Vmoon By:VasmaVmoon Indicator by Vasma
Overview:
The Vmoon indicator is an advanced tool designed for trend following and momentum trading, uniquely combining the Average True Range (ATR) with a Double Exponential Moving Average (DEMA). Unlike standard indicators, Vmoon provides traders with a dual-layered approach to detect trend reversals and confirm momentum, making it a robust solution for identifying trading opportunities in various market conditions.
Key Features and Calculation Methodology:
Average True Range (ATR) Based Trend Detection:
ATR Period: The user can define the ATR period, with a default setting of 12 periods. This period is crucial for accurately measuring market volatility over the chosen timeframe.
ATR Multiplier: Set at a default of 3.0, the multiplier adjusts the ATR range to determine dynamic support and resistance levels, allowing the indicator to adapt to different market conditions.
Custom ATR Calculation Method: Traders can choose between a simple moving average of the true range or the built-in ATR method. This flexibility allows for personalized risk management and signal sensitivity.
Upper and Lower Bands: These bands are calculated by adding and subtracting the ATR value from the price (hl2 by default). The bands serve as dynamic thresholds—when price breaks above the upper band, it suggests an upward trend, and breaking below the lower band suggests a downward trend.
The Vmoon indicator doesn't just plot these bands; it dynamically adjusts them based on price action, providing a real-time, adaptive system for trend detection.
Innovative Trend Identification:
Real-Time Trend Tracking: The indicator monitors price movements relative to the ATR bands, continuously updating the trend direction. This allows for quick identification of trend changes, which is critical in volatile markets.
Trend Change Detection: Vmoon captures shifts from upward to downward trends (and vice versa) with precision, generating actionable buy or sell signals. This feature helps traders stay ahead of market reversals.
Double Exponential Moving Average (DEMA) Integration:
DEMA Calculation: The Vmoon indicator uses a 200-period DEMA, which is known for reducing lag and providing a faster reaction to price changes compared to traditional moving averages. This ensures that the indicator responds promptly to emerging trends.
Crossover-Based Momentum Confirmation: The indicator generates signals based on price crossovers with the 200-period DEMA:
Buy Signal: A green triangle appears when the price crosses above the DEMA, signaling potential bullish momentum.
Sell Signal: A red triangle is displayed when the price crosses below the DEMA, indicating possible bearish momentum.
The DEMA component of Vmoon offers a long-term perspective on market momentum, acting as a filter to confirm the strength and direction of the trend.
Customizable Alerts:
Vmoon includes fully customizable alert conditions, allowing traders to stay informed about critical market movements:
Buy Signal Alert: Notifies when the trend changes from downward to upward, indicating a potential buying opportunity.
Sell Signal Alert: Alerts when the trend shifts from upward to downward, signaling a possible selling point.
General Trend Change Alert: Keeps traders aware of any direction changes, helping them to react quickly to potential reversals.
How to Use Vmoon:
Dynamic Trend Following: Use the ATR-based upper and lower bands as dynamic support and resistance levels. Monitor for breakouts to identify trend reversals.
Momentum Confirmation with DEMA: Validate trend signals by watching for price crossovers with the 200-period DEMA, ensuring that the trend is supported by strong momentum.
Signal Interpretation: Act on the buy and sell signals displayed on the chart, supported by optional alerts, to make informed trading decisions in real time.
Enhanced Customization Options:
Adjustable ATR Settings: Modify the ATR period and multiplier to better align with your trading strategy and market conditions.
Selectable ATR Calculation Method: Choose the ATR method that best suits your risk tolerance and market analysis approach.
Configurable Signal Display: Tailor the indicator to show or hide buy/sell signals based on your preferences.
Personalized Alerts: Set alerts that match your specific trading needs, ensuring that you never miss a significant market move.
Visual Representation:
Vmoon provides a clear and concise visual representation on the chart, with distinct markers for buy and sell signals, dynamic ATR bands, and the 200-period DEMA. This visualization helps traders quickly interpret market conditions and make timely decisions.
Why Vmoon is Unique:
Vmoon stands out by integrating ATR-based dynamic thresholds with the reduced-lag DEMA, offering a comprehensive solution for trend identification and momentum confirmation. This combination is not commonly found in standard indicators, and the flexibility in customization ensures that Vmoon can be adapted to suit various trading strategies and market environments. The proprietary logic behind Vmoon’s signal generation, particularly in how it adjusts to market volatility, is what makes it both powerful and worthy of protection as a closed-source script.
"price action" için komut dosyalarını ara
Auto Fib GOLDEN ENTRYAuto Fib "GOLDEN ENTRY ZONE" Indicator Review
Overview
The Auto Fib "GOLDEN ENTRY ZONE" is a TradingView indicator designed to streamline the Fibonacci retracement process for traders. By automatically identifying key Fibonacci levels and highlighting a "golden entry zone," this tool aims to simplify the trading process and enhance decision-making.
Features
Automatic Fibonacci Levels: The indicator automatically plots Fibonacci re-tracement levels on the chart based on recent price swings. This removes the need for manual Fibonacci drawing, which can be subjective and prone to errors.
Golden Entry Zone: The core feature is the "Golden Entry Zone," a highlighted area on the chart where the indicator suggests that the price is likely to reverse or find support/resistance. This zone is typically centered around key Fibonacci levels such as the 38.2% and 61.8% retracement levels, which are considered significant by many traders.
Customizable Settings: Users can adjust the indicator’s settings to fit their trading style. Options include modifying the Fibonacci levels used, the appearance of the zones, and the sensitivity of the automatic level detection.
Visual Enhancements: The indicator features clear and visually appealing graphics, with customizable colors and line styles to match user preferences and enhance readability.
Alerts and Notifications: The indicator can be set up to send alerts when price action enters the "Golden Entry Zone" or when specific Fibonacci levels are approached, allowing traders to act quickly.
Pros
Ease of Use: The automatic plotting of Fibonacci levels is a significant advantage, especially for traders who are new to Fibonacci analysis or those who prefer not to spend time drawing levels manually.
Strategic Entry Points: By highlighting the "Golden Entry Zone," the indicator helps traders identify potentially lucrative entry points with less guesswork involved.
Customization: The ability to customize settings ensures that the indicator can be tailored to fit different trading strategies and preferences.
Visual Clarity: The graphical representation of the Fibonacci levels and the entry zone is well-designed, making it easy to interpret and act on the signals provided.
Cons
Dependence on Recent Price Action: The accuracy of the Fibonacci levels and the "Golden Entry Zone" relies heavily on recent price swings. In highly volatile or trending markets, the indicator may need to be adjusted or supplemented with other tools.
Lagging Indicator: Like most indicators based on historical data, there can be a lag in the signal provided. Traders should use it in conjunction with other analysis methods to confirm signals.
Over-reliance Risk: Relying solely on the indicator without considering broader market context, fundamental analysis, or additional technical indicators can be risky.
Conclusion
The Auto Fib "GOLDEN ENTRY ZONE" indicator is a robust tool for traders who use Fibonacci retracement levels to inform their trading decisions. Its automatic plotting feature and focus on key entry zones simplify the process of identifying potential trading opportunities. However, as with any trading tool, it’s essential to use it as part of a broader strategy and consider additional market factors to enhance trading success.
For traders seeking a reliable and visually intuitive way to apply Fibonacci analysis, the Auto Fib "GOLDEN ENTRY ZONE" is a valuable addition to their TradingView toolkit.
Feel free to adjust or expand on any sections based on your specific experience with the indicator or additional details you’d like to include!
High and Low of Last 5 Trading Days### Indicator Description: High and Low of Last 5 Trading Days
**Indicator Name:** High and Low of Last 5 Trading Days
**Purpose:**
This indicator plots the high and low levels for each of the last 5 trading days on your TradingView chart. It helps traders to visualize important price levels from the recent trading history, which can act as potential support and resistance levels.
**Features:**
1. **Daily High and Low Levels:** Plots the high and low prices for each of the last 5 trading days.
2. **Unique Colors for Each Day:** Each trading day's high and low levels are color-coded uniquely for easy identification.
3. **Solid Lines:** The high and low levels are represented by solid lines for better visibility.
4. **Day Labels:** The lines are labeled with the corresponding day and whether it is a high or low level (e.g., "MON HI", "MON LO").
5. **Dynamic Updates:** The levels and labels are updated at the beginning of each new day, ensuring that the most recent 5 days are always displayed.
**Usage:**
- **Support and Resistance:** Identify key support and resistance levels based on the previous 5 days' high and low prices.
- **Trend Analysis:** Determine the recent price trend by observing the relative positioning of the daily high and low levels.
- **Price Action:** Analyze price action around these levels to make informed trading decisions.
**Configuration:**
- The indicator does not require any user input. It automatically calculates and displays the high and low levels for the past 5 trading days.
**Visual Elements:**
- **Lines:** Solid lines in different colors (red, green, teal, purple, orange) represent the high and low levels.
- **Labels:** Text labels at the right end of each line indicate the day and whether it is a high or low level (e.g., "MON HI", "TUE LO").
This indicator provides a clear visual representation of significant price levels from the recent trading history, aiding traders in their technical analysis and decision-making process.
Smart Money Concepts by WeloTradesThe "Smart Money Concepts by WeloTrades" indicator is designed to offer traders a comprehensive tool that integrates multiple advanced features to aid in market analysis. By combining order blocks, liquidity levels, fair value gaps, trendlines, and market structure analysis, the indicator provides a holistic approach to understanding market dynamics and making informed trading decisions.
Components and Their Integration:
Order Blocks and Breaker Blocks Detection
Functionality: Order blocks represent areas where significant buying or selling occurred, creating potential support or resistance zones. Breaker blocks signal potential reversals.
Integration: By detecting and visualizing these blocks, the indicator helps traders identify key levels where price might react, aiding in entry and exit decisions. The customizable settings allow traders to adjust the visibility and parameters to suit their specific trading strategy.
Liquidity Levels Analysis
Functionality: Liquidity levels indicate zones where significant price movements can occur due to the presence of large orders. These are areas where smart money might be executing trades.
Integration: By tracking these high-probability liquidity areas, traders can anticipate potential price movements. Customizable display limits and mitigation strategies ensure that the information is tailored to the trader’s needs, providing precise and actionable insights.
Fair Value Gaps (FVG)
Functionality: Fair value gaps highlight areas where there is an imbalance between buyers and sellers. These gaps often represent potential trading opportunities.
Integration: The ability to identify and analyze FVGs helps traders spot potential entries based on market inefficiencies. The touch and break detection functionalities provide further refinement, enhancing the precision of trading signals.
Trendlines
Functionality: Trendlines help in identifying the direction of the market and potential reversal points. The additional trendline adds a layer of confirmation for breaks or retests.
Integration: Automatically drawn trendlines assist traders in visualizing market trends and making decisions about potential entries and exits. The additional trendline for stronger confirmation reduces the risk of false signals, providing more reliable trading opportunities.
Market Structure Analysis
Functionality: Understanding market structure is crucial for identifying key support and resistance levels and overall market dynamics. This component displays internal, external, and composite market structures.
Integration: By automatically highlighting shifts in market structure, the indicator helps traders recognize important levels and potential changes in market direction. This analysis is critical for strategic planning and execution in trading.
Customizable Alerts
Functionality: Alerts ensure that traders do not miss significant market events, such as the formation or breach of order blocks, liquidity levels, and trendline interactions.
Integration: Customizable alerts enhance the user experience by providing timely notifications of key events. This feature ensures that traders can act quickly and efficiently, leveraging the insights provided by the indicator.
Interactive Visualization
Functionality: Customizable visual aspects of the indicator allow traders to tailor the display to their preferences and trading style.
Integration: This feature enhances user engagement and usability, making it easier for traders to interpret the data and make informed decisions. Personalization options like colors, styles, and display formats improve the overall effectiveness of the indicator.
How Components Work Together
Comprehensive Market Analysis
Each component of the indicator addresses a different aspect of market analysis. Order blocks and liquidity levels highlight potential support and resistance zones, while fair value gaps and trendlines provide additional context for potential entries and exits. Market structure analysis ties everything together by offering a broad view of market dynamics.
Synergistic Insights
The integration of multiple features allows for cross-validation of trading signals. For instance, an order block coinciding with a high-probability liquidity level and a fair value gap can provide a stronger signal than any of these features alone. This synergy enhances the reliability of the insights and trading signals generated by the indicator.
Enhanced Decision Making
By combining these advanced features into a single tool, traders are equipped with a powerful resource for making informed decisions. The customizable alerts and interactive visualization further support this by ensuring that traders can act quickly on the insights provided.
Order Blocks ( OB) & Breaker Blocks (BB) Visuals:
📝 OB Input Settings
📊 Timeframe #1
TF #1🕑: Enable or disable Timeframe 1.
