Candle VolumeThis indicator gives gives candle volume represented in X.Y format for simplicity.
100% = 1.0
20% = 0.2
Anything 10X is represented by an arrow up or down based on candle price delta open to close.
By default, a 500 candle lookback of volume is used excluding exteem outliers of 50.
You can adjust these in settings.
Candlestick analysis
Renko Chart EmulationRenko charts are a popular tool in technical analysis, known for their ability to filter out market noise and focus purely on price movements. Unlike traditional candlestick or bar charts, Renko charts are not time-based but are constructed using bricks that represent a fixed price movement. This makes them particularly useful for identifying trends and key levels of support and resistance. While Renko charts are commonly found on platforms with specialized charting capabilities, they can also be emulated in Pine Script as a line indicator.
The Renko emulation indicator in Pine Script calculates the movement of price based on a user-defined brick size. Whenever the price moves up or down by an amount equal to or greater than the brick size, a new level is plotted, indicating a shift in price direction. This approach helps traders visualize significant price moves without the distractions of smaller fluctuations. By plotting the Renko levels as a continuous line and coloring it based on direction, this indicator provides a clean and straightforward representation of market trends.
Traders can use this Renko emulation line to identify potential entry and exit points, as well as to confirm ongoing trends. The simplicity of Renko charts makes them a favorite among those who prefer a minimalist approach to technical analysis. However, it is essential to choose an appropriate brick size that aligns with the volatility of the trading instrument. A smaller brick size may result in frequent signals, while a larger one can smooth out the chart, focusing only on the most substantial price movements. This script offers a flexible solution for incorporating Renko-style analysis into any trading strategy.
RY-Parabolic Stop and ReverseParabolic Stop and Reverse with Support Resistance (PSAR-SR)
Identify dynamic support and resistance levels based on price movements.
Reduce false signals often generated by the regular PSAR.
Provide more accurate trading decisions by considering previous reversal points as support and resistance.
How Does PSAR-SR Work?
PSAR Reversal Points:
When the regular PSAR generates a reversal signal, the price at that reversal point is used as support (in an uptrend) or resistance (in a downtrend).
Support and Resistance Lines:
Support: A line drawn from the previous PSAR reversal point in an uptrend.
Resistance: A line drawn from the previous PSAR reversal point in a downtrend.
Price often moves sideways between these support and resistance levels before a breakout occurs.
Breakout Above/Below Support and Resistance:
A Buy signal is generated when the price breaks above resistance with a new candle closing above it.
A Sell signal is generated when the price breaks below support with a new candle closing below it.
Strategy Using PSAR-SR
Wait for the Breakout:
Avoid buying or selling immediately when the PSAR gives a signal.
Confirm that the price breaks past the support or resistance levels and forms a new candle outside those lines.
Use Alongside Other Indicators:
PSAR-SR is not recommended as a standalone tool. Use additional confirmation indicators such as:
Moving Average: To identify long-term trends.
RSI or MACD: To confirm momentum or overbought/oversold conditions.
Advantages of PSAR-SR
Reduces False Signals:
By focusing on previous support and resistance levels, PSAR-SR avoids invalid signals.
Helps Identify Breakouts:
It provides better insight for traders to enter the market during valid breakouts.
Limitations of PSAR-SR
Not Suitable for Sideways Markets:
If the price moves sideways for an extended period, the signals may become less effective.
Requires Additional Confirmation:
Should be used in combination with other indicators to improve accuracy.
Conclusion
PSAR-SR is a helpful tool for identifying dynamic support and resistance levels and generating buy/sell signals based on price breakouts. However, it should always be used with additional indicators for confirmation to avoid false trades.
Disclaimer:
Use this indicator at your own risk, and always perform additional analysis before making any trading decisions.
If you'd like further clarification or examples of how to apply this to a chart, feel free to ask! 😊
P/L CalculatorDescription of the P/L Calculator Indicator
The P/L Calculator is a dynamic TradingView indicator designed to provide traders with real-time insights into profit and loss metrics for their trades. It visualizes key levels such as entry price, profit target, and stop-loss, while also calculating percentage differences and net profit or loss, factoring in fees.
