Comprehensive Technical AnalysisComprehensive Technical Analysis Script
Overview
This Script for TradingView is designed to perform and display a detailed technical analysis using a range of moving averages and oscillators. The script provides a summary of market conditions based on various indicators to help traders make informed decisions.
Key Features - Technical Indicators:
Moving Averages:
Simple Moving Average (SMA): Calculates the average price over a specified period.
Exponential Moving Average (EMA): Reacts faster to recent price changes by giving more weight to recent prices.
Weighted Moving Average (WMA): Weighs prices based on their position, giving more importance to recent prices.
Hull Moving Average (HMA): Reduces lag and provides a smoother trend line.
Triple Exponential Moving Average (TEMA): Combines three EMAs to minimize lag and offer a responsive trend indicator.
Exponential Moving Average of an Exponential Moving Average (EMAX): Applies an EMA twice to smooth out trends further.
Triangular Moving Average (TMA): Provides a smoother moving average by averaging over a triangular window.
Oscillators:
Relative Strength Index (RSI): Measures the speed and change of price movements to identify overbought or oversold conditions.
Stochastic Oscillator (%K): Compares a security’s closing price to its price range over a specific period to spot potential reversal points.
Commodity Channel Index (CCI): Identifies cyclical trends and measures the deviation of the price from its average.
Moving Average Convergence Divergence (MACD): Shows the relationship between two EMAs to identify changes in trend strength, direction, momentum, and duration.
Awesome Oscillator (AO): Measures market momentum by comparing two different moving averages.
Average Directional Index (ADX): Determines the strength of a trend and whether the market is trending or ranging.
Williams %R (WPR): Identifies overbought and oversold levels with a different calculation approach compared to the RSI.
Point System - Indicator Points:
Bullish Signal: Each indicator contributing to a positive market sentiment adds points.
Bearish Signal: Each indicator contributing to a negative market sentiment subtracts points.
Point Calculation:
Moving Averages: Points are assigned based on whether the current price is above or below each moving average.
Oscillators: Points are assigned based on whether the oscillator values are in bullish or bearish zones.
Summary Text:
Categorization: Based on the total points calculated from all indicators, the market condition is categorized into:
Strong Bullish: More than 8 points
Bullish: Between 3 and 8 points
Neutral: Between -2 and 2 points
Bearish: Between -3 and -8 points
Strong Bearish: Less than -8 points
Text Display: The summary text reflects the overall market sentiment and is color-coded for easy interpretation.
Table Display - The Position of the table can be customized by the user:
Vertical: Options include Top, Center, Bottom
Horizontal: Options include Left, Center, Right
Table Content:
Summary Text and Points: Displays the summary of technical indicators along with the calculated points.
Komut dosyalarını "bear" için ara
FVG (ICT) with Swing LevelsThis indicator, called "Fair Value Gaps (ICT) with Swing Levels", overlays on the main chart and does the following:
Initial Setup:
It defines user-adjustable parameters:
lookback: Lookback period to keep FVGs visible.
swingPeriod: Period for calculating swing highs and lows.
bullColor and bearColor: Colors for bullish and bearish FVGs.
Fair Value Gaps (FVGs) Detection:
Uses a function to identify FVGs by comparing candle high and low prices.
A bullish FVG forms when the low of two candles ago is higher than the high of the current candle.
A bearish FVG forms when the high of two candles ago is lower than the low of the current candle.
Swing Levels Calculation:
Calculates swing highs and lows over the specified period.
These swing levels define the current market range.
Current Range Verification:
Implements a function to check if an FVG is within the range defined by swing levels.
This ensures only the most relevant FVGs for the current market situation are displayed.
FVG Drawing:
When it detects an FVG (bullish or bearish) within the current range, it draws a box on the chart.
Boxes extend from the bar where the FVG formed to the current bar.
Bullish FVGs are drawn in green and bearish in red (colors are customizable).
Old FVGs Management:
On each new bar, the indicator checks all existing FVG boxes.
It removes boxes that are outside the specified lookback period.
It also removes boxes that are no longer within the current range of swing levels.
Swing Levels Visualization:
Draws lines on the chart to show swing highs (in blue) and swing lows (in purple).
These lines help visualize the current market range.
Continuous Update:
The indicator updates on each new candle, constantly refreshing FVGs and swing levels.
In summary, this indicator identifies and visualizes Fair Value Gaps according to the ICT methodology, filtering them based on higher timeframe swing levels. This helps traders focus on the most significant FVGs within the current market context, reducing visual noise and potentially improving trading decision-making.
AHS_MicroGaps_ReversalAttempts V1.0MicroGaps + ReversalAttempts Indicator
Summary:
The "MicroGaps + ReversalAttempts" is a custom TradingView indicator that identifies and visualizes micro gaps, detects reversal attempts after gaps, and optionally plots moving averages and the first-hour trading range. The indicator plots micro gaps as boxes on the chart and marks potential reversal attempts with arrows.
Features:
1. Micro Gaps**:
- Show Micro Gaps: Toggle to display micro gaps on the chart.
- Max Number of Gaps: Limit the number of gaps displayed.
- Minimal Deviation: Set the minimum size for detected gaps as a percentage of the average high-low range for the last 14 bars.
- Limit Max Gap Trail Length: Limit the maximum length (in bars) that a gap is tracked.
2. Gap Colors:
- Up Gaps: Set the border and background colors for upward gaps.
- Down Gaps: Set the border and background colors for downward gaps.
3. Reversal Attempts:
- 1st Reversal Attempt Bulls: Color for the first bullish reversal attempt after a micro gap.
- 1st Reversal Attempt Bears: Color for the first bearish reversal attempt after a micro gap.
4. Moving Averages:
- EMA 1 and EMA 2: Set lengths, colors, and toggle visibility for two EMAs.
- Show EMA Cross: Option to display markers where the EMAs cross each other.
5. First Hour Box:
- Show First Hour Box: Toggle to display the first hour's high and low range as a shaded area.
- Activate First Hour High/Low View: Toggle to highlight the first hour high/low range.
Usage:
1. Adding the Indicator:
- Add the "MicroGaps + ReversalAttempts" indicator to your TradingView chart.
2. Configuring Inputs:
- Micro Gaps: Enable the "Show Micro Gaps" option to visualize gaps.
- Set Parameters: Adjust the parameters for the maximum number of gaps, minimal deviation, and gap trail length.
- Gap Colors: Customize the colors for upward and downward gaps.
- Reversal Attempts: Set colors for the first bullish and bearish reversal attempts.
3. Using the Visuals:
- Micro Gaps: Gaps are displayed as colored boxes on the chart.
- Reversal Attempts: Arrows are plotted above/below the bars to indicate potential reversal attempts after gaps.
- Moving Averages: Configure the lengths and colors of two EMAs and optionally display markers at their crossover points.
- First Hour Box: Enable and customize the first hour high/low range visualization.
4. Alerts:
- Alerts are triggered for the appearance and closure of gaps. Configure these alerts as needed for your trading strategy.
5. First Hour Range:
- The first hour's trading range can be highlighted, providing visual cues about potential support and resistance levels during the session.
This indicator helps traders identify significant market events like micro gaps and reversal attempts, supplemented with moving averages and first-hour range visualization for a comprehensive analysis tool.
Market Structure Targets Model [LuxAlgo]The Market Structure Targets Model indicator provides an algorithmic approach to setting targets from market structure shifts (MSS) and market structure breaks (MSB), two popular Smart Money Concept (SMC) concepts. Depending on the target % settings, they can be used as take profit, confirmation levels, or potential reversal points.
🔶 USAGE
Our Market Structure Targets Model scripts provide automated and customizable targets from MSS and MSB. Each displayed target can be used in several ways described in the sub-sections below:
🔹 Take Profit
The targets can be used as take profit levels, where the target distance can be set separately for bullish/bearish MSS/MSB respectively.
🔹 Confirmation Levels
Alternatively, targets can be used as an additional confirmation level of a trend reversal when set at a lower percentage, filtering out fake signals that might be given from market structures. In this way, targets can be used as potential entry levels.
🔹 Potential Reversal Points
In some circumstances, targets being reached can be indicative of trend reversals. The percentage of the targets would be typically set higher to allow for trend exhaustion.
The above examples highlight this usage for bearish reversal scenarios, while the image below highlights it for bullish reversal scenarios.
🔹 Support/Resistance Levels
The targets, being horizontal levels, can also serve as potential support/resistances, with breakouts potentially confirming new trends. It is important to remain observant of the market structure. An MSS or MSB in the opposite direction provides essential information to be included in future decisions.
Using multiple timeframes can help detect longer-term trends. Depending on the user's preference, they can choose the appropriate timeframe for their needs.
Note that Target lines will only be drawn when the Target Level exceeds the close value when it is drawn.
🔹 Maximum Target Duration
The Maximum Target Duration setting removes unreached target levels when the amount of bars since the associated market structure of that target exceeds the user set limit. This effectively allows the removal of any target that might no longer be relevant to newer trends.
🔹 Type: Switch/Hold
This setting is another way to control unreached target levels.
Switch: When a new MSS/MSB is found, the previous target level associated with a market structure with the same direction (bullish/bearish) is deleted if it hasn't been reached.
Hold: Target levels are retained and continuously evaluated when a new MSS/MSB is formed.
The target level will be removed in both cases when the Maximum Target Duration condition is applied.
The above example shows the case when the Type setting is set to Switch , while in the example below, it is set to Hold .
🔶 DETAILS
🔹 Market Structure
Market structures are commonly classified as follows:
Market Structure Shift (MSS), also referred to as Change of Character (CHoCH)
Market Structure Break (MSB), also referred to as Break of Structure (BOS)
MSS indicates a shift in the market trend, confirming trend reversals. Conversely, MSB occurs once a trend is already determined, confirming new higher highs/lower lows.
🔹 Targets
A: Highest/lowest between the extremities of the MSS/MSB line
B: Price value of the MSS/MSB line
The distance between A and B is projected on the opposite side of the MSS/MSB line, adjusted with a percentage that can be set by the user. The above example used 100% of the distance between A and B.
The Target Percentage of MSS and MSB can be set separately for bullish or bearish market structures.
🔶 SETTINGS
Swings: Period used for the swing detection, with higher values returning longer-term Swing Levels.
Type: the Switch/Hold setting controls unattained target levels
Maximum Target Duration: removes the target lines when the amount of bars since the drawing of the target exceeds the limit and the target has not been reached
🔹 Market Structure Shift (MSS)
Bullish: Toggle, color setting, % Target
Bearish: Toggle, color setting, % Target
🔹 Market Structure Break (MSB)
Bullish: Toggle, color setting, % Target
Bearish: Toggle, color setting, % Target
RSI ATR Range [SS]Hey everyone,
Over the course of the last year I had a bunch of requests to do something with RSI. I did do an RSI expected move plotter, but the requests were to overhaul RSI and make it better I guess.
So here is my attempt!
This is the RSI ATR plotter. Its similar to my RSI expected move plotter, however, it gives you the ATR ranges associated with the current RSI value. This allows you to conceptualize RSI in a different way. Instead of looking for "oversold" over "overbought", you can actually just see the expected high to open range and the expected open to low range based on the current RSI.
This will allow you to determine such things as:
a) Is it likely to be bullish?
b) Is it likely to be bearish?
c) The average move, in a dollar amount, associated with this RSI.
In addition to presenting RSI in terms of ranges as opposed to the actual RSI value, the indicator will also signal likely reversal areas. Whenever there is a huge spike in RSI and range, whether it be up or down, this generally corresponds to an imminent reversal. The indicator is programmed to recognize this and plot little grey circles to notify you of an impending reversal.
Let's take a look at some reversal examples using NVDA:
In the chart above, we can see that the RSI signaled a reversal. As it was part of a downtrend, the reversal was bullish.
Let's look at a top reversal:
The chart above shows a likely downside reversal.
And some little bounce reversals here and there:
In addition to showing you the ATR range and reversals, the indicator will show you the RSI in a bar graph format:
You won't be able to look for RSI divergences, if you are a believer of those. However, you can definitely visualize them in the ATR ranges which are directly affected by the RSI readings.
Aspects of the indicator:
Bull ranges are displayed in green.
Bear ranges are displayed in red.
When green is present we know its entering or currently in a bullish RSI range:
Inversely, when it starts to shift red, we know we are entering a bearish RSI range:
There is a border that circles the range. It will be green when we are in a bullish range and red when we are in a bearish range. In addition to these 2 signals, the RSI bar chart itself will turn green in bullish ranges, and red in bearish ranges.
Here is bullish:
Here is bearish:
Customizability
You can customize the Source input for the RSI (default is close). As well as the length (default is 14).
The ATR length is defaulted to 500. My suggestion is to leave this be. You can increase it but I would not suggest decreasing it as it may omit some of the RSI ranges from its history.
And that is the indicator my friends! Hope you enjoy!
As always, safe trades!
RSI Divergence AlertsIndicator Description: RSI Divergence Alerts
The RSI Divergence indicator is a technical analysis tool that identifies divergences between the Relative Strength Index (RSI) and the price of an asset. The RSI is a momentum indicator that measures the speed and magnitude of recent changes in an asset's price, while divergences occur when there is a disparity between price movements and the RSI.
Indicator Customization:
Overbought and Oversold: The indicator allows you to customize the overbought and oversold levels of the RSI. This allows traders to adjust parameters according to their preferences and the historical behavior of the asset in question.