What it is: A boolean input to toggle the use of the first timeframe.
What it does: Enables or disables Timeframe 1 for the OB settings.
How to use it: Check or uncheck the box to enable or disable.
📊 Timeframe 1 Selection
Timeframe #1🕑: Select the timeframe for Timeframe 1.
What it is: A dropdown to select the desired timeframe.
What it does: Sets the timeframe for Timeframe 1.
How to use it: Choose a timeframe from the dropdown list.
📊 Timeframe #2
TF #2🕑: Enable or disable Timeframe 2.
What it is: A boolean input to toggle the use of the second timeframe.
What it does: Enables or disables Timeframe 2 for the OB settings.
How to use it: Check or uncheck the box to enable or disable.
📊 Timeframe 2 Selection
Timeframe #2🕑: Select the timeframe for Timeframe 2.
What it is: A dropdown to select the desired timeframe.
What it does: Sets the timeframe for Timeframe 2.
How to use it: Choose a timeframe from the dropdown list.
Additional Info: Higher TF Chart & Lower TF Setting / Lower TF Chart & Higher TF Setting.
📏 Show OBs
OB (Length)📏: Toggle the display of Order Blocks.
What it is: A boolean input to enable or disable the display of Order Blocks.
What it does: Shows or hides Order Blocks based on the selected swing length.
How to use it: Check or uncheck the box to enable or disable.
📏 Swing Length Option
Swing Length Option: Select the swing length option.
What it is: A dropdown to choose between SHORT, MID, LONG, or CUSTOM.
What it does: Sets the length of swings for Order Blocks.
How to use it: Choose an option from the dropdown.
Additional Info: Default lengths are SHORT=10, MID=28, LONG=50.
🔧 Custom Swing Length
🔧custom: Specify a custom swing length.
What it is: An integer input for setting a custom swing length.
What it does: Overrides the default swing lengths if set to CUSTOM.
How to use it: Enter a custom integer value (only shown when CUSTOM is selected).
📛 Show BBs
BB (Method)📛: Toggle the display of Breaker Blocks.
What it is: A boolean input to enable or disable the display of Breaker Blocks.
What it does: Shows or hides Breaker Blocks.
How to use it: Check or uncheck the box to enable or disable.
📛 OB End Method
OB End Method: Select the method for determining the end of a Breaker Block.
What it is: A dropdown to choose between Wick and Close.
What it does: Sets the criteria for when a Breaker Block is considered mitigated.
How to use it: Choose an option from the dropdown.
Additional Info: Wicks: OB is mitigated when the price wicks through the OB Level. Close: OB is mitigated when the closing price is within the OB Level.
🔍 Max Bullish Zones
🔍Max Bullish: Set the maximum number of Bullish Order Blocks to display.
What it is: A dropdown to select the maximum number of Bullish Order Blocks.
What it does: Limits the number of Bullish Order Blocks shown on the chart.
How to use it: Choose a value from the dropdown (1-10).
🔍 Max Bearish Zones
🔍Max Bearish: Set the maximum number of Bearish Order Blocks to display.
What it is: A dropdown to select the maximum number of Bearish Order Blocks.
What it does: Limits the number of Bearish Order Blocks shown on the chart.
How to use it: Choose a value from the dropdown (1-10).
🟩 Bullish OB Color
Bullish OB Color: Set the color for Bullish Order Blocks.
What it is: A color picker to set the color of Bullish Order Blocks.
What it does: Changes the color of Bullish Order Blocks on the chart.
How to use it: Select a color from the color picker.
🟥 Bearish OB Color
Bearish OB Color: Set the color for Bearish Order Blocks.
What it is: A color picker to set the color of Bearish Order Blocks.
What it does: Changes the color of Bearish Order Blocks on the chart.
How to use it: Select a color from the color picker.
🔧 OB & BB Range
↔ OB & BB Range: Select the range option for OB and BB.
What it is: A dropdown to choose between RANGE and CUSTOM.
What it does: Sets how far the OB or BB should extend.
How to use it: Choose an option from the dropdown.
Additional Info: RANGE = Current price, CUSTOM = Adjustable Range.
🔧 Custom OB & BB Range
🔧Custom: Specify a custom range for OB and BB.
What it is: An integer input for setting a custom range.
What it does: Defines how far the OB or BB should go, based on a custom value.
How to use it: Enter a custom integer value (range: 1000-500000).
💬 Text Options
💬Text Options: Set text size and color for OB and BB.
What it is: A dropdown to select text size and a color picker to choose text color.
What it does: Changes the size and color of the text displayed for OB and BB.
How to use it: Select a size from the dropdown and a color from the color picker.
💬 Show Timeframe OB
Text: Toggle to display the timeframe of OB.
What it is: A boolean input to show or hide the timeframe text for OB.
What it does: Displays the timeframe information for Order Blocks on the chart.
How to use it: Check or uncheck the box to enable or disable.
💬 Show Volume
Volume: Toggle to display the volume of OB.
What it is: A boolean input to show or hide the volume information for Order Blocks.
What it does: Displays the volume information for Order Blocks on the chart.
How to use it: Check or uncheck the box to enable or disable.
Additional Info:
What it represents: The volume displayed represents the total trading volume that occurred during the formation of the Order Block. This can indicate the level of participation or interest in that price level.
How it's calculated: The volume is the sum of all traded volumes within the candles that form the Order Block.
What it means: Higher volume at an Order Block level may suggest stronger support or resistance. It shows the amount of trading activity and can be an indicator of the potential strength or validity of the Order Block.
Why it's shown: To give traders an idea of the market participation and to help assess the strength of the Order Block.
💬 Show Percentage
%: Toggle to display the percentage of OB.
What it is: A boolean input to show or hide the percentage information for Order Blocks.
What it does: Displays the percentage information for Order Blocks on the chart.
How to use it: Check or uncheck the box to enable or disable.
Additional Info:
What it represents: The percentage displayed usually represents the proportion of price movement relative to the Order Block.
How it's calculated: This can be the percentage move from the start to the end of the Order Block or the retracement level that price has reached relative to the Order Block's range.
What it means: It helps traders understand the extent of price movement within the Order Block and can indicate the significance of the price level.
Why it's shown: To provide a clearer understanding of the price dynamics and the importance of the Order Block within the overall price movement.
Additional Information
Volume Example: If an Order Block forms over three candles with volumes of 100, 150, and 200, the total volume displayed for that Order Block would be 450.
Percentage Example: If the price moves from 100 to 110 within an Order Block, and the total range of the Order Block is from 100 to 120, the percentage shown might be 50% (since the price has moved halfway through the Order Block's range).
Liquidity Levels visuals:
📊 Liquidity Levels Input Settings
📊 Current Timeframe
TF #1🕑: Enable or disable the current timeframe.
What it is: A boolean input to toggle the use of the current timeframe.
What it does: Enables or disables the display of liquidity levels for the current timeframe.
How to use it: Check or uncheck the box to enable or disable.
📊 Higher Timeframe
Higher Timeframe: Select the higher timeframe for liquidity levels.
What it is: A dropdown to select the desired higher timeframe.
What it does: Sets the higher timeframe for liquidity levels.
How to use it: Choose a timeframe from the dropdown list.
📏 Liquidity Length Option
📏Liquidity Length: Select the length for liquidity levels.
What it is: A dropdown to choose between SHORT, MID, LONG, or CUSTOM.
What it does: Sets the length of swings for liquidity levels.
How to use it: Choose an option from the dropdown.
Additional Info: Default lengths are SHORT=10, MID=28, LONG=50.
🔧 Custom Liquidity Length
🔧custom: Specify a custom length for liquidity levels.
What it is: An integer input for setting a custom swing length.
What it does: Overrides the default liquidity lengths if set to CUSTOM.
How to use it: Enter a custom integer value (only shown when CUSTOM is selected).
📛 Mitigation Method
📛Mitigation (Method): Select the method for determining the mitigation of liquidity levels.
What it is: A dropdown to choose between Close and Wick.
What it does: Sets the criteria for when a liquidity level is considered mitigated.
How to use it: Choose an option from the dropdown.
Additional Info:
Wick: Level is mitigated when the price wicks through the level.
Close: Level is mitigated when the closing price is within the level.
📛 Display Mitigated Levels
-: Select to display or hide mitigated levels.
What it is: A dropdown to choose between Remove and Show.
What it does: Displays or hides mitigated liquidity levels.
How to use it: Choose an option from the dropdown.
Additional Info:
Remove: Hide mitigated levels.
Show: Display mitigated levels.
🔍 Max Buy Side Liquidity
🔍Max Buy Side Liquidity: Set the maximum number of Buy Side Liquidity Levels to display.
What it is: An integer input to set the maximum number of Buy Side Liquidity Levels.
What it does: Limits the number of Buy Side Liquidity Levels shown on the chart.
How to use it: Enter a value between 0 and 50.
🟦 Buy Side Liquidity Color
Buy Side Liquidity Color: Set the color for Buy Side Liquidity Levels.
What it is: A color picker to set the color of Buy Side Liquidity Levels.
What it does: Changes the color of Buy Side Liquidity Levels on the chart.
How to use it: Select a color from the color picker.
Additional Info:
Tooltip: Set the maximum number of Buy Side Liquidity Levels to display. Default: 5, Min: 1, Max: 50.
If liquidity levels are not displayed as expected, try increasing the max count.
🔍 Max Sell Side Liquidity
🔍Max Sell Side Liquidity: Set the maximum number of Sell Side Liquidity Levels to display.
What it is: An integer input to set the maximum number of Sell Side Liquidity Levels.
What it does: Limits the number of Sell Side Liquidity Levels shown on the chart.
How to use it: Enter a value between 0 and 50.
🟥 Sell Side Liquidity Color
Sell Side Liquidity Color: Set the color for Sell Side Liquidity Levels.
What it is: A color picker to set the color of Sell Side Liquidity Levels.
What it does: Changes the color of Sell Side Liquidity Levels on the chart.
How to use it: Select a color from the color picker.
Additional Info:
Tooltip: Set the maximum number of Sell Side Liquidity Levels to display. Default: 5, Min: 1, Max: 50.
If liquidity levels are not displayed as expected, try increasing the max count.
✂ Box Style (Height)
✂ Box Style (↕): Set the box height style for liquidity levels.
What it is: A float input to set the height of the boxes.
What it does: Adjusts the height of the boxes displaying liquidity levels.
How to use it: Enter a value between -50 and 50.
Additional Info: Default value is -5.
📏 Box Length
b: Set the box length of liquidity levels.
What it is: An integer input to set the length of the boxes.
What it does: Adjusts the length of the boxes displaying liquidity levels.
How to use it: Enter a value between 0 and 500.
Additional Info: Default value is 20.
⏭ Extend Liquidity Levels
Extend ⏭: Toggle to extend liquidity levels beyond the current range.
What it is: A boolean input to enable or disable the extension of liquidity levels.
What it does: Extends liquidity levels beyond their default range.
How to use it: Check or uncheck the box to enable or disable.
Additional Info: Extend liquidity levels beyond the current range.
💬 Text Options
💬 Text Options: Set text size and color for liquidity levels.
What it is: A dropdown to select text size and a color picker to choose text color.
What it does: Changes the size and color of the text displayed for liquidity levels.
How to use it: Select a size from the dropdown and a color from the color picker.
💬 Show Text
Text: Toggle to display text for liquidity levels.
What it is: A boolean input to show or hide the text for liquidity levels.
What it does: Displays the text information for liquidity levels on the chart.
How to use it: Check or uncheck the box to enable or disable.
💬 Show Volume
Volume: Toggle to display the volume of liquidity levels.
What it is: A boolean input to show or hide the volume information for liquidity levels.
What it does: Displays the volume information for liquidity levels on the chart.
How to use it: Check or uncheck the box to enable or disable.
Additional Info:
What it represents: The volume displayed represents the total trading volume that occurred during the formation of the liquidity level. This can indicate the level of participation or interest in that price level.
How it's calculated: The volume is the sum of all traded volumes within the candles that form the liquidity level.
What it means: Higher volume at a liquidity level may suggest stronger support or resistance. It shows the amount of trading activity and can be an indicator of the potential strength or validity of the liquidity level.
Why it's shown: To give traders an idea of the market participation and to help assess the strength of the liquidity level.
💬 Show Percentage
%: Toggle to display the percentage of liquidity levels.
What it is: A boolean input to show or hide the percentage information for liquidity levels.
What it does: Displays the percentage information for liquidity levels on the chart.
How to use it: Check or uncheck the box to enable or disable.
Additional Info:
What it represents: The percentage displayed usually represents the proportion of price movement relative to the liquidity level.
How it's calculated: This can be the percentage move from the start to the end of the liquidity level or the retracement level that price has reached relative to the liquidity level's range.
What it means: It helps traders understand the extent of price movement within the liquidity level and can indicate the significance of the price level.
