔 Custom Alerts: Stay ahead with real-time alerts for key trading events like bullish/bearish divergences and trend reversals.
How to Use WaveTrend Ribbon :
Maximize your trading potential with the WaveTrend Ribbon by following these simple steps:
🔍 Add to Chart: Locate "WaveTrend Ribbon " in TradingView's Indicators & Strategies and apply it to your chart. Dive into the settings to customize the parameters like Channel Length, Average Length, and the Overbought/Oversold levels to match your trading strategy.
- Channel Length affects the sensitivity of the WaveTrend oscillator to price movements. A shorter Channel Length increases responsiveness, useful in volatile markets but may lead to false signals. It's ideal for traders looking for quick reactions to price changes.
- Average Length is used to smooth the oscillator further, influencing how quickly the indicator responds to trend changes. A shorter Average Length allows for a quicker response to the oscillator's movements, suitable for short-term trading strategies.
📊 Analyze the Market: Pay close attention to the color transitions and position of the Z-score in relation to its moving average for insights into market direction. Look out for the overbought and oversold conditions for potential reversal points.
🔔 Set Up Alerts: Utilize the built-in alert system to get notified of key events like trend reversals, bullish and bearish divergences, and more, so you can make timely decisions without having to constantly monitor the charts.
Basic Logic Explained:
The WaveTrend Ribbon is an advanced trading indicator that leverages the WaveTrend oscillator, enhanced by Z-score normalization and moving averages for precise market trend analysis. It calculates the average price deviation over a set period (Channel Length), smoothing it with an Average Length to identify trends. Z-score analysis further refines signals by comparing oscillator deviations against its historical performance, highlighting overbought or oversold conditions. The indicator generates signals for potential reversals and market entries/exits, visualized through dynamic color coding and customizable alerts for traders to act upon efficiently. This multi-layered approach provides a deeper insight into market dynamics, offering a blend of trend following and momentum strategies.
By highlighting overbought and oversold conditions with dynamic color changes and providing reversal signals, this indicator is a must-have tool for traders aiming to capitalize on market trends. 📈🚀
Elevate your trading experience with the WaveTrend Ribbon, your go-to indicator for navigating the markets with confidence and precision. Happy trading! 🌟🚀
VSA Volume Spread AnalysisVolume Spread Analysis with Trend Direction is an indicator designed to Identify trend based volume spread.
Volume
Spread
Trend
This is a very simple yet powerful to identify Trend and corresponding volume Breakout. Unlike other Volume Indicators this indicator detects Breakout along with trend direction. One can detect the Early breakout in volume using this indicator. The Buy or Sell Signal is based on zero crossing of the Histogram.
Trend direction is confirmed using the MA of the Histogram which is similar to the Volume MA on volume indicator. One can enter a trade using the indicator when Trend direction and histogram are in same direction. Entry is done when ever histogram crosses the Trend MA line.
Fake entries can be eliminated by changing the indicator to higher Timeframe.
Spread is determined using the difference in open and close of the candle
Volume change is determined using the ratio of change of volume to previous volume
EMA 10 is used to determine the Spread and multiplied by volume change so the
PRICE(ema10), Volume, Spread(close-open) are merged to one indicator.
Direction changes when ever difference of VSA is positive or negative.
Highest-Lowest Trend𝙃𝙄𝙂𝙃𝙀𝙎𝙏-𝙇𝙊𝙒𝙀𝙎𝙏 𝙏𝙍𝙀𝙉𝘿 𝙄𝙉𝘿𝙄𝘾𝘼𝙏𝙊𝙍
Overview:
The "Highest-Lowest Trend" indicator helps traders identify trends based on the highest and lowest values within a specified period. It provides visual cues to understand potential trend changes, making it a valuable tool for technical analysis.
Settings:
Length and Offset: Adjust the length and offset parameters to customize the sensitivity of the indicator.
Source: Determines whether to use the high and low prices or the closing price and others for calculations.
Visual Settings:
Bar Color: Enables or disables the coloring of bars based on the trend direction.
