High Low Lines (500 candle 5min)This TradingView script is designed to visualize the highest high and the lowest low from the previous 576 candles on the chart. It draws horizontal lines representing these values and updates them at a specific time each day.
Bantlar ve Kanallar
Bollinger Bands Enhanced StrategyOverview
The common practice of using Bollinger bands is to use it for building mean reversion or squeeze momentum strategies. In the current script Bollinger Bands Enhanced Strategy we are trying to combine the strengths of both strategies types. It utilizes Bollinger Bands indicator to buy the local dip and activates trailing profit system after reaching the user given number of Average True Ranges (ATR). Also it uses 200 period EMA to filter trades only in the direction of a trend. Strategy can execute only long trades.
Unique Features
Trailing Profit System: Strategy uses user given number of ATR to activate trailing take profit. If price has already reached the trailing profit activation level, scrip will close long trade if price closes below Bollinger Bands middle line.
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Major Trend Filter: Strategy utilizes 100 period EMA to take trades only in the direction of a trend.
Flexible Risk Management: Users can choose number of ATR as a stop loss (by default = 1.75) for trades. This is flexible approach because ATR is recalculated on every candle, therefore stop-loss readjusted to the current volatility.
Methodology
First of all, script checks if currently price is above the 200-period exponential moving average EMA. EMA is used to establish the current trend. Script will take long trades on if this filtering system showing us the uptrend. Then the strategy executes the long trade if candle’s low below the lower Bollinger band. To calculate the middle Bollinger line, we use the standard 20-period simple moving average (SMA), lower band is calculated by the substruction from middle line the standard deviation multiplied by user given value (by default = 2).
When long trade executed, script places stop-loss at the price level below the entry price by user defined number of ATR (by default = 1.75). This stop-loss level recalculates at every candle while trade is open according to the current candle ATR value. Also strategy set the trailing profit activation level at the price above the position average price by user given number of ATR (by default = 2.25). It is also recalculated every candle according to ATR value. When price hit this level script plotted the triangle with the label “Strong Uptrend” and start trail the price at the middle Bollinger line. It also started to be plotted as a green line.
When price close below this trailing level script closes the long trade and search for the next trade opportunity.
Risk Management
The strategy employs a combined and flexible approach to risk management:
It allows positions to ride the trend as long as the price continues to move favorably, aiming to capture significant price movements. It features a user-defined ATR stop loss parameter to mitigate risks based on individual risk tolerance. By default, this stop-loss is set to a 1.75*ATR drop from the entry point, but it can be adjusted according to the trader's preferences.
There is no fixed take profit, but strategy allows user to define user the ATR trailing profit activation parameter. By default, this stop-loss is set to a 2.25*ATR growth from the entry point, but it can be adjusted according to the trader's preferences.
Justification of Methodology
This strategy leverages Bollinger bangs indicator to open long trades in the local dips. If price reached the lower band there is a high probability of bounce. Here is an issue: during the strong downtrend price can constantly goes down without any significant correction. That’s why we decided to use 200-period EMA as a trend filter to increase the probability of opening long trades during major uptrend only.
Usually, Bollinger Bands indicator is using for mean reversion or breakout strategies. Both of them have the disadvantages. The mean reversion buys the dip, but closes on the return to some mean value. Therefore, it usually misses the major trend moves. The breakout strategies usually have the issue with too high buy price because to have the breakout confirmation price shall break some price level. Therefore, in such strategies traders need to set the large stop-loss, which decreases potential reward to risk ratio.
In this strategy we are trying to combine the best features of both types of strategies. Script utilizes ate ATR to setup the stop-loss and trailing profit activation levels. ATR takes into account the current volatility. Therefore, when we setup stop-loss with the user-given number of ATR we increase the probability to decrease the number of false stop outs. The trailing profit concept is trying to add the beat feature from breakout strategies and increase probability to stay in trade while uptrend is developing. When price hit the trailing profit activation level, script started to trail the price with middle line if Bollinger bands indicator. Only when candle closes below the middle line script closes the long trade.
Backtest Results
Operating window: Date range of backtests is 2020.10.01 - 2024.07.01. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Initial capital: 10000 USDT
Percent of capital used in every trade: 30%
Maximum Single Position Loss: -9.78%
Maximum Single Profit: +25.62%
Net Profit: +6778.11 USDT (+67.78%)
Total Trades: 111 (48.65% win rate)
Profit Factor: 2.065
Maximum Accumulated Loss: 853.56 USDT (-6.60%)
Average Profit per Trade: 61.06 USDT (+1.62%)
Average Trade Duration: 76 hours
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters.
How to Use
Add the script to favorites for easy access.
Apply to the desired timeframe and chart (optimal performance observed on 4h BTC/USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
Financial Frontline:Integrated Market Analysis Toolkit[drshah93]Title: Financial Frontline: Bollinger BandWidth with Moving Average + Fractal & Alligator + Ichimoku Cloud + Anchored VWAP
This script is developed to integrate multiple robust technical analysis tools into a single, comprehensive indicator. Designed for traders seeking an all-in-one solution, this script combines Fractal and Alligator, Ichimoku Cloud, Anchored VWAP, and Bollinger BandWidth with Moving Average, providing a holistic view of the market.
Unlocking Market Dynamics: How It Works Together
This multi-tool indicator is more than just a mashup; it is a strategically crafted integration that maximizes the strengths of each component to deliver a versatile and insightful trading tool.
1. Fractal and Alligator:
o Concept:
The Fractal & Alligator combination serves as a powerful mechanism for identifying trend reversals and continuations.
Fractals pinpoint potential turning points in the market, while the Alligator lines, consisting of smoothed moving averages, provide a clear indication of trend direction and strength.
By plotting visual markers for completed top and bottom fractals, this component helps traders to easily identify critical potential turning points of market reversal.
The Bill Williams' Alligator’s three moving averages (jaw, teeth, and lips) further enhance this analysis by indicating the prevailing trend and its momentum, making it easier to discern when to enter or exit trades.
o Details: Customizable jaw, teeth, and lips represent the market's direction. Top and bottom fractals help identify potential support and resistance levels.
o Usage: Enable the Alligator to visualize the market's trend direction and use fractals to spot potential entry and exit points.
