WinningWave - Devrim - By [Sercan.B]WinningWave - Devrim is an extremely advanced technical analysis tool designed to understand fluctuations in the financial markets and provide investors with reliable buying and selling decisions based on this information. This tool integrates various analysis methods to detect market trends and potential reversal points.
Fundamentally, WinningWave - Devrim deeply examines market movements using ZigZag analyses, harmonic pattern recognition, and various indicators such as RSI. ZigZag analyses filter out the noise of short-term price movements, offering a cleaner view of market trends and identifying significant peaks and troughs. The harmonic pattern recognition feature utilizes the recurring nature of specific price patterns to indicate potential buying and selling areas. These patterns provide clues about the possible future directions of price movements.
The strength of WinningWave - Devrim lies not only in identifying specific patterns and trends but also in presenting this information in a way that can be integrated into investors' strategies. Investors can clearly see when to enter or exit the market, thanks to the visual signals and patterns provided by the indicator.
Moreover, WinningWave - Devrim offers a set of customizable settings according to user preferences. This feature is critical for adapting to different market conditions and investment strategies. For example, an investor can adjust the ATR period, which measures volatility, to receive the most suitable signals for the current market condition.
Thanks to the specially tailored artificial intelligence coding for pattern finding for each time period, it alerts the user as a formation by analyzing the possible start and end areas of Trends specific to time periods. Additionally, a buy and sell signal compatible with harmonic pattern-based trend scanning technique accompanies harmonic formations. The buy or sell signal that comes immediately after the formation is created provides detailed awareness for the user to enter or exit the game.
The option to set separate alerts for the formation of each pattern and for every buy-sell signal frees users from the necessity of monitoring the screen constantly.
Lastly, WinningWave - Devrim offers investors a broad perspective for market analysis. With this tool, investors can identify market trends, potential reversal points, and buying and selling opportunities, optimize risk management, and apply their investment strategies more consciously.
Note: In line with my principle of personal neutrality, the description and usage of the indicator have been written by analyzing the codes through ChatGPT.
- Adhering to buy and sell signals is crucial for securing transactions at points where harmonic patterns form. This importance stems from the fact that the legs of harmonic formations can extend according to Fibonacci values. In other words, a harmonic formation signal does not have to occur immediately when it is received. Therefore, buy and sell signal labels, transformed into signals with settings compatible with formations and based on ATR, aim to minimize the margin of error in transactions.
- Harmonic formations are an analysis method in financial markets that is based on specific mathematical properties and ratios of price movements. These formations rely on mathematical concepts such as the Fibonacci number sequence and are used to predict how price movements may behave in the future. The idea behind harmonic formations is that certain patterns tend to repeat in market price movements. These patterns are used to identify potential buying and selling points.
- Paintings are representative. It was drawn for those who cannot see that zigzag lines and formation labels create mathematics and a formation.
- The Super Trend ATR (Average True Range) is a popular trend-following indicator used in financial markets. This indicator creates a line that moves above or below the price as a function of the Average True Range (ATR), indicating the direction of the trend. The Super Trend is used both to determine the direction of the trend and to identify potential entry and exit points.
The Super Trend indicator is based on two main parameters: a period of the ATR and a multiplier. The indicator measures the volatility of price movements over the specified ATR period and applies a multiplier based on this volatility. Then, this calculated value is placed above or below the price to determine the direction of the trend. If the price is above the line, the market is considered to be in an uptrend, and if below, in a downtrend.
Buy and Sell signals were written in the most compatible way with harmonic formations for the Super Trend ATR and adjusted according to the most accurate areas of Fibonacci values. Thus, if the signal following the formation of harmonic formations is entering an uptrend or downtrend, it helps us find the most suitable entry and exit points.
- Zigzag Indicator
The Zigzag indicator is a tool that filters out minor price fluctuations and noise to better see the direction of price movements. This indicator ignores price movements until they reach a specified percentage change and only connects the movements that exceed this change with a line. As a result, investors can more easily identify the main trends and potential reversal points in the market.
The Zigzag indicator is particularly effective in identifying the maximum and minimum points in the market and when used in conjunction with other technical analysis tools like Fibonacci retracement.
Pivot Points
Pivot points are a type of indicator used to determine the general trend of the market. This calculation is made using the high, low, and closing prices of the previous period. The basic pivot point is calculated by taking the average of these three values. Around this basic pivot point, resistance and support levels are also calculated. Resistance levels represent potential obstacles that the price may encounter moving upwards, while support levels represent potential "floor" areas when the price is moving downwards.
Pivot points are especially useful for daily trading activities because traders can use these points to predict the likely direction of market movements within the day. These points can also serve as potential buying and selling areas.
Both indicators assist investors and traders in analyzing market movements and making decisions, but it is always recommended to use them in conjunction with other analysis methods and consider market conditions.
Komut dosyalarını "Buy sell" için ara
OBV 1min Volume SqueezeIn the vast realm of trading strategies, few terms evoke as much intrigue as the word "squeeze." It conjures images of pent-up energy, ready to burst forth in a sudden and decisive move. In this blog post, we'll delve into a new trading idea titled the "OBV 1-Minute Volume Squeeze" which aims to catch bigger market movements by fetching 1 minute OBV data on higher time charts.
The Essence of Squeeze
In trading parlance, a "squeeze" typically denotes a scenario where volatility contracts, and prices consolidate within a narrow range. Translating this concept to volume dynamics, a "volume squeeze" suggests a period of compressed volume activity. It is unclear if the Bulls or the Bears are at winning hand and price is thus consolidating. The script calculates buying and selling pressure by fetching 1 min data. The total volume presure is the sum of absolute values of the buying and selling pressure added up. By deviding the Buying volume by the total volume we know the Buying Pressure.
The trading theory suggest that when the buying pressure exceeds a certain value eg. 50% (default value in the script is 55%) it is likely the trend will continue to go up for a longer period of time. Vice Versa when selling pressure is higher, the trend is likely to continue down. In the script you can adjust the sensitivity in such way a higher "Volume Pressure %" result in less trading signals.
Fetching 1 min data
The OBV is a wonderful indicator to measure the buying and selling pressure. A disadvantage of the script is that the total volume pressure is presented as a positive (buying) or negative value (selling) value in the Oscillator. It does not offset the Bulls power against the Bears power at given time. The script aims to do measure the directional volume power by defining a volume pressure % (oulier value) by fetching 1 min OBV data on higher time frame charts comparing the Bulls power against the Bears Power. The code is included below:
// Fetch Lower Timeframe Data in an array
// nV = ZeroValue, sV = Selling Volume, bV = Buying Volume, tV = Total Volume
= request.security_lower_tf(syminfo.tickerid, '1', )
sum_bV_Lengthbars = array.sum(bV)
sum_sV_Lengthbars = array.sum(sV)
sum_tV_Lengthbars = sum_bV_Lengthbars + sum_sV_Lengthbars // Combine buying and selling volumes to get total volume
// Calculate buying and selling volume as percentage of the total volume, but ensure the denominator isn't zero.
buying_percentage = sum_tV_Lengthbars != 0 ? sum_bV_Lengthbars / sum_tV_Lengthbars * 100 : na
selling_percentage = sum_tV_Lengthbars != 0 ? -(sum_sV_Lengthbars / sum_tV_Lengthbars * 100) : na
OBV Oscillator Explanation
The On Balance Volume (OBV) indicator is a technical analysis tool used to measure buying and selling pressure in the market. It does this by keeping a running total of volume flows. OBV is typically calculated by adding the volume on a candle when the price closes higher than the previous candle's close and subtracting the volume on candles when the price closes lower than the previous candles close. If the price closes unchanged from the previous candle, the volume is not added to or subtracted from the OBV. The OBV can be presented as an oscillator. Positve value is the buying pressure and negative values is the selling pressure. In the settings the OBV is calculated based on 1 min data and comes with the following input options for visualization on the chart:
Higher Time Frame Settings (make sure the HTF is higher than the chart you have open)
Type of MA being: EMA, DEMA, TEMA, SMA, WMA, HMA, McGinley
Volume Pressure % (outlier value)
Length of number of bars (of the choosen HTF settings)
Smoothing of number candles of hte opened timechart. Note that higher number of bars to smoothen the indicator results in less signals, but lag of the indicator increases.
The Oscilator contains 3 main lines which are used to determin the entry signals:
Orange Line = the Outlier value in settings described as "Volume Pressure %"
Green Line = Total Buying Pressure OBV
Red Line = Total Selling Pressure OBV
If the Green or Red line is in between the zero line and the orange line the volume is squeezed and waiting for a directional break out.
If the Green line crosses over the orange line the buying pressure is > 55% and triggers a long entry position (green dot). If the Red line crosses under the orange line the selling pressure is > 55% and triggers an short entry (red dot). In the strategy settings this option is called: "Wait for total volume to increase?".
Alternative Strategy Options
In order to play around with different settings users can opt for two more strategy entry settings, called:
"Wait for total volume to deacrease?" --> Only gives a signal when total volume is declining, but buying or selling pressure maintains and crosses % threshold.
"Wait for Pull Back?" --> After a pullback occured and opposite buy/sell pressure gets lower than threshold (direction is shifting)
Turning on all options will logically result into more signals. Note these strategy ideas are experimental and can best be used in confirmation with other indicators.
Moving Average Filter (HTF)
The Oscillator has a horizontal line at the bottom. The line is green when the moving average is in a uptrend and red when the moving average is in a downtrend. The MA Filter comes with the following settings:
Higher Time Frame Setting
Type of MA being: EMA, DEMA, TEMA, SMA, WMA, HMA, McGinley
Length of number of bars (of the choosen HTF settings)
At last I hope you like this volume trading idea and if you have any comments let me know!
VWAP RangeThe VWAP Range indicator is a highly versatile and innovative tool designed with trading signals for trading the supply and demand within consolidation ranges.
What's a VWAP?
A VWAP (Volume Weighted Average Price) represents an equilibrium point in the market, balancing supply and demand over a specified period. Unlike simple moving averages, VWAP gives more weight to periods with higher volume. This is crucial because large volumes indicate significant trading activity, often by institutional traders, whose actions can reflect deeper market insights or create substantial market movements. The VWAP is also often used as a benchmark to evaluate the efficiency of executed trades. If a trader buys below the VWAP and sells above it, they are generally considered to have transacted favourably.
This is how it works:
Multiple VWAP Anchors:
This indicator uses multiple VWAPs anchored to different optional time periods, such as Daily, Weekly, Monthly, as well as to the highest high a lowest low within those periods. This multiplicity allows for a comprehensive view of the market’s average price based on volume and price, tailored to different trading styles and strategies.
Dynamic and Fixed Periods:
Traders can choose between using dynamic ranges, which reset at the start of each selected period, and specifying a date and time for a particular fixed range to trade. This flexibility is crucial for analyzing price movements within specific ranges or market phases.
Fixed ranges allow VWAPs to be calculated and anchored to a significant market event, the beginning of a consolidation phase or after a major news announcement.
Signal Generation:
The indicator generates buy and sell signals based on the relationship of the price to the VWAPs. It also allows for setting a maximum number of signals in one direction to avoid overtrading or pyramiding. Be sure to wait for the candle close before trading on the signals.
Average Buy/Sell Signal Lines:
Lines can be plotted to display the average buy and sell signal prices. The difference between the lines shows the average profit per trade when trading on the signals in that range. It's a good way to see how profitable a range is on average without backtesting the signals. The lines will also often turn into support and resistance areas, similar to value areas in a volume profile.
Customizable Settings:
Traders have control over various settings, such as the VWAP calculation method and bar color. There are also tooltips for every function.
Hidden Feature:
There's a subtle feature in this indicator: if you have 'Indicator values' turned on in TradingView, you'll see a Sell/Buy Ratio displayed only in the status line. This ratio indicates whether there are more sell signals than buy signals in a range, regardless of the Max Signals setting. A red value above 1 suggests that the market is trending upward, indicating you might want to hold your long positions a bit longer. Conversely, a green value below 1 implies a downward trend.
Digital Market Insight's Dream IndicatorWhy the Digital Market Insight’s Dream Indicator Blends Sixteen Technical Indicators
Analyzing markets can be overwhelming with so many technical indicators available. Choosing the right ones and combining them effectively can be a challenge. This indicator simplifies this by leveraging the power of collaboration.
Unleashing the power of automation, Digital Market Insight's Dream Indicator simplifies both day trading and long-term investing by automatically generating buy and sell signals.
This user-friendly indicator simplifies everything, making it easy to identify profitable trades where other indicators usually fall short.
Instead of relying on a few popular indicators, the Digital Market Insight’s Dream Indicator incorporates sixteen diverse metrics. Each offers unique insights into different aspects of market behavior, giving you a complete picture that goes beyond what any single indicator can provide.
Combining indicators that analyze trends, momentum, volume, and volatility allows you to see the market from different angles. This combination creates a powerful tool that can uncover opportunities missed by traditional indicators.
Digital Market Insight’s Dream Indicator uses sophisticated algorithms to balance the influence of each individual indicator. This ensures that no single metric dominates the analysis, providing a more objective perspective.
In short, Digital Market Insight’s Dream Indicator makes the complex task of choosing and combining indicators seamless and automated. This allows traders of all experience levels to benefit from powerful technical analysis, unlocking potentially profitable opportunities they might have missed otherwise.
Leveraging sixteen popular technical indicators, the Dream Indicator from Digital Market Insight meticulously dissects trends, momentum, volume, and volatility to offer comprehensive market insights. Inspired by the Relative Strength Index (RSI), it scales these indicators and identifies breakouts with optimized overbought and underbought thresholds. This combined data is compared to the security, generating a divergence line. The line's magnitude and speed are monitored, leading to the creation of buy and sell signals.
The following is a list of the sixteen indicators that it tracks:
• Parabolic SAR
• Directional Movement Index
• Chande Momentum Oscillator
• Commodity Channel Index
• Volume-Weighted Average Price
• On-Balanced Volume
• Money Flow Index
• Relative Strength Index
• Moving average convergence divergence
• Bollinger Band
• Stochastic
• True Strength Index
• Chaikin Money Flow
• Williams %R
• Sentiment
• Supertrend
While the combination of technical indicators is intriguing, the Dream Indicator's true power lies in its dynamic false signal suppression settings. This system can adapt to frequent market changes in real-time, allowing for a nuanced understanding of market direction. Imagine a rapid price swing triggered by a news announcement. While other indicators provide static signals, the Dream Indicator takes a dynamic approach. By offering multiple adjustable factors, it allows users to customize the indicator to their specific needs and preferences, potentially revealing deeper insights into market trends.
The following is the list of suppression settings:
• Suppress Using an SMA Window? Size?
This suppresses when the security price varies outside a simple moving average window. The window size can be adjusted.
• Suppress Using Supertrend Direction? Factor?
This suppresses when the Supertrend’s direction, increasing or decreasing, is contrary to the security’s gain. The Supertrends factor can be adjusted.
• Suppress Using Security ROC? ROC?
This suppresses when the security’s rate of change (ROC) is above a selectable value.
• Suppress Unfavorable Convergence/Divergence?
The buy alert is suppressed when the faster exponential moving average is less than the slower exponential moving average for both the sentiment and standard MACD. The sell alert is suppressed when the slower exponential moving average is less than the faster exponential moving average for both the sentiment and standard MACD.
• Suppress Unfavorable Trending Sentiment?
This suppresses buy alerts when the sentiment value is lowering and its value is currently below zero. This suppresses sell alerts when the sentiment value is rising and its value is currently above zero.
• Suppress Using Contrary Accumulated Forecast?
Suppress when the combined buy/sell signal is contrary to the security trend.
