This script detects an event created by Oliver Velez, basically it is a wide-range candle, its range is noticeably larger than the previous candles, this event indicates a possible continuation of the movement, or the beginning of an extended movement. The candle has to be of good body, as a rule it can be taken that the body must be more than 70%. The stop goes below the minimum of the candle and the signal is given when the next candle followed by the elephant candle exceeds its body, this condition is not programmed so that the alert indicates that an elephant candle was generated and the trader has some time to visualize the graph and wait for the signal. Example below:
NOTE: IT IS VERY IMPORTANT THAT THE TRADER ANALYZE THE CONTEXT OF THE MARKET WHERE THE ELEPHANT BAR IS GENERATED AND DETERMINE ACCORDING TO ITS EXPERIENCE IF THE EVENT HAS A GOOD PROBABILITY OF PROJECTION, YOU MUST NOT TAKE AN ENTRY ONLY BY THIS EVENT, IF YOU DO YOU WILL LOSE ALL YOUR MONEY .
One of the problems of the elephant bar is that it generates a fairly wide risk unit with respect to other narrow range events, so the risk / benefit ratio is not very large, but it is an event that deserves attention when it occurs in a good location since it generally generates continuation. If you want to have a lower risk unit and improve the risk / benefit ratio, you can play the “Gift Zone”, when detecting an elephant bar you can wait for a step back inside the elephant bar area and take a position, this will give you a less distance to the stop, but this can lead to the event escaping if there is no recoil.
- The size of the candle is determined by comparing a range of previous candles (you can set the amount at your discretion) - Search factor: by default 1.3, this means that all bars that have a range greater than the average range of previous candles + 30%, are considered elephant candles (can be configured at your discretion) - Possibility to configure the percentage of the body that the elephant candle must have. - Possibility of filtering up to 2 means with direction detection and color change (fully configurable) - Possibility of filtering by mobile averages - Alerts - Additional features
@SaiRaj043, were you able to get those indicators megered. that sounds like a great idea
TransitMan
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Boom! Thanks for coding this great stuff !!
davewebb78
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hello i love this , how can i find on tradingview ?
GemmaKay
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You are a scripting Rockstar ! Thank you Sir!
LorenzMeis
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here you can find an English version of this indicator. Please let me know if some keys are not translated properly as I was using DeepL for this part.. 1drv.ms/t/s!AuZ9-miwuGPThksMG07913CXO1MS?e=7Zfb38
LorenzMeis
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You can find the EN script now under "Elephant-Bar-by-Oliver-Velez-EN"
Gauravk
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Thanks for the good work, can you please add an alert option for Moving Average turning green or red please?
Gracias por el buen trabajo, ¿puede agregar una opción de alerta para que la media móvil se vuelva verde o roja, por favor?
It is possible to do a scanner in finviz?