Features:
Customizable Input Parameters:
Entry Price: Define the starting price of the trade.
Profit and Stop-Loss Levels (%): Set percentage thresholds for targets and risk levels.
USDT Amount: Specify the trade size for precise calculations.
Trade Type: Choose between "Long" or "Short" positions.
Visual Representation:
Entry Price, Profit Target, and Stop-Loss levels are plotted as horizontal lines on the chart.
Line styles, colors, and thicknesses are fully customizable for better visibility.
Real-Time Metrics:
Percentage difference between the live price and the entry price is calculated dynamically.
Profit/Loss (P/L) and fees are computed in real time to display net profit or loss.
Alerts:
Alerts are triggered when:
The live price hits the profit target.
The live price crosses the stop-loss level.
The price reaches the specified entry level.
A user-defined percentage difference is reached.
Labels and Annotations:
Displays percentage difference, P/L, and fee information in a clear label near the live price.
Custom Fee Integration:
Allows input of trading fees (%), enabling accurate net profit or loss calculations.
Price Scale Visualization:
Displays the percentage difference on the price scale for enhanced context.
Use Case:
The P/L Calculator is ideal for traders who want to monitor their trades' performance and make informed decisions without manually calculating metrics. Its visual cues and alerts ensure you stay updated on critical levels and price movements.
This indicator supports a wide range of trading styles, including swing trading, scalping, and position trading, making it a versatile tool for anyone in the market.
4H CRT (1AM and 5AM)This TradingView script is designed to assist traders in implementing the "4-Hour Candle Ranges Theory Strategy (CRT)" by identifying key levels and setups based on the 1am and 4am (5am) 4-hour candles. This strategy is particularly effective for trading high-volatility assets such as Gold, EUR/USD, NAS100, US30, and S&P500, with US30 showing a notably high win rate. Here's how the strategy works:
Key Features:
1. Marking 1am and 4am 4-Hour Candle Ranges
- The script highlights the high and low of the 1am 4-hour candle.
- It visually tracks whether the high or low of the 1am candle is taken out by the subsequent 4-hour candle (5am).
2. Entry Setup Rules
- Primary Setup: Wait for the high or low of the 1am candle to be taken out by the 5am candle. Once this sweep occurs, wait for a Market Structure Shift (MSS) on the lower time frame (15min) to confirm your entry.
- Secondary Setup: If the 5am candle fails to take out the high or low of the 1am candle, the setup focuses on the levels formed by the 5am candle.
3. Trade Execution on 15-Minute Timeframe
- The script supports a lower time frame (15min) view to identify MSS and fine-tune entries.
4. Rinse and Repeat
- This process can be applied daily for consistent opportunities across the specified assets.
Advantages:
- Provides clear visual markers for key levels based on the 4-hour candles.
- Automates level plotting, saving traders time and reducing manual errors.
- Integrates well with the 15-minute timeframe for precise entry triggers.
- Optimized for popular trading instruments, especially US30 for a higher probability of success.
This script simplifies the application of CRT by automating the process of identifying and marking critical levels, enabling traders to focus on executing high-probability setups effectively.
Created by Hamid (poraymanfx)
Center of Candle Trendline### **Center of Candle Trendline**
This script dynamically plots a trendline through the center of each candlestick's body. The "center" is calculated as the average of the open and close prices for each candle. The trendline updates in real-time as new candles form, providing a clean and straightforward way to track the market's midline movement.
#### **Features:**
1. **Dynamic Trendline:** The trendline connects the center points of consecutive candlestick bodies, giving a clear visual representation of price movements.
2. **Accurate Center Calculation:** The center is determined as `(open + close) / 2`, ensuring the trendline reflects the true midpoint of each candlestick body.