• Don’t Suppress First Alert?
Always Display First Alert.
How to use:
1. Activate the Indicator:
• Add the Digital Market Insight’s Dream Indicator.
• Select a security.
• Adjust the Alert Frequency, if desired.
• Configure the ATR Multiplier for optimal trailing stop orders, if desired.
2. Set audible alerts, if desired:
1. Select a security and adjust settings if you haven’t yet.
2. Select Alert at the top of the TradingView window or press + .
3. Select Digital Market Insight’s Dream Indicator across from Condition.
4. Select Alert for Buy across from Condition.
5. Select Once Per Bar Close across from Trigger.
6. Select Notifications at the top of the Create Alert window.
7. Select the Play sound checkbox.
8. Select the Create button at the bottom of the Create Alert window.
9. Repeat steps 2–8, substituting Alert for Sell in step 4.
3. Watch displayed information for opportunities:
• Circle Alerts: Green circles indicate buy signals, red ones signal sell opportunities. Larger circles are audible, providing immediate trading prompts.
• SMA Gain: This metric reflects the average profit potential per trade, assuming a sideways trend.
4. Utilize False-Signal Suppression:
• Select the appropriate false-signal suppression methods based on your trading strategy and risk tolerance.
• Monitor the SMA Gain and Circle Alerts as you adjust these settings to see their impact.
• Eliminate misleading signals and gain a clearer picture of the market.
5. Combine with Other Indicators:
• Consider displaying the Sentiment MACD and Divergence RSI for further insights.
• Utilize these additional indicators alongside Dream Indicator's signals for a more comprehensive analysis.
The following describes the displayed information and how to use it. It is in three levels: location/displayed text/description.
Upper Left/Week:/
Displays week gain.
Upper Left/Day:/
Displays day’s gain.
Upper Left/SMA:/
Displays SMA’s gain. The SMA gain is calculated from the average difference between the buy and sell alerts and a simple moving average. This makes it easy to compare differences between securities and setting changes. Basically, the SMA gain is the average profit that can be expected from a single buy sell trade, assuming that the security is trending sideways. Note: With a free TradingView account, the data will be limited, and therefore this value will be less accurate.
Upper Center/Misc. text/
A variety of security information is displayed here, including description, country, type, sector, and industry. The analyst's recommendation is also displayed when selected in the settings section.
Upper Right/ #🕪⚠:/
Displays number of audible alerts. This shows how many audible alerts you’ll get per day on average for the selected security. You will see this number change as you adjust the Alert Frequency setting in the indicator settings section.
Lower Right/ ATR × X.X:/
Displays the Average True Range (ATR) multiplied by a multiplier that is located in the indicator settings section. The upper and lower ATR values are also displayed. The Average True Range is a measure of price volatility and can be used for things like trailing stop orders. Place your stop-loss order a multiple of the ATR below your entry price for long trades and above your entry price for short trades. This will give your trade some room to breathe while still protecting you from significant losses. Adjust the multiple based on market volatility. In more volatile markets, use a larger multiple to account for potentially wider price swings.
The following is a description of important items in the indicator settings section:
--- MISC. SETTINGS ---
Alert Frequency
Alert Frequency will increase or decrease both the displayed alerts and audible alerts. This is one of the more important indicator settings and should be adjusted according to your investing style. If you have a large number of active alerts, you may want to reduce the alert frequency to avoid being overwhelmed. However, if you set this too low, you may miss some trading opportunities.
ATR Multiplier
The ATR multiplier is a multiplier for the Average True Range which is described above. It can help with finding trailing stop order values.
Use Sentiment Coloring
This changes the color of some graphs to a color gradient, indicating the security's sentiment, and may help you identify trend changes.
Sentiment Calc Index
This setting mainly affects the sentiment color scheme and the displayed sentiment graph. Adjust it to match the index in which the security is traded. You can find it at the top left of the TradingView window.
Display Analyst’s Recommendations
This will display the analyst's recommendations and could be handy when unsure whether a security is worth investing in. :-)
--- GRAPH DISPLAY SETTINGS ---
These are additional graphs that can be displayed and can be a valuable addition to your investing. Consider displaying the Sentiment MACD and the Divergence RSI which are both variations of the standard MACD and RSI indicators.
--- FALSE ALERT SUPPRESSION ---
These settings will allow suppression of false signals and are an important feature of this indicator. They will manipulate the gain. Watch the displayed SMA Gain and Circle Alerts as you toggle some of these settings. Some Circle Alerts will appear or vanish, and the SMA Gain will change. Remember, the larger circle alerts are the only ones that will be audible. Both small and large circles indicate a buy or sell alert: green for buy and red for sell.
Disclaimer:
This is not Investment Advice. Trading involves inherent risks, and all decisions should be made at your own discretion.
YinYang TrendTrend Analysis has always been an important aspect of Trading. There are so many important types of Trend Analysis and many times it may be difficult to identify what to use; let alone if an Indicator can/should be used in conjunction with another. For these exact reasons, we decided to make YinYang Trend. It is a Trend Analysis Toolkit which features many New and many Well Known Trend Analysis Indicators. However, everything in there is added specifically for the reason that it may work well in conjunction with the other Indicators prevalent within. You may be wondering, why bother including common Trend Analysis, why not make everything unique? Ideally, we would, however, you need to remember Trend Analysis may be one of the most common forms of charting. Therefore, many other traders may be using similar Trend Analysis either through plotting manually or within other Indicators. This all boils down to Psychology; you are trading against other traders, who may be seeing some of the similar information you are, and therefore, you may likewise want to see this information. What affects their trading decisions may affect yours as well.
Now enough about Trend Analysis, what is within this Indicator, and what does it do? Well, first let’s quickly mention all of its components, then we will, through a Tutorial, discuss each individually and finally how each comes together as a cohesive whole. This Indicator features many aspects:
Bull and Bear Signals
Take Profit Signals
Bull and Bear Zones
Information Tables displaying: (Boom Meter, Bull/Bear Strength, Yin/Yang State)
16 Cipher Signals
Extremes
Pivots
Trend Lines
Custom Bollinger Bands
Boom Meter Bar Colors
True Value Zones
Bar Strength Indexes
Volume Profile
There are many things to cover within our Tutorial so let's get started, chronologically from the list above.
Tutorial:
Bull and Bear Signals:
We’ve zoomed out quite a bit for this example to help give you a broader aspect of how these Bull and Bear signals work. When a signal appears, it is displaying that there may be a large amount of Bullish or Bearish Trend Analysis occurring. These signals will remain in their state of Bull or Bear until there is enough momentum change that they change over. There are a couple Options within the Settings that dictate when/where/why these signals appear, and this example is using their default Settings of ‘Medium’. They are, Purchase Speed and Purchase Strength. Purchase Speed refers to how much Price Movement is needed for a signal to occur and Purchase Strength refers to how many verifications are required for a signal to occur. For instance:
'High' uses 15 verifications to ensure signal strength.
'Medium' uses 10 verifications to ensure signal strength.
'Low' uses 5 verifications to ensure signal strength.
'Very Low' uses 3 verifications to ensure signal strength.
By default it is set to Medium (10 verifications). This means each verification is worth 10%. The verifications used are also relevant to the Purchase Speed; meaning they will be verified faster or slower depending on its speed setting. You may find that Faster Speeds and Lower Verifications may work better on Higher Time Frames; and Slower Speeds and Higher Verifications may work better on Lower Time Frames.
We will demonstrate a few examples as to how the Speed and Strength Settings work, and why it may be beneficial to adjust based on the Time Frame you’re on:
In this example above, we’ve kept the same Time Frame (1 Day), and scope; but we’ve changed Purchase Speed from Medium->Fast and Purchase Strength from Medium-Very Low. As you can see, it now generates quite a few more signals. The Speed and Strength settings that you use will likely be based on your trading style / strategy. Are you someone who likes to stay in trades longer or do you like to swing trade daily? Likewise, how do you go about identifying your Entry / Exit locations; do you start on the 1 Day for confirmation, then move to the 15/5 minute for your entry / exit? How you trade may determine which Speed and Strength settings work right for you. Let's jump to a lower Time Frame now so you can see how it works on the 15/5 minute.
Above is what BTC/USDT looks like on the 15 Minute Time Frame with Purchase Speed and Strength set to Medium. You may note that the signals require a certain amount of movement before they get started. This is normal with Medium and the amount of movement is generally dictated by the Time Frame. You may choose to use Medium on a Lower Time Frame as it may work well, but it may also be best to change it to a little slower.
We are still on the 15 Minute Time Frame here, however we simply changed Purchase Speed from Medium->Slow. As you can see, lots of the signals have been removed. Now signals may ‘hold their ground’ for much longer. It is important to adjust your Purchase Speed and Strength Settings to your Time Frame and personalized trading style accordingly.
Above we have now jumped down to the 5 Minute Time Frame. Our Purchase Speed is Slow and our Purchase Strength is Medium. We can see it looks pretty good, although there is some signal clustering going on in the middle there. If we change our Settings, we may be able to get rid of that.
We have changed our Purchase Speed from Slow->Snail (Slowest it can go) and Purchase Strength from Medium->Very Low (Lowest it can go). Changing it from Slow-Snail helped get rid of the signal clustering. You may be wondering why we lowered the Strength from Medium->Very Low, rather than going from Medium->High. This is a use case scenario and one you’ll need to decide for yourself, but we noticed when we changed the Speed from Slow->Snail that the signal clustering was gone, so then we checked both High and Very Low for Strengths to see which produced the best looking signal locations.
Please remember, you don’t have to use it the exact way we’ve displayed in this Tutorial. It is meant to be used to suit your Trading Style and Strategy. This is why we allow you to modify these settings, rather than just automating the change based on Time Frames. You’ll likely need to play around with it, as you’ll notice different settings may work better on certain pairs and Time Frames than others.
Take Profit Signals:
We’ve reset our Purchase Settings, everything is on defaults right now at Medium. We’ve enabled Take Profit signals. As you can see there are both Take Profit signals for the Bulls and the Bears. These signals are not meant to be used within automation. In fact, none of this indicator is. These signals are meant to show there has been a strong change in momentum, to such an extent that the signal may switch from its current (Bull or Bear) and now may be a good time to Take Profit. Your Take Profit Settings likewise has a Speed and Strength, and you can set them differently than your Purchase Settings. This is in case you want to Take Profit in a different manner than your Purchase Signals. For instance:
In the example above we’ve kept Purchase Strength and Speed at Medium but we changed our Take Profit Speed from Medium->Snail and our Take Profit Strength from medium->Very Low. This greatly reduces the amount of Take Profit signals, and in some cases, none are even produced. This form of Take Profit may act more as a Trailing Take Profit that if it’s not hit, nothing appears.
In this example we have changed our Purchase Speed from Medium->Fast, our Purchase Strength from Medium->Very Low. We’ve also changed our Take Profit Speed from Snail->Medium and kept our Take Profit Strength on Very Low. Now we may get our signals quicker and likewise our Take Profit may be more rare. There are many different ways you can set up your Purchase and Take Profit Settings to fit your Trading Style / Strategy.
Bull and Bear Zones:
We have disabled our Take Profit locations so that you can see the Bull and Bear Zones. These zones change color when the Signals switch. They may represent some strong Support and Resistance locations, but more importantly may be useful for visualizing changes in momentum and consolidation. These zones allow you to see various Moving Averages; and when they start to ‘fold’ (cross) each other you may see changes in momentum. Whereas, when they’re fully stretched out and moving all in the same direction, it can provide insight that the current rally may be strong. There is also the case where they look like they’re ‘twisted’ together. This happens when all of the Moving Averages are very close together and may be a sign of Consolidation. We will go over a few examples of each of these scenarios so you can understand what we’re referring to.
In this example above, there are a few different things happening. First we have the yellow circle, where the final and slowest Moving Average (MA) crossed over and now all of the MA’s that form the zone are Bullish. You can see this in the white circle where there are no MA’s that are crossing each other. Lastly, within the blue circle, we can see how some of the faster MA’s are crossing under each other. This is a bullish momentum change. The Faster moving MA’s will always be the first ones to cross before the Slower ones do. There is a color scheme in place here to represent the Speed of the MA within the Zone. Light blue is the fastest moving Bull color -> Light Green and finally -> Dark Green. Yellow is the fastest moving Bear color -> Orange and finally -> Red / Dark Red within the Zone.
Next we will review a couple different examples of what Consolidation looks like and why it is very important to look out for. Consolidation is when Most, if not All of the MA’s are very tightly ‘twisted’ together. There is very little spacing between almost all of the MA’s in the example above; highlighted by the white circle. Consolidation is important as it may indicate a strong price movement in either direction will occur soon. When the price is consolidating it means it has had very little upwards or downwards movement recently. When this happens for long enough, MA’s may all get very similar in value. This may cause high volatility as the price tries to break out of Consolidation. Let's look at another example.
Above we have two more examples of what Consolidation looks like and how high Volatility may occur after the Consolidation is broken. Please note, not all Consolidation will create high Volatility but it is something you may want to look out for.
Information Tables displaying: (Boom Meter, Bull/Bear Strength, Yin/Yang State):
Information tables are a very important way of displaying information. It contains 3 crucial pieces of information:
Boom Meter
Bull/Bear Strength
Yin/Yang State
Boom Meter is a meter that goes from 0-100% and displays whether the current price is Dumping (0 - 29%), Consolidating (30 - 70%) or Pumping (71 - 100%). The Boom Meter is meant to be a Gauge to how the price is currently fairing. It is composed of ~50 different calculations that all vary different weights to calculate its %. Many of the calculations it uses are likewise used in other things, such as the Bull/Bear Strength, Bull/Bear Zone MA cross’, Yin/Yang State, Market Cipher Signals, RSI, Volume and a few others. The Boom Meter, although not meant to be used solely to make purchase decisions, may give you a good idea of current market conditions considering how many different things it evaluates.
Bull/Bear Strength is relevant to your Purchase Speed and Strength. It displays which state it is currently in, and the % it is within that state. When a % hits 0, is when the state changes. When states change, they always start at 100% initially and will go down at the rate of Purchase Strength (how many verifications are needed). For instance, if your Purchase Strength is set to ‘Medium’ it will move 10% per verification +/-, if it is set to High, it will move 6.67% per verification +/-. Bull/Bear Strength is a good indicator of how well that current state is fairing. For instance if you started a Long when the state changed to Bull and now it is currently at Bull with 20% left, that may be a good indication it is time to get out (obviously refer to other data as well, but it may be a good way to know that the state is 20% away from transitioning to Bear).
Yin/Yang State is the strongest MA cross within our Indicator. It is unique in the sense that it is slow to change, but not so much that it moves slowly. It isn’t as simple as say a Golden/Death Cross (50/200), but it crosses more often and may hold similar weight as it. Yin stands for Negative (Bearish) and Yang stands for Positive (Bullish). The price will always be in either a state of Yin or Yang, and just because it is in one, doesn’t mean the price can’t/won’t move in the opposite direction; it simply means the price may be favoring the state it is in.
16 Cipher Signals:
Cipher Signals are key visuals of MA cross’ that may represent price movement and momentum. It would be too confusing and hard to decipher these MA’s as lines on a chart, and therefore we decided to use signals in the form of symbols instead. There are 12 Standard and 4 Predictive/Confirming Cipher signals. The Standard Cipher signals are composed of 6 Bullish and 6 Bearish (they all have opposites that balance each other out). There can never be 2 of the same signal in a row, as the Bull and Bear cancel each other out and it's always in a state of one or the other. When all 6 Bullish or Bearish signals appear in a row, very closely together, without any of the opposing signals it may represent a strong momentum movement is about to occur.
