Adaptive Supply and Demand [EdgeTerminal]Adaptive Supply and Demand is a dynamic supply and demand indicator with a few unique twists. It considers volume pressure, volatility-based adjustments and multi-time frame momentum for confidence scoring (multi-step confirmation) to generate dynamic lines that adjust based on the market and also to generate dynamic support/resistance levels for the supply and demand lines.
The dynamic support and resistance lines shown gives you a better situational awareness of the current state of the market and add more context to why the market is moving into a certain direction.
> Trading Scenarios
When the confidence score is over 80%, strong volume pressure in trend direction (up or down), volatility is low and momentum is aligned across timeframes, there is an indication of a strong upward or downward trend.
When the supply and demand line crossover, the confidence score is over 75% and the volume pressure is shifting, this can be an indicator of trend reversal. Use tight initial stops, scale into position as trend develops, monitor the volume pressure for continuation and wait for confidence confirmation.
When the confiance score is below 60%, the volume pressure is choppy, volatility is high, you want to avoid trading or reduce position size, wait for confidence improvements, use support and resistance for entries/exits and use tighter stops due to market conditions. This is an indication of a ranging market.
Another scenario is when there is a sudden volume pressure increase, and a raising confidence score, the volatility is expanding and the bar momentum is aligning the volatility direction. This can indicate a breakout scenario.
> How it Works
1. Volume Pressure Analysis
Volume Pressure Analysis is a key component that measures the true buying and selling force in the market. Here's a detailed breakdown. The idea is to standardize volume to prevent large spikes from skewing results.
The indicator employs an adaptive volume normalization technique to detect genuine buying and selling pressure.
It takes current volume and divides it by average volume.
If normVol > 1: Current volume is above average
If normVol < 1: Current volume is below average
An example if this would be If current volume is 1500 and average is 1000, normVol = 1.5 (50% above average)
Another component of the volume pressure analysis is the Price Change Calculation sub-module. The purpose of this is to measure price movement relative to recent average.
It works by subtracting the average price from the current price. If the value is positive, price is average and if negative, price is below average.
Finally, the volume pressure is calculated to combine volume and price for true pressure reading.
2. Savitzky-Golay Filtering
SG filtering implements advanced signal smoothing while preserving important trend features. It uses weighted moving average approximation, preserves higher moments of data and reduces noise while maintaining signal integrity.
This results in smoother signal lines, reduced false crossovers and better trend identification. Traditional moving averages tend to lag and smooth out important features. Additionally, simple moving averages can miss critical turning points and regular smoothing can delay signal generation.
SG filtering preserves higher moments such as peaks, valleys and trends, reduces noise while maintaining signal sharpness.
It works by creating a symmetric weighting scheme. This way center points get the highest weights while edge points get the lowest weight.
3. Parkinson's Volatility
Parkinson's Volatility is an advanced volatility measurement formula using high-low range data. It uses high-low range for volatility calculation, incorporates logarithmic returns and annualized the volatility measure.
This results in more accurate volatility measurement, better risk assessment and dynamic signal sensitivity.
4. Multi-timeframe Momentum
This combines signals from each module for each timeframe to calculate momentum across three timeframes. It also applies weighted importance to each timeframe and generates a composite momentum signal.
This results in a more comprehensive trend analysis, reduced timeframe bias and better trend confirmation.
> Indicator Settings
Short-term Period:
Lower values makes it more sensitive, meaning it will generate more signals. Higher values makes it less sensitive, resulting in fewer signals. We recommend a 5 to 15 range for day trading, and 10 to 20 for swing trading
Medium-term Period:
Lower values result in faster trend confirmation and higher values show slower and more reliable confirmation. We recommend a range of 15-25 for day trading and 20-30 for swing trading.
Long-term Period:
Lower values makes it more responsive to trend changes and higher values are better for major trend identification. We recommend a range of 40-60 for day trading and 50-100 for swing trading.
Volume Analysis Window:
Lower values result in more sensitivity to volume changes and higher values result in smoother volume analysis. The optimal range is 15-25 for most trading styles.
Confidence Threshold:
Lower values generate more signals but quality decreases. Higher values generate fewer signals but accuracy increases.The optimal range is 0.65-0.8 for most trading conditions.
Komut dosyalarını "25年黄金价格走势预测" için ara
KEMAD | QuantumResearchQuantumResearch KEMAD Indicator
The QuantumResearch KEMAD Indicator is a sophisticated trend-following and volatility-based tool designed for traders who demand precision in detecting market trends and price reversals. By leveraging advanced techniques implemented in PineScript, this indicator integrates a Kalman filter, an Exponential Moving Average (EMA), and dynamic ATR-based deviation bands to produce clear, actionable trading signals.
1. Overview
The KEMAD Indicator aims to:
Reduce Market Noise: Employ a Kalman filter to smooth price data.
Identify Trends: Use an EMA of the filtered price to define the prevailing market direction.
Set Dynamic Thresholds: Adjust breakout levels with ATR-based deviation bands.
Generate Signals: Provide clear long and short trading signals along with intuitive visual cues.
2. How It Works
A. Kalman Filter Smoothing
Purpose: The Kalman filter refines the selected price source (e.g., close price) by reducing short-term fluctuations, thus offering a clearer view of the underlying price movement.
Customization: Users can adjust key parameters such as:
Process Noise: Controls the filter’s sensitivity to recent changes.
Measurement Noise: Determines how responsive the filter is to incoming price data.
Filter Order: Sets the number of data points considered in the smoothing process.
B. EMA-Based Trend Detection
Primary Trend EMA: A 25-period EMA is applied to the Kalman-filtered price, serving as the core trend indicator.
Signal Mechanism:
Long Signal: Triggered when the price exceeds the EMA plus an ATR-based upper deviation.
Short Signal: Triggered when the price falls below the EMA minus an ATR-based lower deviation.
C. ATR Deviation Bands
ATR Utilization: The Average True Range (ATR) is computed (default length of 21) to assess market volatility.
Dynamic Thresholds:
Upper Deviation: Calculated by adding 1.5× ATR to the EMA (for long signals).
Lower Deviation: Calculated by subtracting 1.1× ATR from the EMA (for short signals).
These bands adapt to current volatility, ensuring that signal thresholds are both dynamic and market-sensitive.
3. Visual Representation
The indicator’s design emphasizes clarity and ease of use:
Color-Coded Bar Signals:
Green Bars: Indicate bullish conditions when a long signal is active.
Red Bars: Indicate bearish conditions when a short signal is active.
Trend Confirmation Line: A 54-period EMA is plotted to further validate trend direction. Its color dynamically changes to reflect the active trend.
Background Fill: The space between a calculated price midpoint (typically the average of high and low) and the EMA is filled, visually emphasizing the prevailing market trend.
4. Customization & Parameters
The KEMAD Indicator is highly configurable, allowing traders to tailor the tool to their specific trading strategies and market conditions:
ATR Settings:
ATR Length: Default is 21; adjusts sensitivity to market volatility.
EMA Settings:
Trend EMA Length: Default is 25; smooths price action for trend detection.
Confirmation EMA Length: Default is 54; aids in confirming the trend.
Kalman Filter Parameters:
Process Noise: Default is 0.01.
Measurement Noise: Default is 3.0.
Filter Order: Default is 5.
Deviation Multipliers:
Long Signal Multiplier: Default is 1.5× ATR.
Short Signal Multiplier: Default is 1.1× ATR.
Appearance: Eight customizable color themes are available to suit individual visual preferences.
5. Trading Applications
The versatility of the KEMAD Indicator makes it suitable for various trading strategies:
Trend Following: It helps identify and ride sustained bullish or bearish trends by filtering out market noise.
Breakout Trading: Detects when prices move beyond the ATR-based deviation bands, signaling potential breakout opportunities.
Reversal Detection: Alerts traders to potential trend reversals when price crosses the dynamically smoothed EMA.
Risk Management: Offers clearly defined entry and exit points, based on volatility-adjusted thresholds, enhancing trade precision and risk control.
6. Final Thoughts
The QuantumResearch KEMAD Indicator represents a unique blend of advanced filtering (via the Kalman filter), robust trend analysis (using EMAs), and dynamic volatility assessment (through ATR deviation bands).
Its PineScript implementation allows for a high degree of customization, making it an invaluable tool for traders looking to reduce noise, accurately detect trends, and manage risk effectively.
Whether used for trend following, breakout strategies, or reversal detection, the KEMAD Indicator is designed to adapt to varying market conditions and trading styles.
Important Disclaimer: Past data does not predict future behavior. This indicator is provided for informational purposes only; no indicator or strategy can guarantee future results. Always perform thorough analysis and use proper risk management before trading.
Market Trend Scanner [Afnan]This Market Strength Scanner indicator is designed to provide traders with a clear and concise overview of market trends using a single table. It helps you quickly determine which sectors and indices are strong, weak, or choppy, allowing you to make informed trading decisions with ease.
How This Indicator Helps You:
✅ Identify Strong Sectors & Indices
🔹By analyzing this table, you can instantly see which sectors and indices are performing well.
🔹Focus on stocks within strong sectors to find high-probability buying opportunities.
✅ Avoid Weak or Choppy Markets
🔹The indicator highlights bearish or consolidating sectors, helping you avoid poor trading conditions.
🔹Stay away from sectors that are weak or moving sideways to reduce unnecessary risks.
✅ Understand Market Sentiment in Seconds
🔹If most sectors are bullish, the market is in an uptrend—giving you confidence to take long positions.
🔹If the majority are bearish, the market is weak, signaling caution.
🔹A mix of bullish and bearish sectors indicates a choppy market, warning you to avoid trading or adjust your strategy.
✅ Powered by 4 Customizable EMAs
🔹The indicator uses 4 Exponential Moving Averages (EMAs) to determine trends for each sector and index.
🔹These EMAs are fully modifiable, allowing you to adjust them based on your preferred strategy.
✅ Covers 25 Major Indices (Fully Customizable)
🔹By default, the indicator tracks 25 key indices, giving you a broad market perspective.
🔹You can customize the list to focus on the indices that matter most to you.
Why Use This Indicator?
🔹 Saves Time – No need to analyze multiple charts manually. The table gives you everything at a glance.
