Market Breadth - AsymmetrikMarket Breadth - Asymmetrik User Manual
Overview
The Market Breadth - Asymmetrik is a script designed to provide insights into the overall market condition by plotting three key indicators based on stocks within the S&P 500 index. It helps traders assess market momentum and strength through visual cues and is especially useful for understanding the proportion of stocks trading above their respective moving averages.
Features
1. Market Breadth Indicators:
- Breadth 20D (green line): Represents the percentage of stocks in the S&P 500 that are above their 20-day moving average.
- Breadth 50D (yellow line): Represents the percentage of stocks in the S&P 500 that are above their 50-day moving average.
- Breadth 100D (red line): Represents the percentage of stocks in the S&P 500 that are above their 100-day moving average.
2. Horizontal Lines for Context:
- Green line at 10%
- Lighter green line at 20%
- Grey line at 50%
- Light red line at 80%
- Dark red line at 90%
3. Background Color Alerts:
- Green background when all three indicators are under 20%, indicating a potential oversold market condition.
- Red background when all three indicators are over 80%, indicating a potential overbought market condition.
Interpreting the Indicator
- Market Breadth Lines: Observe the plotted lines to assess the percentage of stocks above their moving averages.
- Horizontal Lines: Use the horizontal lines to quickly identify important threshold levels.
- Background Colors: Pay attention to background colors for quick insights:
- Green: All indicators suggest a potentially oversold market condition (below 20).
- Red: All indicators suggest a potentially overbought market condition (above 80).
Troubleshooting
- If the indicator does not appear as expected, please contact me.
- This indicator works only on daily and weekly timeframes.
Conclusion
This Market Breadth Indicator offers a visual representation of market momentum and strength through three key indicators, helping you identify potential buying and selling zones.
Ortalanmış Osilatörler
DSL Oscillator [BigBeluga]DSL Oscillator BigBeluga
The DSL (Discontinued Signal Lines) Oscillator is an advanced technical analysis tool that combines elements of the Relative Strength Index (RSI), Discontinued Signal Lines, and Zero-Lag Exponential Moving Average (ZLEMA). This versatile indicator is designed to help traders identify trend direction, momentum, and potential reversal points in the market.
What are Discontinued Signal Lines (DSL)?
Discontinued Signal Lines are an extension of the traditional signal line concept used in many indicators. While a standard signal line compares an indicator's value to its smoothed (slightly lagging) state, DSL takes this idea further by using multiple adaptive lines that respond to the indicator's current value. This approach provides a more nuanced view of the indicator's state and momentum, making it easier to determine trends and desired states of the indicator.
🔵 KEY FEATURES
● Discontinued Signal Lines (DSL)
Uses multiple adaptive lines that respond to the indicator's value
Provides a more nuanced view of the indicator's state and momentum
Helps determine trends and desired states of the indicator more effectively
Available in "Fast" and "Slow" modes for different responsiveness
Acts as dynamic support and resistance levels for the oscillator
● DSL Oscillator
Based on a combination of RSI and Discontinued Signal Lines
// Discontinued Signal Lines
dsl_lines(src, length)=>
UP = 0.
DN = 0.
UP := (src > ta.sma(src, length)) ? nz(UP ) + dsl_mode / length * (src - nz(UP )) : nz(UP )
DN := (src < ta.sma(src, length)) ? nz(DN ) + dsl_mode / length * (src - nz(DN )) : nz(DN )
Smoothed using Zero-Lag Exponential Moving Average for reduced lag
// Zero-Lag Exponential Moving Average function
zlema(src, length) =>
lag = math.floor((length - 1) / 2)
ema_data = 2 * src - src
ema2 = ta.ema(ema_data, length)
ema2
Oscillates between 0 and 100
Color-coded for easy interpretation of market conditions
● Signal Generation
Generates buy signals when the oscillator crosses above the lower DSL line below 50
Generates sell signals when the oscillator crosses below the upper DSL line above 50
Signals are visualized on both the oscillator and the main chart
● Visual Cues
Background color changes on signal occurrences for easy identification
Candles on the main chart are colored based on the latest signal
Oscillator line color changes based on its position relative to the DSL lines
🔵 HOW TO USE
● Trend Identification
Use the color and position of the DSL Oscillator relative to its Discontinued Signal Lines to determine the overall market trend
● Entry Signals
Look for buy signals (green circles) when the oscillator crosses above the lower DSL line
Look for sell signals (blue circles) when the oscillator crosses below the upper DSL line
Confirm signals with the triangles on the main chart and background color changes
● Exit Signals
Consider exiting long positions on exit signals and short positions on Entery signals
Watch for the oscillator crossing back between the DSL lines as a potential early exit signal
● Momentum Analysis
Strong momentum is indicated when the oscillator moves rapidly towards extremes and away from the DSL lines
Weakening momentum can be spotted when the oscillator struggles to reach new highs or lows, or starts converging with the DSL lines
The space between the DSL lines can indicate potential momentum strength - wider gaps suggest stronger trends
● Confirmation
Use the DSL lines as dynamic support/resistance levels for the oscillator
Look for convergence between oscillator signals and price action on the main chart
Combine signals with other technical indicators or chart patterns for stronger confirmation
🔵 CUSTOMIZATION
The DSL Oscillator offers several customization options:
Adjust the main calculation length for the DSL lines
Choose between "Fast" and "Slow" modes for the DSL lines calculation
By fine-tuning these settings, traders can adapt the DSL Oscillator to various market conditions and personal trading strategies.
The DSL Oscillator provides a multi-faceted approach to market analysis, combining trend identification, momentum assessment, and signal generation in one comprehensive tool. Its dynamic nature and visual cues make it suitable for both novice and experienced traders across various timeframes and markets. The integration of RSI, Discontinued Signal Lines, and ZLEMA offers traders a sophisticated yet intuitive tool to inform their trading decisions.
The use of Discontinued Signal Lines sets this oscillator apart from traditional indicators by providing a more adaptive and nuanced view of market conditions. This can potentially lead to more accurate trend identification and signal generation, especially in markets with varying volatility.
Traders can use the DSL Oscillator to identify trends, spot potential reversals, and gauge market momentum. The combination of the oscillator, dynamic signal lines, and clear visual signals provides a holistic view of market conditions. As with all technical indicators, it's recommended to use the DSL Oscillator in conjunction with other forms of analysis and within the context of a well-defined trading strategy.
Supply and Demand Zones with Enhanced SignalsThis Pine Script indicator combines supply and demand zone analysis with dynamic buy/sell signals to enhance trading strategies. It provides a robust framework for identifying optimal trading opportunities and managing existing trades.
Key Features:
Supply and Demand Zones: The indicator identifies significant supply and demand zones based on recent price action. These zones are plotted as horizontal lines to help traders visualize potential reversal points.
Exponential Moving Average (EMA): A 21-period EMA is used to determine the prevailing trend and generate buy and sell signals.
Relative Strength Index (RSI): The 14-period RSI is utilized to filter buy and sell signals, providing additional context on overbought and oversold conditions.
Signal Generation:
Buy Signal: Triggered when the price crosses above the EMA and RSI indicates that the market is not overbought.
Sell Signal: Triggered when the price crosses below the EMA and RSI indicates that the market is not oversold.
Enhanced Exit Signals:
Exit Buy Signal: Generated if an opposite sell signal occurs or the higher timeframe RSI indicates overbought conditions.
Exit Sell Signal: Generated if an opposite buy signal occurs or the higher timeframe RSI indicates oversold conditions.
Trade Management:
Tracks active trades and provides exit signals based on the occurrence of opposite trading signals. This helps in managing positions more effectively and reducing potential losses.
Usage:
Supply and Demand Zones: Look for price action around these zones to identify potential trading opportunities.
EMA and RSI: Use buy and sell signals in conjunction with EMA and RSI to validate trading decisions.
Higher Timeframe RSI: Utilize this for additional confirmation and exit signals.
Plotting:
Supply Zone: Plotted as a red horizontal line.
Demand Zone: Plotted as a green horizontal line.
EMA: Plotted as a blue line.
Buy and Sell Signals: Indicated by green and red triangle shapes, respectively.
Exit Signals: Indicated by blue and orange X shapes.
This indicator is designed to help traders make informed decisions by combining technical analysis with strategic trade management.
Custom Supertrend Multi-Timeframe Indicator [Pineify]Supertrend Multi-Timeframe Indicator
Introduction
The Supertrend Multi-Timeframe Indicator is an advanced trading tool designed to help traders identify trend directions and potential buy/sell signals by combining Supertrend indicators from multiple timeframes. This script is original in its approach to integrating Supertrend calculations across different timeframes, providing a more comprehensive view of market trends.
Concepts and Calculations
The indicator utilizes the Supertrend algorithm, which is based on the Average True Range (ATR). The Supertrend is a popular tool for trend-following strategies, and this script enhances its capabilities by incorporating data from a larger timeframe.