If you refer to the example above, you’ll see that the 6 Bullish Cipher signals appeared exactly as mentioned above. Shortly after the Green Circle appeared, there was a large spike in price movement in favor of the Bulls. Cipher signals don’t need to appear in a cluster exactly like the white circle in this photo for momentum to occur, but when it does, it may represent volatility more than if it is broken up with opposing signals or spaced out over a longer time span.
Above is an example of the opposite, where all 6 Bearish Cipher signals appeared together without being broken by a Bullish Cipher signal or being too far spaced out. As you can see, even though past it there was a few Bullish signals, they were quickly reversed back to Bearish before a large price movement occurred in favor of the Bears.
In the example above we’ve changed Cipher signals to Predictive and Confirming. Support Crosses (Green +) and Blood Diamonds (Red ♦) are the normal Cipher Signals that appear within the Standard Set. They are the first Cipher Signal that appears and are the most common ones as well. However, just because they are the first, that doesn’t mean they aren’t a powerful Cipher signal. For this reason, there are Predictive and Confirming Cipher signals for these. The Predictive do just that, they appear slightly sooner (if not the same bar) as the regular and the Confirming appear later (1+ bars usually). There will be times that the Predictive appears, but it doesn’t resort to the Regular appearing, or the Regular appears and the Confirming doesn’t. This is normal behavior and also the purpose of them. They are meant to be an indication of IF they may appear soon and IF the regular was indeed a valid signal.
Extremes:
Extremes are MA’s that have a very large length. They are useful for seeing Cross’ and Support and Resistance over a long period of time. However, because they are so long and slow moving, they might not always be relevant. It’s usually advised to turn them on, see if any are close to the current price point, and if they aren’t to turn them off. The main reason being is they stretch out the chart too much if they’re too far away and they also may not be relevant at that point.
When they are close to the price however, they may act as strong Support and Resistance locations as circled in the example above.
Pivots:
Pivots are used to help identify key Support and Resistance locations. They adjust on their own in an attempt to keep their locations as relevant as possible and likewise will adjust when the price pushes their current bounds. They may be useful for seeing when the Price is currently testing their level as this may represent Overbought or Oversold. Keep in mind, just because the price is testing their levels doesn’t mean it will correct; sometimes with high volatility or geopolitical news, movement may continue even if it is exhibiting Overbought or Oversold traits. Pivots may also be useful for seeing how far the price may correct to, giving you a benchmark for potential Take Profit and Stop Loss locations.
Trend Lines:
Trend Lines may be useful for identifying Support and Resistance locations on the Vertical. Trend Lines may form many different patterns, such as Pennants, Channels, Flags and Wedges. These formations may help predict and drive the price in specific directions. Many traders draw or use Indicators to help create Trend Lines to visualize where these formations will be and they may be very useful alone even for identifying possible Support and Resistance locations.
If you refer to the previous example, and now to this example, you’ll notice that the Trend Line that supported it in 2023 was actually created in June 2020 (yellow circle). Trend Lines may be crucial for identifying Support and Resistance locations on the Vertical that may withhold over time.
Custom Bollinger Bands:
Bollinger Bands are used to help see Movement vs Consolidation Zones (When it's wide vs narrow). It's also very useful for seeing where the correction areas may be. Price may bounce between top and bottom of the Bollinger Bands, unless in a pump or dump. The Boom Meter will show you whether it is currently: Dumping, Consolidation or Pumping. If combined with Boom Meter Bar Colors it may be a good indication if it will break the Bollinger Band (go outside of it). The Middle Line of the Bollinger Band (White Line) may be a very strong support / resistance location. If the price closes above or below it, it may be a good indication of the trend changing (it may indicate one of the first stages to a pump or dump). The color of the Bollinger Bands change based on if it is within a Bull or Bear Zone.
What makes this Bollinger Band special is not only that it uses a custom multiplier, but it also incorporates volume to help add weight to the calculation.
Boom Meter Bar Colors:
Boom Meter Bar Colors are a way to see potential Overbought and Oversold locations on a per bar basis. There are 6 different colors within the Boom Meter bar colors. You have:
Overbought and Very Bullish = Dark Green
Overbought and Slightly Bullish = Light Green
Overbought and Slight Bearish = Light Red
Oversold and Very Bearish = Dark Red
Oversold and Slightly Bearish = Orange
Oversold and Slightly Bullish = Light Purple
When there is no Boom Meter Bar Color prevalent there won’t be a color change within the bar at all.
Just because there is a Boom Meter Bar Color change doesn’t mean you should act on it purchase or sell wise, but it may be an indication as to how that bar is fairing in an Overbought / Oversold perspective. Boom Meter Bar Colors are mainly based on RSI but do take in other factors like price movement to determine if it is Overbought or Oversold. When it comes to Boom Meter Bar Color, you should take it as it is, in the sense that it may be useful for seeing how Individual bars are fairing, but also note that there may be things such as:
When there is Very Overbought (Dark Green) or Very Oversold (Dark Red), during massive pump or dumps, it will maintain this color. However, once it has lost ‘some’ momentum it will likely lose this color.
When there has been a massive Pump or Dump, and there is likewise a light purple or light red, this may mean there is a correction or consolidation incoming.
True Value Zones:
True Value zones are our custom way of displaying something that is similar to a Bollinger Band that can likewise twist like an MA cross. The main purpose of it is to display where the price may reside within. Much like a Bollinger Band it has its High and Low within its zone to specify this location. Since it has the ability to cross over and under, it has the ability to specify what it thinks may be a Bullish or Bearish zone. This zone uses its upper level to display what may be a Resistance location and its lower level to display what may be a Support location. These Support and Resistance locations are based on Momentum and will move with the price in an attempt to stay relevant.
You may use these True Values zones as a gauge of if the price is Overbought or Oversold. When the price faces high volatility and moves outside of the True Value Zones, it may face consolidation or likewise a correction to bring it back within these zones. These zones may act as a guideline towards where the price is currently valued at and may belong within.
Bar Strength Indexes:
Bar Strength Indexes are our way of ranking each bar in correlation to the last few. It is based on a few things but is highly influenced on Open/Close/High/Low, Volume and how the price has moved recently. They may attempt to ‘rate’ each bar and how Bullish/Bearish each of these bars are. The Green number under the bar is its Bullish % and the Red number above the bar is its Bearish %. These %’s will always equal 100% when combined together. Bar Strength Indexes may be useful for seeing when either Bullish or Bearish momentum is picking up or when there may be a reversal / consolidation.
These Bar Strength Indexes may allow you to decipher different states. If you refer to the example above, you may notice how based on how the numbers are changing, you may see when it has entered / exited Bullish, Bearish and Consolidation. Likewise, if you refer to the current bar (yellow circle), you can see that the Bullish % has dropped from 93 to 49; this may be signifying that the Bullish movement is losing momentum. You may use these changes in Bar Indexes as a guide to when to enter / end trades.
Volume Profile:
Volume Profile has been something that has been within TradingView for quite some time. It is a very useful way of seeing at what Horizontal Price there has been the most volume. This may be very useful for seeing not only Support and Resistance locations based on Volume, but also seeing where the majority of Limit Orders are placed. Limit Orders are where traders decide they want to either Buy / Sell but have the order placed so the trade won’t happen until the price reaches a certain amount. Either through many orders from many traders, or a single order from a ‘Whale’ (trader with a lot of capital); you may see Support and Resistance at specific Price Points that have large Volume.
Many Volume Profile Indicators feature a breakdown of all the different locations of volume, along with a Point Of Control (POC) line to designate where the most Volume has been. To try and reduce clutter within our already very saturated Toolkit Indicator, we’ve decided to strip our Volume Profile to only display this POC line. This may allow you to see where the crucial Volume Support and Resistance is without all of the clutter.
You may be wondering, well how important is this Volume Profile POC line and how do I go about using it? Aside from it being a gauge towards where Support and Resistance may be within Volume, it may also be useful for identifying good Long/Short locations. If you think of the line as a ‘Battle’ between the Bulls and Bears, they’re both fighting over that line. The Bears are wanting to break through it downwards, and the Bulls are wanting to break through it upwards. When one side has temporarily won this battle, this means they may have more Capital to push the price in their direction. For instance, if both the Bulls and the Bears are fighting over this POC price, that means the Bears think that price is a good spot to sell; however, the Bulls also deem that price to be a good point to buy. If the Bulls were to win this battle, that means the Bears either canceled their orders to reevaluate, or all of their orders have been completed from the Bulls buying them all. What may happen after that is, if the Bulls were able to purchase all of these Limit Sell Orders, then they may still have more Capital left to continue to pressure the price upwards. The same may be true for if the Bears were to win this ‘Battle’.
How to use YinYang Trend as a cohesive whole:
Hopefully you’ve read and understand how each aspect of this Indicator works on its own, as knowing how/what they each do is important to understanding how it is used as a cohesive whole. Due to the fact that this Toolkit of an Indicator displays so much data, you may find it easier to use and understand when you’re zoomed in a little, somewhat like we are in this example above.
If we refer to the example above, you may like us, deduce a few things:
1. The current price may be VERY Overbought. This may be seen by a few different things:
The Boom Meter Bar Colors have been exhibiting a Dark Green color for 6 bars in a row.
The price has continuously been moving the High (red) Pivot Upwards.
Our Boom Meter displays ‘Pumping’ at 100%.
The price broke through a Downward Trend Line that was created in February of 2022 at 45,000 like it was nothing.
The Bar Strength Index hit a Bullish value of 93%.
The Price broke out of the Bollinger Bands and continues to test its upper levels.
The Low is much greater than our fastest moving MA that creates the Purchase Zones.
The Price is vastly outside of the True Value Zone.
The Bar Strength Index of our current bar is 50% bullish, which is a massive decrease from the previous bar of 93%. This may indicate that a correction is coming soon.
2. Since we’ve identified the current price may be VERY Overbought, next we need to identify if/when/to where it may correct to:
We’ve created a new example here to display potential correction areas. There are a few places it has the ability to correct to / within:
The downward Trend Line (red) below the current bar sitting currently at 32,750. This downward Trend Line is at the same price point as the Fastest MA of our Purchase Zone which may provide some decent Support there.
Between two crucial Pivot heights, within a zone of 30,000 to 31,815. This zone has the second fastest MA from the Purchase Zone right near the middle of it at 31,200 which may act as a Support within the Zone. Likewise there is the Bollinger Band Basis which is also resting at 30,000 which may provide a strong Support location here.
If 30,000 fails there may be a correction all the way to the bottom of our True Value Zone and the top of one of our Extremes at 27,850.
If 27,850 fails it may correct all the way to the bottom of our Purchase Zone / lowest of our Extremes at 27,350.
If all of the above fails, it may test our Volume Profile POC of 26,430. If this POC fails, the trend may switch to Bearish and continue further down to lower levels of Support.
The price can always correct more than the prices mentioned above, but considering overall this Indicator is favoring the Bulls, we will tailor this analysis in Favor of the Bullish Momentum maintaining even during this correction. For these reasons, we think the price may correct between the 30,000 and 31,815 zone before continuing upwards and maintaining this Bullish Momentum.
Please note, these correction estimates are just that, they’re estimates. Aside from the fact that the price is very overbought right now and our Bar Strength Index may be declining (bar hasn’t closed yet); the Boom Meter Strength remains at 100%, meaning there may not be much Bearish momentum changes happening yet. We just want to show you how an Preemptive analysis may be done before there are even Bearish Cipher Signals appearing.
Using this Indicator, you may be able to decipher Entry and Exits. In the previous example, we went over how you may use it to see where a correction (Exit / Take Profit) may be and how far this correction may go. In this example above we will be discussing how to identify Entry locations. We will be discussing a Bullish Buy entry but the same rules apply for a Bearish Sell Entry just the opposite with the Cipher Signals.
If you refer to where we circled in white, this is where the Purchase Zones faced Consolidation. When the Purchase Zones all get tight and close together like that, this may represent Volatility and Momentum in either direction may occur soon.
This was then followed by all 6 of the Standard Cipher Signals closely in succession to each other. This means the Momentum may be favoring the Bulls. If this was likewise all 6 of the Bearish Cipher Signals closely in succession, than the momentum change would favor the Bears.
If you were looking for an entry, and you saw Consolidation with the Purchase Zones and then shortly after you saw the Green Circle and Blue Flag (they can swap order); this may now be a good Entry location.
We will conclude this Tutorial here. Hopefully this has taught you how this Trend Analysis Toolkit may help you locate multiple different types of important Support and Resistance locations; as well as possible Entry and Exit locations.
Settings:
1. Bull/Bear Zones:
1.1. Purchase Speed (Bull/Bear Signals and Take Profit Signals):
Speed determines how much price movement is needed for a signal to occur.
'Sonic' uses the extremities to try and get you the best entry and exit points, but is so quick, its speed may reduce accuracy.
'Fast' may attempt to capitalize on price movements to help you get SOME or attempt to lose LITTLE quickly.
'Medium' may attempt to get you the most optimal entry and exit locations, but may miss extremities.
'Slow' may stay in trades until it is clear that momentum has changed.
'Snail' may stay in trades even if momentum has changed. Snail may only change when the price has moved significantly (This may result in BIG gains, but potentially also BIG losses).
1.2. Purchase Strength (Bull/Bear Signals and Take Profit Signals):
Strength ensures a certain amount of verifications required for signals to happen. The more verifications the more accurate that signal is, but it may also change entry and exit points, and you may miss out on some of the extremities. It is highly advised to find the best combination between Speed and Strength for the TimeFrame and Pair you are trading in, as all pairs and TimeFrames move differently.
'High' uses 15 verifications to ensure signal strength.
'Medium' uses 10 verifications to ensure signal strength.
'Low' uses 5 verifications to ensure signal strength.
'Very Low' uses 3 verifications to ensure signal strength.
2. Cipher Signals:
Cipher Signals are very strong EMA and SMA crosses, which may drastically help visualize movement and help you to predict where the price will go. All Symbols have counter opposites that cancel each other out (YinYang). Here is a list, in order of general appearance and strength:
White Cross / Diamond (Predictive): The initial indicator showing trend movement.
Green Cross / Diamond (Regular): Confirms the Predictive and may add a fair bit of strength to trend movement.
Blue Cross / Diamond (Confirming): Confirms the Regular, showing the trend might have some decent momentum now.
Green / Red X: Gives momentum to the current trend direction, possibly confirming the Confirming Cross/Diamond.
Blue / Orange Triangle: may confirm the X, Possible pump / dump of decent size may be coming soon.
Green / Red Circle: EITHER confirms the Triangle and may mean big pump / dump is potentially coming, OR it just hit its peak and signifies a potential reversal correction. PAY ATTENTION!
Green / Red Flag: Oddball that helps confirm trend movements on the short term.
Blue / Yellow Flag: Oddball that helps confirm trend movements on the medium term (Yin / Yang is the long term Oddball).
3. Bull/Bear Signals:
Bear and Bull signals are where the momentum has changed enough based on your Purchase Speed and Strength. They generally represent strong price movement in the direction of the signal, and may be more reliable on higher TimeFrames. Please don’t use JUST these signals for analysis, they are only meant to be a fraction of the important data you are using to make your technical analysis.
4. Take Profit Signals:
Take Profit signals are guidelines that momentum has started to change back and now may be a good time to take profit. Your Take Profit signals are based on your Take Profit Speed and Strength and may be adjusted to fit your trading style.
5. Information Tables:
Information tables display very important data and help to declutter the screen as they are much less intrusive compared to labels. Our Information tables display: Boom Meter, Purchase Strength of Bull/Bear Zones and Yin/Yang State.