🔹 Improves Trade Selection – Focus only on strong sectors for better trade accuracy.
🔹 Works in All Market Conditions – Whether the market is trending or consolidating, this tool keeps you informed.
🔹 Fully Customizable – Adjust the EMAs and indices according to your trading preferences.
With just this one powerful indicator, you get a complete market overview, helping you align your trades with the current trend effortlessly! 🚀
Strength Measurement -HTStrength Measurement -HT
This indicator provides a comprehensive view of trend strength by calculating the average ADX (Average Directional Index) across multiple timeframes. It helps traders identify strong trends, potential reversals, and confirm signals from other indicators.
Key Features:
Multi-Timeframe Analysis: Analyze trend strength across different timeframes. Choose which timeframes to include in the calculation (5 min, 15 min, 30 min, 1 hour, 4 hour).
Customizable ADX Parameters: Adjust the ADX smoothing (adxlen) and DI length (dilen) parameters to fine-tune the indicator to your preferred settings.
Smoothed Average ADX: The average ADX is smoothed using a Simple Moving Average to reduce noise and provide a clearer picture of the overall trend.
Color-Coded Visualization: The histogram clearly indicates trend direction and strength:
Green: Uptrend
Red: Downtrend
Darker shades: Stronger trend
Lighter shades: Weaker trend
Reference Levels: Includes horizontal lines at 25, 50, and 75 to provide benchmarks for trend strength classification.
Alerts: Set alerts for strong trend up (ADX crossing above 50) and weakening trend (ADX crossing below 25).
How to Use:
Select Timeframes: Choose the timeframes you want to include in the average ADX calculation.
Adjust ADX Parameters: Fine-tune the adxlen and dilen values based on your trading style and the timeframe of the chart.
Identify Strong Trends: Look for histogram bars with darker green or red colors, indicating a strong trend.
Spot Potential Reversals: Watch for changes in histogram color and height, which may suggest a weakening trend or a potential reversal.
Combine with Other Indicators: Use this indicator with other technical analysis tools to confirm trading signals.
Note: This indicator is based on the ADX, which is a lagging indicator.
EMA/RMA clouds by AlpachinoRE-UPLOAD
The indicator is designed for faster trend determination and also provides hints about whether the trend is strong, weaker, or if a range is expected.
It consists of an exponential moving average (EMA) and a slower smoothed moving average (RMA). I chose these because EMA is the fastest and is respected by the market, while I discovered through practice that the market often respects RMA, and in some cases, even more than EMA. Their combination is necessary because I want to take advantage of the best qualities of both averages. Displaying averages based solely on the close values creates a simple line that the market might respect. However, this is often not the case. Market makers know that many traders still believe in the theory that closing above/below an EMA signals a valid new trend. They commonly apply this belief to EMA200. Traders think that if the market closes below EMA, it signals a downtrend. That’s not necessarily true. This misconception often traps inexperienced traders.
For this reason, my indicator does not include a separate line.
I use what are called envelopes. In other words, for both EMA and RMA, the calculation uses the high and low of the selected period, which can be chosen as an input in the indicator.
Why did I choose high and low?
To stabilize price fluctuations as much as possible, especially to allow enough space for the price to react to the moving average. This reaction occurs precisely between the high and low.
Modes:
EMA Cloud – This is the most common envelope in terms of averages. It shows the best reactions with a period of 50.
What should you observe: the alignment of the envelope or its slope.
Usage:
Breakouts through the entire envelope tend to be strong, which signals that the trend may change. However, what interests you most is that the first test of the envelope after a breakout is the most successful entry point for trades in the breakout direction.
In an uptrend, the first support will be the high of the envelope, and the second (let’s call it the "ultimate support") will be the low of the envelope.
If, during an uptrend, the market closes below the low, be cautious, as the trend may reverse.
If the envelope is broken, trade the retest of the envelope.
In general, if the price is above the envelope, focus on long trades; if it’s below the envelope, focus on short trades.
Double Cloud – Since we already know that highs and lows are more relevant for price respect, I utilized this in the double cloud. Here, I use calculations for EMA and RMA highs and EMA and RMA lows.
The core idea is that since the price often reacts more to RMA than EMA, I wanted to eliminate attempts by market makers to lure you into incorrect directions. By creating more space for the price to react to the highs or lows, I made the cloud fill the area between EMA and RMA highs. This serves as the last zone where the price can hold. If the price breaks above this high cloud during a return, this doesn’t happen randomly—you should pay attention, as it’s likely signaling a range or a trend change.
The same applies to the low cloud for EMA and RMA.
The advantage of the double cloud is that you can see two clouds that may move sideways. This can resemble two walls—and they really act as such.
Usage:
Let’s say we have a downtrend. The market seems to be experiencing a downtrend exhaustion. Here's the behavior you might observe:
The price returns to the EMA/RMA low; the first reaction may still have some strength, but each subsequent return will move higher and higher into the cloud with increasingly smaller rejections downward. This indicates the absorption of selling pressure by bullish pressure. Eventually, the price may close above the cloud, significantly disrupting the downtrend and potentially signaling a reversal.
A confirmation of the reversal is usually seen with a retest of the cloud and a bounce upward into an uptrend.
The second scenario, which you’ll often see, involves sharp and significant moves through both envelopes. This kind of move is the strongest signal of a trend change. However, do not jump into trades immediately—wait for the first retest, which is usually successful. Additional tests may not work, as the breakout might not signify a trend change but rather a range.
When the clouds are far apart, it signals a weak trend or that the market is in a range. You will see that this is generally true. When the clouds cross or overlap, their initial point of contact signals the start of a stronger trend. The steeper the slope, the stronger the trend.
Detecting Sideways Market or Strong Trends| Copy Trade Tungdubai**Tool Description**:
The **"Detecting Sideways Market or Strong Trends | Copy Trade Tungdubai"** tool is designed to help traders identify two key market conditions:
1. **Sideways Market**:
- This condition is detected when the ADX is below 20, the price stays within the Bollinger Bands, and the RSI is between 45 and 55.
- When the market is sideways, the chart background will turn yellow as a visual alert.
2. **Strong Trend Market**:
- This condition is identified when the ADX is above 25, and either the price breaks out of the Bollinger Bands or the RSI surpasses the overbought (70) or oversold (30) levels.
- When the market is in a strong trend, the chart background will turn blue as a visual alert.
**Key Components of the Tool**:
- **ADX**: Measures the strength of the market trend, with key thresholds at 20 and 25.
- **Bollinger Bands**: Helps determine volatility and checks if the price is within or outside the bands.
- **RSI**: Measures momentum, helping identify overbought and oversold levels.
**Visual Features on the Chart**:
- ADX, RSI, and Bollinger Bands are clearly plotted with their respective key thresholds for easier recognition of market conditions.
- The chart background changes color to reflect the current market condition (yellow for sideways, blue for strong trends).
**Alerts**:
- Alerts are triggered when the market enters either a sideways or strong trend phase, providing notifications to help users act promptly.
This tool serves as a practical aid in recognizing market conditions, allowing traders to make informed decisions aligned with their strategies.
**Mô tả công cụ**:
Công cụ **"Detecting Sideways Market or Strong Trends | Copy Trade Tungdubai"** được thiết kế để giúp các nhà giao dịch xác định hai trạng thái chính của thị trường:
1. **Thị trường đi ngang (Sideways)**:
- Điều kiện được xác định dựa trên chỉ số ADX thấp hơn ngưỡng 20, giá nằm trong dải Bollinger Bands, và chỉ số RSI dao động trong khoảng từ 45 đến 55.
- Khi thị trường đi ngang, nền của biểu đồ sẽ chuyển sang màu vàng để cảnh báo trực quan.
2. **Thị trường bùng nổ sóng mạnh (Strong Trend)**:
- Điều kiện được xác định khi ADX vượt qua ngưỡng 25 và giá phá vỡ dải Bollinger Bands (hoặc) chỉ số RSI vượt ngưỡng quá mua 70 hoặc quá bán 30.
- Khi thị trường bùng nổ sóng mạnh, nền biểu đồ sẽ chuyển sang màu xanh để cảnh báo trực quan.
**Các thành phần chính của công cụ**:
- **ADX**: Được sử dụng để đo sức mạnh xu hướng thị trường, với các ngưỡng quan trọng là 20 và 25.
- **Bollinger Bands**: Được sử dụng để xác định mức độ biến động và kiểm tra giá nằm trong hay ngoài dải.
- **RSI**: Dùng để đo mức độ quá mua/quá bán, xác định động lượng giá.
**Hiển thị trên biểu đồ**:
- Các đường ADX, RSI, và Bollinger Bands được vẽ rõ ràng, cùng với các ngưỡng quan trọng (hỗ trợ nhận biết trạng thái thị trường).
- Nền biểu đồ thay đổi màu sắc tương ứng với điều kiện thị trường.
**Cảnh báo**:
- Cảnh báo sẽ được kích hoạt khi thị trường rơi vào trạng thái đi ngang hoặc bùng nổ sóng mạnh, với các thông báo giúp người dùng hành động kịp thời.
Công cụ này là một trợ thủ hữu ích trong việc nhận biết trạng thái thị trường, từ đó giúp các nhà giao dịch đưa ra quyết định phù hợp với chiến lược của mình.
WD Gann: Close Price X Bars Ago with Line or Candle PlotThis indicator is inspired by the principles of WD Gann, a legendary trader known for his groundbreaking methods in time and price analysis. It helps traders track the close price of a security from X bars ago, a technique that is often used to identify key price levels in relation to past price movements. This concept is essential for Gann’s market theories, which emphasize the relationship between time and price.
WD Gann’s analysis often revolved around specific numbers that he considered significant, many of which correspond to squared numbers (e.g., 1, 4, 9, 16, 25, 36, 49, 64, 81, 100, 121, 144, 169, 196, 225, 256, 289, 324, 361, 400, 441, 484, 529, 576, 625, 676, 729, 784, 841, 900, 961, 1024, 1089, 1156, 1225, 1296, 1369, 1444, 1521, 1600, 1681, 1764, 1849, 1936). These numbers are believed to represent natural rhythms and cycles in the market. This indicator can help you explore how past price levels align with these significant numbers, potentially revealing key price zones that could act as support, resistance, or reversal points.