Indicator Settings and Recommended Adjustments:
Max Bar Distance: This parameter determines the maximum distance allowed between two low or high points for a divergence to be recognized. A higher value may result in more signals, but may also increase the number of false signals. It is recommended to adjust this value based on the volatility of the asset and the time period in which it is being traded.
RSI Length: This is the time period used to calculate the RSI. A longer period smoothes the indicator, while a shorter period makes it more sensitive to price changes. The default value is 14, but traders can adjust it based on their trading strategy and the asset's volatility.
RSI Overbought and Oversold: These values determine the levels at which the RSI is considered overbought and oversold, respectively. The default value for overbought is 75 and for oversold is 35. Traders can adjust these values according to the asset's volatility and its historical analysis. For example, in more volatile assets, it may be useful to use more extreme levels, such as 80 for overbought and 20 for oversold.
When adjusting indicator settings, traders must consider the balance between sensitivity and accuracy. Careful tuning of these parameters can help filter out false signals and identify more reliable trading opportunities.
The alerts functionality in this RSI Divergence indicator is designed to notify traders when a bearish divergence or a bullish divergence is detected. Here's how it works:
Conditionally Triggered Alerts:
Alerts are triggered based on the boolean variables bearishDivergence and bullishDivergence.
If bearishDivergence is true, it indicates that a bearish divergence has been detected.
If bullishDivergence is true, it indicates that a bullish divergence has been detected.
Alert Message:
When a divergence is detected, an alert message is generated to inform the trader about the event.
The message includes details about the divergence, such as the difference in the RSI value between the two points forming the divergence.
For example, for a bearish divergence, the message will include the phrase "Bearish RSI Divergence Detected" and the RSI difference between the high and low points of the divergence.
Alert Frequency:
Alerts are configured to be triggered once per bar close (alert.freq_once_per_bar_close), which means the alert will only be sent once at the close of each bar.
This helps to avoid multiple alerts for the same divergence during the same time period.
Additional Alert Conditions:
In addition to conditionally triggered alert messages, alert conditions are defined for both bearish and bullish divergences.
These alert conditions are useful for configuring custom alerts on trading platforms that support running Pine Script code.
Overall, this alert functionality allows traders to stay informed about potential trading opportunities based on divergences detected by the indicator. This can help traders make faster and more informed decisions in their trading processes.
Session Sweeps [LuxAlgo]The Session Sweeps indicator combines ICT-based features for a complete trading methodology involving market sessions, market structure, and fair value gaps to find optimal entry conditions for trading price action.
Traders frequently tend to place stop/limit orders at the high and low points of major trading sessions such as Asian (Tokyo), European (London), and North American (New York), resulting in the establishment of liquidity pools at those particular levels. The Session Sweeps indicator is crafted to recognize and underscore occurrences of session sweeps or liquidity sweeps during these major trading sessions.
🔶 USAGE
Default settings utilize major forex trading sessions, yet users can select their preferred opening and closing times, rename the sessions, or adjust the colors. It's important to note that the specified times for each session align with the respective local timezones: Asian (Tokyo) UTC+9, European (London) UTC, and North American (New York) UTC-5.
If the price briefly crosses either the highest or lowest point of a market session. These movements, aiming at triggering stop losses, suggest potential shifts in the market direction. Detecting such movements is the fundamental purpose and core functionality of the script.
🔹Market Structure Shifts
A Market Structure Shift refers to a change in market direction, either from an uptrend to a downtrend or vice versa. A part of a common entry model when using session sweeps is waiting for the formation of a CHoCH after a session sweep.
🔹Fair Value Gaps
A Fair Value Gap (FVG) holds particular appeal for price action traders, emerging when there are inefficiencies or imbalances in the market, often a result of uneven buying and selling activity. The underlying concept of FVGs is that the market tends to revisit these inefficiencies before resuming its trajectory in alignment with the initial impulsive move.
After the formation of a CHoCH traders can enter a position when the price enters the area of a Fair Value Gap (FVG).
🔹Setup Examples
This entry setup is commonly used by ICT traders and is shared for informational & educational purposes only.
Long Positions (5-Minute Timeframe):
Wait for the previous session's low to be swept.
Look for a Bullish Choch.
Find a Bullish FVG formed by or before the Choch.
Entry Point: At the FVG.
Take Profit (TP): At the session high or aim for a 1:2 Risk-Reward Ratio.
Stop Loss (SL): At the session low or nearest Swing Low.
Take partial profits at intermediate swings, but don’t shift SL prematurely.
Short Positions (5-Minute Timeframe):
Wait for the previous session's high to be swept.
Look for a Bearish Choch.
Find a FVG formed by or before the Choch.
Entry Point: At the FVG.
Take Profit (TP): At the previous session's low or aim for a 1:2 RR.
Stop Loss (SL): At the session high or nearest Swing High.
Take partial profits at intermediate swings, but don’t shift SL prematurely.
🔶 SETTINGS
🔹Session Sweeps
Buyside Sweep Zones, Color, and Margin: toggles the visibility of bullside sweep zones, customizes the associated color, and sets the margin value defining the range of a bullside sweep zone.
Sellside Sweep Zones, Color, and Margin: toggles the visibility of sell-side sweep zones, customizes the associated color, and sets the margin value defining the range of a sell-side sweep zone.
Sweep Margin Length: specifies the maximum allowed length of a sweep zone invalidation, the length over which the price slightly invalidated the margin range.
Detect Sweeps Once per Session: if enabled will detect only once a sweep zone within a session.
Hide Fake Sweep Zones, and Color: controls the visibility and color of the fake sweep zones.
🔹Sessions
Session (Asia, London, New York AM, and New York PM), Start Time, and End Time: enables or disables the visibility of the named market session range, and customization of the session hours.
Color: color customization option of the named session.
Extend Max/Min: extends the highest and lowest price levels of the named session until the end of the next enabled session. This option is recommended to be enabled when sweep zone detection is activated to observe the relationship between the sweep zone and previous session extreme levels.
Extend Mid: extends the mean price levels of the named session until the end of the next enabled session. The extended line may serve as potential support and resistance levels.
Fill: enables/disables background coloring of the named session.
New York DST | London DST: enabling this option initiates Daylight Saving Time (DST) for New York or London. Note: Daylight Saving Time is not applied to the Asian (Tokyo) session.
Sessions Extreme Lines | Sessions Names: toggles the visibility of the highest and lowest price levels, as well as the names, for all market sessions.
Session Lines Width: sets the width of the lines for all sessions.
Session Fill Transparency: sets the background color transparency of the range for all sessions.
🔹Market Structure Shifts
Market Structure Shifts: toggles the visibility of market structure shifts, also known as change of character (CHoCH).
Detection Length: specifies the detection length.
Market Structure Shifts; Bull & Bear: color customization options.
🔹Fair Value Gaps
Fair Value Gaps: toggles the visibility of the fair value gaps.
Fair Value Gap Width Filter: specifies the filtering multiplier; additional details can be found in the tooltip of the respective input option.
Bullish & Bearish Imbalance: color customization options.
🔹Sessions Tabular View
Sessions Tabular View: toggles the visibility of the tabular view of the sessions, displaying date &time, status, and countdown counter.
Hide if not Forex Market Instrument: checks the market and automatically enables/disables the option based on the market instrument.
Table Text Size & Position: size and placement customization options
🔶 LIMITATIONS
Please be aware that fair value gap filtering cannot be applied to the initial 144 candles (with a fixed-length ATR) as the ATR value necessary for filtering won't be available during this period.
🔶 RELATED SCRIPTS
Buyside-Sellside-Liquidity
Sessions
Liquidity-Voids-FVG
Thank you to our community for the recommendation of this script. To explore additional conceptual scripts and related content, we invite you to visit >>> LuxAlgo-Scripts .
Fibonacci internal Break of Range PinescriptlabsThe uniqueness of this script lies in the synergy and dynamic interaction resulting from the advanced combination of key elements of technical analysis in the way it strategically merges Fibonacci Levels with the Linear Regression Channel and the internal price structure, creating a highly synergistic market analysis system.
The Linear Regression Channel, drawn from price regression and its standard deviation over a defined number of bars, offers a graphical representation of the prevailing market trend. The combination of this channel with Fibonacci Levels is deliberate and critical: the levels serve as additional filters to validate range breakouts within the channel, and vice versa, channel breakouts enhance the importance of Fibonacci levels by adjusting to the market context, represented by the specific length and displacement within the chart.
Fibonacci levels are updated with each new bar, and the detection of Break of Range (BoR) is integrated with the Fibonacci level plot to highlight significant breakout points. A unique aspect of this script is the way breakouts are identified not only by the price crossing certain Fibonacci levels but also by volume context and candlestick patterns, such as Engulfing patterns, which signal potential changes in market trends.
This interaction between the Linear Regression Channel and Fibonacci Levels, for example, a bullish price breakout above the upper channel boundary simultaneously crossing a significant Fibonacci level, suggests not only a possible continuation of the uptrend but also a strong support level established. Similarly, a bearish price breakout below the lower channel boundary, coinciding with a Fibonacci level, may signal a trend reversal confirmation and a new resistance level.
This script delves further into signal convergence, where the interaction between Break of Range and Fibonacci levels marks bullish and bearish breakouts, respectively, and when these signals coincide with breakouts of any Fibonacci level, they provide cross-confirmation that increases confidence in the generated signal. "BoR+Fib🔼" and "BoR+Fib🔽."
Additionally, the script introduces an innovative implementation of the Linear Regression Channel, which uses a customizable period and standard deviation to plot upper and lower trendlines. This approach allows traders to anticipate potential re-entry points after a breakout, as prices often retest the channel edges, providing low and high entry confirmation opportunities.
A differentiating technical aspect is the conditional logic implemented for bullish and bearish trend signal confirmation. For example, the script calibrates signals based on the intersection of price action with critical Fibonacci levels and confirmed candlestick patterns, enhancing signal reliability compared to using these indicators in isolation.
Key Features:
1. Dynamic calculation of Fibonacci levels.
2. Detection of internal price range breakouts (Break of Range).
3. Linear Regression Channel.
4. Detection of candlestick patterns (Engulfing Patterns).
Dynamic Fibonacci Level Calculation and Internal Range Breakout Detection (Break of Range):
The fusion of Fibonacci levels with the detection of internal range breakouts is crucial because it allows for precise identification of market turning points. Fibonacci levels act as initial filters, indicating potential support and resistance zones. When the price crosses a key Fibonacci level, especially in conjunction with an internal range breakout, the resulting signal is stronger and more reliable. This confluence significantly increases the probability of sustainable price movement.
Broken:
Function: The code identifies breakouts when the price crosses a key Fibonacci level (0%, 100%). A breakout is significant if the price crosses and holds beyond these levels.
Interaction: Breakouts validate Fibonacci levels. For example, a breakout above the 0% Fibonacci level can confirm an uptrend.
Structure Change:
Function: In the code, Structure Change can be interpreted through the detection of pivot patterns and price structure change signals, which we identify as Break of Range.
Interaction: This component acts as confirmation for range breakouts and Fibonacci levels. For example, if a range breakout is followed by a change in price structure (such as the formation of a new higher high), it strengthens the validity of the range breakout signal.
"BoR+Fib🔽": Indicates a bearish range breakout that has also crossed a Fibonacci level downward. This can be interpreted as a sell signal or a bearish trend indication.
"BoR+Fib🔼": Represents a bullish range breakout that has also crossed a Fibonacci level upward. It can be interpreted as a buy signal or a bullish trend indication.
Linear Regression Channel:
Function: The Linear Regression Channel is calculated and drawn using a defined number of bars to establish the overall market trend. Calculations involve summing and averaging closing prices and their products with the time index to calculate the regression line and its standard deviation. The script uses this channel to contextualize Fibonacci signals and range breakouts, with breakouts occurring in the direction of the channel's trend.
Interaction: Provides context to Fibonacci signals and range breakouts. For example, if a range breakout occurs in the same direction as indicated by the Linear Regression Channel, this adds credibility to the signal.
Integration Benefit: The Linear Regression Channel provides an overall trend context. When a range breakout signal and a Fibonacci level coincide within the direction indicated by the channel, the signal's validity is strengthened.
Signal Convergence: An ideal scenario occurs when all elements converge. For example, a good entry point could be when the price experiences a range breakout from a significant Fibonacci level, there is a change in price structure in the same direction, and all of this aligns with the trend indicated by the Linear Regression Channel.
Dynamic Volatility Visualization: Adjusts the width of the Linear Regression Channel based on market volatility.
Validation and Entry Confirmation after Linear Regression Channel Breakout:
Breakout Validation: The Linear Regression Channel breakout is validated not only by price crossing but also by an increase in volume, suggesting a significant breakout rather than a temporary fluctuation.
Entry Confirmation ('Low and High Entry Confirmation'):
Confirmation Bars: A specific number of bars (configurable entry) closing outside the channel are required to confirm an entry. This reduces the risk of false signals.
Channel Re-Test: After the breakout, the price often retests the channel's edge. An entry is confirmed if the price bounces from this area, validating the initial breakout.
Auxiliary Indicators: Oscillators or momentum indicators are used to confirm trend strength after the breakout.
Candlestick Pattern Detection (Engulfing Patterns):
Engulfing Pattern Identification: bullishEngulfing is activated in a bullish pattern with a previous bearish trend and a specific bullish candle. bearishEngulfing is activated in a bearish pattern with a previous bullish trend and a specific bearish candle.
Special Trend Signals:
Bullish signals are displayed as blue circles with "⬆️," while bearish signals are displayed as red circles with "⬇️."