3. **Real-Time Updates:** The trendline updates automatically as new bars form, keeping your chart up to date with the latest price action.
4. **Customization-Ready:** Adjust the line’s color, width, or style easily to fit your chart preferences.
#### **How to Use:**
- Add this script to your chart to monitor the price movement relative to the center of candlestick bodies.
- Use the trendline to identify trends, reversals, or price consolidation zones.
#### **Applications:**
- **Trend Analysis:** Visualize how the market trends around the center of candlesticks.
- **Reversal Identification:** Detect potential reversal zones when the price deviates significantly from the trendline.
- **Support and Resistance Zones:** Use the trendline as a dynamic support or resistance reference.
This tool is perfect for traders who want a clean and minimalistic approach to tracking price action. Whether you're a beginner or an experienced trader, this script provides valuable insights without overwhelming your chart.
#### **Note:**
This is not a standalone trading strategy but a visual aid to complement your analysis. Always combine it with other tools and techniques for better trading decisions.
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Feel free to tweak this description based on your preferences or style!
Wick ProportionsThis simple indicator highlights candles with short and long wicks matching a specified percentage of the candle's price range.
The candle is highlighted if the short wick is less than or equal to a specified percentage of the candle price range and the long wick is more than or equal to a specified percentage of the candle price range.
Both percentages can be separately specified as inputs, within reasonable ranges.
The indicator is useful for various strategies attempting to identify price reversal points.
Enhanced SMA Strategy with Trend Lines & S&R by DaxThe Enhanced SMA Strategy with Trend Lines & Support/Resistance (S&R) by Dax indicator is a technical analysis tool designed to improve trading decisions by combining the simplicity of the Simple Moving Average (SMA) with the insight provided by trend lines and support/resistance levels. This hybrid approach aims to create a more robust and reliable trading strategy.
Key Components:
Simple Moving Average (SMA):
SMA is a basic trend-following indicator that calculates the average of a set of price data over a specified period. It helps identify the direction of the market, such as whether an asset is in an uptrend or downtrend.
The Enhanced SMA Strategy may use multiple SMAs, such as short-term (e.g., 20-period) and long-term (e.g., 50-period), to detect crossovers that signal buy or sell opportunities. For example, a bullish crossover occurs when a short-term SMA crosses above a long-term SMA, indicating a potential buying signal, while a bearish crossover signals a potential sell.
Trend Lines:
Trend lines are drawn on the price chart to visually identify the direction of the market, acting as dynamic support and resistance levels. A trend line is drawn by connecting two or more price points that demonstrate the overall price movement.
Trend lines can help traders see potential breakout or breakdown points. A price breaking above a downtrend line or below an uptrend line often signals a trend reversal.
Support and Resistance (S&R):
Support levels are price levels where an asset tends to find buying interest and stop falling, while Resistance levels are points where selling pressure emerges and prevent the price from rising further.
These levels are critical in determining where price reversals or consolidations are likely to occur. Enhanced S&R indicators can automatically identify these levels and draw horizontal lines at these critical points on the chart.
Combining S&R with SMA can help traders decide whether a breakout or bounce is likely at these levels, increasing the odds of a successful trade.
How It Works:
Trend Identification: The SMA is used to determine the trend direction. A rising SMA indicates an uptrend, while a falling SMA suggests a downtrend.
Signal Generation: The strategy often uses a combination of SMA crossovers (bullish or bearish) along with the confirmation of price action near trend lines and support/resistance levels. For example:
If a price breaks above resistance and the short-term SMA crosses above the long-term SMA, a buy signal is confirmed.
Conversely, if the price breaks below support and the short-term SMA crosses below the long-term SMA, a sell signal is given.
Dynamic Support/Resistance: Trend lines are drawn automatically or manually to spot areas where price might reverse. The Enhanced SMA Strategy checks if the price is close to these levels, providing a more precise entry/exit point based on the broader market context.
