Advanced Volatility-Adjusted Momentum IndexAdvanced Volatility-Adjusted Momentum Index (AVAMI)
The AVAMI is a powerful and versatile trading index which enhances the traditional momentum readings by introducing a volatility adjustment. This results in a more nuanced interpretation of market momentum, considering not only the rate of price changes but also the inherent volatility of the asset.
Settings and Parameters:
Momentum Length: This parameter sets the number of periods used to calculate the momentum, which is essentially the rate of change of the asset's price. A shorter length value means the momentum calculation will be more sensitive to recent price changes. Conversely, a longer length will yield a smoother and more stabilized momentum value, thereby reducing the impact of short-term price fluctuations.
Volatility Length: This parameter is responsible for determining the number of periods to be considered in the calculation of standard deviation of returns, which acts as the volatility measure. A shorter length will result in a more reactive volatility measure, while a longer length will produce a more stable, but less sensitive measure of volatility.
Smoothing Length: This parameter sets the number of periods used to apply a moving average smoothing to the AVAMI and its signal line. The purpose of this is to minimize the impact of volatile periods and to make the indicator's lines smoother and easier to interpret.
Lookback Period for Scaling: This is the number of periods used when rescaling the AVAMI values. The rescaling process is necessary to ensure that the AVAMI values remain within a consistent and interpretable range over time.
Overbought and Oversold Levels: These levels are thresholds at which the asset is considered overbought (potentially overvalued) or oversold (potentially undervalued), respectively. For instance, if the AVAMI exceeds the overbought level, traders may consider it as a possible selling opportunity, anticipating a price correction. Conversely, if the AVAMI falls below the oversold level, it could be seen as a buying opportunity, with the expectation of a price bounce.
Mid Level: This level represents the middle ground between the overbought and oversold levels. Crossing the mid-level line from below can be perceived as an increasing bullish momentum, and vice versa.
Show Divergences and Hidden Divergences: These checkboxes give traders the option to display regular and hidden divergences between the AVAMI and the asset's price. Divergences are crucial market structures that often signal potential price reversals.
Index Logic:
The AVAMI index begins with the calculation of a simple rate of change momentum indicator. This raw momentum is then adjusted by the standard deviation of log returns, which acts as a measure of market volatility. This adjustment process ensures that the resulting momentum index encapsulates not only the speed of price changes but also the market's volatility context.
The raw AVAMI is then smoothed using a moving average, and a signal line is generated as an exponential moving average (EMA) of this smoothed AVAMI. This signal line serves as a trigger for potential trading signals when crossed by the AVAMI.
The script also includes an algorithm to identify 'fractals', which are distinct price patterns that often act as potential market reversal points. These fractals are utilized to spot both regular and hidden divergences between the asset's price and the AVAMI.
Application and Strategy Concepts:
The AVAMI is a versatile tool that can be integrated into various trading strategies. Traders can utilize the overbought and oversold levels to identify potential reversal points. The AVAMI crossing the mid-level line can signify a change in market momentum. Additionally, the identification of regular and hidden divergences can serve as potential trading signals:
Regular Divergence: This happens when the asset's price records a new high/low, but the AVAMI fails to follow suit, suggesting a possible trend reversal. For instance, if the asset's price forms a higher high but the AVAMI forms a lower high, it's a regular bearish divergence, indicating potential price downturn.
Hidden Divergence: This is observed when the price forms a lower high/higher low, but the AVAMI forms a higher high/lower low, suggesting the continuation of the prevailing trend. For example, if the price forms a lower low during a downtrend, but the AVAMI forms a higher low, it's a hidden bullish divergence, signaling the potential continuation of the downtrend.
As with any trading tool, the AVAMI should not be used in isolation but in conjunction with other technical analysis tools and within the context of a well-defined trading plan.
Komut dosyalarını "Divergence" için ara
Lyapunov Market Instability (LMI)Lyapunov Market Instability (LMI)
What is Lyapunov Market Instability?
Lyapunov Market Instability (LMI) is a revolutionary indicator that brings chaos theory from theoretical physics into practical trading. By calculating Lyapunov exponents—a measure of how rapidly nearby trajectories diverge in phase space—LMI quantifies market sensitivity to initial conditions. This isn't another oscillator or trend indicator; it's a mathematical lens that reveals whether markets are in chaotic (trending) or stable (ranging) regimes.
Inspired by the meditative color field paintings of Mark Rothko, this indicator transforms complex chaos mathematics into an intuitive visual experience. The elegant simplicity of the visualization belies the sophisticated theory underneath—just as Rothko's seemingly simple color blocks contain profound depth.
Theoretical Foundation (Chaos Theory & Lyapunov Exponents)
In dynamical systems, the Lyapunov exponent (λ) measures the rate of separation of infinitesimally close trajectories:
λ > 0: System is chaotic—small changes lead to dramatically different outcomes (butterfly effect)
λ < 0: System is stable—trajectories converge, perturbations die out
λ ≈ 0: Edge of chaos—transition between regimes
Phase Space Reconstruction
Using Takens' embedding theorem , we reconstruct market dynamics in higher dimensions:
Time-delay embedding: Create vectors from price at different lags
Nearest neighbor search: Find historically similar market states
Trajectory evolution: Track how these similar states diverged over time
Divergence rate: Calculate average exponential separation
Market Application
Chaotic markets (λ > threshold): Strong trends emerge, momentum dominates, use breakout strategies
Stable markets (λ < threshold): Mean reversion dominates, fade extremes, range-bound strategies work
Transition zones: Market regime about to change, reduce position size, wait for confirmation
How LMI Works
1. Phase Space Construction
Each point in time is embedded as a vector using historical prices at specific delays (τ). This reveals the market's hidden attractor structure.
2. Lyapunov Calculation
For each current state, we:
- Find similar historical states within epsilon (ε) distance
- Track how these initially similar states evolved
- Measure exponential divergence rate
- Average across multiple trajectories for robustness
3. Signal Generation
Chaos signals: When λ crosses above threshold, market enters trending regime
Stability signals: When λ crosses below threshold, market enters ranging regime
Divergence detection: Price/Lyapunov divergences signal potential reversals
4. Rothko Visualization
Color fields: Background zones represent market states with Rothko-inspired palettes
Glowing line: Lyapunov exponent with intensity reflecting market state
Minimalist design: Focus on essential information without clutter
Inputs:
📐 Lyapunov Parameters
Embedding Dimension (default: 3)
Dimensions for phase space reconstruction
2-3: Simple dynamics (crypto/forex) - captures basic momentum patterns
4-5: Complex dynamics (stocks/indices) - captures intricate market structures
Higher dimensions need exponentially more data but reveal deeper patterns
Time Delay τ (default: 1)
Lag between phase space coordinates
1: High-frequency (1m-15m charts) - captures rapid market shifts
2-3: Medium frequency (1H-4H) - balances noise and signal
4-5: Low frequency (Daily+) - focuses on major regime changes
Match to your timeframe's natural cycle
Initial Separation ε (default: 0.001)
Neighborhood size for finding similar states
0.0001-0.0005: Highly liquid markets (major forex pairs)
0.0005-0.002: Normal markets (large-cap stocks)
0.002-0.01: Volatile markets (crypto, small-caps)
Smaller = more sensitive to chaos onset
Evolution Steps (default: 10)
How far to track trajectory divergence
5-10: Fast signals for scalping - quick regime detection
10-20: Balanced for day trading - reliable signals
20-30: Slow signals for swing trading - major regime shifts only
Nearest Neighbors (default: 5)
Phase space points for averaging
3-4: Noisy/fast markets - adapts quickly
5-6: Balanced (recommended) - smooth yet responsive
7-10: Smooth/slow markets - very stable signals
📊 Signal Parameters
Chaos Threshold (default: 0.05)
Lyapunov value above which market is chaotic
0.01-0.03: Sensitive - more chaos signals, earlier detection
0.05: Balanced - optimal for most markets
0.1-0.2: Conservative - only strong trends trigger
Stability Threshold (default: -0.05)
Lyapunov value below which market is stable
-0.01 to -0.03: Sensitive - quick stability detection
-0.05: Balanced - reliable ranging signals
-0.1 to -0.2: Conservative - only deep stability
Signal Smoothing (default: 3)
EMA period for noise reduction
1-2: Raw signals for experienced traders
3-5: Balanced - recommended for most
6-10: Very smooth for position traders
🎨 Rothko Visualization
Rothko Classic: Deep reds for chaos, midnight blues for stability
Orange/Red: Warm sunset tones throughout
Blue/Black: Cool, meditative ocean depths
Purple/Grey: Subtle, sophisticated palette
Visual Options:
Market Zones : Background fields showing regime areas
Transitions: Arrows marking regime changes
Divergences: Labels for price/Lyapunov divergences
Dashboard: Real-time state and trading signals
Guide: Educational panel explaining the theory
Visual Logic & Interpretation
Main Elements
Lyapunov Line: The heart of the indicator
Above chaos threshold: Market is trending, follow momentum
Below stability threshold: Market is ranging, fade extremes
Between thresholds: Transition zone, reduce risk
Background Zones: Rothko-inspired color fields
Red zone: Chaotic regime (trending)
Gray zone: Transition (uncertain)
Blue zone: Stable regime (ranging)
Transition Markers:
Up triangle: Entering chaos - start trend following
Down triangle: Entering stability - start mean reversion
Divergence Signals:
Bullish: Price makes low but Lyapunov rising (stability breaking down)
Bearish: Price makes high but Lyapunov falling (chaos dissipating)
Dashboard Information
Market State: Current regime (Chaotic/Stable/Transitioning)
Trading Bias: Specific strategy recommendation
Lyapunov λ: Raw value for precision
Signal Strength: Confidence in current regime
Last Change: Bars since last regime shift
Action: Clear trading directive
Trading Strategies
In Chaotic Regime (λ > threshold)
Follow trends aggressively: Breakouts have high success rate
Use momentum strategies: Moving average crossovers work well
Wider stops: Expect larger swings
Pyramid into winners: Trends tend to persist
In Stable Regime (λ < threshold)
Fade extremes: Mean reversion dominates
Use oscillators: RSI, Stochastic work well
Tighter stops: Smaller expected moves
Scale out at targets: Trends don't persist
In Transition Zone
Reduce position size: Uncertainty is high
Wait for confirmation: Let regime establish
Use options: Volatility strategies may work
Monitor closely: Quick changes possible
Advanced Techniques
- Multi-Timeframe Analysis
- Higher timeframe LMI for regime context
- Lower timeframe for entry timing
- Alignment = highest probability trades
- Divergence Trading
- Most powerful at regime boundaries
- Combine with support/resistance
- Use for early reversal detection
- Volatility Correlation
- Chaos often precedes volatility expansion
- Stability often precedes volatility contraction
- Use for options strategies
Originality & Innovation
LMI represents a genuine breakthrough in applying chaos theory to markets:
True Lyapunov Calculation: Not a simplified proxy but actual phase space reconstruction and divergence measurement
Rothko Aesthetic: Transforms complex math into meditative visual experience
Regime Detection: Identifies market state changes before price makes them obvious
Practical Application: Clear, actionable signals from theoretical physics
This is not a combination of existing indicators or a visual makeover of standard tools. It's a fundamental rethinking of how we measure and visualize market dynamics.
Best Practices
Start with defaults: Parameters are optimized for broad market conditions
Match to your timeframe: Adjust tau and evolution steps
Confirm with price action: LMI shows regime, not direction
Use appropriate strategies: Chaos = trend, Stability = reversion
Respect transitions: Reduce risk during regime changes
Alerts Available
Chaos Entry: Market entering chaotic regime - prepare for trends
Stability Entry: Market entering stable regime - prepare for ranges
Bullish Divergence: Potential bottom forming
Bearish Divergence: Potential top forming
Chart Information
Script Name: Lyapunov Market Instability (LMI) Recommended Use: All markets, all timeframes Best Performance: Liquid markets with clear regimes
Academic References
Takens, F. (1981). "Detecting strange attractors in turbulence"
Wolf, A. et al. (1985). "Determining Lyapunov exponents from a time series"
Rosenstein, M. et al. (1993). "A practical method for calculating largest Lyapunov exponents"
Note: After completing this indicator, I discovered @loxx's 2022 "Lyapunov Hodrick-Prescott Oscillator w/ DSL". While both explore Lyapunov exponents, they represent independent implementations with different methodologies and applications. This indicator uses phase space reconstruction for regime detection, while his combines Lyapunov concepts with HP filtering.
Disclaimer
This indicator is for research and educational purposes only. It does not constitute financial advice or provide direct buy/sell signals. Chaos theory reveals market character, not future prices. Always use proper risk management and combine with your own analysis. Past performance does not guarantee future results.
See markets through the lens of chaos. Trade the regime, not the noise.
Bringing theoretical physics to practical trading through the meditative aesthetics of Mark Rothko
Trade with insight. Trade with anticipation.
— Dskyz , for DAFE Trading Systems
MACD with Holt–Winters Smoothing [AIBitcoinTrend]👽 MACD with Holt–Winters Smoothing (AIBitcoinTrend)
The MACD with Holt–Winters Smoothing is an momentum indicator that enhances traditional MACD analysis by incorporating Holt–Winters exponential smoothing. This adaptation reduces lag while maintaining trend sensitivity, making it more effective for detecting trend reversals and sustained momentum shifts. Additionally, the indicator includes real-time divergence detection and an ATR-based trailing stop system, helping traders manage risk dynamically.
👽 What Makes the MACD with Holt–Winters Smoothing Unique?
Unlike the standard MACD, which relies on simple exponential moving averages, this version applies Holt–Winters smoothing to better capture trends while filtering out market noise. Combined with real-time divergence detection and a trailing stop system, this indicator allows traders to:
✅ Identify trend strength with a dynamically smoothed MACD signal.
✅ Detect bullish and bearish divergences in real time.
✅Implement Crossover/Crossunder signals tied to ATR-based trailing stops for risk management
👽 The Math Behind the Indicator
👾 Holt–Winters Smoothing for MACD
Traditional MACD calculations use exponential moving averages (EMA) to identify momentum. This indicator improves upon it by applying Holt’s linear trend equations, which enhance signal accuracy by reducing lag and smoothing out fluctuations.
Key Features:
Alpha (α) - Controls the weight of the new data in smoothing.
Beta (β) - Determines how fast the trend component adapts to new changes.
The Holt–Winters Signal Line provides a refined MACD crossover system for better trade execution.
👾 Real-Time Divergence Detection
The indicator identifies bullish and bearish divergences between MACD and price action.
Bullish Divergence: Occurs when price makes a lower low, but MACD makes a higher low – signaling potential upward momentum.
Bearish Divergence: Occurs when price makes a higher high, but MACD makes a lower high – signaling potential downward momentum.
👾 Dynamic ATR-Based Trailing Stop
The indicator includes a trailing stop system based on ATR (Average True Range). This allows traders to manage positions dynamically based on volatility.
Bullish Trailing Stop: Triggers when MACD crosses above the Holt–Winters signal, with a stop placed at low - (ATR × Multiplier).
Bearish Trailing Stop: Triggers when MACD crosses below the Holt–Winters signal, with a stop placed at high + (ATR × Multiplier).
Trailing Stop Adjustments: Expands or contracts dynamically with market conditions, reducing premature exits while securing profits.
👽 How Traders Can Use This Indicator
👾 Divergence Trading
Traders can use real-time divergence detection to anticipate trend reversals before they occur.
Bullish Divergence Setup:
Look for MACD making a higher low, while price makes a lower low.
Enter long when MACD confirms upward momentum.
Bearish Divergence Setup:
Look for MACD making a lower high, while price makes a higher high.
Enter short when MACD confirms downward momentum.
👾 Trailing Stop & Signal-Based Trading
Bullish Setup:
✅ MACD crosses above the Holt–Winters signal.
✅ A bullish trailing stop is placed using low - ATR × Multiplier.
✅ Exit if the price crosses below the stop.
Bearish Setup:
✅ MACD crosses below the Holt–Winters signal.
✅ A bearish trailing stop is placed using high + ATR × Multiplier.
✅ Exit if the price crosses above the stop.
This systematic trade management approach helps traders lock in profits while reducing drawdowns.
👽 Why It’s Useful for Traders
Lag Reduction: Holt–Winters smoothing ensures faster and more reliable trend detection.
Real-Time Divergence Alerts: Identify potential reversals before they happen.