Bullish Signals: Indicate that the price has crossed above certain Fibonacci levels, and the current trend is considered bullish, as the most recent closing price is higher than the closing price of a specific bar in the past.
Bearish Signals: Indicate that the price has crossed below certain Fibonacci levels, and the current trend is considered bearish, as the most recent closing price is lower than the closing price of a specific bar in the past.
Integration with 3Commas for Automation:
Signal Automation: The ability to integrate with platforms like 3Commas allows for the automatic execution of
strategies based on the script's signals, where a bot could execute trades based on the chart-generated signals, facilitating more efficient trading, reducing reaction time, and as an automated script, we only need to input our short Bot Id or our Long Bot ID into the previously loaded message alert.
Español:
La singularidad de este script radica en la sinergia y la interacción dinámica que resulta de la combinación avanzada de elementos clave del análisis técnico en la forma en que fusiona estratégicamente los Niveles de Fibonacci con el Canal de Regresión Lineal y la estructura interna del precio creando un sistema de análisis de mercado altamente sinérgico.
El Canal de Regresión Lineal, dibujado a partir de la regresión de precios y su desviación estándar sobre un número definido de barras, ofrece una representación gráfica de la tendencia predominante del mercado. La combinación de este canal con los Niveles de Fibonacci es deliberada y crítica: los niveles sirven como filtros adicionales para validar las rupturas de rango dentro del canal, y viceversa, las rupturas del canal potencian la importancia de los niveles de Fibonacci ajustándose al contexto del mercado, representado por la longitud y desplazamiento específicos dentro del gráfico.
Los niveles de Fibonacci se actualizan con cada nueva barra, La detección de rupturas de rango (Break of Range) se integra con la trama de niveles de Fibonacci para destacar los puntos de ruptura significativos. Un enfoque único de este script es la manera en que las rupturas no solo se identifican por el cruce de precios de ciertos niveles de Fibonacci sino también por el contexto de volumen y patrones de velas, como los patrones Engulfing, que señalan cambios potenciales en la tendencia del mercado.
Esta interacción entre el Canal de Regresión Lineal y los Niveles de Fibonacci Por ejemplo: una ruptura alcista del precio a través del límite superior del canal al mismo tiempo que cruza un nivel de Fibonacci significativo sugiere no solo una posible continuación de la tendencia alcista sino también un fuerte nivel de soporte establecido. Similarmente, una ruptura bajista del precio a través del límite inferior del canal, coincidiendo con un nivel de Fibonacci, puede señalar una confirmación de cambio de tendencia y un nuevo nivel de resistencia.
Este script profundiza aún más en la confluencia de señales, donde la interacción entre Break of Range y los niveles de Fibonacci marcan rupturas alcistas y bajistas respectivamente, y cuando estas señales coinciden con rupturas del de cualquier nivel de Fibonacci, proporcionan una confirmación cruzada que aumenta la confianza en la señal generada. "BoR+Fib🔼" y "BoR+Fib🔽"
Además, el script presenta una innovadora implementación de Canal de Regresión Lineal, que utiliza un periodo personalizable y una desviación estándar para trazar las líneas de tendencia superior e inferior. Este enfoque permite a los traders anticipar posibles puntos de reentrada después de una ruptura, con el precio a menudo retestando los bordes del canal, proporcionando así oportunidades de confirmación de entrada baja y alta.
Un aspecto técnico diferenciador es la lógica condicional implementada para la confirmación de señales de tendencia alcista y bajista. Por ejemplo, el script calibra señales basadas en la intersección de la acción del precio con los niveles críticos de Fibonacci y los patrones de velas confirmados, mejorando la confiabilidad de las señales en comparación con el uso de estos indicadores de forma aislada.
Características Principales:
1. Cálculo dinámico de niveles de Fibonacci.
2. Detección de rupturas internas del rango de precios (Break of Range).
3. Canal de regresión lineal.
4. Detección de patrones de velas (Patrones Engulfing).
Cálculo Dinámico de Niveles de Fibonacci y Detección de Rupturas Internas (Break of Range):
La fusión de los niveles de Fibonacci con la detección de rupturas internas del rango es crucial porque permite identificar con precisión los puntos de inflexión del mercado. Los niveles de Fibonacci funcionan como filtros iniciales, indicando potenciales zonas de soporte y resistencia. Cuando el precio cruza un nivel clave de Fibonacci, especialmente en conjunto con una ruptura interna del rango, la señal resultante es más robusta y fiable. Esta confluencia incrementa significativamente la probabilidad de que el movimiento del precio sea sostenible
Broken:
Función: El código identifica las rupturas cuando el precio cruza un nivel de Fibonacci clave (0%, 100%). Una ruptura es significativa si el precio cruza y se mantiene más allá de estos niveles.
Interacción: Las rupturas validan los niveles de Fibonacci. Por ejemplo, una ruptura por encima del nivel de Fibonacci del 0% puede confirmar una tendencia alcista.
Cambio de Estructura:
Función: En el código, el Cambio de Estructura se puede interpretar a través de la detección de patrones de pivote y señales de cambio en la estructura de precios, que identificamos como Break of Range.
Interacción: Este componente actúa como una confirmación de las rupturas de rango y los niveles de Fibonacci. Por ejemplo, si una ruptura de rango es seguida por un cambio en la estructura de precios (como la formación de un nuevo máximo más alto), esto refuerza la validez de la señal de ruptura de rango.
"BoR+Fib🔽": Indica una ruptura bajista del rango que también ha cruzado un nivel de Fibonacci hacia abajo. Esto puede interpretarse como una señal de venta o una indicación de tendencia bajista.
"BoR+Fib🔼": Representa una ruptura alcista del rango que también ha cruzado un nivel de Fibonacci hacia arriba. Puede interpretarse como una señal de compra o una indicación de tendencia alcista.
Canal de Regresión Lineal:
Función: El Canal de Regresión Lineal se calcula y dibuja utilizando un número definido de barras para establecer la tendencia general del mercado. Los cálculos involucran la suma y el promedio de los precios de cierre y sus productos con el índice de tiempo, para calcular la línea de regresión y su desviación estándar, el script utiliza este canal para contextualizar las señales de Fibonacci y las rupturas de rango, con rupturas que ocurren en la dirección de la tendencia del canal.
Interacción: Proporciona contexto a las señales de Fibonacci y rupturas de rango. Por ejemplo, si una ruptura de rango ocurre en la misma dirección que la tendencia indicada por el Canal de Regresión Lineal, esto añade credibilidad a la señal.
Beneficio de la Integración:El Canal de Regresión Lineal proporciona un contexto de tendencia general. Cuando una señal de ruptura de rango y un nivel de Fibonacci coinciden dentro de la dirección de la tendencia indicada por el canal, se fortalece la validez de la señal.
Convergencia de Señales: Un escenario ideal ocurre cuando todos los elementos convergen. Por ejemplo, un buen punto de entrada podría ser cuando el precio experimenta una ruptura de rango desde un nivel de Fibonacci importante, hay un cambio de estructura en la misma dirección, y todo esto ocurre en línea con la tendencia indicada por el Canal de Regresión Lineal.
Visualización de Volatilidad Dinámica: Ajusta el ancho del canal de regresión lineal en función de la volatilidad del mercado.
Validación y Confirmación de la Entrada después de la Ruptura del Canal de Regresión:
Confirmación de Ruptura: La ruptura del canal de regresión se valida no solo por el cruce del precio, sino también por un aumento en el volumen, lo que sugiere una ruptura significativa en lugar de una fluctuación temporal.
Confirmación de Entrada ('Confirmación de Entrada Baja y Alta'):
Barras de Confirmación: Se requiere un número específico de barras (entrada configurable) que cierren fuera del canal para confirmar una entrada. Esto reduce el riesgo de señales falsas.
Re-Test del Canal: Después de la ruptura, el precio a menudo vuelve a probar el borde del canal. Una entrada se confirma si el precio rebota desde esta área, validando la ruptura inicial.
Indicadores Auxiliares: Se utilizan osciladores o indicadores de impulso para confirmar la fuerza de la tendencia después de la ruptura.
Detección de Patrones de Velas (Patrones Engulfing):
Identificación de Patrones Engulfing: bullishEngulfing se activa en un patrón alcista con una tendencia bajista previa y una vela alcista específica. bearishEngulfing se activa en un patrón bajista con una tendencia alcista previa y una vela bajista específica.
Señales Especiales de Tendencia:
Las señales alcistas se muestran como círculos azules con "⬆️", mientras que las señales bajistas se muestran como círculos rojos "⬇️".
Señales Alcistas: Indican que el precio ha cruzado por encima de ciertos niveles de Fibonacci y la tendencia actual se considera alcista, ya que el precio de cierre más reciente es mayor que el precio de cierre de una barra específica en el pasado.
Señales Bajistas: Indican que el precio ha cruzado por debajo de ciertos niveles de Fibonacci y la tendencia actual se considera bajista, ya que el precio de cierre más reciente es menor que el precio de cierre de una barra específica en el pasado.
Integración con 3Commas para Automatización:
Automatización de Señales: La capacidad de integrar con plataformas como 3Commas permite la ejecución automática de estrategias basadas en las señales del script donde un bot podría ejecutar operaciones basadas en las señales generadas por el gráfico., facilitando un trading más eficiente y reduciendo el tiempo de reacción y como un script automatizado solo necesitamos poner en la alerta del mensaje previamente cargado nuestro short Bot Id o nuestro Long Bot ID.
MACD-all in one_Pro[vn]👉 Hello traders.
Introducing the "MACD-All-in-One" indicator including functions:
• Automatically scan MACD-Histogram divergence
• Automatically scan MACD-Histogram divergence-missing right shoulder
• Automatically scan the Engulfing candlestick pattern when the MACD line crosses the Signal line
• Automatically create warnings when there are signals of Regular divergence, missing right shoulder divergence, Engulfing candlestick pattern
Explain:
💥1. Regular divergence
1.1 Bullish divergence
+ The price creates the next bottom lower than the previous bottom
+ The histogram of the next bottom is higher than the previous bottom and is located below the 0 axis (between the two histogram bottoms there must be a histogram located on the 0 axis for clear distinction)(Hình 1)👇👇
1.2 Bearish divergence
+ The price creates a higher peak than the previous peak
+ The histogram of the next bottom is lower than the previous bottom and is above the 0 axis (between the two histogram peaks there must be a histogram below the 0 axis for clear distinction)(Hình 2)👇👇
💥2. Divergence lacking right shoulder
2.1 Bullish divergence missing the right shoulder
+ The price creates the next bottom lower than the previous bottom
+ The histogram of the posterior bottom does not form and the histogram is still above the zero line (only the histogram of the previous bottom is below the zero line)
+ The meaning is that when the price creates a lower bottom but the buying force is already very strong, the histogram of the next bottom does not form and the price will increase(hình 3&4)👇👇
2.2 Bearish divergence missing the right shoulder
+ The price creates a higher peak than the previous peak
+ The histogram of the next peak does not form and the histogram is still below the zero line (only the histogram of the previous peak is on the zero line)
+ The meaning is that when the price creates a higher peak but the buying force has weakened, the histogram of the next bottom does not form and the price will go down.(hình 5 & 6)👇👇
💥3. Engulfing candlestick pattern
When the MACD and Signal lines intersect and there appears a pair of engulfing (completely) candlesticks, that candlestick will be marked as 'E⌃' in green (bullish engulfing) or 'E⌄' in red (Bearish engulfing)(hình 7 & 8)👇👇
💥4. Automatic alerts include 5 levels: Bull, Bear, Bullish Engulfing, Bearish Engulfing, bullish divergence missing the shoulder, bearish divergence missing the shoulder
//-------------------------Extra feature: Impulse System
This indicator also includes the “Impulse System”. The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram, and identifies inflection points where a trend speeds up or slows down. The moving average identifies the trend, while the MACD-Histogram measures momentum. This unique indicator combination is color coded into the price bars or macd histogram bars for easy reference.
Calculation:
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Histogram bars are colored blue when conditions for a Red Histogram Bar or Green Histogram Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
The Impulse System works more like a censorship system. Green histogram bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising (you don't have permission to sell). A red histogram bar indicates that the bears have taken control because the 13-day EMA and MACD Histogram are falling (you don't have permission to buy). A blue histogram bar indicates mixed technical signals, with neither buying nor selling pressure predominating (either both buying or selling are permitted).
-------------------------------//
💥5. Additional:
+Shows a pair of EMA12 vs EMA24.
+Shows Keltner Channels (using ATR) are volatility-based envelopes set above and below an exponential moving average.
//-------------------------------------------------------------------------------------------------------------//
✍️Conclude:
From this indicator there are 3 ways to trade:
• Method 1: Enter an order following the automatic Bull or Bear signal when the indicator appears
• Method 2: Enter an order following the automatic signal of the green vertical line (Long) or the red vertical line (Short) when the indicator appears
• Method 3: Enter orders according to the pair of engulfing candles 'E⌃' or 'E⌄' (because this is a combination of the method of engulfing candles and 2 MA lines intersecting each other)
• From this indicator, I created a "bot" that scans for "right shoulder missing divergence" signals for 40 trading pairs at the same time in real time. (hình 9)👇👇👇
//---------------------------------------------------------------------------------------------------------------
👉 Xin chào trader Việt Nam.