Why it's shown: To provide a clearer understanding of the price dynamics and the importance of the liquidity level within the overall price movement.
Fair Value Gaps visuals:
📊 Fair Value Gaps Input Settings
📊 Show FVG
TF #1🕑: Enable or disable Fair Value Gaps for Timeframe 1.
What it is: A boolean input to toggle the display of Fair Value Gaps.
What it does: Shows or hides Fair Value Gaps on the chart.
How to use it: Check or uncheck the box to enable or disable.
📊 Select Timeframe
Timeframe: Select the timeframe for Fair Value Gaps.
What it is: A dropdown to select the desired timeframe.
What it does: Sets the timeframe for Fair Value Gaps.
How to use it: Choose a timeframe from the dropdown list.
Additional Info: Higher TF Chart & Lower TF Setting or Lower TF Chart & Higher TF Setting.
📛 FVG Break Method
📛FVG Break (Method): Select the method for determining when an FVG is mitigated.
What it is: A dropdown to choose between Touch, Wicks, Close, or Average.
What it does: Sets the criteria for when a Fair Value Gap is considered mitigated.
How to use it: Choose an option from the dropdown.
Additional Info:
Touch: FVG is mitigated when the price touches the gap.
Wicks: FVG is mitigated when the price wicks through the gap.
Close: FVG is mitigated when the closing price is within the gap.
Average: FVG is mitigated when the average price (average of high and low) is within the gap.
📛 Show Mitigated FVG
show: Toggle to display mitigated FVGs.
What it is: A boolean input to show or hide mitigated Fair Value Gaps.
What it does: Displays or hides mitigated Fair Value Gaps.
How to use it: Check or uncheck the box to enable or disable.
📛 Fill FVG
Fill: Toggle to fill Fair Value Gaps.
What it is: A boolean input to fill the Fair Value Gaps with color.
What it does: Adds a color fill to the Fair Value Gaps.
How to use it: Check or uncheck the box to enable or disable.
📛 Shade FVG
Shade: Toggle to shade Fair Value Gaps.
What it is: A boolean input to shade the Fair Value Gaps.
What it does: Adds a shade effect to the Fair Value Gaps.
How to use it: Check or uncheck the box to enable or disable.
Additional Info: Select the method to break FVGs and toggle the visibility of FVG Breaks (fill FVG and/or shade FVG).
🔍 Max Bullish FVG
🔍Max Bullish FVG: Set the maximum number of Bullish Fair Value Gaps to display.
What it is: An integer input to set the maximum number of Bullish Fair Value Gaps.
What it does: Limits the number of Bullish Fair Value Gaps shown on the chart.
How to use it: Enter a value between 0 and 50.
🔍 Max Bearish FVG
🔍Max Bearish FVG: Set the maximum number of Bearish Fair Value Gaps to display.
What it is: An integer input to set the maximum number of Bearish Fair Value Gaps.
What it does: Limits the number of Bearish Fair Value Gaps shown on the chart.
How to use it: Enter a value between 0 and 50.
🟥 Bearish FVG Color
Bearish FVG Color: Set the color for Bearish Fair Value Gaps.
What it is: A color picker to set the color of Bearish Fair Value Gaps.
What it does: Changes the color of Bearish Fair Value Gaps on the chart.
How to use it: Select a color from the color picker.
Additional Info:
Tooltip: Set the maximum number of Bearish Fair Value Gaps to display. Default: 5, Min: 1, Max: 50.
If Fair Value Gaps are not displayed as expected, try increasing the max count.
🟦 Bullish FVG Color
Bullish FVG Color: Set the color for Bullish Fair Value Gaps.
What it is: A color picker to set the color of Bullish Fair Value Gaps.
What it does: Changes the color of Bullish Fair Value Gaps on the chart.
How to use it: Select a color from the color picker.
Additional Info:
Tooltip: Set the maximum number of Bullish Fair Value Gaps to display. Default: 5, Min: 1, Max: 50.
If Fair Value Gaps are not displayed as expected, try increasing the max count.
📏 FVG Range
↔ FVG Range: Set the range for Fair Value Gaps.
What it is: An integer input to set the range of the Fair Value Gaps.
What it does: Adjusts the range of the Fair Value Gaps displayed.
How to use it: Enter a value between 0 and 100.
Additional Info: Adjustable length only works when both RANGE & EXTEND display OFF. Range=current price, Extend=Full Range.
⏭ Extend FVG
Extend⏭: Toggle to extend Fair Value Gaps beyond the current range.
What it is: A boolean input to enable or disable the extension of Fair Value Gaps.
What it does: Extends Fair Value Gaps beyond their default range.
How to use it: Check or uncheck the box to enable or disable.
⏯ FVG Range
Range⏯: Toggle the range of Fair Value Gaps.
What it is: A boolean input to enable or disable the range display for Fair Value Gaps.
What it does: Sets the range of Fair Value Gaps displayed.
How to use it: Check or uncheck the box to enable or disable.
↕ Max Width
↕ Max Width: Set the maximum width of Fair Value Gaps.
What it is: A float input to set the maximum width of Fair Value Gaps.
What it does: Limits the width of Fair Value Gaps as a percentage of the price range.
How to use it: Enter a value between 0 and 5.0.
Additional Info: FVGs wider than this value will be ignored.
♻ Filter FVG
Filter FVG ♻: Toggle to filter out small Fair Value Gaps.
What it is: A boolean input to filter out small Fair Value Gaps.
What it does: Ignores Fair Value Gaps smaller than the specified max width.
How to use it: Check or uncheck the box to enable or disable.
➖ Mid Line Style
➖Mid Line Style: Select the style of the mid line for Fair Value Gaps.
What it is: A dropdown to choose between Solid, Dashed, or Dotted.
What it does: Sets the style of the mid line within Fair Value Gaps.
How to use it: Choose an option from the dropdown.
🎨 Mid Line Color
Mid Line Color: Set the color for the mid line within Fair Value Gaps.
What it is: A color picker to set the color of the mid line.
What it does: Changes the color of the mid line within Fair Value Gaps.
How to use it: Select a color from the color picker.
Additional Information
Mitigation Methods: Each method (Touch, Wicks, Close, Average) provides different criteria for when a Fair Value Gap is considered mitigated, helping traders to understand the dynamics of price movements within gaps.
Volume and Percentage: Displaying volume and percentage information for Fair Value Gaps helps traders gauge the strength and significance of these gaps in relation to trading activity and price movements.
Trendlines visuals:
📊 Trendlines Input Settings
📊 Show Trendlines
Trendlines & Trendlines Difference(%) ↕: Enable or disable trendlines and set the percentage difference from the first trendline.
What it is: A boolean input to toggle the display of trendlines.
What it does: Shows or hides trendlines on the chart and allows setting a percentage difference from the first trendline.
How to use it: Check or uncheck the box to enable or disable.
Additional Info: The percentage difference determines the distance of the second trendline from the first one.
📏 Trendline Length Option
📏Trendline Length: Select the length for trendlines.
What it is: A dropdown to choose between SHORT, MID, LONG, or CUSTOM.
What it does: Sets the length of trendlines.
How to use it: Choose an option from the dropdown.
Additional Info: Default lengths are SHORT=50, MID=100, LONG=200.
🔧 Custom Trendline Length
🔧custom: Specify a custom length for trendlines.
What it is: An integer input for setting a custom trendline length.
What it does: Overrides the default trendline lengths if set to CUSTOM.
How to use it: Enter a custom integer value (only shown when CUSTOM is selected).
🔍 Max Bearish Trendlines
🔍Max Trendlines Bearish: Set the maximum number of bearish trendlines to display.
What it is: A dropdown to select the maximum number of bearish trendlines.
What it does: Limits the number of bearish trendlines shown on the chart.
How to use it: Choose a value from the dropdown (2-20).
🟩 Bearish Trendline Color
Bearish Trendline Color: Set the color for bearish trendlines.
What it is: A color picker to set the color of bearish trendlines.
What it does: Changes the color of bearish trendlines on the chart.
How to use it: Select a color from the color picker.
Additional Info: Adjust to control how many bearish trendlines are displayed.
🔍 Max Bullish Trendlines
🔍Max Trendlines Bullish: Set the maximum number of bullish trendlines to display.
What it is: A dropdown to select the maximum number of bullish trendlines.
What it does: Limits the number of bullish trendlines shown on the chart.
How to use it: Choose a value from the dropdown (2-20).
🟥 Bullish Trendline Color
Bullish Trendline Color: Set the color for bullish trendlines.
What it is: A color picker to set the color of bullish trendlines.
What it does: Changes the color of bullish trendlines on the chart.
How to use it: Select a color from the color picker.
Additional Info: Adjust to control how many bullish trendlines are displayed.
📐 Degrees Text
📐Degrees ° (💬 Size): Enable or disable degrees text and set its size and color.
What it is: A boolean input to show or hide the degrees text for trendlines.
What it does: Displays the degrees text for trendlines.
How to use it: Check or uncheck the box to enable or disable.
📏 Text Size for Degrees
Text Size: Set the text size for degrees on trendlines.
What it is: A dropdown to select the size of the degrees text.
What it does: Changes the size of the degrees text displayed for trendlines.
How to use it: Choose a size from the dropdown (XS, S, M, L, XL).
🎨 Degrees Text Color
Degrees Text Color: Set the color for the degrees text on trendlines.
What it is: A color picker to set the color of the degrees text.
What it does: Changes the color of the degrees text on the chart.
How to use it: Select a color from the color picker.
♻ Filter Degrees
♻ Filter Degrees °: Enable or disable angle filtering and set the angle range.
What it is: A boolean input to filter trendlines by their angle.
What it does: Shows only trendlines within a specified angle range.
How to use it: Check or uncheck the box to enable or disable.
Additional Info: Angles outside this range will be filtered out.
🔢 Angle Range
Angle Range: Set the angle range for filtering trendlines.
What it is: Two float inputs to set the minimum and maximum angle for trendlines.
What it does: Defines the range of angles for which trendlines will be shown.
How to use it: Enter values for the minimum and maximum angles.
➖ Line Style
➖Style #1 & #2: Select the style of the primary and secondary trendlines.
What it is: Two dropdowns to choose between Solid, Dashed, or Dotted for the trendlines.
What it does: Sets the style of the primary and secondary trendlines.
How to use it: Choose a style from each dropdown.
📏 Line Thickness
: Set the thickness for the trendlines.
What it is: An integer input to set the thickness of the trendlines.
What it does: Adjusts the thickness of the trendlines displayed on the chart.
How to use it: Enter a value between 1 and 5.
Additional Information
Trendline Percentage Difference: Setting a percentage difference helps in analyzing the relative position and angle of trendlines.
Filtering by Angle: This feature allows focusing on trendlines within a specific angle range, enhancing the clarity of trend analysis.
BOS & CHOCH Market Structure visuals:
📊 BOS & CHOCH Market Structure Input Settings
📏 Market Structure Length Option
📏Market Structure: Select the market structure length option.
What it is: A dropdown to choose between INTERNAL, EXTERNAL, ALL, CUSTOM, or NONE.
What it does: Sets the type of market structure to be displayed.
How to use it: Choose an option from the dropdown.
Additional Info:
INTERNAL: Only internal structure.
EXTERNAL: Only external structure.
ALL: Both internal and external structures.
CUSTOM: Custom lengths.
NONE: No structure.
🔧 Custom Internal Length
🔧Custom Internal: Specify a custom length for internal market structure.
What it is: An integer input for setting a custom internal length.
What it does: Defines the length of internal market structures if CUSTOM is selected.
How to use it: Enter a custom integer value (only shown when CUSTOM is selected).
💬 Internal Label Size
💬Internal Label Size: Set the label size for internal market structures.
What it is: A dropdown to select the size of the labels.
What it does: Changes the size of the labels for internal market structures.
How to use it: Choose a size from the dropdown (XS, S, M, L, XL).
🟩 Internal Bullish Color
Internal Bullish Color: Set the color for bullish internal market structures.
What it is: A color picker to set the color of bullish internal market structures.
What it does: Changes the color of bullish internal market structures on the chart.
How to use it: Select a color from the color picker.
🟥 Internal Bearish Color
Internal Bearish Color: Set the color for bearish internal market structures.
What it is: A color picker to set the color of bearish internal market structures.
What it does: Changes the color of bearish internal market structures on the chart.
How to use it: Select a color from the color picker.
🔧 Custom External Length
🔧Custom External: Specify a custom length for external market structure.
What it is: An integer input for setting a custom external length.
What it does: Defines the length of external market structures if CUSTOM is selected.
How to use it: Enter a custom integer value (only shown when CUSTOM is selected).
💬 External Label Size
💬External Label Size: Set the label size for external market structures.
What it is: A dropdown to select the size of the labels.
