HOW-TO use whale jump out of ocean indicator

12 Nis 2021

Whale and Banker Fund Tracking Indicator



I have been working on developing indicators on how to track the banker funds or whales. In my open-source indicators published, you can search for the keywords "Banker" or "Whale" to find and use these indicators. After three years of development and hard work, I have perfectly combined the banker fund/whale mathematical model and the unique Fibonacci space-time indicators. This is named as "L5 Whales Jump Out of Ocean X" indicator that I will introduce today. First of all, I want to state the three premises for using this indicator.

1. This indicator is not an open-source indicator, it is an Invite-Only indicator based on Tradingview scheme. You need to use TradingView Coin or cryptocurrency to redeem usage permissions for a period. I strongly recommend that more people use the free and open-source indicators I published. This L5 indicator is only for or suitable for TradingView community members who have a strong desire to use it and don't mind the closed-source form of the script.

2. "L5 Whales Jump Out of Ocean X" indicator is only suitable for discretionary trading, and does not support automatic trading system/bots with alerts. Users who are willing should know the scope of use of this indicator in advance, and determine whether it is suitable for your own situation before deciding whether to redeem the permission to use it.

3. You cannot delegate the full responsibility of your trading decisions to this indicator, I hope you will do so knowing that much more trading knowledge, skills and live trading experience than access to this script is needed to become a successful trader.

This indicator introduces three independent judgment standards. They are whales & waves, Fibonacci time windows and dynamic Fibonacci retracement arrows. Whales and waves are banker fund/ whale behavior modeling based on my unique moving average technology. Fibonacci time and space indicators are a unique improvement I made to traditional indicators of the same kind to make them more powerful.

Application Scenarios

This indicator is basically applicable to all markets, but requires traders to choose the most suitable trading pair to operate. This indicator is used for multiple periods. Because the smaller the period, the more unstable the data, the larger the period, the more stable the Fibonacci space-time indicator. I use this indicator for the operation of cryptocurrency, commodities, forex, local stocks and ETFs. When this indicator is combined with the candle patterns of Japanese candlesticks, it will often produce higher quality signals, so I suggest that people who use this indicator should have the basic knowledge of Japanese candlesticks in order to better use this indicator.


What are "Long Whales" and "Short Whales "?



One of the biggest differences between cryptocurrency and traditional financial markets is that cryptocurrency is based on blockchain technology. Individual investors can discover the direction of the flow of large funds through on-chain transfers. These large funds are often referred to as Whale. Whale can have a significant impact on the price movements of cryptocurrencies, especially Bitcoin . Therefore, how to monitor Whale trends is of great significance both in terms of fundamentals and technical aspects.

We often see whales suddenly jump out of the ocean and then set off huge waves. What we need to do is to surf the wave according to the trend after the whale jumps out of the sea. This is really an exciting sport!

Therefore, in this indicator. "Long Whales" denotes banker fund is pumping the price, which is presented as fuchsia and red stick bars (Motive waves with fuchsia color; corrective waves with red color). On the ohter hand, "Short Whales " means banker fund is dumping the price, which is described by yellow and red green stick bars (Motive waves with yellow color; corrective waves with green color).

Concepts of whales and waves are inroduced to judge the power balance between long and short, respectively. There are two types of whales: long whales (fuchsia-red stick bars) and short whales (yellow-green stick bars). In response to this, there are two types of waves: long waves (fuchsia-red areas) and short waves (yellow-green areas). The color is mainly used to distinguish whether it is a motive wave or a corrective wave (if you have been exposed to Elliott wave theory, this concept will be much clearer). Long whales and waves use fuchsia color represents motive waves (bullish), red represent corrective waves (bearish); short whales and waves use yellow color represent motive waves (bearish), and green color represent corrective waves (bullish). Because the behavior of this model is indeed very close to the phenomenon of whales jumping out of the ocean to stir up waves in nature, it is named. When using, you need to pay attention to the amplitude of long and short waves and the comparison between the two. For example: If the amplitude of the short wave is gradually higher than the long wave until a certain level, there will be a short whale ermerging, that is to say, the short-whale goes out of ocean and stimulates a short wave amplitudes. This is a good time to go short until the yellow stick bar turns into a green stick bar (the motive short wave becomes a corrective short wave). Once the green stick bar appears, it is the time to close the short position. The same goes for long.


What are "Long Waves" and "Short Waves"?




Waves are generated by whales and they will forcast when whales emerge. In this indicator, fuchsia and red areas (Motive waves with fuchsia color; corrective waves with red color) stand for long Waves; while yellow and red green areas (Motive waves with yellow color; corrective waves with green color) stand for Short Waves.