Giới thiệu chỉ báo "MACD-Tất cả trong một " bao gồm các chức năng:
• Tự động quét phân kì MACD-Histogram
• Tự động quét phân kì MACD-Histogram-thiếu vai phải
• Tự động quét mô hình nến nhấn chìm(Engulfing) khi đường MACD cắt đường Signal
• Tự động tạo cảnh báo khi có tín hiệu phân kì thường(Regular) , phân kì thiếu vai phải, mô hình nến Engulfing
Diễn giải:
💥1. Phân kì thường
1.1 Phân kì tăng
+ Giá tạo đáy sau thấp hơn đáy trước
+ Histogram của đáy sau cao hơn đáy trước và nằm bên dưới trục số 0(giữa hai đáy histogram phải có histogram nằm trên trục số 0 để phân biệt rõ ràng)(Hình 1 bên trên)☝️☝️
1.2 Phân kì giảm
+ Giá tạo đỉnh sau cao hơn đỉnh trước
+ Histogram của đáy sau thấp hơn đáy trước và nằm trên trên trục số 0(giữa hai đỉnh histogram phải có histogram nằm dưới trục số 0 để phân biệt rõ ràng)(Hình 2 bên trên)☝️☝️
💥2. Phân kì thiếu vai phải
2.1 Phân kì tăng thiếu vai phải
+ Giá tạo đáy sau thấp hơn đáy trước
+ Histogram của đáy sau không hình thành và histogram vẫn nằm bên trên trục số 0(chỉ có histogram của đáy trước dưới trục số 0)
+ Ý nghĩa rằng khi giá tạo đáy sau thấp hơn nhưng lực mua đã rất mạnh làm cho histogram đáy sau không hình thành và giá sẽ tăng lên(Hình 3 vs 4 bên trên)☝️☝️
2.2 Phân kì giảm thiếu vai phải
+ Giá tạo đỉnh sau cao hơn đỉnh trước
+ Histogram của đỉnh sau không hình thành và histogram vẫn nằm bên dưới trục số 0(chỉ có histogram của đỉnh trước trên trục số 0)
+ Ý nghĩa rằng khi giá tạo đỉnh sau cao hơn nhưng lực mua đã yếu dần làm cho histogram đáy sau không hình thành và giá sẽ đi xuống(Hình 5 vs 6 bên trên)☝️☝️
💥3.mô hình nến nhấn chìm
Khi hai đường MACD và Signal cắt nhau mà tại đó xuất hiện cặp nến nhấn chìm (hoàn toàn) thì trên thanh nến đó sẽ đánh dấu là 'E⌃' màu xanh (nhấn chìm tăng) hay 'E⌄' màu đỏ(nhấn chìm giảm)(Hình 7 vs 8 bên trên)☝️☝️
💥4. Cảnh báo tự động bao gồm có 5 mức : Bull, Bear, Bullish Engulfing, Bearish Engulfing, phân kì tăng thiếu vai, phân kì giảm thiếu vai
//--------------------Tính năng bổ sung: Hệ thống Impulse(xung)
Chỉ báo này cũng bao gồm “Hệ thống xung”. Hệ thống Impulse dựa trên hai chỉ báo, đường trung bình động hàm mũ EMA13 và Biểu đồ MACD, đồng thời xác định các điểm uốn trong đó xu hướng tăng tốc hoặc chậm lại. Đường trung bình động xác định xu hướng, trong khi biểu đồ MACD đo động lượng. Sự kết hợp chỉ báo độc đáo này được sơn thanh biểu đồ macd-histogram để dễ tham khảo.
Phép tính:
Thanh giá xanh lá : (EMA13 kỳ > EMA 13 kỳ trước đó) và (histogram sau > histogram trước)
Thanh giá màu đỏ: (EMA13 kỳ < EMA 13 kỳ trước đó) và (histogram sau < histogram trước)
Thanh biểu đồ có màu xanh lam khi các điều kiện cho histogram màu đỏ hoặc histogram màu xanh lá không được đáp ứng. Biểu đồ MACD dựa trên MACD(12,26,9).
Lưu ý: Hệ thống Impulse hoạt động giống một hệ thống kiểm duyệt hơn. Các thanh biểu đồ màu xanh lá cho thấy phe bò đang kiểm soát cả xu hướng và động lượng vì cả EMA13 và MACD-Histogram đều tăng (bạn không được phép bán). Thanh biểu đồ màu đỏ cho biết phe gấu đã nắm quyền kiểm soát vì biểu đồ EMA13 và MACD histogram đang giảm (bạn không được phép mua). Thanh biểu đồ màu xanh lam biểu thị các tín hiệu kỹ thuật hỗn hợp, không có áp lực mua và bán chiếm ưu thế (cho phép cả mua hoặc bán).
-------------------------//
💥5. Bổ sung:
+ Hiển thị một cặp EMA12 vs EMA24.
+ Hiển thị Kênh Keltner (sử dụng ATR) là các đường bao dựa trên mức độ biến động được đặt ở trên và dưới đường trung bình động hàm mũ.
//----------------------------------------------------------------------------------------------------------------//
✍️Kết luận:
Từ chỉ báo này có 3 cách giao dịch:
• Cách 1: Vào lệnh theo tín hiệu tự động Bull hoặc Bear khi chỉ báo hiện ra
• Cách 2: Vào lệnh theo tín hiệu tự động đường dọc xanh(Long) hoặc đường dọc đỏ(Short) khi chỉ báo hiện ra
• Cách 3: Vào lệnh theo cặp nến nhấn chìm 'E⌃' hay 'E⌄'(vì đây là tổng hợp từ phương pháp của nến nhấn chìm và 2 đường MA cắt nhau)
• Từ chỉ báo này tôi có lập nên "con bot" quét tín hiệu "phân kì thiếu vai phải " cùng lúc 40 cặp giao dịch theo thời gian thực. (Hình 9 bên trên)☝️☝️☝️
Market Internals (TICK, ADD, VOLD, TRIN, VIX)OVERVIEW
This script allows you to perform data transformations on Market Internals, across exchanges, and specify signal parameters, to more easily identify sentiment extremes.
Notable transformations include:
1. Cumulative session values
2. Directional bull-bear Ratios and Percent Differences
3. Data Normalization
4. Noise Reduction
This kind of data interaction is very useful for understanding the relationship between two mutually exclusive metrics, which is the essence of Market Internals: Up vs. Down. Even so, they are not possible with symbol expressions alone. And the kind of symbol expression needed to produce baseline data that can be reliably transformed is opaque to most traders, made worse by the fact that prerequisite symbol expressions themselves are not uniform across symbols. It's very nuanced, and if this last bit was confusing … exactly.
All this to say, rather than forcing that burden onto you, I've baked the baseline symbol expressions into the indicator so: 1) the transform functions consistently ingest the baseline data in the correct format and 2) you don't have to spend time trying to figure it all out. Trading is hard. There's no need to make it harder.
INPUTS
Indicator
Allows you to specify the base Market Internal and Exchange data to use. The list of Market Internals is simplified to their fundamental representation (TICK, ADD, VOLD, TRIN, VIX, ABVD, TKCD), and the list of Exchange data is limited to the most common (NYSE, NASDAQ, All US Stocks). There are also options for basic exchange combinations (Sum or Average of NYSE & NASDAQ).
Mode
Short for "Plot Mode", this is where you specify the bars style (Candles, Bars, Line, Circles, Columns) and the source value (used for single value plots and plot color changes).
Scale
This is the first and second data transformation grouped together. The default is to show the origin data as it might appear on a chart. You can then specify if each bar should retain it's unique value (Bar Value) or be added to a running total (Cumulative). You can also specify if you would like the data to remain unaltered (Raw) or converted to a directional ratio (Ratio) or a percentage (Percent Diff). These options determine the scale of the plot.
Both Ratio and Percent Diff. convert a given symbol into a positive or negative number, where positive numbers are bullish and negative numbers are bearish.
Ratio will divide Bull values by Bear values, then further divide -1 by the quotient if it is less than 1. For example, if "0.5" was the quotient, the Ratio would be "-2".
Percent Diff. subtracts Bear values from Bull values, then divides that difference by the sum of Bull and Bear values multiplied by 100. If a Bull value was "3" and Bear value was "7", the difference would be "-4", the sum would be "10", and the Percent Diff. would be "-40", as the difference is both bearish and 40% of total.
Ratio Norm. Threshold
This is the third data transformation . While quotients can be less than 1, directional ratios are never less than 1. This can lead to barcode-like artifacts as plots transition between positive and negative values, visually suggesting the change is much larger than it actually is. Normalizing the data can resolve this artifact, but undermines the utility of ratios. If, however, only some of the data is normalized, the artifact can be resolved without jeopardizing its contextual usefulness.
The utility of ratios is how quickly they communicate proportional differences. For example, if one side is twice as big as the other, "2" communicates this efficiently. This necessarily means the numerical value of ratios is worth preserving. Also, below a certain threshold, the utility of ratios is diminished. For example, an equal distribution being represented as 0, 1, 1:1, 50/50, etc. are all equally useful. Thus, there is a threshold, above which we want values to be exact, and below which the utility of linear visual continuity is more important. This setting accounts for that threshold.
When this setting is enabled, a ratio will be normalized to 0 when 1:1, scaled linearly toward the specified threshold when greater than 1:1, and then retain its exact value when the threshold is crossed. For example, with a threshold of "2", 1:1 = 0, 1.5:1 = 1, 2:1 = 2, 3:1 = 3, etc.
With all this in mind, most traders will want to set the ratios threshold at a level where accuracy becomes more important than visual continuity. If this level is unknown, "2" is a good baseline.
Reset cumulative total with each new session
Cumulative totals can be retained indefinitely or be reset each session. When enabled, each session has its own cumulative total. When disabled, the cumulative total is maintained indefinitely.
Show Signal Ranges
Because everything in this script is designed to make identifying sentiment extremes easier, an obvious inclusion would be to not only display ranges that are considered extreme for each Market Internal, but to also change the color of the plot when it is within, or beyond, that range. That is exactly what this setting does.
Override Max & Min
While the min-max signal levels have reasonable defaults for each symbol and transformation type, the Override Max and Override Min options allow you to … (wait for it) … override the max … and min … signal levels. This may be useful should you find a different level to be more suitable for your exact configuration.
Reduce Noise
This is the fourth data transformation . While the previous Ratio Norm. Threshold linearly stretches values between a threshold and 0, this setting will exponentially squash values closer to 0 if below the lower signal level.
The purpose of this is to compress data below the signal range, then amplify it as it approaches the signal level. If we are trying to identify extremes (the signal), minimizing values that are not extreme (the noise) can help us visually focus on what matters.
Always keep both signal zones visible
Some traders like to zoom in close to the bars. Others prefer to keep a wider focus. For those that like to zoom in, if both signals were always visible, the bar values can appear squashed and difficult to discern. For those that keep a wider focus, if both signals were not always visible, it's possible to lose context if a signal zone is vertically beyond the pane. This setting allows you to decide which scenario is best for you.
Plot Colors
These define the default color, within signal color, and beyond signal color for Bullish and Bearish directions.
Plot colors should be relative to zero
When enabled, the plot will inherit Bullish colors when above zero and Bearish colors when below zero. When disabled and Directional Colors are enabled (below), the plot will inherit the default Bullish color when rising, and the default Bearish color when falling. Otherwise, the plot will use the default Bullish color for all directions.
Directional colors
When the plot colors should be relative to zero (above), this changes the opacity of a bars color if moving toward zero, where "100" percent is the full value of the original color and "0" is transparent. When the plot colors are NOT relative to zero, the plot will inherit Bullish colors when rising and Bearish colors when falling.
Differentiate RTH from ETH
Market Internal data is typically only available during regular trading hours. When this setting is enabled, the background color of the indicator will change as a reminder that data is not available outside regular trading hours (RTH), if the chart is showing electronic trading hours (ETH).
Show zero line
Similar to always keeping signal zones visible (further up), some traders prefer zooming in while others prefer a wider context. This setting allows you to specify the visibility of the zero line to best suit your trading style.
Linear Regression
Polynomial regressions are great for capturing non-linear patterns in data. TradingView offers a "linear regression curve", which this script is using as a substitute. If you're unfamiliar with either term, think of this like a better moving average.
Symbol
While the Market Internal symbol will display in the status line of the indicator, the status line can be small and require more than a quick glance to read properly. Enabling this setting allows you to specify if / where / how the symbol should display on the indicator to make distinguishing between Market Internals more efficient.
Speaking of symbols, this indicator is designed for, and limited to, the following …
TICK - The TICK subtracts the total number of stocks making a downtick from the total number of stocks making an uptick.
ADD - The Advance Decline Difference subtracts the total number of stocks below yesterdays close from the total number of stocks above yesterdays close.
VOLD - The Volume Difference subtracts the total declining volume from the total advancing volume.
TRIN - The Arms Index (aka. Trading Index) divides the ratio of Advancing Stocks / Volume by the ratio of Declining Stocks / Volume. Given the inverse correlation of this index to market movement, when transforming it to a Ratio or Percent Diff., its values are inverted to preserve the bull-bear sentiment of the transformations.
VIX - The CBOE Volatility Index is derived from SPX index option prices, generating a 30-day forward projection of volatility. Given the inverse correlation of this index to market movement, when transforming it to a Ratio or Percent Diff., its values are inverted and normalized to the sessions first bar to preserve the bull-bear sentiment of the transformations. Note: If you do not have a Cboe CGIF subscription , VIX data will be delayed and plot unexpectedly.