What it does: Changes the size of the labels for external market structures.
How to use it: Choose a size from the dropdown (XS, S, M, L, XL).
🟩 External Bullish Color
External Bullish Color: Set the color for bullish external market structures.
What it is: A color picker to set the color of bullish external market structures.
What it does: Changes the color of bullish external market structures on the chart.
How to use it: Select a color from the color picker.
🟥 External Bearish Color
External Bearish Color: Set the color for bearish external market structures.
What it is: A color picker to set the color of bearish external market structures.
What it does: Changes the color of bearish external market structures on the chart.
How to use it: Select a color from the color picker.
📐 Show Equal Highs and Lows
EQL & EQH📐: Toggle visibility for equal highs and lows.
What it is: A boolean input to show or hide equal highs and lows.
What it does: Displays or hides equal highs and lows on the chart.
How to use it: Check or uncheck the box to enable or disable.
📏 Equal Highs and Lows Threshold
Equal Highs and Lows Threshold: Set the threshold for equal highs and lows.
What it is: A float input to set the threshold for equal highs and lows.
What it does: Defines the range within which highs and lows are considered equal.
How to use it: Enter a value between 0 and 10.
💬 Label Size for Equal Highs and Lows
💬Label Size for Equal Highs and Lows: Set the label size for equal highs and lows.
What it is: A dropdown to select the size of the labels.
What it does: Changes the size of the labels for equal highs and lows.
How to use it: Choose a size from the dropdown (XS, S, M, L, XL).
🟩 Bullish Color for Equal Highs and Lows
Bullish Color for Equal Highs and Lows: Set the color for bullish equal highs and lows.
What it is: A color picker to set the color of bullish equal highs and lows.
What it does: Changes the color of bullish equal highs and lows on the chart.
How to use it: Select a color from the color picker.
🟥 Bearish Color for Equal Highs and Lows
Bearish Color for Equal Highs and Lows: Set the color for bearish equal highs and lows.
What it is: A color picker to set the color of bearish equal highs and lows.
What it does: Changes the color of bearish equal highs and lows on the chart.
How to use it: Select a color from the color picker.
📏 Show Swing Points
Swing Points📏: Toggle visibility for swing points.
What it is: A boolean input to show or hide swing points.
What it does: Displays or hides swing points on the chart.
How to use it: Check or uncheck the box to enable or disable.
📏 Swing Points Length Option
Swing Points Length Option: Select the length for swing points.
What it is: A dropdown to choose between SHORT, MID, LONG, or CUSTOM.
What it does: Sets the length of swing points.
How to use it: Choose an option from the dropdown.
Additional Info: Default lengths are SHORT=10, MID=28, LONG=50.
💬 Swing Points Label Size
💬Swing Points Label Size: Set the label size for swing points.
What it is: A dropdown to select the size of the labels.
What it does: Changes the size of the labels for swing points.
How to use it: Choose a size from the dropdown (XS, S, M, L, XL).
🎨 Swing Points Color
Swing Points Color: Set the color for swing points.
What it is: A color picker to set the color of swing points.
What it does: Changes the color of swing points on the chart.
How to use it: Select a color from the color picker.
🔧 Custom Swing Points Length
🔧Custom Swings: Specify a custom length for swing points.
What it is: An integer input for setting a custom length for swing points.
What it does: Defines the length of swing points if CUSTOM is selected.
How to use it: Enter a custom integer value (only shown when CUSTOM is selected).
Additional Information
Market Structure Types: Understanding internal and external structures helps in analyzing different market behaviors.
Equal Highs and Lows: This feature identifies areas where price action is balanced, which can be significant for trading strategies.
Swing Points: Highlighting swing points aids in recognizing significant market reversals or continuations.
Benefits
Enhance your trading strategy by visualizing smart money's influence on price movements.
Make informed decisions with real-time data on significant market structures.
Reduce manual analysis with automated detection of key trading signals.
Ideal For
Traders looking for an edge in forex, equities, and cryptocurrency markets by understanding the underlying forces driving market dynamics.
Acknowledgements
Special thanks to these amazing creators for inspiration and their creations:
I want to thank these amazing creators for creating there amazing indicators , that inspired me and also gave me a head start by making this indicator! Without their amazing indicators it wouldn't be possible!
Flux Charts: Volumized Order Blocks
LuxAlgo: Trend Lines
UAlgo: Fair Value Gaps (FVG)
By Leviathan: Market Structure
Sonarlab: Liquidity Levels
Note
Remember to always backtest the indicator first before integrating it into your strategy! For any questions about the indicator, please feel free to ask for assistance.
[Suitable Hope] Crypto Upside Model 3.0The "Crypto Upside Model 3.0" indicator dynamically calculates the potential price of any cryptocurrency based on various percentages of Ethereum or Bitcoin's market capitalization.
By fetching and analyzing marketcap data from TradingView sources, it allows traders to visualize potential price targets if their chosen cryptocurrency reaches specific market dominance levels. This tool is designed for daily timeframe analysis and can be used to set informed price expectations and strategic investment goals, providing valuable insights for long-term investment planning.
Why using the Crypto Upside Model 3.0?
Strategic Planning: Helps traders and investors set realistic price targets and investment goals by visualizing potential market cap scenarios.
Informed Decision-Making: Provides a data-driven approach to understanding how a cryptocurrency might perform relative to major assets like Bitcoin and Ethereum.
Customizable Analysis: Allows users to choose different comparison assets (ETH or BTC) and visualize various market cap dominance percentages, offering tailored insights.
Daily Timeframe Focus: Ideal for swing traders and long-term investors who operate on a daily analysis timeframe, providing relevant and actionable data.
Bull Markets: Identify potential price targets if your cryptocurrency's market cap increases significantly.
Bear Markets: Assess how much value could be retained relative to major cryptocurrencies.
Strategic Entry/Exit Points: Use the visualized targets to plan entry or exit points in your trading strategy.
Comparative Advantage
Dynamic Adaptation: Unlike fixed indicators, this tool adapts to any active chart, making it versatile for multiple cryptocurrencies.
Market Cap Insights: Provides a unique perspective by linking price targets to market cap dominance, a critical factor in the crypto market.
User Instructions
Setup: Add the " Upside Model 3.0" indicator to your TradingView chart.
Configuration: Use the input settings to select the comparison cryptocurrency (ETH or BTC) and enable the desired market cap percentage plots.
Analysis: The indicator will display potential price targets based on the selected market cap percentages, providing a visual guide for setting price expectations.
Limitations
Marketcap Data Availability: The indicator relies on marketcap data from TradingView, which may not be available for all cryptocurrencies. If the data is unavailable, the indicator will not function for that asset. This tool is more likely to work with older, established cryptocurrencies, as marketcap data for newer cryptocurrencies may not yet be available.
Daily Timeframe Restriction: The indicator is designed to work exclusively on the daily timeframe, limiting its applicability for intraday trading.
Assumptions of Market Dynamics: The calculations assume a direct correlation between market dominance and price, which may not account for other market dynamics and external factors influencing prices.
Data Accuracy: The accuracy of the indicator depends on the reliability of the data provided by TradingView, which may sometimes experience delays or inaccuracies.
Currently available cryptocurrencies: Bitcoin, Ethereum, Solana, Binance Coin, Cardano, Ripple, Polkadot, Avalanche, Chainlink, Litecoin, Dogecoin, Terra, Uniswap, VeChain, Stellar, Internet Computer, Hedera, Filecoin, Monero, Aave, TRON, NEAR Protocol, Compound, Maker,... For all compatible cryptocurrencies, please consult CRYPTOCAP's documentation.
Final notes
Although various sources ask a payment or user data for similar kind of private indicators, this one is entirely free and open source. "Uncanny" isn't it? I hope this indicator will provide you value. Feel free to leave a message if you have any questions or constructive feedback.
Examples of how I use this indicator
When using ETH's historical price as a reference compared to Bitcoin's marketcap, we can notice that price generally has been held between the +-30% and 50% lines of BTC's marketcap. If history is repeating again, we can expect major resistances around the 50% looking ahead into the future. This for me would be a great area to potentially reduce my ETH spot position.
When using SOL's historical price action, we can notice that the 15% line of ETH's marketcap has been a top in the previous cycle. Today SOL (July 2024), is back at this level. Could this be a top again or could price break this 15% level and head perhaps towards 30% which currently sits around $260? Time will tell.
These are 2 simple example of how I interpret the data. I'm keen to hear what other findings with other pairs you can find.
Bitcoin Destiny Line Model v1.1The Bitcoin Destiny Line Model
Table of Contents
1. Overview
2. Analytical and Technical Techniques Employed
3. Objectives of the Bitcoin Destiny Line Model
4. Key Technical Components and Functionalities
4.1. Bitcoin Destiny Line and Heatmap
4.2. Halving Cycles Markers
4.3. Dynamic Repricing Rails with Diminishing Volatility Adjustment
4.4. Seasonal Dynamics
4.5. Support and Resistance Zones
4.6. Market Action Indicators
4.7. Cycle Projections
4.8. Heatmap Only
5. Settings
6. Different Strategies to Utilize the Model
6.1. Value-Based Entry Strategy
6.2. Long-Term Position Strategy
6.3. Scaling Out Strategy
6.4. Portfolio Rebalancing Strategy
6.5. Bear Market Strategy
6.6. Short-Term Trading Strategy
7. Recommendations and Disclosures
1. Overview
The Bitcoin Destiny Line Model is a technical analysis toolset designed exclusively for Bitcoin. It integrates a comprehensive suite of analytical methodologies to provide deep insights into Bitcoin's market dynamics focusing on long-term investment strategies.
By analyzing historical data through various technical frameworks, the model helps investors gain insight into the current market structure, cycle dynamics, direction, and trend of Bitcoin, assisting investors and traders with data-driven decision-making.
2. Analytical and Technical Techniques Employed
The model integrates a range of analytical techniques:
Cycle Analysis - Centers on the Bitcoin halving event to anticipate phases within the Bitcoin cycle.
Logarithmic Regression Analysis - Calculates the logarithmic growth of Bitcoin over time.
Standard Deviation - Measures how significantly the price action differs from the long-term logarithmic trend.
Fibonacci Analysis - Identifies support and resistance levels.
Multi-Timeframe Momentum - Analyzes overbought or oversold conditions across multiple periods.
Trendlines - Draws trendlines from expected cycle lows to expected cycle highs extending logarithmic and deviation lines into the future as projection lines.
3. Objectives of the Bitcoin Destiny Line Model
The model is crafted to deliver an empirical framework for Bitcoin investing:
Bitcoin Market Structure - Offers insights into Bitcoin’s market structure.
Identify Value Opportunities and Risk Areas - Pinpoints potential value-entry opportunities and recognizes when the market is over-extended.
Leverage Market Cycles - Utilizes knowledge of Bitcoin’s seasonal dynamics and halving cycles to inform investment strategies.
Mitigate Downside Risk - Provides indicators for potential market corrections, aiding in risk management and avoidance of buying at peak prices.
4. Key Technical Components and Functionalities
4.1. Bitcoin Destiny Line and Heatmap
The cycle low to cycle high line with a risk-based color-coded heatmap serves as a central reference for Bitcoin’s price trajectory.
It emphasizes the long-term trend indicating areas of value in cool colors and areas of risk in warm colors.
4.2. Halving Cycles Markers
Bitcoin halving events are marked on the chart with vertical lines forming anchor points for cycle analysis.
4.3. Dynamic Repricing Rails with Diminishing Volatility Adjustment
Repricing rails based on the long-term logarithmic trend highlight the rails on which Bitcoin's price will reprice up or down.
Adjusts to the diminishing volatility of the asset over time as it matures.
4.4. Seasonal Dynamics
Integrates Bitcoin's inherent seasonal trends to provide additional context for market conditions aligning with broader market analysis.
Understanding Bitcoin’s seasons:
Spring Awakening - The initial recovery phase where the market begins to rebound from a bear market showing early signs of improvement. This is an ideal time for cautious optimism. Investors should consider gradually increasing their positions in Bitcoin, focusing on accumulation as confidence in market recovery grows.
Blossom Boom - A market bottom has been confirmed by now and market interest continues to pick up ahead of the Bitcoin halving. This typically presents a great opportunity for investors to position themselves advantageously ahead of expected price movements. It’s a good time to review and adjust portfolios to align with anticipated trends.
Midsummer Momentum - This phase follows the Bitcoin halving, characterized by a sideways to upward price trend often supported by heightened interest and media coverage. It represents potentially the last opportunity in the cycle for investors to purchase Bitcoin at lower price levels unlikely to be seen again. Investors should closely monitor the market for value buying opportunities to bolster their long-term investment strategies.