Supertrend Factor: Determines the sensitivity of the Supertrend line.
ATR Length: Defines the period for calculating the Average True Range.
Larger Supertrend Factor and ATR Length: Applied to the larger timeframe for a broader trend perspective.
Larger Timeframe: The higher timeframe from which the secondary Supertrend data is sourced.
How It Works
The script calculates the Supertrend for the current timeframe using the specified factor and ATR length.
Simultaneously, it requests Supertrend data from a larger timeframe.
Buy and sell signals are generated based on crossovers and crossunders of the Supertrend lines from both timeframes.
Visual cues (up and down arrows) are plotted on the chart to indicate buy and sell signals.
Background colors change to reflect the trend direction: green for an uptrend and red for a downtrend.
Usage
Add the indicator to your TradingView chart.
Customize the Supertrend factors, ATR lengths, and larger timeframe according to your trading strategy.
Enable or disable buy and sell alerts as needed.
Monitor the chart for visual signals and background color changes to make informed trading decisions.
Note: The indicator is best used in conjunction with other technical analysis tools and should not be relied upon as the sole basis for trading decisions.
Conclusion
The Supertrend Multi-Timeframe Indicator offers a unique and powerful way to analyze market trends by leveraging the strengths of the Supertrend algorithm across multiple timeframes. Its customizable settings and clear visual signals make it a valuable addition to any trader's toolkit.
Relative Strength according to Oster (RSO)Overview:
Relative Strength according to Oster (RSO) is an innovative tool that redefines how traders assess an asset's market strength. Moving beyond traditional indicators, RSO offers a sophisticated and highly responsive measure of an asset's potential to continue performing well. By integrating groundbreaking methodologies, RSO equips traders with unparalleled insights into market dynamics, making it an essential tool for anyone looking to stay ahead in today's fast-paced trading environment.
Understanding RSL (Relative Strength according to Levy):
At its core, Relative Strength according to Levy (RSL) is a powerful concept rooted in the idea that an asset currently exhibiting strength is more likely to maintain or even enhance that strength in the future. RSL calculates this by comparing an asset's current price to its moving average, providing a clear picture of its relative performance over time. The further its value is above 1, the higher the market momentum and vice versa. This relationship to the moving average is crucial, as it indicates not just where the asset stands today but also its trajectory in the context of historical performance. The ability to identify assets that consistently outperform is a game-changer for traders, and RSL has long been a cornerstone in this pursuit.
RSO vs. Traditional RSL: A Leap Forward
The RSO takes the traditional RSL concept and propels it into new territory with its innovative correlation-based approach. This is where RSO truly shines, offering a unique and sophisticated analysis that goes far beyond the basics.
Why RSO is Revolutionary:
Correlation Adjustment: The RSO doesn’t just measure an asset’s strength in isolation. Instead, it adjusts its readings based on how closely the asset's price movements correlate with a chosen benchmark. This groundbreaking feature ensures that the RSO is not just reactive to past performance but also predictive of how the asset might behave relative to the broader market, adding a layer of precision that is unparalleled in traditional strength indicators.
Superior Strength Option: With the RSO, traders have the option to include superior strength factors, adding another dimension of insight. This feature allows for more stable and reliable long-term signals. On the flip side, those who prefer a more dynamic trading style can opt to exclude this factor for more frequent, shorter-term signals. This level of customization is rare and sets the RSO apart as a truly adaptable tool.
Enhanced Market Insights: RSO’s correlation-based approach doesn’t just show how strong an asset is—it reveals how that strength is likely to develop in relation to the benchmark's underlying trends. This isn’t merely about comparing performance; it’s about understanding the asset’s potential trajectory in a much broader market context. Such insight is invaluable for making informed, strategic trading decisions.
Practical Application:
The RSO isn’t just innovative in theory; it’s designed for practical, real-world trading. Traders can set customized alerts based on RSO’s readings, ensuring they’re always aware of key buy or sell signals as they occur. The flexibility to include or exclude superior strength factors means that RSO can be tailored to fit any trading style, whether focused on long-term investments or short-term opportunities.
Conclusion:
In conclusion, the Relative Strength according to Oster (RSO) is more than just an indicator; it’s a breakthrough in market analysis. By integrating correlation adjustments and offering unparalleled customization options, RSO provides traders with insights that are both deeper and more actionable than ever before. This innovative tool is designed to empower traders, giving them the edge they need to succeed in an increasingly complex market landscape. Whether you’re a seasoned trader or just starting out, the RSO is a must-have tool for navigating market trends with confidence and precision.
Price & Momentum Reversal Indicator [TradeDots]Price & Momentum Divergence Indicator is a variant of the Chande Momentum Oscillator (CMO), designed to identify reversal patterns in overvalued and undervalued markets. This indicator aims to mitigate the common problem of all oscillating indicators: false buy/sell signals during prolonged market trends, by incorporating a volume-weighted approach and momentum analysis.
📝 HOW IT WORKS
Price Extremeness Calculation
The indicator evaluates the extremeness of the current price by analyzing price changes over a fixed window of candlesticks.
It separates the price changes into positive and negative changes, then multiplies them by the bar volume to obtain volume-weighted values, giving higher significance to bars with larger volumes.
Extremeness Ratio
The ratio is calculated by taking the difference between the total positive changes and total negative changes, and then dividing this result by the sum of the total positive and negative changes.
The result is then smoothed to reduce market noise and rescaled to a range between -100 to 100, where 100 indicates all price changes within the window are positive.
Momentum Analysis
Momentum is calculated by measuring the rate of change of the smoothed extremeness ratio, indicating whether market extremeness is slowing and showing signs of reversion.
Reversal Signal Confirmation
For an asset to be considered a reversal, it has to be in the overvalued or undervalued zone (exceeding the overvalued & undervalued threshold). It must then show a slowed momentum change and a price reversion.
Lastly, candlestick analysis is used to confirm the reversal signal, ensuring there is no room for further breakout price movement.
🛠️ HOW TO USE
Candlestick Visualization
Candlestick bodies are painted with gradient colors representing the smoothed price extremeness (OBOS Index), ranging from -100 (solid red) to 100 (solid green). The exact value is displayed in a table at the bottom right corner.
Slowing price momentum is indicated with blue (bearish) and purple (bullish) colors, showing market pressure from the opposite side.
Reversal Confirmation
A decrease in price momentum combined with a price reversal triggers a signal label on the candlestick, indicating a potential pullback or reversal. This can serve as a reference for better entry and exit points.
⭐️ Premium Features
Higher Timeframe (HTF) Analysis
The indicator includes a feature to apply the same algorithm to a selected higher timeframe, ensuring trend alignment across multiple timeframes.
Alert Functions
Real-time notifications for overvalued and undervalued conditions, allowing traders to monitor trades and reversal signals anywhere and anytime.
❗️LIMITATIONS
Accuracy decreases in volatile and noisy markets.
Extended bullish or bearish market conditions may affect performance.
See Author's instructions below to get instant access to this indicator.
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.
Momentum Trend [MT]The Momentum Trend indicator is an innovative technical analysis tool designed to capture and visualize momentum trends in financial markets. This advanced indicator goes beyond traditional momentum measures, offering a unique perspective on price action and trend strength.
Core Functionality:
Trend Momentum Index (TMI) Calculation:
At the heart of this indicator is the Trend Momentum Index (TMI), a proprietary algorithm that combines moving averages with price action analysis to gauge momentum. The TMI is calculated using a user-defined source, length, and moving average type.
Dynamic Trend Visualization:
The indicator uses a color-coded column plot to represent the TMI values, providing an intuitive visual representation of trend strength and direction. The colors change based on specific conditions, offering instant insights into the current market state.
Adaptive Momentum Analysis:
The TMI adapts to changing market conditions by comparing current values to historical ones, allowing for a more nuanced understanding of momentum shifts.
Key Inputs and Their Significance:
TMI Source:
Allows users to select the price data for TMI calculations. The default is the closing price, but users can choose alternative sources for different analytical perspectives.
TMI Length:
Defines the lookback period for the TMI calculation. The default of 8 provides a balance between responsiveness and stability, but users can adjust this to suit their trading style.
Moving Average Type:
Users can select from various moving average types (SMA, EMA, SMMA, WMA, VWMA) for the base calculation, allowing for customization based on trading preferences.
What Makes It Unique:
Comprehensive Momentum Analysis:
The TMI combines elements of trend following and momentum, providing a more holistic view of market dynamics than traditional momentum indicators.
Multi-Faceted Trend Identification:
The color-coding system doesn't just show bullish or bearish trends, but also identifies accelerating and decelerating momentum in both directions.
Flexible Moving Average Integration:
The ability to choose different moving average types allows traders to fine-tune the indicator's responsiveness and smoothness.
Visual Clarity:
The column-style plot with color changes offers clear, at-a-glance insights into trend strength and direction.