ABVD - The Above VWAP Difference is an unofficial index measuring all stocks above VWAP as a percent difference. For the purposes of this indicator (and brevity), TradingViews PCTABOVEVWAP has has been shortened to simply be ABVD.
TKCD - The Tick Cumulative Difference is an unofficial index that subtracts the total number of market downticks from the total number of market upticks. Where "the TICK" (further up) is a measurement of stocks ticking up and down, TKCD is a measurement of the ticks themselves. For the purposes of this indicator (and brevity), TradingViews UPTKS and DNTKS symbols have been shorted to simply be TKCD.
INSPIRATION
I recently made an indicator automatically identifying / drawing daily percentage levels , based on 4 assumptions. One of these assumptions is about trend days. While trend days do not represent the majority of days, they can have big moves worth understanding, for both capitalization and risk mitigation.
To this end, I discovered:
• Article by Linda Bradford Raschke about Capturing Trend Days.
• Video of Garrett Drinon about Trend Day Trading.
• Videos of Ryan Trost about How To Use ADD and TICK.
• Article by Jason Ruchel about Overview of Key Market Internals.
• Including links to resources outside of TradingView violates the House Rules, but they're not hard to find, if interested.
These discoveries inspired me adopt the underlying symbols in my own trading. I also found myself wanting to make using them easier, the net result being this script.
While coding everything, I also discovered a few symbols I believe warrant serious consideration. Specifically the Percent Above VWAP symbols and the Up Ticks / Down Ticks symbols (referenced as ABVD and TKCD in this indicator, for brevity). I found transforming ABVD or TKCD into a Ratio or Percent Diff. to be an incredibly useful and worthy inclusion.
ABVD is a Market Breadth cousin to Brian Shannon's work, and TKCD is like the 3rd dimension of the TICKs geometry. Enjoy.
MACDh with divergences & impulse system (overlayed on prices)-----------------------------------------------------------------
General Description:
This indicator ( the one on the top panel above ) consists on some lines, arrows and labels drawn over the price bars/candles indicating the detection of regular divergences between price and the classic MACD histogram (shown on the low panel). This script is special because it can be adjusted to fit several criteria when trading divergences filtering them according to the "height" and "width" of the patterns. The script also includes the "extra features" Impulse System and Keltner Channels, which you will hardly find anywhere else in similar classic MACD histogram divergence indicators.
The indicator helps to find trend reversals, and it works on any market, any instrument, any timeframe, and any market condition (except against really strong trends that do not show any other sign of reversion yet).
Please take on consideration that divergences should be taken with caution.
-----------------------------------------------------------------
Definition of classic Bullish and Bearish divergences:
* Bearish divergences occur in uptrends identifying market tops. A classical or regular bearish divergence occurs when prices reach a new high and then pull back, with an oscillator (MACD histogram in this case) dropping below its zero line. Prices stabilize and rally to a higher high, but the oscillator reaches a lower peak than it did on a previous rally.
In the chart above (weekly charts of NKE, Nike, Inc.), in area X (around August 2021), NKE rallied to a new bull market high and MACD-Histogram rallied with it, rising above its previous peak and showing that bulls were extremely strong. In area Y, MACD-H fell below its centerline and at the same time prices punched below the zone between the two moving averages. In area Z, NKE rallied to a new bull market high, but the rally of MACD-H was feeble, reflecting the bulls’ weakness. Its downtick from peak Z completed a bearish divergence, giving a strong sell signal and auguring a nasty bear market.
* Bullish divergences , in the other hand, occur towards the ends of downtrends identifying market bottoms. A classical (also called regular) bullish divergence occurs when prices and an oscillator (MACD histogram in this case) both fall to a new low, rally, with the oscillator rising above its zero line, then both fall again. This time, prices drop to a lower low, but the oscillator traces a higher bottom than during its previous decline.
In the example in the chart above (weekly charts of NKE, Nike, Inc.), you see a bearish divergence that signaled the October 2022 bear market bottom, giving a strong buy signal right near the lows. In area A, NKE (weekly charts) appeared in a free fall. The record low A of MACD-H indicated that bears were extremely strong. In area B, MACD-H rallied above its centerline. Notice the brief rally of prices at that moment. In area C, NKE slid to a new bear market low, but MACD-H traced a much more shallow low. Its uptick completed a bullish divergence, giving a strong buy signal.
-----------------------------------------------------------------
Some cool features included in this indicator:
1. This indicator also includes the “ Impulse System ”. The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram, and identifies inflection points where a trend speeds up or slows down. The moving average identifies the trend, while the MACD-Histogram measures momentum. This unique indicator combination is color coded into the price bars for easy reference.
Calculation:
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Price bars are colored blue when conditions for a Red Price Bar or Green Price Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
The Impulse System works more like a censorship system. Green price bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising (you don't have permission to sell). A red price bar indicates that the bears have taken control because the 13-day EMA and MACD Histogram are falling (you don't have permission to buy). A blue price bar indicates mixed technical signals, with neither buying nor selling pressure predominating (either both buying or selling are permitted).
2. Another "extra feature" included here is the " Keltner Channels ". Keltner Channels are volatility-based envelopes set above and below an exponential moving average.
3. It were also included a couple of EMAs.
Everything can be removed from the chart any time.
-----------------------------------------------------------------
Options/adjustments for this indicator:
*Horizontal Distance (width) between two tops/bottoms criteria.
Refers to the horizontal distance between the MACH histogram peaks involved in the divergence
*Height of tops/bottoms criteria (for Histogram).
Refers to the difference/relation/vertical distance between the MACH HISTOGRAM peaks involved in the divergence: 1st Histogram Peak is X times the 2nd.
*Height/Vertical deviation of tops/bottoms criteria (for Price).
Deviation refers to the difference/relation/vertical distance between the PRICE peaks involved in the divergence.
*Plot Regular Bullish Divergences?.
*Plot Regular Bearish Divergences?.
*Delete Previous Cancelled Divergences?.
*Shows a pair of EMAs.
*Shows Keltner Channels (using ATR)
Keltner Channels are volatility-based envelopes set above and below an exponential moving average.
*This indicator also has the option to show the Impulse System over the price bars/candles.
MACDh with divergences & impulse system-----------------------------------------------------------------
General Description:
This indicator ( the one on the low panel ) is a classic MACD that also shows regular divergences between its histogram and the prices. This script is special because it can be adjusted to fit several criteria when trading divergences filtering them according to the "height" and "width" of the patterns. The script also includes the "extra feature" Impulse System, which you will hardly find anywhere else in similar classic MACD histogram divergence indicators.
The indicator helps to find trend reversals, and it works on any market, any instrument, any timeframe, and any market condition (except against really strong trends that do not show any other sign of reversion yet).
Please take on consideration that divergences should be taken with caution.
-----------------------------------------------------------------
Definition of classic Bullish and Bearish divergences:
* Bearish divergences occur in uptrends identifying market tops. A classical or regular bearish divergence occurs when prices reach a new high and then pull back, with an oscillator (MACD histogram in this case) dropping below its zero line. Prices stabilize and rally to a higher high, but the oscillator reaches a lower peak than it did on a previous rally.
In the chart above (weekly charts of NKE, Nike, Inc.), in area X (around August 2021), NKE rallied to a new bull market high and MACD-Histogram rallied with it, rising above its previous peak and showing that bulls were extremely strong. In area Y, MACD-H fell below its centerline and at the same time prices punched below the zone between the two moving averages. In area Z, NKE rallied to a new bull market high, but the rally of MACD-H was feeble, reflecting the bulls’ weakness. Its downtick from peak Z completed a bearish divergence, giving a strong sell signal and auguring a nasty bear market.
* Bullish divergences , in the other hand, occur towards the ends of downtrends identifying market bottoms. A classical (also called regular) bullish divergence occurs when prices and an oscillator (MACD histogram in this case) both fall to a new low, rally, with the oscillator rising above its zero line, then both fall again. This time, prices drop to a lower low, but the oscillator traces a higher bottom than during its previous decline.
In the example in the chart above (weekly charts of NKE, Nike, Inc.), you see a bearish divergence that signaled the October 2022 bear market bottom, giving a strong buy signal right near the lows. In area A, NKE (weekly charts) appeared in a free fall. The record low A of MACD-H indicated that bears were extremely strong. In area B, MACD-H rallied above its centerline. Notice the brief rally of prices at that moment. In area C, NKE slid to a new bear market low, but MACD-H traced a much more shallow low. Its uptick completed a bullish divergence, giving a strong buy signal.
-----------------------------------------------------------------
Extra feature: Impulse System
This indicator also includes the “ Impulse System ”. The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram, and identifies inflection points where a trend speeds up or slows down. The moving average identifies the trend, while the MACD-Histogram measures momentum. This unique indicator combination is color coded into the price bars or macd histogram bars for easy reference.
Calculation:
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Histogram bars are colored blue when conditions for a Red Histogram Bar or Green Histogram Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
The Impulse System works more like a censorship system. Green histogram bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising (you don't have permission to sell). A red histogram bar indicates that the bears have taken control because the 13-day EMA and MACD Histogram are falling (you don't have permission to buy). A blue histogram bar indicates mixed technical signals, with neither buying nor selling pressure predominating (either both buying or selling are permitted).
The impulse system can be removed from the chart any time.
-----------------------------------------------------------------
Options/adjustments for this indicator:
*Horizontal Distance (width) between two tops/bottoms criteria.
Refers to the horizontal distance between the MACH histogram peaks involved in the divergence
*Height of tops/bottoms criteria (for Histogram).
Refers to the difference/relation/vertical distance between the MACH HISTOGRAM peaks involved in the divergence: 1st Histogram Peak is X times the 2nd.
*Height/Vertical deviation of tops/bottoms criteria (for Price).
Deviation refers to the difference/relation/vertical distance between the PRICE peaks involved in the divergence.
*Plot Regular Bullish Divergences?.
*Plot Regular Bearish Divergences?.
*Delete Previous Cancelled Divergences?.
*This indicator also has the option to show the Impulse System over the MACD histogram bars
MACDh with divergences & impulse system-----------------------------------------------------------------
General Description:
This indicator ( the one on the low panel ) is a classic MACD that also shows regular divergences between its histogram and the prices. This script is special because it can be adjusted to fit several criteria when trading divergences filtering them according to the "height" and "width" of the patterns. The script also includes the "extra feature" Impulse System, which you will hardly find anywhere else in similar classic MACD histogram divergence indicators.
The indicator helps to find trend reversals, and it works on any market, any instrument, any timeframe, and any market condition (except against really strong trends that do not show any other sign of reversion yet).
Please take on consideration that divergences should be taken with caution.
-----------------------------------------------------------------
Definition of classic Bullish and Bearish divergences:
* Bearish divergences occur in uptrends identifying market tops. A classical or regular bearish divergence occurs when prices reach a new high and then pull back, with an oscillator (MACD histogram in this case) dropping below its zero line. Prices stabilize and rally to a higher high, but the oscillator reaches a lower peak than it did on a previous rally.
In the chart above (weekly charts of NKE, Nike, Inc.), in area X (around August 2021), NKE rallied to a new bull market high and MACD-Histogram rallied with it, rising above its previous peak and showing that bulls were extremely strong. In area Y, MACD-H fell below its centerline and at the same time prices punched below the zone between the two moving averages. In area Z, NKE rallied to a new bull market high, but the rally of MACD-H was feeble, reflecting the bulls’ weakness. Its downtick from peak Z completed a bearish divergence, giving a strong sell signal and auguring a nasty bear market.
* Bullish divergences , in the other hand, occur towards the ends of downtrends identifying market bottoms. A classical (also called regular) bullish divergence occurs when prices and an oscillator (MACD histogram in this case) both fall to a new low, rally, with the oscillator rising above its zero line, then both fall again. This time, prices drop to a lower low, but the oscillator traces a higher bottom than during its previous decline.
In the example in the chart above (weekly charts of NKE, Nike, Inc.), you see a bearish divergence that signaled the October 2022 bear market bottom, giving a strong buy signal right near the lows. In area A, NKE (weekly charts) appeared in a free fall. The record low A of MACD-H indicated that bears were extremely strong. In area B, MACD-H rallied above its centerline. Notice the brief rally of prices at that moment. In area C, NKE slid to a new bear market low, but MACD-H traced a much more shallow low. Its uptick completed a bullish divergence, giving a strong buy signal.
-----------------------------------------------------------------
Extra feature: Impulse System
This indicator also includes the “ Impulse System ”. The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram, and identifies inflection points where a trend speeds up or slows down. The moving average identifies the trend, while the MACD-Histogram measures momentum. This unique indicator combination is color coded into the price bars or macd histogram bars for easy reference.
Calculation:
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Histogram bars are colored blue when conditions for a Red Histogram Bar or Green Histogram Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
The Impulse System works more like a censorship system. Green histogram bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising (you don't have permission to sell). A red histogram bar indicates that the bears have taken control because the 13-day EMA and MACD Histogram are falling (you don't have permission to buy). A blue histogram bar indicates mixed technical signals, with neither buying nor selling pressure predominating (either both buying or selling are permitted).
The impulse system can be removed from the chart any time.
-----------------------------------------------------------------
Options/adjustments for this indicator:
*Horizontal Distance (width) between two tops/bottoms criteria.
Refers to the horizontal distance between the MACH histogram peaks involved in the divergence
*Height of tops/bottoms criteria (for Histogram).
Refers to the difference/relation/vertical distance between the MACH HISTOGRAM peaks involved in the divergence: 1st Histogram Peak is X times the 2nd.