Adaptive Risk Management: ATR-based trailing stops adjust to volatility dynamically.
Works Across Markets & Timeframes: Effective for stocks, forex, crypto, and futures trading.
👽 Indicator Settings
MACD Fast & Slow Lengths: Adjust the MACD short- and long-term EMA periods.
Holt–Winters Alpha & Beta: Fine-tune the smoothing sensitivity.
Enable Divergence Detection: Toggle real-time divergence analysis.
Lookback Period for Divergences: Configure how far back pivot points are detected.
ATR Multiplier for Trailing Stops: Adjust stop-loss sensitivity to market volatility.
Trend Filtering: Enable signal filtering based on trend direction.
Disclaimer: This indicator is designed for educational purposes and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.
Enhanced RSIEnhanced RSI with Phases, Divergences & Volume Control:
This advanced RSI indicator expands on the traditional Relative Strength Index by introducing dynamic exhaustion phase detection, automatic divergence identification, and volume-based control evaluation. It provides traders with actionable insights into trend momentum, potential reversals, and market dominance.
Key Features:
Dynamic Exhaustion Phases:
Identifies real phases of the RSI based on slope and momentum:
Acceleration: Momentum increasing rapidly (green phase).
Deceleration: Momentum weakening (red phase).
Plateau: Momentum flattening (yellow phase).
Neutral: No significant momentum shift detected.
Phases are displayed dynamically in a box on the chart.
Automatic Divergence Detection:
Bullish Divergence: Identified when price makes a lower low while RSI makes a higher low.
Bearish Divergence: Identified when price makes a higher high while RSI makes a lower high.
Divergences are marked directly on the RSI chart with labeled circles.
Volume-Based Control Evaluation:
Analyzes price action relative to volume to determine market dominance:
Bulls in Control: Closing price is higher than the opening price.
Bears in Control: Closing price is lower than the opening price.
Neutral: No significant dominance (closing equals opening).
Volume status is displayed alongside the RSI phase in the chart’s top-left box.
Custom RSI Plot:
Includes overbought (70), oversold (30), and neutral (50) levels for easier interpretation of market conditions.
RSI plotted in blue for clarity.
How to Use:
Add to Chart:
Apply this indicator to any chart in TradingView.
Interpret the RSI Phase Box:
Use the RSI phase (Acceleration, Deceleration, Plateau, Neutral) to identify trend momentum.
Combine the phase with the volume status (Bulls or Bears in Control) to confirm market sentiment.
Identify Divergences:
Look for Bullish Divergence (potential upward reversal) or Bearish Divergence (potential downward reversal) marked directly on the RSI chart.
Adjust Settings:
Customize the RSI period, phase sensitivity, and divergence lookback period to fit your trading style.
Disclaimer:
This indicator is a tool to assist with technical analysis. It is not a financial advice or a guarantee of market performance. Always combine this indicator with other methods or strategies for better results.
GMO (Gyroscopic Momentum Oscillator) GMO
Overview
This indicator fuses multiple advanced concepts to give traders a comprehensive view of market momentum, volatility, and potential turning points. It leverages the Gyroscopic Momentum Oscillator (GMO) foundation and layers on IQR-based bands, dynamic ATR-adjusted OB/OS levels, torque filtering, and divergence detection. The outcome is a versatile tool that can assist in identifying both short-term squeezes and long-term reversal zones while detecting subtle shifts in momentum acceleration.
Key Components:
Gyroscopic Momentum Oscillator (GMO) – A physics-inspired metric capturing trend stability and momentum by treating price dynamics as “angle,” “angular velocity,” and “inertia.”
IQR Bands – Highlight statistically typical oscillation ranges, providing insight into short-term squeezes and potential near-term trend shifts.
ATR-Adjusted OB/OS Levels – Dynamic thresholds for overbought/oversold conditions, adapting to volatility, aiding in identifying long-term potential reversal zones.
Torque Filtering & Scaling – Smooths and thresholds torque (the rate of change of momentum) and visually scales it for clarity, indicating sudden force changes that may precede volatility adjustments.
Divergence Detection – Highlights potential reversal cues by comparing oscillator swings against price swings, revealing regular and hidden bullish/bearish divergences.
Conceptual Insights
IQR Bands (Short-Term Squeeze & Trend Direction):
Short-Term Momentum and Squeeze: The IQR (Interquartile Range) bands show where the oscillator tends to “live” statistically. When the GMO line hovers within compressed IQR bands, it can signal a momentum squeeze phase. Exiting these tight ranges often correlates with short-term breakout opportunities.
Trend Reversals: If the oscillator pushes beyond these IQR ranges, it may indicate an emerging short-term trend change. Traders can watch for GMO escaping the IQR “comfort zone” to anticipate a new directional move.
Dynamic OB/OS Levels (Long-Term Reversal Zones):
ATR-Based Adaptive Thresholds: Instead of static overbought/oversold lines, this tool uses ATR to adjust OB/OS boundaries. In calm markets, these lines remain closer to ±90. As volatility rises, they approach ±100, reflecting greater permissible swings.
Long-Term Trend Reversal Potential: If GMO hits these dynamically adjusted OB/OS extremes, it suggests conditions ripe for possible long-term trend reversals. Traders seeking major inflection points may find these adaptive levels more reliable than fixed thresholds.
Torque (Sudden Force & Directional Shifts):
Momentum Acceleration Insight: Torque represents the second derivative of momentum, highlighting how quickly momentum is changing. High positive torque suggests a rapidly strengthening bullish force, while high negative torque warns of sudden bearish pressure.
Early Warning & Stability/Volatility Adjustments: By monitoring torque spikes, traders can anticipate momentum shifts before price fully confirms them. This can signal imminent changes in stability or increased volatility phases.
Indicator Parameters and Usage
GMO-Related Inputs:
lenPivot (Default 100): Length for calculating the pivot line (slow market axis).
lenSmoothAngle (Default 200): Smooths the angle measure, reducing noise.
lenATR (Default 14): ATR period for scaling factor, linking price changes to volatility.
useVolatility (Default true): If true, volatility (ATR) influences inertia, adjusting momentum calculations.
useVolume (Default false): If true, volume affects inertia, adding a liquidity dimension to momentum.
lenVolSmoothing (Default 50): Smooths volume calculations if useVolume is enabled.
lenMomentumSmooth (Default 20): EMA smoothing of GMO for a cleaner oscillator line.
normalizeRange (Default true): Normalizes GMO to a fixed range for consistent interpretation.
lenNorm (Default 100): Length for normalization window, ensuring GMO’s scale adapts to recent extremes.
IQR Bands Settings:
iqrLength (Default 14): Period to compute the oscillator’s statistical IQR.
iqrMult (Default 1.5): Multiplier to define the upper and lower IQR-based bands.
ATR-Adjusted OB/OS Settings:
baseOBLevel (Fixed at 90) and baseOSLevel (Fixed at 90): Base lines for OB/OS.
atrPeriodForOBOS (Default 50): ATR length for adjusting OB/OS thresholds dynamically.
atrScaling (Default 0.2): Controls how strongly volatility affects OB/OS lines.
Torque Filtering & Visualization:
torqueSmoothLength (Default 10): EMA length to smooth raw torque values.
atrPeriodForTorque (Default 14): ATR period to determine torque threshold.
atrTorqueScaling (Default 0.5): Scales ATR for determining torque’s “significant” threshold.
torqueScaleFactor (Default 10.0): Multiplies the torque values for better visual prominence on the chart.
Divergence Inputs:
showDivergences (Default true): Toggles divergence signals.
lbR, lbL (Defaults 5): Pivot lookback periods to identify swing highs and lows.
rangeUpper, rangeLower: Bar constraints to validate potential divergences.
plotBull, plotHiddenBull, plotBear, plotHiddenBear: Toggles for each divergence type.
Visual Elements on the Chart
GMO Line (Blue) & Zero Line (Gray):
GMO line oscillates around zero. Positive territory hints bullish momentum, negative suggests bearish.
IQR Bands (Teal Lines & Yellow Fill):
Upper/lower bands form a statistical “normal range” for GMO. The median line (purple) provides a central reference. Contraction near these bands indicates a short-term squeeze, expansions beyond them can signal emerging short-term trend changes.
Dynamic OB/OS (Red & Green Lines):
Red line near +90 to +100: Overbought zone (dynamic).
Green line near -90 to -100: Oversold zone (dynamic).
Movement into these zones may mark significant, longer-term reversal potential.
Torque Histogram (Colored Bars):
Plotted below GMO. Green bars = torque above positive threshold (bullish acceleration).
Red bars = torque below negative threshold (bearish acceleration).
Gray bars = neutral range.
This provides early warnings of momentum shifts before price responds fully.
Precession (Orange Line):
Scaled for visibility, adds context to long-term angular shifts in the oscillator.
Divergence Signals (Shapes):
Circles and offset lines highlight regular or hidden bullish/bearish divergences, offering potential reversal signals.
Practical Interpretation & Strategy
Short-Term Opportunities (IQR Focus):
If GMO compresses within IQR bands, the market might be “winding up.” A break above/below these bands can signal a short-term trade opportunity.
Long-Term Reversal Zones (Dynamic OB/OS):
When GMO approaches these dynamically adjusted extremes, conditions may be ripe for a major trend shift. This is particularly useful for swing or position traders looking for significant turnarounds.
Monitoring Torque for Acceleration Cues:
Torque spikes can precede price action, serving as an early catalyst signal. If torque turns strongly positive, anticipate bullish acceleration; strongly negative torque may warn of upcoming bearish pressure.
Confirm with Divergences:
Divergences between price and GMO reinforce potential reversal or continuation signals identified by IQR, OB/OS, or torque. Use them to increase confidence in setups.
Tips and Best Practices
Combine with Price & Volume Action:
While the indicator is powerful, always confirm signals with actual price structure, volume patterns, or other trend-following tools.
Adjust Lengths & Periods as Needed:
Shorter lengths = more responsiveness but more noise. Longer lengths = smoother signals but greater lag. Tune parameters to match your trading style and timeframe.
Use ATR and Volume Settings Wisely:
If markets are highly volatile, consider useVolatility to refine momentum readings. If liquidity is key, enable useVolume.
Scaling Torque:
If torque bars are hard to read, increase torqueScaleFactor further. The scaling doesn’t affect logic—only visibility.
Conclusion
The “GMO + IQR Bands + ATR-Adjusted OB/OS + Torque Filtering (Scaled)” indicator presents a holistic framework for understanding market momentum across multiple timescales and conditions. By interpreting short-term squeezes via IQR bands, long-term reversal zones via adaptive OB/OS, and subtle acceleration changes through torque, traders can gain advanced insights into when to anticipate breakouts, manage risk around potential reversals, and fine-tune timing for entries and exits.
This integrated approach helps navigate complex market dynamics, making it a valuable addition to any technical analysis toolkit.
Stoch_RSIStochastic RSI – Advanced Divergence Indicator
This custom indicator is an advanced version of the Stochastic RSI that not only smooths and refines the classic RSI input but also automatically detects both regular and hidden divergences using two powerful methods: fractal-based and pivot-based detection. Originally inspired by contributions from @fskrypt, @RicardoSantos, and later improved by developers like @NeoButane and @FYMD, this script has been fully refined for clarity and ease-of-use.
Key Features:
Dual Divergence Detection:
Fractal-Based Divergence: Uses a four-candle pattern to confirm top and bottom fractals for bullish and bearish divergences.
Pivot-Based Divergence: Employs TradingView’s built-in pivot functions for an alternate view of divergence conditions.
Customizable Settings:
The inputs are organized into logical groups (Stoch RSI settings, Divergence Options, Labels, and Market Open Settings) allowing you to adjust smoothing periods, RSI and Stochastic lengths, and divergence thresholds with a user-friendly interface.
Visual Enhancements:
Plots & Fills: The indicator plots both the K and D lines with corresponding fills and horizontal bands for quick visual reference.
Divergence Markers: Diamond shapes and labeled markers indicate regular and hidden divergences on the chart.
Market Open Highlighting: Optional histogram plots highlight the market open candle based on different timeframes for stocks versus non-forex symbols.
RSI of Accumulation/DistributionHow to Use the RSI of Accumulation/Distribution Indicator:
1. Identify Overbought/Oversold Conditions:
Overbought: When the RSI of the ADL is above 70, it indicates that the asset may be overbought and could be due for a pullback or correction.
Oversold: When the RSI of the ADL is below 30, it suggests that the asset may be oversold and could be poised for a rebound.
2. Look for Divergences:
Bullish Divergence: If the price is making lower lows while the RSI of the ADL is making higher lows, it can signal a potential reversal to the upside.
Bearish Divergence: If the price is making higher highs while the RSI of the ADL is making lower highs, it can indicate a potential reversal to the downside.
3. Confirm Trend Strength:
Use the RSI of the ADL to confirm the strength of a trend. For example, if the RSI is consistently above 50 during an uptrend, it suggests strong buying pressure and the trend is likely to continue.
Conversely, if the RSI is consistently below 50 during a downtrend, it indicates strong selling pressure and the trend is likely to persist.
4. Monitor for Reversals:
When the RSI of the ADL crosses above 50, it can signal a potential bullish reversal.
When the RSI of the ADL crosses below 50, it can signal a potential bearish reversal.
Is It Worth It?
The RSI of the Accumulation/Distribution Line can be a valuable tool for traders looking to gain insights into market momentum and trend strength. Here are a few reasons why it might be worth considering:
1. Volume and Price Combination: By combining price action (RSI) with volume-based analysis (ADL), this indicator provides a more comprehensive view of market dynamics.
2. Divergence Detection: It helps identify divergences between price and volume, which can be early signals of potential reversals.
3. Trend Confirmation: It offers additional confirmation of trend strength and potential reversal points, helping traders make more informed decisions.
However, like any indicator, it's important to use it in conjunction with other analysis methods and not rely on it solely for trading decisions. Backtesting the indicator on historical data and combining it with other technical analysis tools can improve its effectiveness.
Feel free to test the script in TradingView and see how it performs in different market conditions. If you have any specific questions or need further assistance, let me know! 😊
CVD Trend IndikatorCVD Trend Indicator (Cumulative Volume Delta)
This Pine Script indicator is designed to help traders visualize the underlying buying and selling pressure in the market by analyzing the Cumulative Volume Delta (CVD). It provides insights into whether buyers or sellers are more aggressive over time, aiding in trend confirmation and potential reversal identification.
How it Works:
The indicator calculates the Cumulative Volume Delta for each candlestick.
If the candle closes higher than it opened (close > open), its entire volume is considered buying volume (positive delta).
If the candle closes lower than it opened (close < open), its entire volume is considered selling volume (negative delta).
If the candle closes at the same price it opened (close == open), its delta is considered zero.
These individual candle deltas are then cumulatively summed up over time, creating the CVD line. A rising CVD indicates increasing buying pressure, while a falling CVD suggests growing selling pressure.
The indicator also features an optional Simple Moving Average (SMA) of the CVD, which helps smooth out the CVD line and identify the prevailing trend in buying/selling pressure more clearly.
Key Features:
Cumulative Volume Delta (CVD) Line:
Rising CVD (Blue Line): Indicates aggressive buying pressure is dominant, supporting bullish price action.
Falling CVD (Blue Line): Suggests aggressive selling pressure is dominant, supporting bearish price action.
CVD Moving Average (Red Line, optional):
A user-defined SMA of the CVD, which acts as a trend filter for the volume delta.
When the CVD crosses above its MA, it can signal increasing buying momentum.
When the CVD crosses below its MA, it can signal increasing selling momentum.
Session Reset:
The CVD automatically resets at the beginning of each new trading session (daily by default). This provides a fresh perspective on the day's accumulated buying or selling pressure, which is particularly useful for day traders.
Background Color Visuals:
The indicator panel's background changes color to visually represent periods of dominant buying pressure (green background when CVD > CVD MA) or selling pressure (red background when CVD < CVD MA), offering a quick glance at the market's underlying bias.
Trading Insights:
Trend Confirmation: Use a rising CVD (and its MA) to confirm an uptrend, or a falling CVD (and its MA) to confirm a downtrend.
Divergences: Look for CVD Divergences as potential reversal signals:
Bullish Divergence: Price makes a lower low, but CVD makes a higher low (suggests selling pressure is weakening).