Momentum Comparison Logic:
The indicator incorporates logic to compare current momentum changes with recent historical changes, providing context for the current market state.
The Momentum Trend indicator represents a sophisticated approach to momentum and trend analysis. By combining moving averages, price action, and comparative momentum logic, it offers traders a powerful tool for identifying potential trend continuations, reversals, and momentum shifts.
This indicator is particularly valuable for traders looking to:
- Identify the start of new trends
- Spot potential trend reversals
- Gauge the strength of ongoing trends
- Time entries and exits based on momentum shifts
Trend Strength with Volatility and Volume [ST]Trend Strength with Volatility and Volume
Description in English:
This indicator combines market volatility and trading volume to measure the current trend strength. It helps identify when the trend is gaining or losing momentum.
Detailed Explanation:
Configuration:
Length: This input defines the period over which the moving average is calculated. The default value is 14.
MA Type: This input allows you to choose between a Simple Moving Average (SMA) and an Exponential Moving Average (EMA).
Volatility Length: This input defines the period over which the ATR (Average True Range) is calculated. The default value is 14.
Volume Length: This input defines the period over which the moving average of volume is calculated. The default value is 14.
Trend Strength Calculation:
Moving Average (MA): The script calculates the moving average of the closing price based on the selected type (SMA or EMA) and period.
Volatility (ATR): The ATR is used to measure market volatility over the specified period.
Volume MA: The script calculates the moving average of the trading volume based on the selected type (SMA or EMA) and period.
Trend Strength: The trend strength is calculated as the difference between the closing price and the moving average, divided by the volatility, and multiplied by the volume normalized by its moving average.
Plotting:
The trend strength is plotted as a line chart. Positive values indicate a strong upward trend, while negative values indicate a strong downward trend.
A horizontal line is added at the zero level to help identify the neutral point.
Indicator Benefits:
Trend Identification: Helps traders identify the strength of the current trend by combining price, volatility, and volume.
Visual Cues: Provides clear visual signals for trend strength, aiding in making informed trading decisions.
Customizable Parameters: Allows traders to adjust the length of the moving averages, ATR, and volume to suit different trading strategies and market conditions.
Justification of Component Combination:
Combining price, volatility, and volume provides a comprehensive measure of trend strength. This combination enhances the trader's ability to make informed decisions based on multiple market factors.
How Components Work Together:
The script calculates the moving average of the closing price and trading volume.
It measures market volatility using the ATR.
The trend strength is calculated by combining these components, providing a robust measure of the current trend's strength.
Título: Força da Tendência com Volatilidade e Volume
Descrição em Português:
Este indicador combina a volatilidade do mercado, medida pelo ATR (Average True Range), e o volume de negociações para medir a força da tendência atual. Ele ajuda a identificar quando a tendência está ganhando ou perdendo força.
Explicação Detalhada:
Configuração:
Comprimento: Este parâmetro define o período para o cálculo da média móvel. O valor padrão é 14.
Tipo de MA: Este parâmetro permite escolher entre uma Média Móvel Simples (SMA) e uma Média Móvel Exponencial (EMA).
Comprimento da Volatilidade: Este parâmetro define o período para o cálculo do ATR (Average True Range). O valor padrão é 14.
Comprimento do Volume: Este parâmetro define o período para o cálculo da média móvel do volume. O valor padrão é 14.
Cálculo da Força da Tendência:
Média Móvel (MA): O indicador calcula a média móvel do preço de fechamento com base no tipo selecionado (SMA ou EMA) e período.
Volatilidade (ATR): O ATR é usado para medir a volatilidade do mercado ao longo do período especificado.
Média Móvel do Volume: O indicador calcula a média móvel do volume de negociação com base no tipo selecionado (SMA ou EMA) e período.
Força da Tendência: A força da tendência é calculada como a diferença entre o preço de fechamento e a média móvel, dividida pela volatilidade e multiplicada pelo volume normalizado pela sua média móvel.
Plotagem:
A força da tendência é plotada como um gráfico de linhas. Valores positivos indicam uma forte tendência de alta, enquanto valores negativos indicam uma forte tendência de baixa.
Uma linha horizontal é adicionada no nível zero para ajudar a identificar o ponto neutro.
Benefícios do Indicador:
Identificação de Tendências: Este indicador ajuda os traders a identificar a força da tendência atual, combinando preço, volatilidade e volume.
Sinais Visuais Claros: Fornece sinais visuais claros para a força da tendência, facilitando a tomada de decisões informadas.
Parâmetros Personalizáveis: Os traders podem ajustar o comprimento das médias móveis, ATR e volume para se adequar a diferentes estratégias de negociação e condições de mercado.
Justificação da Combinação de Componentes:
A combinação de preço, volatilidade e volume fornece uma medida abrangente da força da tendência.
Isso melhora a capacidade dos traders de tomar decisões informadas com base em múltiplos fatores do mercado.
Como os Componentes Funcionam Juntos:
O indicador calcula a média móvel do preço de fechamento e do volume de negociação.
Mede a volatilidade do mercado usando o ATR.
A força da tendência é calculada combinando esses componentes, fornecendo uma medida robusta da força da tendência atual.
Power Law Volatility by G. Santostasi Introduction
This TradingView indicator is designed to provide a comprehensive analysis of Bitcoin's price movements using the concept of power laws. The indicator leverages the mathematical properties of power laws to predict returns and highlight significant deviations from expected trends. By applying the power law model to Bitcoin's price data, we aim to capture the diminishing returns over time and provide valuable insights to traders and analysts.
Theoretical Foundation
The foundation of this indicator is based on the power law, which describes a relationship between two quantities where one quantity varies as a power of another. Specifically, in the context of Bitcoin prices, we observe that returns follow a power law relationship with time.
Mathematically, if the power law holds true, the price P at time 𝑡 can be expressed as:
log(𝑃)=𝑚log(𝑡)+c where m is the slope of the power law and c is the y-intercept.
To understand the returns, we consider two points in time,
𝑡1and 𝑡2, with corresponding prices 𝑃 and 𝑃2. The returns can be derived as follows:
log(𝑃2)−log(𝑃1)=𝑚(log(𝑡2)−log(𝑡1))
This simplifies to:
log(𝑃2/𝑃1)=𝑚log(𝑡2/𝑡1)
For daily data, we let 𝑡2=𝑡1+1resulting in:
log(𝑅)=𝑚log(𝑡+1/𝑡)
where 𝑅 represents the returns, 𝑡 is the number of days from the Genesis Block, and
𝑚 is the slope of the power law.
Observations and Data Analysis
Using historical Bitcoin price data, we observe that returns decrease over time, which is indicative of diminishing returns. To validate this observation, we averaged real returns over a two-month period and compared them with the theoretical results derived from the power law:
𝑚log(𝑡2/𝑡1)
The comparison shows that the averaged real returns align closely with the theoretical predictions, reinforcing the validity of the power law model.
This alignment indicates that the power law is not merely an arbitrary straight line but a model that accurately captures the decay of returns over time. The scaling property of the power law holds at all scales, providing a robust framework for analyzing Bitcoin's price dynamics.
Indicator Components
The indicator comprises several components to visualize the power law's implications and provide actionable insights:
Theoretical Power Law Trend:
Plots the theoretical result from the power law model.
Shows the expected returns based on the power law relationship.
Real Returns:
Plots the real returns averaged over a user-defined Simple Moving Average (SMA) or Exponential Moving Average (EMA).
Provides a comparison between actual market performance and theoretical predictions.
When the real volatility is above the theoretical one derived from the power law the indicator identifies times when the price is overvalued.
Standard Deviations:
Calculates standard deviations on a moving window basis.
Plots deviations from the theoretical power law trend, highlighting significant discrepancies.
Color-Coded Thresholds:
Highlights points that deviate significantly from the expected trend.
Red indicates returns above the upper threshold (indicating potential overperformance or overvaluation).
Green indicates returns below the lower threshold (indicating potential underperformance or undervaluation).
Practical Usage
Traders and analysts can use this indicator to:
Identify periods where Bitcoin's returns deviate significantly from the expected power law trend.
Make informed trading decisions based on the likelihood of mean reversion to the theoretical trend.
Understand the long-term diminishing returns trend and adjust investment strategies accordingly.
Conclusion
This TradingView indicator leverages the power law to provide a detailed and theoretically grounded analysis of Bitcoin's price movements. By comparing real returns with theoretical predictions, the indicator offers valuable insights into market behavior and highlights significant deviations. The use of color-coded thresholds further enhances the utility of the indicator, making it an essential tool for traders and analysts seeking to understand and capitalize on Bitcoin's price dynamics
Momentum & Squeeze Oscillator [UAlgo]The Momentum & Squeeze Oscillator is a technical analysis tool designed to help traders identify shifts in market momentum and potential squeeze conditions. This oscillator combines multiple timeframes and periods to provide a detailed view of market dynamics. It enhances the decision-making process for both short-term and long-term traders by visualizing momentum with customizable colors and alerts.