Key Features:
- Historical Close Price Calculation: The indicator calculates and displays the close price of a security from X bars ago (where X is customizable). This method aligns with Gann's focus on price relationships over specific time intervals, providing traders with valuable reference points to assess market conditions.
- Customizable Plot Type: You can choose between two plot types for visualizing the historical close price:
- Line Plot: A simple line that represents the close price from X bars ago, ideal for those who prefer a clean and continuous representation.
- Candle Plot: Displays the close price as a candlestick chart, providing a more detailed view with open, high, low, and close prices from X bars ago.
- Candle Color Coding: For the candle plot type, the script color-codes the candles. Green candles appear when the close price from X bars ago is higher than the open price, indicating bullish sentiment; red candles appear when the close is lower, indicating bearish sentiment. This color coding gives a quick visual cue to market sentiment.
- Customizable Number of Bars: You can adjust the number of bars (X) to look back, providing flexibility for analyzing different timeframes. Whether you're conducting short-term or long-term analysis, this input can be fine-tuned to suit your trading strategy.
- Gann Method Application: WD Gann's methods involved analyzing price action over specific time periods to predict future movements. This indicator offers traders a way to assess how the price of a security has behaved in the past in relation to a chosen time interval, a critical concept in Gann's theories.
How to Use:
1. Input Settings:
- Number of Bars (X): Choose the number of bars to look back (e.g., 100, 200, or any custom period).
- Plot Type: Select whether to display the data as a Line or Candles.
2. Interpretation:
- Using the Line plot, observe how the close price from X bars ago compares to the current market price.
- Using the Candles plot, analyze the full price action of the chosen bar from X bars ago, noting how the close price relates to the open, high, and low of that bar.
3. Gann Analysis: Integrate this indicator into your broader Gann-based analysis. By looking at past price levels and their relationship to significant squared numbers, traders can uncover potential key levels of support and resistance or even potential reversal points. The historical close price can act as a benchmark for predicting future market movements.
Suggestions on WD Gann's Emphasis in Trading:
WD Gann’s trading methods were rooted in several key principles that emphasized the relationship between time and price. These principles are vital to understanding how the "Close Price X Bars Ago" indicator fits into his overall analysis:
1. Time Cycles: Gann believed that markets move in cyclical patterns. By studying price levels from specific time intervals, traders can spot these cycles and predict future market behavior. This indicator allows you to see how the close price from X bars ago relates to current market conditions, helping to spot cyclical highs and lows.
2. Price and Time Squaring: A core concept in Gann’s theory is that certain price levels and time periods align, often marking significant reversal points. The squared numbers (e.g., 1, 4, 9, 16, 25, etc.) serve as potential key levels where price and time might "square" to create support or resistance. This indicator helps traders spot these historical price levels and their potential relevance to future price action.
3. Geometric Angles: Gann used angles (like the 45-degree angle) to predict market movements, with the belief that prices move at specific geometric angles over time. This indicator gives traders a reference for past price levels, which could align with key angles, helping traders predict future price movement based on Gann's geometry.
4. Numerology and Key Intervals: Gann paid particular attention to numbers that held significance, including squared numbers and numbers related to the Fibonacci sequence. This indicator allows traders to analyze price levels based on these key numbers, which can help in identifying potential turning points in the market.
5. Support and Resistance Levels: Gann’s methods often involved identifying levels of support and resistance based on past price action. By tracking the close price from X bars ago, traders can identify past support and resistance levels that may become significant again in future market conditions.
Perfect for:
Traders using WD Gann’s methods, such as Gann angles, time cycles, and price theory.
Analysts who focus on historical price levels to predict future price action.
Those who rely on numerology and geometric principles in their trading strategies.
By integrating this indicator into your trading strategy, you gain a powerful tool for analyzing market cycles and price movements in relation to key time intervals. The ability to track and compare the historical close price to significant numbers—like Gann’s squared numbers—can provide valuable insights into potential support, resistance, and reversal points.
Disclaimer:
This indicator is based on the methods and principles of WD Gann and is for educational purposes only. It is not intended as financial advice. Trading involves significant risk, and you should not trade with money that you cannot afford to lose. Past performance is not indicative of future results. The use of this indicator is at your own discretion and risk. Always do your own research and consider consulting a licensed financial advisor before making any investment decisions.
Intrabar BoxPlotThe Intrabar BoxPlot publication highlights an uncommon technique by displaying statistical intrabar Lower Timeframe (LTF) values on the chart.
🔶 USAGE
🔹 Middle 50% Boxes
By showing the middle 50% intrabar values through a box, we can more easily see where the intrabar activity is mainly situated.
The middle 50% intrabar values are referred to from here on as Interquartile range (IQR).
In this example, the successive IQRs form a channel where the price eventually breaks out.
Disproportionately distributed values can give insights which can be used to find potential support/resistance areas.
IQR gaps can give valuable information as well. Potentially, the price can return to these gaps.
Seeing the IQR areas against regular candles gives an alternative image of the underlying price movements.
🔹 Highest volume Price level
The script displays the price level with the highest volume situated, dependable on the user's source setting. Setting the source at 'close' will only display intrabar close values; the same goes for high, low, ...
As seen in the above example, the volume levels can aid in finding support/resistance.
🔹 Median
The location of the median off all intrabar values is displayed as a coloured dot: green when the close price is higher than the opening price and red if otherwise. The median can give valuable insights into price movements.
🔹 Outliers
Medium (white dots) and extreme (white X) outliers, in combination with the IQR box, can help identify potential areas of interest.
🔹 Volume Delta
When there is a discrepancy between the delta volume and direction of the candle, this will be displayed as follows:
Green candle: when the sum of the volume of red intrabars is higher than the sum of the volume of green intrabars, the candle will be coloured orange.
Red candle: when the sum of the volume of green intrabars is higher than the sum of the volume of red intrabars, the candle will be coloured blue.
🔹 Highlight Boxplot only
Probably the easiest way to display boxplot only is by changing the Bar's style to Bars .
🔶 DETAILS
All intrabar values (Lower TimeFrame - LTF) are sorted and evaluated. Values can be close , high , low , ... by selecting this in Settings ( source ).
The middle 50% of all values are displayed as a box; this contains the values between percentile 25 (p25) and percentile 75 (p75). The value of percentile rank 75 means 75% of all values are lower. The value of percentile rank 25 means 25% of all values are lower, or 75% is higher.
The difference between p75 and p25 is also known as Interquartile range (IQR)
IQR is used to check for outliers.
Wiki: Boxplot , Interquartile range
Extreme high: maximum value, higher than p75 + IQR*3
Max outlier high: maximum value, higher than p75 + IQR*1.5 but lower than p75 + IQR*3
Max: maximum value, lower than p75 + IQR*1.5
Min: minimum value, higher than p25 - IQR*1.5
Min outlier low: minimum value, lower than p25 - IQR*1.5 but higher than p25 - IQR*3
Extreme low: minimum value, lower than p25 - IQR*3
Max and min must not be interpreted with the current candle high/low.
🔹 Example: Length of chart-puppets
The following example can make it easier to digest. Forty "chart-puppets" are sorted by their length.
The p25 value is 97
The p50 value is 120
The p75 value is 149
75% of all "chart-puppets" are smaller than p75, and 25% is larger than p75.
50% of all "chart-puppets" are smaller than p50, and 50% is larger than p50 (= median).
25% of all "chart-puppets" are smaller than p25, and 75% is larger than p25.
IQR = 149 - 97 = 52
Extreme outlier limit max: p75 + IQR*3 = 149 + 52*3 = 305
Mild outlier limit max: p75 + IQR*1.5 = 149 + 52*1.5 = 227
Mild outlier limit min: p25 - IQR*1.5 = 97 - 52*1.5 = 19
Extreme outlier limit min: p25 - IQR*3 = 97 - 52*3 = -59
In this example there are no outliers to be found, all values are located between p25 - IQR*1.5 (19) and p75 + IQR*1.5. (227)
🔹 Source settings
Note that results are dependable on the chosen source (settings). When, for example, close is chosen as the source, only intrabar close prices are included. This means a low or high can stretch further then the min or max.
Here we can see different results with different source settings
🔹 LTF settings
When 'Auto' is enabled (Settings, LTF), the LTF will be the nearest possible x times smaller TF than the current TF. When 'Premium' is disabled, the minimum TF will always be 1 minute to ensure TradingView plans lower than Premium don't get an error.
Examples with current Daily TF (when Premium is enabled):
500 : 3 minute LTF
1500 (default): 1 minute LTF
5000: 30 seconds LTF (1 minute if Premium is disabled)
🔶 SETTINGS
Source: Set source at close, high, low,...
🔹 LTF
LTF: LTF setting
Auto + multiple: Adjusts the initial set LTF
Premium: Enable when your TradingView plan is Premium or higher
🔹 Intrabar Delta : Colors, dependable on different circumstances.
Up: Price goes up, with more bullish than bearish intrabar volume.
Up-: Price goes up, with more bearish than bullish intrabar volume.
Down: Price goes down, with more bearish than bullish intrabar volume.
Down+: Price goes down, with more bullish than bearish intrabar volume.
🔹 Table
Show table: Show details at the top right corner
Show TF: Show LTF at the bottom right corner
Text color/table size
See DETAILS for more information
Inversion Fair Value Gap Oscillator | Flux Charts💎 GENERAL OVERVIEW
Introducing the new Inversion Fair Value Gap Oscillator (IFVG Oscillator) indicator! This unique indicator identifies and tracks Inversion Fair Value Gaps (IFVGs) in price action, presenting them in an oscillator format to reveal market momentum based on IFVG strength. It highlights bullish and bearish IFVGs while enabling traders to adjust detection sensitivity and apply volume and ATR-based filters for more precise setups. For more information about the process, check the "📌 HOW DOES IT WORK" section.
Features of the new IFVG Oscillator:
Fully Customizable FVG & IFVG Detection
An Oscillator Approach To IFVGs
Divergence Markers For Potential Reversals
Alerts For Divergence Labels
Customizable Styling
📌 HOW DOES IT WORK?