Advantages of the Enhanced SMA Strategy with Trend Lines & S&R:
Improved Accuracy: By combining trend-following (SMA) with key levels like trend lines and S&R, the strategy filters out false signals, leading to more reliable trade setups.
Trend Confirmation: The use of trend lines and S&R confirms the broader market context, reducing the risk of trading against the trend or entering at weak price points.
Flexible: This strategy can be applied to various timeframes, from short-term day trading to longer-term swing trading.
Visual Clarity: The combination of trend lines, S&R, and moving averages provides a clear and visually intuitive strategy for identifying key price levels and trend shifts.
How to Use It:
Draw Trend Lines: Identify the most recent price peaks and troughs to draw trend lines, marking the potential resistance and support levels.
Use SMAs: Apply two different-period SMAs to detect the trend (e.g., 20-period and 50-period). Pay attention to crossovers for buy/sell signals.
Watch for Breakouts or Reversals: Monitor how the price behaves at support or resistance levels and the trend lines. A price move beyond these levels, accompanied by a confirming SMA crossover, can signal a strong trade opportunity.
Conclusion:
The Enhanced SMA Strategy with Trend Lines & S&R by Dax is a powerful, multi-layered approach to technical analysis. It enhances the basic SMA strategy by incorporating additional tools like trend lines and support/resistance levels, which help traders make more informed decisions with higher accuracy. This method is suitable for both novice and experienced traders, offering clear trade signals while reducing the risk of false entries.
Position sizerPosition Sizer Indicator
The "Position Sizer" indicator is a practical tool for traders who need to quickly and accurately calculate position sizes based on their account balance, risk tolerance, and stop-loss level. It ensures real-time updates and supports multiple asset classes like Forex, Indexes, Metals, and Crypto.
Key Features
Dynamic Position Sizing: Automatically calculates position sizes based on the current market price and stop-loss level.
Stop-Loss Adjustment: Allows users to drag the stop-loss level directly on the chart, dynamically updating the position size.
Interactive Table: A single click on the table activates the draggable stop-loss level for easy adjustments.
Multi-Asset Compatibility: Fully supports Forex, Indexes, Metals, and Crypto trading pairs.
How to Use
Deactivate the Indicator:
Turn off the indicator to make it inactive.
Set the Stop-Loss Price:
Copy the stop-loss price or use a price near the current market price.
Reactivate the indicator after inserting the stop-loss price.
Adjust the Stop-Loss Level if needed:
Click once on the table to enable the stop-loss level for dragging.
Move the stop-loss line as needed—position sizes will automatically recalculate.
Important Disclaimer
Verification Required: Always verify the calculated position size before executing trades.
Broker Confirmation: Double-check the point size for your trading symbol with your broker to avoid errors in calculations.
User Responsibility: The creator assumes no responsibility for any trading decisions made based on this indicator.
This tool helps streamline position management, ensuring you can focus on executing your trades with accuracy and speed. Always confirm your calculations before trading.
Volume Trend Analysis ProKey Features of Volume Analysis Script
1. Volume Threshold Detection
Identifies significant volume spikes
Compares current volume against 20-period moving average
Configurable sensitivity for precise signal generation
2. Trend Confirmation Mechanisms
Uses short and long-term moving averages
Validates volume signals with price action
Reduces false positive trading signals
3. Advanced Visualization
Color-coded volume bars
Triangular buy/sell signal markers
Clear visual representation of volume dynamics
4. Risk Management Components
Customizable volume threshold
Deviation sensitivity adjustment
Built-in alert conditions for real-time monitoring
FTD & DD AnalyzerFTD & DD Analyzer
A comprehensive tool for identifying Follow-Through Days (FTDs) and Distribution Days (DDs) to analyze market conditions and potential trend changes, based on William J. O'Neil's proven methodology.
About the Methodology
This indicator implements the market analysis techniques developed by William J. O'Neil, founder of Investor's Business Daily and author of "How to Make Money in Stocks." O'Neil's research, spanning market data back to the 1880s, has successfully identified major market turns throughout history. His FTD and DD concepts remain crucial tools for institutional investors and serious traders.