🔶 Key Features
Custom Timeframe Selection: Allows users to select a custom timeframe for oscillator calculations, providing flexibility in analyzing different market periods.
Recalculation Option: Enables or disables the recalculation of the indicator, offering more control over real-time data processing.
Squeeze Background Visualization: Highlights potential squeeze conditions with a background color, helping traders quickly spot consolidation periods.
Adjustable Squeeze Sensitivity: Users can modify the sensitivity of the squeeze detection, tailoring the indicator to their specific trading style and market conditions.
Bar Coloring Condition: Option to color the price bars based on momentum conditions, enhancing the visual representation of market trends.
Threshold Bands: Option to fill threshold bands for a clearer visualization of overbought and oversold levels.
Reference Lines: Display reference lines for overbought, oversold, and mid-levels, aiding in quick assessment of momentum extremes.
Multiple Output Modes: Offers different output visualization modes, including:
ALL: Displays all calculated momentum values (fast, medium, slow).
AVG: Shows the average momentum, providing a consolidated view.
STD: Displays the standard deviation of momentum, useful for understanding volatility.
Alerts: Configurable alerts for key momentum events such as crossovers and squeeze conditions, keeping traders informed of important market changes.
🔶 Usage
The Momentum & Squeeze Oscillator can be used for various trading purposes:
Trend Identification: Use the oscillator to determine the direction and strength of market trends. By analyzing the average, fast, medium, and slow momentum lines, traders can gain insights into short-term and long-term market movements.
Squeeze Detection: The indicator highlights periods of low volatility (squeeze conditions) which often precede significant price movements. Traders can use this information to anticipate and prepare for potential breakouts.
Overbought/Oversold Conditions: The oscillator helps identify overbought and oversold conditions, indicating potential reversal points. This is particularly useful for timing entry and exit points in the market.
Momentum Shifts: By monitoring the crossover of momentum lines with key levels (e.g., the 50 level), traders can spot shifts in market momentum, allowing them to adjust their positions accordingly.
🔶 Disclaimer:
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Uptrick: MACD Slope Buy/Sell SignalsThe "Uptrick: MACD Slope Buy/Sell Signals" indicator is an advanced technical analysis tool meticulously crafted to provide traders with precise buy and sell signals derived from the slope changes of the Moving Average Convergence Divergence (MACD) signal line. This indicator integrates user-defined parameters for the MACD calculation, including the fast length, slow length, and signal smoothing period. These parameters allow traders to customize the indicator according to their specific trading strategies and timeframes, ensuring adaptability across various market conditions.
The primary function of this indicator is to monitor the slope of the MACD signal line and detect significant shifts that indicate potential changes in market momentum. The indicator calculates the slope by comparing the current value of the signal line to its previous value, and further determines the change in slope to identify acceleration or deceleration in the trend. A buy signal is generated when the slope of the signal line transitions from negative to positive, signaling an upward momentum, while a sell signal is triggered when the slope moves from positive to negative, indicating a downward trend. To enhance signal accuracy, the indicator distinguishes between regular and strong signals. A strong buy signal requires the slope change to be greater than the simple moving average (SMA) of recent slope changes, whereas a strong sell signal necessitates the slope change to be less than the negative SMA of recent slope changes.
A unique feature of this indicator is its dynamic and intuitive visualization. When a strong buy or sell signal is identified, it plots labels ('B' for buy and 'S' for sell) directly on the price chart. These labels are strategically positioned below or above the respective bars to ensure clear visibility and reduce chart clutter. The indicator also includes an option to connect consecutive signals with lines, which enhances the visual tracking of signal sequences and provides a coherent view of the trend's progression. The color intensity of the plotted signals varies based on the absolute value of the slope, offering an immediate visual cue on the strength of the detected trend changes. A steeper slope results in a darker color, signaling a stronger trend.
To facilitate comprehensive analysis, the indicator also plots the MACD and signal lines on the chart, providing traders with a reference to the underlying data that drives the buy and sell signals. These lines are color-coded for easy differentiation: the MACD line is typically blue, and the signal line is orange. This visual aid ensures that traders have a clear understanding of the indicator's basis and can cross-reference the generated signals with the MACD behavior.
The calculation of this indicator is grounded in well-established technical analysis principles. It employs the MACD function to derive the MACD line and signal line based on the user-defined parameters. The slope of the signal line is then computed, followed by the calculation of the slope change. The buy and sell signals are determined by comparing the current and previous slopes, and the strong signals are filtered through an additional layer of slope change analysis relative to its moving average.
The accuracy and reliability of the "Uptrick: MACD Slope Buy/Sell Signals" indicator stem from its thorough and methodical approach to signal generation. By combining user customization, detailed slope analysis, and robust visual elements, this indicator serves as a powerful tool for traders seeking precise entry and exit points in the market. Its ability to adapt to different trading styles and market conditions, coupled with its clear visual cues, makes it a valuable addition to any trader's toolkit, enhancing decision-making and improving trading outcomes.
Uptrick: Bullish/Bearish Signal DetectorDetailed Explanation of the "Uptrick: Bullish/Bearish Signal Detector" Script
The "Uptrick: Bullish/Bearish Signal Detector" script is a sophisticated tool designed for the TradingView platform, leveraging Pine Script version 5. This script is crafted to enhance traders' ability to identify bullish (buy) and bearish (sell) signals directly on their trading charts. By combining the power of the MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index) indicators, this script provides a unique and efficient method for detecting potential trading opportunities. Below is an in-depth exploration of its purpose, features, and functionality.
Purpose
The primary purpose of this script is to assist traders in identifying potential entry and exit points in the market by signaling bullish and bearish conditions. This automated detection helps traders make more informed decisions without the need to manually analyze complex indicators. By overlaying signals directly on the price chart, the script allows for quick visual identification of market trends and reversals.
Uniqueness
What sets this script apart is its dual use of MACD and RSI indicators. While many trading strategies might rely on a single indicator, combining MACD and RSI enhances the reliability of the signals by filtering out false positives. The script not only identifies trends but also adds a layer of confirmation through the RSI, which measures the speed and change of price movements.
Inputs and Features
Customizable Label Appearance:
The script allows users to customize the appearance of the labels that indicate bullish and bearish signals. Users can set their preferred colors for the labels and the text, ensuring that the signals are easily distinguishable and aesthetically pleasing on their charts.
MACD Calculation:
The script calculates the MACD line and signal line using user-defined input values for the fast length, slow length, and signal length. The MACD histogram, which is the difference between the MACD line and the signal line, is used to determine the momentum of the market.
RSI Calculation:
The RSI is calculated using a user-defined input length. The RSI helps in identifying overbought or oversold conditions, which are crucial for confirming the strength of the trend detected by the MACD.
Bullish and Bearish Conditions:
The script defines bullish conditions as those where the MACD histogram is positive and the RSI is above 50. Bearish conditions are defined where the MACD histogram is negative and the RSI is below 50. This combination of conditions ensures that signals are generated based on both momentum and relative strength, reducing the likelihood of false signals.
Label Plotting:
The script plots labels on the chart to indicate bullish and bearish signals. When a bullish condition is met, and the previous signal was not bullish, a "LONG" label is plotted. Similarly, when a bearish condition is met, and the previous signal was not bearish, a "SHORT" label is plotted. This feature helps in clearly marking the points of interest for traders, making it easier to spot potential trades.
Tracking Previous Signals:
To avoid repetitive signals, the script keeps track of the last signal. If the last signal was bullish, it avoids plotting another bullish signal immediately. The same logic applies to bearish signals. This tracking ensures that signals are spaced out and only significant changes in market conditions are highlighted.
How It Works
The script operates in a loop, processing each bar (or candlestick) on the chart as new data comes in. It calculates the MACD and RSI values for each bar and checks if the current conditions meet the criteria for a bullish or bearish signal. If a signal is detected and it is different from the last signal, a label is plotted on the chart at the current bar's price level. This real-time processing allows traders to see the signals as they form, providing timely insights into market movements.
Practical Application
For practical use, a trader would add this script to their TradingView chart. They can customize the input parameters for the MACD and RSI calculations to fit their trading strategy or preferred settings. Once added, the script will automatically analyze the price data and start plotting "LONG" and "SHORT" labels based on the detected signals. Traders can then use these labels to make decisions on entering or exiting trades, adjusting their strategy as necessary based on the signals provided.
Conclusion
The "Uptrick: Bullish/Bearish Signal Detector" script is a powerful tool for any trader looking to leverage technical indicators for better trading decisions. By combining MACD and RSI, it offers a robust method for detecting market trends and potential reversals. The customizable features and real-time signal plotting make it a versatile and user-friendly addition to any trading toolkit. This script not only simplifies the process of technical analysis but also enhances the accuracy of trading signals, thereby potentially increasing the trader's success rate in the market.