2. Ichimoku Cloud:
o Concept:
The Ichimoku Cloud component adds another layer of market insight by providing a comprehensive view of support and resistance levels, trend direction, and momentum.
The cloud (Kumo) itself indicates key support and resistance zones, while the Tenkan-sen and Kijun-sen lines offer shorter-term trend and momentum insights.
The Chikou Span, or lagging line, provides a perspective on current price action relative to past prices.
This multi-faceted approach helps traders to identify high-probability trading opportunities and to understand the broader market context, allowing for more informed trading decisions.
o Details: Includes conversion line (Tenkan-sen), base line (Kijun-sen), leading spans (Senkou Span A & B), and lagging span (Chikou Span). Customizable lengths and colors for each element.
o Usage: Use the cloud's color and position relative to price to determine bullish or bearish trends and identify potential trading signals.
3. Anchored VWAP:
o Concept:
Anchored VWAPs (Volume Weighted Average Price) are dynamically anchored to significant price points such as swing highs and lows.
This component helps traders to understand the average price paid over a specific period and to identify critical price levels that may act as support or resistance.
By anchoring the VWAP to significant points, this indicator provides a more precise view of where key market participants are positioned, aiding in the identification of potential reversal points and confirming trend direction.
Anchored VWAP (Volume Weighted Average Price) provides the average price of an asset, weighted by volume, from a specific anchor point.
o Details: Multiple Anchored VWAP lines from significant highs and lows. Customizable lengths and colors for each VWAP.
o Usage: Analyze the price's relationship to VWAP lines to assess market strength and potential reversal points.
4. Bollinger BandWidth with Moving Average:
o Concept:
This component combines the volatility insights of Bollinger BandWidth with the trend-following properties of moving averages.
The Bollinger BandWidth measures the distance between the upper and lower Bollinger Bands, offering a visual representation of market volatility.
Bollinger Bands measure market volatility, while BandWidth indicates the degree of volatility.
When combined with a moving average, it helps to identify periods of market contraction and expansion.
Crossovers between the Bollinger BandWidth and the moving average provide timely alerts for potential entry and exit points, enabling traders to react quickly to changing market conditions.
o Details: Bollinger Bands with customizable lengths, source, and standard deviation. BandWidth calculation and moving average with options for SMA, EMA, SMMA, WMA.
o Usage: Identify periods of high and low volatility using BandWidth and adjust trading strategies accordingly. Use the moving average to smooth out volatility signals.
Customization Options for Tailored Analysis
One of the standout features of this multi-tool indicator is its high level of customization. Traders can toggle each indicator on or off according to their preferences and adjust input parameters such as lengths, colors, and offsets. This flexibility allows traders to tailor the tool to their specific trading style and market conditions, ensuring that they can extract maximum value from the analysis provided.
The Synergy of Combined Indicators: Enhancing Technical Analysis
The real power of this script lies in how these four indicators work together to provide a comprehensive analysis of the market. When combined, they cover various aspects of technical analysis:
• Trend Detection: The Alligator and Ichimoku Cloud work together to confirm trend direction and strength, while the Anchored VWAP highlights critical price levels.
• Reversal Points: Fractals and Ichimoku's Tenkan-sen/Kijun-sen crossovers help identify potential market reversals.
• Volatility and Momentum: The Bollinger BandWidth with Moving Average provides insights into market volatility, which complements the momentum signals from the Ichimoku Cloud.
• Support and Resistance: Fractals and Anchored VWAP pinpoint key levels. They provide clear support and resistance levels, enhancing the trader's ability to make informed decisions.
Advantages to Technical Analysis
• Holistic View: Combines trend, momentum, volatility, and price levels into a single script.
• Enhanced Decision-Making: Multiple confirmation signals increase the reliability of trading signals.
• Flexibility: Customizable settings allow traders to tailor the indicator to their specific needs.
• Efficiency: Reduces the need to switch between multiple charts and indicators, streamlining the analysis process.
How to Use:
1. Access the indicator settings to customize each component according to your trading strategy.
2. Toggle visibility for Fractal and Alligator, Ichimoku Cloud, Anchored VWAP, and Bollinger BandWidth components.
3. Adjust lengths, colors, and calculation methods to match your charting style and preferences.
4. Combine insights from trend analysis, support/resistance levels, and volatility measures for informed trading decisions.
Elevate your trading analysis with this all-in-one tool, merging multiple indicators into a powerful script that offers a comprehensive view of the market.
In Conclusion: An Indispensable Tool for Traders
This multi-tool indicator is designed to cater to the needs of traders who seek a comprehensive and versatile analytical framework. By integrating Fractal & Alligator, Ichimoku Cloud, Anchored VWAP, and Bollinger BandWidth with Moving Average, it provides a holistic view of market conditions, enhancing the trader's ability to identify key trends, support/resistance levels, and potential trading signals. This script is not just a combination of indicators but a thoughtfully crafted tool that delivers actionable insights and helps traders to stay ahead in the financial markets.
Author: drshah93
MA15, MA50 with Support/Resistance, CHoCH, Trend, and Entry/Exita comprehensive indicator that includes moving averages (MA), support and resistance levels, Change of Character (CHoCH) detection, trend identification, and entry/exit signals. Here's a breakdown of its components:
Input Parameters:
ma15_length and ma50_length: Lengths for the moving averages.
lookback: Period for detecting support and resistance levels.
Moving Averages:
ma15 and ma50 are simple moving averages with lengths defined by the user.
Support and Resistance Levels:
The script identifies swing highs and lows to update support and resistance levels.
These levels are plotted using extended lines for visualization.
Change of Character (CHoCH):
CHoCH up is detected when ma15 crosses above ma50.
CHoCH down is detected when ma15 crosses below ma50.
Corresponding signals are plotted on the chart.
Trend Identification:
An uptrend is confirmed when ma15 crosses above ma50 and the close price is above ma50.
A downtrend is confirmed when ma15 crosses below ma50 and the close price is below ma50.