*Height/Vertical deviation of tops/bottoms criteria (for Price).
Deviation refers to the difference/relation/vertical distance between the PRICE peaks involved in the divergence.
*Plot Regular Bullish Divergences?.
*Plot Regular Bearish Divergences?.
*Delete Previous Cancelled Divergences?.
*This indicator also has the option to show the Impulse System over the MACD histogram bars
MACDh with divergences & impulse system (overlayed on prices)-----------------------------------------------------------------
General Description:
This indicator ( the one on the top panel above ) consists on some lines, arrows and labels drawn over the price bars/candles indicating the detection of regular divergences between price and the classic MACD histogram (shown on the low panel). This script is special because it can be adjusted to fit several criteria when trading divergences filtering them according to the "height" and "width" of the patterns. The script also includes the "extra features" Impulse System and Keltner Channels, which you will hardly find anywhere else in similar classic MACD histogram divergence indicators.
The indicator helps to find trend reversals, and it works on any market, any instrument, any timeframe, and any market condition (except against really strong trends that do not show any other sign of reversion yet).
Please take on consideration that divergences should be taken with caution.
-----------------------------------------------------------------
Definition of classic Bullish and Bearish divergences:
* Bearish divergences occur in uptrends identifying market tops. A classical or regular bearish divergence occurs when prices reach a new high and then pull back, with an oscillator (MACD histogram in this case) dropping below its zero line. Prices stabilize and rally to a higher high, but the oscillator reaches a lower peak than it did on a previous rally.
In the chart above (weekly charts of NKE, Nike, Inc.), in area X (around August 2021), NKE rallied to a new bull market high and MACD-Histogram rallied with it, rising above its previous peak and showing that bulls were extremely strong. In area Y, MACD-H fell below its centerline and at the same time prices punched below the zone between the two moving averages. In area Z, NKE rallied to a new bull market high, but the rally of MACD-H was feeble, reflecting the bulls’ weakness. Its downtick from peak Z completed a bearish divergence, giving a strong sell signal and auguring a nasty bear market.
* Bullish divergences , in the other hand, occur towards the ends of downtrends identifying market bottoms. A classical (also called regular) bullish divergence occurs when prices and an oscillator (MACD histogram in this case) both fall to a new low, rally, with the oscillator rising above its zero line, then both fall again. This time, prices drop to a lower low, but the oscillator traces a higher bottom than during its previous decline.
In the example in the chart above (weekly charts of NKE, Nike, Inc.), you see a bearish divergence that signaled the October 2022 bear market bottom, giving a strong buy signal right near the lows. In area A, NKE (weekly charts) appeared in a free fall. The record low A of MACD-H indicated that bears were extremely strong. In area B, MACD-H rallied above its centerline. Notice the brief rally of prices at that moment. In area C, NKE slid to a new bear market low, but MACD-H traced a much more shallow low. Its uptick completed a bullish divergence, giving a strong buy signal.
-----------------------------------------------------------------
Some cool features included in this indicator:
1. This indicator also includes the “ Impulse System ”. The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram, and identifies inflection points where a trend speeds up or slows down. The moving average identifies the trend, while the MACD-Histogram measures momentum. This unique indicator combination is color coded into the price bars for easy reference.
Calculation:
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Price bars are colored blue when conditions for a Red Price Bar or Green Price Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
The Impulse System works more like a censorship system. Green price bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising (you don't have permission to sell). A red price bar indicates that the bears have taken control because the 13-day EMA and MACD Histogram are falling (you don't have permission to buy). A blue price bar indicates mixed technical signals, with neither buying nor selling pressure predominating (either both buying or selling are permitted).
2. Another "extra feature" included here is the " Keltner Channels ". Keltner Channels are volatility-based envelopes set above and below an exponential moving average.
3. It were also included a couple of EMAs.
Everything can be removed from the chart any time.
-----------------------------------------------------------------
Options/adjustments for this indicator:
*Horizontal Distance (width) between two tops/bottoms criteria.
Refers to the horizontal distance between the MACH histogram peaks involved in the divergence
*Height of tops/bottoms criteria (for Histogram).
Refers to the difference/relation/vertical distance between the MACH HISTOGRAM peaks involved in the divergence: 1st Histogram Peak is X times the 2nd.
*Height/Vertical deviation of tops/bottoms criteria (for Price).
Deviation refers to the difference/relation/vertical distance between the PRICE peaks involved in the divergence.
*Plot Regular Bullish Divergences?.
*Plot Regular Bearish Divergences?.
*Delete Previous Cancelled Divergences?.
*Shows a pair of EMAs.
*Shows Keltner Channels (using ATR)
Keltner Channels are volatility-based envelopes set above and below an exponential moving average.
*This indicator also has the option to show the Impulse System over the price bars/candles.
Crypto Trend IndicatorThe Crypto Trend Indicator is a trend-following indicator specifically designed to identify bullish and bearish trends in the price of Bitcoin, and other cryptocurrencies. This indicator doesn't provide explicit instructions on when to buy or sell, but rather offers an understanding of whether the trend is bullish or bearish. It's important to note that this indicator is only useful for trend trading.
The band is a visual representation of the 30-day and 60-day Exponential Moving Average (EMA). When the 30-day EMA is above the 60-day EMA, the trend is bullish and the band is green. When the 30-day EMA is below the 60-day EMA, the trend is bearish and the band is red. When the 30-day EMA starts to converge with the 60-day EMA, the trend is neutral and the band is grey.
The line is a visual representation of the 20-week Simple Moving Average (SMA) in the daily timeframe. "Bull" and "Bear" signals are generated when the 20-day EMA is either above or below the 20-week SMA, in conjunction with a bullish or bearish trend. When the band is green and the 20-day EMA is above the 20-week SMA, a “Bull” signal emerges. When the band is red and the 20-day EMA is below the 20-week SMA, a “Bear” signal emerges. The 20-week SMA can potentially also function as a leading indicator, as substantial price deviations from the SMA typically indicate an overextended market.
While this indicator has traditionally identified bullish and bearish trends in various cryptocurrency assets, past performance does not guarantee future results. Therefore, it is advisable to supplement this indicator with other technical tools. For instance, range-bound indicators can greatly improve the decision-making process when planning for entries and exits points.
GKD-C Adaptive Digital Kahler Variety RSI w/ DZ [Loxx]Giga Kaleidoscope GKD-C Adaptive Digital Kahler Variety RSI w/ DZ is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is the NNFX algorithmic trading strategy?
The NNFX (No-Nonsense Forex) trading system is a comprehensive approach to Forex trading that is designed to simplify the process and remove the confusion and complexity that often surrounds trading. The system was developed by a Forex trader who goes by the pseudonym "VP" and has gained a significant following in the Forex community.
The NNFX trading system is based on a set of rules and guidelines that help traders make objective and informed decisions. These rules cover all aspects of trading, including market analysis, trade entry, stop loss placement, and trade management.
Here are the main components of the NNFX trading system:
1. Trading Philosophy: The NNFX trading system is based on the idea that successful trading requires a comprehensive understanding of the market, objective analysis, and strict risk management. The system aims to remove subjective elements from trading and focuses on objective rules and guidelines.
2. Technical Analysis: The NNFX trading system relies heavily on technical analysis and uses a range of indicators to identify high-probability trading opportunities. The system uses a combination of trend-following and mean-reverting strategies to identify trades.
3. Market Structure: The NNFX trading system emphasizes the importance of understanding the market structure, including price action, support and resistance levels, and market cycles. The system uses a range of tools to identify the market structure, including trend lines, channels, and moving averages.
4. Trade Entry: The NNFX trading system has strict rules for trade entry. The system uses a combination of technical indicators to identify high-probability trades, and traders must meet specific criteria to enter a trade.
5. Stop Loss Placement: The NNFX trading system places a significant emphasis on risk management and requires traders to place a stop loss order on every trade. The system uses a combination of technical analysis and market structure to determine the appropriate stop loss level.
6. Trade Management: The NNFX trading system has specific rules for managing open trades. The system aims to minimize risk and maximize profit by using a combination of trailing stops, take profit levels, and position sizing.
Overall, the NNFX trading system is designed to be a straightforward and easy-to-follow approach to Forex trading that can be applied by traders of all skill levels.
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Adaptive Digital Kahler Variety RSI w/ DZ as shown on the chart above
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry
1. GKD-C Confirmation 1 Signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Continuation Entry
1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously
2. GKD-B Baseline hasn't crossed since entry signal trigger
3. GKD-C Confirmation Continuation Indicator signals
4. GKD-C Confirmation 1 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 2 agrees
1-Candle Rule Standard Entry
1. GKD-C Confirmation 1 signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
1-Candle Rule Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
PullBack Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is beyond 1.0x Volatility of Baseline
Next Candle:
1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
█ GKD-C Adaptive Digital Kahler Variety RSI w/ DZ
What is Digital Kahler?
From Philipp Kahler's article for www.traders-mag.com, August 2008. "A Classic Indicator in a New Suit: Digital Stochastic"
Digital Indicators
Whenever you study the development of trading systems in particular, you will be struck in an extremely unpleasant way by the seemingly unmotivated indentations and changes in direction of each indicator. An experienced trader can recognise many false signals of the indicator on the basis of his solid background; a stupid trading system usually falls into any trap offered by the unclear indicator course. This is what motivated me to improve even further this and other indicators with the help of a relatively simple procedure. The goal of this development is to be able to use this indicator in a trading system with as few additional conditions as possible. Discretionary traders will likewise be happy about this clear course, which is not nerve-racking and makes concentrating on the essential elements of trading possible.
How Is It Done?
The digital stochastic is a child of the original indicator. We owe a debt of gratitude to George Lane for his idea to design an indicator which describes the position of the current price within the high-low range of the historical price movement. My contribution to this indicator is the changed pattern which improves the quality of the signal without generating too long delays in giving signals. The trick used to generate this “digital” behavior of the indicator. It can be used with most oscillators like RSI or CCI.
First of all, the original is looked at. The indicator always moves between 0 and 100. The precise position of the indicator or its course relative to the trigger line are of no interest to me, I would just like to know whether the indicator is quoted below or above the value 50. This is tantamount to the question of whether the market is just trading above or below the middle of the high-low range of the past few days. If the market trades in the upper half of its high-low range, then the digital stochastic is given the value 1; if the original stochastic is below 50, then the value –1 is given. This leads to a sequence of 1/-1 values – the digital core of the new indicator. These values are subsequently smoothed by means of a short exponential moving average . This way minor false signals are eliminated and the indicator is given its typical form.
This indicator contains 7 different types of RSI:
RSX
Regular
Slow
Rapid
Harris
Cuttler
Ehlers Smoothed
What is RSI?
RSI stands for Relative Strength Index . It is a technical indicator used to measure the strength or weakness of a financial instrument's price action.
The RSI is calculated based on the price movement of an asset over a specified period of time, typically 14 days, and is expressed on a scale of 0 to 100. The RSI is considered overbought when it is above 70 and oversold when it is below 30.
Traders and investors use the RSI to identify potential buy and sell signals. When the RSI indicates that an asset is oversold, it may be considered a buying opportunity, while an overbought RSI may signal that it is time to sell or take profits.
It's important to note that the RSI should not be used in isolation and should be used in conjunction with other technical and fundamental analysis tools to make informed trading decisions.
What is RSX?
Jurik RSX is a technical analysis indicator that is a variation of the Relative Strength Index Smoothed ( RSX ) indicator. It was developed by Mark Jurik and is designed to help traders identify trends and momentum in the market.
The Jurik RSX uses a combination of the RSX indicator and an adaptive moving average (AMA) to smooth out the price data and reduce the number of false signals. The adaptive moving average is designed to adjust the smoothing period based on the current market conditions, which makes the indicator more responsive to changes in price.
The Jurik RSX can be used to identify potential trend reversals and momentum shifts in the market. It oscillates between 0 and 100, with values above 50 indicating a bullish trend and values below 50 indicating a bearish trend . Traders can use these levels to make trading decisions, such as buying when the indicator crosses above 50 and selling when it crosses below 50.
The Jurik RSX is a more advanced version of the RSX indicator, and while it can be useful in identifying potential trade opportunities, it should not be used in isolation. It is best used in conjunction with other technical and fundamental analysis tools to make informed trading decisions.
What is Slow RSI?
Slow RSI is a variation of the traditional Relative Strength Index ( RSI ) indicator. It is a more smoothed version of the RSI and is designed to filter out some of the noise and short-term price fluctuations that can occur with the standard RSI .
The Slow RSI uses a longer period of time than the traditional RSI , typically 21 periods instead of 14. This longer period helps to smooth out the price data and makes the indicator less reactive to short-term price fluctuations.
Like the traditional RSI , the Slow RSI is used to identify potential overbought and oversold conditions in the market. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Traders often use these levels as potential buy and sell signals.
The Slow RSI is a more conservative version of the RSI and can be useful in identifying longer-term trends in the market. However, it can also be slower to respond to changes in price, which may result in missed trading opportunities. Traders may choose to use a combination of both the Slow RSI and the traditional RSI to make informed trading decisions.
What is Rapid RSI?
Same as regular RSI but with a faster calculation method
What is Harris RSI?
Harris RSI is a technical analysis indicator that is a variation of the Relative Strength Index ( RSI ). It was developed by Larry Harris and is designed to help traders identify potential trend changes and momentum shifts in the market.