Boom Meter: Uses over 50 different calculations to determine if the pair is currently 'Dumping' (0-29%), 'Consolidating' (30-70%), or 'Pumping' (71-100%).
Bull / Bear Strength: Shows the strength of the current Bull / Bear signal from 0-100% (Signals start at 100% and change when they hit 0%). The % it moves up or down is based on your 'Purchase Strength'.
Yin / Yang state: Is one of the strongest EMA/SMA crosses (long term Oddball) within this Indicator and may be a great indication of which way the price is moving. Do keep in mind if the price is consolidating when changing state, it may have the highest chance of switching back also. Once momentum kicks in and there is price movement the state may be confirmed. Refer to other Cipher Symbols, Extremes, Trend, BOLL, Boom %, Bull / Bear % and Bar colors when Bull / Bear Zones are consolidating and Yin / Yang State changes as this is a very strong indecision zone.
6. Bull / Bear Zones:
Our Bull / Bear zones are composed of 8 very important EMA lengths that may act as not only Support and Resistance, but they help to potentially display consolidation and momentum change. You can tell when they are getting tight and close together it may represent consolidation and when they start to flip over on each other it may represent a change in momentum.
7. MA Extremes:
Our MA Extremes may be 3 of the most important long term moving averages. They don’t always play a role in trades as sometimes they’re way off from the price (cause they’re extreme lengths), but when they are around price or they cross under or over each other, it may represent large changes in price are about to occur. They may be very useful for seeing strong resistance / support locations based on price averages. Extremes may transition from a Support to a Resistance based on its position above or below them and how many times the price has either bounced up off them (Supporting) or Bounced back down after hitting them (Resistance).
8. Pivots:
Pivots may be a very important indicator of support and resistance for horizontal price movement. Pivots may represent the current strongest Support and Resistance. When the Pivot changes, it means a new strong Support or Resistance has been created. Sometimes you'll notice the price constantly pushes the pivot during a massive Pump or Dump. This is normal, and may indicate high levels of volatility. This generally also happens when the price is outside of the Bollinger Bands and is also Over or Undervalued. The price usually consolidates for a while after something like this happens before more drastic movement may occur.
9. Trend Lines:
Trend lines may be one of the best indicators of support and resistance for diagonal price movement. When a Trend Line fails to hold it may be a strong indication of a dump. Keep a close eye to where Upward and Downward Trend Lines meet. Trend lines can create different trading formations known as Pennants, Flags and Wedges. Please familiarize yourself with these formations So you know what to look for.
10. Bollinger Bands (BOLL):
Bollinger Bands may be very useful, and ours have been customized so they may be even more accurate by using a modified calculation that also incorporates volume.
Bollinger Bands may be used to see Movement vs Consolidation Zones (When it’s wide vs narrow). It also may be very useful for seeing where the correction areas are likely to be. Price may bounce between top and bottom of the BOLL, unless perhaps in a pump or dump. The Boom Meter may show you whether it is currently: Dumping, Consolidation or Pumping, along with Boom Meter Bar Colors, may be a good indication if it will break the BOLL. The Middle Line of the BOLL (White Line) may be a very strong support / resistance line. If the price closes above or below it, it may be a good indication of the trend changing (it may be one of the first stages to a pump or dump).
11. Boom Meter Bar Colors:
Boom Meter bar colors may be very useful for seeing when the bar is Overbought or Underbought. There are 6 different types of boom meter bar colors, they are:
Dark Green: RSI may be very Overbought and price going UP (May be in a big pump. NOTICE, chance of small dump correction if Cherry Red bar appears).
Light Green: RSI may be slightly Overbought and price going UP (chance of small pump).
Light Purple: RSI may be very Underbought and price going UP (May have chance of small correction).
Dark Red: RSI may be very Underbought and price going DOWN (May be in a big dump. NOTICE, chance of small pump correction if Light Purple bar appears).
Light Orange: RSI may be slightly Underbought and price going DOWN (chance of small dump).
Cherry Red: RSI may be very Overbought and price going DOWN (Chance of small correction).
12. True Value Zone:
True Value Zones display zones that represent ranges to show what the price may truly belong within. They may be very useful for knowing if the Price is currently not valued correctly, which generally means a correction may happen soon. True Value Zones can swap from Bullish to Bearish and are represented by Red for Bearish and Green for Bullish. For example, if the price is ABOVE and OUTSIDE of the True Value Zone, this means it may be very overvalued and might correct to go back inside the True Value Zone. This correction may be done by either dumping in price back into the zone, or consolidating horizontally back into it over a longer period of time. Vice Versa is also true if it is BELOW and OUTSIDE of the True Value Zone.
13. Bar Strength Index:
Bar Strength Index may display how Bullish/Bearish the current bar is. The strength is important to help see if a pump may be losing momentum or vice versa if a dump may correct. Keep in mind, the Bar Strength Index does a small 'refresh' to account for new bars. It may help to keep the Index more accurate.
14. Volume Profile:
Volume Profiles may be important to know where the Horizontal Support/Resistance is in Price base on Volume. Our Volume Profile may identify the point where the most volume has occurred within the most relevant timeframe. Volume Profiles are helpful at identifying where Whales have their orders placed. The reason why they are so helpful at identifying whales is when the volume is profiled to a specific area, there may likely be lots of Limit Buy and/or Sells around there. Limit Buys may act as Support and Limit Sells may act as Resistance. It may be very useful to know where these lie within the price, similar to looking at Order Book Data for Whale locations.
If you have any questions, comments, ideas or concerns please don't hesitate to contact us.
HAPPY TRADING!
G Channel with Arrows
1. Channel Calculation:
- The indicator calculates an upper channel ( `UpperBuffer` ) and a lower channel ( `LowerBuffer `) based on the input parameters `ChannelPeriod` .
- The channels are determined by a dynamic calculation that considers the current price ( `src` ) and the previous values of the upper and lower channels (` aBuffer` and `bBuffer` ).
2. Middle Channel:
- The middle channel ( `MiddleBuffer` ) is the average of the upper and lower channels, providing a central reference line.
3. Exponential Moving Average (EMA):
- The script calculates an Exponential Moving Average (`EMAValue`) based on the closing prices with a specified period (`EMAPeriod`).
4. Channel Plots:
- Plots for the upper, lower, and middle channels are displayed on the chart, each with a distinctive color and style.
5. Fill Between Channels:
- The space between the upper and middle channels is filled with a blue color (`#1900ff`), and the space between the lower and middle channels is filled with a red color (`#f70a0a`).
6. EMA Line:
- The EMA line is plotted on the chart in green.
7. Buy and Sell Signals:
- Buy signals ( `buySignal` ) are generated when the EMA crosses above the middle channel.
- Sell signals ( `sellSignal` ) are generated when the EMA crosses below the middle channel.
- Arrows are plotted at the respective locations of buy and sell signals.
8. Breakout Arrows:
- Additional arrows are plotted when the closing price breaks out above the upper channel (green arrow) or below the lower channel (red arrow).
9. User Input Parameters:
- Traders can customize the input parameters such as `ChannelPeriod` and `EMAPeriod` to adjust the sensitivity of the channels and the EMA.
Overall, the indicator provides traders with a visual representation of price channels, an EMA trend reference, and signals for potential buy/sell opportunities and breakout points. It can be used as part of a trading strategy to identify trends, reversals, and potential entry/exit points in the market.
Choose Symbol, candle and line modeThis indicator plots candlesticks or line charts based on user-specified symbol and price data in the time frame. The user can also choose whether this indicator works in normal mode or Heikin-Ashi mode. Here are the features of this indicator:
1. **Trend and Normal Modes:** User can choose to operate the indicator in two different modes. In "Trend Mode" the indicator plots the moving average of the price based on the specified period length. In the "Normal Mode", it draws the opening, high, low and closing prices similar to the Heikin-Ashi candlesticks.
2. **Time Zone Selection:** User can select a different time zone to operate this indicator. By default, the current chart timeframe is used.
3. **Symbol Selection:** The indicator uses the price data from the specified symbol. The user can specify the symbol in the format "SYMBOL:PAIR".
4. **Buy-Sell Signals:** The indicator identifies buy and sell signals based on a certain period length. A buy signal occurs when the price goes above the line, while a sell signal occurs when the price goes below the line.
5. **Buy-Sell Alerts:** Alerts are sent to the user for buying and selling signals.
6. **Display on Chart:** The indicator draws candlesticks or line chart with specified modes and colors. It also marks the buying and selling points on the chart.
This indicator is used to analyze price movements in the specified symbol and time frame and to assist in buying and selling decisions. It has a user-friendly and customizable interface.
It is for idea purposes only, does not contain investment advice.
Fusion: Machine Learning SuiteThe Fusion: Machine Learning Suite combines multiple technical analysis dimensions and harnesses the predictive power of machine learning, seamlessly integrating a diverse array of classic and novel indicators to deliver precision, adaptability, and innovation.
Features and Capabilities
Multidimensional Analysis: Fusion: MLS integrates various technical analysis dimensions to offer a more comprehensive perspective.
Machine Learning Integration: Utilizing ML algorithms, Fusion: MLS offers adaptability to market changes.
Custom Indicators: Including dimensions like "Moon Lander", "Cap Line" and "Z-Pack" the indicator expands the scope of traditional technical analysis methods.
Tailored Customization: With customization options, Fusion: MLS allows traders to configure the tool to suit their specific strategies and market focus.
In the following sections, we'll explore the features and settings of Fusion: MLS in detail, providing insights into how it can be utilized.
Major Features and Settings
The indicator consists of several core components and settings, each designed to provide specific functionalities and insights. Here's an in-depth look:
Machine Learning Component
Distance Classifier: A Strategic Approach to Market Analysis
In the world of trading and investment, the ability to classify and predict price movements is paramount. Machine learning offers powerful tools for this purpose.
The Fusion: MLS indicator among others incorporates an Approximate Nearest Neighbors (ANN)* algorithm, a machine learning classification technique, and allows the selection of various distance functions .
This flexibility sets Fusion: MLS apart from existing solutions. The available distance functions include:
Euclidean: Standard distance metric, commonly used as a default.
Chebyshev: Also known as maximum value distance.
Manhattan: Sum of absolute differences.
Minkowski: Generalized metric that includes Euclidean and Manhattan as special cases.
Mahalanobis: Measures distance between points in a correlated space.
Lorentzian: Known for its robustness to outliers and noise.
*For a deeper understanding of the Approximate Nearest Neighbors (ANN) algorithm, traders are encouraged to refer to the relevant articles that can be found in the public domain.
Alternative scoring system
Fusion: MLS also includes a custom scoring alternative based on directional price action.
"Combined: Directional" and "Alpha: Directional" scoring types represent our own directional change algorithm, simple yet effective in displaying trend direction changes early on. They are visualized by color changes when scoring becomes below or above zero.
Changes in scoring quickly reflect shifts in buyer and seller sentiment.
Traders may choose signals by Color Change in the indicator settings to get alerts when scoring color shifts, not waiting until the histogram crosses the zero level.
Application in Trading
Machine learning classification has become an integral part of modern trading, offering innovative ways to analyze and interpret financial data.
Many algorithmic trading systems leverage ML classification to automate trading decisions. By continuously learning from real-time data, these systems can adapt to changing market conditions and execute trades with increased efficiency and accuracy.
ML classification allows for the development of tailored trading strategies as traders can select specific algorithms, dimensions, and filters that align with their trading style, goals, and the particular market they are operating.
We have integrated ML classification with traditional trading tools, such as moving averages and technical indicators. This fusion creates a more robust analysis framework, combining the strengths of classical techniques with the adaptability of machine learning.
Whether used independently or in conjunction with other tools, ML classification represents a significant advancement in trading technology, opening new avenues for exploration, innovation, and success in the financial world.
ML: Weighting System
The Fusion: MLS indicator introduces a unique weighting system that allows traders to customize the influence of various technical indicators in the machine learning process. This feature is not only innovative but also provides a level of control and adaptability that sets it apart from other indicators.
Customizable Weights
The weighting system allows users to assign specific weights to different indicators such as Moon Lander, RSI, MACD, Money Flow, Bollinger Bands, Cap Line, Z-Pack, Squeeze Momentum*, and MA Crossover. These weights can be adjusted manually, providing the ability to emphasize or de-emphasize specific indicators based on the trader's strategy or market conditions.
*Note, we determined via testing that the popular "Squeeze" indicator can actually be well replicated by simply using inputs of 15 & 199 in the bedrock indicator - MACD ; while we employed the standard "Squeeze" formula (developed by J. Carter ) in Fusion: MLS, traders are hereby made aware of our research findings regarding such.
The weighting system's importance lies in its ability to provide a more nuanced and personalized analysis. By adjusting the weights of different indicators a trader focusing on momentum strategies might assign higher weights to the Squeeze Momentum and MA Crossover indicators, while a trader looking for volatility might emphasize RSI and Bollinger Bands.
The ability to customize weights adds a layer of complexity and adaptability that is rare in standard machine-learning indicators.
Custom Indicators: Moon Lander
The "Moon Lander" is not just a catchy name; it's a robust feature inspired by principles from aerospace engineering and offers a unique perspective on trading analysis. Here's a conceptual overview:
Fast EMA and Kalman Matrix
"Moon Lander" incorporates both a Fast Exponential Moving Average (EMA) and a Kalman Matrix in its design. These two elements are combined to create a histogram, providing a specific approach to data analysis.
The Kalman Matrix, or Kalman Filter, is a mathematical concept used for estimating variables that can be measured indirectly and contain noise or uncertainty. It's a standard tool in machine learning and control systems, known for its ability to provide optimal estimates based on observed data.
Kalman Filter: A Navigational Tool
The Kalman filter, an essential part of "Moon Lander," is a mathematical concept known for its applications in navigation and control systems used by NASA in the apollo program :
Guidance in Uncertainty: Just as the Kalman filter helped guide complex aerospace missions through uncertain paths, it assists traders in navigating the often unpredictable financial markets.
Filtering Noise: In trading, the Kalman filter serves to filter out market noise, allowing traders to focus on the underlying trends.
Predictive Capabilities: Its ability to predict future states makes it a valuable tool for forecasting market movements and trend directions.
Custom Indicators: Cap Line and Z-Pack
Fusion: MLS integrates our additional proprietary custom indicators that have been published on TradingView earlier:
Cap Line: Delve into the specific functionalities and applications of our proprietary "Cap Line" indicator in the published description on TradingView.
Z-Pack: Explore the analytical perspectives, focused on the z-score methodology, and custom "Z-Pack" indicator by reviewing the published description on TradingView.
Buy/Sell Signal Generation Algorithms
Fusion: MLS offers various options for generating buy/sell signals, tailored to different trading strategies and perspectives:
Fusion: Allows traders to select any number of dimensions to receive buy/sell signals from, offering customized signal generation.
ML: Utilizes the machine learning ANN distance for signal generation.
Color Change: Generates signals by selected scoring type color change.
Displayed Dimension, Alpha Dimension: Generate signals based on specific selected dimensions.
These algorithms provide flexibility in determining buy/sell signals, catering to different trading styles and market conditions.
Filters
Filters are used to refine and selectively include or exclude signals based on specific criteria. Rather than generating signals, these filters act as gatekeepers, ensuring that only the signals meeting certain conditions are considered. Here's an overview of the filters used:
Dynamic State Predictor (DSP)
The DSP employs the Kalman Matrix to evaluate existing signals by comparing the fast and slow-moving averages, both processed through the Kalman Matrix. Based on the relationship between these averages, the DSP may exclude specific signals, depending on whether they align with upward or downward trends.
Average Directional Index (ADX)
The ADX filter evaluates the strength of existing trends and filters out signals that do not meet the specified ADX threshold and length, focusing on significant market movements.