Background colors are used to highlight uptrend (green) and downtrend (red).
Entry and Exit Signals:
Buy signals are generated when CHoCH up occurs, and the price pulls back to support during an uptrend.
Sell signals are generated when CHoCH down occurs, and the price pulls back to resistance during a downtrend.
These signals are plotted on the chart.
Alerts:
Alerts are set up to notify the user when a buy or sell signal is detected.
Bollinger Bands & SuperTrend Strategy by Tradinggg HubThis TradingView Pinescript combines Bollinger Bands and a custom SuperTrend indicator to generate trading signals.
Bollinger Bands:
Bollinger Bands are a popular volatility indicator that consists of three lines:
* Basis: A simple moving average (SMA) of the price (default length is 20 periods).
* Upper Band: The basis plus a standard deviation multiplier (default is 2).
* Lower Band: The basis minus a standard deviation multiplier (default is 2).
These bands expand and contract as volatility increases or decreases, helping traders identify potential overbought and oversold conditions.
SuperTrend:
The SuperTrend indicator is a trend-following tool that aims to identify the direction of the price trend. It uses the Average True Range (ATR) to determine the volatility of the market and sets levels above and below the price to indicate potential trend reversals.
How the Strategy Works:
1. Bollinger Bands: The script plots Bollinger Bands around the price, providing insight into the current volatility and potential overbought or oversold conditions.
2. SuperTrend: The script calculates and plots a custom SuperTrend indicator based on user-defined ATR period and factor. It helps visualize the current trend direction and potential trend reversals.
3. Buy Signals: A buy signal is generated when the following conditions are met:
- The price crosses above the SuperTrend line.
- The price is above the Bollinger Bands basis line.
4. Sell Signals: A sell signal is generated when one of the following conditions is met:
- The price crosses below the SuperTrend line.
- The price is below the Bollinger Bands basis line.
Key Parameters:
* Bollinger Bands Length: The number of periods used to calculate the basis (SMA) of the Bollinger Bands.
* Bollinger Bands Multiplier: The factor used to calculate the standard deviation for the upper and lower bands.
* SuperTrend ATR Period: The number of periods used to calculate the Average True Range (ATR) for the SuperTrend.
* SuperTrend Factor: The factor used to determine the distance of the SuperTrend levels from the price.
Customization:
Feel free to experiment with different parameter values to optimize the strategy for your preferred asset and time frame.
Disclaimer:
This script is intended for educational and informational purposes only. It should not be considered as financial advice. Always conduct thorough research and consider your own risk tolerance before making any trading decisions.
TP RSITP RSI - Integrated Trend, Momentum, and Volatility Analyzer
The TP RSI indicator is an innovative 3-in-1 technical analysis tool that combines RSI, Bollinger Bands, and an EMA ribbon to provide traders with a comprehensive view of trend, momentum, and volatility in a single, easy-to-interpret visual display.
Why This Combination? This mashup addresses three critical aspects of market analysis simultaneously:
Trend identification and strength (EMA ribbon)
Momentum measurement (RSI)
Volatility assessment (Bollinger Bands)
By integrating these components, traders can make more informed decisions based on multiple factors without switching between different indicators.
How Components Work Together:
1. EMA Ribbon (Trend):
10 EMAs form 5 color-coded bands
Blue: Uptrend, Red: Downtrend
Provides a nuanced view of trend strength and potential reversals
2. RSI (Momentum):
Color-coded for quick interpretation
Blue: Upward momentum, Red: Downward momentum, White: Neutral
Position relative to the ribbon offers additional insight
3. Bollinger Bands (Volatility):
Applied to RSI for dynamic overbought/oversold levels
Narrow bands indicate low volatility, suggesting potential breakouts
Unique Aspects and Originality:
Synergistic visual cues: Color coordination between ribbon and RSI
Multi-factor confirmation: Requires alignment of trend, momentum, and volatility for strong signals
Volatility-adjusted momentum: RSI interpreted within the context of Bollinger Bands
How these components work together:
Buy Signal: Blue ribbon with blue RSI outside the ribbon.
Sell Signal: Red ribbon with red RSI outside the ribbon.
Neutral: White RSI or RSI inside the ribbon (not recommended for trading)
Increasing Momentum: RSI crossing above upper Bollinger Band (upward) or below lower Band (downward).
Trend Strength: RSI rejection by the ribbon, while all bands are colored along with the trend direction, identifies a strong trend.
MA Crossover StrategyIt is very simple strategy, in this you will will whenever MA 7 crossover MA 30 you will get the Buy and Sell signal. Best time frame to test this strategy is 4 hour and 1 day. Also you can try 1 hour and 15 min time frame
Premarket Std Dev BandsOverview
The Premarket Std Dev Bands indicator is a powerful Pine Script tool designed to help traders gain deeper insights into the premarket session's price movements. This indicator calculates and displays the standard deviation bands for premarket trading, providing valuable information on price volatility and potential support and resistance levels during the premarket hours.
Key Features
Premarket Focus: Specifically designed to analyze price movements during the premarket session, offering unique insights not available with traditional indicators.
Customizable Length: Users can adjust the averaging period for calculating the standard deviation, allowing for tailored analysis based on their trading strategy.
Standard Deviation Bands: Displays both 1 and 2 standard deviation bands, helping traders identify significant price movements and potential reversal points.
Real-Time Updates: Continuously updates the premarket open and close prices, ensuring the bands are accurate and reflective of current market conditions.
How It Works
Premarket Session Identification: The script identifies when the current bar is within the premarket session.
Track Premarket Prices: It tracks the open and close prices during the premarket session.
Calculate Premarket Moves: Once the premarket session ends, it calculates the price movement and stores it in an array.
Compute Averages and Standard Deviation: The script calculates the simple moving average (SMA) and standard deviation of the premarket moves over a specified period.
Plot Standard Deviation Bands: Based on the calculated standard deviation, it plots the 1 and 2 standard deviation bands around the premarket open price.
Usage
To utilize the Premarket Std Dev Bands indicator:
Add the script to your TradingView chart.