Bearish Divergence: Price makes a higher high, but CVD makes a lower high (suggests buying pressure is weakening).
Momentum Shifts: Sudden, sharp changes in the CVD's direction or its cross over/under its MA can signal shifts in market momentum.
Support/Resistance Confirmation: Observe CVD behavior around key price levels. Weakening buying pressure at resistance or weakening selling pressure at support can confirm the strength of these levels.
Customization:
showMA: Toggle the visibility of the CVD's Moving Average.
maLength: Adjust the period for the CVD's Moving Average to control its sensitivity to recent price action. A shorter length makes it more reactive, while a longer length makes it smoother.
Disclaimer: No indicator is foolproof. Always use the CVD Trend Indicator in conjunction with other technical analysis tools, price action, and robust risk management strategies. Backtesting and forward testing are crucial for understanding its effectiveness in different market conditions and timeframes.
Aggregated Open Interest [Alpha Extract]The Aggregated Open Interest indicator provides a comprehensive view of open interest across multiple cryptocurrency exchanges, allowing traders to monitor institutional positioning and market sentiment. By aggregating data from major exchanges like Binance, BitMEX, and Kraken, this indicator offers valuable insights into potential price movements and market shifts.
🔶 CALCULATION
The indicator processes open interest data through multiple analytical methods:
Exchange Aggregation: Collects and normalizes open interest data from multiple exchanges (Binance, BitMEX, Kraken) with proper currency normalization.
Multi-Mode Analysis: Calculates various metrics including raw open interest values, OI change, OI delta, volume-weighted delta, and OI RSI.
Divergence Detection: Uses pivot point analysis to identify divergences between price action and open interest movements.
Activity Assessment: Tracks bullish and bearish activity patterns by correlating open interest changes with price movements.
Formula:
Aggregate OI = Sum of normalized open interest from selected exchanges
OI Change = Current OI - Previous OI
OI Delta = Net change in open interest across timeframes
OI Delta × Volume = OI Delta weighted by relative volume
OI RSI = Relative Strength Index applied to open interest values
OI Heatmap = Multi-timeframe visualization of OI changes across 7 distinct periods
🔶 DETAILS
Visual Features:
Open Interest: Candlestick representation of aggregated open interest
OI Change: Histogram showing period-to-period changes
OI Delta: Histogram displaying net OI movements
OI Delta × Volume: Volume-weighted OI delta for enhanced signals
OI RSI: Oscillator showing overbought/oversold OI conditions
OI Heatmap: Multi-timeframe visualization showing OI changes across 7 periods (3, 5, 8, 13, 21, 34, and 55 days)
Divergence Detection: Color-coded markers (teal for bullish, red for bearish) highlighting significant divergences between price and open interest
Analysis Table: Real-time summary of key metrics including aggregate OI, recent changes, and bullish/bearish activity.
Interpretation:
Increasing Open Interest + Rising Price: Strong bullish trend confirmation
Increasing Open Interest + Falling Price: Strong bearish trend confirmation
Decreasing Open Interest + Rising Price: Weak bullish trend (potential reversal)
Decreasing Open Interest + Falling Price: Weak bearish trend (potential reversal)
Divergences: Signal potential trend exhaustion and reversals when price moves in one direction while open interest moves in the opposite direction
Heatmap: Provides at-a-glance insight into open interest trends across multiple timeframes, with green bars indicating rising OI and red bars indicating falling OI
🔶 EXAMPLES
Trend Confirmation: Rising open interest accompanying a price increase confirms strong bullish momentum with institutional backing.
Example: During January-February 2025, rising OI during price advances confirms institutional participation in the uptrend.
Bearish Divergence: Price makes a higher high while open interest makes a lower high, signaling potential trend reversal.
Example: Red markers appear at market tops where price continues higher but open interest fails to confirm, preceding significant corrections.
Bullish Divergence : Price makes a lower low while open interest makes a higher low, indicating potential bottoming.
Example: Teal markers appear at market bottoms where price continues lower but open interest fails to confirm, preceding significant rallies.
OI Heatmap Analysis : Multiple timeframes showing consistent red signals across short to long-term periods indicate strong institutional selling pressure.
Example: When all 7 periods (3-55 days) show red during a price uptrend, this signals institutional selling into retail strength, often preceding major corrections.
🔶 SETTINGS
Customization Options:
Data Sources: Toggle different exchanges (Binance USDT/USD/BUSD, BitMEX USD/USDT, Kraken USD)
Display Mode: Choose between Open Interest, OI Change, OI Delta, OI Delta × Volume, OI RSI, and OI Heatmap
Currency Units: Display in USD or base cryptocurrency (COIN)
Analysis Tools: Moving Average (length and color), RSI (length and color)
Divergence Detection: Enable/disable signals, adjust lookback period and threshold percentage, customize bullish/bearish divergence colors
OI Heatmap Colors: Customize bullish (green) and bearish (red) signal colors for the multi-timeframe heatmap visualization
The Aggregated Open Interest indicator provides traders with comprehensive insights into institutional positioning across major exchanges, helping identify potential trend continuations, reversals, and key market turning points driven by smart money movements. The addition of the OI Heatmap feature enables traders to quickly visualize open interest trends across multiple timeframes, providing valuable context for institutional positioning over different market cycles.
Twitter Model ICT [TradingFinder] MMXM ERL D + FVG + M15 MSS/SMT🔵 Introduction
The Twitter Model ICT is a trading approach based on ICT (Inner Circle Trader) models, focusing on price movement between external and internal liquidity in lower timeframes. This model integrates key concepts such as Market Structure Shift (MSS), Smart Money Technique (SMT) divergence, and CISD level break to identify precise entry points in the market.
The primary goal of this model is to determine key liquidity levels, such as the previous day’s high and low (PDH/PDL) and align them with the Fair Value Gap (FVG) in the 1-hour timeframe. The overall strategy involves framing trades around the 1H FVG and using the M15 Market Structure Shift (MSS) for entry confirmation.
The Twitter Model ICT is designed to utilize external liquidity levels, such as PDH/PDL, as key entry zones. The model identifies FVG in the 1-hour timeframe, which acts as a magnet for price movement. Additionally, traders confirm entries using M15 Market Structure Shift (MSS) and SMT divergence.
Bullish Twitter Model :
In a bullish setup, the price sweeps the previous day’s low (PDL), and after confirming reversal signals, buys are executed in internal liquidity zones. Conversely, in a bearish setup, the price sweeps the previous day’s high (PDH), and after confirming weakness signals, sells are executed.
Bearish Twitter Model :
In short setups, entries are only executed above the Midnight Open, while in long setups, entries are taken below the Midnight Open. Adhering to these principles allows traders to define precise entry and exit points and analyze price movement with greater accuracy based on liquidity and market structure.
🔵 How to Use
The Twitter Model ICT is a liquidity-based trading strategy that analyzes price movements relative to the previous day’s high and low (PDH/PDL) and Fair Value Gap (FVG). This model is applicable in both bullish and bearish directions and utilizes the 1-hour (1H) and 15-minute (M15) timeframes for entry confirmation.
The price first sweeps an external liquidity level (PDH or PDL) and then provides an entry opportunity based on Market Structure Shift (MSS) and SMT divergence. Additionally, the entry should be positioned relative to the Midnight Open, meaning long entries should occur below the Midnight Open and short entries above it.
🟣 Bullish Twitter Model
In a bullish setup, the price first sweeps the previous day’s low (PDL) and reaches an external liquidity level. Then, in the 1-hour timeframe (1H), a bullish Fair Value Gap (FVG) forms, which serves as the price target.
To confirm the entry, a Market Structure Shift (MSS) in the 15-minute timeframe (M15) should be observed, signaling a trend reversal to the upside. Additionally, SMT divergence with correlated assets can indicate weakness in selling pressure.
Under these conditions, a long position is taken below the Midnight Open, with a stop-loss placed at the lowest point of the recent bearish move. The price target for this trade is the FVG in the 1-hour timeframe.
🟣 Bearish Twitter Model
In a bearish setup, the price first sweeps the previous day’s high (PDH) and reaches an external liquidity level. Then, in the 1-hour timeframe (1H), a bearish Fair Value Gap (FVG) is identified, serving as the trade target.
To confirm entry, a Market Structure Shift (MSS) in the 15-minute timeframe (M15) should form, signaling a trend shift to the downside. If an SMT divergence is present, it can provide additional confirmation for the trade.
Once these conditions are met, a short position is taken above the Midnight Open, with a stop-loss placed at the highest level of the recent bullish move. The trade's price target is the FVG in the 1-hour timeframe.
🔵 Settings
Bar Back Check : Determining the return of candles to identify the CISD level.
CISD Level Validity : CISD level validity period based on the number of candles.
Daily Position : Determines whether only the first signal of the day is considered or if signals are evaluated throughout the entire day.
Session : Specifies in which trading sessions the indicator will be active.
Second Symbol : This setting allows you to select another asset for comparison with the primary asset. By default, "XAUUSD" (Gold) is set as the second symbol, but you can change it to any currency pair, stock, or cryptocurrency. For example, you can choose currency pairs like EUR/USD or GBP/USD to identify divergences between these two assets.
Divergence Fractal Periods : This parameter defines the number of past candles to consider when identifying divergences. The default value is 2, but you can change it to suit your preferences. This setting allows you to detect divergences more accurately by selecting a greater number of candles.
The indicator allows displaying sessions based on various time zones. The user can select one of the following options :
UTC (Coordinated Universal Time)
Local Time of the Session
User’s Local Time
Show Open Price : Displays the New York market opening price.
Show PDH / PDL : Displays the previous day’s high and low to identify potential entry points.
Show SMT Divergence : Displays lines and labels for bullish ("+SMT") and bearish ("-SMT") divergences.
🔵 Conclusion
The Twitter Model ICT is an effective approach for analyzing and executing trades in financial markets, utilizing a combination of liquidity principles, market structure, and SMT confirmations to identify optimal entry and exit points.
By analyzing the previous day’s high and low (PDH/PDL), Fair Value Gaps (FVG), and Market Structure Shift (MSS) in the 1H and M15 timeframes, traders can pinpoint liquidity-driven trade opportunities. Additionally, considering the Midnight Open level helps traders avoid random entries and ensures better trade placement.
By applying this model, traders can interpret market movements based on liquidity flow and structural changes, allowing them to fine-tune their trading decisions with higher precision. Ultimately, the Twitter Model ICT provides a structured and logical approach for traders who seek to trade based on liquidity behavior and trend shifts in the market.
CMF and Scaled EFI OverlayCMF and Scaled EFI Overlay Indicator
Overview
The CMF and Scaled EFI Overlay indicator combines the Chaikin Money Flow (CMF) and a scaled version of the Elder Force Index (EFI) into a single chart. This allows traders to analyze both indicators simultaneously, facilitating better insights into market momentum and volume dynamics , specifically focusing on buying/selling pressure and momentum , without compromising the integrity of either indicator.
Purpose
Chaikin Money Flow (CMF): Measures buying and selling pressure by evaluating price and volume over a specified period. It indicates accumulation (buying pressure) when values are positive and distribution (selling pressure) when values are negative.
Elder Force Index (EFI): Combines price changes and volume to assess the momentum behind market moves. Positive values indicate upward momentum (prices rising with strong volume), while negative values indicate downward momentum (prices falling with strong volume).
By scaling the EFI to match the amplitude of the CMF, this indicator enables a direct comparison between pressure and momentum , preserving their shapes and zero crossings. Traders can observe the relationship between price movements, volume, and momentum more effectively, aiding in decision-making.
Understanding Pressure vs. Momentum
Chaikin Money Flow (CMF):
- Indicates the level of demand (buying pressure) or supply (selling pressure) in the market based on volume and price movements.
- Accumulation: When institutional or large investors are buying significant amounts of an asset, leading to an increase in buying pressure.
- Distribution: When these investors are selling off their holdings, increasing selling pressure.
Elder Force Index (EFI):
- Measures the strength and speed of price movements, indicating how forceful the current trend is.
- Positive Momentum: Prices are rising quickly, indicating a strong uptrend.
- Negative Momentum: Prices are falling rapidly, indicating a strong downtrend.
Understanding the difference between pressure and momentum is crucial. For example, a market may exhibit strong buying pressure (positive CMF) but weak momentum (low EFI), suggesting accumulation without significant price movement yet.
Features
Overlay of CMF and Scaled EFI: Both indicators are plotted on the same chart for easy comparison of pressure and momentum dynamics.
Customizable Parameters: Adjust lengths for CMF and EFI calculations and fine-tune the scaling factor for optimal alignment.
Preserved Indicator Integrity: The scaling method preserves the shape and zero crossings of the EFI, ensuring accurate analysis.
How It Works
CMF Calculation:
- Calculates the Money Flow Multiplier (MFM) and Money Flow Volume (MFV) to assess buying and selling pressure.
- CMF is computed by summing the MFV over the specified length and dividing by the sum of volume over the same period:
CMF = (Sum of MFV over n periods) / (Sum of Volume over n periods)
EFI Calculation:
- Calculates the EFI using the Exponential Moving Average (EMA) of the price change multiplied by volume:
EFI = EMA(n, Change in Close * Volume)
Scaling the EFI:
- The EFI is scaled by multiplying it with a user-defined scaling factor to match the CMF's amplitude.
Plotting:
- Both the CMF and the scaled EFI are plotted on the same chart.
- A zero line is included for reference, aiding in identifying crossovers and divergences.
Indicator Settings
Inputs
CMF Length (`cmf_length`):
- Default: 20
- Description: The number of periods over which the CMF is calculated. A higher value smooths the indicator but may delay signals.
EFI Length (`efi_length`):
- Default: 13
- Description: The EMA length for the EFI calculation. Adjusting this value affects the sensitivity of the EFI to price changes.
EFI Scaling Factor (`efi_scaling_factor`):
- Default: 0.000001
- Description: A constant used to scale the EFI to match the CMF's amplitude. Fine-tuning this value ensures the indicators align visually.
How to Adjust the EFI Scaling Factor
Start with the Default Value:
- Begin with the default scaling factor of `0.000001`.
Visual Inspection:
- Observe the plotted indicators. If the EFI appears too large or small compared to the CMF, proceed to adjust the scaling factor.
Fine-Tune the Scaling Factor:
- Increase or decrease the scaling factor incrementally (e.g., `0.000005`, `0.00001`, `0.00005`) until the amplitudes of the CMF and EFI visually align.
- The optimal scaling factor may vary depending on the asset and timeframe.
Verify Alignment:
- Ensure that the scaled EFI preserves the shape and zero crossings of the original EFI.
- Overlay the original EFI (if desired) to confirm alignment.
How to Use the Indicator
Analyze Buying/Selling Pressure and Momentum:
- Positive CMF (>0): Indicates accumulation (buying pressure).
- Negative CMF (<0): Indicates distribution (selling pressure).
- Positive EFI: Indicates positive momentum (prices rising with strong volume).
- Negative EFI: Indicates negative momentum (prices falling with strong volume).
Look for Indicator Alignment:
- Both CMF and EFI Positive:
- Suggests strong bullish conditions with both buying pressure and upward momentum.
- Both CMF and EFI Negative:
- Indicates strong bearish conditions with selling pressure and downward momentum.
Identify Divergences:
- CMF Positive, EFI Negative:
- Buying pressure exists, but momentum is negative; potential for a bullish reversal if momentum shifts.
- CMF Negative, EFI Positive:
- Selling pressure exists despite rising prices; caution advised as it may indicate a potential bearish reversal.
Confirm Signals with Other Analysis:
- Use this indicator in conjunction with other technical analysis tools (e.g., trend lines, support/resistance levels) to confirm trading decisions.
Example Usage
Scenario 1: Bullish Alignment
- CMF Positive: Indicates accumulation (buying pressure).
- EFI Positive and Increasing: Shows strengthening upward momentum.
- Interpretation:
- Strong bullish signal suggesting that buyers are active, and the price is likely to continue rising.
- Action:
- Consider entering a long position or adding to existing ones.
Scenario 2: Bearish Divergence
- CMF Negative: Indicates distribution (selling pressure).
- EFI Positive but Decreasing: Momentum is positive but weakening.
- Interpretation:
- Potential bearish reversal; price may be rising but underlying selling pressure suggests caution.
- Action:
- Be cautious with long positions; consider tightening stop-losses or preparing for a possible trend reversal.