Feature Engineering: RSI
Applies a filter to the existing signals, clearing out those that do not meet the criteria for RSI overbought or oversold threshold condition.
Feature Engineering: MACD
Assesses existing signals to identify changes in the strength, direction, momentum, and duration of a trend, filtering out those that do not align with MACD trend direction.
The Visual Component
The machine learning component is an internal component. However, the indicator also offers an equally important and useful visual component. It is a graphical representation of the multiple technical analysis dimensions, that can be combined in various ways (where the name "Fusion" comes from), allowing traders to visualize the underlying data and its analysis.
Displayed Dimension: Visualization and Normalization
The Fusion: MLS indicator offers a "Displayed Dimension" feature that visualizes various dimensions as a histogram. These dimensions may include RSI, MAs, BBs, MACD, etc.
RSI Dimension on the image + ML signals
Normalization: Each dimension is normalized. If any dimension has extreme values, a Fisher transformation is applied to bring them within a reasonable range.
Combined Dimension: When selecting the "Combined" option , the normalized values of the selected dimensions are combined using techniques such as standardization, normalization, or winsorization. This flexibility enables tailored visualization and analysis.
Alpha Dimension: Enhancing Analysis
The "Alpha Dimension" feature allows traders to select an additional dimension alongside the Displayed Dimension. This facilitates a combined analysis, enhancing the depth of insights.
Theme Selection
Fusion: MLS offers various themes such as "Sailfish", "Iceberg", "Moon", "Perl", "Candy" and "Monochrome" Traders can select a theme that resonates with their preference, enhancing visual appeal. There is also a "Custom" theme available that allows the user to choose the colors of the theme.
Customizing Fusion: MLS for Various Markets and Strategies
Fusion: MLS is designed with customization in mind. Traders can tailor the indicator to suit various markets and trading strategies. Selecting specific dimensions allows it to align with individual trading goals.
Selecting Dimensions: Choose the dimensions that resonate with your trading approach, whether focusing on trend-following, momentum, or other strategies.
Adjusting Parameters: Fine-tune the parameters of each dimension, including custom ones like "Moon Lander," to suit specific market conditions.
Theme Customization: Select a theme that aligns with your visual preferences, enhancing your chart's readability and appeal.
Utilizing Research: Leverage the underlying algorithms and research, such as machine learning classification by ANN and the Kalman filter, to deepen your understanding and application of Fusion: MLS.
Alerts
The indicator includes an alerting system that notifies traders when new buy or sell signals are detected.
Disclaimer
The information provided herein is intended for informational purposes only and should not be construed as investment advice, endorsement, nor a recommendation to buy or sell any financial instruments. Fusion: MLS is a technical analysis tool, and like all tools, it should be used with caution and in conjunction with other forms of analysis.
Traders and investors are encouraged to consult with a licensed financial professional and conduct their own research before making any trading or investment decisions. Past performance of the Fusion: MLS indicator or any trading strategy does not guarantee future results, and all trading involves risk. Users of Fusion: MLS should understand the underlying algorithms and assumptions and consider their individual risk tolerance and investment goals when using this tool.
Volume Delta Methods (Chart) [LuxAlgo]The Volume Delta Methods (Chart) aims at highlighting the relationship between Buying or Selling Pressure and Price by presenting Volume Delta , and multiple derivatives of volume delta such as Cumulative Volume Delta (CVD) , Buy/Sell Volume , Total Volume , etc on top of the Main Price Chart .
The script uses two different intrabar (chart bars at a lower timeframe than the chart's) analyses to achieve the most approximate calculation of the volume delta and offers fully customizable visualization features using various types of charts such as line, area, baseline, candles, and histograms.
The script allows traders to see "within" the price bar, provides more transparency over a traditional volume histogram, and also allows users to monitor price and volume activity together.
🔶 USAGE
Volume delta is the difference between the buying volume and the selling volume, in other words, it is the net demand at a given bar allowing traders a more detailed insight when analyzing the market sentiment. A volume delta greater than 0 indicates more buying than selling pressure, whereas a volume delta less than 0 indicates more selling than buying pressure.
Volume delta plus total volume (regular volume) adds additional insight, where the total volume represents all the recorded trades for security that occurs in a given time interval. It is a measurement of the participation, enthusiasm, and interest in a given security.
Divergences occur when the polarity of the volume delta does not match the polarity of the price bar.
The users can enable the display of the numerical values of the volume delta.
Cumulative Volume Delta (CVD) is a way of using Volume Delta to measure an asset’s mid-to-long-term buy and sell pressure. It compares buying and selling volume over time and offers insights into market behavior at specific price points. Cumulative Volume Delta is effectively a continuation of the principles of Volume Delta but involves longer time periods and offers different trading signals.
Like the Volume Delta, the Cumulative Volume Delta (CVD) indicator measures the relationship between buy and sell pressure but does not focus on one specific candle in particular. Rather, the Cumulative Volume Delta takes the relative differences and combines them all over an extended time period.
Users have the ability Cumulative Volume Delta in various types of charts along with an optional smoothing line.
Placed above price bars options.
Interacting with price bar options helps to better identify CVD Divergences.
CVD Divergences
CVD reveals buying and selling trends that may or may not complement the price trend of the asset itself. Sometimes, price trends can run in contrast to trading behavior — sell volume can be dominant while the spot price is rising, and vice versa.
🔶 DETAILS
Theoretically, volume delta is calculated by taking the difference between the volume that traded at the ask price and the volume that traded at the bid price. The most precise calculation method uses tick data but requires huge amounts of data on historical bars, which usually limits the historical depth of charts. This indicator uses two different intrabar analysis methods for the volume delta calculation, where intrabars are chart bars at a lower timeframe than the chart's timeframe:
The logic used to assign intrabar volume to the "up" or "down".
- Buying/Selling pressure of the intrabar option (default)
(close - low) > (high - close) => UP
(close - low) < (high - close) => DOWN
(close - low) = (high - close) => close - previous close is used
- Polarity of the intrabar option
close > open => UP
close < open => DOWN
close = open => close - previous close is used
🔶 SETTINGS
The script takes into account user-defined parameters and performs calculations and presentations based on them, where detailed usage for each user-defined input parameter in indicator settings is provided with the related input's tooltip.
🔹 Calculation Settings
Calculation Method: Calculation method selection, available options 'Intrabar Buying/Selling Pressure' or 'Intrabar Polarity'.
Lower Timeframe Precision: Sets indicator precision, default option is 'Auto'.
🔹 Presentation Settings
Volume Delta: Toggles the visibility of the Volume Delta
Cumulative Volume Delta: Toggles the visibility of the Cumulative Volume Delta
Volume Delta/Price Bar Divergences: Toggles the visibility of the Volume Delta Divergences
Volume Delta Numerical Values: Toggles the visibility of the Volume Delta Numerical Values
🔹 Other Features
Volume MA: Toggles the visibility of the Volume Moving Average
CVD Smoothing: Toggles the visibility of the Cumulative Volume Delta's Smoothing Line
🔹 Volume Delta, Others
Volume Delta: Positive, Negative: Volume Delta color customization options
Volume Histogram: Growing, Falling: Volume Histogram color customization options
Display Length: Length of the visual objects presented with this indicator
Volume Delta Height: Volume delta height customization options
Volume Histogram Height: Volume histogram height customization options
Vertical Offset: Volume delta and histogram vertical positioning customization options
🔹 Cumulative Volume Delta, Others
CVD Line, Width, and Color: Cumulative Volume Delta - Line Width and Color customization options
CVD Area/Baseline, Gradient Coloring: Cumulative Volume Delta - Area and Baseline background gradient coloring customization options
CVD Candles Color, Positive, and Negative: Cumulative Volume Delta - Candles coloring customization options
CVD/Smoothing Background: Highlights and adjusts the transparency of the area between the Cumulative Volume Delta Line and it's Smoothing Line
🔶 RELATED SCRIPTS
Liquidity-Sentiment-Profile
EquiVolume
Volume-Footprint
Volume-Weighted Trend Filter CloudThe Volume-Weighted Trend Filter Cloud is a powerful technical analysis tool designed to identify trend directions and potential buy/sell signals in a trading instrument. The indicator combines volume-weighted moving averages, average true range (ATR), and cloud plotting techniques to provide a comprehensive view of the market trend.
Inputs:
Length: Specifies the length of Algo used for trend analysis. Default value is 14.
Multiplier: Adjusts the width of the trend filter bands based on the ATR. Default value is 2.0.
Tenkan-sen Period: Defines the period for calculating the Tenkan-sen line. Default value is 200.
Kijun-sen Period: Sets the period for calculating the Kijun-sen line. Default value is 400.
Senkou Span Period: Determines the period for calculating the Senkou Span A and Senkou Span B lines. Default value is 600.
Calculation:
Average True Range (ATR): The indicator calculates the ATR based on the specified moving average length.
Trend Filter Bands: The basic upper and lower bands are calculated using the highest high and lowest low values, respectively, along with the multiplier and ATR. These bands are then adjusted to create the final upper and lower bands, taking into account the previous values.
Trend Direction: The indicator determines the trend direction by comparing the close price with the lower and upper bands. If the close price is above the lower band, it indicates an upward trend (trendUp = 1). If the close price is below the upper band, it indicates a downward trend (trendDown = 1).
Volume-Weighted Z-Score: The indicator calculates the volume-weighted Z-Score by determining the mean and standard deviation of the close price with volume weighting. The Z-Score represents the deviation of the close price from the mean in terms of standard deviations.
Tenkan-sen, Kijun-sen, Senkou Span A, and Senkou Span B: These lines are calculated using the respective periods and the average of the high and low prices.
Sigmoid Transformation: The indicator applies the sigmoid function to the Z-Score values to obtain sigmoid-transformed values for open, high, low, and close prices. These transformed values help in visualizing the trend strength.
Plotting:
Trend Filter: The trend filter is plotted as a line that changes color based on the trend direction. The lower band is displayed for an upward trend, while the upper band is displayed for a downward trend.
Trend Cloud: The cloud plot represents the Senkou Span A and Senkou Span B lines. The cloud color changes based on the trend direction, providing a visual representation of the market trend.
Buy and Sell Signals: The indicator generates buy and sell signals based on the crossover of fast and slow moving averages, Z-Score values, trend direction, and other conditions. These signals are labeled on the chart, indicating potential entry points for traders.
The indicator generates buy and sell signals based on specific conditions, including the intersection of fast and slow moving averages, Z-Score values, trend direction, and more.
Buy signals are described as a "buy signal" on the chart, which indicates potential entry points for buy trades.
Sell signals are described as a "sell signal", which indicates potential entry points for sell trades. The signals in light color represent that they are signals in the opposite direction of the cloud that can be considered as exit points
Engulfing Pattern BUY and SELL SystemThis indicator is based on multiple parameters such as the Open, High, Low, and Close of candles. We add confluences such as SMMA crossovers, engulfing candles, and the number of pips that it has moved from it.
The main parameter is the DFS (Distance from SMMA). This will adjust the number of signals you'll get. This parameter is calculated based on the Open price of the signal bar and the 50 SMMA price. If the difference between these two values is greater than the input value, it will not be considered a signal.
The buy/sell signal consists of the following conditions:
1. Engulfing Candle based on conditions
2. SMMA crossover (21 and 50 periods)
3. For BUYS, the RSI value is greater than 49. For SELLS, the RSI value is less than 51.
4. Open price of the signal bar is less/greater than the 50 SMMA for SELLS/BUYS respectively.
5. DFS value is less than or equal to the input value
We recommend backtesting this on FX Pairs, and metals such as Gold. It is not well suited for Crypto or Indices.
RSI-Instant-TA 3.69 by SimpsTAHow can this indicator benefit you?
Are you familiar with the RSI (Relative Strength Index), which is a commonly used indicator? Let me explain how it works in simpler terms. When the RSI is below 30 (considered oversold), it may be a signal to buy, and when it's above 70 (considered overbought), it may be a signal to sell. To confirm these signals, you can look for the RSI line crossing a moving average line while forming a higher high or lower low. I usually use a 1-hour timeframe (TF) for analysis but also glance at lower timeframes for better market understanding.
This indicator combines different averages of the RSI line, including the most important one, which is the RSI line averaged from 7 different timeframes. This averaging helps you gain a clearer understanding of what's happening across those timeframes.
To ensure you don't miss important market moments, you can set up predefined alerts using this indicator. However, it's always important to visually verify these alerts before taking any action.
What is what?
What do the different parts of the indicator represent and where does the data for plotting the lines come from?
1) THICK RED/GREEN OSCILLATING RSI LINE:
This line is a visual representation of the RSI (Relative Strength Index) calculated by averaging the RSI values from 7 different timeframes. It moves between the oversold and overbought regions while intersecting other simplified averaged RSI lines. The data used for plotting these line is derived from the RSI values calculated based on price movements across different timeframes.
2) THICK WHITE RSI LINE:
The thick white line is a slightly smoothed average of the regular RSI line (thin white line). It helps reduce the noise and volatility of the RSI line, making it easier to interpret.
3) TWO OSCILLATING RED/GREEN LINES WITH RED/GREEN BACKGROUND FILL:
These lines are further averages of the normal RSI line, providing a smoother oscillating baseline. When the thick white line or thick red/green line crosses this baseline, it typically indicates a change in direction.
4) BIG TRIANGLE WITH RED/GREEN VERTICAL BG LINE:
This element is used to create an alert. It serves as a visual signal when the market is likely to change direction. Many users find this feature particularly useful. (I pretty much use just this one)
5) SMALL TRIANGLE AND SMALL CIRCLE WITH RED/GREEN VERTICAL BG LINE:
These elements, although visually distinct, serve a similar purpose. They are used when a good entry opportunity has been missed, but there is still a desire to enter the position. They can also be helpful for re-entries into a position.
6) YELLOW HORIZONTAL LINE:
The yellow horizontal line represents the middle RSI line with a value of 50. It acts as a reference point for determining whether the RSI is in the overbought or oversold region.
7) TWO WHITE HORIZONTAL LINES:
These white horizontal lines represent the top and bottom RSI lines with values of 30 and 70, respectively. They serve as thresholds for identifying oversold (below 30) and overbought (above 70) conditions.
How to use this indicator effectively:
SETTING ALARMS:
To begin, familiarize yourself with setting alerts in TradingView. Here's how I usually set mine:
a) Choose the indicator name from the dropdown menu.
b) Select either a BUY or SELL TRIANGLE as the alert marker.
c) Set a value greater than 0 (this is necessary for the alert to trigger).
d) Opt for the alert to occur once per bar.
e) Write a description that you will recognize.
f) Choose the type of notification you prefer.
g) You're all set!
HOW TO READ THE LINES:
a) The baseline consists of two oscillating red/green lines (3) with a background fill.
b) When the thick red/green line (1) or the thick white line (2) is above the baseline, it indicates a BUY signal. If they are below the baseline, it signifies a SELL signal.
c) Confirm the signal by observing whether the thick red/green line (1) or the thick white line (2) form a Lower High (LH) as a SELL signal or a Higher Low (HL) as a BUY signal. It can occur before crossing baseline (3), so consider having ALERTS that support this.
d) Additionally, consider the vertical background colors from alerts as supplementary confirmation.
e) When the lines appear messy and there is no clear indication due to excessive zig-zagging through the baseline, it typically suggests that the market will continue its previous movement without any significant changes.