Overview
This indicator helps traders identify two critical market conditions:
Distribution Days (DDs) - days of institutional selling pressure
Follow-Through Days (FTDs) - confirmation of potential market bottoms and new uptrends
The combination of these signals provides valuable insight into market health and potential trend changes.
Key Features
Distribution Day detection with customizable criteria
Follow-Through Day identification based on classical methodology
Market bottom detection using EMA analysis
Dynamic warning system for accumulated Distribution Days
Visual alerts with customizable labels
Advanced debug mode for detailed analysis
Flexible display options for different trading styles
Distribution Days Analysis
What is a Distribution Day?
A Distribution Day occurs when:
The price closes lower by a specified percentage (default -0.2%)
Volume is higher than the previous day
DD Settings
Price Threshold: Minimum price decline to qualify (default -0.2%)
Lookback Period: Number of days to analyze for DD accumulation (default 25)
Warning Levels:
First warning at 4 DDs
Severe warning (SOS - Sign of Strength) at 6 DDs
Display Options:
Show/hide DD count
Show/hide DD labels
Choose between showing all DDs or only within lookback period
Follow-Through Day Detection
What is a Follow-Through Day?
Following O'Neil's research, a Follow-Through Day confirms a potential market bottom when:
Occurs between day 4 and 13 after a bottom formation (optimal: days 4-7)
Shows significant price gain (default 1.5%)
Accompanied by higher volume than the previous day
Key Statistics:
FTDs followed by distribution on days 1-2 fail 95% of the time
Distribution on day 3 leads to 70% failure rate
Later distribution (days 4-5) shows only 30% failure rate
FTD Settings
Minimum Price Gain: Required percentage gain (default 1.5%)
Valid Window: Day 4 to Day 13 after bottom
Quality Rating:
🚀 for FTDs occurring within 7 days (historically most reliable)
⭐ for later FTDs
Market Bottom Detection
The indicator uses a sophisticated approach to identify potential market bottoms:
EMA Analysis:
Tracks 8 and 21-period EMAs
Monitors EMA alignment and momentum
Customizable tolerance levels
Price Action:
Looks for lower lows within specified lookback period
Confirms bottom with subsequent price action
Reset mechanism to prevent false signals
Visual Indicators
Label Types
📉 Distribution Days
⬇️ Market Bottoms
🚀/⭐ Follow-Through Days
⚠️ DD Warning Levels
Customization Options
Label size: Tiny, Small, Normal, Large
Label style: Default, Arrows, Triangles
Background colors for different signals
Dynamic positioning using ATR multiplier
Practical Usage
1. Monitor DD Accumulation:
Watch for increasing number of Distribution Days
Pay attention to warning levels (4 and 6 DDs)
Consider reducing exposure when warnings appear
2. Bottom Recognition:
Look for potential bottom formations
Monitor EMA alignment and price action
Wait for confirmation signals
3. FTD Confirmation:
Track days after potential bottom
Watch for strong price/volume action in valid window
Note FTD quality rating for additional context
Alert System
Built-in alerts for:
New Distribution Days
Follow-Through Day signals
High DD accumulation warnings
Tips for Best Results
Use multiple timeframes for confirmation
Combine with other market health indicators
Pay attention to sector rotation and market leadership
Monitor volume patterns for confirmation
Consider market context and external factors
Technical Notes
The indicator uses advanced array handling for DD tracking
Dynamic calculations ensure accurate signal generation
Debug mode available for detailed analysis
Optimized for real-time and historical analysis
Additional Information
Compatible with all markets and timeframes
Best suited for daily charts
Regular updates and maintenance
Based on O'Neil's time-tested market analysis principles
Conclusion
The FTD & DD Analyzer provides a systematic approach to market analysis, combining O'Neil's proven methodologies with modern technical analysis. It helps traders identify potential market turns while monitoring institutional participation through volume analysis.