Tips
Adjust for Different Assets:
- The optimal scaling factor may differ across assets due to varying price and volume characteristics.
- Always adjust the scaling factor when analyzing a new asset.
Monitor Indicator Crossovers:
- Crossings above or below the zero line can signal potential trend changes.
Watch for Divergences:
- Divergences between the CMF and EFI can provide early warning signs of trend reversals.
Combine with Other Indicators:
- Enhance your analysis by combining this overlay with other indicators like moving averages, RSI, or Ichimoku Cloud.
Limitations
Scaling Factor Sensitivity:
- An incorrect scaling factor may misalign the indicators, leading to inaccurate interpretations.
- Regular adjustments may be necessary when switching between different assets or timeframes.
Not a Standalone Indicator:
- Should be used as part of a comprehensive trading strategy.
- Always consider other market factors and indicators before making trading decisions.
Disclaimer
No Guarantee of Performance:
- Past performance is not indicative of future results.
- Trading involves risk, and losses can exceed deposits.
Use at Your Own Risk:
- This indicator is provided for educational purposes.
- The author is not responsible for any financial losses incurred while using this indicator.
Code Summary
//@version=5
indicator(title="CMF and Scaled EFI Overlay", shorttitle="CMF & Scaled EFI", overlay=false)
cmf_length = input.int(20, minval=1, title="CMF Length")
efi_length = input.int(13, minval=1, title="EFI Length")
efi_scaling_factor = input.float(0.000001, title="EFI Scaling Factor", minval=0.0, step=0.000001)
// --- CMF Calculation ---
ad = high != low ? ((2 * close - low - high) / (high - low)) * volume : 0
mf = math.sum(ad, cmf_length) / math.sum(volume, cmf_length)
// --- EFI Calculation ---
efi_raw = ta.ema(ta.change(close) * volume, efi_length)
// --- Scale EFI ---
efi_scaled = efi_raw * efi_scaling_factor
// --- Plotting ---
plot(mf, color=color.green, title="CMF", linewidth=2)
plot(efi_scaled, color=color.red, title="EFI (Scaled)", linewidth=2)
hline(0, color=color.gray, title="Zero Line", linestyle=hline.style_dashed)
- Lines 4-6: Define input parameters for CMF length, EFI length, and EFI scaling factor.
- Lines 9-11: Calculate the CMF.
- Lines 14-16: Calculate the EFI.
- Line 19: Scale the EFI by the scaling factor.
- Lines 22-24: Plot the CMF, scaled EFI, and zero line.
Feedback and Support
Suggestions: If you have ideas for improvements or additional features, please share your feedback.
Support: For assistance or questions regarding this indicator, feel free to contact the author through TradingView.
---
By combining the CMF and scaled EFI into a single overlay, this indicator provides a powerful tool for traders to analyze market dynamics more comprehensively. Adjust the parameters to suit your trading style, and always practice sound risk management.
Waldo RSI Overlay :oWaldo RSI Overlay :o Indicator Guide
Welcome to the guide for the Waldo RSI Overlay :o indicator on TradingView. This tool enhances your trading analysis through RSI-based overlays for trend analysis, divergence detection, and breakout/breakdown signals when used with its companion indicator, Waldo RSI :o.
Key Features:
RSI Overlay:
• RSI Source: Choose from:
o ON RSI: Uses the RSI values directly to detect pivots, focusing on RSI highs and lows for trend analysis.
o ON HIGH, ON CLOSE, ON LOW, ON OPEN:
These options base pivot detection on price action at those specific points, offering an alternative market structure view.
• RSI Settings:
o Source: Default is (H+L)/2, but you can select any price for RSI calculation.
o Length: Default RSI length is 7, which you can adjust for sensitivity.
Trend Lines:
• Show Trend Lines: Toggle to display trend lines based on pivot points.
• Zigzag Length: Sets the sensitivity of pivot point detection.
• Confirm Length: Ensures the validity of pivot points (default is 3).
• Colors: Customize colors for Higher Highs (HH), Lower Highs (LH), Higher Lows (HL), and Lower Lows (LL).
• Transparency and Line Width: Control how trend lines and fills appear.
• Label Size: Adjust the size of labels identifying pivot points.
Divergences:
• Classic Divergences:
o Show Classic Div: Enable to highlight regular divergences where price and RSI move in opposite directions.
o Colors: Define colors for bullish and bearish divergence lines and labels.
o Transparency and Line Width: Adjust the visual impact of divergence signals.
• Hidden Divergences:
o Similar settings as classic, but these highlight divergences indicating trend continuation.
Breakout/Breakdown:
• Show Breakout/Breakdown: When activated, this feature signals when the price breaks through previous highs or lows. To activate these breakouts, you need the companion indicator Waldo RSI :o, select the SRC in the External section, and select the crossovers for each one.
This combination provides RSI confirmation for breakout/breakdown events.
Overbought/Oversold Zones:
• Show Overbought and Oversold Zones: Bars are colored when RSI exceeds 70 (purple) or falls below 30 (blue), indicating potential market extremes.
Moving Averages (Optional):
• Show Moving Averages: Option to overlay two moving averages for trend confirmation.
• Source, Type, Length: Customize each MA's configuration.
Ghost Lines (Optional):
• Ghost Lines: When enabled, trend lines extend for only a specified period (Ghost Length) instead of indefinitely.
How to Use the Indicator:
1. Setup:
o Configure RSI settings by choosing the RSI Source and adjusting the RSI Length to suit your trading style.
o Set the Zigzag Length and Confirm Length for trend line sensitivity based on market volatility.
2. Trend Analysis:
o Look at the colored horizontal lines and fills for HH, LH, HL, LL to discern market structure and potential reversal points.
3. Divergence Detection:
o Identify divergences where price and RSI diverge. Regular divergences might signal trend exhaustion, while hidden ones could indicate trend persistence.
4. Breakout/Breakdown Signals:
o Ensure you have both the Waldo RSI Overlay :o and Waldo RSI :o indicators applied. Green triangles below bars signal breakouts; red ones above indicate breakdowns, based on price movement with RSI confirmation from the companion indicator.
5. Overbought/Oversold:
o Use these colored zones to spot potential momentum shifts or reversal areas.
6. Moving Averages on RSI:
o If used, these can help confirm trends or identify crossover signals for additional trade confirmation.
7. Ghost Lines:
o For a less cluttered chart, enable this to limit how far trend lines extend.
Tips for Usage:
• Always combine this indicator with other analytical tools for better confirmation. No single indicator should guide all decisions.
• Adjust settings according to the asset's behavior and your trading timeframe.
• Regularly review your settings as market dynamics change.
Remember, trading involves risk, and past performance doesn't predict future outcomes. Use this indicator within a comprehensive trading strategy.
Uptrick: Fisher Eclipse1. Name and Purpose
Uptrick: Fisher Eclipse is a Pine version 6 extension of the basic Fisher Transform indicator that focuses on highlighting potential turning points in price data. Its purpose is to allow traders to spot shifts in momentum, detect divergence, and adapt signals to different market environments. By combining a core Fisher Transform with additional signal processing, divergence detection, and customizable aggressiveness settings, this script aims to help users see when a price move might be losing momentum or gaining strength.
2. Overview
This script uses a Fisher Transform calculation on the average of each bar’s high and low (hl2). The Fisher Transform is designed to amplify price extremes by mapping data into a different scale, making potential reversals more visible than they might be with standard oscillators. Uptrick: Fisher Eclipse takes this concept further by integrating a signal line, divergence detection, bar coloring for momentum intensity, and optional thresholds to reduce unwanted noise.
3. Why Use the Fisher Transform
The Fisher Transform is known for converting relatively smoothed price data into a more pronounced scale. This transformation highlights where markets may be overextended. In many cases, standard oscillators move gently, and traders can miss subtle hints that a reversal might be approaching. The Fisher Transform’s mathematical approach tightens the range of values and sharpens the highs and lows. This behavior can allow traders to see clearer peaks and troughs in momentum. Because it is often quite responsive, it can help anticipate areas where price might change direction, especially when compared to simpler moving averages or traditional oscillators. The result is a more evident signal of possible overbought or oversold conditions.
4. How This Extension Improves on the Basic Fisher Transform
Uptrick: Fisher Eclipse adds multiple features to the classic Fisher framework in order to address different trading styles and market behaviors:
a) Divergence Detection
The script can detect bullish or bearish divergences between price and the oscillator over a chosen lookback period, helping traders anticipate shifts in market direction.
b) Bar Coloring
When momentum exceeds a certain threshold (default 3), bars can be colored to highlight surges of buying or selling pressure. This quick visual reference can assist in spotting periods of heightened activity. After a bar color like this, usually, there is a quick correction as seen in the image below.
c) Signal Aggressiveness Levels
Users can choose between conservative, moderate, or aggressive signal thresholds. This allows them to tune how quickly the indicator flags potential entries or exits. Aggressive settings might suit scalpers who need rapid signals, while conservative settings may benefit swing traders preferring fewer, more robust indications.
d) Minimum Movement Filter
A configurable filter can be set to ensure that the Fisher line and its signal have a sufficient gap before triggering a buy or sell signal. This step is useful for traders seeking to minimize signals during choppy or sideways markets. This can be used to eliminate noise as well.
By combining all these elements into one package, the indicator attempts to offer a comprehensive toolkit for those who appreciate the Fisher Transform’s clarity but also desire more versatility.
5. Core Components
a) Fisher Transform
The script calculates a Fisher value using normalized price over a configurable length, highlighting potential peaks and troughs.
b) Signal Line
The Fisher line is smoothed using a short Simple Moving Average. Crossovers and crossunders are one of the key ways this indicator attempts to confirm momentum shifts.
c) Divergence Logic
The script looks back over a set number of bars to compare current highs and lows of both price and the Fisher oscillator. When price and the oscillator move in opposing directions, a divergence may occur, suggesting a possible upcoming reversal or weakening trend.
d) Thresholds for Overbought and Oversold
Horizontal lines are drawn at user-chosen overbought and oversold levels. These lines help traders see when momentum readings reach particular extremes, which can be especially relevant when combined with crossovers in that region.
e) Intensity Filter and Bar Coloring
If the magnitude of the change in the Fisher Transform meets or exceeds a specified threshold, bars are recolored. This provides a visual cue for significant momentum changes.
6. User Inputs
a) length
Defines how many bars the script looks back to compute the highest high and lowest low for the Fisher Transform. A smaller length reacts more quickly but can be noisier, while a larger length smooths out the indicator at the cost of responsiveness.
b) signal aggressiveness
Adjusts the buy and sell thresholds for conservative, moderate, and aggressive trading styles. This can be key in matching the indicator to personal risk preferences or varying market conditions. Conservative will give you less signals and aggressive will give you more signals.
c) minimum movement filter
Specifies how far apart the Fisher line and its signal line must be before generating a valid crossover signal.
d) divergence lookback
Controls how many bars are examined when determining if price and the oscillator are diverging. A larger setting might generate fewer signals, while a smaller one can provide more frequent alerts.
e) intensity threshold
Determines how large a change in the Fisher value must be for the indicator to recolor bars. Strong momentum surges become more noticeable.
f) overbought level and oversold level
Lets users define where they consider market conditions to be stretched on the upside or downside.
7. Calculation Process
a) Price Input
The script uses the midpoint of each bar’s high and low, sometimes referred to as hl2.
hl2 = (high + low) / 2
b) Range Normalization
Determine the maximum (maxHigh) and minimum (minLow) values over a user-defined lookback period (length).
Scale the hl2 value so it roughly fits between -1 and +1:
value = 2 * ((hl2 - minLow) / (maxHigh - minLow) - 0.5)
This step highlights the bar’s current position relative to its recent highs and lows.
c) Fisher Calculation
Convert the normalized value into the Fisher Transform:
fisher = 0.5 * ln( (1 + value) / (1 - value) ) + 0.5 * fisher_previous
fisher_previous is simply the Fisher value from the previous bar. Averaging half of the new transform with half of the old value smooths the result slightly and can prevent erratic jumps.
ln is the natural logarithm function, which compresses or expands values so that market turns often become more obvious.
d) Signal Smoothing
Once the Fisher value is computed, a short Simple Moving Average (SMA) is applied to produce a signal line. In code form, this often looks like:
signal = sma(fisher, 3)
Crossovers of the fisher line versus the signal line can be used to hint at changes in momentum:
• A crossover occurs when fisher moves from below to above the signal.
• A crossunder occurs when fisher moves from above to below the signal.
e) Threshold Checking
Users typically define oversold and overbought levels (often -1 and +1).
Depending on aggressiveness settings (conservative, moderate, aggressive), these thresholds are slightly shifted to filter out or include more signals.
For example, an oversold threshold of -1 might be used in a moderate setting, whereas -1.5 could be used in a conservative setting to require a deeper dip before triggering.
f) Divergence Checks
The script looks back a specified number of bars (divergenceLookback). For both price and the fisher line, it identifies:
• priceHigh = the highest hl2 within the lookback
• priceLow = the lowest hl2 within the lookback
• fisherHigh = the highest fisher value within the lookback
• fisherLow = the lowest fisher value within the lookback
If price forms a lower low while fisher forms a higher low, it can signal a bullish divergence. Conversely, if price forms a higher high while fisher forms a lower high, a bearish divergence might be indicated.
g) Bar Coloring
The script monitors the absolute change in Fisher values from one bar to the next (sometimes called fisherChange):
fisherChange = abs(fisher - fisher )
If fisherChange exceeds a user-defined intensityThreshold, bars are recolored to highlight a surge of momentum. Aqua might indicate a strong bullish surge, while purple might indicate a strong bearish surge.
This color-coding provides a quick visual cue for traders looking to spot large momentum swings without constantly monitoring indicator values.
8. Signal Generation and Filtering
Buy and sell signals occur when the Fisher line crosses the signal line in regions defined as oversold or overbought. The optional minimum movement filter prevents triggering if Fisher and its signal line are too close, reducing the chance of small, inconsequential price fluctuations creating frequent signals. Divergences that appear in oversold or overbought regions can serve as additional evidence that momentum might soon shift.
9. Visualization on the Chart
Uptrick: Fisher Eclipse plots two lines: the Fisher line in one color and the signal line in a contrasting shade. The chart displays horizontal dashed lines where the overbought and oversold levels lie. When the Fisher Transform experiences a sharp jump or drop above the intensity threshold, the corresponding price bars may change color, signaling that momentum has undergone a noticeable shift. If the indicator detects bullish or bearish divergence, dotted lines are drawn on the oscillator portion to connect the relevant points.
10. Market Adaptability
Because of the different aggressiveness levels and the optional minimum movement filter, Uptrick: Fisher Eclipse can be tailored to multiple trading styles. For instance, a short-term scalper might select a smaller length and more aggressive thresholds, while a swing trader might choose a longer length for smoother readings, along with conservative thresholds to ensure fewer but potentially stronger signals. During strongly trending markets, users might rely more on divergences or large intensity changes, whereas in a range-bound market, oversold or overbought conditions may be more frequent.
11. Risk Management Considerations
Indicators alone do not ensure favorable outcomes, and relying solely on any one signal can be risky. Using a stop-loss or other protections is often suggested, especially in fast-moving or unpredictable markets. Divergence can appear before a market reversal actually starts. Similarly, a Fisher Transform can remain in an overbought or oversold region for extended periods, especially if the trend is strong. Cautious interpretation and confirmation with additional methods or chart analysis can help refine entry and exit decisions.
12. Combining with Other Tools
Traders can potentially strengthen signals from Uptrick: Fisher Eclipse by checking them against other methods. If a moving average cross or a price pattern aligns with a Fisher crossover, the combined evidence might provide more certainty. Volume analysis may confirm whether a shift in market direction has participation from a broad set of traders. Support and resistance zones could reinforce overbought or oversold signals, particularly if price reaches a historical boundary at the same time the oscillator indicates a possible reversal.
13. Parameter Customization and Examples
Some short-term traders run a 15-minute chart, with a shorter length setting, aggressively tight oversold and overbought thresholds, and a smaller divergence lookback. This approach produces more frequent signals, which may appeal to those who enjoy fast-paced trading. More conservative traders might apply the indicator to a daily chart, using a larger length, moderate threshold levels, and a bigger divergence lookback to focus on broader market swings. Results can differ, so it may be helpful to conduct thorough historical testing to see which combination of parameters aligns best with specific goals.