Long whales and short whales are used to track the trading of banker funds. How to judge when the banker funds do not move? The answer is to use wave conditions for observation. When there are no whales, please observe whether the wave is dominated by long waves or short waves. Long motive waves are represented by fuchsia color, long corrective waves are represented by red; short motive waves are represented by yellow, and corrective waves are represented by green.
The wave characteristics of this indicator are used to predict whether whales will appear in addition to the normal long-short power comparison. Before the whale goes out of ocean, in nature, the waves on the sea will fluctuate greatly. This phenomenon also appears in this indicator. As long as banker funds start to take action, they will definitely be reflected in the waves. This phenomenon can predict the trend of banker funds. For example: when the long wave gradually surpasses the short wave, and continues to rise and rise, so as to exceed the normal level in the past, this may indicate that the whale is going to jump out to pump or dump.


Fibonacci Time Window Background Color Indicator



The Fibonacci time window is an indicator that suggests periodic price positions. Its principle is to judge the number of times the current candle appears on the time axis when the retreat time period is a Fibonacci number. If the current candle is in the historical data, multiple times coincide with the price high or low of the cycle that the Fibonacci number will retreat, and the number of times exceeds a certain threshold, the indicator will determine that the current candlestick is in Fibonacci time window. On the Fib time period, it is usually the time point near the long-short reversal. The principle of this indicator is completely dependent on time and historical price highs and lows. It is a technical indicator independent of price trends and volume. Combining it with whale-wave can effectively improve the signal quality. Once resonance occurs, signal reliability will also be improved. The Fibonacci time window is represented by the indicator background color. When the Fibonacci time window indicates that the current candlestick is a potential lowest point in time, the background color is green; when the Fibonacci time window indicates that the current candlestick is a potential highest point in time, the background color is red.

Fibonacci Space Retracement Arrow Indicator



At present, there are many technical indicators related to Fibonacci retracement in the community. Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While not officially a Fibonacci ratio, 50% is also used.

However, in "L5 Whales Jump Out of Ocean X", a smarter way than the traditional Fibonacci retracement is adopted. First of all, my Fibonacci retracement is dynamically configured and adaptive. The Fibonacci retracement position is dynamically represented by up and down arrows with different color intensity (if you are used to using traditional Fibonacci retracement indicators, you may need to adapt to this new model). In other words, you do not need to configure a fixed-length back-off period to find high and low points. It counts the results of Fibonacci retracements of multiple short, medium and long periods (periods are still not fixed values here, but adaptive under an upper limit). If there are many times in this statistical result that the current candlestick falls on the key Fibonacci retracement positions of multiple short-term, mid-term and long-term historical data, a stronger chromatic arrow (brightest) will be displayed. Conversely, if only a few statistics are hit, the arrow with the weaker chromaticity (darkest). These arrows are dynamically deployed on the whale and wave oscillators, and "SUP" indicates the Fib support level, "RES" indicates the Fib resistance level, "*SUP" indicates a preparatory signal, and the support level will appear later, and "*RES" indicates a preparatory signal, the resistance level will appear later.

SPECIAL NOTE: Because Tradingview limits the number of labels (Label) used on the server side in order to save resources, not all historical data will have a dynamic Fibonacci retracement arrow sign. Instead, the Fibonacci arrow display is only performed on the finite period of the latest data retreat.


Preparatory Signal X



Another major feature of this indicator is to provide preliminary signals for support and resistance levels. Please note: Preliminary signals are not signals of support or resistance levels. They are only early reminders that one candle or a few candles will touch the support and resistance of historical data. So don't be nervous, it is best to see the state after the price touches or breaks through the support and resistance levels before making a decision. The preparatory signal is indicated by a cross "×" in the indicator. If the preliminary signal is red "×" and displays "*RES", the market meaning of this preliminary signal is that the subsequent price may touch the historical resistance level; if the preliminary signal is green "×" and displays "*SUP", this market implication of the preliminary signal is that the price may touch the historical support level later. Finally, the preliminary signals will not fluctuate with the value of the indicator, they will only appear on the zero axis.


Multi-Timeframe Observation



This indicator is suitable for multiple time frames. Generally speaking, multiple time frames of observation are helpful to determine whether the signal is reliable. You can use Tradingview's chart to focus on two time frame levels at the same time, typically the multiplier is 4 to 6 times. For example: if your operation level is 1H, you can also pay attention to the trend changes on the 4H. This helps to make the right decision without being affected by the subtle fluctuations of the current time frame.