Bitcoin Power Law Global Liqudity Model by G. SantostasiIn recent studies, we've observed a notable correlation between Bitcoin's price and global liquidity metrics. This relationship reveals significant insights into Bitcoin's price movements and offers a new perspective on using macroeconomic indicators to understand and predict Bitcoin's market trends.
Our analysis shows that Bitcoin's price exhibits periodic bubbles, which seem closely associated with oscillations in global liquidity. Notably, the overall price path of Bitcoin appears to be a complex function of global liquidity. This relationship is not as simple as the Bitcoin Power Law in time that can be described with a simple equation, Price ∼ time⁶.
Instead, we have developed a polynomial model to describe this complex relationship between liquidity and Bitcoin price. With a 4-degree polynomial (with 5 different parameters needed to fit the data), we can get a decent fit to the data.
The fit is obtained using 500 data points by polynomial regression. The vector coefficients of the polynomial are obtained such that the sum of squared error between the observations and theoretical polynomial model is minimized.
This model needs to be taken with a grain of salt given the warning by famous mathematician Von Neumann: "With four parameters I can fit an elephant, and with five I can make him wiggle his trunk." discussing a model created by Italian Physicist Fermi. By this he meant that the Fermi simulations relied on too many input parameters, presupposing an overfitting phenomenon.
We can still gain some insights into the relationship between Global Liquidity and the price evolution of Bitcoin using this complex model.
When the price of Bitcoin is plotted against our global liquidity index, we observe a polynomial relationship. This model allows us to see when Bitcoin's price deviates significantly from the predicted value based on global liquidity:
Above the Model: When Bitcoin's price is above the polynomial fit, it indicates a potential lack of sufficient liquidity to support the current price level, suggesting a likely correction.
Below the Model: Conversely, when the price is below the fit, it implies that liquidity might be higher than what is reflected in the price, indicating potential upward movement.
Our global liquidity index comprises several key macroeconomic metrics from major financial institutions worldwide. Here are some of the major components:
RRP (Reverse Repurchase Agreements): This metric indicates the level of liquidity in the financial system through temporary sales of securities with an agreement to repurchase them.
FED (Federal Reserve System): Represents the balance sheet of the US central bank, reflecting its monetary policy actions.
TGA (Treasury General Account): Reflects the US Treasury’s cash balance, impacting the liquidity in the banking system.
PBC (People's Bank of China): Shows the monetary policy actions and liquidity management by China’s central bank.
ECB (European Central Bank): Represents the balance sheet and liquidity management actions of the Eurozone's central bank.
BOJ (Bank of Japan): Reflects Japan's central bank's monetary policy and liquidity measures.
Other Central Banks: Includes metrics from various other central banks like the Bank of England, Bank of Canada, Reserve Bank of Australia, etc.
M2 Money Supply: This includes money supply metrics from various countries like the USA, Europe, China, Japan, and other significant economies.
These components collectively provide a comprehensive view of global liquidity, which is crucial for understanding its impact on Bitcoin's price.
Using the polynomial model and the author's Bitcoin power law model we can create 2 oscillators, one that shows deviations from the trend (normalized to the price to make the peaks more uniform) and the other showing deviations of the polynomial liquidity model from the power law trend.
The oscillators show the difference between the price and the power law model relative to the price, Orange Line. The Blue Line is instead the difference between the Global Liquidity Model of the price and the power law model relative to the model itself. The two oscillators can be overlayed to show their differences and similarities.
Analysis: In addition to similar observations from the discussion above we can see that most Bitcoin bottoms are not directly associated with bottoms in the liquidity model indicating a different mechanism at play that determines Bitcoin bottoms (probably due to miners' capitulation).
Using the new force_overlay function we plot the polynomial liquidity model directly over the Bitcoin price chart while we display the 2 oscillators in a separate panel.
Six PillarsGeneral Overview
The "Six Pillars" indicator is a comprehensive trading tool that combines six different technical analysis methods to provide a holistic view of market conditions.
These six pillars are:
Trend
Momentum
Directional Movement (DM)
Stochastic
Fractal
On-Balance Volume (OBV)
The indicator calculates the state of each pillar and presents them in an easy-to-read table format. It also compares the current timeframe with a user-defined comparison timeframe to offer a multi-timeframe analysis.
A key feature of this indicator is the Confluence Strength meter. This unique metric quantifies the overall agreement between the six pillars across both timeframes, providing a score out of 100. A higher score indicates stronger agreement among the pillars, suggesting a more reliable trading signal.
I also included a visual cue in the form of candle coloring. When all six pillars agree on a bullish or bearish direction, the candle is colored green or red, respectively. This feature allows traders to quickly identify potential high-probability trade setups.
The Six Pillars indicator is designed to work across multiple timeframes, offering a comparison between the current timeframe and a user-defined comparison timeframe. This multi-timeframe analysis provides traders with a more comprehensive understanding of market dynamics.
Origin and Inspiration
The Six Pillars indicator was inspired by the work of Dr. Barry Burns, author of "Trend Trading for Dummies" and his concept of "5 energies." (Trend, Momentum, Cycle, Support/Resistance, Scale) I was intrigued by Dr. Burns' approach to analyzing market dynamics and decided to put my own twist upon his ideas.
Comparing the Six Pillars to Dr. Burns' 5 energies, you'll notice I kept Trend and Momentum, but I swapped out Cycle, Support/Resistance, and Scale for Directional Movement, Stochastic, Fractal, and On-Balance Volume. These changes give you a more dynamic view of market strength, potential reversals, and volume confirmation all in one package.
What Makes This Indicator Unique
The standout feature of the Six Pillars indicator is its Confluence Strength meter. This feature calculates the overall agreement between the six pillars, providing traders with a clear, numerical representation of signal strength.
The strength is calculated by considering the state of each pillar in both the current and comparison timeframes, resulting in a score out of 100.
Here's how it calculates the strength:
It considers the state of each pillar in both the current timeframe and the comparison timeframe.
For each pillar, the absolute value of its state is taken. This means that both strongly bullish (2) and strongly bearish (-2) states contribute equally to the strength.
The absolute values for all six pillars are summed up for both timeframes, resulting in two sums: current_sum and alternate_sum.
These sums are then added together to get a total_sum.
The total_sum is divided by 24 (the maximum possible sum if all pillars were at their strongest states in both timeframes) and multiplied by 100 to get a percentage.
The result is rounded to the nearest integer and capped at a minimum of 1.
This calculation method ensures that the Confluence Strength meter takes into account not only the current timeframe but also the comparison timeframe, providing a more robust measure of overall market sentiment. The resulting score, ranging from 1 to 100, gives traders a clear and intuitive measure of how strongly the pillars agree, with higher scores indicating stronger potential signals.
This approach to measuring signal strength is unique in that it doesn't just rely on a single aspect of price action or volume. Instead, it takes into account multiple factors, providing a more robust and reliable indication of potential market moves. The higher the Confluence Strength score, the more confident traders can be in the signal.
The Confluence Strength meter helps traders in several ways:
It provides a quick and easy way to gauge the overall market sentiment.
It helps prioritize potential trades by identifying the strongest signals.
It can be used as a filter to avoid weaker setups and focus on high-probability trades.
It offers an additional layer of confirmation for other trading strategies or indicators.
By combining the Six Pillars analysis with the Confluence Strength meter, I've created a powerful tool that not only identifies potential trading opportunities but also quantifies their strength, giving traders a significant edge in their decision-making process.
How the Pillars Work (What Determines Bullish or Bearish)
While developing this indicator, I selected and configured six key components that work together to provide a comprehensive view of market conditions. Each pillar is set up to complement the others, creating a synergistic effect that offers traders a more nuanced understanding of price action and volume.
Trend Pillar: Based on two Exponential Moving Averages (EMAs) - a fast EMA (8 period) and a slow EMA (21 period). It determines the trend by comparing these EMAs, with stronger trends indicated when the fast EMA is significantly above or below the slow EMA.
Directional Movement (DM) Pillar: Utilizes the Average Directional Index (ADX) with a default period of 14. It measures trend strength, with values above 25 indicating a strong trend. It also considers the Positive and Negative Directional Indicators (DI+ and DI-) to determine trend direction.
Momentum Pillar: Uses the Moving Average Convergence Divergence (MACD) with customizable fast (12), slow (26), and signal (9) lengths. It compares the MACD line to the signal line to determine momentum strength and direction.
Stochastic Pillar: Employs the Stochastic oscillator with a default period of 13. It identifies overbought conditions (above 80) and oversold conditions (below 20), with intermediate zones between 60-80 and 20-40.
Fractal Pillar: Uses Williams' Fractal indicator with a default period of 3. It identifies potential reversal points by looking for specific high and low patterns over the given period.