The Harris RSI uses a different calculation formula compared to the traditional RSI . It takes into account both the opening and closing prices of a financial instrument, as well as the high and low prices. The Harris RSI is also normalized to a range of 0 to 100, with values above 50 indicating a bullish trend and values below 50 indicating a bearish trend .
Like the traditional RSI , the Harris RSI is used to identify potential overbought and oversold conditions in the market. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Traders often use these levels as potential buy and sell signals.
The Harris RSI is a more advanced version of the RSI and can be useful in identifying longer-term trends in the market. However, it can also generate more false signals than the standard RSI . Traders may choose to use a combination of both the Harris RSI and the traditional RSI to make informed trading decisions.
What is Cuttler RSI?
Cuttler RSI is a technical analysis indicator that is a variation of the Relative Strength Index ( RSI ). It was developed by Curt Cuttler and is designed to help traders identify potential trend changes and momentum shifts in the market.
The Cuttler RSI uses a different calculation formula compared to the traditional RSI . It takes into account the difference between the closing price of a financial instrument and the average of the high and low prices over a specified period of time. This difference is then normalized to a range of 0 to 100, with values above 50 indicating a bullish trend and values below 50 indicating a bearish trend .
Like the traditional RSI , the Cuttler RSI is used to identify potential overbought and oversold conditions in the market. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Traders often use these levels as potential buy and sell signals.
The Cuttler RSI is a more advanced version of the RSI and can be useful in identifying longer-term trends in the market. However, it can also generate more false signals than the standard RSI . Traders may choose to use a combination of both the Cuttler RSI and the traditional RSI to make informed trading decisions.
What is Ehlers Smoothed RSI?
Ehlers smoothed RSI is a technical analysis indicator that is a variation of the Relative Strength Index ( RSI ). It was developed by John Ehlers and is designed to help traders identify potential trend changes and momentum shifts in the market.
The Ehlers smoothed RSI uses a different calculation formula compared to the traditional RSI . It uses a smoothing algorithm that is designed to reduce the noise and random fluctuations that can occur with the standard RSI . The smoothing algorithm is based on a concept called "digital signal processing" and is intended to improve the accuracy of the indicator.
Like the traditional RSI , the Ehlers smoothed RSI is used to identify potential overbought and oversold conditions in the market. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Traders often use these levels as potential buy and sell signals.
The Ehlers smoothed RSI can be useful in identifying longer-term trends and momentum shifts in the market. However, it can also generate more false signals than the standard RSI . Traders may choose to use a combination of both the Ehlers smoothed RSI and the traditional RSI to make informed trading decisions.
What is a Vertical Horizontal Filter?
The Vertical Horizontal Filter (VHF) is a technical indicator used in trading to identify whether a market is trending or in a sideways trading range. It was developed by Adam White, and is based on the concept that markets tend to exhibit more volatility when they are trending, and less volatility when they are in a sideways range.
The VHF is calculated by taking the ratio of the range of the high and low prices over a specified period to the total range of prices over the same period. The resulting ratio is then multiplied by 100 to create a percentage value.
If the VHF is above a certain threshold, typically 60, it is considered to be indicating a trending market. If it is below the threshold, it is indicating a sideways trading range.
Traders use the VHF to help identify market conditions and to adjust their trading strategies accordingly. In a trending market, traders may look for opportunities to enter or exit positions based on the direction of the trend, while in a sideways trading range, traders may look for opportunities to buy at the bottom of the range and sell at the top.
The VHF can also be used in conjunction with other technical indicators, such as moving averages or momentum indicators, to help confirm trading signals. For example, if the VHF is indicating a trending market and the moving average is also indicating a trend, this may provide a stronger signal to enter or exit a trade.
One potential limitation of the VHF is that it can be less effective in markets that are transitioning between trending and sideways trading ranges. During these periods, the VHF may not accurately reflect the current market conditions, and traders may need to use other indicators or methods to help identify the current trend.
In summary, the Vertical Horizontal Filter (VHF) is a technical indicator used in trading to identify whether a market is trending or in a sideways trading range. It is based on the concept that markets exhibit more volatility when they are trending, and less volatility when they are in a sideways range. Traders use the VHF to help identify market conditions and adjust their trading strategies accordingly.
What are Dynamic Zones?
As explained in "Stocks & Commodities V15:7 (306-310): Dynamic Zones by Leo Zamansky, Ph .D., and David Stendahl"
Most indicators use a fixed zone for buy and sell signals. Here’ s a concept based on zones that are responsive to past levels of the indicator.
One approach to active investing employs the use of oscillators to exploit tradable market trends. This investing style follows a very simple form of logic: Enter the market only when an oscillator has moved far above or below traditional trading lev- els. However, these oscillator- driven systems lack the ability to evolve with the market because they use fixed buy and sell zones. Traders typically use one set of buy and sell zones for a bull market and substantially different zones for a bear market. And therein lies the problem.
Once traders begin introducing their market opinions into trading equations, by changing the zones, they negate the system’s mechanical nature. The objective is to have a system automatically define its own buy and sell zones and thereby profitably trade in any market — bull or bear. Dynamic zones offer a solution to the problem of fixed buy and sell zones for any oscillator-driven system.
An indicator’s extreme levels can be quantified using statistical methods. These extreme levels are calculated for a certain period and serve as the buy and sell zones for a trading system. The repetition of this statistical process for every value of the indicator creates values that become the dynamic zones. The zones are calculated in such a way that the probability of the indicator value rising above, or falling below, the dynamic zones is equal to a given probability input set by the trader.
To better understand dynamic zones, let's first describe them mathematically and then explain their use. The dynamic zones definition:
Find V such that:
For dynamic zone buy: P{X <= V}=P1
For dynamic zone sell: P{X >= V}=P2
where P1 and P2 are the probabilities set by the trader, X is the value of the indicator for the selected period and V represents the value of the dynamic zone.
The probability input P1 and P2 can be adjusted by the trader to encompass as much or as little data as the trader would like. The smaller the probability, the fewer data values above and below the dynamic zones. This translates into a wider range between the buy and sell zones. If a 10% probability is used for P1 and P2, only those data values that make up the top 10% and bottom 10% for an indicator are used in the construction of the zones. Of the values, 80% will fall between the two extreme levels. Because dynamic zone levels are penetrated so infrequently, when this happens, traders know that the market has truly moved into overbought or oversold territory.
Calculating the Dynamic Zones
The algorithm for the dynamic zones is a series of steps. First, decide the value of the lookback period t. Next, decide the value of the probability Pbuy for buy zone and value of the probability Psell for the sell zone.
For i=1, to the last lookback period, build the distribution f(x) of the price during the lookback period i. Then find the value Vi1 such that the probability of the price less than or equal to Vi1 during the lookback period i is equal to Pbuy. Find the value Vi2 such that the probability of the price greater or equal to Vi2 during the lookback period i is equal to Psell. The sequence of Vi1 for all periods gives the buy zone. The sequence of Vi2 for all periods gives the sell zone.
In the algorithm description, we have: Build the distribution f(x) of the price during the lookback period i. The distribution here is empirical namely, how many times a given value of x appeared during the lookback period. The problem is to find such x that the probability of a price being greater or equal to x will be equal to a probability selected by the user. Probability is the area under the distribution curve. The task is to find such value of x that the area under the distribution curve to the right of x will be equal to the probability selected by the user. That x is the dynamic zone.
What is Adaptive Digital Kahler Variety RSI w/ DZ?
We first calculate the VHF filter, we then inject that period output into an RSI calculation, we apply a Digital Kahler filter to this output, and finally, we create Dynamic Zones to determine oscillator extremes. There are four types of signals: Slope, Static Zero-line, Dynamic Levels, and Dynamic Middle
Requirements
Inputs
Confirmation 1 and Solo Confirmation: GKD-V Volatility / Volume indicator
Confirmation 2: GKD-C Confirmation indicator
Outputs
Confirmation 2 and Solo Confirmation Complex: GKD-E Exit indicator
Confirmation 1: GKD-C Confirmation indicator
Continuation: GKD-E Exit indicator
Solo Confirmation Simple: GKD-BT Backtest strategy
Additional features will be added in future releases.
[blackcat] L3 Aroon ZoneLevel 3
Background
The Aroon indicator developed by Tushar Chanand indicates whether there is a trend price or is located in a trading area.
Function
Classical Aroon can also show the beginning of a new trend, its strength and expectation of changes from trade areas to trends. However, it produces too much noise when is bull or bear during sideways. In this improved version, I use bars without "blur cross" to classify bull, bear and sideways, which could look better to know the status of current market.
Since Chinese uses red for bull, green for bear, while others use green for bull and red for bear, i try to avoid to use red or green, which may be confusing. I use my style of color for bull and bear:
Yellow --> Bull
Fuchsia --> Bear
Gray --> Sideways
Remarks
Feedbacks are appreciated.
Jerry J8 30-123 Spy Dashboard ProPlease watch the J8 Scalping Tutorial Video below for a walkthrough on how these indicators work.
This script is used in conjunction with Jerry J8 30-123 SPY Scalping PRO” Indicator(which creates the buy and sell orders as a strategy). The Dashboard shows the 4 main criteria statuses from the strategy. I find the dashboard makes scalping the SPY much easier.
This study project is designed for scalping options that expire daily with bull put and bear call credit spreads on a 3 minute chart. The name 30_123 is a reference to 4 main criteria being met to give a green light for a potential trade. The criteria:
* 30 = 30 minute trend
* 1 = 3 minute trend
* 2 = Moving average criteria
* 3 = RSI criteria
4 = Secondary trend. Bonus if in sync but not a requirement.
* The strategy also utilizes momentum as a criteria but this is not shown on the dashboard.
This indicator is designed to trade options that expire daily including the SPY, IWM, QQQ, and NDX. However, it can be used with multiple symbols on a 3 minute chart.
When the 30_123 conditions are all green with all criteria are met a bull signal is created.
When the 30_123 conditions are all red with all criteria are met a bear signal is created.
This study is the dashboard that is designed to show how the main J8 strategy indicator is working and it shows which criteria have been met. Additionally there are multiple user INPUTS that you can adjust for the 4 main criteria plus inputs to help you with your credit spread criteria.
For example, if the SPY is at 400 we could have an order to sell a BULL PUT CREDIT SPREAD and I would likely sell the 398p and buy the 397p; The 398p delta would be approximately -.2. The spread position profits with any close over 398 and/or can be closed early with a bullish price move. IMPORTANT: If the SPY closed the day at $399 on the chart it would look like a loss based on the buy and sell orders but the spread would be a full profit since the close was above 398.
---- IRON CONDOR
For the SPY ticker only an iron condor label is generated when the SPY is trading sideways and meets specified criteria. When the criteria is met the Iron Condor label appears and it provides a recommendation for what option to buy and sell. The iron condor recommendations can be adjusted with user inputs.
This Indicator dashboard shows the criteria labels and colors the criteria as green if bullish and red if bearish. When the criteria are not met the dashboard shows “NO CLEAR SIGNAL”. There is also a label that shows whether you are looking for bullish or bearish positions based on the 30 minute trend.
The chart shown on the indicator is the RSI and for this indicator an RSI over 50 is bullish and under 50 is bearish. The line color shows the RSI trend. RSI OB (overbought) and OS (oversold) areas are shaded. The RSI can remain in an OB or OS state for a prolonged period and while some people use OB and OS as a reversal signal I use it as a strong trend indication and recognize it will not last forever. You can SET the OB and OS levels with inputs.
---- USER INPUTS
Paint Bars: Turns on/off the candle coloring. Default is OFF.
Iron Condor Settings: Defaults are what I use and can be used as a guide.
Criteria: Trend, moving averages, and RSI settings can all be adjusted.
---- SETUP & HINTS
Add "Jerry J8 30-123 SPY Scalping PRO” indicator to show bull and bear signals
Add "Jerry J8 MACD Optimal Entry Zone” indicator to show best MACD range for entry
I also like to add "Jerry Momentum Dream" indicator to see the momentum
With this indicator we’re looking for the 30, 1, 2, and 3 criteria to be met which increases our likelihood of success. IMPORTANT. Never automatically enter a position without reviewing the other indicators and drawing your own conclusions. You want to choose the entries that are the most appealing to you that take into account volume, time of day, and risk/reward. Positions should be closed based on your risk/reward goals.
Indicators are not a magic pill and should be used to support trading decisions, not to make them for you. Past performance is not a guarantee of future returns. The results of individual stocks/indexes with any strategy do not constitute proof they will repeat in the future.
DISCLAIMER: The information contained in our scripts/indicators/ideas does not constitute financial advice or a solicitation to buy or sell any securities of any type. Trading and investing in the stock market and cryptocurrencies involves substantial risk of loss and is not suitable for every investor. I’m NOT a financial adviser. All trading strategies are used at your own risk.
Please Use the AUTHOR’s INSTRUCTIONS link below for more information.
NOTE: The PERFORMANCE SUMMARY below does not accurately reflect the trading strategy because the entry orders generated in the strategy are based on the stock price and our actual order is a credit spread that is profitable even if the price moves against us a little bit. What could show as a loss in the strategy could be a profit in the credit spread.
[E5 Trading] Advanced RSIAdvanced RSI Overview
The traditional RSI momentum indicator measures the magnitude of price changes over a user-specified period to determine overbought and oversold conditions in the price of an asset.
E5 Trading Advanced RSI adds several sophisticated features to enhance the analysis of RSI to detect early signs of trend reversals and continuations.
Advanced capabilities include customizable fast and slow RSI moving averages, RSI Bollinger Bands, relative overbought and oversold signals, and regular and hidden divergences.