Remember that no indicator is perfect - always use in conjunction with other analysis tools and proper risk management.
Scalping long-shortThe Scalping long-short indicator is a comprehensive system for analyzing candle patterns and trading volume, designed for use in a scalping strategy. The main purpose of the indicator is to identify the key points of changing market sentiment and provide the trader with accurate signals for entering a trade.
The main components of the indicator:
1. Candle Pattern Analysis:
The indicator analyzes four main candle patterns:
-A Bullish Hammer is a candle with a small body and a long lower tail, which indicates the possible completion of a downward movement and the beginning of an uptrend.
-Bearish Hanging Man is a candle similar to a bullish hammer, but it appears after an upward movement, signaling the possible beginning of a downtrend.
-Bullish Engulfing is a candle with a large body that completely covers the body of the previous candle, showing strong buyer interest.
-Bearish Engulfing is the reverse situation, when a large bearish candle absorbs the previous bullish candle, indicating the predominance of sellers.
-Doji is a candle with almost identical opening and closing prices, indicating market indecision.
For each of these patterns, the indicator sets certain threshold values that the user can adjust to their preferences and features of the trading instrument.
2. Volume analysis:
The volume is an important confirmation of the strength of the signal. The indicator compares the current volume with the average value for the user-selected period (length parameter) multiplied by the volumeMultiplier coefficient. If the current volume exceeds this indicator, the signal is considered confirmed.
3. Visual indication:
Graphical elements corresponding to each type of signal are displayed on the price chart.:
-The green triangle down is a buy signal (bullish hammer or bullish takeover).
-The red triangle up is a sell signal (bearish hanging or bearish engulfing).
-The yellow diamond is a neutral state (doji).
These visual cues help you quickly assess the current market situation without having to analyze each candle manually in depth.
4. Alerts:
The indicator supports setting alerts that can be sent via the TradingView platform or other supporting systems. This allows the trader to receive notifications about the occurrence of new signals even outside the workplace.
Settings:
The user can change the following settings:
-Length is the period for calculating the average volume.
-Multiplier is a multiplier for the thresholds of candle patterns.
-HammerThreshold, HangingManThreshold, EngulfingThreshold, DojiThreshold are Thresholds for recognizing specific candlestick patterns.
-VolumeMultiplier is a coefficient for comparing the current volume with the average value.
These parameters allow you to adapt the indicator to various trading instruments and time intervals, making it a universal tool for a wide range of traders.
Conclusion:
The Scalping long-short indicator combines powerful analytical tools to identify key points in the market, providing the trader with clear and timely signals for making trading decisions. Its flexibility and fine-tuning capability make it useful for both beginners and experienced market participants.
Candlestick Pattern DetectorFeatures
Reversal Patterns:
Bullish Patterns:
Bullish Engulfing: A strong reversal signal when a bullish candle completely engulfs the previous bearish candle.
Hammer: Indicates a potential bottom reversal with a small body and a long lower wick.
Morning Star: A three-candle pattern signaling a transition from a downtrend to an uptrend.
Bearish Patterns:
Bearish Engulfing: A bearish candle fully engulfs the prior bullish candle, indicating a potential downtrend.
Shooting Star: A potential top reversal with a small body and a long upper wick.
Evening Star: A three-candle pattern signaling a shift from an uptrend to a downtrend.
Continuation Patterns:
Bullish Continuation:
Rising Three Methods: A consolidation pattern within an uptrend, indicating the trend is likely to continue.
Bearish Continuation:
Falling Three Methods: A consolidation pattern within a downtrend, suggesting further downside movement.
Visual Highlights:
Bullish Reversal Patterns: Labeled below candles with a green "Bullish" marker.
Bearish Reversal Patterns: Labeled above candles with a red "Bearish" marker.
Bullish Continuation Patterns: Displayed as blue triangles pointing upward.
Bearish Continuation Patterns: Displayed as orange triangles pointing downward.
Real-Time Alerts:
Get notified when a specific candlestick pattern is detected, enabling you to act quickly in dynamic market conditions.