14. Realistic Expectations
While the Fisher Transform can reveal potential turning points, no mathematical tool can predict future price behavior with full certainty. Markets can behave erratically, and a period of strong trending may see the oscillator pinned in an extreme zone without a significant reversal. Divergence signals sometimes appear well before an actual trend change occurs. Recognizing these limitations helps traders manage risk and avoids overreliance on any one aspect of the script’s output.
15. Theoretical Background
The Fisher Transform uses a logarithmic formula to map a normalized input, typically ranging between -1 and +1, into a scale that can fluctuate around values like -3 to +3. Because the transformation exaggerates higher and lower readings, it becomes easier to spot when the market might have stretched too far, too fast. Uptrick: Fisher Eclipse builds on that foundation by adding a series of practical tools that help confirm or refine those signals.
16. Originality and Uniqueness
Uptrick: Fisher Eclipse is not simply a duplicate of the basic Fisher Transform. It enhances the original design in several ways, including built-in divergence detection, bar-color triggers for momentum surges, thresholds for overbought and oversold levels, and customizable signal aggressiveness. By unifying these concepts, the script seeks to reduce noise and highlight meaningful shifts in market direction. It also places greater emphasis on helping traders adapt the indicator to their specific style—whether that involves frequent intraday signals or fewer, more robust alerts over longer timeframes.
17. Summary
Uptrick: Fisher Eclipse is an expanded take on the original Fisher Transform oscillator, including divergence detection, bar coloring based on momentum strength, and flexible signal thresholds. By adjusting parameters like length, aggressiveness, and intensity thresholds, traders can configure the script for day-trading, swing trading, or position trading. The indicator endeavors to highlight where price might be shifting direction, but it should still be combined with robust risk management and other analytical methods. Doing so can lead to a more comprehensive view of market conditions.
18. Disclaimer
No indicator or script can guarantee profitable outcomes in trading. Past performance does not necessarily suggest future results. Uptrick: Fisher Eclipse is provided for educational and informational purposes. Users should apply their own judgment and may want to confirm signals with other tools and methods. Deciding to open or close a position remains a personal choice based on each individual’s circumstances and risk tolerance.
Super CCI By Baljit AujlaThe indicator you've shared is a custom CCI (Commodity Channel Index) with multiple types of Moving Averages (MA) and Divergence Detection. It is designed to help traders identify trends and reversals by combining the CCI with various MAs and detecting different types of divergences between the price and the CCI.
Key Components of the Indicator:
CCI (Commodity Channel Index):
The CCI is an oscillator that measures the deviation of the price from its average price over a specific period. It helps identify overbought and oversold conditions and the strength of a trend.
The CCI is calculated by subtracting a moving average (SMA) from the price and dividing by the average deviation from the SMA. The CCI values fluctuate above and below a zero centerline.
Multiple Moving Averages (MA):
The indicator allows you to choose from a variety of moving averages to smooth the CCI line and identify trend direction or support/resistance levels. The available types of MAs include:
SMA (Simple Moving Average)
EMA (Exponential Moving Average)
WMA (Weighted Moving Average)
HMA (Hull Moving Average)
RMA (Running Moving Average)
SMMA (Smoothed Moving Average)
TEMA (Triple Exponential Moving Average)
DEMA (Double Exponential Moving Average)
VWMA (Volume-Weighted Moving Average)
ZLEMA (Zero-Lag Exponential Moving Average)
You can select the type of MA to use with a specified length to help identify the trend direction or smooth out the CCI.
Divergence Detection:
The indicator includes a divergence detection mechanism to identify potential trend reversals. Divergences occur when the price and an oscillator like the CCI move in opposite directions, signaling a potential change in price momentum.
Four types of divergences are detected:
Bullish Divergence: Occurs when the price makes a lower low, but the CCI makes a higher low. This indicates a potential reversal to the upside.
Bearish Divergence: Occurs when the price makes a higher high, but the CCI makes a lower high. This indicates a potential reversal to the downside.
Hidden Bullish Divergence: Occurs when the price makes a higher low, but the CCI makes a lower low. This suggests a continuation of the uptrend.
Hidden Bearish Divergence: Occurs when the price makes a lower high, but the CCI makes a higher high. This suggests a continuation of the downtrend.
Each type of divergence is marked on the chart with arrows and labels to alert traders to potential trading opportunities. The labels include the divergence type (e.g., "Bull Div" for Bullish Divergence) and have customizable text colors.
Visual Representation:
The CCI and its associated moving average are plotted on the indicator panel below the price chart. The CCI is plotted as a line, and its color changes depending on whether it is above or below the moving average:
Green when the CCI is above the MA (indicating bullish momentum).
Red when the CCI is below the MA (indicating bearish momentum).
Horizontal lines are drawn at specific levels to help identify key CCI thresholds:
200 and -200 levels indicate extreme overbought or oversold conditions.
75 and -75 levels represent less extreme levels of overbought or oversold conditions.
The 0 level acts as a neutral or baseline level.
A background color fill between the 75 and -75 levels helps highlight the neutral zone.
Customization Options:
CCI Length: You can customize the length of the CCI, which determines the period over which the CCI is calculated.
MA Length: The length of the moving average applied to the CCI can also be adjusted.
MA Type: Choose from a variety of moving averages (SMA, EMA, WMA, etc.) to smooth the CCI.
Divergence Detection: The indicator automatically detects the four types of divergences (bullish, bearish, hidden bullish, hidden bearish) and visually marks them on the chart.
How to Use the Indicator:
Trend Identification: When the CCI is above the selected moving average, it suggests bullish momentum. When the CCI is below the moving average, it suggests bearish momentum.
Overbought/Oversold Conditions: The CCI values above 100 or below -100 indicate overbought and oversold conditions, respectively.
Divergence Analysis: The detection of bullish or bearish divergences can signal potential trend reversals. Hidden divergences may suggest trend continuation.
Trading Signals: You can use the divergence markers (arrows and labels) as potential buy or sell signals, depending on whether the divergence is bullish or bearish.
Practical Application:
This indicator is useful for traders who want to:
Combine the CCI with different moving averages for trend-following strategies.
Identify overbought and oversold conditions using the CCI.
Use divergence detection to anticipate potential trend reversals or continuations.
Have a highly customizable tool for various trading strategies, including trend trading, reversal trading, and divergence-based trading.
Overall, this is a comprehensive tool that combines multiple technical analysis techniques (CCI, moving averages, and divergence) in a single indicator, providing traders with a robust way to analyze price action and spot potential trading opportunities.
Delta Volume Columns Pro [LucF]█ OVERVIEW
This indicator displays volume delta information calculated with intrabar inspection on historical bars, and feed updates when running in realtime. It is designed to run in a pane and can display either stacked buy/sell volume columns or a signal line which can be calculated and displayed in many different ways.
Five different models are offered to reveal different characteristics of the calculated volume delta information. Many options are offered to visualize the calculations, giving you much leeway in morphing the indicator's visuals to suit your needs. If you value delta volume information, I hope you will find the time required to master Delta Volume Columns Pro well worth the investment. I am confident that if you combine a proper understanding of the indicator's information with an intimate knowledge of the volume idiosyncrasies on the markets you trade, you can extract useful market intelligence using this tool.
█ WARNINGS
1. The indicator only works on markets where volume information is available,
Please validate that your symbol's feed carries volume information before asking me why the indicator doesn't plot values.
2. When you refresh your chart or re-execute the script on the chart, the indicator will repaint because elapsed realtime bars will then recalculate as historical bars.
3. Because the indicator uses different modes of calculation on historical and realtime bars, it's critical that you understand the differences between them. Details are provided further down.
4. Calculations using intrabar inspection on historical bars can only be done from some chart timeframes. See further down for a list of supported timeframes.
If the chart's timeframe is not supported, no historical volume delta will display.
█ CONCEPTS
Chart bars
Three different types of bars are used in charts:
1. Historical bars are bars that have already closed when the script executes on them.
2. The realtime bar is the current, incomplete bar where a script is running on an open market. There is only one active realtime bar on your chart at any given time.
The realtime bar is where alerts trigger.
3. Elapsed realtime bars are bars that were calculated when they were realtime bars but have since closed.
When a script re-executes on a chart because the browser tab is refreshed or some of its inputs are changed, elapsed realtime bars are recalculated as historical bars.
Why does this indicator use two modes of calculation?
Historical bars on TradingView charts contain OHLCV data only, which is insufficient to calculate volume delta on them with any level of precision. To mine more detailed information from those bars we look at intrabars , i.e., bars from a smaller timeframe (we call it the intrabar timeframe ) that are contained in one chart bar. If your chart Is running at 1D on a 24x7 market for example, most 1D chart bars will contain 24 underlying 1H bars in their dilation. On historical bars, this indicator looks at those intrabars to amass volume delta information. If the intrabar is up, its volume goes in the Buy bin, and inversely for the Sell bin. When price does not move on an intrabar, the polarity of the last known movement is used to determine in which bin its volume goes.
In realtime, we have access to price and volume change for each update of the chart. Because a 1D chart bar can be updated tens of thousands of times during the day, volume delta calculations on those updates is much more precise. This precision, however, comes at a price:
— The script must be running on the chart for it to keep calculating in realtime.
— If you refresh your chart you will lose all accumulated realtime calculations on elapsed realtime bars, and the realtime bar.
Elapsed realtime bars will recalculate as historical bars, i.e., using intrabar inspection, and the realtime bar's calculations will reset.
When the script recalculates elapsed realtime bars as historical bars, the values on those bars will change, which means the script repaints in those conditions.
— When the indicator first calculates on a chart containing an incomplete realtime bar, it will count ALL the existing volume on the bar as Buy or Sell volume,
depending on the polarity of the bar at that point. This will skew calculations for that first bar. Scripts have no access to the history of a realtime bar's previous updates,
and intrabar inspection cannot be used on realtime bars, so this is the only to go about this.
— Even if alerts only trigger upon confirmation of their conditions after the realtime bar closes, they are repainting alerts
because they would perhaps not have calculated the same way using intrabar inspection.
— On markets like stocks that often have different EOD and intraday feeds and volume information,
the volume's scale may not be the same for the realtime bar if your chart is at 1D, for example,
and the indicator is using an intraday timeframe to calculate on historical bars.
— Any chart timeframe can be used in realtime mode, but plots that include moving averages in their calculations may require many elapsed realtime bars before they can calculate.
You might prefer drastically reducing the periods of the moving averages, or using the volume columns mode, which displays instant values, instead of the line.
Volume Delta Balances
This indicator uses a variety of methods to evaluate five volume delta balances and derive other values from those balances. The five balances are:
1 — On Bar Balance : This is the only balance using instant values; it is simply the subtraction of the Sell volume from the Buy volume on the bar.
2 — Average Balance : Calculates a distinct EMA for both the Buy and Sell volumes, and subtracts the Sell EMA from the Buy EMA.
3 — Momentum Balance : Starts by calculating, separately for both Buy and Sell volumes, the difference between the same EMAs used in "Average Balance" and
an SMA of double the period used for the "Average Balance" EMAs. The difference for the Sell side is subtracted from the difference for the Buy side,
and an RSI of that value is calculated and brought over the −50/+50 scale.
4 — Relative Balance : The reference values used in the calculation are the Buy and Sell EMAs used in the "Average Balance".
From those, we calculate two intermediate values using how much the instant Buy and Sell volumes on the bar exceed their respective EMA — but with a twist.
If the bar's Buy volume does not exceed the EMA of Buy volume, a zero value is used. The same goes for the Sell volume with the EMA of Sell volume.
Once we have our two intermediate values for the Buy and Sell volumes exceeding their respective MA, we subtract them. The final "Relative Balance" value is an ALMA of that subtraction.
The rationale behind using zero values when the bar's Buy/Sell volume does not exceed its EMA is to only take into account the more significant volume.
If both instant volume values exceed their MA, then the difference between the two is the signal's value.
The signal is called "relative" because the intermediate values are the difference between the instant Buy/Sell volumes and their respective MA.
This balance flatlines when the bar's Buy/Sell volumes do not exceed their EMAs, which makes it useful to spot areas where trader interest dwindles, such as consolidations.
The smaller the period of the final value's ALMA, the more easily you will see the balance flatline. These flat zones should be considered no-trade zones.
5 — Percent Balance : This balance is the ALMA of the ratio of the "On Bar Balance" value, i.e., the volume delta balance on the bar (which can be positive or negative),
over the total volume for that bar.
From the balances and marker conditions, two more values are calculated:
1 — Marker Bias : It sums the up/down (+1/‒1) occurrences of the markers 1 to 4 over a period you define, so it ranges from −4 to +4, times the period.
Its calculation will depend on the modes used to calculate markers 3 and 4.
2 — Combined Balances : This is the sum of the bull/bear (+1/−1) states of each of the five balances, so it ranges from −5 to +5.
█ FEATURES
The indicator has two main modes of operation: Columns and Line .
Columns
• In Columns mode you can display stacked Buy/Sell volume columns.
• The buy section always appears above the centerline, the sell section below.
• The top and bottom sections can be colored independently using eight different methods.
• The EMAs of the Buy/Sell values can be displayed (these are the same EMAs used to calculate the "Average Balance").
Line
• Displays one of seven signals: the five balances or one of two complementary values, i.e., the "Marker Bias" or the "Combined Balances".
• You can color the line and its fill using independent calculation modes to pack more information in the display.
You can thus appraise the state of 3 different values using the line itself, its color and the color of its fill.
• A "Divergence Levels" feature will use the line to automatically draw expanding levels on divergence events.
Default settings
Using the indicator's default settings, this is the information displayed:
• The line is calculated on the "Average Balance".
• The line's color is determined by the bull/bear state of the "Percent Balance".
• The line's fill gradient is determined by the advances/declines of the "Momentum Balance".
• The orange divergence dots are calculated using discrepancies between the polarity of the "On Bar Balance" and the chart's bar.
• The divergence levels are determined using the line's level when a divergence occurs.
• The background's fill gradient is calculated on advances/declines of the "Marker Bias".
• The chart bars are colored using advances/declines of the "Relative Balance". Divergences are shown in orange.
• The intrabar timeframe is automatically determined from the chart's timeframe so that a minimum of 50 intrabars are used to calculate volume delta on historical bars.
Alerts
The configuration of the marker conditions explained further is what determines the conditions that will trigger alerts created from this script. Note that simply selecting the display of markers does not create alerts. To create an alert on this script, you must use ALT-A from the chart. You can create multiple alerts triggering on different conditions from this same script; simply configure the markers so they define the trigger conditions for each alert before creating the alert. The configuration of the script's inputs is saved with the alert, so from then on you can change them without affecting the alert. Alert messages will mention the marker(s) that triggered the specific alert event. Keep in mind, when creating alerts on small chart timeframes, that discrepancies between alert triggers and markers displayed on your chart are to be expected. This is because the alert and your chart are running two distinct instances of the indicator on different servers and different feeds. Also keep in mind that while alerts only trigger on confirmed conditions, they are calculated using realtime calculation mode, which entails that if you refresh your chart and elapsed realtime bars recalculate as historical bars using intrabar inspection, markers will not appear in the same places they appeared in realtime. So it's important to understand that even though the alert conditions are confirmed when they trigger, these alerts will repaint.
Let's go through the sections of the script's inputs.
Columns
The size of the Buy/Sell columns always represents their respective importance on the bar, but the coloring mode for tops and bottoms is independent. The default setup uses a standard coloring mode where the Buy/Sell columns are always in the bull/bear color with a higher intensity for the winning side. Seven other coloring modes allow you to pack more information in the columns. When choosing to color the top columns using a bull/bear gradient on "Average Balance", for example, you will have bull/bear colored tops. In order for the color of the bottom columns to continue to show the instant bar balance, you can then choose the "On Bar Balance — Dual Solid Colors" coloring mode to make those bars the color of the winning side for that bar. You can display the averages of the Buy and Sell columns. If you do, its coloring is controlled through the "Line" and "Line fill" sections below.
Line and Line fill
You can select the calculation mode and the thickness of the line, and independent calculations to determine the line's color and fill.
Zero Line
The zero line can display dots when all five balances are bull/bear.