MY PREFERRED WORKFRAME:
I recommend using a 5-frame window, which includes the following timeframes:
3-minute TF (fine tuned entry)
13-minute TF (to understand 3minTF better)
30-minute TF (to understand 1h TF better)
1-hour TF (the most important one - looking for HL/LH on (1) or (2) and/or their crossings the baseline (3))
1-day TF (for a broader perspective on the market - you certainly wont do LONGS if market broke certain support)
Buy/Sell examples
To provide you with a better understanding, let's consider some examples of BUY and SELL signals using this indicator.
1st TRADING EXAMPLE:
This example is for those who want to take advantage of every market turn to maximize their gains. Please remember to rest and sleep; this approach may not be suitable for everyone.
Initially, the data might seem overwhelming, but as you become familiar with the meaning behind specific situations, it becomes less daunting. Let me guide you through what you see in the picture:
The UPPER WINDOW shows a BTC chart with marked positions and the gains you would have achieved by following the indicator's signals.
The LOWER WINDOW displays this indicator with my comments, explaining what is happening in the marked areas (circles).
You can view the example here:
To implement this approach, you need to set alerts on the 1-hour timeframe (TF) using the following options: BUY/SELL TRIANGLE, BUY/SELL triangle, and BUY/SELL circle. These alerts will send you notifications every few hours. When you receive a notification, visually assess the situation (consider going long, short, or exiting) based on the detailed criteria explained earlier.
2nd TRADING EXAMPLE:
This example is for those who prefer to have more free time and only react when there is an obvious market change, with more than a day or two between actions (going long, short, or exiting).
Here's what you see in the picture:
The UPPER WINDOW displays a BTC chart with marked positions and the gains you would have achieved by following the indicator's signals. As you can see, these positions are open for several days leaving you lots of time to rest.
The LOWER WINDOW shows this indicator with circles, highlighting the situations that prompted the actions. By now, you should be familiar with the rules.
You can view the example here:
To implement this approach, set alerts on the 1-hour timeframe (TF) for when the RSI AVG crosses the Slowest Line (select it from the dropdown menu). When you receive a notification, don't take immediate action; instead, turn on another alert (BUY/SELL triangle ALERT). If the RSI AVG is below the Slowest Line, choose the SELL triangle; if it's above, select the BUY triangle. Wait for the RSI AVG to return close to the Slowest Line for confirmation.
This approach will result in two to three notifications per day, allowing you to relax in the meantime.
******
PRO TIP!
Try not to constantly stare at the charts and this indicator. Instead, look and react only when the alerts are triggered. Remember, the market won't change direction without triggering those alerts (provided they are set correctly). This will save you a significant amount of time and stress.
Oscillator Toolkit (Expo)█ Overview
The Oscillators Toolkit stands at the forefront of technical trading tools, offering a comprehensive suite of sophisticated, adaptive, and unique oscillators. This toolkit has been thoughtfully designed to cater to all trading styles, ensuring versatility and utility for every trader. The toolkit features our flagship oscillators, including the WaveTrend Momentum, Leading RSI, Momentum Oscillator, and Bellcurves. Furthermore, it offers many great features such as trend recognition, market impulses, and trend changes; all consolidated into a single, easy-to-use indicator.
Access to these high-quality oscillators and tools can elevate your trading strategy, providing you with insightful market analysis and potential trading opportunities. In addition, these tools help traders and investors to identify and interpret various market trends, momentum, and volatility patterns more efficiently.
The Oscillator toolkit works in any market and timeframe for discretionary analysis and includes many oscillators and features:
█ Oscillators
WaveTrend Momentum
The WaveTrend Momentum oscillator is a significant component of the toolkit. It factors in both the direction and the momentum of market trends. The waves within this system are both quick and responsive, operating independently to offer the most pertinent insights at the most opportune moments. Their rapid response time ensures that traders receive timely information, which is essential in the fast-paced, dynamic world of trading.
Example of how to use the WaveTrend Momentum Oscialltor
The WaveTrend Momentum is proficient at identifying trend reversals and pullbacks, allowing traders to enter or exit trades at optimal moments.
Leading RSI
The Leading Relative Strength Index (RSI) is a type of momentum oscillator that is commonly used in technical analysis to predict price movements. As the name suggests, it is an advanced form of the traditional Relative Strength Index (RSI), and it provides traders with more timely signals for market entries and exits.
The Leading RSI works on similar principles but is designed to provide signals ahead of the traditional RSI. This is achieved through more advanced mathematical modeling and calculations, which aim to identify shifts in market momentum before they happen. It takes into account not only the current price action but also considers historical data in a way that can foresee changes in trend directions.
Example of how to use the Leading RSI
The Leading RSI is an enhanced version of the traditional Relative Strength Index, offering more timely indications of divergences and overbought or oversold market conditions.
Momentum Oscillator
This oscillator measures the amount that a security's price has changed over a given time span. It is an excellent tool for understanding the strength of a trend and its potential endurance. When the momentum oscillator rises, it suggests that the price is moving upwards and vice versa.
The Momentum Oscillator is an advanced technical analysis tool that helps traders identify the rate of change or the momentum of the market. It is typically used to determine the strength or speed at which the price of an asset increases or decreases for a set of returns. This oscillator is considered 'fast-moving' and 'sensitive' because it responds quickly to changes in price momentum. The fast-moving nature of this oscillator helps traders to get early signals for potential market entry or exit points.
The Momentum Oscillator analyzes the current price compared to the previous price and adds two additional layers of analysis: 'Buy & Sell moves' and 'Extremes.'
Buy & Sell Moves: This layer of the oscillator helps identify the buying and selling pressure in the market. This can provide traders with valuable information about the possible direction of future price moves. When there is high buying pressure (demand), the price tends to rise, and when there is high selling pressure (supply), the price tends to fall.
Extremes: This layer helps to identify extreme overbought or oversold conditions. When the oscillator enters the overbought territory, it could indicate that the price is at a high and could potentially reverse. Conversely, if the oscillator enters the oversold territory, it could suggest that the price is at a low and could potentially rebound.
Example of how to use the Momentum Oscillator
The Momentum Oscillator is a sensitive and fast-moving oscillator that adapts quickly to price changes while keeping track of the long-term momentum, making it easier to spot buying or selling opportunities in trends.
Bellcurves
The Bellcurves indicator is a powerful tool for traders that uses statistical analysis to help identify potential market reversals and key support and resistance levels by leveraging the principles of statistical analysis to measure market impulses. The concept behind this tool is the normal distribution, also known as the bell curve, which is a fundamental statistical concept signifying that data tends to cluster around the average or mean value. The "impulses" in the market context refer to significant price movements driven by a high volume of trading activity. These are typically sharp and swift moves either upwards (bullish impulse) or downwards (bearish impulse). These impulses often signify a strong sentiment in the market and can result at the beginning of a new trend or the continuation of an existing one.
In effect, the Bellcurve indicator is designed to filter out minor price fluctuations or 'noise,' allowing traders to focus solely on significant market impulses. This makes it easier for traders to identify key market movements.
Example of how to use the Bellcurve
The Bellcurves uses the principles of statistical analysis to identify significant market impulses and potential market reversals.
█ Why is this Oscillator Toolkit Needed?
The Oscillator Toolkit is a vital asset for traders for several reasons:
Insight into Market Trends: The Oscillator Toolkit provides valuable insight into current market trends. This includes understanding whether the market is bullish (rising) or bearish (falling), as well as identifying potential future price movements.
Identification of Overbought or Oversold Conditions: Oscillators like those in the toolkit can help traders identify when an asset is overbought (potentially overvalued) or oversold (potentially undervalued). This can signal potential market reversals.
Confirmation of Price Patterns: The oscillators in the toolkit can confirm price patterns and trends. For example, if a price pattern suggests a bullish trend, an oscillator can help confirm this by showing rising momentum.
Versatility Across Markets and Timeframes: The Oscillator Toolkit is designed to work across a variety of markets, including stocks, forex, commodities, and cryptocurrencies. It's also effective across different timeframes, from short-term day trading to longer-term investment strategies.
Timely Trade Signals: By providing real-time insights into market conditions and price momentum, the Oscillator Toolkit offers timely signals for trade entries and exits.
Enhancing Trading Strategy: Every trader has a unique approach to the market. The Oscillator Toolkit, with its suite of different oscillators, provides a robust set of tools that can be customized to enhance any trading strategy, whether it's a trend following, swing trading, scalping, or any other approach.
█ Any Alert Function Call
This function allows traders to combine any feature and create customized alerts. These alerts can be set for various conditions and customized according to the trader's strategy or preferences.
█ How are the Oscillators calculated? - Overview
The Toolkit combines many of our existing premium indicators and new technical analysis algorithms to analyze the market. This overview covers how the main features are calculated.
WaveTrend Momentum
The WaveTrend Momentum oscillator operates at its core by comparing the current price to previous prices. If the current price is higher than the previous price, the oscillator value will rise, indicating an uptrend. Conversely, if the current price is lower than the previous price, the oscillator value will fall, indicating a downtrend. To make it unique and useful normalized weighting functions are added.
Leading RSI
The Leading RSI is based on the traditional Relative Strength Index, with an added exploration function that takes into account historical price movements.
Momentum Oscillator
The Momentum oscillator measures how quickly the price is changing, on average, over a certain period, relative to the variability of the price over that same period. It gives higher values when the price is changing rapidly in one direction and lower values when the price is fluctuating or changing more slowly. In addition, other functions, such as market extremes and buying/selling pressure, are factored in.
Bellcurves
The Bellcurves assume that some common historical price data is normally distributed, and once these patterns or moves are found the in the price data, a Bellcurve is formed.
█ In conclusion , the Oscillator Toolkit is an advanced, versatile, and indispensable asset for traders across various markets and timeframes. This innovative collection includes different oscillators, including the WaveTrend Momentum, Leading RSI, Momentum Oscillator, and the Bellcurves Indicator, each serving a unique function in providing valuable insights into the market's behavior.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Precision Trader Indicator, v1.01Overview:
The PTI is a custom indicator designed to provide buy and sell signals based on price movements and volatility. It uses the Average True Range (ATR) to calculate stop levels and identifies potential trend changes.
Parameters:
The indicator has several customizable parameters that you can adjust according to your preferences. These parameters include:
- ATR Period (length): Determines the lookback period for calculating the ATR.
- ATR Multiplier (mult): Specifies the multiplier applied to the ATR to determine the stop levels.
- Show Buy/Sell Labels (showLabels): Allows you to choose whether to display buy/sell labels on the chart.
- Use Close Price for Extremums (useClose): Determines whether the indicator considers the close price for calculating extremums.
- Highlight State (highlightState): Enables highlighting of the long and short state on the chart.
Calculation:
1. ATR Calculation: The indicator calculates the Average True Range (ATR) using the specified length parameter and multiplies it by the ATR Multiplier (mult) to obtain the ATR value.
2. Long Stop Calculation: The long stop level is calculated based on the highest price over the specified length period (using either the high or close price, depending on the useClose parameter) minus the ATR value. It ensures that the long stop is below the recent highest point.
3. Short Stop Calculation: The short stop level is calculated based on the lowest price over the specified length period (using either the low or close price) plus the ATR value. It ensures that the short stop is above the recent lowest point.
4. Direction Calculation: The indicator determines the current direction based on the close price compared to the previous long stop and short stop levels. If the close price is above the previous long stop, the direction is set to 1 (indicating a bullish trend). If the close price is below the previous short stop, the direction is set to -1 (indicating a bearish trend). Otherwise, the direction remains unchanged.
Plotting:
The indicator plots several visual elements on the chart:
- Long Stop: Draws a line representing the long stop level.
- Long Stop Start: Plots a small circle marker indicating the start of a long stop (buy signal).
- Buy Label: Displays a "Buy" label near the long stop start marker.
- Short Stop: Draws a line representing the short stop level.
- Short Stop Start: Plots a small circle marker indicating the start of a short stop (sell signal).
- Sell Label: Displays a "Sell" label near the short stop start marker.
- Long State Filling: Fills the area between the mid price and the long stop line with a color (optional).
- Short State Filling: Fills the area between the mid price and the short stop line with a color (optional).
Alerts:
The indicator includes three types of alerts:
- PTI Direction Change: Triggers an alert when the PTI direction changes (from bullish to bearish or vice versa).
- PTI Buy: Triggers an alert when a buy signal occurs (long stop start).
- PTI Sell: Triggers an alert when a sell signal occurs (short stop start).
By using the PTI indicator, traders can monitor potential trend changes and receive alerts when buy or sell signals are generated based on price and volatility dynamics.
Please note that the interpretation and effectiveness of this indicator should be evaluated through rigorous backtesting and analysis before making any trading decisions.
5EMA BollingerBand Nifty Stock Scanner
What ?
We all heard about (well: over-heard) 5-EMA strategy. Which falls into the broader category of mean reversal type of trading setup.
What is mean reversal?
Price (or any time series, in fact) tries to follow a mean . Whenever price diverges from the mean it tries to meet it back.
It is empirically observed by some traders (I honestly don't know who first time observed it) that in Indian context specially, 5 Exponential Moving Average (5-EMA) works pretty good as that mean.
So whenever price moves away from that 5-EMA, it ultimately comes back and attain total nirvana :) Means: if price moved way higher than the 5EMA without touching it, then price will correct to meet it's 5-EMA and if price moved way lower, it will be uplifted to meet it's 5-EMA. Funny - but it works !
Now there are already enough social media coverage on this 5-EMA strategy/setup. Even TradingView has some excellent work done on these setups. Kudos to all those great souls.
So when we came to know about this, we were thinking what we should do for the community. Because it is well cover topic (specially in Indian context). Also, there are public indicators.
Then we thought why not come up with a scanner which will scan all the Nifty-50 constituent stocks and find out on the fly, real-time which all stocks are matching this 5-EMA setup and causing a Buy/Sell trade recommendation.
Hence here we are with the first version of our first scanner on the 5EMA setup (well it has some more masala than merely a 5-EMA setup).
Why?
Parts of why is already covered up.
Now instead of blindly following 5-EMA setup, we added the Bollinger band as well. Again: it's also not new. There are enough coverage in social media about the 5-EMA+BB strategy/setup. We mercilessly borrowed from all of these.
Suppose you have an indicator.
Now you apply the indicator in your chart. And then you need to (rock) and roll through your watchlist of Nifty-50 stocks (note: TradingView has no default watchlist of Nifty-50 stock by default - you have to create one custom watchlist to list all manually) to find out which all are matching the setup, need to take a note about the trade recomendations (entry, SL, target) and other stuffs like VWAP, Volume, volatility (Bollinger Band Width).
Not any more.
This scanner will track all the Nifty-50 stocks (technically: 40 stocks other than Banking stocks) and provide which one to Buy or Sell (if any), what's the entry, SL, target, where is the VWAP of the day, what's the picture in volume (high, low, rising, falling) and the implied volatility (using Bolling band width). Also it has a naive alerting mechanism as well.
In fact the code is there to monitor the (Future) OI also and all the OI drama (OI vs price and all the 4 stuffs like long build up, long unwinding, short covering, short buildup). But unfortunately, due to some limitations of the TradingView (that one can not monitor more than 40 `ta.security` call) we have to comment out the code. If you wish you can monitor only 20 stocks and enable the OI monitoring also (20 for stocks + 20 for their OI monitoring .. total 40 `ta.security` call).
How?
To know the divergence from 5-EMA we just check if the high of the candle (on closing) is below the 5-EMA. Then we check if the closing is inside the Bollinger Band (BB). That's a Buy signal. SL: low of the candle, T: middle and higher BB.
Just opposite for selling. 5-EMA low should be above 5-EMA and closing should be inside BB (lesser than BB higher level). That's a Sell signal. SL: high of the candle, T: middle and lower BB.
Along with we compare the current bar's volume with the last-20 bar VWMA (volume weighted moving average) to determine if the volume is high or low.