On-Balance Volume (OBV) Pillar: Incorporates On-Balance Volume with three EMAs - short (3), medium (13), and long (21) periods. It assesses volume trends by comparing these EMAs.
Each pillar outputs a state ranging from -2 (strongly bearish) to 2 (strongly bullish), with 0 indicating a neutral state. This standardized output allows for easy comparison and aggregation of signals across all pillars.
Users can customize various parameters for each pillar, allowing them to fine-tune the indicator to their specific trading style and market conditions. The multi-timeframe comparison feature also allows users to compare pillar states between the current timeframe and a user-defined comparison timeframe, providing additional context for decision-making.
Design
From a design standpoint, I've put considerable effort into making the Six Pillars indicator visually appealing and user-friendly. The clean and minimalistic design is a key feature that sets this indicator apart.
I've implemented a sleek table layout that displays all the essential information in a compact and organized manner. The use of a dark background (#030712) for the table creates a sleek look that's easy on the eyes, especially during extended trading sessions.
The overall design philosophy focuses on presenting complex information in a simple, intuitive format, allowing traders to make informed decisions quickly and efficiently.
The color scheme is carefully chosen to provide clear visual cues:
White text for headers ensures readability
Green (#22C55E) for bullish signals
Blue (#3B82F6) for neutral states
Red (#EF4444) for bearish signals
This color coding extends to the candle coloring, making it easy to spot when all pillars agree on a bullish or bearish outlook.
I've also incorporated intuitive symbols (↑↑, ↑, →, ↓, ↓↓) to represent the different states of each pillar, allowing for quick interpretation at a glance.
The table layout is thoughtfully organized, with clear sections for the current and comparison timeframes. The Confluence Strength meter is prominently displayed, providing traders with an immediate sense of signal strength.
To enhance usability, I've added tooltips to various elements, offering additional information and explanations when users hover over different parts of the indicator.
How to Use This Indicator
The Six Pillars indicator is a versatile tool that can be used for various trading strategies. Here are some general usage guidelines and specific scenarios:
General Usage Guidelines:
Pay attention to the Confluence Strength meter. Higher values indicate stronger agreement among the pillars and potentially more reliable signals.
Use the multi-timeframe comparison to confirm signals across different time horizons.
Look for alignment between the current timeframe and comparison timeframe pillars for stronger signals.
One of the strengths of this indicator is it can let you know when markets are sideways – so in general you can know to avoid entering when the Confluence Strength is low, indicating disagreement among the pillars.
Customization Options
The Six Pillars indicator offers a wide range of customization options, allowing traders to tailor the tool to their specific needs and trading style. Here are the key customizable elements:
Comparison Timeframe:
Users can select any timeframe for comparison with the current timeframe, providing flexibility in multi-timeframe analysis.
Trend Pillar:
Fast EMA Period: Adjustable for quicker or slower trend identification
Slow EMA Period: Can be modified to capture longer-term trends
Momentum Pillar:
MACD Fast Length
MACD Slow Length
MACD Signal Length These can be adjusted to fine-tune momentum sensitivity
DM Pillar:
ADX Period: Customizable to change the lookback period for trend strength measurement
ADX Threshold: Adjustable to define what constitutes a strong trend
Stochastic Pillar:
Stochastic Period: Can be modified to change the sensitivity of overbought/oversold readings
Fractal Pillar:
Fractal Period: Adjustable to identify potential reversal points over different timeframes
OBV Pillar:
Short OBV EMA
Medium OBV EMA
Long OBV EMA These periods can be customized to analyze volume trends over different timeframes
These customization options allow traders to experiment with different settings to find the optimal configuration for their trading strategy and market conditions. The flexibility of the Six Pillars indicator makes it adaptable to various trading styles and market environments.
Fisher Transform on RSIOverview
The Fisher Transform on RSI indicator combines the Relative Strength Index (RSI) with the Fisher Transform to offer a refined tool for identifying market turning points and trends. By applying the Fisher Transform to the RSI, this indicator converts RSI values into a Gaussian normal distribution, enhancing the precision of detecting overbought and oversold conditions. This method provides a clearer and more accurate identification of potential market reversals than the standard RSI.
Key/Unique Features
Fisher Transform Applied to RSI : Transforms RSI values into a Gaussian normal distribution, improving the detection of overbought and oversold conditions.
Smoothing : Applies additional smoothing to the Fisher Transform, reducing noise and providing clearer signals.
Signal Line : Includes a signal line to identify crossover points, indicating potential buy or sell signals.
Custom Alerts : Built-in alert conditions for bullish and bearish crossovers, keeping traders informed of significant market movements.
Visual Enhancements : Background color changes based on crossover conditions, offering immediate visual cues for potential trading opportunities.
How It Works
RSI Calculation : The indicator calculates the Relative Strength Index (RSI) based on the selected source and period length.
Normalization : The RSI values are normalized to fit within a range of -1 to 1, which is essential for the Fisher Transform.
Fisher Transform : The normalized RSI values undergo the Fisher Transform, converting them into a Gaussian normal distribution.
Smoothing : The transformed values are smoothed using a simple moving average to reduce noise and provide more reliable signals.
Signal Line : A signal line, which is a simple moving average of the smoothed Fisher Transform, is plotted to identify crossover points.
Alerts and Visuals : Custom alert conditions are set for bullish and bearish crossovers, and the background color changes to indicate these conditions.
Usage Instructions
Trend Identification : Use the Fisher Transform on RSI to identify overbought and oversold conditions with enhanced precision, aiding in spotting potential trend reversals.
Trade Signals : Monitor the crossovers between the smoothed Fisher Transform and the signal line. A bullish crossover suggests a potential buying opportunity, while a bearish crossover indicates a potential selling opportunity.
Alerts : Set custom alerts based on the built-in conditions to receive notifications when important crossover events occur, ensuring you never miss a trading opportunity.
Visual Cues : Utilize the background color changes to quickly identify bullish (green) and bearish (red) conditions, providing immediate visual feedback on market sentiment.
Complementary Analysis : Combine this indicator with other technical analysis tools and indicators to enhance your overall trading strategy and make more informed decisions.
Daily Range + Asia Liquidity + FVG + silver Bullet sessionIndicator Description :
This indicator combines several trading concepts to provide an overall view of intraday selling opportunities. It includes the following elements:
Daily Range:
Measures the daily price range between the highest and lowest points of the day.
Helps understand daily volatility and identify potential support and resistance levels.
Asia Liquidity:
Analyzes price movements and volumes during the Asian session (usually from 00:00 to 08:00 GMT).
Identifies liquidity levels where the price has reacted during this period, providing clues on where significant orders are concentrated.
FVG (Fair Value Gap):
A trading concept that identifies areas where the price has moved quickly, creating a "gap" or empty space on the chart.
These areas are often revisited by the price, which can provide potential entry or exit points.
Silver Bullet Session:
Refers to a specific period of the day where a particular strategy or setup is expected to occur. For example, this could be a period where price movements are historically more predictable or volatile.
This session particularly targets price movements that attract sellers.
Using the Indicator
Identifying Selling Levels:
Combine the daily range levels with the liquidity zones identified during the Asian session to spot levels where sellers might be interested.
Use the fair value gaps (FVG) to identify areas where the price might return, providing entry or exit points for selling positions.
Silver Bullet Session:
Focus on this period to observe price movements and reactions to the levels identified earlier.
Look for selling signals (e.g., bearish reversal candlesticks or continuation patterns) during this session to maximize selling opportunities.
Objective :
The objective of this indicator is to provide a systematic approach to identifying selling opportunities based on multiple technical and temporal elements. By combining daily volatility, liquidity levels, value gaps, and specific trading periods, this indicator helps traders pinpoint potential selling points with greater accuracy.
Biquad MACDThis indicator reimagines the traditional MACD by incorporating a biquad band pass filter, offering a refined approach to identifying momentum and trend changes in price data. The standard MACD is essentially a band pass filter, but often it lacks precision. The biquad band pass filter addresses this limitation by providing a more focused frequency range, enhancing the quality of signals.
The MACD Length parameter determines the length of the band pass filter, influencing the frequency range that is isolated. Adjusting this length allows you to focus on different parts of the price movement spectrum.
The Bandwidth (BW) setting controls the width of the frequency band in octaves. It affects the smoothness of the MACD line. A larger bandwidth results in less smooth output, capturing a broader range of frequencies, while a smaller bandwidth focuses on a narrower range, providing a smoother signal.
The Signal Length parameter sets the period for the exponential moving average of the MACD line, which acts as a signal line to identify potential buy and sell points.
Key Features of the Biquad MACD
The MACD is a well-known momentum indicator used to identify changes in the strength, direction, momentum, and duration of a trend in a stock's price. By applying a biquad band pass filter, this version of the MACD provides a more refined and accurate representation of price movements.