Adjust the Length input to set the averaging period for calculating the standard deviation.
Observe the plotted standard deviation bands during the premarket session to identify potential trading opportunities.
Benefits
Enhanced Volatility Analysis: Understand price volatility during the premarket session, which can be crucial for making informed trading decisions.
Support and Resistance Levels: Use the standard deviation bands to identify key support and resistance levels, aiding in better entry and exit points.
Customizable and Flexible: Tailor the averaging period to match your trading style and strategy, making this indicator versatile for various market conditions.
Multi Timeframe Bull Market Support BandsMulti Timeframe Bull Market Support Bands (BMSB) Indicator
Concept and Functionality:
The Multi Timeframe Bull Market Support Bands (BMSB) indicator is a powerful tool designed to identify and visualize support levels across multiple timeframes simultaneously. The primary concept behind BMSB is to plot dynamic support bands derived from moving averages (MAs) that adapt to the prevailing bullish conditions across different timeframes. These bands act as support and resistance (S/R) levels, providing traders with critical insights into potential price bounce areas and market direction.
Key Features:
Multi Timeframe Analysis:
- The indicator plots bull market support bands for the following timeframes concurrently: Chart (with price prediction), 5 minutes (5m), 15 minutes (15m), 1 hour (1h or 60), 4 hours (4h or 240), Daily (D), 3 Days (3D), and Weekly (W).
- These bands allow traders to see how the price interacts with different support levels, potentially bouncing between them as it moves across timeframes.
Dynamic Band Visibility:
- Bands from shorter timeframes are only displayed in relevant higher timeframes:
- 5m is shown only in timeframes ≤ 15m.
- 15m is shown only in timeframes ≤ 1h.
- 1h is shown only in timeframes ≤ 4h.
- 4h is shown only in timeframes ≤ D.
- D and 3D are shown only in timeframes ≤ W.
- W is always shown.
Customizable Moving Averages:
- The period of the moving averages used to calculate the support bands can be adjusted. Any changes made will be applied across all bands to maintain consistency.
Future Band Prediction:
- If the current timeframe lacks sufficient bars to calculate a moving average, the indicator shows a blue line on the bar where the band will appear. When a new band appears on the current bar, it is highlighted in purple, allowing traders to notice the first value of the new band.
- These new bands can act as magnets, attracting price action. Knowing when a new band will appear helps traders anticipate whether the price will be drawn to the upcoming band or potentially break through it.
Benefits:
- Enhanced Market Insight: By layering support bands from multiple timeframes, traders gain a comprehensive view of market dynamics and potential bounce areas.
- Improved Decision-Making: The ability to see upcoming support bands and how the price interacts with them aids in making more informed trading decisions.
- Customization and Flexibility: Adjustable moving average periods ensure that the indicator can be tailored to fit various trading strategies and market conditions.
The Multi Timeframe Bull Market Support Bands indicator is a versatile and insightful tool for traders aiming to leverage multi-timeframe analysis to enhance their trading strategies and better understand market behavior.
Rolling Price Activity Heatmap [AlgoAlpha]📈 Rolling Price Activity Heatmap 🔥
Enhance your trading experience with the Rolling Price Activity Heatmap , designed by AlgoAlpha to provide a dynamic view of price activity over a rolling lookback period. This indicator overlays a heatmap on your chart, highlighting areas of significant price activity, allowing traders to spot key price levels at a glance.
🌟 Key Features
📊 Rolling Heatmap: Visualize historical price activity intensity over a user-defined lookback period.
🔄 Customizable Lookback: Adjust the heatmap lookback period to suit your trading style.
🌫️ Transparency Filter: Fine-tune the heatmap’s transparency to filter out less significant areas.
🎨 Color Customization: Choose colors for up, down, and highlight areas to fit your chart’s theme.
🔄 Inverse Heatmap Option: Flip the heatmap to highlight less active areas if needed.
🛠 Add the Indicator: Add the Indicator to favorites. Customize settings like lookback period, transparency filter, and colors to fit your trading style.
📊 Market Analysis: Watch for areas of high price activity indicated by the heatmap to identify potential support and resistance levels.
🔧 How it Works
This script calculates the highest and lowest prices within a specified lookback period and divides the price range into 15 segments. It counts the number of candles that fall within each segment to determine areas of high and low price activity. The script then plots the heatmap on the chart, using varying levels of transparency to indicate the strength of price activity in each segment, providing a clear visual representation of where significant trading occurs.
Stay ahead of the market with this powerful visualization tool and make informed trading decisions! 📈💼
Simple FVGSimple FVG - Fair Value Gap Indicator
Overview:
The "Simple FVG" script is designed for use with TradingView to identify and visually display Fair Value Gaps (FVG) on a trading chart. This indicator highlights both bullish and bearish imbalances based on specific candlestick patterns, helping traders to quickly identify potential trading opportunities.
Key Features:
Bullish and Bearish Imbalances:
Bullish Imbalances: This script identifies bullish imbalances where the price exhibits a gap upward. The conditions for detecting a bullish imbalance are:
The high of the second candle is greater than the high of the first candle.
The low of the third candle is greater than the high of the first candle.
Bearish Imbalances: This script identifies bearish imbalances where the price exhibits a gap downward. The conditions for detecting a bearish imbalance are:
The low of the second candle is less than the low of the first candle.
The high of the third candle is less than the low of the first candle.
Customizable Display:
Bullish Blocks: Users can toggle the display of bullish imbalance blocks with customizable colors and border settings.
Bearish Blocks: Users can toggle the display of bearish imbalance blocks with customizable colors and border settings.
Color and Border Settings: Adjust the color, border color, and border width of the blocks for both bullish and bearish imbalances according to user preferences.
Visual Representation:
Drawing Blocks: The script draws filled boxes on the chart to represent identified imbalances. These blocks span from the start of the first candlestick to the end of the third candlestick, providing a clear visual indicator of the price gap.
How It Works:
Identification Logic:
The script analyzes three consecutive candles to determine if an imbalance exists.
It compares the highs and lows of these candles to establish bullish or bearish conditions.