Present bar's volume is compared with the previous bar's volume to know if it's rising or falling.
VWAP is also determined using `ta.vwap` built-in support of TradingView.
The Bolling Band width is also notified, along with whether it is rising or falling (comparing with previous candle).
Simple, but effective.
Customization
As usual the EMA setup (5 default), the BB setup (20 SMA with 1.5 standard deviation), we provided option wherther to include or exclude BB role in the 5-EMA setup (as we found out there are two schools of thought .. some people use BB some don't. Lets make all happy :))
We also provide options to choose other symbols using Settings if they wish so. We have the default 40 non banking Nifty stocks (why non-banking? - Bank Nifty is in ATH :) .. enough :)). But if user wishes can monitor others too (provided the symbol is there in TradingView).
Although we strongly recommend the timeframe as 30 minutes , you can choose what's fit you most.
The output of the scanner is a table. By default the table is placed in the right-bottom (as we are most comfortable with that). However you can change per your wish. We have the option to choose that.
What is unique in it ?
This is more of an indicator. This is a scanner (of Nifty-50 stocks). So you can apply (our recommendation is in 30m timeframe) it to any chart (does not matter which chart it is) and it will show every 30 mins (which is also configurable) which all stocks (along with trade levels) to Buy and Sell according to the setup.
It will ease your trading activity.
You can concentrate only on the execution, the filtering you can leave it to this one.
Limitations
There is a build in limitation of the TradingView platform is that one can call only upto 40 securities API. Not beyond that. So naturally we are constraint by that. Otherwise we could monitor 190 Nifty F&O stocks itself.
30m is the recommended timeframe. In very lower (say 5m) this script tends to go out of heap (out of memory). Please note that also.
How to trade using this?
Put any chart in 30m (recommended) timeframe.
Apply this screener from Indicators (shortcut to launch indicators is just type / in your keyboard).
This will provide the Buy (shown in green color) or Sell (shown in red color) recommendations in a table, at every 30m candle closing.
Note the volume and BB width as well.
Wait for at least 2 5-minutes candles to close above/below the recommended level .
Take the trade with the SL and target mentioned.
Mentions
@QuantNomad. The whole implementation concept we mercilessly borrowed from him, even some of his code snippet we took it (after asking him through one of his videos comment section and seeking explicit permission which he readily granted within an hour). Thank You sir @QuantNomad. Indebted to you.
Monika (Rawat) ji: for reviewing, correcting, providing real time examples during live market hours, often compromising her own trading activities, about the effectiveness and usefulness of this setup. Thank You madam ji. Indebted to you.
There are innumerable contents in social media about this. Don't even know whom all we checked. Thanks to all of them.
Happy Trading (in stocks - isn't enough of Indices already?)
Disclaimer
This piece of software does not come up with any warrantee or any rights of not changing it over the future course of time.
We are not responsible for any trading/investment decision you are taking out of the outcome of this indicator.
mrD-Smart RangesmrD-Smart Ranges aims to offer a complete strategy based on Order Blocks. Ranges signals based on order volume are highlighted, from which smart ranges are suggested to provide potential entries.
This script also includes warnings for each signal marked.
🔶 SETTINGS
Pair Strategy: Select the desired from the list. Change the chart to the one specified in the Strategy.
Current TF Order Blocks: Allows the user to select how many most recent Internal Order Blocks appear in the current time frame on the chart.
Order Block Filter: Allows the user to select how the script mitigates an Order Block.
Hide Overlap: Allows the user to display overlapping Order Blocks.
Show Metrics: Allows the user to display volume % metrics within the Order Blocks.
Show Volume Box: Allows the user to display buy/sell activity within Order Blocks.
High Timeframe: Allows the user to choose a higher or lower timeframe to find the Signals.
Show Failed Buy Sell: Allows the user to display the Signals.
Show HTF Box: Allows the user to display a higher or lower timeframe Order Blocks.
🔶 DETAILS
Order blocks are formed after a slight bearish order block, these can provide an opportunity to change polarity, thus acting as a potential support/resistance level.
A retest/retrace on the order block, combined with order volume between the current timeframe and from the higher timeframe will establish the conditions for smart ranges are suggested to provide potential entries.
🔶 USAGE
mrD-Smart Ranges aims to provide users with a minimalistic screen next to the optimal ranges to keep in mind to find trading setups as shown below.
Here we can see a suggested Sell range and display a label to confirm this range
Signal(s) that can be used for potential entries only during range retest are order blocks.
Users can search for more potential entry ranges based on larger timeframes in the settings: High Timeframe
In the image above, we can see that the price has generated potential orange and bearish entry signals. A confirmation signal with a red label is displayed on the chart when the price retests the Sell range.
Note: While range retests can still work well if they occur later in price action, it's best to look for signals only when price retests the range at the outset rather than retesting it. second price.
The logic of generating signal ranges using different rules is described below:
- Define order blocks in the current timeframe.
- Define the order blocks with the largest volume in the current timeframe.
- Define order blocks in larger timeframes in High Timeframe settings
- Define order blocks with the largest volume in larger timeframes in High Timeframe settings
Entry Range: The combination of the highest volume order blocks in the current timeframe and the highest volume order blocks in the larger timeframe.
🔶General disclaimer:
Trading stocks, futures, forex, options, ETFs, cryptocurrency, or any other financial instrument has huge potential rewards and risks.
You must be aware of the risks and willing to accept them to invest in stocks, futures, forex, options, ETFs, or cryptocurrencies.
Don't trade with money you can't afford to lose.
This is not an offer or an offer to Buy/Sell stocks, futures, Forex, options, ETFs, cryptocurrencies, or any other financial instrument.
Do not represent that any account will or is likely to achieve profit or loss of any kind.
The past performance of any trading system or method is not necessarily indicative of future results.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
XPrecisionSwing (XPS)* XPrecisionSwing (XPS) Indicator *
Is a visual representation of the Forces of Supply / Demand in the markets in the form of UP and DOWN waves. The Supply / Demand (denoted by a number on top or below the wave line) is computed using the *MBox Precision Supply / Demand* algorithm. These numbers diligently show the forces of Supply and Demand moving price in the markets. The algorithm for computing the numbers on the top and bottom of the wave lines measures the strength of the Supply / Demand. It is this algorithm that makes this indicator unique as it gives an accurate representation of the forces pulling the market up and down. When forces oppose each other, meaning when the direction of price does not agree with the direction of the Supply or Demand it creates a divergence and an opportunity in the markets. These situations are called BUY / SELL Imbalances. Explanation about this below.
* WHAT THE SCRIPT DOES *
The XPrecisionSwing indicator draws swing waves lines going up and down. These waves lines are representative of Supply and Demand. Waves going up are Demand, while waves going down are Supply. The strength of the Supply / Demand corresponds to the number drawn either on top of the wave line or below it. The numbers drawn on the chart are powered by the *MBox Precision Supply / Demand* algorithm, which are representative of the Forces of Supply / Demand in the markets. This is not just volume added up like in a regular zig zag indicator, since volume alone does not show Supply / Demand, and regular volume will not show BUY / SELL Imbalances as depicted by XPrecisionSwing. Volume summated will not show both positive and negative numbers on the chart. Having Supply / Demand split into both positive and negative numbers allows us to see BUY / SELL Imbalances, which can be a very powerful divergence. Information on how these numbers are computed are in the "HOW IT WORKS" section.
The numbers drawn on the chart can be either negative or positive. Positive relates to Demand, while negative relates to Supply. In this manner the strength of Supply and Demand can be gauged in each wave. If the price goes up but the number is negative (More Supply) it is a divergence and called a SELL Imbalance. This means there was more Supply even though price went up. It is important to pay attention to these scenarios, as often it can be indicative of NO DEMAND. Conversely. if the price goes down but the number is positive (No Demand) it is a divergence and is called a BUY Imbalance. This means there was more Demand even though price went down. This is indicative of NO SUPPLY. As such, it now becomes possible to know when there is a sign of Supply, Demand, No Supply, No Demand, Supply Exhaustion, and Demand exhaustion. Supply occurs when the negative numbers on the charts begin to increase (more negatively). Demand occurs when the positive numbers on the chart begin to increase (more positively). A Supply Exhaustion pattern happens when the price is starting to move down more slowly, while Supply is decreasing, and Demand is increasing. This means that the behavior of the market is changing and also a signal to look to reverse positions. A Demand Exhaustion pattern happens when the price is starting to move up more slowly, while Demand is decreasing, and Supply is increasing. The behavior of the market here is also changing.
* HOW IT WORKS *
- Technical Details for the Numbers on the Swing -
The numbers on the chart represent Supply / Demand. Supply or Demand is determined by analyzing the movement of price and quantity of volume.
When price goes up and is combined with an increase in volume it is Expansion of Demand.
(Positive Numbers get larger)
However if price goes up and is combined with a decrease in volume it is Contraction of Demand.
(Positive Numbers get smaller)
When price goes down and is combined with an increase in volume it is Expansion of Supply.
(Negative Numbers get larger)
However if price goes down and is combined with a decrease in volume it is Contraction of Supply.
(Negative Numbers get smaller)
- Technical Details for the Swing -
The way XPrecisionSwing draws the swings is fractal in nature, which make it very convenient and easier to use over the traditional zig zag indicator. The traditional zig zag indicator uses a tick reversal which needs to be adjusted every time you change time frames. However, with XPrecisionSwing you do not have to change any settings every time you load a different time frame since it will adjust to any time frame you are loading. How the swing is drawn is explained below.
XPrecisionSwing uses 3 bars (by default) to define a swing
This parameter can be adjusted. Can be 1, 2, 4 bars, etc...
Swings are always drawn using High / Low of the bar
- Rules -
To start upswing, bar high needs to be higher than previous 3 candle highs
To start downswing, bar low needs to be lower than previous 3 candle lows
If in upswing, a higher high will continue the upswing
if in downswing, a lower low will continue the downswing
- Exceptions -
If outside bar (both high and low exceeds previous 3 bars) swing will continue in current direction
- Swing Confirmation -
Swing wave line in progress (unconfirmed) is denoted by a brown box around the swing number
Once the brown box disappears, that swing wave and number is confirmed
* HOW TO USE IT *
As the numbers on the down waves increase (negatively), this shows that the bears have taken control of the markets. Conversely, as the numbers on the up waves increase (positively), this shows the bulls have taken control of the markets. Whoever is in control is the direction you generally want to place your trades in. When you see an increase in Supply (numbers on down wave) accompanied with a decrease in Demand (numbers on up wave) this shows a Supply + Demand Exhaustion Pattern. This is stronger than if you only see an increase in Supply without a decrease in Demand.
- The Buy / Sell Imbalances -
If you see a positive blue number on the bottom of a DOWN Wave, this means that there was more buying than selling even though price moved down.
If you see a negative red number on the top of an UP Wave, this means that there was more selling than buying even though price moved up.
Both of these cases signify and imbalance and a divergence.
* EXAMPLE AND USE CASES *
- Sell Imbalance Example -
If you see a large negative number with a lower low on a down wave, and then the next up wave is a lower high also with a negative number it shows that there is only Supply flooding the market and no sign of Demand. This is a very powerful combo.
- Buy Imbalance Example -
If you see a large positive number with a higher high on an up wave, and then the next down wave is a higher low also with a positive number it shows that there is only Demand flooding the market and no sign of Supply. This is a very powerful combo.
- Supply Exhaustion example -
If you see price movement struggling to make newer lows and the Supply numbers on the down waves are decreasing, while the Demand numbers on the up waves are increasing this is indicative of a *Change of Behavior*, and that the market is showing signs of reversal.
- Break out on Demand example -
If you see price has been ranging and now the numbers on the UP waves begin to increase while breaking out of a previous area of resistance, it is a good sign that the movement is backed by the strength coming from the Demand.
* BUY / SELL IMBALANCE ALERTS *
The Green / Red crosses on the chart show exactly where the Buy / Sell Imbalance Alerts trigger.
These will NEVER repaint! The crosses can be hidden in Styles if you wish to.
Alerts can be set very easily with the instructions below.
1. Right Click Chart -> Add Alert...
(Ignore Caution Warning. These alerts will *ONLY* trigger on Confirmed BUY / SELL Imbalances and will NOT repaint)
2. Select Condition to be "XPrecisionSwing"
3. Select "Buy Imbalance" or "Sell Imbalance"
4. Select "Greater Than" with Value = 0
5. Options set "Once Per Bar"
6. Customize Any other Alert Options you want
* WHAT MAKES IT ORIGINAL *
XPrecisionSwing gives an inside look into the markets by showing price movements as a series of waves going up and down with their corresponding Supply / Demand numbers associated with each wave. Reading the numbers shows the strength of Supply / Demand. The bigger the number the stronger the Supply / Demand is. The smaller the number the weaker the Supply / Demand is. It becomes possible to see where Supply / Demand comes in, along with Exhaustion of Supply / Demand to spot opportunities to place trades. The Buy / Sell Imbalances show imbalances where price movement and the direction of the Supply / Demand diverge to create potential opportunities as well.
* AUTHOR *
This script is published by MBoxWave LLC
RiverFlow ADX ScreenerRiverFlow ADX Screener, Scans ADX and Donchian Trend values across various Timeframes. This screener provides support to the Riverflow indicator. Riverflow concept is based on Two indicators. Donchian Channel and ADX or DMI.
How to implement?
1.Donchian Channel with period 20
2. ADX / DMI 14,14 threshold 20
Entry / Exit:
1. Buy/Sell Signal from ADX Crossovers.
2. Trend Confirmation Donchian Channel.
3. Major Trend EMA 200
Buy/Sell:
After a buy/sell is generated by ADX Crossover, Check for Donchian Trend. it has to be in same direction as trend. for FTT trades take 2x limit. for Forex and Stocks take 1:1.5, SL must be placed below recent swing. One can use Riverflow indicator for better results.
ADX Indicator is plotted with
Plus: Green line
Minus: Red Line
ADX strength: plotted as Background area.
TREND: Trend is represented by Green and Red Area around Threshold line
Table:
red indicates down trend
green indicates up trend
grey indicates sideways
Weak ADX levels are treated sideways and a channel is plotted on ADX and PLUS and MINUS lines . NO TRADES are to be TAKEN on within the SIDEWAYS region.
Settings are not required as it purely works on Default settings. However Donchian Length can be changed from settings.
Timeframes below 1Day are screened. Riverflow strategy works on timeframe 5M and above timeframe. so option is not provided for lower timeframes.
Best suits for INTRADAY and LONG TERM Trading
2B Reversal Pattern (Expo)█ Overview
The 2B reversal pattern , also called the "spring pattern", is a popular chart pattern professional traders use to identify potential trend reversals. It occurs when the price appears to be breaking down or up and then suddenly bounces back up/down, forming a "spring" or "false breakout" pattern. This pattern indicates that the trend is losing momentum and that a reversal is coming.
In a bearish market , the "spring pattern" occurs when the price of an asset breaks below a support level, causing many traders to sell their positions and causing the price to drop even further. However, the selling pressure eases at some point, and the price begins to rebound, "springing" back above the support level. This rebound creates a long opportunity for traders who can enter the market at a lower price.
In a bullish market , the "spring pattern" occurs when the price of an asset breaks above a resistance level, causing many traders to buy into the asset and drive the price up even further. However, the buying pressure eases at some point, and the price begins to decline, "springing" below the resistance level. This decline creates a selling opportunity for traders who can short the market at a higher price.
█ What are the benefits of using the 2B Reversal Pattern?
The benefits of using the 2B Reversal pattern as a trader include identifying potential buying or selling opportunities with reduced risk. By waiting for the price to "spring back" to the initial breakout level, traders can avoid entering the market too soon and minimize the risk of potential losses.