Fair Value Gaps are price gaps within bars that indicate inefficiencies, often filled as the market retraces. An Inversion Fair Value Gap is created in the opposite direction once a FVG gets invalidated. The IFVG Oscillator scans historical bars to identify these gaps, then filters them based on ATR or volume. Each IFVG is marked as bullish or bearish according to the opposite direction of the original FVG that got invalidated.
An oscillator is calculated using recent IFVGs with this formula :
1. The Oscillator starts as 0.
2. When a new IFVG Appears, it contributes (IFVG Width / ATR) to the oscillator of the corresponding type.
3. Each confirmed bar, the oscillator is recalculated as OSC = OSC * (1 - Decay Coefficient)
The oscillator aggregates and decays past IFVGs, allowing recent IFVG activity to dominate the signal. This approach emphasizes current market momentum, with oscillations moving bullish or bearish based on IFVG intensity. Divergences are marked where IFVG oscillations suggest potential reversals. Bullish Divergence conditions are as follows :
1. The current candlestick low must be the lowest of last 25 bars.
2. Net Oscillator (Shown in gray line by default) must be > 0.
3. The current Bullish IFVG Oscillator value should be no more than 0.1 below the highest value from the last 25 bars.
Traders can use divergence signals to get an idea of potential reversals, and use the Net IFVG Oscillator as a trend following marker.
🚩 UNIQUENESS
The Inversion Fair Value Gap Oscillator stands out by converting IFVG activity into an oscillator format, providing a momentum-based visualization of IFVGs that reveals market sentiment dynamically. Unlike traditional indicators that statically mark IFVG zones, the oscillator decays older IFVGs over time, showing only the most recent, relevant activity. This approach allows for real-time insight into market conditions and potential reversals based on oscillating IFVG strength, making it both intuitive and powerful for momentum trading.
Another unique feature is the combination of customizable ATR and volume filters, letting traders adapt the indicator to match their strategy and market type. You can also set-up alerts for bullish & bearish divergences.
⚙️ SETTINGS
1. General Configuration
Decay Coefficient -> The decay coefficient for oscillators. Increasing this setting will result in oscillators giving the weight to recent IFVGs, while decreasing it will distribute the weight equally to the past and recent IFVGs.
2. Fair Value Gaps
Zone Invalidation -> Select between Wick & Close price for FVG Zone Invalidation.
Zone Filtering -> With "Average Range" selected, algorithm will find FVG zones in comparison with average range of last bars in the chart. With the "Volume Threshold" option, you may select a Volume Threshold % to spot FVGs with a larger total volume than average.
FVG Detection -> With the "Same Type" option, all 3 bars that formed the FVG should be the same type. (Bullish / Bearish). If the "All" option is selected, bar types may vary between Bullish / Bearish.
Detection Sensitivity -> You may select between Low, Normal or High FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivies resulting in spotting bigger FVGs, and higher sensitivies resulting in spotting all sizes of FVGs.
3. Inversion Fair Value Gaps
Zone Invalidation -> Select between Wick & Close price for IFVG Zone Invalidation.
4. Style
Divergence Labels On -> You can switch divergence labels to show up on the chart or the oscillator plot.
Fair Value Gap Oscillator | Flux Charts💎 GENERAL OVERVIEW
Introducing the new Fair Value Gap Oscillator (FVG Oscillator) indicator! This unique indicator identifies and tracks Fair Value Gaps (FVGs) in price action, presenting them in an oscillator format to reveal market momentum based on FVG strength. It highlights bullish and bearish FVGs while enabling traders to adjust detection sensitivity and apply volume and ATR-based filters for more precise setups. For more information about the process, check the "📌 HOW DOES IT WORK" section.
Features of the new FVG Oscillator:
Fully Customizable FVG Detection
An Oscillator Approach To FVGs
Divergence Markers For Potential Reversals
Alerts For Divergence Labels
Customizable Styling
📌 HOW DOES IT WORK?
Fair Value Gaps are price gaps within bars that indicate inefficiencies, often filled as the market retraces. The FVG Oscillator scans historical bars to identify these gaps, then filters them based on ATR or volume. Each FVG is marked as bullish or bearish according to the trend direction that preceded its formation.
An oscillator is calculated using recent FVGs with this formula :
1. The Oscillator starts as 0.
2. When a new FVG Appears, it contributes (FVG Width / ATR) to the oscillator of the corresponding type.
3. Each confirmed bar, the oscillator is recalculated as OSC = OSC * (1 - Decay Coefficient)
The oscillator aggregates and decays past FVGs, allowing recent FVG activity to dominate the signal. This approach emphasizes current market momentum, with oscillations moving bullish or bearish based on FVG intensity. Divergences are marked where FVG oscillations suggest potential reversals. Bullish Divergence conditions are as follows :
1. The current candlestick low must be the lowest of last 25 bars.
2. Net Oscillator (Shown in gray line by default) must be > 0.
3. The current Bullish FVG Oscillator value should be no more than 0.1 below the highest value from the last 25 bars.
Traders can use divergence signals to get an idea of potential reversals, and use the Net FVG Oscillator as a trend following marker.
🚩 UNIQUENESS
The Fair Value Gap Oscillator stands out by converting FVG activity into an oscillator format, providing a momentum-based visualization of FVGs that reveals market sentiment dynamically. Unlike traditional indicators that statically mark FVG zones, the oscillator decays older FVGs over time, showing only the most recent, relevant activity. This approach allows for real-time insight into market conditions and potential reversals based on oscillating FVG strength, making it both intuitive and powerful for momentum trading.
Another unique feature is the combination of customizable ATR and volume filters, letting traders adapt the indicator to match their strategy and market type. You can also set-up alerts for bullish & bearish divergences.
⚙️ SETTINGS
1. General Configuration
Decay Coefficient -> The decay coefficient for oscillators. Increasing this setting will result in oscillators giving the weight to recent FVGs, while decreasing it will distribute the weight equally to the past and recent FVGs.
2. Fair Value Gaps
Zone Invalidation -> Select between Wick & Close price for FVG Zone Invalidation.
Zone Filtering -> With "Average Range" selected, algorithm will find FVG zones in comparison with average range of last bars in the chart. With the "Volume Threshold" option, you may select a Volume Threshold % to spot FVGs with a larger total volume than average.
FVG Detection -> With the "Same Type" option, all 3 bars that formed the FVG should be the same type. (Bullish / Bearish). If the "All" option is selected, bar types may vary between Bullish / Bearish.
Detection Sensitivity -> You may select between Low, Normal or High FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivies resulting in spotting bigger FVGs, and higher sensitivies resulting in spotting all sizes of FVGs.
3. Style
Divergence Labels On -> You can switch divergence labels to show up on the chart or the oscillator plot.
OBV based on MADescription:
This indicator calculates On-Balance Volume (OBV) based on the direction of a Simple Moving Average (SMA). Instead of using price movements, this OBV adds or subtracts volume depending on whether the SMA is rising or falling.
SMA-based OBV: When the SMA rises, the volume is added to the OBV. When the SMA falls, the volume is subtracted from the OBV. This allows traders to observe cumulative volume in relation to the wave patterns created by the SMA.
SMA Period: The period of the SMA can be customized, allowing traders to adjust it according to the wave size they want to observe.
While the cumulative volume indicator already exists, traders who analyze volume patterns can use this indicator to more easily conduct volume analysis across different wave sizes.
Inputs:
SMA Period: Defines the lookback period for calculating the Simple Moving Average (default is 25).
Ideal for:
Traders who want to analyze volume flow relative to moving average trends, rather than price movements. This can help identify underlying strength or weakness in market trends.
説明:
このインジケーターは、単純移動平均（SMA）の方向に基づいてオンバランス・ボリューム（OBV）を計算します。価格の動きではなく、SMAが上昇しているときは出来高を加算し、SMAが下降しているときは出来高を減算します。
SMA基準のOBV: SMAが上昇している場合はOBVに出来高が加算され、SMAが下降している場合は出来高が減算されます。これにより、SMAが作る波形に即した累積出来高を観察することができます。
SMA期間: トレーダーが見たい波のサイズ感に応じて、SMAの期間をカスタマイズできます。
既に累積出来高（Cumulative Volume）というインジケーターは存在しますが、波形を基に出来高を分析しているトレーダーは、このインジケーターを使うことで、様々なサイズの波形に即した出来高分析をより簡単に行うことができます。
入力項目:
SMA期間: 単純移動平均の計算に使用される期間を定義します（デフォルトは25）。
適しているトレーダー:
より波形に即した累積出来高分析を重視するトレーダーに最適です。
Williams %R StrategyThe Williams %R Strategy implemented in Pine Script™ is a trading system based on the Williams %R momentum oscillator. The Williams %R indicator, developed by Larry Williams in 1973, is designed to identify overbought and oversold conditions in a market, helping traders time their entries and exits effectively (Williams, 1979). This particular strategy aims to capitalize on short-term price reversals in the S&P 500 (SPY) by identifying extreme values in the Williams %R indicator and using them as trading signals.
Strategy Rules:
Entry Signal:
A long position is entered when the Williams %R value falls below -90, indicating an oversold condition. This threshold suggests that the market may be near a short-term bottom, and prices are likely to reverse or rebound in the short term (Murphy, 1999).
Exit Signal:
The long position is exited when:
The current close price is higher than the previous day’s high, or
The Williams %R indicator rises above -30, indicating that the market is no longer oversold and may be approaching an overbought condition (Wilder, 1978).
Technical Analysis and Rationale:
The Williams %R is a momentum oscillator that measures the level of the close relative to the high-low range over a specific period, providing insight into whether an asset is trading near its highs or lows. The indicator values range from -100 (most oversold) to 0 (most overbought). When the value falls below -90, it indicates an oversold condition where a reversal is likely (Achelis, 2000). This strategy uses this oversold threshold as a signal to initiate long positions, betting on mean reversion—an established principle in financial markets where prices tend to revert to their historical averages (Jegadeesh & Titman, 1993).