Rocket Rise - A phase where Bitcoin prices are likely to surge dramatically driven by a mix of Fear of Missing Out (FOMO) among new investors and widespread media hype. The strategy here is twofold: long-term holders should hold steady to reap maximum gains whereas more speculative investors might look to capitalize on the volatility by taking profits at optimal moments before a potential correction.
Winter Whispers - Following a bull run, the market begins to cool, marked by some investors taking profits and consequently increasing price fluctuations and volatility. During this time, investors should remain vigilant, tightening stop-loss orders to safeguard gains. This phase may be suitable for those looking to liquidate a portion of their long-term investments. However, for an investor to be selling the majority of their Bitcoin holdings is generally not advisable as it could preclude benefiting from potential future appreciations.
Deep Freeze - The market enters a bearish phase with significant price declines and market corrections. It's a period of consolidation and resetting of price levels. The end of this stage could typically be seen as a buying opportunity for the long-term investor. Accumulating Bitcoin during this phase can be advantageous as prices are lower and provide a foundation for significant growth in the next cycle.
4.5. Support and Resistance Zones
Calculates key levels that inform stop-loss placements and trading size decisions enhancing trading strategy around the Bitcoin Destiny Line.
4.6. Market Action Indicators
Suggests potential trading actions for different market phases aiding traders in identifying investment/trading opportunities.
Risk Indicator - Signals when prices are extremely over-extended helping to avoid entries during potential peak valuations.
4.7. Cycle Projections
Extends repricing levels into the future providing a visual forecast of expected price movements and enhancing strategic planning capabilities.
Cycle-High Price Projection Range - Provides a probabilistic range for upcoming cycle peaks based on historical trends and current market analysis.
4.8. Heatmap Only
It is also possible to plot the heatmap only as a background or as a bar in a second indicator.
4.9. Complete Visual View
A complete view of all key elements switched on the model.
5. Settings
Users can select to only show specific elements or all elements of the model.
They can set the sensitivity of some of the model elements and adjust certain view settings.
6. Different Strategies to Utilize the Model
The following strategies are enabled by the Bitcoin Destiny Line model:
6.1. Value-Based Entry Strategy
Investors can optimize their investment strategy by deploying investable cash either as a lump sum or on a dollar-cost averaging basis upon the display of a value indicator (Up-Triangles) which signals the highest probability for value entries.
6.2. Long-Term Position Strategy
As an alternative, investors may prefer to continue deploying investable funds while cooler colors (green or blue) are displayed on the value map, indicating favorable conditions for long-term positions.
6.3. Scaling Out Strategy
Investors may choose to scale out some of their investment upon the display of a risk indicator (circles) reducing exposure to potential downturns.
6.4. Portfolio Rebalancing Strategy
A sound strategy can also be to follow a portfolio rebalancing approach by deploying available investable cash upon the display of a value indicator. Rebalance the portfolio to maintain 25% in cash upon the display of a risk indicator. Adjust this ratio as subsequent risk indicators are triggered, deploying available cash upon future value signals.
6.5. Bear Market Strategy
In a bear market, traders may seek short positions upon the display of the Continued Downward Momentum indicator (Down Triangles) capitalizing on declining market trends.
6.6. Short-Term Trading Strategy
Traders can use hourly or 4-hourly data along with the daily Price Rails and Heatmap Bar for short-term positions. They may incorporate other preferred indicators such as RSI for entry/exit decisions.
7. Recommendations and Disclosures
Investors are recommended to take a prudent approach. It is not recommended for investors to scale out completely or significantly reduce the largest portion of their long-term Bitcoin positions in hopes of buying back at lower prices unless they have a compelling reason to do so. The future market conditions may not replicate past opportunities making this strategy uncertain. However, scaling out a smaller portion such as 25% can offer a high potential for an asymmetric risk-reward ratio. This approach is likely to provide a higher risk-adjusted return compared to traditional dollar-cost averaging or random lump sum adjustments.
The Bitcoin Destiny Line Model leverages 13.5 years of available price data across four complete Bitcoin market cycles.
While each additional cycle enriches the model's robustness and enhances the reliability of its forecasts, it is crucial for users to understand that historical trends are indicative of probable future directions and potential price ranges. Users should be cognizant that past performance is not a definitive predictor of future results and should not be the sole basis for investment decisions.
[FXAN] 77 Cygni Algorithm (Swing Trading)⚜️ FXAN CYGNI INDICATORS ORIGINALITY
Originality comes from proprietary formula we use to measure the relationship between Volume and Price Volatility in relation to overall current market positioning in developing Volume Profile and multiple custom period Volume Profiles. We combine that with our own approach to measure price velocity in correlation to average daily/weekly/monthly ranges of the given market.
The relationship between current volume and price volatility gives us information about how much the volume that is currently coming into the market affects the price movement (volatility) and which side is more dominant/involved in the market (Buyers/Sellers). We call this the "Volume Impact" factor.
This information is then compared in relation to the overall current market positioning in developing Volume Profile and Multiple custom period Volume Profiles. We have created a rating system based on current price positioning in relation to the Volume Profile. Volume profile consists of different volume nodes, high volume nodes where we consider market interest to be high (a lot of transactions - High Volume) and low volume nodes where we consider market interest to be low (not a lot of transactions - Low Volume). We call this the current "Market Interest" factor.
We combine this information with our own approach to measure price velocity in correlation to the higher-timeframe price ranges. Calculation is done by measuring current ranges of market movement in correlation to average daily/weekly/monthly ranges. We call this "Price Velocity" factor.
This approach was applied to develop key components of our Tradingview Indicators, we've simplified some of the calculations and made them easy to use by programming them to display buying/selling volume pressure with colors.
In addition to our own proprietary formulas and criterias to measure volume impact on price, we've also used an array of indicators that measure the percentage change in volume over custom specified periods of time, including custom period ranged Volume Profile, Developing VA, Accumulation/Distribution (A/D Line), Volume Rate of Change (VROC), Volume Price Trend (VPT) - all of them with of course fine-tuned settings to fit the purpose in the overall calculation.
Reasons for multiple indicator use:
Custom period ranged Volume Profiles: To determine current interest of market participants. Used for "Market Interest"
Developing VA: To determine current fair price of the market (value area). Used for "Market Interest".
Accumulation/Distribution (A/D Line): Helping to gauge the strength of buying and selling pressure. Used for "Volume Impact"
Volume Rate of Change (VROC): To give us information about percentage change in volume. Used for "Volume Impact"
Volume Price Trend (VPT): To help identify potential trends. Used for "Volume Impact".
Average True Range (ATR): Used for measuring volatility. Used for "Volume Impact" and "Price Velocity".
Average Daily Range (ADR): Used for measuring average market price movement. Used for "Price Velocity".
How it all works together:
"Volume Impact" factor tells us the influence of incoming market volume on price movement. This information alongside the overall market positioning information derived from "Market Interest" factor combined with information about speed and direction relative to higher-timeframe price ranges frin "Price Velocity.
This is the basis of our proprietary developed Volume Dynamics analysis approach
"Volume Impact" x "Market Interest" x "Price Velocity"
Combining this factors together gives a good overall understanding of which side is currently more involved in the market to gauge the direction ("Volume Impact"), where the market is currently positioned to gauge the context ("Market Interest") and what the current market's momentum to improve the timing of our trades ("Price Velocity"). This increases our probabilities for successful trades, executed with good timing.
To simplify - our indicators will always analyze the volume behind every price movement and rate those movements based on the relationship between movement distance and volume behind it through an array of criterias and rate them.
Colors displayed by the indicators will be a result of that, suggesting which side of the market (Buyers or sellers) is currently more involved in the market, aiming to increase the probabilities for profitable trades. With the help of our indicators you have deep volume analysis behind price movements done without looking at anything else then indicator components.
🔷 OVERVIEW
Cygni 77 Algorithm is a TradingView indicator designed to help determine higher timeframe market context and long-term market sentiment and trends. It analyzes the underlying volume behind market movements and colors the candles with the help of formulas that include technical analysis and market price action. It caters to traders looking for swing trading setups or additional perspectives for day trading sentiment.
🔷 KEY FEATURES
▊ Candle Coloring
▊ Dynamic Support & Resistance Lines
▊ Dots | Above and below the candles
▊ Colored Bar | on the bottom of the chart
🔷 HOW DOES IT WORK?
□ Candle colors will indicate the general market trend from the technical analysis perspective. The calculation for this component uses price action concepts and segments from technical analysis, for example, candle/price structural breaks. Volume is not used for calculations of this component.
□ Dynamic Support & Resistance Lines indicate the current market structure from the technical analysis perspective. The calculation uses pure price action and structural analysis of the current market movements.
□ Candle Dots show what are the mid-term volume dynamics in the market by referencing the daily average price weighted by volume with the periods ranging from days to weeks. Candle Dots suggest what is the likely direction of the market's trend from the mid-term perspective. If the market is bullish, you’ll see the green dots printed below the candles, and if the market is bearish, the dots will color red and print above the candles.
□ Colored Bar analyzes long-term volume dynamics and the market's price action for the past three to six weeks, referencing average price weighted by volume. This makes it much less sensitive than the Candle Dots, so the colors won't change that often. If the market is bullish, you’ll see the green bars, and if the market is bearish, the bars will color red.
🔷 HOW TO USE IT?
□ In general, we look for areas where all components are in sync. These are valid trading signals (refer to the usage example below).
□ If all components are not in sync, we should look for at least two of them to be in sync, while one of them must be the Colored Bar.
□ Candle Colors: Looking for longs when the candles are green and looking for shorts when the colors are red
□ Dynamic Support & Resistance Lines: Used for placing entries and stop-loss limits. Using retest of the line for entry and placing the stop-loss beyond it. Or if we're entering based on other components, we can use the line to place the stop-loss beyond it.
□ Candle Dots: Looking to trade in the direction of the color. If the market is bullish, you’ll see the green dots, and if the market is bearish, the dots will color red.
□ Colored Bar: Most important component of this indicator, we favor trading in the direction suggested by this component. Additional confirmation of other components is a bonus. Colors here don't change that often, but once they do - it usually signals a long-term trend shift. Green color suggests a bullish market, trading long. Red color suggests bearish market, trading short.
🔷 COMBINING THE COMPONENTS
Each component of the indicator serves its own purpose and analyzes the market from its own perspective and with its own custom settings and formulas. The calculation of the individual component is done independently from the calculation of the other components. Once all of them align, we can execute trades with an edge as it signals that different aspects of volume and price analysis line up for the trading opportunity.
-Candle Colors performs technical analysis for you by displaying the colors of a favorable market direction based on the market's current technical structure.
- Dynamic Support & Resistance Lines are used for placing your entry/exit limit orders.
-Candle Dots are used to determine the favorable direction of the market based on Daily Volume Dynamics, with custom timeframe settings ranging from a couple of days to a couple of weeks.
-The Colored Bar is used to gauge the overall favorable trading direction based on Daily Volume Dynamics with custom timeframe settings ranging from 3 to 6 weeks.
It's important to combine the components to increase the probability of success - here's how you should look for a trade:
1. Assess the current most favorable market direction by referencing the Colored Bar. Look for longs if it’s green and for shorts if it’s red
2. Look for the Candle Dots to align with the Colored Bar, look for longs if it’s green and for shorts if it’s red
3. Look for the Candle Colors to align with the Colored Bar. Look for longs if it’s green and for shorts if it’s red
4. Place your SL level beyond the currently developing Support/Resistance line to protect your positions and look for exits once the colors change.
A valid example of the trade would be:
- Colored Bar is green, indicating the favorable trading directions is long
- Candle Dots are green, indicating the favorable trading directions is long
- Candle Colors are green, indicating the market structure is favorable to enter your positions
📊 USAGE EXAMPLE
Momentum Concepts [AlgoAlpha]🚀 Introducing the Momentum Concepts™ , a robust multi-layered momentum analysis tool developed by AlgoAlpha . This All-in-One indicator offers a comprehensive approach to understanding market momentum, empowering traders with hyper customizable features to tailor their analysis to their specific trading strategies.
Designed with efficiency and compactness in mind, the script shows momentum regimes on three time horizons: The short-term ( Fast Oscillator ), medium-term ( Scalper's Momentum ) and long-term ( Momentum Impulse Oscillator and Hidden Liquidity Flow ). Additionally, the script also includes reversal signals for traders who prefer to trade contrarian/mean-reversion strategies. By utilizing a blend of advanced algorithms and customizable parameters, Momentum Concepts™ provides traders with a vast array of trading strategies ranging from high frequency scalping to timing better entries on long-term swing and investing positions.
Let's delve into the key features and functionalities of this versatile indicator:
🎯Key Features (summary):
Customizable Fast Oscillator: Tailor the fast oscillator to your preferences with adjustable settings for type, source, trend identification(signal processing) method, length, and more.
Divergence Detection: Identify potential trend reversals with ease using built-in divergence detection for both bullish and bearish signals.