Drawing Mechanism:
Once an imbalance condition is met, the script calculates the top and bottom levels of the imbalance block based on the high of the first candle and the low of the third candle for bullish imbalances, and vice versa for bearish imbalances.
It then draws these blocks on the chart using the specified colors and border settings.
Usage Instructions:
Add the Indicator:
Apply the "Simple FVG" indicator to your TradingView chart.
Customize Settings:
Use the input options to enable or disable the display of bullish and bearish blocks.
Adjust the colors and border settings for the imbalance blocks as needed.
Interpret Imbalances:
Look for the drawn blocks to identify potential areas where price imbalances have occurred.
Use this information to inform your trading decisions.
Originality and Value:
The "Simple FVG" script offers a unique approach to visualizing Fair Value Gaps by focusing on specific candlestick patterns. It provides traders with a tool to easily identify and analyze price imbalances, enhancing chart analysis and trading strategy development.
Chart Information:
Ensure to show the complete symbol, timeframe, and script name information on your chart for clarity and reference.
For further details and usage guidelines, refer to the TradingView House Rules.
Note: This script adheres to TradingView's guidelines for originality and usefulness, offering a practical tool for traders seeking to enhance their chart analysis.
This description adheres to TradingView's requirements by providing a detailed explanation of the script's functionality, how it works, and how users can benefit from it.
Buffett Valuation Indicator [TradeDots]The Buffett Valuation Indicator (also known as the Buffett Index or Buffett Ratio) measures the ratio of the total United States stock market to GDP.
This indicator helps determine whether the valuation changes in US stocks are justified by the GDP level.
For example, the ratio is calculated based on the standard deviations from the historical trend line. If the value exceeds +2 standard deviations, it suggests that the stock market is overvalued relative to GDP, and vice versa.
This "Buffett Valuation Indicator" is an enhanced version of the original indicator. It applies a Bollinger Band over the Valuation/GDP ratio to identify overvaluation and undervaluation across different timeframes, making it efficient for use in smaller timeframes, e.g. daily or even hourly intervals.
HOW DOES IT WORK
The Buffett Valuation Indicator measures the ratio between US stock valuation and US GDP, evaluating whether stock valuations are overvalued or undervalued in GDP terms.
In this version, the total valuation of the US stock market is represented by considering the top 10 market capitalization stocks.
Users can customize this list to include other stocks for a more balanced valuation ratio. Alternatively, users may use S&P 500 ETFs, such as SPY or VOO, as inputs.
The ratio is plotted as a line chart in a separate panel below the main chart. A Bollinger Band with a default 100-period and multiples of 1 and 2 is used to identify overvaluation and undervaluation.
For instance, if the ratio line moves above the +2 standard deviation line, it indicates that stocks are overvalued, signaling a potential selling opportunity.
APPLICATION
When the indicator is applied to a chart, we observe the ratio line's movements relative to the standard deviation lines. The further the line deviates from the standard deviation lines, the more extreme the overvaluation or undervaluation.
We look for buying opportunities when the Buffett Index moves below the first and second standard deviation lines and sell opportunities when it moves above these lines. This indicator is used as a microeconomic confirmation tool, in combination with other indicators, to achieve higher win-rate setups.
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.
R-Squared Trend Strength and Direction [CHE] Introduction
TradingView is a web-based platform that allows traders and investors to conduct comprehensive technical analyses, develop trading strategies, and track market movements in real-time. One of the many features TradingView offers is the ability to create custom indicators using Pine Script. In this presentation, we will focus on the implementation and application of an R-Squared indicator for analyzing trend strength and direction, as well as using the T3 indicator for trend direction confirmation.
---
What is R-Squared?
R-Squared (R²), also known as the coefficient of determination, is a statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable(s). In technical analysis, R-Squared is used to quantify the clarity of a trend. A higher R-Squared indicates a clearer trend, less affected by random price fluctuations.
---
Pine Script: Implementing the R-Squared Indicator
Inputs:
- Source: The data source to be analyzed, such as the average of high and low prices.
- Period: The period length for calculating sums and R-Squared values.
Sum Calculations:
- Sum X and Sum XX: These sums relate to the indices of the selected period.
- Sum XY and Sum YY: These sums relate to the products of the indices and their respective price values.
- Sum Y: The sum of price values over the chosen period.
Q-Values Calculation:
- Q-values are used to calculate the R-Squared value, which indicates trend clarity.
Trend State:
- Based on the R-Squared value, a trend state is determined, indicating whether a clear trend is present. Specific threshold values are used to identify trend changes.
---
Using the T3 Indicator
The T3 indicator is used exclusively for confirming the trend direction in this strategy. It helps verify the direction of the trend identified by the R-Squared indicator.
T3 Indicator Calculation:
- The T3 indicator uses a series of exponential smoothings to smooth price movements and provide a clearer view of the trend direction.
- The T3 indicator confirms the trend direction indicated by the R-Squared indicator.
---
Functioning of the R-Squared and T3 Combination
1. Input Parameters:
- Define the data source and period length for calculating sums and R-Squared values.
2. Sum Calculations:
- Calculate various sums over the defined period needed to derive Q-values.
3. Q-Values Calculation:
- Derive Q1, Q2, and Q3 from the sums to calculate the R-Squared value.
4. Trend State:
- Use the R-Squared value to determine if a clear trend is present, utilizing threshold values to recognize trend changes.
5. Trend Direction Confirmation with T3:
- Calculate the T3 indicator to confirm the trend direction. The T3 is used solely for direction confirmation, not for clarity.
6. Long and Short Conditions:
- Define long and short entry conditions based on the combination of R-Squared and T3 indicators, and visualize them on the chart.
---
Conclusion
The R-Squared indicator is a powerful tool for analyzing the clarity of a trend. By integrating it into TradingView using Pine Script, traders can make informed decisions and optimize their trading strategies. The T3 indicator is used exclusively in this strategy to confirm the trend direction, enhancing the accuracy of trading signals.
---
Questions and Discussion
Are there any questions about the implementation or application of the R-Squared indicator in TradingView? How can we further improve this indicator or integrate it into existing strategies?