Optimization and Performance:
The strategy allows for an adjustable lookback period (between 2 and 25 days) to determine the range used in the Williams %R calculation. Empirical tests show that shorter lookback periods (e.g., 2 days) yield the most favorable outcomes, with profit factors exceeding 2. This finding aligns with studies suggesting that shorter timeframes can effectively capture short-term momentum reversals (Fama, 1970; Jegadeesh & Titman, 1993).
Scientific Context:
Mean Reversion Theory: The strategy’s core relies on mean reversion, which suggests that prices fluctuate around a mean or average value. Research shows that such strategies, particularly those using oscillators like Williams %R, can exploit these temporary deviations (Poterba & Summers, 1988).
Behavioral Finance: The overbought and oversold conditions identified by Williams %R align with psychological factors influencing trading behavior, such as herding and panic selling, which often create opportunities for price reversals (Shiller, 2003).
Conclusion:
This Williams %R-based strategy utilizes a well-established momentum oscillator to time entries and exits in the S&P 500. By targeting extreme oversold conditions and exiting when these conditions revert or exceed historical ranges, the strategy aims to capture short-term gains. Scientific evidence supports the effectiveness of short-term mean reversion strategies, particularly when using indicators sensitive to momentum shifts.
References:
Achelis, S. B. (2000). Technical Analysis from A to Z. McGraw Hill.
Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, 25(2), 383-417.
Jegadeesh, N., & Titman, S. (1993). Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency. The Journal of Finance, 48(1), 65-91.
Murphy, J. J. (1999). Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications. New York Institute of Finance.
Poterba, J. M., & Summers, L. H. (1988). Mean Reversion in Stock Prices: Evidence and Implications. Journal of Financial Economics, 22(1), 27-59.
Shiller, R. J. (2003). From Efficient Markets Theory to Behavioral Finance. Journal of Economic Perspectives, 17(1), 83-104.
Williams, L. (1979). How I Made One Million Dollars… Last Year… Trading Commodities. Windsor Books.
Wilder, J. W. (1978). New Concepts in Technical Trading Systems. Trend Research.
This explanation provides a scientific and evidence-based perspective on the Williams %R trading strategy, aligning it with fundamental principles in technical analysis and behavioral finance.
Open-Close Absolute Difference with Threshold CountsThe Open-Close Absolute Difference with Threshold Counts indicator is a versatile tool designed to help traders analyze the volatility and price movements within any given timeframe on their charts. This indicator calculates the absolute difference between the open and close prices for each bar, providing a clear visualization through a color-coded histogram.
Key features include:
• Timeframe Flexibility: Utilizes the current chart’s timeframe, whether it’s a 5-minute, hourly, or daily chart.
• Custom Thresholds: Allows you to set up to four custom threshold levels (Thresholds A, B, C, and D) with default values of 10, 15, 25, and 35, respectively.
• Period Customization: Enables you to define the number of bars (N) over which the indicator calculates the counts, with a default of 100 bars.
• Visual Threshold Lines: Plots horizontal dashed lines on the histogram representing each threshold for easy visual reference.
• Dynamic Counting: Counts and displays the number of times the absolute difference is less than or greater than each threshold within the specified period.
• Customizable Table Position: Offers the flexibility to position the results table anywhere on the chart (e.g., Top Right, Bottom Left).
How It Works:
1. Absolute Difference Calculation:
• For each bar on the chart, the indicator calculates the absolute difference between the open and close prices.
• This difference is plotted as a histogram:
• Green Bars: Close price is higher than the open price.
• Red Bars: Close price is lower than the open price.
2. Threshold Comparison and Counting:
• Compares the absolute difference to each of the four thresholds.
• Determines whether the difference is less than or greater than each threshold.
• Utilizes the ta.sum() function to count occurrences over the specified number of bars (N).
3. Results Table:
• Displays a table with three columns:
• Left Column: Counts where the absolute difference is less than the threshold.
• Middle Column: The threshold value.
• Right Column: Counts where the absolute difference is greater than the threshold.
• The table updates dynamically and can be positioned anywhere on the chart according to your preference.
4. Threshold Lines on Histogram:
• Plots horizontal dashed lines at each threshold level.
• Each line is color-coded for distinction:
• Threshold A: Yellow
• Threshold B: Orange
• Threshold C: Purple
• Threshold D: Blue
How to Use:
1. Add the Indicator to Your Chart:
• Open the Pine Editor on TradingView.
• Copy and paste the provided code into the editor.
• Click “Add to Chart.”
2. Configure Settings:
• Number of Bars (N):
• Set the period over which you want to calculate the counts (default is 100).
• Thresholds A, B, C, D:
• Input your desired threshold values (defaults are 10, 15, 25, 35).
• Table Position:
• Choose where you want the results table to appear on the chart:
• Options include “Top Left,” “Top Center,” “Top Right,” “Bottom Left,” “Bottom Center,” “Bottom Right.”
3. Interpret the Histogram:
• Observe the absolute differences plotted as a histogram.
• Use the color-coded bars to quickly assess whether the close price was higher or lower than the open price.
4. Analyze the Counts Table:
• Review the counts of occurrences where the absolute difference was less than or greater than each threshold.
• Use this data to gauge volatility and price movement intensity over the specified period.
5. Visual Reference with Threshold Lines:
• Refer to the horizontal dashed lines on the histogram to see how the absolute differences align with your thresholds.
Example Use Case:
Suppose you’re analyzing a 5-minute chart for a particular stock and want to understand its short-term volatility:
• Set the Number of Bars (N) to 50 to analyze the recent 50 bars.
• Adjust Thresholds based on the typical price movements of the stock, e.g., Threshold A: 0.5, Threshold B: 1.0, Threshold C: 1.5, Threshold D: 2.0.
• Position the Table at the “Top Right” for easy viewing.
By doing so, you can:
• Quickly see how often the stock experiences significant price movements within 5-minute intervals.
• Make informed decisions about entry and exit points based on the volatility patterns.
• Customize the thresholds and periods as market conditions change.
Benefits:
• Customizable Analysis: Tailor the indicator to fit various trading styles and timeframes.
• Quick Visualization: Instantly assess market volatility and price movement direction.
• Enhanced Decision-Making: Use the counts and visual cues to make more informed trading decisions.
• User-Friendly Interface: Simple configuration and clear display of information.
Note: Always test the indicator with different settings to find the configuration that best suits your trading strategy. This indicator should be used as part of a comprehensive analysis and not as the sole basis for trading decisions.
XAU/USD Strategy with Correct ADX and Bollinger Bands Fill1. *Indicators Used*:
- *Exponential Moving Averages (EMAs)*: Two EMAs (20-period and 50-period) are used to identify the trend direction and potential entry points based on crossovers.
- *Relative Strength Index (RSI)*: A momentum oscillator that measures the speed and change of price movements. It identifies overbought and oversold conditions.
- *Bollinger Bands*: These consist of a middle line (simple moving average) and two outer bands (standard deviations away from the middle). They help to identify price volatility and potential reversal points.
- *Average Directional Index (ADX)*: This indicator quantifies trend strength. It's derived from the Directional Movement Index (DMI) and helps confirm the presence of a strong trend.
- *Average True Range (ATR)*: Used to calculate position size based on volatility, ensuring that trades align with the trader's risk tolerance.
2. *Entry Conditions*:
- *Long Entry*:
- The 20 EMA crosses above the 50 EMA (indicating a potential bullish trend).
- The RSI is below the oversold level (30), suggesting the asset may be undervalued.
- The price is below the lower Bollinger Band, indicating potential price reversal.
- The ADX is above a specified threshold (25), confirming that there is sufficient trend strength.
- *Short Entry*:
- The 20 EMA crosses below the 50 EMA (indicating a potential bearish trend).
- The RSI is above the overbought level (70), suggesting the asset may be overvalued.
- The price is above the upper Bollinger Band, indicating potential price reversal.
- The ADX is above the specified threshold (25), confirming trend strength.
3. *Position Sizing*:
- The script calculates the position size dynamically based on the trader's risk per trade (expressed as a percentage of the total capital) and the ATR. This ensures that the trader does not risk more than the specified percentage on any single trade, adjusting the position size according to market volatility.
4. *Exit Conditions*:
- The strategy uses a trailing stop-loss mechanism to secure profits as the price moves in the trader's favor. The trailing stop is set at a percentage (1.5% by default) below the highest price reached since entry for long positions and above the lowest price for short positions.
- Additionally, if the RSI crosses back above the overbought level while in a long position or below the oversold level while in a short position, the position is closed to prevent losses.
5. *Alerts*:
- Alerts are set to notify the trader when a buy or sell condition is met based on the strategy's rules. This allows for timely execution of trades.
### Summary
This strategy aims to capture significant price movements in the XAU/USD market by combining trend-following (EMAs, ADX) and momentum indicators (RSI, Bollinger Bands). The dynamic position sizing based on ATR helps manage risk effectively. By implementing trailing stops and alert mechanisms, the strategy enhances the trader's ability to act quickly on opportunities while mitigating potential losses.
Larry Conners Vix Reversal II Strategy (approx.)This Pine Script™ strategy is a modified version of the original Larry Connors VIX Reversal II Strategy, designed for short-term trading in market indices like the S&P 500. The strategy utilizes the Relative Strength Index (RSI) of the VIX (Volatility Index) to identify potential overbought or oversold market conditions. The logic is based on the assumption that extreme levels of market volatility often precede reversals in price.
How the Strategy Works
The strategy calculates the RSI of the VIX using a 25-period lookback window. The RSI is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and is often used to identify overbought and oversold conditions in assets.
Overbought Signal: When the RSI of the VIX rises above 61, it signals a potential overbought condition in the market. The strategy looks for a RSI downtick (i.e., when RSI starts to fall after reaching this level) as a trigger to enter a long position.
Oversold Signal: Conversely, when the RSI of the VIX drops below 42, the market is considered oversold. A RSI uptick (i.e., when RSI starts to rise after hitting this level) serves as a signal to enter a short position.
The strategy holds the position for a minimum of 7 days and a maximum of 12 days, after which it exits automatically.
Larry Connors: Background
Larry Connors is a prominent figure in quantitative trading, specializing in short-term market strategies. He is the co-author of several influential books on trading, such as Street Smarts (1995), co-written with Linda Raschke, and How Markets Really Work. Connors' work focuses on developing rules-based systems using volatility indicators like the VIX and oscillators such as RSI to exploit mean-reversion patterns in financial markets.