Momentum Impulse Oscillator: Gain deeper insights into trending/ranging markets and underlying market bias with a dedicated oscillator, featuring adjustable trend impulse thresholds.
Scalper's Momentum: Utilize a specialized momentum indicator designed for scalping strategies, featuring agility in signal detection with noise reduction and customizable smoothing parameters.
Hidden Liquidity Flow Analysis: Assess hidden liquidity flows within the market, highlighting excess liquidity and potential squeeze situations.
Trend Confluence Indicator: Evaluate the overall momentum direction with dynamically colored zones, aggregating signals from Momentum Concepts™ components for a holistic view.
User-Friendly Interface: The indicator is presented in a clear and intuitive manner, making it accessible for traders of all experience levels.
All-Rounded Alerts: The indicator comes with a comprehensive alerts extension in a separate script, allowing you to stay informed of important market movements even when away from your trading platform.
🎯Key Features (in-depth):
The Fast Oscillator within Momentum Concepts™ comprises four components designed to provide insights into short-term momentum dynamics:
🔱Price Volume Swings :
This confirmation component uses our proprietary Price Volume Algorithm to analyze price action and volume to identify buying and selling pressure, aiding traders in spotting short-term swings for potential trading opportunities.
⚜️Price Volume Waves :
This leading component also uses our proprietary Price Volume Algorithm but differs from the Price Volume Swings by capturing dominant wave patterns instead. This indicator breaks down price and volume data into a wave-like plot which enables leading insights into market momentum due to the relatively predicable nature of sine-like waves. Leading components such as this and the Alpha Wave are best used with other confirmation components within the Momentum Concepts™ .
🌊Alpha Wave :
The Alpha Wave is a leading non-volume alternative to the Price Volume Waves . It reflects market momentum by analyzing price action only instead of using volume data, resulting in a normalized wave-like plot similar to that of the Price Volume Waves , offering a leading perspective on potential market momentum shifts. Leading components such as this and the Price Volume Waves are best used with other confirmation components within the Momentum Concepts™ .
🐲Dragon RSI :
The Dragon RSI is a confirmation component that determines market momentum by analyzing the directional movement of the Relative Strength Index (RSI). By doing so, users are able to visually identify the current short term trend of the market as well as identify overbought and oversold conditions.
Reversal Signals :
All the Fast Oscillator components come with reversal signals that are based on the respective components being either oversold or overbought.
Divergences :
All the Fast Oscillator components come with bullish and bearish divergences. Divergences within the Fast Oscillator components of Momentum Concepts ™ offer crucial signals for trend shifts. 🔱 Price Volume Swings and ⚜️ Price Volume Waves detect weakening buying or selling pressure, signalling potential reversals or continuations. 🌊 Alpha Wave and 🐲 Dragon RSI identify divergences between momentum and price, aiding traders in anticipating market movements. Leveraging these divergences enhances analysis, aiding traders in formulating meaningful analysis.
Customizable Signal Processing Methods :
All the Fast Oscillator components come with customizable signal processing methods to identify trends on the Fast Oscillator , they include (but not limited to) methods such as Heiken Ashi, and a vast selection of Moving Averages.
Diminishing Momentum Warning :
All the Fast Oscillator components come with a diminishing momentum warning that represents a reducing momentum on the Fast Oscillator . This can act as a take profit signal or as a precautionary warning that the price is about to change direction soon even though the Fast Oscillator has not detected it yet.
Dynamically Colored Reversal Zones :
Last but not least, the dynamic coloring of the reversal zones for Fast Oscillator can be customised based on either the reversal probability of the Fast Oscillator or based on the overall trend confluence of all the components within the Momentum Concepts™ indicator.
The Momentum Impulse Oscillator in Momentum Concepts™ offers crucial insights into long-term momentum trends, aiding traders in identifying the underlying momentum regime and differentiating between trending and consolidating markets.
Underlying Momentum Bias
By default, the Momentum Impulse Oscillator is set to show the longer term trend of price action, this can be used to set the directional bias for the markets and prevent users from trading against the trend.
Trending/Ranging Detection
The Momentum Impulse Oscillator comes with the option to enable trending thresholds, when the Momentum Impulse Oscillator is beyond these thresholds, it indicates a trending market, when Momentum Impulse Oscillator is within the thresholds, it indicates a consolidating/ranging market.
The Scalper's Momentum within Momentum Concepts™ furnishes traders with nuanced signals ideal for short to medium-term trading strategies. It efficiently displays both the medium-term momentum and any emerging divergences towards the opposing direction.
Medium-Term Momentum
The Scalper's Momentum is designed to fill the analysis gap between the Fast Oscillator and the Momentum Impulse Oscillator . Showing momentum insights over the medium-term.
Momentum Convergence-Divergence
The Scalper's Momentum is also capable of showing momentum convergences and divergences, which can be used as take-profit and/or confirmation signals to other components within Momentum Concepts™ .
The Hidden Liquidity Flow component of Momentum Concepts™ is designed to uncover underlying liquidity dynamics. This feature enables traders to anticipate potential price movements based on changes in liquidity flow, enhancing their ability to make informed trading decisions.
Underlying Liquidity Dynamics
The Hidden Liquidity Flow shows the underlying liquidity flow of the market, a positive liquidity flow indicates that liquidity is entering the market and increasing the probability of bullish price action, the opposite is true for negative liquidity flows.
Excess Liquidity Flow
The Hidden Liquidity Flow also indicates when there is an abnormal amount of liquidity flowing through the market, this can indicate the potential for volatility and explosive price action.
🎯Usage Examples:
Now that we have gone through the components and features of Momentum Concepts™ in detail, we'll walk you through the usage examples and strategies that you can utilise to navigate the markets.
Scalping
Using the Scalper's Momentum and the Fast Oscillator as an example, users can first use the Scalper's Momentum as a directional bias and the Fast Oscillator as a means of timing a more precise entry. Take profits can be based on either the Diminishing Momentum Warnings or the Fast Oscillator flipping signals or the Scalper's Momentum flipping signals.
Buying the Dip/Shorting the Pump
Using the Momentum Impulse Oscillator and the Fast Oscillator as an example, users will need to first determine the underlying trend with the Momentum Impulse Oscillator , after which they can use the Fast Oscillator for entry signals into the trend. Take profits can be based on either the Diminishing Momentum Warnings or the Fast Oscillator flipping signals
Reversal Trading
Using the Momentum Impulse Oscillator on a timeframe roughly 3-4 times greater than the chart's timeframe and the Fast Oscillator as an example, users will need to first ensure that the Momentum Impulse Oscillator signals a ranging market on a higher timeframe, divergence signals from the Fast Oscillator can then be used as entries. Take profits can be based on either the Diminishing Momentum Warnings or the Fast Oscillator flipping signals or the Fast Oscillator reaching the zero line.
(These are just examples for reference, the Momentum Concepts™ offers significantly more possibilities for customisation and fine tuning of your trading strategy.)
🎯Conclusion:
In conclusion, Momentum Concepts™ stands as a versatile and powerful tool for traders seeking to decode the intricacies of market momentum across multiple time horizons. With its comprehensive suite of customizable features, including the Fast Oscillator , Scalper's Momentum , Momentum Impulse Oscillator , and Hidden Liquidity Flow , traders can gain deep insights into market dynamics and make well-informed trading decisions. Whether executing high-frequency scalping strategies or timing entries for longer-term positions, Momentum Concepts™ equips traders with the tools they need to navigate diverse market conditions with confidence. By harnessing the power of momentum analysis, this indicator empowers traders to stay ahead of the curve and capitalize on emerging opportunities in the ever-evolving financial markets.
Dynamic Gradient Filter
Sigmoid Functions:
History and Mathematical Basis:
Sigmoid functions have a rich history in mathematics and are widely used in various fields, including statistics, machine learning, and signal processing.
The term "sigmoid" originates from the Greek words "sigma" (meaning "S-shaped") and "eidos" (meaning "form" or "type").
The sigmoid curve is characterized by its smooth S-shaped appearance, which allows it to map any real-valued input to a bounded output range, typically between 0 and 1.
The most common form of the sigmoid function is the logistic function:
Logistic Function (σ):
Defined as σ(x) = 1 / (1 + e^(-x)), where:
'x' is the input value,
'e' is Euler's number (approximately 2.71828).
This function was first introduced by Belgian mathematician Pierre François Verhulst in the 1830s to model population growth with limiting factors.
It gained popularity in the early 20th century when statisticians like Ronald Fisher began using it in regression analysis.
Specific Sigmoid Functions Used in the Indicator:
sig(val):
The 'sig' function in this indicator is a modified version of the logistic function, clamping a value between 0 and 1 on the sigmoid curve.
siga(val):
The 'siga' function adjusts values between -1 and 1 on the sigmoid curve, offering a centered variation of the sigmoid effect.
sigmoid(val):
The 'sigmoid' function provides a standard implementation of the logistic function, calculating the sigmoid value of the input data.
Adaptive Smoothing Factor:
The ' adaptiveSmoothingFactor(gradient, k)' function computes a dynamic smoothing factor for the filter based on the gradient of the price data and the user-defined sensitivity parameter 'k' .
Gradient:
The gradient represents the rate of change in price, calculated as the absolute difference between the current and previous close prices.
Sensitivity (k):
The 'k' parameter adjusts how quickly the filter reacts to changes in the gradient. Higher values of 'k' lead to a more responsive filter, while lower values result in smoother outputs.
Usage in the Indicator:
The "close" value refers to the closing price of each period in the chart's time frame
The indicator calculates the gradient by measuring the absolute difference between the current "close" price and the previous "close" price.
This gradient represents the strength or magnitude of the price movement within the chosen time frame.
The "close" value plays a pivotal role in determining the dynamic behavior of the "Dynamic Gradient Filter," as it directly influences the smoothing factor.
What Makes This Special:
The "Dynamic Gradient Filter" indicator stands out due to its adaptive nature and responsiveness to changing market conditions.
Dynamic Smoothing Factor:
The indicator's dynamic smoothing factor adjusts in real-time based on the rate of change in price (gradient) and the user-defined sensitivity '(k)' parameter.
This adaptability allows the filter to respond promptly to both minor fluctuations and significant price movements.
Smoothed Price Action:
The final output of the filter is a smoothed representation of the price action, aiding traders in identifying trends and potential reversals.
Customizable Sensitivity:
Traders can adjust the 'Sensitivity' parameter '(k)' to suit their preferred trading style, making the indicator versatile for various strategies.
Visual Clarity:
The plotted "Dynamic Gradient Filter" line on the chart provides a clear visual guide, enhancing the understanding of market dynamics.
Usage:
Traders and analysts can utilize the "Dynamic Gradient Filter" to:
Identify trends and reversals in price movements.
Filter out noise and highlight significant price changes.
Fine-tune trading strategies by adjusting the sensitivity parameter.
Enhance visual analysis with a dynamically adjusting filter line on the chart.
Literature:
en.wikipedia.org
medium.com
en.wikipedia.org
Seasonal Tendencies - SMC IndicatorsA Seasonal Tendency refers to a historical price action behaviour that tends to repeat during specific times of the year, month over month.
It's a roadmap to navigate price action on the daily chart to help determine the medium to long-term bias.
Seasonal Tendencies are NOT an exact prediction of future price action but rather serve as a guideline for spotting high-probability opportunities when combined with other elements of SMC Price Action analysis, such as Order Blocks, Fair Value Gaps, etc...
The Seasonal Tendencies Indicator has been tested to match what ICT has taught in his lectures. It can be applied to any Market or Asset. However, it's limited by the maximum number of years available on tradingview.
Traders can use this Seasonal Tendencies indicator to support their already existing analysis as an added confirmation tool. This indicator should not be used as a main reason to enter a trade idea.
The Seasonal Tendencies Indicator can be used in 2 ways:
1) To look for potential points of long-term reversals during specific times of the year.
2) To look for confirmation and align with an existing long-term trend.
So how does it work?
The Seasonal Tendencies Indicator takes the averages of the last 30, 10, and 5 years' prices by default and compares them to the current year's price action (Green Line).
However, the number of years chosen for the averages can be modified in the indicator's setting.
When looking at the historical price action lines, generally, the price tends to make the lows and highs during specific times of the year.
Note that we should not look at the exact dates these lows and highs form, but we take time periods conceptually instead.
In the example below, the SP500 5-year average made the low on 14 March, and the SP500 10-year average made the low on 23 March.
This gives us the idea that "generally" SP500 makes the low of the year around the 2nd to 3rd week of March every year.
So, IF the trader's analysis was pointing out that SP500 is Bullish, then we use the information that we derived from the Seasonal Tendencies Indicator to look for long setups around the 2nd to 3rd week of March for medium to long-term swing trades.
The Seasonal Tendencies Indicator can also be useful for day traders as it helps support their daily bias to look for trades within the direction of the higher timeframe trend.