Best regards
Chervolino
Risk Management Calculator with Fees and Take Profit [CHE]Risk Management Calculator with Fees and Take Profit
Welcome to the Risk Management Calculator with Fees and Take Profit script! This powerful tool is designed to help traders manage their risk effectively, calculate leverage, and set take profit targets. The script is inspired by and builds upon the ideas from the following TradingView script: ().
This script is inspired by and builds upon the ideas from the following TradingView script:
Features
1. Portfolio Size Input: Enter the size of your portfolio to accurately calculate your risk and leverage.
2. Max Loss Percent Input: Specify the maximum percentage of your portfolio that you are willing to risk on a single trade.
3. Max Leverage Input: Set the maximum leverage you are comfortable using.
4. Trading Fee Input: Include trading fees in your calculations to get a more realistic view of your potential losses and gains.
5. ATR Settings: Configure the ATR period and multiplier to calculate your stop loss and take profit levels.
6. RSI Settings: Adjust the RSI period for trend analysis.
How to Use
Portfolio Size
- Description: This is the total value of your trading account.
- Input: `portfolioSize`
- Default Value: 100
- Minimum Value: 0.001
Max Loss Percent
- Description: The maximum percentage of your portfolio you are willing to lose on a single trade.
- Input: `maxLossPercent`
- Default Value: 3%
- Range: 0.1% to 100%
Max Leverage
- Description: The maximum leverage you wish to use.
- Input: `maxLeverage`
- Default Value: 125
- Range: 1 to 125
Trading Fee
- Description: The fee percentage you pay per trade.
- Input: `feeRate`
- Default Value: 1%
- Range: 0% to 10%
ATR Settings
- ATR Period: Number of bars used to calculate the Average True Range.
- Input: `atrPeriod`
- Default Value: 5
- ATR Multiplier: Multiplier for ATR to set stop loss levels.
- Input: `atrMultiplier`
- Default Value: 2.0
Take Profit Multiplier
- Description: Multiplier for ATR to set take profit levels.
- Input: `takeProfitMultiplier`
- Default Value: 2.0
RSI Settings
- RSI Period: Period for the RSI calculation.
- Input: `rsiPeriod`
- Default Value: 14
Dashboard
The script includes a customizable dashboard that displays the following information:
- Portfolio Size
- Maximum Loss Amount
- Entry Price
- Stop Loss Price
- Stop Loss Percentage
- Calculated Leverage
- Order Value
- Order Quantity
- Trend Direction
- Adjusted Maximum Loss Percentage
- Take Profit Price
Dashboard Settings
- Location: Choose the position of the dashboard on the chart.
- Options: 'Top Right', 'Bottom Right', 'Top Left', 'Bottom Left'
- Size: Adjust the size of the dashboard text.
- Options: 'Tiny', 'Small', 'Normal', 'Large'
- Text/Frame Color: Set the color for the text and frame of the dashboard.
Underlying Principles and Assumptions
Leverage Calculation
The leverage calculation is fundamental to risk management in trading. It ensures that the risk per trade does not exceed a specified percentage of the portfolio. This calculation takes into account the potential loss from the entry price to the stop loss level, adjusted for trading fees. By dividing the maximum acceptable loss by the total potential loss (including fees), we derive a leverage that limits the exposure per trade. This approach helps traders avoid over-leveraging, which can lead to significant losses.
ATR and Stop Loss
The Average True Range (ATR) is used to set stop loss levels because it measures market volatility. A higher ATR indicates more volatility, which means wider stop losses are needed to avoid being prematurely stopped out by normal market fluctuations. By using an ATR multiplier, the stop loss is dynamically adjusted based on current market conditions, providing a more robust risk management strategy.
Take Profit Calculation
The take profit level is calculated as a multiple of the ATR, ensuring that it is set at a realistic level relative to market volatility. This method aims to capture significant price movements while avoiding the noise of smaller fluctuations. Setting take profit targets this way helps in locking in profits when the market moves favorably.
RSI for Trend Confirmation
The Relative Strength Index (RSI) is used to confirm the trend direction. An RSI above 50 typically indicates a bullish trend, while an RSI below 50 indicates a bearish trend. By aligning trades with the prevailing trend, the script increases the probability of successful trades. This trend confirmation helps in making informed decisions about leverage and position sizing.
Risk Color Coding
The script uses color coding to visually indicate the risk level and trend direction. Green indicates a favorable condition for long trades, red for short trades, and gray for neutral conditions. This intuitive color coding aids in quickly assessing the market conditions and making timely trading decisions.
Conclusion
This script aims to provide a comprehensive risk management tool for traders. By integrating portfolio size, leverage, fees, ATR, and RSI, it helps in making informed trading decisions. We hope you find this tool useful in your trading journey.
Happy Trading!
Percentages from 52 Week HighThis script is helpful for anyone that wants to monitor 5, 10, 20, 30, 40, 50% drops from the 52 week moving high.
I have been using a version of this script for a few years now and thought I would share it back with the community as I wrote it in 2021 to find quick deals when flipping through charts of stocks I've been watching. I never seemed to find anything doing this simple yet intuitive thing and I found myself regularly computing these lines manually on each chart. This will save you from having to do that as it automatically draws each level on your chart based on the recent 52 week or daily high.
I recently added the ability to turn on/off different levels and defaulted to setting 5, 10, and 20 % drops from the 52 week high. You can also change this to be a 52 day moving high if that's your preference.
Please let me know if you have ideas for modification as I wanted to share this with the community given I had not seen anything out there giving me what I wanted - which is why I wrote it.
All the best friends.
Support/Resistance v2 (ML) KmeanKmean with Standard Deviation Channel
1. Description of Kmean
Kmean (or K-means) is a popular clustering algorithm used to divide data into K groups based on their similarity. In the context of financial markets, Kmean can be applied to find the average price values over a specific period, allowing the identification of major trends and levels of support and resistance.
2. Application in Trading
In trading, Kmean is used to smooth out the price series and determine long-term trends. This helps traders make more informed decisions by avoiding noise and short-term fluctuations. Kmean can serve as a baseline around which other analytical tools, such as channels and bands, are constructed.