Divergences
You first select the detection mode. Divergences occur whenever the up/down direction of the signal does not match the up/down polarity of the bar. Divergences are used in three components of the indicator's visuals: the orange dot, colored chart bars, and to calculate the divergence levels on the line. The divergence levels are dynamic levels that automatically build from the line's values on divergence events. On consecutive divergences, the levels will expand, creating a channel. This implementation of the divergence levels corresponds to my view that divergences indicate anomalies, hesitations, points of uncertainty if you will. It precludes any attempt to identify a directional bias to divergences. Accordingly, the levels merely take note of divergence events and mark those points in time with levels. Traders then have a reference point from which they can evaluate further movement. The bull/bear/neutral colors used to plot the levels are also congruent with this view in that they are determined by the line's position relative to the levels, which is how I think divergences can be put to the most effective use. One of the coloring modes for the line's fill uses advances/declines in the line after divergence events.
Background
The background can show a bull/bear gradient on six different calculations. As with other gradients, you can adjust its brightness to make its importance proportional to how you use it in your analysis.
Chart bars
Chart bars can be colored using seven different methods. You have the option of emptying the body of bars where volume does not increase, as does my TLD indicator, and you can choose whether you want to show divergences.
Intrabar Timeframe
This is the intrabar timeframe that will be used to calculate volume delta using intrabar inspection on historical bars. You can choose between four modes. The three "Auto-steps" modes calculate, from the chart's timeframe, the intrabar timeframe where the said number of intrabars will make up the dilation of chart bars. Adjustments are made for non-24x7 markets. "Fixed" mode allows you to select the intrabar timeframe you want. Checking the "Show TF" box will display in the lower-right corner the intrabar timeframe used at any given moment. The proper selection of the intrabar timeframe is important. It must achieve maximal granularity to produce precise results while not unduly slowing down calculations, or worse, causing runtime errors. Note that historical depth will vary with the intrabar timeframe. The smaller the timeframe, the shallower historical plots you will be.
Markers
Markers appear when the required condition has been confirmed on a closed bar. The configuration of the markers when you create an alert is what determines when the alert will trigger. Five markers are available:
• Balances Agreement : All five balances are either bullish or bearish.
• Double Bumps : A double bump is two consecutive up/down bars with +/‒ volume delta, and rising Buy/Sell volume above its average.
• Divergence confirmations : A divergence is confirmed up/down when the chosen balance is up/down on the previous bar when that bar was down/up, and this bar is up/down.
• Balance Shifts : These are bull/bear transitions of the selected signal.
• Marker Bias Shifts : Marker bias shifts occur when it crosses into bull/bear territory.
Periods
Allows control over the periods of the different moving averages used to calculate the balances.
Volume Discrepancies
Stock exchanges do not report the same volume for intraday and daily (or higher) resolutions. Other variations in how volume information is reported can also occur in other markets, namely Forex, where volume irregularities can even occur between different intraday timeframes. This will cause discrepancies between the total volume on the bar at the chart's timeframe, and the total volume calculated by adding the volume of the intrabars in that bar's dilation. This does not necessarily invalidate the volume delta information calculated from intrabars, but it tells us that we are using partial volume data. A mechanism to detect chart vs intrabar timeframe volume discrepancies is provided. It allows you to define a threshold percentage above which the background will indicate a difference has been detected.
Other Settings
You can control here the display of the gray dot reminder on realtime bars, and the display of error messages if you are using a chart timeframe that is not greater than the fixed intrabar timeframe, when you use that mode. Disabling the message can be useful if you only use realtime mode at chart timeframes that do not support intrabar inspection.
█ RAMBLINGS
On Volume Delta
Volume is arguably the best complement to interpret price action, and I consider volume delta to be the most effective way of processing volume information. In periods of low-volatility price consolidations, volume will typically also be lower than normal, but slight imbalances in the trend of the buy/sell volume balance can sometimes help put early odds on the direction of the break from consolidation. Additionally, the progression of the volume imbalance can help determine the proximity of the breakout. I also find volume delta and the number of divergences very useful to evaluate the strength of trends. In trends, I am looking for "slow and steady", i.e., relatively low volatility and pauses where price action doesn't look like world affairs are being reassessed. In my personal mythology, this type of trend is often more resilient than high-volatility breakouts, especially when volume balance confirms the general agreement of traders signaled by the low-volatility usually accompanying this type of trend. The volume action on pauses will often help me decide between aggressively taking profits, tightening a stop or going for a longer-term movement. As for reversals, they generally occur in high-volatility areas where entering trades is more expensive and riskier. While the identification of counter-trend reversals fascinates many traders to no end, they represent poor opportunities in my view. Volume imbalances often precede reversals, but I prefer to use volume delta information to identify the areas following reversals where I can confirm them and make relatively low-cost entries with better odds.
On "Buy/Sell" Volume
Buying or selling volume are misnomers, as every unit of volume transacted is both bought and sold by two different traders. While this does not keep me from using the terms, there is no such thing as “buy only” or “sell only” volume. Trader lingo is riddled with peculiarities.
Divergences
The divergence detection method used here relies on a difference between the direction of a signal and the polarity (up/down) of a chart bar. When using the default "On Bar Balance" to detect divergences, however, only the bar's volume delta is used. You may wonder how there can be divergences between buying/selling volume information and price movement on one bar. This will sometimes be due to the calculation's shortcomings, but divergences may also occur in instances where because of order book structure, it takes less volume to increase the price of an asset than it takes to decrease it. As usual, divergences are points of interest because they reveal imbalances, which may or may not become turning points. To your pattern-hungry brain, the divergences displayed by this indicator will — as they do on other indicators — appear to often indicate turnarounds. My opinion is that reality is generally quite sobering and I have no reliable information that would tend to prove otherwise. Exercise caution when using them. Consequently, I do not share the overwhelming enthusiasm of traders in identifying bullish/bearish divergences. For me, the best course of action when a divergence occurs is to wait and see what happens from there. That is the rationale underlying how my divergence levels work; they take note of a signal's level when a divergence occurs, and it's the signal's behavior from that point on that determines if the post-divergence action is bullish/bearish.
Superfluity
In "The Bed of Procrustes", Nassim Nicholas Taleb writes: To bankrupt a fool, give him information . This indicator can display lots of information. While learning to use a new indicator inevitably requires an adaptation period where we put it through its paces and try out all its options, once you have become used to it and decide to adopt it, rigorously eliminate the components you don't use and configure the remaining ones so their visual prominence reflects their relative importance in your analysis. I tried to provide flexible options for traders to control this indicator's visuals for that exact reason — not for window dressing.
█ LIMITATIONS
• This script uses a special characteristic of the `security()` function allowing the inspection of intrabars — which is not officially supported by TradingView.
It has the advantage of permitting a more robust calculation of volume delta than other methods on historical bars, but also has its limits.
• Intrabar inspection only works on some chart timeframes: 3, 5, 10, 15 and 30 minutes, 1, 2, 3, 4, 6, and 12 hours, 1 day, 1 week and 1 month.
The script’s code can be modified to run on other resolutions.
• When the difference between the chart’s timeframe and the intrabar timeframe is too great, runtime errors will occur. The Auto-Steps selection mechanisms should avoid this.
• All volume is not created equally. Its source, components, quality and reliability will vary considerably with sectors and instruments.
The higher the quality, the more reliably volume delta information can be used to guide your decisions.
You should make it your responsibility to understand the volume information provided in the data feeds you use. It will help you make the most of volume delta.
█ NOTES
For traders
• The Data Window shows key values for the indicator.
• While this indicator displays some of the same information calculated in my Delta Volume Columns ,
I have elected to make it a separate publication so that traders continue to have a simpler alternative available to them. Both code bases will continue to evolve separately.
• All gradients used in this indicator determine their brightness intensities using advances/declines in the signal—not their relative position in a pre-determined scale.
• Volume delta being relative, by nature, it is particularly well-suited to Forex markets, as it filters out quite elegantly the cyclical volume data characterizing the sector.
If you are interested in volume delta, consider having a look at my other "Delta Volume" indicators:
• Delta Volume Realtime Action displays realtime volume delta and tick information on the chart.
• Delta Volume Candles builds volume delta candles on the chart.
• Delta Volume Columns is a simpler version of this indicator.
For coders
• I use the `f_c_gradientRelativePro()` from the PineCoders Color Gradient Framework to build my gradients.
This function has the advantage of allowing begin/end colors for both the bull and bear colors. It also allows us to define the number of steps allowed for each gradient.
I use this to modulate the gradients so they perform optimally on the combination of the signal used to calculate advances/declines,
but also the nature of the visual component the gradient applies to. I use fewer steps for choppy signals and when the gradient is used on discrete visual components
such as volume columns or chart bars.
• I use the PineCoders Coding Conventions for Pine to write my scripts.
• I used functions modified from the PineCoders MTF Selection Framework for the selection of timeframes.
█ THANKS TO:
— The devs from TradingView's Pine and other teams, and the PineCoders who collaborate with them. They are doing amazing work,
and much of what this indicator does could not be done without their recent improvements to Pine.
— A guy called Kuan who commented on a Backtest Rookies presentation of their Volume Profile indicator using a `for` loop.
This indicator started from the intrabar inspection technique illustrated in Kuan's snippet.
— theheirophant , my partner in the exploration of the sometimes weird abysses of `security()`’s behavior at intrabar timeframes.
— midtownsk8rguy , my brilliant companion in mining the depths of Pine graphics.
MACD Histogram Color Tabledisplaying the MACD Histogram color and divergences across multiple timeframes. Here's how it works step by step:
1. Setting the Table Position
The script allows the user to choose where the table will be placed using the positionOption input. The three options are:
Top Right
Top Left
Top Center
Depending on the selected option, the table is created at the corresponding position.
2. Creating the Table
A table (macdTable) is created with 8 columns (for different timeframes) and 3 rows (for different data points).
3. MACD Histogram Color Function (f_get_macd_color)
This function calculates the MACD line, signal line, and histogram for a given timeframe.
The histogram (histLine) is used to determine the cell background color:
Green if the histogram is positive.
Red if the histogram is negative.
4. Divergence Detection Function (f_detect_divergence)
This function looks for bullish and bearish divergences using the MACD histogram:
Bullish Divergence (🟢)
The price makes a lower low.
The MACD histogram makes a higher low.
Bearish Divergence (🔴)
The price makes a higher high.
The MACD histogram makes a lower high.
The function returns:
🟢 (green circle) for bullish divergence.
🔴 (red circle) for bearish divergence.
"" (empty string) if no divergence is detected.
5. Populating the Table
The table has three rows for each timeframe:
First row: Displays the timeframe labels (5m, 15m, 30m, etc.).
Second row: Shows MACD Histogram color (red/green).
Third row: Displays divergences (🟢/🔴).
This is done using table.cell() for each timeframe.
6. Final Result
A table is displayed on the chart.
Each column represents a different timeframe.
The color-coded row shows the MACD histogram status.
The bottom row shows detected divergences.
VWAP Separation Oscillator V5 (No Arrows)Okay, here is a draft description you can adapt for your TradingView publication. It starts from the basics and explains the concepts behind the indicator and how to interpret its visual elements.
VWAP Separation Oscillator
Summary
This indicator provides a normalized view of how far the current price has deviated from its Volume-Weighted Average Price (VWAP), helping traders identify potentially overbought or oversold conditions relative to recent VWAP dynamics. It calculates the price separation from VWAP and expresses it in terms of standard deviations (a Z-score), making it easier to gauge the statistical significance of the deviation.
Core Concepts Explained
What is VWAP?
VWAP stands for Volume-Weighted Average Price. It's a trading benchmark calculated by taking the total dollar value traded for every transaction (price multiplied by volume) and dividing it by the total shares traded for the day (or other chosen period).
Unlike a simple moving average, VWAP gives more weight to price levels where more volume occurred. Many institutional traders use it as a reference point for execution quality.
This indicator allows you to choose the "Anchor Period" (Session, Week, Month, etc.) which determines when the VWAP calculation resets.
What is VWAP Separation?
P
rice doesn't always stay at the VWAP; it naturally fluctuates above and below it.
"VWAP Separation" is simply the difference between the current price (Source) and the calculated VWAP value (Separation = Price - VWAP). A positive separation means the price is above VWAP; negative means below.
How Standard Deviation is Used:
While knowing the separation is useful, its significance can vary wildly between different stocks or market conditions. A $1 separation might be huge for one stock but tiny for another.
Standard Deviation is a statistical measure of how spread out data points are from their average. In this indicator, we calculate the standard deviation of the VWAP Separation over a specified Lookback Length. This tells us how volatile or dispersed the separation has been recently.
The Oscillator Line (Z-Score):
The main purple (or Green/Red) line plotted by this indicator is the Z-score of the VWAP Separation.
Formula conceptually: Oscillator Value = (Current Separation - Average Separation) / Standard Deviation of Separation
Interpretation: It tells you how many standard deviations the current separation is away from the average separation over the lookback period.
A value of +2.0 means the current separation is 2 standard deviations higher (more extended to the upside) than the average separation.
A value of -1.5 means the current separation is 1.5 standard deviations lower (more extended to the downside) than the average separation.
This normalization makes it easier to compare readings across different assets or timeframes and to define consistent thresholds for "extreme" deviations.
Visual Elements Explained
Oscillator Line: The primary line showing the Z-score value (explained above). Can optionally be colored Green/Red based on its slope (rising/falling).
Overbought Line (Solid Red): A user-defined level (default: 2.0). When the oscillator moves above this line, it suggests the price deviation above VWAP is statistically significant compared to recent history.
Oversold Line (Solid Green): A user-defined level (default: -2.0). When the oscillator moves below this line, it suggests the price deviation below VWAP is statistically significant compared to recent history.
Overbought/Oversold Zone Fills (Transparent Red/Green): These shaded areas appear only when the oscillator line enters the respective Overbought or Oversold territory (defined by the OB/OS Lines), visually highlighting these periods.
Zero Line (Dotted Gray): Represents the point where the current VWAP separation is exactly equal to the average VWAP separation over the lookback period. Crossings indicate shifts relative to this mean.
Zero Cross Markers (Orange 'X'): Small 'x' marks plotted directly on the oscillator line whenever it crosses the Zero Line, pinpointing these moments.
Potential Usage / Interpretation
Identifying Extremes: High positive values (above OB Level) or low negative values (below OS Level) can suggest the price move relative to VWAP might be over-extended and potentially due for a pause or pullback. Look for the oscillator turning back from these extremes.
Spotting Divergences: Look for discrepancies between price action and the oscillator.
Bearish Divergence: Price makes a new high, but the oscillator makes a lower high (often in the OB zone). Suggests weakening upside momentum relative to VWAP dynamics.
Bullish Divergence: Price makes a new low, but the oscillator makes a higher low (often in the OS zone). Suggests weakening downside momentum relative to VWAP dynamics.
Context is Key: This oscillator measures deviation from a specific benchmark (VWAP). Its interpretation should always be done within the context of the overall market trend, price structure (support/resistance), volume analysis, and potentially other confirming indicators.
Disclaimer: This indicator is a tool for analysis, not a standalone trading system. It does not provide financial advice. Always use risk management.
Settings Overview
Anchor Period: Determines how often the VWAP calculation resets (Session, Week, Month, etc.).
Source: The price data used for the separation calculation (default: hlc3).
Lookback Length: The number of bars used to calculate the average and standard deviation of the separation, influencing the oscillator's responsiveness.
Overbought/Oversold Levels: User-defined thresholds for identifying extreme Z-score values.
Color Oscillator Line: Option to color the oscillator line based on whether it's rising or falling.
Waldo RSI :oWaldo RSI :o Indicator Guide
The Waldo RSI :o indicator is designed to complement the "Waldo RSI Overlay :o" by providing an RSI-based analysis on TradingView, focusing on macro shifts in market trends. Here's a comprehensive guide on how to use this indicator:
Key Features:
RSI Settings:
RSI Source: Choose from ON RSI, ON HIGH, ON LOW, ON CLOSE, or ON OPEN to determine how RSI calculates pivots.
RSI Settings:
Source: Default is (H+L)/2, but you can select any price for RSI calculation.
Length: Default RSI length is 7, which can be adjusted for sensitivity.
Trend Lines:
Show Trend Lines: Option to display trend lines based on RSI pivot points.
Zigzag Length: Determines pivot point sensitivity.
Confirm Length: Validates pivot points (default is 3).
Colors: Customize colors for Higher Highs (HH), Lower Highs (LH), Higher Lows (HL), and Lower Lows (LL) on the RSI.
Label Size and Line Width: Adjust the appearance of labels and lines.