How do we measure the strength of the Seasonal Tendencies?
When using the Seasonal Tendencies Indicator, it's important to look for periods where the averages converge and get closer to each other. This usually indicates that during those specific periods, there is a high probability for the price to behave in a certain way.
So the closer the averages are to each other, the more likely the price would respect the Seasonal Tendencies.
Bonus Feature
Premium Discount Range
As a bonus feature, split the Seasonal Tendencies Indicator's Range into 4 quarters to indicate when the price is at a Premium (above the 50% level in Red) and when the price is at a Discount (below the 50% level in blue).
Each Premium and Discount range is also split into 2 halves.
Those levels can also be used to identify potential turning points when comparing the Current Year's price positioning in the Yearly Range to historical price action.
As you can see from the example below, most major turning points happen at around key price levels.
[F][IND] FVG IdentifierMastering Market Imbalances with Ease
The FVG Identifier stands as a groundbreaking TradingView indicator, crafted to illuminate the often-overlooked Fair Value Gaps (FVG) in the dynamic world of price action trading. Let’s dive into how this tool is transforming the approach to identifying market inefficiencies.
Decoding Fair Value Gaps
Central to the concept of FVGs is the identification of market imbalances — moments where the equilibrium between buying and selling pressures is disrupted. These gaps are typically seen in a sequence of three candles, where a dominant candle is surrounded by others whose wicks fail to fully overlap it. These formations are critical as they often influence future price directions, acting as potential magnets.
Simplifying the Detection of FVGs
The FVG Identifier is engineered to enhance the visibility of Fair Value Gaps, making them starkly apparent even in complex market charts. Its algorithms ensure that these vital market indicators are easily and promptly recognized, allowing traders to spot valuable trading opportunities with minimal effort.
Features of the FVG Identifier
1. Intuitive Interface: The indicator is designed for ease of use, accommodating both beginners and experienced traders.
2. Customizable Settings: It offers flexible configuration options, allowing for adaptation to various trading styles and strategies.
3. Strategic Trading Insight: By highlighting FVGs, the tool provides traders with actionable insights for strategic entry and exit points based on potential price movements.
Elevating Your Trading Strategy
Incorporating the FVG Identifier into your trading arsenal equips you with a nuanced perspective on market analysis. It not only assists in identifying significant market imbalances but also enriches your technical analysis with powerful, data-backed insights.
Revolutionizing Price Action Trading
The FVG Identifier transcends the role of a mere indicator; it represents a significant leap in trading methodology. Compatible with various trading platforms, this tool is ready to enhance your market understanding and application of Fair Value Gaps.
Embrace the FVG Identifier to uncover the hidden dynamics of market gaps and translate these insights into efficient and profitable trading strategies.
Disclaimer:
This indicator is provided for educational purposes only. Trading involves risk, and users should consult with a financial professional before making any trading decisions.
Your Feedback Matters!
Please feel free to comment or reach out if you have any improvement suggestions or if you would like to request the development of a specific indicator. Your feedback is invaluable!
Fractal Consolidations [Pro+]Introduction:
Fractal Consolidations Pro+ pushes the boundaries of Algorithmic Price Delivery Analysis. Tailored for traders seeking precision and efficiency to unlock hidden insights, this tool empowers you to dissect market Consolidations on your terms, live, in all asset classes.
What is a Fractal Consolidation?
Consolidations occur when price is trading in a range. Normally, Consolidation scripts use a static number of "lookback candles", checking whether price is continuously trading inside the highest and lowest price points of said Time window.
After years spent studying price action and numerous programming attempts, this tool succeeds in veering away from the lookback candle approach. This Consolidation script harnesses the delivery mechanisms and Time principles of the Interbank Price Delivery Algorithm (IPDA) to define Fractal Consolidations – solely based on a Timeframe Input used for context.
Description:
This concept was engineered around price delivery principles taught by the Inner Circle Trader (ICT). As per ICT, it's integral for an Analyst to understand the four phases of price delivery: Consolidation , Expansion , Retracement , and Reversal .
According to ICT, any market movement originates from a Consolidation, followed by an Expansion .
When Consolidation ranges begin to break and resting liquidity is available, cleaner Expansions will take place. This tool's value is to visually aid Analysts and save Time in finding Consolidations in live market conditions, to take advantage of Expansion moves.
CME_MINI:ES1! 15-Minute Consolidation setting up an Expansion move, on the 10 Minute Chart:
Fractal Consolidations Pro+ doesn't only assist in confirming Higher Timeframe trend continuations and exposing opportunities on Lower Timeframes. It's also designed for both advanced traders and new traders to save Time and energy in navigating choppy or rangebound environments.
CME_MINI:ES1! 30 Minute Consolidation forming Live, on the 5 Minute Chart:
By analyzing past price action, traders will find algorithmic signatures when Consolidations are taking place, therefore providing a clearer view of where and when price is likely to contract, continue consolidating, breakout, retrace, or reverse. A prominent signature to consider when using this script is ICT's Market Maker Buy/Sell Models. These signatures revolve around the engineering of Consolidations to manipulate price in a specific direction, to then reverse at the appropriate Time. Each stage of the Market Maker Model can be identified and taken advantage of using Fractal Consolidations.
CME_MINI:NQ1! shift of the Delivery Curve from a Sell Program to a Buy Program, Market Maker Buy Model
Key Features:
Tailored Timeframes: choose the Timeframe that suits your model. Whether you're a short-term enthusiast eyeing 1 Hour Consolidations or a long-term trend follower analyzing 4 Hour Consolidations, this tool gives you the freedom to choose.
FOREXCOM:EURUSD Fractal Consolidations on a 15 Minute Chart:
Auto-Timeframe Convenience: for those who prefer a more dynamic and adaptive approach, our Auto Timeframe feature effortlessly adjusts to the most relevant Timeframe, ensuring you stay on top of market consolidations without manually adjusting settings.
Consolidation Types: define consolidations as contractions of price based on either its wick range or its body range.
COMEX:GC1! 4 Hour Consolidation differences between Wick-based and Body-based on a 1 Hour Chart:
Filtering Methods: combine previous overlapping Consolidations, merging them into one uniform Consolidation. This feature is subject to repainting only while a larger Consolidation is forming , as smaller Consolidations are confirmed. However once established, the larger Consolidation will not repaint .
FOREXCOM:GBPUSD 15 Minute Consolidation Differences between Filter Consolidations ON and OFF:
IPDA Data Range Filtering: this feature gives the Analyst control for selective visibility of Consolidations in the IPDA Data Range Lookback . The Analyst can choose between 20, 40, and 60 days as per ICT teachings, or manually adjust through Override.
INDEX:BTCUSD IPDA40 Data Range vs. IPDA20 Data Range:
Extreme Float: this feature provides reference points when the price is outside the highest or lowest liquidity levels in the chosen IPDA Data Range Lookback. These Open Float Extremes offer critical insights when the market extends beyond the Lookback Consolidation Liquidity Levels . This feature helps identify liquidity extremes of interest that IPDA will consider, which is crucial for traders in understanding market movements beyond the IPDA Data Ranges.
INDEX:ETHUSD Extreme Float vs. Non-Extreme Float Liquidity:
IPDA Override: the Analyst can manually override the default settings of the IPDA Data Range Lookback, enabling more flexible and customized analysis of market data. This is particularly useful for focusing on recent price actions in Lower Timeframes (like viewing the last 3 days on a 1-minute timeframe) or for incorporating a broader data range in Higher Timeframes (like using 365 days to analyze Weekly Consolidations on a daily timeframe).
Liquidity Insight: gain a deeper understanding of market liquidity through customizable High Resistance Liquidity Run (HRLR) and Low Resistance Liquidity Run (LRLR) Consolidation colors. This feature helps distinguishing between HRLR (high resistance, delayed price movement) and LRLR (low resistance, smooth price movement) Consolidations, aiding in quick assessment of market liquidity types.
TVC:DXY Low Resistance vs. High Resistance Consolidation Liquidity Behaviour and Narrative:
Liquidity Raid Type: decide whether to categorize a Consolidation liquidity raid by a wick or body trading through a level.
CBOT:ZB1! Wick vs. Body Liquidity Raid Type:
Customizable User Interface: tailor the visual representation to align with your preferences. Personalize your trading experience by adjusting the colors of consolidation liquidity (highs and lows) and equilibrium, as well as line styles.
Because Wicks Dont Lie" Because Wicks Don't Lie " is a specialized indicator designed to assist traders in identifying and visualizing significant candle wicks on any timeframe. Wicks, often referred to as Liquidity Targets, are areas that almost always get filled by price at some point. They can help map out the trajectory of price movement, acting as a magnet, drawing the price towards them. Recognizing these wicks can provide invaluable insights into potential trading opportunities and market sentiment.
We are looking for Candles with LONG Wick and TINY Candle Body! Only those types of Wicks have (according to my experience and backtesting) a 100% chance to get filled in the future.
Features:
Wick Visualization:
The script highlights significant bullish (blue) and bearish (red) wicks that meet specific criteria, helping you quickly spot potential trading opportunities.
VWAP Bands for Filtering Extremes:
The VWAP bands are incorporated to filter out wicks created at extreme price points. By ensuring that wicks are within a user-defined percentage of the VWAP (Volume Weighted Average Price), traders can avoid targeting extreme wicks that might take a longer time to get filled, thus enhancing the efficacy of strategies that trade towards wicks.
Alerts:
Traders can set alerts for when a significant bullish or bearish wick is detected, ensuring they never miss potential setups.
Usage:
Once applied to your chart, the script will automatically scan for significant wicks and display them with blue (bullish) and red (bearish) markers. By adjusting the script settings, users can customize the VWAP band percentage to fine-tune the filtering of extreme wicks.
Conclusion:
Wicks often contain valuable information about market sentiment, rejection of price levels, and potential future price direction. By acting as liquidity targets, they serve as indications of where the price is likely to move. "Because Wicks Don't Lie" simplifies the process of identifying these crucial candle formations and, with the inclusion of the VWAP bands, ensures that traders can prioritize the most actionable wicks while avoiding extreme outliers.
Input Fields:
Average Candle Size Multiplier:
This parameter allows users to adjust the base size of what the script considers as a significant wick. By multiplying the average size of candles over the last 4998 bars, users can fine-tune the script to detect only wicks of a certain prominence. A higher value will mean that only larger wicks (relative to recent price action) will be considered significant.
Wick Ratio (Wick Proportion Threshold):
This ratio helps determine the proportion of the wick to the entire candle for it to be considered significant. A higher ratio means that the wick must be a larger part of the total candle size to be marked as significant. It's an essential parameter to differentiate between candles with tiny wicks and those with substantial wicks which might offer trading opportunities.
[blackcat] L2 Range Action Verification Index (RAVI) with 3 SMAThe Range Action Verification Index (RAVI) is a technical indicator used in trading to measure the strength of a trend. It compares two simple moving averages (SMAs) to determine the market's momentum.
To calculate RAVI, we subtract the shorter SMA from the longer SMA, and then divide the result by the longer SMA. This value is then multiplied by 100 to express it as a percentage.
The RAVI indicator helps traders identify whether the market is in a trending or range-bound phase. When the RAVI value is positive, it indicates a bullish trend, suggesting that the market is in an uptrend. Conversely, a negative RAVI value indicates a bearish trend or a downtrend.
Traders can use the RAVI indicator in several ways. Here are a few common strategies:
1. **Trend confirmation**: Traders can use RAVI to confirm the strength of a trend identified by other indicators or price patterns. If the RAVI value aligns with the direction of the trend, it provides additional confirmation.
2. **Overbought and oversold conditions**: Traders can use extreme RAVI values to identify overbought or oversold conditions in the market. When the RAVI value reaches high positive or negative levels, it suggests that the market may be due for a reversal or a retracement.
3. **Divergence**: Traders can look for divergences between the RAVI indicator and the price action. For example, if the price makes a higher high, but the RAVI value makes a lower high, it could indicate a weakening trend and a potential reversal.
As with any technical indicator, it is essential to use RAVI in conjunction with other tools and analysis techniques to make informed trading decisions. Traders should also consider factors such as market conditions, risk management, and other supporting indicators to validate their trading strategies.
In this indicator, an additional simple moving average (SMA) is introduced to consider long-term bias. This modification allows the Range Action Verification Index (RAVI) to be used as a volatility filter. By comparing the shorter SMA with this longer SMA, traders can gain insights into the market's volatility and adjust their trading strategies accordingly. This longer SMA helps provide a broader perspective on the market's trend and can be particularly useful for identifying and filtering out periods of high volatility. It is called "L2 Range Action Verification Index (RAVI) with 3 SMA". It calculates the RAVI value based on three simple moving averages (SMA). The code also includes calculations for the upper and lower bands, as well as color gradient settings. Finally, it plots the RAVI values and a midline.