3. Description of Standard Deviation (stdev)
Standard deviation (stdev) is a statistical measure that indicates how much the values of data deviate from their mean value. In finance, standard deviation is often used to assess price volatility. A high standard deviation indicates strong price fluctuations, while a low standard deviation indicates stable movements.
4. Combining Kmean and Standard Deviation to Predict Short-Term Price Behavior
Combining Kmean and standard deviation creates a powerful tool for analyzing market conditions. Kmean shows the average price trend, while the standard deviation channels demonstrate the boundaries within which the price can fluctuate. This combination helps traders to:
Identify support and resistance levels.
Predict potential price reversals.
Assess risks and set stop-losses and take-profits.
Should you have any questions about code, please reach me at Tradingview directly.
Hope you find this script helpful!
Kernel SwitchThe indicator uses different kernel regression functions and filters to analyze and smooth the price data. It incorporates various technical analysis features like moving averages, ATR-based channels, and the Kalman filter to generate buy and sell signals. The purpose of this indicator is to help traders identify trends, reversals, and potential trade entry and exit points.
Key Components and Functionalities:
Kernel and Filter Selection:
Kernel: Options include RationalQuadratic, Gaussian, Periodic, and LocallyPeriodic.
Filter: Options include No Filter, Smooth, and Zero Lag.
Source: The source data for the calculations (default is close).
Lookback Period: The lookback period for the kernel calculations.
Relative Weight: Used for RationalQuadratic kernel.
Start at Bar: The starting bar index for the calculations.
Period: Used for Periodic and LocallyPeriodic kernels.
Additional Calculations:
Multiplier: Option to apply a multiplier to the kernel output.
Smoothing: Option to apply EMA smoothing to the kernel output.
Kalman Filter: Option to apply a Kalman filter to the smoothed output.
ATR Length: The length of the ATR used for calculating upper and lower bands.
Kernel Regression:
The code uses a switch statement to select and apply the chosen kernel function with the specified parameters.
Kalman Filter:
A custom function to apply a Kalman filter to the kernel output, providing additional smoothing and trend estimation.
ATR-based Channels:
Upper and lower bands are calculated using the kernel output and ATR, adjusted by a multiplier.
Buy/Sell Signals:
Buy signals are generated when the kernel output crosses above its previous value.
Sell signals are generated when the kernel output crosses below its previous value.
Plotting:
The main kernel output is plotted with color changes based on its direction (green for up, red for down).
Upper and lower bands are plotted based on the ATR-adjusted kernel output.
Buy and sell signals are marked on the chart with labels.
Additional markers are plotted when the high crosses above the upper band and the low crosses below the lower band.
Usage:
This indicator is used to analyze and smooth price data using various kernel regression functions and filters. It helps traders identify trends and potential reversal points, providing visual signals for buy and sell opportunities. By incorporating ATR-based channels and the Kalman filter, the indicator offers additional insights into price movements and volatility. Traders can customize the parameters to fit their specific trading strategies and preferences.
Important Note:
This script is provided for educational and template purposes and does not constitute financial advice. Traders and investors should conduct their research and analysis before making any trading decisions.
60-Day Cycle Long-Only IndicatorThe following indicator generates ‘Buy’ signals based on rotating 60-day cycles. The general theory is that when buying strong, growth-oriented assets, 60-day micro-cycles culminate into larger macro-cycles.
Summary:
Explaining the Upper and Lower Bounds in the 60-Day Cycle Strategy:
1. Cycle High (Upper Bound):
The cycle high is the highest closing price of the asset over the past 60 days. This value acts as the upper boundary of the 60-day cycle, indicating the peak price level during this period. When the current closing price is above this boundary, it suggests a potential distribution phase, where the asset might be overbought, and larger players may be selling off their positions. In the strategy, the cycle high is plotted as a red line on the chart, helping traders visually identify the upper limit of the 60-day trading range.
2. Cycle Low (Lower Bound):
The cycle low is the lowest closing price of the asset over the past 60 days. This value acts as the lower boundary of the 60-day cycle, indicating the trough price level during this period. When the current closing price is below this boundary, it suggests a potential accumulation phase, where the asset might be oversold, and larger players may be accumulating positions at lower prices. In the strategy, the cycle low is plotted as an orange line on the chart, helping traders visually identify the lower limit of the 60-day trading range.
How These Bounds Are Calculated:
• Cycle High: Calculated using the highest closing price over the last 60 trading days. In Pine Script, this is achieved with the function ta.highest(close, cycle_length), where cycle_length is set to 60 days.
• Cycle Low: Calculated using the lowest closing price over the last 60 trading days. In Pine Script, this is achieved with the function ta.lowest(close, cycle_length), where cycle_length is set to 60 days.
Interpretation and Application:
• Buy Signal: A buy signal is generated when the closing price crosses above the cycle low. This indicates a potential end to the bearish phase and the start of a bullish trend.
• Distribution Phase: When the closing price crosses above the cycle high, it suggests the market is in a distribution phase, potentially signaling a bearish trend or a sell-off period.
Example:
On a trading chart, the cycle high and cycle low are plotted as horizontal lines, with their colors distinguishing them (red for cycle high and orange for cycle low). These lines create a visual range within which the asset's price has moved over the last 60 days, helping traders quickly assess whether the current price is near the upper or lower bound.
By identifying and plotting these upper and lower bounds, traders can better understand the current market phase and make more informed trading decisions based on the 60-day cycle strategy. This indicator can be used across various assets.
Moving Average Exponential-DonCHI-SUPERTRENDThe "Moving Average Exponential-DonCHI-SUPERTREND" is a trading strategy or indicator that combines three distinct technical analysis tools:
Moving Average Exponential (EMA): This is a type of moving average that gives more weight to recent prices, making it more responsive to price changes compared to a simple moving average.
Donchian Channels (DonCHI): These are bands that are plotted above and below the recent price highs and lows. They help identify the current price volatility and potential breakout points.
SUPERTREND: This is a trend-following indicator that uses the average true range (ATR) to determine the direction of the trend. It provides signals similar to moving averages but with less lag.