Mupf Wick - Extended Valid Lines
This indicator identifies and tracks wick-based price entry strategies on higher timeframes. It is designed for traders who utilize wick-driven logic for identifying significant price levels.
How to Use
Select Timeframe:
Set the higher timeframe for wick detection in the settings (default is 4-hour).
Customize Tolerance and Visuals:
Adjust the wick tolerance percentage and enable/disable visualization options based on your trading strategy.
Analyze Lines:
Green lines indicate validated bullish wicks (support).
Red lines indicate validated bearish wicks (resistance).
Blue or purple lines show invalidated levels due to double wicks or body overlaps.
Use as Confluence:
Combine this indicator with your broader strategy to identify high-probability zones for entries or exits.
Previous wicks:
Double wicks:
Double body's:
Features
Wick Detection Across Different Timeframes
Tracks wicks on a user-defined higher timeframe (default: 4-hour) to highlight potential support and resistance levels.
Dynamic Valid Line Classification
Valid Lines: Lines validated when the price crosses the body of subsequent candles.
Invalid Lines: Lines invalidated by overlapping wick conditions.
Double Wick/Body Detection: Highlights invalid lines due to double wicks or body overlaps.
Customizable Visualization
Configurable line width and colors for valid, invalid, and other conditions.
Optional visibility for expired wicks, double wicks, and invalid body overlaps.
Tolerance-Based Wick Filtering
Includes a user-adjustable tolerance percentage to define how closely a wick must align with price to trigger validation or invalidation.
Known Issues
Timeframe Dependency:
The indicator only works correctly on the specified candle timeframe (default: 4-hour). Using it on other timeframes without adjustment may cause errors or misaligned lines.
Memory Limitations:
Due to Pine Script's memory constraints, some previous wicks or invalid wicks may be missed if too many lines / options are tracked simultaneously.
Missing Alerts for Entry Triggers:
The indicator currently lacks built-in alerts for entry triggers based on line validation/invalidation events. This must be monitored manually.
Future Enhancements
Support for multi-timeframe compatibility.
Improved memory handling to track more historical wicks.
Addition of alert functionality for real-time trade signals.
This tool is ideal for traders focusing on price action and wick-based strategies, providing visual clarity on important market levels.
SCE ReversalsThis tool uses past market data to attempt to identify where changes in “memory” may occur to spot reversals. The Hurst Exponent was a big inspiration for this code. The main driver is identifying when past ranges expand and contract, leading to a change in direction. With the use of Sum of Squared Errors, users do not need to input anything.
Getting optimized parameters
// Define ranges for N and lkb
N_range = array.from(15, 20, 25, 30, 35, 40, 45, 50, 55, 60)
// Function to calculate SSE
sse_calc(_N) =>
x = math.pow(close - close , 2)
y = math.pow(close - close , 2) + math.pow(close, 2)
z = x / y
scaled_z = z * math.log(_N)
min_r = ta.lowest(scaled_z, _N)
max_r = ta.highest(scaled_z, _N)
norm_r = (scaled_z - min_r) / (max_r - min_r)
SMA = ta.sma(close, _N)
reversal_bullish = norm_r == 1.000 and norm_r < 0.90 and close < SMA and session.ismarket and barstate.isconfirmed
reversal_bearish = norm_r == 1.000 and norm_r < 0.90 and close > SMA and session.ismarket and barstate.isconfirmed
var float error = na
if reversal_bullish or reversal_bearish
error := math.pow(close - SMA, 2)
error
else
error := 999999999999999999999999999999999999999
error
error
var int N_opt = na
var float min_SSE = na
// Loop through ranges and calculate SSE
for N in N_range
sse = sse_calc(N)
if na(min_SSE) or sse < min_SSE
min_SSE := sse
N_opt := N
The N_range list encompasses every lookback value to check with. The sse_calc function accepts an individual element to then perform the calculation for Reversals. If there is a reversal, the error becomes how far away the close is from a moving average with that look back. Lowest error wins. That would be the look back used for the Reversals calculation.