Risks of the Strategy
While the Larry Connors VIX Reversal II Strategy can capture reversals in volatile market environments, it also carries significant risks:
Over-Optimization: This modified version adjusts RSI levels and holding periods to fit recent market data. If market conditions change, the strategy might no longer be effective, leading to false signals.
Drawdowns in Trending Markets: This is a mean-reversion strategy, designed to profit when markets return to a previous mean. However, in strongly trending markets, especially during extended bull or bear phases, the strategy might generate losses due to early entries or exits.
Volatility Risk: Since this strategy is linked to the VIX, an instrument that reflects market volatility, large spikes in volatility can lead to unexpected, fast-moving market conditions, potentially leading to larger-than-expected losses.
Scientific Literature and Supporting Research
The use of RSI and VIX in trading strategies has been widely discussed in academic research. RSI is one of the most studied momentum oscillators, and numerous studies show that it can capture mean-reversion effects in various markets, including equities and derivatives.
Wong et al. (2003) investigated the effectiveness of technical trading rules such as RSI, finding that it has predictive power in certain market conditions, particularly in mean-reverting markets .
The VIX, often referred to as the “fear index,” reflects market expectations of volatility and has been a focal point in research exploring volatility-based strategies. Whaley (2000) extensively reviewed the predictive power of VIX, noting that extreme VIX readings often correlate with turning points in the stock market .
Modified Version of Original Strategy
This script is a modified version of Larry Connors' original VIX Reversal II strategy. The key differences include:
Adjusted RSI period to 25 (instead of 2 or 4 commonly used in Connors’ other work).
Overbought and oversold levels modified to 61 and 42, respectively.
Specific holding period (7 to 12 days) is predefined to reduce holding risk.
These modifications aim to adapt the strategy to different market environments, potentially enhancing performance under specific volatility conditions. However, as with any system, constant evaluation and testing in live markets are crucial.
References
Wong, W. K., Manzur, M., & Chew, B. K. (2003). How rewarding is technical analysis? Evidence from Singapore stock market. Applied Financial Economics, 13(7), 543-551.
Whaley, R. E. (2000). The investor fear gauge. Journal of Portfolio Management, 26(3), 12-17.
Volume Analysis - Heatmap and Volume ProfileHello All!
I have a new toy for you! Volume Analysis - Heatmap and Volume Profile . Honestly I started to work to develop Volume Heatmap then I decided to improve it and add more features such Volume profile, volume, difference in Buy/Sell volumes etc. I tried to put my abilities into this script and tried to use some new Pine Language™ features ( method, force_overlay, enum etc features ). I hope the usage of these new features would be an example for Pine Programmers.
Lets talk about how it works:
- It gets number of Rows/Columns from the user for each candle to create heatmap
- It calculates the number of the candles to analyze. Number of the candles may change by number of Rows/columns or if any volume / difference in volumes / volume profile is enabled
- It gets Closing/Opening price, Volume and Time info from lower time frame for each candle ( it can be up to 100K for each candle )
- After getting the data it calculates lower time frame to analyze
- Then it calculates how closing price moves, how much volume on each move and create boxes by the volume/move in each box
- The colors for each box calculated by volume info and closing price movements in the lower time frame
- It shows the boxes on Absolute places or Zero Line optionally
- it shows Volume, Cumulative volume, Difference between Buy/Sell volume for each column
- it changes empty box color by Chart background color, also you can change transparency
- At this time it creates Volume Profile with up to 25 rows
- As a new Pine Language™ feature, it can show Volume Profile in the indicator window or in Main chart, shows Value Area, Value Area High (VAH), Value Area Low (VAL), and draw it and POC (Point Of Control) in the indicator window and/or in the main chart
- Honestly the feature I like is that: For the markets that are not open 24/7, it combines the data from the lower time period without any gaps. For example, if you work for a market that is closed on Saturdays and Sundays, it ensures data integrity by omitting weekends and holidays. so for example if the data is like "ABC---DEF-X---YL-Z" then it makes this data like "ABCDEFXYLZ". In this way, there will be no data breaks in the displayed boxes, there will be no empty colons, and it will appear as if data is coming in at any time.
- Finally it shows Info Panel to give info, its background color automatically changes by the Chart background color
- Important! You should set your "Plan" accordingly, your plan is "Premium or Higher" or "Lower tier". so the script can understand the minimum time frame it can get data!!
I tried to share many screenshots below to explain it much better
How it looks?
it shows Highest Buy/Sell volumes brighter, move volume -> brighter
Volume Profile ( up to 25 row s) ( number of contained candles should be more than 1 )
Volume Profile can be shown in the main chart optionally
How the main chart looks:
Closing price shown and you can enable it, change colors & line width
Can include many candles according to Row&Column number you set
Optionally it can show cumulative volume for each candle
Closing prices from lower time frame
Shows Candle Body by changing background colors
It can shows all included candles on Zero line
You can change the colors of many things
You can set Empty box and border transparency
Table, Empty box Colors adjustment done automatically by chart background color
Sometimes we can not get data from some historical candles if time frame is high such 2days, 1 week etc, and it looks like:
It also checks if Chart time frame and Chart type is suitable
Enjoy!
Artaking 2Components of the Indicator:
Moving Averages:
Short-Term Moving Average (MA): This is a 50-period Simple Moving Average (SMA) applied to the closing price. It is used to track the short-term trend of the market.
Long-Term Moving Average (MA): This is a 200-period SMA used to track the long-term trend.
Day Trading Moving Average: A 20-period SMA is used specifically for day trading signals, focusing on shorter-term price movements.
Purpose:
The crossing of these moving averages (short-term crossing above or below long-term) provides basic buy and sell signals, indicative of potential trend reversals or continuations.
ADX (Average Directional Index) for Trend Strength:
ADX Calculation: The ADX is calculated using a 14-period length with 14-period smoothing. The ADX value indicates the strength of a trend, regardless of direction.
Strong Trend Condition: The indicator considers a trend to be strong if the ADX value is above 25. This threshold helps filter out trades during weak or sideways markets.
Purpose:
To ensure that the strategy only generates signals when there is a strong trend, thus avoiding whipsaws in low volatility or range-bound conditions.
Support Levels:
Support Level Calculation: The indicator calculates the lowest close over the last 100 periods. This level is used to identify significant support zones where the price might find a floor.
Purpose:
Support levels are critical in identifying potential areas where the price might bounce, making them ideal for setting stop losses or identifying buy opportunities.
Volatility Spike (Proxy for News Trading):
ATR (Average True Range) Calculation: The indicator uses a 14-period ATR to measure market volatility. A volatility spike is identified when the ATR is greater than 1.5 times the 14-period SMA of the ATR.
Purpose:
This serves as a proxy for news events or other sudden market movements that could make the market unpredictable. The indicator avoids generating signals during these periods to reduce the risk of being caught in a volatile, potentially news-driven move.
Fibonacci Retracement Levels:
61.8% Fibonacci Level: Calculated from the highest high and lowest low over the long MA period, this retracement level is widely regarded as a significant support or resistance level.
Purpose:
Position traders often use Fibonacci levels to identify potential reversal points. The indicator incorporates the 61.8% level to fine-tune entries and exits.
Candlestick Patterns for Price Action Trading:
Bullish Engulfing Pattern: A bullish reversal pattern where a green candle fully engulfs the previous red candle.
Bearish Engulfing Pattern: A bearish reversal pattern where a red candle fully engulfs the previous green candle.
Purpose:
These patterns are classic signals used in price action trading to identify potential reversals at key levels, especially when they align with other conditions like support/resistance or Fibonacci levels.
Signal Generation:
The indicator generates buy and sell signals by combining the above elements:
Buy Signal:
A buy signal is triggered when:
The short-term MA crosses above the long-term MA (indicating a potential uptrend).
The trend is strong (ADX > 25).
The current price is near or below the 61.8% Fibonacci retracement level, suggesting a potential reversal.
No significant volatility spike is detected, ensuring the market isn’t reacting unpredictably to news.
Sell Signal:
A sell signal is triggered when:
The short-term MA crosses below the long-term MA (indicating a potential downtrend).
The trend is strong (ADX > 25).
The current price is near or above the 61.8% Fibonacci retracement level, suggesting potential resistance.
No significant volatility spike is detected.
Day Trading Signals:
Independent of the main trend signals, the indicator also generates intraday buy and sell signals when the price crosses above or below the 20-period day trading MA.
Price Action Signals:
The indicator can trigger buy or sell signals based purely on price action, such as the occurrence of bullish or bearish engulfing patterns. This is optional and can be enabled or disabled.
Alerts:
The indicator includes built-in alert conditions that notify the trader when a buy or sell signal is generated. This allows traders to act immediately without having to constantly monitor the charts.
Practical Application:
This indicator is versatile and can be used across various trading styles:
Position Trading: The long-term MA, Fibonacci retracement, and ADX provide a solid foundation for identifying long-term trends and potential entry/exit points.
Day Trading: The short-term MA and day trading MA offer quick signals for intraday trading.
Price Action: Candlestick pattern recognition allows for precise entry points based on market sentiment and behavior.
News Trading: The volatility spike filter helps avoid trading during periods of market instability, often driven by news events.
Conclusion:
The Comprehensive Trading Strategy Indicator is a robust tool designed to help traders navigate various market conditions by integrating multiple strategies into a single, coherent framework. It provides clear, actionable signals while filtering out potentially dangerous trades during volatile or weak market conditions. Whether you're a long-term trader, a day trader, or someone who relies on price action, this indicator can be a valuable addition to your trading toolkit.
whookLibrary "whook"
This library provides functions for generating trading alerts for `whook`
check this -> github.com
Currently supported exchanges:
Kucoin futures
Bitget futures
Coinex futures
Bingx
OKX futures ( also its demo mode )
Bybit futures ( also Bybit testnet )
Binance futures ( also Binance futures testnet )
Phemex futures ( also Phemex testnet )
Kraken futures ( also Kraken futures testnet )
# --- Test Cases ---
Note: These test cases are for demonstration purposes only and may not cover all scenarios.