The biquad filter offers smooth response and minimal phase distortion, making it ideal for technical analysis. The customizable MACD length and bandwidth allow for flexible adaptation to different trading strategies and market conditions. The signal line smooths the MACD values, providing clear crossover points to indicate potential market entry and exit signals.
The histogram visually represents the difference between the MACD and the signal line, changing colors to indicate rising or falling momentum, which helps in quickly identifying trend changes.
By incorporating the Biquad MACD into your trading toolkit, you can enhance your chart analysis with clearer insights into momentum and trend changes, leading to more informed trading decisions.
Coinbase Premium ($) Absolute Dollar Amount # Coinbase Dollar Premium Indicator
## Description
The Coinbase Dollar Premium Indicator is a powerful tool for cryptocurrency traders and analysts, providing real-time insight into the price differences between major exchanges. This indicator calculates and visualizes the dollar amount premium or discount of Bitcoin on Coinbase compared to the average price on Binance and Kraken.
## Key Features
1. **Dollar Value**: Unlike percentage-based indicators, this tool shows the actual dollar amount difference, giving traders a clear understanding of the magnitude of price disparities.
2. **Multi-Exchange Comparison**: By averaging the prices from Binance and Kraken, the indicator provides a more robust baseline for comparison, reducing the impact of single-exchange anomalies.
3. **Clear Visual Representation**: The indicator uses a color-coded histogram for easy interpretation:
- Green bars indicate a premium on Coinbase (Coinbase price is higher)
- Red bars indicate a discount on Coinbase (Coinbase price is lower)
- The height of each bar represents the dollar amount of the premium or discount
4. **Zero Line Reference**: A horizontal line at zero helps quickly distinguish between premium and discount states.
## Use Cases
- **Arbitrage Opportunities**: Identify potential arbitrage opportunities between exchanges.
- **Market Sentiment**: Gauge institutional and retail investor sentiment, as Coinbase is often associated with US institutional activity.
- **Price Prediction**: Use divergences between exchanges as a potential indicator of short-term price movements.
- **Risk Management**: Understand the pricing landscape across major exchanges to make more informed trading decisions.
This indicator is valuable for both short-term traders looking for quick opportunities and long-term investors wanting to understand market dynamics. By providing a clear, dollar-based view of inter-exchange price differences, the Coinbase Dollar Premium Indicator offers unique insights into the cryptocurrency market's microstructure.
*Note: This indicator is for informational purposes only and should not be considered financial advice. Always conduct your own research and consider your risk tolerance before trading.*
20-day High BreakoutOverview:
The 20-day High Breakout Indicator is a very simple yet powerful tool designed for traders seeking to capitalize on significant price movements in the stock market. This indicator identifies potential buy and sell signals based on a stock's 20-day high breakout levels, making it an essential addition to your trading strategy.
Key Features:
Swing Period Input: Customize the swing period to your preferred number of days, with a default of 20 days, allowing flexibility based on your trading style.
Trailing Stop Level: Automatically calculates the trailing stop level based on the highest high and lowest low within the defined swing period, helping to manage risk and lock in profits.
Buy and Sell Signals: Generates clear buy signals when the price crosses above the trailing stop level and sell signals when the price crosses below, enabling timely entries and exits.
Visual Indicators: Plots buy signals as green upward triangles below the bars and sell signals as red downward triangles above the bars, providing easy-to-interpret visual cues directly on the chart.
How It Works:
Resistance and Support Levels: The indicator calculates the highest high (resistance) and lowest low (support) over the defined swing period.
Swing Direction: It determines the market direction by comparing the current closing price to the previous resistance and support levels.
Trailing Stop Calculation: Depending on the market direction, the trailing stop level is set to either the support or resistance level.
Signal Generation: Buy and sell signals are generated based on the crossover of the closing price and the trailing stop level, filtered to ensure only valid signals are displayed.
Visual Representation: The trailing stop level is plotted as a line, and buy/sell signals are marked with respective shapes for easy identification.
Usage:
Trend Following: Ideal for traders looking to follow trends and catch significant breakouts in the stock price.
Risk Management: Helps in managing risk by providing a trailing stop level that adjusts with market movements.
Visual Clarity: The clear visual signals make it easy for traders to interpret and act upon the indicator's signals.
Add the 20-day High Breakout Indicator to your TradingView charts to enhance your trading strategy and gain an edge in identifying profitable trading opportunities.
Filtered MACD with Backtest [UAlgo]The "Filtered MACD with Backtest " indicator is an advanced trading tool designed for the TradingView platform. It combines the Moving Average Convergence Divergence (MACD) with additional filters such as Moving Average (MA) and Average Directional Index (ADX) to enhance trading signals. This indicator aims to provide more reliable entry and exit points by filtering out noise and confirming trends. Additionally, it includes a comprehensive backtesting module to simulate trading strategies and assess their performance based on historical data. The visual backtest module allows traders to see potential trades directly on the chart, making it easier to evaluate the effectiveness of the strategy.
🔶 Customizable Parameters :
Price Source Selection: Users can choose their preferred price source for calculations, providing flexibility in analysis.
Filter Parameters:
MA Filter: Option to use a Moving Average filter with types such as EMA, SMA, WMA, RMA, and VWMA, and a customizable length.
ADX Filter: Option to use an ADX filter with adjustable length and threshold to determine trend strength.
MACD Parameters: Customizable fast length, slow length, and signal smoothing for the MACD indicator.
Backtest Module:
Entry Type: Supports "Buy and Sell", "Buy", and "Sell" strategies.
Stop Loss Types: Choose from ATR-based, fixed point, or X bar high/low stop loss methods.
Reward to Risk Ratio: Set the desired take profit level relative to the stop loss.
Backtest Visuals: Display entry, stop loss, and take profit levels directly on the chart with
colored backgrounds.
Alerts: Configurable alerts for buy and sell signals.
🔶 Filtered MACD : Understanding How Filters Work with ADX and MA
ADX Filter:
The Average Directional Index (ADX) measures the strength of a trend. The script calculates ADX using the user-defined length and applies a threshold value.
Trading Signals with ADX Filter:
Buy Signal: A regular MACD buy signal (crossover of MACD line above the signal line) is only considered valid if the ADX is above the set threshold. This suggests a stronger uptrend to potentially capitalize on.
Sell Signal: Conversely, a regular MACD sell signal (crossunder of MACD line below the signal line) is only considered valid if the ADX is above the threshold, indicating a stronger downtrend for potential shorting opportunities.
Benefits: The ADX filter helps avoid whipsaws or false signals that might occur during choppy market conditions with weak trends.
MA Filter:
You can choose from various Moving Average (MA) types (EMA, SMA, WMA, RMA, VWMA) for the filter. The script calculates the chosen MA based on the user-defined length.
Trading Signals with MA Filter:
Buy Signal: A regular MACD buy signal is only considered valid if the closing price is above the MA value. This suggests a potential uptrend confirmed by the price action staying above the moving average.
Sell Signal: Conversely, a regular MACD sell signal is only considered valid if the closing price is below the MA value. This suggests a potential downtrend confirmed by the price action staying below the moving average.
Benefits: The MA filter helps identify potential trend continuation opportunities by ensuring the price aligns with the chosen moving average direction.
Combining Filters:
You can choose to use either the ADX filter, the MA filter, or both depending on your strategy preference. Using both filters adds an extra layer of confirmation for your signals.
🔶 Backtesting Module
The backtesting module in this script allows you to visually assess how the filtered MACD strategy would have performed on historical data. Here's a deeper dive into its features:
Backtesting Type: You can choose to backtest for buy signals only, sell signals only, or both. This allows you to analyze the strategy's effectiveness in different market conditions.
Stop-Loss Types: You can define how stop-loss orders are placed:
ATR (Average True Range): This uses a volatility measure (ATR) multiplied by a user-defined factor to set the stop-loss level.
Fixed Point: This allows you to specify a fixed dollar amount or percentage value as the stop-loss.
X bar High/Low: This sets the stop-loss at a certain number of bars (defined by the user) above/below the bar's high (for long positions) or low (for short positions).
Reward-to-Risk Ratio: Define the desired ratio between your potential profit and potential loss on each trade. The backtesting module will calculate take-profit levels based on this ratio and the stop-loss placement.
🔶 Disclaimer:
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Double MACD With Crossover AlertDouble MACD With Crossover Alert
Double MACD with Crossover Alert is based on 2 MACD Histograms with different length settings on top of each other. The first MACD histogram is plotted as a line while the second MACD is plotted as columns. The default MA type for MACD1 is ZEMA or Zero Lag Moving Average.
What is MACD?
Moving average convergence/divergence (MACD) is a technical indicator to help investors identify price trends, measure trend momentum, and identify market entry points for buying or selling. Moving average convergence/divergence (MACD) is a trend-following momentum indicator that shows the relationship between two exponential moving averages (EMAs) of a security’s price. MACD was developed in the 1970s by Gerald Appel.