These features provide traders with opportunities to identify confluence using other E5 Trading indicator suite signals and increase the probability of entering winning trades.
RSI Moving Averages
RSI moving average crossovers help determine momentum shifts in the overall trend, similar to price moving average crossovers.
Set the moving average type (default: EMA ), fast-moving RSI period (default: 3), and slow-moving RSI period (default: 5).
When the fast-moving RSI crosses above the slow-moving RSI, bullish. When the fast-moving RSI crosses under the slow-moving RSI, bearish.
The Moving Average Fill feature (default: On) colors the area between the fast-moving and slow-moving RSI lines with bullish and bearish momentum shading.
RSI Bollinger Bands
Like Bollinger Bands for price action, RSI Bollinger Bands can be used as moving oversold and overbought thresholds, which adjust with the RSI oscillator based on its volatility.
When RSI breaks out above the upper RSI Bollinger Band, the asset is overbought on a relative basis, given its price history.
When RSI breaks out below the lower RSI Bollinger Band, the asset is oversold on a relative basis.
Evaluating RSI on a relative basis is more reliable than evaluating RSI on an absolute basis with fixed 30/70 thresholds for oversold/overbought, which traditional RSI analysis relies on.
This is because rigid 30/70 thresholds are arbitrary rules-of-thumb that may (or may not) be relevant to current market conditions.
When RSI is riding the upper or lower Bollinger Bands and breaks towards the middle, this reversion to the mean (i.e., basis line) can signal that the trend may be reversing.
Toggle to turn on the basis (i.e., mean) line of the RSI Bollinger Bands.
The basis line can also be used as a support line when RSI values are above it or as a resistance line when RSI values are below it.
Relative Oversold | Overbought
Relative Oversold | Overbought signals (i.e., dots) provide the Advanced RSI trader with the means to identify trend reversal or continuation opportunities that most traders will miss.
Relative Oversold | Overbought signals reflect an adaptive approach that normalizes RSI data relative to the trend using RSI Bollinger Bands.
These signals improve the reliability of RSI oversold and overbought signals compared to traditional methods and eliminate the need to trade within the confines of fixed 30/70 RSI thresholds.
Signals will appear even when the standard RSI line may be far away from the generally accepted oversold and overbought thresholds (i.e., 30 and 70, respectively).
Advanced RSI Divergences
Divergences occur when a technical indicator, like an oscillator, moves in the opposite direction of the price.
They often serve as an early warning of a trend reversal (via regular divergence signals) or trend continuation (via hidden divergence signals).
Regular divergences provide an early warning signal of potential trend reversals (i.e., trend weakening).
Hidden divergences provide an early warning signal of potential trend continuation (i.e., trend strength).
Regular and Hidden divergences flag in real-time when 'Potential' (default) is selected as the Divergences Confirmation State.
This feature is a leading indicator that provides the trader with an early warning of a potential trend change (regular divergences) or trend continuation (hidden divergences).
Potential RSI regular divergence signals are plotted directly on the RSI chart, with bullish and bearish divergences flagging with an ‘R’ below and above the RSI line, respectively.
Potential RSI hidden divergence signals are plotted directly on the RSI chart, with bullish and bearish divergences flagging with an ‘H’ below and above the RSI line, respectively.
Confirmed RSI regular divergence signals are plotted directly on the RSI chart, with bullish and bearish divergences flagging with an ‘R-Bull’ below and 'R-Bear' above the RSI line, respectively.
Confirmed RSI hidden divergence signals are plotted directly on the RSI chart, with bullish and bearish divergences flagging with an ‘H-Bull’ below and 'H-Bear' above the RSI line, respectively.
Always practice risk management: Use proper position sizing and a stop-loss on every trade.
Fsystem Pivot 1453Hello
The purpose of this script, for long and short investments, first determines a bullish or bearish area and draws a horizontal support, resistance and level zone.
You will be able to see the alignment of the symbols you follow to the past pivot lines and all the pivots ahead at the last bar.
Whichever level the symbol comes to, it draws 3 automatic pivots on that level area.
Among the options, you can color the bars on the period you are working on, whether any period is bull or bear.
And if you tick the show terms pivot option, you can see the smallest pivots in the first entries to the bull or bear area. 1 minute period and 5 periods will also be useful for traders.
Our goal is to make the community the best in mindful graphic reading.
Our scripts never promise you gain and maybe even harm, it requires you to be self-sacrificing
Content usage details are explained on the picture.
pivot 1453 scripti uzun vadeli trade için size ayı veya boga alanı oluşturup ,alanın başlangıcı fiyatların hangi level de oldugunu gosteren ve her pivot arasına 3 adet ek pivotu fiyatın oldugunu levele gore çizen ,destek ve direnç olarak kullanmanızı saglayan , pivot sistemimizdir.
Seçenekler arasında
1 dakika ve 5 dakika periyotlarda alan değişimine gore kısa periyot çizdirme seçeneğimiz mevcuttur.
Hangi periyotun boga veya ayıda oldugunu ,çaliştiğınız herhangi periyotta barlara göre renklendirebilirsiniz.
Scriptimiz topluluğun grafik yorumlama gücünü arttırmak içindir.
Bu script sizlere kazanç vaad etmez ve maddi zarar verebilir.
You can see whether the lower period you selected is bull or bearish according to the bar color. For example, the change of 5 minutes in the day chart is red bear, blue bull.
seçtiğiniz alt periyodun bar rengine göre boğa veya ayı mı oldugunu gorebilirsiniz. örneğin ,gün grafik içinde 5 dakikanın değişimi kırmızı ayı,mavi boğa dır.
By checking the showshortterm option, you can open the first short periods of bull or bear transitions. 4% profit can be used for 1 and 5 minutes in very short time periods.
showshortterm seçeneğini işaretleyerek ,boga veya ayı alana geçişlerin ilk kısa periyotlarını açabilirsiniz. daha çok kısa zaman dilimlerinde 1 ve 5 dakika için %4 lük kar amaçlı kullanılabilir.
If you mark the showema option, it will add ema 60, ema 360 and ema 270 lines to you.
showema seçeneği işaretlerseniz,size ema 60 ema 360 ve ema 270 çizgilerini ekler,dilerseniz ema ların altında satış yönlü üzerinde alış yönlü kullanabilirsiniz.
Options Scalping by harsh gbychi this is my script.
Bank Nifty Live OI Change Chart can give very useful clues for intraday support and resistance levels for Bank Nifty. If there is more addition in Open Interest at 12200 Calls, that would mean most market players are comfortable writing call options at this level because they believe it to be a strong resistance. That would be bearish indication for BankNifty.
Similarly is there is highest writing in 12000 Puts that would indicate strong intraday support at that level.
Third Scenario: There is good amount of Open Interest increase in 12000 PE and 12200 CE –> this means we should expect a range bound session for the day, as both bears and bulls are comfortable holding the 12200 and 12000 levels respectively.
Following factors could improve reliability of BankNifty OI Change analysis:
1) Put Call Ratio: Higher PCR means bullishness. If there is more writing at 12000PE and PCR is high and increasing during the day that would add to bullish scenario
If the PCR is declining for the day and more writing happening at 12200CE then this adds to bearishness.
2) Close to expiry: The closer to expiry we are, the more reliable the ‘Open Interest’ analysis. Early in the series, the OI analysis is less reliable.
3) More Players: As the number of players increase, the OI analysis become more reliable.
4) Bid-ask Spread: The lower the bid-ask spread the more reliable the OI analysis.
5) Technical Indicators: The best trades are found by combining OI analysis with other technical indicators. MACD, RSI, Channel lines and EW count give best results with Open Interest Analysis.
Rollover LTEThis indicator shows where price needs to be and when in order to cause the 20-sma and 50-sma moving averages to change directions. A change in direction requires the slope of a moving average to change from negative to positive or from positive to negative. When a moving average changes direction, it can be said that it has “rolled over” or “rolled up,” with the latter only applying if slope went from negative to positive.
Theory:
In order to solve for the price of the current bar that will cause the moving average to roll up, the slope from the previous bar’s average to the current bar’s average must be set equal to zero which is to say that the averages must be the same.
For the 20-sma, the equation simply stated in words is as follows:
Current MA as a function of current price and previous 19 values = previous MA which is fixed based on previous 20 values
The denominators which are both 20 cancel and the previous 19 values cancel. What’s left is current price on the left side and the value from 20 bars ago on the right.
Current price = value from 20 bars ago
and since the equation was set up for solving for the price of the current bar that will cause the MA to roll over
Rollover price = value from 20 bars ago
This makes plotting rollover price, both current and forecasted, fairly simple, as it’s merely the closing price plotted with an offset to the right the same distance as the moving average length.
Application:
The 20-sma and 50-sma rollover prices are plotted because they are considered to be the two most important moving averages for rollover analysis. Moving average lengths can be modified in the indicator settings. The 20-sma and 20-sma rollover price are both plotted in white and the 50-sma and 50-sma rollover price are both plotted in blue. There are two rollover prices because the 20-sma rollover price is the price that will cause the 20-sma to roll over and the 50-sma rollover price is the price that will cause the 50-sma to roll over. The one that's vertically furthest away from the current price is the one that will cause both to rollover, as should become clearer upon reading the explanation below.
The distance between the current price and the 20-sma rollover price is referred to as the “rollover strength” of the price relative to the 20-sma. A large disparity between the current price and the rollover price suggests bearishness (negative rollover strength) if the rollover price is overhead because price would need to travel all that distance in order to cause the moving average to roll up. If the rollover price and price are converging, as is often the case, a change in moving average and price direction becomes more plausible. The rollover strengths of the 20-sma and 50-sma are added together to calculate the Rollover Strength and if a negative number is the result then the background color of the plot cloud turns red. If the result is positive, it turns green. Rollover Strength is plotted below price as a separate indicator in this publication for reference only and it's not part of this indicator. It does not look much different from momentum indicators. The code is below if anybody wants to try to use it. The important thing is that the distances between the rollover prices and the price action are kept in mind as having shrinking, growing, or neutral bearish and bullish effects on current and forecasted price direction. Trades should not be entered based on cloud colorization changes alone.
If you are about to crash into a wall of the 20-sma rollover price, as is indicated on the chart by the green arrow, you might consider going long so long as the rollover strength, both current and forecasted, of the 50-sma isn’t questionably bearish. This is subject to analysis and interpretation. There was a 20-sma rollover wall as indicated with yellow arrow, but the bearish rollover strength of the 50-sma was growing and forecasted to remain strong for a while at that time so a long entry would have not been suggested by both rollover prices. If you are about to crash into both the 20-sma and 50-sma rollover prices at the same time (not shown on this chart), that’s a good time to place a trade in anticipation of both slopes changing direction. You may, in the case of this chart, see that a 20-sma rollover wall precedes a 50-sma rollover convergence with price and anticipate a cascade which turned out to be the case with this recent NQ rally.
Price exiting the cloud entirely to either the upside or downside has strong implications. When exiting to the downside, the 20-sma and 50-sma have both rolled over and price is below both of them. The same is true for upside exits. Re-entering the cloud after a rally may indicate a reversal is near, especially if the forecasted rollover prices, particularly the 50-sma, agree.
This indicator should be used in conjunction with other technical analysis tools.
Additional Notes:
The original version of this script which will not be published was much heavier, cluttered, and is not as useful. This is the light version, hence the “LTE” suffix.
LTE stands for “long-term evolution” in telecommunications, not “light.”
Bar colorization (red, yellow, and green bars) was added using the MACD Hybrid BSH script which is another script I’ve published.
If you’re not sure what a bar is, it’s the same thing as a candle or a data point on a line chart. Every vertical line showing price action on the chart above is a bar and it is a bar chart.
sma = simple moving average
Rollover Strength Script:
// This source code is subject to the terms of the Mozilla Public License 2.0 at mozilla.org
// © Skipper86
//@version=5
indicator(title="Rollover Strength", shorttitle="Rollover Strength", overlay=false)
source = input.source(close)
length1 = input.int(20, "Length 1", minval=1)
length2 = input.int(50, "Length 2", minval=1)
RolloverPrice1 = source
RolloverPrice2 = source
RolloverStrength1 = source-RolloverPrice1
RolloverStrength2 = source-RolloverPrice2
RolloverStrength = RolloverStrength1 + RolloverStrength2
Color1 = color.rgb(155, 155, 155, 0)
Color2 = color.rgb(0, 0, 200, 0)
Color3 = color.rgb(0, 200, 0, 0)
plot(RolloverStrength, title="Rollover Strength", color=Color3)
hline(0, "Middle Band", color=Color1)
//End of Rollover Strength Script
Oxy CandlestickOxymoronic (oxy) candlesticks often appear at significant levels in a chart and can indicate increased probabilities of directional moves.
Typically, green candles are hollow and red candles are filled. An oxymoronic candle is colored bullishly but filled bearishly (solid green) or vice versa (hollow red).
Oxy flags occur when:
1) Price gaps up and closes lower than the open but above the last close. A solid green (or black) candle is bearish.
2) Price gaps down and closes higher than the open but below the last close. A hollow red candle is bullish.
An oxy candle indicates one of three things:
1) Price is going up (bullish oxy)
2) Price is going down (bearish oxy)
3) Price will return to this level (either)
#1 and #2 are the default meaning. If those don't play out then look for #3.
As is the case with most indicators, it is best not to use this indicator in isolation, but to combine it with other forms of analysis to increase your probabilities and to identify significant levels.