United HUN CityPurpose and Usage
The purpose of this strategy is to create a composite indicator that combines the signals from the MFI, Fisher Transform, and Bollinger Bands %b indicators. By normalizing and averaging these indicators, the script aims to provide a smoother and more comprehensive signal that can be used to make trading decisions.
MFI (Money Flow Index): Measures buying and selling pressure based on price and volume.
Fisher Transform: Highlights potential reversal points by transforming price data to a Gaussian normal distribution.
Bollinger Bands %b: Indicates where the price is relative to the Bollinger Bands, helping to identify overbought or oversold conditions.
The combined indicator can be used to identify potential buy or sell signals based on the smoothed composite value. For instance, a high combined indicator value might indicate overbought conditions, while a low value might indicate oversold conditions.
PEV Price BandThe PEV Price Band shows prices calculated using the high and low P/FQ EV of the previous period. (price to enterprise value per share for the last quarter) multiplied by FQ's current EVPS (similar to comparing marketcap to enterprise value but edit equations that are close to the theory of P/E)
If the current price is lower than the minimum P/EVPS, it is considered cheap. In other words, a current price is above the maximum is considered expensive.
PEV Price Band consists of 2 parts.
- First of all, the current P/EVPS value is "green" (if the markecap is less than the enterprise value) or "red" (if the marketcap is more than the enterprise value) or "gold" (if the market value is less than the enterprise value and less than equity)
- Second, the blue line is the closing price.
Bitcoin Logarithmic Regression
This indicator displays logarithmic regression channels for Bitcoin. A logarithmic regression is a function that increases or decreases rapidly at first, but then steadily slows as time moves. The original version of this indicator/model was created as an open source script by a user called Owain but is not available on TradingView anymore. So I decided to update the code to the latest version of pinescript and fine tune some of the parameters.
How to read and use the logarithmic regression:
There are 3 different regression lines or channels visible:
Green Channel: These lines represent different levels of support derived from the logarithmic regression model.
Purpose: The green channel is used to identify potential support levels where the price might find a bottom or bounce back upwards.
Interpretation:
If the price is approaching or touching the lower green lines, it might indicate a buying opportunity or an area where the price is considered undervalued.
------------------------------------------------
Red Channel: These lines represent different levels of resistance derived from the logarithmic regression model.
Purpose: The red channel is used to identify potential resistance levels where the price might encounter selling pressure or face difficulty moving higher.
Interpretation:
If the price is approaching or touching the upper red lines, it might indicate a selling opportunity or an area where the price is considered overvalued.
-------------------------------------------------
Purple Line This line represents to so-called "fair price" of Bitcoin according to the regression model.
Purpose: The purple line can be used to identify if the current price of Bitcoin is under- or overvalued.
Interpretation: A simple interpretation here would be that over time the price will have the tendency to always return to its "fair price", so starting to DCA more when price is under the line and less when it is over the line could be a suitable investment strategy.
----------------------------------------------------
Practical Application:
You can use this regression channel to build your own, long term, trading strategies. Notice how Bitcoin seems to always act in kind of the same 4 year cycle:
- Price likes to trade around the purple line at the time of the halvings
- After the halvings we see an extended sideways range for up to 300 days
- After the sideways range Bitcoin goes into a bull market frenzy (the area between the green and red channel)
- The price tops out at the upper red channel and then enters a prolonged bear market.
Buying around the purple line or lower line of the green channel and selling once the price reaches the red channel can be a suitable and very profitable strategy.
($ROSE Trader) Mean Multiple OscillatorThe ROSE Trader Mean Multiple Oscillator is an adaptation of The Mayer Multiple, using the 99-Day Simple Moving Average rather than the 200-Day (adjusted for ROSE's higher delta), setting distinct preset levels for ROSE overbought and oversold conditions.
Who is this indicator for?
While this indicator will function on any chart, it is setup for trading Oasis BINANCE:ROSEUSDT token specifically — the presets used are tailored to the ROSE chart.
While it is an open source public script, it has been released primarily for the ROSE community
What does this indicator offer?
This indicator follows the same concepts as the Mayer Multiple, popular with BTC. What makes it unique is that it the presets are setup specifically for the BINANCE:ROSEUSDT , based upon my trading experience.
About the Mayer Multiple:
The Mayer Multiple is a derivative of the 200-day MA, calculated by dividing the BTC market price by the 200-day MA. The 200-day MA is a widely recognised indicator for BTC in establishing macro bull or bear bias. The Mayer Multiple therefore represents a measure of distance away from this long-term average or mean price as a tool to gauge overbought and oversold conditions.
For BTC overbought, and oversold conditions, have historically coincided with Mayer Multiple values of 2.4, and 0.8 respectively.
Adapting this concept to the ROSE token:
The adaption of the Mayer Multiple offered here adjusts the 200-day MA to suit the higher delta or volatility of the BINANCE:ROSEUSDT token specifically. For ROSE I use the 99-day MA to establish macro bull or bear bias. The derived 'Mean Multiple', based on the 99-day MA therefore represents a measure of distance away from this long-term average or mean price as a tool to gauge overbought and oversold conditions.
For ROSE overbought, and oversold conditions, tend to coincide with values of 1.618, and 0.618 respectively. Further offsets have been preprogrammed to add nuance to the way this indicator may be used in different market conditions
The ROSE Trader Mean Multiple Oscillator:
The Oscillator version of this script is useful to determine possible levels that price is likely to reach overbought and over sold conditions by plotting the offsets and values directly on the price chart
Calculations:
99-Day Simple Moving Average (99D SMA) * by offset
This script is partnered with the "ROSE Trade Mean Multiple”: an adaptation of The Mayer Multiple, using the 99-Day Simple Moving Average rather than the 200-Day (adjusted for ROSE's higher delta), setting distinct preset levels for ROSE overbought and oversold conditions.
Note: this script is setup to work with any instrument, but the presets are built to provide actionable data on the Oasis BINANCE:ROSEUSDT token specifically. It is not a predicative model, it rather shows how price has behaved historically / statistically at these levels given past data.