What is Zero Lag?
Zero lag is a technical analysis tool that aims to reduce or eliminate lag in trend-following indicators that average price over time. Zero lag indicators are designed to provide signals with little or no delay, allowing traders to enter and exit trades quickly and potentially profit from small price movements. Zero-Lag Exponential Moving Average (ZEMA), uses a double-smoothing process to provide a smoother and more responsive moving average. ZEMA can help traders identify trends more quickly, adapt to changing market conditions, and make more informed decisions.
How To Use?
When the MACD1 crosses above the zero line and the MACD2 histogram color is dark green (up trend), then a buy alert (blue triangle) is plotted.
When the MACD1 crosses below the zero line and the MACD2 histogram color is dark red (down trend), then a sell alert (yellow triangle) is plotted.
All the MACD1 and MACD2 lengths are configurable. This indicator can be combined with other technical indicators to verify the idea behind this theory.
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Disclaimer
The information contained in this indicator does not constitute any financial advice or a solicitation to buy or sell any securities of any type. My scripts/indicators/ideas are for everyone to use and verify with other technical indicators.
Uptrick: Supply and Demand Zones with RSI, MACD and TP signalsUptrick: Supply and Demand Zones with RSI, MACD Signals and TP Signals
This script is a comprehensive technical analysis indicator for the TradingView platform, combining multiple strategies and indicators to assist traders in making informed decisions. The script incorporates supply and demand zones, Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD) signals, and trend and take profit signals. Below is a detailed explanation of each feature, its purpose, how to use it, and how it differs from other indicators.
Key Features
Supply and Demand Zones:
Purpose: Identify key price levels where buying (demand) or selling (supply) pressure has historically been strong.
Inputs:
supplySwingLength (Default: 20): Determines the number of bars to consider for identifying swing highs for supply zones.
demandSwingLength (Default: 20): Determines the number of bars to consider for identifying swing lows for demand zones.
zoneExtensionBars (Default: 50): Specifies how many bars to extend the zones to the right for visibility.
Usage: The indicator highlights these zones on the chart, making it easier for traders to spot potential reversal points.
Relative Strength Index (RSI) and Moving Average of RSI:
Purpose: RSI measures the speed and change of price movements, helping to identify overbought or oversold conditions. The moving average of RSI smoothens the RSI values to reduce noise.
Inputs:
lengthrsi (Default: 14): The period for calculating RSI.
lengthrsima (Default: 8): The period for calculating the moving average of RSI.
Usage: Buy and sell signals are generated when the RSI crosses above or below the 50 level, respectively, indicating potential entry or exit points.
MACD (Moving Average Convergence Divergence):
Purpose: MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.
Inputs:
macdFastLength (Default: 12): The short period for the fast EMA.
macdSlowLength (Default: 26): The long period for the slow EMA.
macdSignalSmoothing (Default: 9): The period for the signal line.
Usage: Buy and sell signals are generated when the MACD line crosses above or below the signal line, respectively. This is an optional feature that can be enabled or disabled.
Signal Type Selection:
Purpose: Allows the trader to choose between RSI signals or supply/demand zone signals.
Inputs:
signalType (Default: "RSI"): Options are "RSI" or "Supply/Demand".
Usage: The chosen signal type determines the logic for plotting buy and sell signals on the chart.
Take Profit Signals:
Purpose: Provide take profit signals based on statistical volatility.
Inputs:
TheLength (Default: 20): The period for calculating the basis SMA and standard deviation.
tpmult (Default: 2.5): The multiplier for the standard deviation to set the take profit levels.
Usage: Generates buy and sell take profit signals when the price crosses over or under the calculated levels.
Detailed Explanation
Supply and Demand Zones Logic:
Swing High and Swing Low:
Functions isSwingHigh and isSwingLow determine whether the current high or low is the highest or lowest within a specified length, indicating potential supply or demand zones.
Zone Visualization:
When a new swing high or low is detected, a box is drawn from the identified bar and extended to the right for visibility. This helps traders visually identify these critical zones.
The boxes are updated dynamically as new swings are detected, ensuring the most relevant zones are always displayed.
RSI and MACD Signals:
RSI Calculation:
The script calculates the RSI using the specified period and then smooths it using an exponential moving average.
Buy and sell signals are generated based on the RSI's crossover with the 50 level.
MACD Calculation:
The MACD line and signal line are calculated using the specified periods.
Buy and sell signals are generated based on crossovers between the MACD line and the signal line.
These signals can be enabled or disabled based on user preference.
Trend Detection and Take Profit Signals:
Trend Detection:
The script calculates the basis (SMA) and upper and lower bands based on the standard deviation.
It determines the trend strength and direction by comparing the current price to these bands.
Take Profit Levels:
Take profit levels are set by multiplying the standard deviation by a user-defined multiplier.
Signals are plotted when the price crosses these take profit levels, indicating potential exit points.
Differences from Other Indicators
Combination of Multiple Indicators:
This script integrates supply and demand zones with RSI and MACD signals, offering a comprehensive tool for technical analysis.
Most other indicators focus on a single strategy, whereas this script provides a holistic view by combining multiple strategies.
Customizable Inputs:
The script offers a high degree of customization, allowing traders to adjust various parameters to suit their trading style and preferences.
Many indicators have fixed settings, limiting their adaptability to different market conditions.
Dynamic Zone Visualization:
The supply and demand zones are dynamically updated, providing real-time insights into key price levels.
This feature is not commonly found in other indicators, which may rely on static levels or less visually intuitive methods.
Usage Guide
Setup:
Add the script to your TradingView chart.
Adjust the input parameters as needed to match your trading strategy.
Interpreting Signals:
Supply and Demand Zones: Look for potential reversal points at these zones.
RSI and MACD Signals: Use these signals to identify potential entry and exit points.
Take Profit Signals: Set take profit levels based on the calculated signals to manage risk and lock in profits.
Combining Signals:
Combine signals from different features to increase the reliability of your trading decisions.
For example, a buy signal from RSI combined with a price approaching a demand zone may indicate a stronger buy opportunity.
Inputs Explained
Supply and Demand Zones:
supplySwingLength: The length of bars to consider for identifying swing highs.
demandSwingLength: The length of bars to consider for identifying swing lows.
zoneExtensionBars: The number of bars to extend the zones to the right.
RSI:
lengthrsi: The period for calculating the RSI.
lengthrsima: The period for calculating the EMA of the RSI.
MACD:
macdFastLength: The short period for the fast EMA.
macdSlowLength: The long period for the slow EMA.
macdSignalSmoothing: The period for the signal line.
Signal Type:
signalType: Choose between "RSI" and "Supply/Demand" signals.
Take Profit:
TheLength: The period for calculating the basis SMA and standard deviation.
tpmult: The multiplier for the standard deviation to set the take profit levels.
Conclusion
The "Uptrick: Supply and Demand Zones with RSI, MACD Signals and TP signals" script is a powerful and versatile indicator that combines multiple strategies to provide traders with a comprehensive analysis tool. Its detailed visualization of supply and demand zones, coupled with RSI and MACD signals, and trend-based take profit signals, makes it an invaluable tool for both novice and experienced traders. By understanding and utilizing its features effectively, traders can make more informed and confident trading decisions.
Flush Percent RangeFans of Woodies CCI may recognize the approach to this one. This is my attempt at using the same methods but for taking the highs and lows into account without the standard deviation of the CCI. The smoothness of other oscillators may not be ideal however the Williams Percent Range is a fast stochastic that also operates within a channel. This provides an alternative yet still complex view for the virtuoso. A unique feature is total utilization of the weighted moving average, from the standard to the more complex. A fun fact is the Hull Moving Average is actually calculated using weighted moving averages.
How to use:
The base length is for accuracy, the fast length is for catching all the moves(even the wrong ones sometimes.)
The bars back option will not flip the histogram/base trend to its bullish/bearish alternative until the base plot remains on the latter half of the oscillator for a certain number of bars. This can be set to zero if desired.
The factor controls the chop on the various levels. A higher number will increase it.
The oscillator levels are measuring slope, price relative to the average, and a summation of percent changes between the two. Both the baseline/histogram and the levels have color coding for bullishness, bearishness, and indecision(depending on the factor.) The fast line matches the indecision color by default. This is all customizable.
There are many potential ways to trade with this indicator. From hooks back toward the trend and range line crossovers to divergence and reversals. It's important to note the current performance of the oscillator levels. Time cycles may come in handy along with other forecasting tools.
Lastly, there are optional linear regression lines plotted on the chart. They're synchronized to the lengths in the oscillator. This is an additional visual aid to provide context to the direction of the channel.
Overall the Flush Percent Range is for analyzing multiple regression models within a single price channel. No smoothing, fast averages, and specified timeframes of highs/lows. Credit to Larry Williams for the original calculation and Ken Woods for design/methodology inspiration.