Divergences:
Classic Divergences:
Show Classic Div: Toggle to reveal divergences where RSI and price move in opposite directions.
Colors: Set different colors for bullish and bearish divergence indicators.
Transparency and Line Width: Control the visual impact of divergence signals.
Hidden Divergences:
Similar settings for identifying hidden divergences, suggest trend continuation.
Breakout/Breakdown:
Show Breakout/Breakdown: Generates signals for RSI breakouts or breakdowns, used by "Waldo RSI Overlay :o" for visual chart signals.
Overbought/Oversold Zones:
Show Overbought and OverSold Zones: Highlights when RSI goes above 70 (overbought) or below 30 (oversold).
Moving Averages on RSI:
The default Moving Average (MA) settings are tailored to capture macro shifts in market trends:
Show Moving Averages: Option to overlay two MAs on the RSI for trend confirmation:
Fast RSI MA:
RSI Period: 50 (this is the period over which the RSI is calculated).
MA Length: 50 (the number of periods used for the moving average of the RSI).
Slow RSI MA:
RSI Period: 50 (same as fast for consistency in RSI calculation).
MA Length: 200 (longer term for capturing broader trends).
Crossover Signals: The RSI changes color from red to green based on these moving average crossovers:
When the Fast MA (50 period) crosses above the Slow MA (200 period), the RSI turns green, indicating potential bullish conditions or momentum shift.
Conversely, when the Fast MA crosses below the Slow MA, the RSI turns red, suggesting bearish conditions or a shift back towards a downtrend.
This 50-period RSI crossover setting is used to identify overall macro shifts in the market, providing a clear visual cue for traders looking at longer-term trends.
Ghost Lines (Optional):
Ghost Lines: Option to limit how far RSI trend lines extend, helping to keep the chart less cluttered.
How to Use the Indicator:
Setup:
Configure RSI by choosing the source and setting the length to match your trading style.
Set the zigzag and confirm lengths for appropriate pivot detection.
Trend Analysis:
Monitor the RSI for trend changes using the colored trend lines and labels.
Divergence Detection:
Look for RSI and price divergences to anticipate potential reversals or continuations.
Breakout/Breakdown:
Use these signals in conjunction with "Waldo RSI Overlay :o" for price action confirmation.
Overbought/Oversold:
Identify when the market might be due for a correction or continued momentum.
Moving Averages:
Focus on the color changes in RSI to understand macro trend shifts with the default 50/200 period setup.
Ghost Lines:
Enable for a cleaner chart if you don't need trend lines extending indefinitely.
Usage Tips:
Combine with other indicators for confirmation, as no single tool is foolproof.
Adjust settings to suit different market conditions or trading timeframes.
Use in tandem with "Waldo RSI Overlay :o" for a full trading signal system.
Remember, trading involves significant risk, and historical data does not guarantee future performance. Use this indicator as part of a broader trading strategy.
Bar Balance [LucF]Bar Balance extracts the number of up, down and neutral intrabars contained in each chart bar, revealing information on the strength of price movement. It can display stacked columns representing raw up/down/neutral intrabar counts, or an up/down balance line which can be calculated and visualized in many different ways.
WARNING: This is an analysis tool that works on historical bars only. It does not show any realtime information, and thus cannot be used to issue alerts or for automated trading. When realtime bars elapse, the indicator will require a browser refresh, a change to its Inputs or to the chart's timeframe/symbol to recalculate and display information on those elapsed bars. Once a trader understands this, the indicator can be used advantageously to make discretionary trading decisions.
Traders used to work with my Delta Volume Columns Pro will feel right at home in this indicator's Inputs . It has lots of options, allowing it to be used in many different ways. If you value the bar balance information this indicator mines, I hope you will find the time required to master the use of Bar Balance well worth the investment.
█ OVERVIEW
The indicator has two modes: Columns and Line .
Columns
• In Columns mode you can display stacked Up/Down/Neutral columns.
• The "Up" section represents the count of intrabars where `close > open`, "Down" where `close < open` and "Neutral" where `close = open`.
• The Up section always appears above the centerline, the Down section below. The Neutral section overlaps the centerline, split halfway above and below it.
The Up and Down sections start where the Neutral section ends, when there is one.
• The Up and Down sections can be colored independently using 7 different methods.
• The signal line plotted in Line mode can also be displayed in Columns mode.
Line
• Displays a single balance line using a zero centerline.
• A variable number of independent methods can be used to calculate the line (6), determine its color (5), and color the fill (5).
You can thus evaluate the state of 3 different components with this single line.
• A "Divergence Levels" feature will use the line to automatically draw expanding levels on divergence events.
Features available in both modes
• The color of all components can be selected from 15 base colors, with 16 gradient levels used for each base color in the indicator's gradients.
• A zero line can show a 6-state aggregate value of the three main volume balance modes.
• The background can be colored using any of 5 different methods.
• Chart bars can be colored using 5 different methods.
• Divergence and large neutral count ratio events can be shown in either Columns or Line mode, calculated in one of 4 different methods.
• Markers on 6 different conditions can be displayed.
█ CONCEPTS
Intrabar inspection
Intrabar inspection means the indicator looks at lower timeframe bars ( intrabars ) making up a given chart bar to gather its information. If your chart is on a 1-hour timeframe and the intrabar resolution determined by the indicator is 5 minutes, then 12 intrabars will be analyzed for each chart bar and the count of up/down/neutral intrabars among those will be tallied.
Bar Balances and calculation methods
The indicator uses a variety of methods to evaluate bar balance and to derive other calculations from them:
1. Balance on Bar : Uses the relative importance of instant Up and Down counts on the bar.
2. Balance Averages : Uses the difference between the EMAs of Up and Down counts.
3. Balance Momentum : Starts by calculating, separately for both Up and Down counts, the difference between the same EMAs used in Balance Averages and an SMA of double the period used for the EMAs. These differences are then aggregated and finally, a bounded momentum of that aggregate is calculated using RSI.
4. Markers Bias : It sums the bull/bear occurrences of the four previous markers over a user-defined period (the default is 14).
5. Combined Balances : This is the aggregate of the instant bull/bear bias of the three main bar balances.
6. Dual Up/Down Averages : This is a display mode showing the EMA calculated for each of the Up and Down counts.
Interpretation of neutral intrabars
What do neutral intrabars mean? When price does not change during a bar, it can be because there is simply no interest in the market, or because of a perfect balance between buyers and sellers. The latter being more improbable, Bar Balance assumes that neutral bars reveal a lack of interest, which entails uncertainty. That is the reason why the option is provided to interpret ratios of neutral intrabars greater than 50% as divergences. It is also the rationale behind the option to dampen signal lines on the inverse ratio of neutral intrabars, so that zero intrabars do not affect the signal, and progressively larger proportions of neutral intrabars will reduce the signal's amplitude, as the balance calcs using the up/down counts lose significance. The impact of the dampening will vary with markets. Weaker markets such as cryptos will often contain greater numbers of neutral intrabars, so dampening the Line in that sector will have a greater impact than in more liquid markets.
█ FEATURES
1 — Columns
• While the size of the Up/Down columns always represents their respective importance on the bar, their coloring mode is independent. The default setup uses a standard coloring mode where the Up/Down columns over/under the zero line are always in the bull/bear color with a higher intensity for the winning side. Six other coloring modes allow you to pack more information in the columns. When choosing to color the top columns using a bull/bear gradient on Balance Averages, for example, you will end up with bull/bear colored tops. In order for the color of the bottom columns to continue to show the instant bar balance, you can then choose the "Up/Down Ratio on Bar — Dual Solid Colors" coloring mode to make those bars the color of the winning side for that bar.
• Line mode shows only the line, but Columns mode allows displaying the line along with it. If the scale of the line is different than that of the scale of the columns, the line will often appear flat. Traders may find even a flat line useful as its bull/bear colors will be easily distinguishable.
2 — Line
• The default setup for Line mode uses a calculation on "Balance Momentum", with a fill on the longer-term "Balance Averages" and a line color based on the "Markers Bias". With the background set on "Line vs Divergence Levels" and the zero line on the hard-coded "Combined Bar Balances", you have access to five distinct sources of information at a glance, to which you can add divergences, divergences levels and chart bar coloring. This provides powerful potential in displaying bar balance information.
• When no columns are displayed, Line mode can show the full scale of whichever line you choose to calculate because the columns' scale no longer interferes with the line's scale.
• Note that when "Balance on Bar" is selected, the Neutral count is also displayed as a ratio of the balance line. This is the only instance where the Neutral count is displayed in Line mode.
• The "Dual Up/Down Averages" is an exception as it displays two lines: one average for the Up counts and another for the Down counts. This mode will be most useful when Columns are also displayed, as it provides a reference for the top and bottom columns.
3 — Zero Line
The zero line can be colored using two methods, both based on the Combined Balances, i.e., the aggregate of the instant bull/bear bias of the three main bar balances.
• In "Six-state Dual Color Gradient" mode, a dot appears on every bar. Its color reflects the bull/bear state of the Combined Balances, and the dot's brightness reflects the tally of balance biases.
• In "Dual Solid Colors (All Bull/All Bear Only)" a dot only appears when all three balances are either bullish or bearish. The resulting pattern is identical to that of Marker 1.
4 — Divergences
• Divergences are displayed as a small circle at the top of the scale. Four different types of divergence events can be detected. Divergences occur whenever the bull/bear bias of the method used diverges with the bar's price direction.
• An option allows you to include in divergence events instances where the count of neutral intrabars exceeds 50% of the total intrabar count.
• The divergence levels are dynamic levels that automatically build from the line's values on divergence events. On consecutive divergences, the levels will expand, creating a channel. This implementation of the divergence levels corresponds to my view that divergences indicate anomalies, hesitations, points of uncertainty if you will. It excludes any association of a pre-determined bullish/bearish bias to divergences. Accordingly, the levels merely take note of divergence events and mark those points in time with levels. Traders then have a reference point from which they can evaluate further movement. The bull/bear/neutral colors used to plot the levels are also congruent with this view in that they are determined by price's position relative to the levels, which is how I think divergences can be put to the most effective use.
5 — Background
• The background can show a bull/bear gradient on four different calculations. You can adjust its brightness to make its visual importance proportional to how you use it in your analysis.
6 — Chart bars
• Chart bars can be colored using five different methods.
• You have the option of emptying the body of bars where volume does not increase, as does my TLD indicator, the idea behind this being that movement on bars where volume does not increase is less relevant.
7 — Intrabar Resolution
You can choose between three modes. Two of them are automatic and one is manual:
a) Fast, Longer history, Auto-Steps (~12 intrabars) : Optimized for speed and deeper history. Uses an average minimum of 12 intrabars.
b) More Precise, Shorter History Auto-Steps (~24 intrabars) : Uses finer intrabar resolution. It is slower and provides less history. Uses an average minimum of 24 intrabars.
c) Fixed : Uses the fixed resolution of your choice.
Auto-Steps calculations vary for 24/7 and conventional markets in order to achieve the proper target of minimum intrabars.
You can choose to view the intrabar resolution currently used to calculate delta volume. It is the default.
The proper selection of the intrabar resolution is important. It must achieve maximal granularity to produce precise results while not unduly slowing down calculations, or worse, causing runtime errors.
8 — Markers
Six markers are available:
1. Combined Balances Agreement : All three Bar Balances are either bullish or bearish.
2. Up or Down % Agrees With Bar : An up marker will appear when the percentage of up intrabars in an up chart bar is greater than the specified percentage. Conditions mirror to down bars.
3. Divergence confirmations By Price : One of the four types of balance calculations can be used to detect divergences with price. Confirmations occur when the bar following the divergence confirms the balance bias. Note that the divergence events used here do not include neutral intrabar events.
4. Balance Transitions : Bull/bear transitions of the selected balance.
5. Markers Bias Transitions : Bull/bear transitions of the Markers Bias.
6. Divergence Confirmations By Line : Marks points where the line first breaches a divergence level.
Markers appear when the condition is detected, without delay. Since nothing is plotted in realtime, markers do not appear on the realtime bar.
9 — Settings
• Two modes can be selected to dampen the line on the ratio of neutral intrabars.
• A distinct weight can be attributed to the count of the latter half of intrabars, on the assumption that later intrabars may be more important in determining the outcome of chart bars.
• Allows control over the periods of the different moving averages used in calculations.
• The default periods used for the various calculations define the following hierarchy from slow to fast:
Balance Averages: 50,
Balance Momentum: 20,
Dual Up/Down Averages: 20,
Marker Bias: 10.
█ LIMITATIONS
• This script uses a special characteristic of the `security()` function allowing the inspection of intrabars—which is not officially supported by TradingView.
• The method used does not work on the realtime bar—only on historical bars.
• The indicator only works on some chart resolutions: 3, 5, 10, 15 and 30 minutes, 1, 2, 4, 6, and 12 hours, 1 day, 1 week and 1 month. The script’s code can be modified to run on other resolutions, but chart resolutions must be divisible by the lower resolution used for intrabars and the stepping mechanism could require adaptation.
• When using the "Line vs Divergence Levels — Dual Color Gradient" color mode to fill the line, background or chart bars, keep in mind that a line calculation mode must be defined for it to work, as it determines gradients on the movement of the line relative to divergence levels. If the line is hidden, it will not work.
• When the difference between the chart’s resolution and the intrabar resolution is too great, runtime errors will occur. The Auto-Steps selection mechanisms should avoid this.
• Alerts do not work reliably when `security()` is used at intrabar resolutions. Accordingly, no alerts are configured in the indicator.
• The color model used in the indicator provides for fancy visuals that come at a price; when you change values in Inputs , it can take 20 seconds for the changes to materialize. Luckily, once your color setup is complete, the color model does not have a large performance impact, as in normal operation the `security()` calls will become the most important factor in determining response time. Also, once in a while a runtime error will occur when you change inputs. Just making another change will usually bring the indicator back up.
█ RAMBLINGS
Is this thing useful?
I'll let you decide. Bar Balance acts somewhat like an X-Ray on bars. The intrabars it analyzes are no secret; one can simply change the chart's resolution to see the same intrabars the indicator uses. What the indicator brings to traders is the precise count of up/down/neutral intrabars and, more importantly, the calculations it derives from them to present the information in a way that can make it easier to use in trading decisions.
How reliable is Bar Balance information?
By the same token that an up bar does not guarantee that more up bars will follow, future price movements cannot be inferred from the mere count of up/down/neutral intrabars. Price movement during any chart bar for which, let's say, 12 intrabars are analyzed, could be due to only one of those intrabars. One can thus easily see how only relying on bar balance information could be very misleading. The rationale behind Bar Balance is that when the information mined for multiple chart bars is aggregated, it can provide insight into the history behind chart bars, and thus some bias as to the strength of movements. An up chart bar where 11/12 intrabars are also up is assumed to be stronger than the same up bar where only 2/12 intrabars are up. This logic is not bulletproof, and sometimes Bar Balance will stray. Also, keep in mind that balance lines do not represent price momentum as RSI would. Bar Balance calculations have no idea where price is. Their perspective, like that of any historian, is very limited, constrained that it is to the narrow universe of up/down/neutral intrabar counts. You will thus see instances where price is moving up while Balance Momentum, for example, is moving down. When Bar Balance performs as intended, this indicates that the rally is weakening, which does necessarily imply that price will reverse. Occasionally, price will merrily continue to advance on weakening strength.
Divergences
Most of the divergence detection methods used here rely on a difference between the bias of a calculation involving a multi-bar average and a given bar's price direction. When using "Bar Balance on Bar" however, only the bar's balance and price movement are used. This is the default mode.
As usual, divergences are points of interest because they reveal imbalances, which may or may not become turning points. I do not share the overwhelming enthusiasm traders have for the purported ability of bullish/bearish divergences to indicate imminent reversals.
Superfluity
In "The Bed of Procrustes", Nassim Nicholas Taleb writes: To bankrupt a fool, give him information . Bar Balance can display lots of information. While learning to use a new indicator inevitably requires an adaptation period where we put it through its paces and try out all its options, once you have become used to Bar Balance and decide to adopt it, rigorously eliminate the components you don't use and configure the remaining ones so their visual prominence reflects their relative importance in your analysis. I tried to provide flexible options for traders to control this indicator's visuals for that exact reason—not for window dressing.
█ NOTES
For traders
• To avoid misleading traders who don't read script descriptions, the indicator shows nothing in the realtime bar.