Up Color: Specifies the color for upward trends.
Down Color: Specifies the color for downward trends.
Indicator Calculation:
The indicator calculates the highest and lowest values within the defined length and offset.
The current trend is determined based on whether the closing price is above or below these values.
When the source crossed above highest indicator changes trend to upside and start to use lowest value and vice versa.
/// 𝙄𝙉𝘿𝙄𝘾𝘼𝙏𝙊𝙍 𝘾𝘼𝙇𝘾𝙐𝙇𝘼𝙏𝙄𝙊𝙉 ///
var series float hlt = 0.0
series float upper = ta.highest(Use_High_and_Low ? high : src, length)
series float lower = ta.lowest( Use_High_and_Low ? high : src, length)
hlt := src > upper ?
lower : src < lower ?
upper : nz(hlt)
Usage:
Trend Identification: Watch for price to be above Trend Indicator crosses for up trend and below for down trend.
Length and Offset: Adjust the length and offset parameters to customize the sensitivity of the indicator.
Color, color bars: Change color of trends and bars for your taste
Note:
Trading involves inherent risks, and it is essential to exercise caution and employ multiple tools and indicators for comprehensive analysis. While the "Highest-Lowest Trend" indicator provides valuable insights into potential trend changes, relying solely on one tool for trading decisions is not recommended. Market conditions can be dynamic, and using a combination of indicators can enhance your overall analysis, providing a more robust foundation for decision-making. Always consider the broader market context, risk management strategies, and other relevant factors before executing trades.
Trend Channels (MTF) | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Trend Channels (MTF) indicator! Latest trends play an important role for traders and sometimes it can be hard to spot trends in other timeframes. This indicator can plot latest trend channels across different timeframes, so you can spot trends and their channels easier. More info about the process in the "How Does It Work" section.
Features of the new Trend Channels (MTF) indicator :
Plot Trend Channels Across Up To 3 Different Timeframes
Broad Customizability Of Trend Detection
Variety Of Trend Invalidation Options
High Visual Customizability
🚩UNIQUENESS
While the detection of trend channels is a common concept among traders, trend channels across different timeframes can be as crucial as the ones in the current timeframe. This indicator can find them from up to 3 different timeframes. While the general settings will perform well enough most of the time, the indicator also provides fine-tuning options for trend detection and trend invalidation for more experienced traders.
📌 HOW DOES IT WORK ?
Trend channels occur when the price of an asset starts making a strong movement in a bullish or a bearish direction. This indicator detects trend channels using the Simple Moving Average (SMA). When the slope of the SMA line exceeds the user-defined size, a trend channel will occur.
To understand how individual settings work, you can check the "⚙️SETTINGS" section.
⚙️SETTINGS
1. General Configuration
SMA Length -> Determines the length used in the SMA function. Higher values mean that an average of a longer timespan will be taken into account when spotting trends.
Slope Length -> Used while finding the slope of the trend channel. Check this example for slope length :
ATR Size -> This setting is taken into calculation while checking if a trend channel is worth plotting. The higher this setting is, the higher the slope of the trend channel must be to get rendered. You can take a look at the chart provided above for a visual explanation.
Channel Expander -> When a trend channel occurs, the top and the bottom of the channel are initally determined by the latest highest highs / lowest lows. This setting expands the channel vertically by X times Average True Range (ATR). Check this example :
Trend Invalidation -> The trend channel gets invalidated when the bar closes / wicks above the top of the channel, or below the bottom of the channel. With this setting, you can switch the behaviour between bar close / bar wick.
Avoid False Invalidation -> This setting makes it harder for trend channels to get invalidated to prevent false invalidations.
Retries : The trend channel will have 5 chances for invalidation. First 4 invalidations will not invalidate the channel. The trend channel will only invalidate once the 5th invalidation occur.
Volume : The bar that invalidates the trend channel must have a volume higher than 1.5x the average bar volume of the current chart. Otherwise the trend channel will not be invalidated.
None : The trend channel will invalidate at the first invalidation.