Reversals calculation
// Calculating with optimized parameters
x_opt = math.pow(close - close , 2)
y_opt = math.pow(close - close , 2) + math.pow(close, 2)
z_opt = x_opt / y_opt
scaled_z_opt = z_opt * math.log(N_opt)
min_r_opt = ta.lowest(scaled_z_opt, N_opt)
max_r_opt = ta.highest(scaled_z_opt, N_opt)
norm_r_opt = (scaled_z_opt - min_r_opt) / (max_r_opt - min_r_opt)
SMA_opt = ta.sma(close, N_opt)
reversal_bullish_opt = norm_r_opt == 1.000 and norm_r_opt < 0.90 and close < SMA_opt and close > high and close > open and session.ismarket and barstate.isconfirmed
reversal_bearish_opt = norm_r_opt == 1.000 and norm_r_opt < 0.90 and close > SMA_opt and close < low and close < open and session.ismarket and barstate.isconfirmed
X_opt and y_opt are the compared values to develop the system. Everything done afterwards is scaling and using it to spot the Reversals. X_opt is the current close, minus the close with the optimal N bars back, squared. Then y_opt is also that but plus the current close squared. Z_opt is then x_opt / y_opt. This gives us a pretty small number that will go up when we approach tops or bottoms. To make life a little easier I normalize the value between 0 and 1.
After I find the moving average with the optimal N, I can check if there is a Reversal. Reversals are there when the last value is at 1 and the current value drops below 0.90. This would tell us that “memory” was strong and is now changing. To determine direction and help with accuracy, if the close is above the moving average it is a bearish alert, and vice versa. As well as the close must be below the last low for a bearish Reversal, above the last high for a bullish Reversal. Also the close must be above the open for a bullish Reversal, and below for a bearish one.
Visual examples
This NASDAQ:TSLA chart shows how alerts may come around. The bullish and bearish labels are plotted on the chart along with a reference line to see price interact with.
The indicator has the potential to be inactive, like we see here on $OKLO. There is only one alert, and it marks the bottom nicely.
Stocks with strong trends like NYSE:NOW may be more susceptible to false alerts. Assets that are volatile and bounce around a lot may be better.
It works on intra day charts the same as on Daily or longer charts. We see here on NASDAQ:QQQ it spotted the bottom on this particular trading day.
This tool is meant to aid traders in making decisions, not to be followed blindly. No trading tool is 100% accurate and Sum of Squared Errors does not guarantee the most optimal value. I encourage feedback and constructive criticism.
Smart Money Concepts (Advanced)Inspired and initially based on LuxAlgo's Smart Money Concepts Indicator I created a library lib_smc that started to convert every function and return objects. This allowed certain customizations like tracking the current fill level of FVGs or tracking the creation of Order Blocks, by monitoring consecutive bars against the current trend.
This indicator is provided as is, based on, but probably not always be up to date with my lib_smc that I am using for my projects.
WARNING: This indicator shows EXPERIMENTAL Order Blocks that are tracked LIVE. Unlike usual Order Blocks these are not just based on the last confirmed Swing Point (formed 50 bars before) but on consecutive candles opposing an unconfirmed trend. Blocks are confirmed by price movements relative to the unconfirmed block and unconfirmed swing points. This means that some Order Blocks will appear on pullbacks, as well as reversals.
Features
Swing Points (HH / LH / HL / LL), indicating support / resistance zones price might reject off of or want to push through
Market Structure (BOS / ChoCh), indicates confirmation for a continued / changing trend
live Order Blocks (OB), see warning above.
Fair Value Gaps (FVG), optional from higher timeframes
Equal Highs / Lows (EQH/EQL), indicates strong support / resistance zones, especially when the bars forming it have long wicks toward that zone
using my lib_no_delay all moving averages are working from bar 0, so it can be used on charts with limited bars