• The Data Window shows key values for the indicator.
• All gradients used in this indicator determine their brightness intensities using advances/declines in the signal—not their relative position in a fixed scale.
• Note that because of the way gradients are optimized internally, changing their brightness will sometimes require bringing down the value a few steps before you see an impact.
• Because this indicator does not use volume, it will work on all markets.
For coders
• For those interested in gradients, this script uses an advanced version of the Advance/Decline gradient function from the PineCoders Color Gradient (16 colors) Framework . It allows more precise control over the range, steps and min/max values of the gradients.
• I use the PineCoders Coding Conventions for Pine to write my scripts.
• I used functions modified from the PineCoders MTF Selection Framework for the selection of timeframes.
█ THANKS TO:
— alexgrover who helped me think through the dampening method used to attenuate signal lines on high ratios of neutral intrabars.
— A guy called Kuan who commented on a Backtest Rookies presentation of their Volume Profile indicator . The technique I use to inspect intrabars is derived from Kuan's code.
— theheirophant , my partner in the exploration of the sometimes weird abysses of `security()`’s behavior at intrabar resolutions.
— midtownsk8rguy , my brilliant companion in mining the depths of Pine graphics. He is also the co-author of the PineCoders Color Gradient Frameworks .
Dynamic Price Oscillator [CHE]Dynamic Price Oscillator
Overview:
Welcome to the Dynamic Price Oscillator ! This indicator is designed to help traders identify potential trend reversals and divergences by comparing short-term and long-term price movements in percentage terms. It’s a powerful tool to enhance your trading strategies by spotting bullish and bearish divergences effectively.
Key Features:
Dynamic Oscillator Calculation: The DPO calculates the percentage difference between two EMAs (Exponential Moving Averages), offering insight into the relative strength of price movements.
Bullish & Bearish Divergence Detection:
The indicator highlights divergences between price and the oscillator, allowing you to identify potential reversal points with ease.
Long-Term Divergence Option: Enable or disable long-term divergences to focus on either short-term trends or broader market movements.
High/Low Markers:
Visual markers for significant peaks and troughs in the DPO, helping you quickly spot potential trade setups.
Custom Alerts: Set up alerts for both bullish and bearish divergence signals, ensuring you never miss an important opportunity.
How to Use:
Bullish Divergence: A bullish divergence occurs when price is making lower lows, but the DPO shows higher lows. This can indicate a potential reversal to the upside.
Bearish Divergence: A bearish divergence happens when price is making higher highs, but the DPO shows lower highs. This can signal a potential downside reversal.
Customizable Settings: Adjust the fast and slow EMA periods, smoothing factor, and divergence lookback to fit your personal trading style.
Ideal For:
Swing traders and day traders looking for early signs of market reversals.
Those who want a clear, visual representation of divergence between price and momentum.
Traders who appreciate flexibility with customizable parameters and built-in alerts.
Why Use Dynamic Price Oscillator ?
This indicator gives you the edge by providing a reliable way to measure price momentum and detect divergences that are often missed by other indicators. With the option to enable long-term divergences, you can tailor the indicator to fit both short-term and long-term strategies.
Give it a try and see how the Dynamic Price Oscillator can enhance your trading performance!
Best regards Chervolino
OBV Oscillator Volume FilterOBV Oscillator Volume Filter
Introduction
The On-Balance Volume (OBV) is a widely-used technical indicator that aims to relate price and volume in trading. Price and volume are two of the most basic and yet crucial concepts in price movement. Together, they can reveal a lot about the instruments trends and the market's sentiment. This On Balance Volume (OBV) Oscillator incorporates enhanced features like a volume filter using a rolling window to detect outliers in accumulated volume, making it an advanced and more refined version of the standard OBV.
Interpreting the OBV Indicator
The primary function of the OBV is to accumulate volume. In simpler terms:
When the market closes higher than the previous candle, all of that candle's volume is considered 'up-volume'.
Conversely, when the market closes lower than the previous day, all of that candle's volume is considered 'down-volume'.
A rising OBV suggests that volume is being accumulated, indicating bullish market sentiment. A declining OBV, on the other hand, points to a bearish sentiment.
Features of the Script
1. Moving Averages Selection:
The script provides users with the option to select among six types of moving averages (EMA, DEMA, TEMA, SMA, WMA, HMA) to calculate the OBV. This feature offers flexibility and enables traders to choose an MA type they're most comfortable with or find the most effective.
2. Smoothing Option:
To reduce the inherent noise in the indicator, there's an option to apply smoothing. It uses a Simple Moving Average (SMA) to produce a clearer signal, making it easier for traders to interpret and respond to. If you don't want to use smoothing, just simply change the input length of smoothing to 1 in the settings.
3. Outlier Detection:
One of the standout features is the use of a rolling window to detect volume outliers. This ensures that the OBV only reacts to significant volume changes and isn't overly influenced by random spikes or drops. The volume filter is calculated based on a % of the highest OBV volume of X number of bars back. Users can adjust the time (# bars) and the sensitivity (%) of the volume filter. A longer timeperiode (# bars) and a higher % (sensitivity) in the settings result to less signals presented by the indicator.
4. Divergence Detection:
The script automatically highlights both regular and hidden divergences on the chart. Divergences can be a powerful signal of potential price reversals. This feature aids traders in spotting potential buy or sell opportunities based on divergences between price and OBV.
Regular Bullish Divergence: When the price makes lower lows, but the OBV makes higher lows.
Hidden Bullish Divergence: When the price makes higher lows, but the OBV makes lower lows.
Regular Bearish Divergence: When the price makes higher highs, but the OBV makes lower highs.
Hidden Bearish Divergence: When the price makes lower highs, but the OBV makes higher highs.
5. Alerts for Trend Reversals:
The script incorporates alerts that notify traders when the OBV indicates potential trend reversals. This feature can be instrumental in catching early entries or exits.
Disclaimer
It's crucial to understand that no single indicator should be used in isolation. To increase the probability of making accurate market predictions, always use the OBV Oscillator in conjunction with other indicators and tools. Remember that all trading involves risk, and it's possible to lose your invested capital. Always seek advice from a financial advisor before making any trading decisions. By enhancing the OBV with features like the volume filter, multiple MA types, smoothing, and divergence detection, this script becomes a potent tool in a trader's arsenal. Use it wisely, and always ensure to maintain proper risk management.
Williams BBDiv Signal [trade_lexx]📈 Williams BBDiv Signal — Improve your trading strategy with accurate signals!
Introducing Williams BBDiv Signal , an advanced trading indicator designed for a comprehensive analysis of market conditions. This indicator combines Williams%R with Bollinger Bands, providing traders with a powerful tool for generating buy and sell signals, as well as detecting divergences. It is ideal for traders who need an advantage in detecting changing trends and market conditions.
🔍 How signals work
— A buy signal is generated when the Williams %R line crosses the lower Bollinger Bands band from bottom to top. This indicates that the market may be oversold and ready for a rebound. They are displayed as green triangles located under the Williams %R graph. On the main chart, buy signals are displayed as green triangles labeled "Buy" under candlesticks.
— A sell signal is generated when the Williams %R line crosses the upper Bollinger Bands band from top to bottom. This indicates that the market may be overbought and ready for a correction. They are displayed as red triangles located above the Williams %R chart. On the main chart, the sell signals are displayed as red triangles with the word "Sell" above the candlesticks.
— Minimum Bars Between Signals
The user can adjust the minimum number of bars between the signals to avoid false signals. This helps to filter out noise and improve signal quality.
— Mode "Wait for Opposite Signal"
In this mode, buy and sell signals are generated only after receiving the opposite signal. This adds an additional level of filtering and helps to avoid false alarms.
— Mode "Overbought and Oversold Zones"
A buy signal is generated only when Williams %R is below the -80 level (Lower Band). A sell signal is generated only when Williams %R is above -20 (Upper Band).
📊 Divergences
— Bullish divergence occurs when Williams%R shows a higher low while price shows a lower low. This indicates a possible upward reversal. They are displayed as green lines and labels labeled "Bull" on the Williams %R chart. On the main chart, bullish divergences are displayed as green triangles labeled "Bull" under candlesticks.
— A bearish divergence occurs when Williams %R shows a lower high, while the price shows a higher high. This indicates a possible downward reversal. They are displayed as red lines and labels labeled "Bear" on the Williams %R chart. On the main chart, bearish divergences are displayed as red triangles with the word "Bear" above the candlesticks.
— 🔌Connector Signal🔌 and 🔌Connector Divergence🔌
It allows you to connect the indicator to trading strategies and test signals throughout the trading history. This makes the indicator an even more powerful tool for traders who want to test the effectiveness of their strategies on historical data.
🔔 Alerts
The indicator provides the ability to set up alerts for buy and sell signals, as well as for divergences. This allows traders to keep abreast of important market developments without having to constantly monitor the chart.
🎨 Customizable Appearance
Customize the appearance of Williams BBDiv Signal according to your preferences to make the analysis more convenient and visually pleasing. In the indicator settings section, you can change the colors of the buy and sell signals, as well as divergences, so that they stand out on the chart and are easily visible.
🔧 How it works
— The indicator starts by calculating the Williams %R and Bollinger Bands values for a certain period to assess market conditions. Initial assumptions are introduced for overbought and oversold levels, as well as for the standard deviation of the Bollinger Bands. The indicator then analyzes these values to generate buy and sell signals. This classification helps to determine the appropriate level of volatility for signal calculation. As the market evolves, the indicator dynamically adjusts, providing information about the trend and volatility in real time.
Quick Guide to Using Williams BBDiv Signal
— Add the indicator to your favorites by clicking on the star icon. Adjust the parameters, such as the period length for Williams %R, the type of moving average and the standard deviation for Bollinger Bands, according to your trading style. Or leave all the default settings.
— Adjust the signal filters to improve the quality of the signals and avoid false alarms, adjust the filters in the "Signal Settings" section.
— Turn on alerts so that you don't miss important trading opportunities and don't constantly sit at the chart, set up alerts for buy and sell signals, as well as for divergences. This will allow you to keep abreast of all key market developments and respond to them in a timely manner, without being distracted from other business.
— Use signals. They will help you determine the optimal entry and exit points for your positions. Also, pay attention to bullish and bearish divergences, which may indicate possible market reversals and provide additional trading opportunities.
— Use the 🔌Connector🔌 for deeper analysis and verification of the effectiveness of signals, connect it to your trading strategies. This will allow you to test signals throughout the trading history and evaluate their accuracy based on historical data. Include the indicator in your trading strategy and run testing to see how buy and sell signals have worked in the past. Analyze the test results to determine how reliable the signals are and how they can improve your trading strategy. This will help you make better informed decisions and increase your trading efficiency.
M & W Checklistindicator to Validate & Grade M & W Patterns.
Indicator Inputs
Table Color Palette
• Position Valid : Positions the Valid Trade table on the chart.
• Position Grade : Positions the Grade table on the chart, hover over the Column 1 Row 1 for a description of the bands.
• Size: Text size for all tables.
• Text Color : Sets text color.
• Border Color : Sets the table border color for all tables.
• Background Color : Sets table backgroud color for all tables.
Valid Trade Table
Checkboxes to indicate if the trade is valid. Fail is displayed if unchecked, Pass if checked.
Grade Table
• S/R Level 1: distance between neckline and 1st resistance area in % of the total distance between neckline and take profit. This is not for road blocks but pivot points etc before the initial run up/down in price. I have this set to 30% , this means that if there is a pivot point between the neckline and 30% of the TP level I weight it negatively.
• S/R Level 2: distance between neckline and 1st resistance area in % of the total distance between neckline and take profit. This is not for road blocks but pivot points etc before the initial run up/down in price. I have this set to 50% , this means that if there is a pivot point between the neckline and 50% of the TP level 2 weight it negatively but less so than level 1.
• S/R Level 3: distance between neckline and 1st resistance area in % of the total distance between neckline and take profit. This is not for road blocks but pivot points etc before the initial run up/down in price. I have this set to 70% , this means that if there is a pivot point between the neckline and 70% of the TP level 3 weight it negatively but less so than level 1 & level 2.
• Checkboxes are self explanatory, they are binary options, all are weighted negatively if checked and are weighted positively if unchecked. Divergence values for weighting are neutral if unckecked & weighted positively if checked.
• The select options are neutral weighting if set to neutral , if set to For its weighted positive and set to Against weighted negatively.
Technical Specification of the Scoring and Band System
Overview
The scoring system is designed to evaluate a set of technical trade conditions, assigning weights to various criteria that influence the quality of the trade. The system calculates a total score based on both positive and negative conditions. Based on the final score, the system assigns a grade or band (A, B, or C) for positive scores, and a "Negative" label for negative scores.
Scoring System
The system calculates the score by evaluating a set of 12 conditions (gradeCondition1 to gradeCondition12). These conditions are manually input by the user via checkboxes or dropdowns in a technical indicator (written in Pine Script for TradingView). The score weights vary according to the relative importance of each condition.
Condition Breakdown and Weighting:
1. Divergences (GradeCondition1 & GradeCondition2):
◦ 1H Divergence: +5 points if condition is true.
◦ 4H Divergence: +10 points if condition is true (stronger weight than 1H).
2. Support/Resistance at Neckline (GradeCondition3):
◦ Negative if present: -15 points if true (carries significant negative weight).
3. RB near Entry (GradeCondition4):
◦ Very Negative: -20 points if true (this is a critical negative condition).
4. RB can Manage (GradeCondition5):
◦ Slightly Negative: -5 points if true.
5. Institutional Value Zones (GradeCondition6 to GradeCondition8):
◦ For the trade: +5 points.
◦ Against the trade: -5 points.
◦ Neutral: 0 points.
6. S/R between Neckline & Targets (GradeCondition9 to GradeCondition11):
◦ Level 1: -10 points if true, +7 points if false.
◦ Level 2: -7 points if true, +7 points if false.
◦ Level 3: -5 points if true, +7 points if false.
◦ Use fib tool or Gann Box to measure any S/R levels setup according to your preferences.
7. News Timing (GradeCondition12):
◦ News within 3 hours: -20 points if true (strong negative factor).
◦ No upcoming news: +10 points if false.
Scoring Calculation Formula:
totalScore = score1 + score2 + score3 + score4 + score5 + score6 + score7 + score8 + score9 + score10 + score11 + score12
Where:
• score1 to score12 represent the points derived from the conditions described above.
Coloring and Visual Feedback:
• Positive Scores: Displayed in green.
• Negative Scores: Displayed in red.
Band System
The Band System classifies the total score into different grades, depending on the final value of totalScore. This classification provides an intuitive ranking for trades, helping users quickly assess trade quality.
Band Classification:
• Band A: If the totalScore is 41 or more.
◦ Represents a highly favorable trade setup.
• Band B: If the totalScore is between 21 and 40.
◦ Represents a favorable trade setup with good potential.
• Band C: If the totalScore is between 1 and 20.
◦ Represents a trade setup that is acceptable but may have risks.
• Negative: If the totalScore is 0 or less.
◦ Represents a poor trade setup with significant risks or unfavorable conditions.
Band Calculation Logic (in Pine Script):
var string grade = ""
if (totalScore >= 41)
grade := "Band A"
else if (totalScore >= 21)
grade := "Band B"
else if (totalScore >= 1)
grade := "Band C"
else
grade := "Negative"
Technical Key Points:
• Highly Negative Conditions:
◦ The system penalizes certain conditions more heavily, especially those that suggest significant risks (e.g., News in less than 3 hours, RB near Entry).
• Positive Trade Conditions:
◦ Divergences, Institutional Value Zones in favor of the trade, and lack of significant nearby resistance all contribute positively to the score.
• Flexible System:
◦ The system can be adapted or fine-tuned by adjusting the weights of individual conditions according to trading preferences.
Use Case Example:
• If a trade has 1H and 4H Divergence, RB near Entry (negative), and no upcoming news:
◦ 1H Divergence: +5 points.
◦ 4H Divergence: +10 points.
◦ RB near Entry: -20 points.
◦ No news: +10 points.
◦ Total Score: 5 + 10 - 20 + 10 = 5 → Band C.
This modular and flexible scoring system allows traders to systematically evaluate trades and quickly gauge the trade's potential based on technical indicators
Summary:
Maximum Score: 61
Minimum Score: -97
These are the bounds of the score range based on the current logic of the script.