// buy(string account, float amount, string unit = "units", float leverage = 1)
buy("MyAccount", 100, "units", 1)
buy("MyAccount", 1000, "USDT", 5)
buy("MyAccount", 50, "percent", 2)
// sell(string account, float amount, string unit = "units", float leverage = 1)
sell("MyAccount", 50, "units", 1)
sell("MyAccount", 500, "USDT", 3)
sell("MyAccount", 25, "percent", 2)
// set_position(string account, float amount, string unit = "units", float leverage = 1)
set_position("MyAccount", 100, "units", 1)
set_position("MyAccount", 1000, "USDT", 5)
set_position("MyAccount", 50, "percent", 2)
// limit_buy(string account, float amount, float price, string unit = "units", float leverage = 1, string id = "")
limit_buy("MyAccount", 100, 10000, "units", 1, "MyBuyOrder")
limit_buy("MyAccount", 1000, 10500, "USDT", 5)
limit_buy("MyAccount", 50, 11000, "percent", 2)
// limit_sell(string account, float amount, float price, string unit = "units", float leverage = 1, string id = "")
limit_sell("MyAccount", 50, 10000, "units", 1, "MySellOrder")
limit_sell("MyAccount", 500, 9500, "USDT", 3)
limit_sell("MyAccount", 25, 9000, "percent", 2)
// close_percent(string account, float pct = 100)
close_percent("MyAccount", 100)
close_percent("MyAccount", 50)
buy(account, amount, unit, leverage)
Sends a trading alert to execute a market buy order.
Parameters:
account (string) : The account ID.
amount (float) : The amount to buy (can be in USD, units, or percentage).
unit (string) : The unit of the amount (optional, defaults to "units").
leverage (float) : The leverage to use (optional, defaults to 1x).
sell(account, amount, unit, leverage)
Sends a trading alert to execute a market sell order.
Parameters:
account (string) : The account ID.
amount (float) : The amount to sell (can be in USD, units, or percentage).
unit (string) : The unit of the amount (optional, defaults to "units").
leverage (float) : The leverage to use (optional, defaults to 1x).
set_position(account, amount, unit, leverage)
Sends a trading alert to set a position.
Parameters:
account (string) : The account ID.
amount (float) : The amount to set the position to (can be in USD, units, or percentage).
unit (string) : The unit of the amount (optional, defaults to "units").
leverage (float) : The leverage to use (optional, defaults to 1x).
limit_buy(account, amount, price, unit, leverage, id)
Sends a trading alert to place a limit buy order.
Parameters:
account (string) : The account ID.
amount (float) : The amount to buy (can be in USD, units, or percentage).
price (float) : The limit price.
unit (string) : The unit of the amount (optional, defaults to "units").
leverage (float) : The leverage to use (optional, defaults to 1x).
id (string) : An optional custom ID for the limit order.
limit_sell(account, amount, price, unit, leverage, id)
Sends a trading alert to place a limit sell order.
Parameters:
account (string) : The account ID.
amount (float) : The amount to sell (can be in USD, units, or percentage).
price (float) : The limit price.
unit (string) : The unit of the amount (optional, defaults to "units").
leverage (float) : The leverage to use (optional, defaults to 1x).
id (string) : An optional custom ID for the limit order.
close_percent(account, pct)
Sends an alert to close a position on Phemex.
Parameters:
account (string) : The account ID.
pct (float) : The percentage of the position to close (optional, defaults to 100%).
TechniTrend RSI (11TF)Multi-Timeframe RSI Indicator
Overview
The Multi-Timeframe RSI Indicator is a sophisticated tool designed to provide comprehensive insights into the Relative Strength Index (RSI) across 11 different timeframes simultaneously. This indicator is essential for traders who wish to monitor RSI trends and their moving averages (MA) to make informed trading decisions.
Features
Multiple Timeframes: Displays RSI and RSI MA values for 11 different timeframes, allowing traders to have a holistic view of the market conditions.
RSI vs. MA Comparison: Indicates whether the RSI value is above or below its moving average for each timeframe, helping traders to identify bullish or bearish momentum.
Overbought/Oversold Signals:
Marks "OS" (OverSell) when RSI falls below 25, indicating a potential oversold condition.
Marks "OB" (OverBuy) when RSI exceeds 75, signaling a potential overbought condition.
Real-Time Updates: Continuously updates in real-time to provide the most current market information.
Usage
This indicator is invaluable for traders who utilize RSI as part of their technical analysis strategy. By monitoring multiple timeframes, traders can:
Identify key overbought and oversold levels to make entry and exit decisions.
Observe the momentum shifts indicated by RSI crossing above or below its moving average.
Enhance their trading strategy by integrating multi-timeframe analysis for better accuracy and confirmation.
How to Interpret the Indicator
RSI Above MA: Indicates a potential bullish trend. Traders may consider looking for long positions.
RSI Below MA: Suggests a potential bearish trend. Traders may look for short positions.
OS (OverSell): When RSI < 25, the market may be oversold, presenting potential buying opportunities.
OB (OverBuy): When RSI > 75, the market may be overbought, indicating potential selling opportunities.
KillZones + ACD Fisher [TradingFinder] Sessions + Reversal Level🔵 Introduction
🟣 ACD Method
"The Logical Trader" opens with a thorough exploration of the ACD Methodology, which focuses on pinpointing particular price levels associated with the opening range.
This approach enables traders to establish reference points for their trades, using "A" and "C" points as entry markers. Additionally, the book covers the concept of the "Pivot Range" and how integrating it with the ACD method can help maximize position size while minimizing risk.
🟣 Session
The forex market is operational 24 hours a day, five days a week, closing only on Saturdays and Sundays. Typically, traders prefer to concentrate on one specific forex trading session rather than attempting to trade around the clock.
Trading sessions are defined time periods when a particular financial market is active, allowing for the execution of trades.
The most crucial trading sessions within the 24-hour cycle are the Asia, London, and New York sessions, as these are when substantial money flows and liquidity enter the market.
🟣 Kill Zone
Traders in financial markets earn profits by capitalizing on the difference between their buy/sell prices and the prevailing market prices.
Traders vary in their trading timelines.Some traders engage in daily or even hourly trading, necessitating activity during periods with optimal trading volumes and notable price movements.
Kill zones refer to parts of a session characterized by higher trading volumes and increased price volatility compared to the rest of the session.
🔵 How to Use
🟣 Session Times
The "Asia Session" comprises two parts: "Sydney" and "Tokyo." This session begins at 23:00 and ends at 06:00 UTC. The "Asia KillZone" starts at 23:00 and ends at 03:55 UTC.
The "London Session" includes "Frankfurt" and "London," starting at 07:00 and ending at 14:25 UTC. The "London KillZone" runs from 07:00 to 09:55 UTC.
The "New York" session starts at 14:30 and ends at 19:25 UTC, with the "New York am KillZone" beginning at 14:30 and ending at 22:55 UTC.
🟣 ACD Methodology
The ACD strategy is versatile, applicable to various markets such as stocks, commodities, and forex, providing clear buy and sell signals to set price targets and stop losses.
This strategy operates on the premise that the opening range of trades holds statistical significance daily, suggesting that initial market movements impact the market's behavior throughout the day.
Known as a breakout strategy, the ACD method thrives in volatile or strongly trending markets like crude oil and stocks.
Some key rules for employing the ACD strategy include :
Utilize points A and C as critical reference points, continually monitoring these during trades as they act as entry and exit markers.
Analyze daily and multi-day pivot ranges to understand market trends. Prices above the pivots indicate an upward trend, while prices below signal a downward trend.
In forex trading, the ACD strategy can be implemented using the ACD indicator, a technical tool that gauges the market's supply and demand balance. By evaluating trading volume and price, this indicator assists traders in identifying trend strength and optimal entry and exit points.
To effectively use the ACD indicator, consider the following :
Identifying robust trends: The ACD indicator can help pinpoint strong, consistent market trends.
Determining entry and exit points: ACD generates buy and sell signals to optimize trade timing.
Bullish Setup :
When the "A up" line is breached, it’s wise to wait briefly to confirm it’s not a "Fake Breakout" and that the price stabilizes above this line.
Upon entering the trade, the most effective stop loss is positioned below the "A down" line. It's advisable to backtest this to ensure the best outcomes. The recommended reward-to-risk ratio for this strategy is 1, which should also be verified through backtesting.
Bearish Setup :
When the "A down" line is breached, it’s prudent to wait briefly to ensure it’s not a "Fake Breakout" and that the price stabilizes below this line.
Upon entering the trade, the most effective stop loss is positioned above the "A up" line. Backtesting is recommended to confirm the best results. The recommended reward-to-risk ratio for this strategy is 1, which should also be validated through backtesting.
Advantages of Combining Kill Zone and ACD Method in Market Analysis :
Precise Trade Timing : Integrating the Kill Zone strategy with the ACD Method enhances precision in trade entries and exits. The ACD Method identifies key points for trading, while the Kill Zone focuses on high-activity periods, together ensuring optimal timing for trades.
Better Trend Identification : The ACD Method’s pivot ranges help spot market trends, and when combined with the Kill Zone’s emphasis on periods of significant price movement, traders can more effectively identify and follow strong market trends.
Maximized Profits and Minimized Risks : The ACD Method's structured approach to setting price targets and stop losses, coupled with the Kill Zone's high-volume trading periods, helps maximize profit potential while reducing risk.
Robust Risk Management : Combining these methods provides a comprehensive risk management strategy, strategically placing stop losses and protecting capital during volatile periods.
Versatility Across Markets : Both methods are applicable to various markets, including stocks, commodities, and forex, offering flexibility and adaptability in different trading environments.
Enhanced Confidence : Using the combined insights of the Kill Zone and ACD Method, traders gain confidence in their decision-making process, reducing emotional trading and improving consistency.
By merging the Kill Zone’s focus on trading volumes and the ACD Method’s structured breakout strategy, traders benefit from a synergistic approach that enhances precision, trend identification, and risk management across multiple markets.