█ How to use
Traders can use the 2B reversal pattern to identify reversals. If the pattern occurs after an uptrend, traders may sell their long positions or enter a short position, anticipating a reversal to a downtrend. If the pattern occurs after a downtrend, traders may sell their short positions or enter a long position, anticipating a reversal to an uptrend.
█ Consolidation Strategy
First, traders should identify a period of price consolidation or a trading range where the price has been trading sideways for some time. The key feature of the "spring pattern" is a sudden, sharp move downward/upwards through the lower/upper boundary of this trading range, often accompanied by high volume.
However, instead of continuing to move lower/higher, the price then quickly recovers and moves back into the trading range, often on low volume. This quick recovery is the "spring" part of the pattern and suggests that the market has rejected the lower/higher price and that buying/selling pressure is building.
Traders may use the "spring pattern" as a signal to buy/sell the asset, suggesting strong demand/supply for the stock at the lower/higher price level. However, as with all trading strategies, it is important to use other indicators and to manage risk to minimize potential losses carefully.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Volume composition / quantifytools— Overview
While net volume is useful information, it can be a blunt data point. Volume composition breaks down the content of volume, allowing a more detailed look inside each volume node. Volume composition consists of the following information:
Total volume (buy and sell). By default gray node.
Dominating volume (buy or sell). By default dark green/dark red node.
Dominating active volume (buy or sell). By default light green/light red node.
Dominating volume as percentage of total volume.
Dominating active volume as percentage of total active volume.
Buy and sell volume is defined by volume associated with lower timeframe up/down moves. This classification is further broken down to passive/active, standing for decreasing/increasing volume, e.g. a move up with volume higher than previous bar volume = active buy volume, a move up with volume lower than previous bar volume = passive buy volume.
Volume data is fetched from a lower timeframe that is automatically adjusted to fit the timeframe you're using. By default, the following settings are applied:
Charts <= 30 min: 1 minute timeframe
Charts > 30 min & <= 3 hours : 5 minute timeframe
Charts > 3 hours & <= 8 hours : 15 minute timeframe
Charts > 8 hours & <= 1D: 1 hour timeframe
Charts > 1D & <= 3D : 2 hour timeframe
Charts > 3D: 4 hour timeframe
Timeframe settings can be changed via input menu. The lower the timeframe, the more precision you get but with the cost of less historical data and slower loading time. Users can also choose which source to use for determining buy/sell volume, e.g. using close as source, a close that is higher than previous close would be considered as buy volume. This could be replaced with OHLC4 for example, resulting in a volume direction based on OHLC average.
Volume composition of current chart can also be replaced with any other chart volume composition:
— Visuals
Breakdown of visual elements:
1. Symbol and timeframe used for volume composition calculations. By default the chart that is viewed and automatically selected lower timeframe.
2. Dominating volume threshold exceeded. Can be defined via input menu, 70% of total volume by default.
3. Dominating volume as percentage of total volume. Plotted below volume nodes, without % symbol.
4. Dominating active volume, + or - symbol, standing for buy and sell. Plotted below dominating volume percentage. When dominating volume and dominating active volume sides are in a disagreement (e.g. dominating volume is on buy side while dominating active volume is on sell side) this symbol will appear inside brackets, (+) or (-).
5. Dominating active volume as percentage of total active volume. Plotted below +/- symbol.
6. Dominating active volume threshold exceeded. Can be defined via input menu, 70% by default.
Dominating volume & active volume percentages can be rounded to single numbers to avoid clutter caused by overlapping values. The percentage values will be rounded to closest single number value, e.g. dominating volume percentage at 54% = 5, dominating volume percentage at 55% = 6.
Volume anomalies can be highlighted on the chart with a color for studying the events and their past implications in greater detail. Available anomalies for highlights are the following:
Buy volume threshold exceeded
Sell volume threshold exceeded
Active buy volume threshold exceeded
Active sell volume threshold exceeded
Volume & active volume divergence
— Practical guide
Volume is arguably one of the most important data points as it directly relates to liquidity. High volume can be an indication of strength (price likely to continue moving) or absorption (price likely to halt/turn). Same applies to active volume, but with an element of aggression. High active volume serves as an indication of exuberance or otherwise forceful transacting, like stop losses triggering. With these principles in mind, the composition of volume allows distinguishing potentially important events.
Example #1 : Identifying areas of trapped market participants
Often when volume spikes distinctively, we can make the case that price has found sufficient liquidity to halt/turn. Since we know which side was absorbed, in what quantity and type (passive/active), we can identify areas of trapped market participants. In such scenarios, the higher the dominant active volume and volume spike itself, the better.
Example #2 : Identifying a healthy trend
A healthy trend is one that has an active and consistent bid driving it. When this is the case, it can be seen in consistently supportive active volume.
Example #3 : Identifying inflection points
When dominant side of volume and dominant side of active volume diverge, something is up. A divergence often marks an area of indecision, hinting an imminent move one way or the other.
Volume CVD and Open Interest HeatmapTaking Volume and Open Interest data to the next level of visualization I created a 'heatmap'. The indicator uses a colour gradient and plots boxes from the source candle to the current candle with one of the following data sources:
- Volume - the total volume of transactions, buys and sells
- Up Volume - the total volume from buys only
- Down Volume - the total volume from sells only
- Up/Down Volume (Net) - the difference in the Buy Volume and Sell Volume
- Cumulative Delta - the sum of the up/down volume for the previous 14 bars
- Cumulative Delta EMA - a smoothed average of the sum of the up/down volume for the previous 14 bars, over a 14 period EMA
- Open Interest - a user defined ticker, whose value is added to the plot, while this is designed to be used with Open Interest tickers, you can actually choose any ticker you want, perhaps you want to see DXY while charting Bitcoin!
You can define the lookback period, though you should make sure your timeframe for volume source data, is high enough to accommodate the lookback. TradingView will only fetch 5000 candles worth of data, so at 1 min volume data, you can only lookback 83 hours.
While similar, Volume and Open Interest are not the same. To me the simplest explanation is Volume shows the trades that have been executed and the buy/sell direction, while Open Interest shows the value of open trades that are yet to be completed.
Volume shows strength, sentiment and volatility .
Open Interest does not show direction, but does indicate momentum and liquidity in the market.
With this novel way of visualizing these, you can also now determine where all that liquidity and positions came from and therefore might have resting liquidity below.
Volume CVD and Open InterestVolume, Cumulative Delta Volume and Open Interest are great indications of strength and sentiment in the market. Until now they have required separate indicators, but this indicator can show them all.
With a clean and aesthetic plot, this indicator has the option to choose the data source:
- Volume - the total volume of transactions, buys and sells
- Up Volume - the total volume from buys only
- Down Volume - the total volume from sells only
- Up/Down Volume (Net) - the difference in the Buy Volume and Sell Volume
- Cumulative Delta - the sum of the up/down volume for the previous 14 bars
- Cumulative Delta EMA - a smoothed average of the sum of the up/down volume for the previous 14 bars, over a 14 period EMA
- Open Interest - a user defined ticker, whose value is added to the plot, while this is designed to be used with Open Interest tickers, you can actually choose any ticker you want, perhaps you want to see DXY while charting Bitcoin!
There are several customization features for the colour of the plot, with a nice gradient colouring from high to low. You can choose the lookback which defines only the highest and lowest values for the colour gradient. There is also an option for how the Open Interest value is determined, based on Close, Open or differences between previous values.
While similar, Volume and Open Interest are not the same. To me the simplest explanation is Volume shows the trades that have been executed and the buy/sell direction, while Open Interest shows the value of open trades that are yet to be completed.
Volume shows strength, sentiment and volatility.
Open Interest does not show direction, but does indicate momentum and liquidity in the market.
Alex's Dikfat Velocity 2hr CCI Color SignalerAlex's Dikfat Velocity 2hr CCI Color Signaler
As most traders have experienced at one time or another, over bought and oversold readings are relative in nature and do not always work as a standalone reading.
Momentum indicators such as the Commodity Channel Index ( CCI ) have to be understood and read correctly to determine the value in a momentum reading.
When an asset is "Overbought" or "Oversold" the reading can remain in this region Irrationally for extended periods as the market remains in irrational trend.
In order to better understand this and other readings on a momentum indicator clues such as divergence, exhaustion, continuation, time and frequency as well as the actual velocity of the movement must be measured. In addition, there are very specific measurement lines on the CCI that must be read and that can reject or break and result in the asset either loosing or gaining momentum in one direction or the other. These are the dashed lines in the background.
For the purposes of this Indicator, the actual function, characterization and use of CCI will not be explained here as the colored indications themselves will do all the work for you.
It is very important to know that the calculations used to signal the color filling ARE NOT based on simple breaks of the dashed background lines as traditionally read with a CCI indicator.
The calculations used in this Indicator are based on a very fine tuned mathematical algorithm that measure an unseen element within the CCI . When the VELOCITY of a move in momentum is met, the color fills will begin. When the VELOCITY of the move changes, so to will colorization. This has led to some of the best High Probability Long and Short Sale signaling in any CCI indicator. Pairing this with your favorite chart indicators and personal analysis will result in high tradability but can also be used stand alone.
Remember: No one single indicator should ever be used to determine market signaling.
A basic understanding of a CCI indicator is recommended before using this indicator.
This indicator and the proprietary calculations used were built and meant to be used on the 2 Hour Timeframe. The indicator is open to all time frames and accuracy increases as the time frame increases.
It is recommended that if you use this indicator on a lower timeframe, to pull CCI readings from a higher Timeframe as found in the settings.
This indicator signals long and short opportunities. High Probability long and short trades, bullish and bearish divergence building, market time traps and bullish / bearish continuation as well as exhaustion of these moves.
There is also a companion indicator which will signal the High Probability Long and Short trades on the candle chart called "Alex's Dikfat CCI Equity Signaler" Which will place white Triangles on the candle chart showing high probability long entries and Orange Triangles for High Probability short entries. These are also built into the CCI line and can be turned on in this indicator.
Color Code:
Bullish Continuation: (Background Color Black)
The function of the black background colorization is to alert the user that a bullish move has begun and is currently in a strong continuation period. the longer the black background color draws, the more sustained or trending up the current move is. When these background lines begin to break and start to appear as more frequent broken background lines, exhaustion in the move can be assumed. When the black stops drawing all together, the strength of the continuation move is gone.
Bearish Continuation: (Background Color Fuchsia)
The function of the fuchsia background colorization is to alert the user that a bearish move has begun and is currently in a strong continuation period. the longer the fuchsia background color draws, the more sustained or trending down the current move is. When these background lines begin to break and start to appear as more frequent broken background lines, exhaustion in the move can be assumed. When the fuchsia stops drawing all together, the strength of the continuation move is gone.
High Probability Long/Short:
These buy and sell opportunities were designed to give a trader the best signal/entry on a Long or a Short with the highest probability of making a large and typically sustained impulse move.
High Probability Long: (White Color Fill)
The High Probability Long is a signal to BUY with the best possible entry on an a pending large impulse move to the upside. When White begins to fill, The long is extremely likely. The signal is confirmed on the close of the following candle after white begins to draw unless an opposing color immediately follows, or white dips below the zero line. White will always usually start just below the zero line in the highest probability scenarios.
High Probability Short: (Orange Color Fill)
The High Probability Short is a signal to SELL SHORT with the best possible entry on a pending large impulse move to the downside. When Orange begins to fill, The Short is extremely likely. The signal is confirmed on the close of the following candle after orange begins to draw unless an opposing color immediately follows. Some of the best entries for Orange are when it starts at the END of a black stripe in the background and better so when Orange dips below zero for entry. The signal was designed to color early enough to get in a short during consolidation before the move.
Long and Short Opportunities: Long and Short opportunities are just as they sound. Coloring will signal green for a long opportunity and red for a short opportunity. These opportunities are not always guaranteed and usually result in an lesser impulse move in one direction with a shorter duration.
Long Opportunity: (Green)
The Long Opportunity is a signal that a Long is possible however with less likely odds of a larger more sustained move. When Green begins to fill, a long opportunity is available. The signal is confirmed on the close of the following candle after green begins to draw unless an opposing color immediately follows, or green dips below the zero line. Green will always usually start just above the zero line and have the best opportunities at the end of Bullish Divergence (Blue) at the end of Bearish Continuation (Fuchsia) or a non filled CCI .
Short Opportunity: (Red)
The Short Opportunity is a signal that a Short is possible however with less likely odds of a larger more sustained move. When Red begins to fill, a short opportunity is available. The signal is confirmed on the close of the following candle after red begins to draw unless an opposing color immediately follows. Some of the best entries for Red are when it starts at the END of a black stripe in the background (higher odds than other red signaling). The signal was designed to color early enough to get in a short during consolidation before the move and better so if orange develops after red.
Bullish Divergence: (Dark Blue)
Dark Blue colors when Bullish Divergence is detected. Bullish divergence is a signal that momentum is building higher within the asset for an up move while price action in the candle chart makes lower lows. Bullish Divergence is not a signal to buy or sell but rather a sign post to say WAIT. Bullish divergence is building and a Long is coming. Some traders will buy bullish divergence in anticipation of a move and is only equitable if you have the cash and resolve to follow it through for as long as it is developing. Buying or selling divergence right away is not always the best practice unless a hard dip below all momentum lines followed by an immediate buy signal from white or green resulting in a drop base rally.
Bearish Divergence: (Dark Maroon)
Dark Maroon colors when Bearish Divergence is detected. Bearish divergence is a signal that momentum is dropping out of the asset for a move lower while price action in the candle chart makes higher highs. Bearish Divergence is not a signal to buy or sell but rather a sign post to say WAIT. Bearish divergence is building and a Short is coming. Some traders will sell bearish divergence in anticipation of a move and is only equitable if you have the cash and resolve to follow it through for as long as it is developing. Buying or selling divergence right away is not always the best practice unless a hard rip above all momentum lines followed by an immediate sell signal from red or orange resulting in a rally base drop.
No Color Fill:
When CCI has no color fill whatsoever it is telling the trader there are no high velocity movements in momentum in any direction. Best practice is to do nothing and wait out the Time Trap currently on the chart until signaling develops.
Time and Frequency:
Time and frequency is notable throughout the indicator. First and foremost when CCI is not being filled it is best practice to do nothing as there is NO Velocity of Movement within the asset at that time. This is one of the most obvious of Time Traps.
Bullish and Bearish Divergence is also a type of Time Trap. The longer these develop, the more weak hands are shaken out of the market and derivatives traders have their premium burned. Best practice with divergences is also to wait until adequate signaling develops, or be willing to buy or sell the appropriate divergence by accumulating or distributing for as long as it develops; or simply to buy/sell and hold for the move.
Any Sustained color for extended periods of time is also a time trap signaling to the trader that the asset is being irrational in its present move.
Bullish and Bearish Continuation:
These also deal with time and frequency most importantly. When we are on a sustained Bull Run, black will color in the background continuously. When the black starts to barcode or break up, exhaustion of the bull run is assumed as the frequency of the run becomes erratic. Inversely, When we are on a sustained Bear Run, fuchsia will color in the background continuously. When the fuchsia starts to barcode or break up, exhaustion of the bear run is assumed as the frequency of the run becomes erratic.
The color scheme is designed to be read from darkest to lightest when a sequence of events is found. I.E Dark Maroon>Red>Orange or Inversely Dark Blue>Green>White
In keeping with the best practices and traditions of TradingView, we have published this as a public script with the best intentions of aiding the TradingView community in unique and valuable ways. While some of our best indicators are by invite only, we feel an addition to the community of this magnitude will add to the fabric and substance of community.