Directional Movement Index DEThis script uses the existing built-in DMI indicator but adds two lines indicating strength of the ADX trend. The original author J. Welles Wilder, indicated a ADX trending strongly above 25 (yellow by default), and ADX trending weaker at a threshold of 20 or below (dashed yellow by default).
The default colours have been changed so that ADX is yellow, +DI is green, and -DI is red.
Calculation
Calculating the DMI can actually be broken down into two parts. First, calculating the +DI and -DI, and second, calculating the ADX. To calculate the +DI and -DI you need to find the +DM and -DM (Directional Movement). +DM and -DM are calculated using the High, Low and Close for each period. You can then calculate the following:
Current High - Previous High = UpMove
Previous Low - Current Low = DownMove
If UpMove > DownMove and UpMove > 0, then +DM = UpMove, else +DM = 0
If DownMove > Upmove and Downmove > 0, then -DM = DownMove, else -DM = 0
Once you have the current +DM and -DM calculated, the +DM and -DM lines can be calculated and plotted based on the number of user defined periods.
+DI = 100 times Exponential Moving Average of (+DM / Average True Range)
-DI = 100 times Exponential Moving Average of (-DM / Average True Range)
Now that -+DX and -DX have been calculated, the last step is calculating the ADX.
ADX = 100 times the Exponential Moving Average of the Absolute Value of (+DI - -DI) / (+DI + -DI)
The basics
DMI has a value between 0 and 100 and is used to measure the strength of the current trend. +DI and -DI are then used to measure direction. When combined, the indicator can provide some valuable insight. A general interpretation would be that during a strong trend (ADX above 25 but dependent on the analyst's interpretation), when the +DI is above the -DI, then a Bullish Market is defined. When -DI is above +DI, then a Bearish Market is at hand.
One thing to be considered is that what DMI values determine, strength or a potential signal, is up to the trader's interpretation. Acceptable values may change depending on the financial instrument being examined, therefore some historical analysis of the instrument in question would be prudent. A technical analyst can make better decisions based on what has occurred in historical examples.
All credit goes to the original script .
Trend Momentum Strength Indicator, Built for Pairs TradingOverview:
This script combines multiple indicators to provide a comprehensive analysis of both trend strength and trend momentum. It is tailored specifically for pairs trading strategies but can also be used for other trading strategies.
Benefit of Comprehensive Analysis:
Having an indicator that evaluates both trend strength and trend momentum is crucial for traders looking to make informed decisions. It allows traders to not only identify the direction and intensity of a trend but also gauge the momentum behind it. This dual capability helps in confirming potential trade opportunities, whether for entering trades with strong trends or considering reversals during overbought or oversold conditions. By integrating both aspects into one tool, traders can gain a holistic view of market dynamics, enhancing their ability to time entries and manage risk effectively.
Features:
* Trend Strength:
Enhanced ADX Formula: The script includes modifications to the standard ADX formula along with DI+ and DI- to provide more responsive trend strength readings.
Directional Indicators: DI+ (green line) indicates positive directional movement, while DI- (red line) indicates negative directional movement.
Trend Momentum:
Modified Stochastic Indicators: The script uses %K and %D indicators, modified and combined with ADX to give a clear indication of trend momentum.
Momentum Strength: This helps determine the strength and direction of the momentum.
Trading Signals:
Combining Indicators: The script combines ADX, DI+, DI-, %K, and %D to generate comprehensive trading signals.
Optimal Entry Points: Designed to identify optimal entry points for trades, particularly in pairs trading.
Colored Area at Bottom:
This area provides two easy-to-read functions:
Color:
Green: Upward momentum (ratio above 1)
Red: Downward momentum (ratio below 1)
Height:
Higher in green: Stronger upward momentum
Lower in red: Stronger downward momentum
Legend:
Green Line: DI+ (Positive)
Red Line: DI- (Negative)
Black Line: ADX
How to Read This Indicator:
1) Trend Direction:
DI+ above DI-: Indicates an upward trend.
DI- above DI+: Indicates a downward trend.
2) Trend Strength:
ADX below 20: Indicates a neutral trend.
ADX between 20 and 25: Indicates a weak trend.
ADX above 25: Indicates a strong trend.
Trading Signals in Pairs Trading:
Neutral Trend: Ideal for pairs trading when no strong trend is detected.
Overbought/Oversold: Uses %K and %D to identify overbought/oversold conditions that support trade decisions.
Entry Signals: Green signals for long positions, red signals for short positions, based on combined criteria of neutral trend strength and supportive momentum.
Application in Pairs Trading:
Neutral trend: In pairs trading strategies, where neutral movement is often sought, this indicator provides signals that are especially relevant during periods of neutral trend strength and supportive momentum, aiding traders in identifying optimal entry
Risk Management: Combining signals from ADX, DI+, DI-, %K, and %D helps traders make more informed decisions regarding entry points, enhancing risk management.
Example Chart (The indicator is on the upper right corner):
Clean Presentation: The chart only includes the necessary elements to demonstrate the indicator’s functionality.
Demonstrates: Overbought/oversold conditions, upward/downward/no momentum, and trading signals with/without specific scenarios.
Session Breakout Scalper Trading BotHi Traders !
Introduction:
I have recently been exploring the world of automated algorithmic trading (as I prefer more objective trading strategies over subjective technical analysis (TA)) and would like to share one of my automation compatible (PineConnecter compatible) scripts “Session Breakout Scalper”.
The strategy is really simple and is based on time conditional breakouts although has more ”relatively” advanced optional features such as the regime indicators (Regime Filters) that attempt to filter out noise by adding more confluence states and the ATR multiple SL that takes into account volatility to mitigate the down side risk of the trade.
What is Algorthmic Trading:
Firstly what is algorithmic trading? Algorithmic trading also known as algo-trading, is a method of using computer programs (in this case pine script) to execute trades based on predetermined rules and instructions (this trading strategy). It's like having a robot trader who follows a strict set of commands to buy and sell assets automatically, without any human intervention.
Important Note:
For Algorithmic trading the strategy will require you having an essential TV subscription at the minimum (so that you can set alerts) plus a PineConnecter subscription (scroll down to the .”How does the strategy send signals” headings to read more)
The Strategy Explained:
Is the Time input true ? (this can be changed by toggling times under the “TRADE MEDIAN TIMES” group for user inputs).
Given the above is true the strategy waits x bars after the session and then calculates the highest high (HH) to lowest low (LL) range. For this box to form, the user defined amount of bars must print after the session. The box is symmetrical meaning the HH and LL are calculated over a lookback that is equal to the sum of user defined bars before and after the session (+ 1).
The Strategy then simultaneously defines the HH as the buy level (green line) and the LL as the sell level (red line). note the strategy will set stop orders at these levels respectively.
Enter a buy if price action crosses above the HH, and then cancel the sell order type (The opposite is true for a stop order).
If the momentum based regime filters are true the strategy will check for the regime / regimes to be true, if the regime if false the strategy will exit the current trade, as the regime filter has predicted a slowing / reversal of momentum.
The image below shows the strategy executing these trading rules ( Regime filters, "Trades on chart", "Signal & Label" and "Quantity" have been omitted. "Strategy label plots" has been switched to true)
Other Strategy Rules:
If a new session (time session which is user defined) is true (blue vertical line) and the strategy is currently still in a trade it will exit that trade immediately.
It is possible to also set a range of percentage gain per day that the strategy will try to acquire, if at any point the strategy’s profit is within the percentage range then the position / trade will be exited immediately (This can be changed in the “PERCENT DAY GAIN” group for user inputs)
Stops and Targets:
The strategy has either static (fixed) or variable SL options. TP however is only static. The “STRAT TP & TP” group of user inputs is responsible for the SL and TP values (quoted in pips). Note once the ATR stop is set to true the SL values in the above group no longer have any affect on the SL as expected.
What are the Regime Filters:
The Larry Williams Large Trade Index (LWLTI): The Larry Williams Large Trade Index (LWTI) is a momentum-based technical indicator developed by iconic trader Larry Williams. It identifies potential entries and exits for trades by gauging market sentiment, particularly the buying and selling pressure from large market players. Here's a breakdown of the LWTI:
LWLTI components and their interpretation:
Oscillator: It oscillates between 0 and 100, with 50 acting as the neutral line.
Sentiment Meter: Values above 75 suggest a bearish market dominated by large selling, while readings below 25 indicate a bullish market with strong buying from large players.
Trend Confirmation: Crossing above 75 during an uptrend and below 25 during a downtrend confirms the trend's continuation.
The Andean Oscillator (AO) : The Andean Oscillator is a trend and momentum based indicator designed to measure the degree of variations within individual uptrends and downtrends in the prices.
Regime Filter States:
In trading, a regime filter is a tool used to identify the current state or "regime" of the market.
These Regime filters are integrated within the trading strategy to attempt to lower risk (equity volatility and/or draw down). The regime filters have different states for each market order type (buy and sell). When the regime filters are set to true, if these regime states fail to be true the trade is exited immediately.
For Buy Trades:
LWLTI positive momentum state: Quotient of the lagged trailing difference and the ATR > 50
AO positive momentum state: Bull line > Bear line (signal line is omitted)
For Sell Trades:
LWLTI negative momentum stat: Quotient of the lagged trailing difference and the ATR < 50
AO negative momentum state: Bull line < Bear line (signal line is omitted)
How does the Strategy Send Signals:
The strategy triggers a TV alert (you will neet to set a alert first), TV then sends a HTTP request to the automation software (PineConnecter) which receives the request and then communicates to an MT4/5 EA to automate the trading strategy.
For the strategy to send signals you must have the following
At least a TV essential subscription
This Script added to your chart
A PineConnecter account, which is paid and not free. This will provide you with the expert advisor that executes trades based on these strategies signals.
For more detailed information on the automation process I would recommend you read the PineConnecter documentation and FAQ page.
Dashboard:
This Dashboard (top right by defualt) lists some simple trading statistics and also shows when a trade is live.
Important Notice:
- USE THIS STRATEGY AT YOUR OWN RISK AND ALWAYS DO YOUR OWN RESEARCH & MANUAL BACKTESTING !
- THE STRATEGY WILL NOT EXHIBIT THE BACKTEST PERFORMANCE SEEN BELOW IN ALL MARKETS !