It calculates the Range Action Verification Index (RAVI) using three Simple Moving Averages (SMA). The RAVI measures the difference between two SMAs divided by a third SMA, and then multiplied by 100.
The code starts with defining input parameters such as length, multiplier, and lengths for the three SMAs. Then it assigns the closing price to a variable called "price".
Next, it calculates the three SMAs using the "ta.sma" function from TradingView's built-in technical analysis library. The first SMA uses "sma1Length", the second SMA uses "sma2Length", and the third SMA uses "sma3Length".
After that, it calculates the RAVI by subtracting sma2 from sma1, dividing it by sma3, and multiplying it by 100.
Then it calculates additional values like basis (using another SMA), deviation (using standard deviation), upper band (basis + dev), and lower band (basis - dev).
Finally, it plots these values on a chart using different colors for each line. It also creates an array of gradient colors based on RSI values calculated from another indicator called ALMA. This gradient color is used to colorize the RAVI line.
Overall, this script helps visualize and analyze market trends based on moving averages and their relationship with price movements.
ICT Kill Zones [dR-Algo]ICT Kill Zones Indicator by dR-Algo
Introducing the dR-Algo's ICT Kill Zones Indicator – a tool meticulously crafted to blend with the elegance of the ICT Concept of Kill Zones. Built for traders who seek clarity and focus, this unique indicator is tailored to highlight the essential time frames while ensuring minimal distraction from the core price action.
Key Features:
Three Kill Zones:
London Kill Zone: Kickstart your trading day with the London Kill Zone, highlighting the critical period between 03:00 to 04:00 (UTC-4). The London session, known for its volatility due to the overlapping of the Asian session, is captured precisely for your benefit.
NY AM Session: As the European markets gear towards close and the US markets come alive, our indicator emphasizes the activity from 10:00 to 11:00 (UTC-4). It’s a window where significant market moves often originate.
NY PM Session: Capture the late-day trading action between 14:00 to 15:00 (UTC-4). As markets prepare to close, this time frame can offer last-minute opportunities.
Subtle Yet Effective Visualization: Unlike many other indicators that bombard traders with an array of colors, our ICT Kill Zones Indicator is intentionally designed to be subtle. It provides just the right amount of visual emphasis without overwhelming the chart. The primary goal is to let traders focus on what truly matters: the price action.
User-Friendly Customization: The indicator's settings can be easily tailored to align with individual trading styles, allowing traders to adjust and tweak as per their preference.
Seamless Integration with Trading View: Smoothly integrates with your TradingView charts ensuring optimal performance and real-time responsiveness.
Why Choose Our ICT Kill Zones Indicator?
The market is flooded with indicators, each promising to be the 'next big thing.' What sets dR-Algo's ICT Kill Zones Indicator apart is its dedication to simplicity and effectiveness. It's not just about adding an indicator to your chart; it's about adding value to your trading experience. By seamlessly merging vital time frames without overshadowing the price action, we ensure traders get the best of both worlds.
Join the trading revolution with dR-Algo and embrace a focused approach to the markets.
Supply And DemandThis supply and demand indicator uses sessions, volume spikes, higher timeframe price action and other volume calculations to spot areas on the chart where price will likely react. From the 1 minute and below charts to the daily and up charts, you can get excellent levels for any timeframe.
Why Use Supply And Demand?
One of the safest ways to trade is to wait for price to enter an area of interest where price should react. When we play reversals off of these areas, you increase the likelihood that your trade will be profitable because there was previous price action that told you that the current level is one where price will react. So we look for reversals at or very near these levels to enter into scalp or swing trade positions and look to exit that position when price is at or near the next major supply and demand level.
How To Use
The strategy with this indicator is to wait for price action to reach the levels shown by this supply and demand indicator and then enter trades at these levels, looking for a reversal. The thicker lines and the lines that are from the highest timeframes will be the most important levels on the chart. There is a table on the chart that will help you identify what timeframe the levels are using, with the color of that line next to it for easy identification.
The default settings are designed for scalping the 1-5 minute charts, so there are more levels turned on than necessary if you are using higher timeframes than 5 minutes. If you are using higher timeframes, make sure to turn off some of the lower timeframe levels so that it doesn’t clog up your charts. On the daily timeframe and above, many of the levels are coded to not turn on so that you don’t have to turn them off manually, but be aware that you will need to adjust your charts to suit your preferences, especially if you are on anything above the 5 minute chart.
For scalping, wait for price to react from the supply and demand levels by showing wicks, struggling to break through or getting reversal candles at those levels. Ride those moves to the next major supply and demand area before taking profit. You may want to turn on sessions and some of the lower timeframe levels as well if there are big gaps on the chart that are not suitable for scalping.
For swing trading, you will want to turn some of the lower timeframe and session levels off. Leave it to only higher timeframe OHLC lines and volume spike levels. Then you can swing moves that reverse off of the supply and demand lines.
Customization
This indicator is fully customizable. You can turn on or off any of the levels as well as increase the number specific levels so your charts suit your preferences.
All of the levels used are color coded individually so you can easily tell which type of level it is and these colors can be changed within the settings to suit your preferences. These colors are also reflected in the line identification table that show you exactly which color each type of level is.
There are toggles for the line identification table and session identification table as well if you don’t want them on your chart.
Types Of Levels Used
This indicator uses 4 different types of levels that I have found to be extremely influential on the price action. They are: volume spikes, higher timeframe price action, country based trading sessions and the VWAP. All of these levels have proven to be very important levels in my testing and are very helpful in spotting reversal areas.
Volume Spikes
This indicator is looking for the largest volume spikes and plotting the levels where that volume came in. It checks for the highest volume spikes across multiple different lengths of candles so that you get recent levels as well as the most important levels in the past. There are volume spike calculations for your current chart timeframe, 1 hour charts, 4 hour charts, daily charts, weekly charts, and monthly charts. Each of these looks for volume spikes across various lengths of candles for each timeframe and is color coded so you can identify which levels are which easily. The weekly and monthly volume spike levels are fatter than the normal volume spike levels with a line width of 2 to signify their importance.
OHLC Higher Timeframe Candles
This script plots levels of higher timeframe candles since price usually reacts very strongly to these levels. The levels it will produce are the high, low, open and close of the most recent closed candle of each higher timeframe. You can adjust these to show as many or as few previous HTF candles as you would like. The higher timeframe candles available to use are as follows: 1 hour, 4 hour, daily, 3 day, weekly, monthly, quarterly and yearly. The monthly, quarterly and yearly levels are fatter than the normal levels with a line width of 2 to signify their importance.
Trading Sessions
Trading sessions are very important levels because the market makers of different parts of the world are typically positioning themselves at these specific times. The number of each trading session line can be adjusted to show more or less levels depending on your preference. When you adjust the number, it will affect all lines that are enabled for that specific session. The levels available for each Tokyo, London & New York session are as follows: session premarket open, regular session open, session close, and session high & low. The session close boxes are fatter than the others with a line width of 2 to signify its importance.
VWAP & Previous Close
We all know that the VWAP aka Volume Weighted Average Price is a very important level on any chart, so we included this level as a default. However, we decided to take this a step further and include the previous daily session’s VWAP closing price and plot those levels. These are extremely important levels that you should pay very close attention to, along with the other levels mentioned above. The market makers are hedging their positions based on these levels and you will typically see very strong reactions to these levels, especially in the first hour when the markets open up. The VWAP and previous session VWAP close levels can be turned on or off and the default for the number of previous VWAP session close prices is set to 5. These levels are fatter lines because they are extremely important, so make sure to pay attention to them!
Line & Session Identification Tables
There are two tables to help you identify what is on the chart. The first is a large table in the top right that shows you the color and type of each line that is turned on so you can easily identify which lines are which. The second table is a small one at the bottom center of the chart that tells you which trading session we are currently in and what color that session is on the chart. These tables can be turned on or off and you can also change where they are on the chart by adjusting them at the bottom of the settings page.
Markets
This Supply And Demand indicator can be used on any market with price data such as stocks, crypto, forex and futures.
Timeframes
This Supply And Demand indicator can be used on any timeframe, from the second charts all the way up to the yearly charts.
Lune Technical Analysis Premium⬛️ Overview
Lune Technical Analysis is a state-of-the-art TradingView indicator, meticulously designed to provide real-time market insights. Distinguished by its non-repainting features that operate in real-time, this tool brings enhanced accuracy and timeliness to your market analysis.
🟦 Features
Lune Technical Analysis equips traders with an array of innovative features:
🔹 Candle Coloring: The Candle Coloring feature introduces an innovative approach to visualizing market sentiment by coloring chart candles. It is devised to streamline your market analysis, offering a readily digestible snapshot of market trends. For example, if you aim to gauge the predominant market sentiment promptly, enable this feature for instant candle color-coding in accordance with prevailing bullish or bearish market structures. Though it currently supports only Market Structure-based Candle Coloring, its settings can be manipulated for enabling or disabling this feature. This feature operates by applying predefined algorithms that interpret market sentiment, coloring the candles accordingly.
🔹 Chart Pattern Detection: This sophisticated tool automatically detects and illustrates common chart patterns on your chart, simplifying the process of pattern identification. It identifies a range of patterns such as Head & Shoulders, Inverted Head & Shoulders, Ascending/Descending Wedges, Broadening Wedges, various Triangles, and Double Tops/Bottoms, enhancing your confluence detection in the market. For example, upon detecting a Double Top pattern, you could anticipate a potential price reversal due to this bearish signal. The sensitivity of this tool can be customized according to your trading style, with lower settings for short-term changes and higher for long-term. This feature leverages predefined formulas and price action analysis to identify these patterns.
🔹 Trendlines: With the Automatic Trendline Drawing tool, your technical analysis becomes significantly more efficient and precise. This feature is engineered to identify upward and downward Trendlines, aiding in locating potential pivots, and market support/resistance. For instance, if the price consistently rebounds off a Trendline, it may continue to do so, serving as a support/resistance level. However, a break through the Trendline could signal potential volatility and trend change. This feature's sensitivity to price changes can be adjusted to either short or long-term. It works by tracing Trendlines based on price action and wick formations to detect potential pivots.
🔹 Liquidity Bubbles: Liquidity Bubbles is an advanced tool that pinpoints key liquidity areas and large positions in real-time. This feature significantly contributes to effective trading strategy formulation by highlighting potential entry and exit points. It operates in real-time, ensuring zero repaint or lag, and supports two modes: Enhanced Bubbles and Basic Bubbles. For instance, the detection of multiple bullish Liquidity Bubbles during a ranging market could suggest an upward price movement due to dominant bullish volume. This feature's settings include thresholds for insignificant bubble filtering and a mode selection feature. Liquidity Bubbles operates by applying a proprietary formula to volume data, determining general volume direction and potential positions.
🔹 Market Structure: The Market Structure tool identifies key market structures such as Break of Structures (BoS) and Change of Character (ChoCh), thereby enhancing your ability to read market trends and sentiment. This smart money concept gives you a unique insight into short-term and long-term market trends. For instance, the appearance of a bullish Break of Structure and Change of Character after a predominantly bearish market sentiment could suggest a new bullish trend. This feature allows users to select which Market Structures to display and calculates these structures based on the market's high and low points.
🔹 Order Blocks: Order Blocks provide a visual representation of areas where large market participants are likely to place orders. These zones, where significant buying or selling activity has occurred in the past, offer insightful data for future price movements. The Order Blocks feature operates in real-time, providing real-time Order Blocks without any lag. For instance, if the price enters a large Order Block with predominantly bullish volume, an upward price movement can be anticipated. However, if the price breaks through the block, it could suggest the block's invalidation and a likely continued price fall. You can configure the settings to enable an additional Order Block, customize timeframes, overlap functions, and apply a quality filter. This feature calculates Order Blocks using the volume and candle size data.
🔹 Supply/Demand Zones: This real-time tool identifies crucial supply and demand zones, revealing potential price reaction points. These zones, where supply (selling pressure) and demand (buying pressure) have historically impacted price significantly, provide traders with insights into potential areas of strong support (demand) and resistance (supply). For example, if the price enters a large supply zone, a price rejection could be anticipated due to historical selling pressure at this zone. The settings enable users to add an additional Supply/Demand Zone, customize the timeframe, and apply a quality filter. This feature identifies common Supply/Demand Zones patterns based on volume and the size of the zone and displays them on the chart.
🔹 Fair Value Gaps: The Fair Value Gaps tool is designed to identify potential price correction zones or "gaps". These areas, where the market price sharply deviated from the fair value, suggest potential price adjustments in the future. For instance, the formation of a bullish Fair Value Gap could indicate a future price drop to fill this gap, potentially followed by an upward movement if the gap was of fair value. The settings allow users to enable additional Fair Value Gaps, customize the timeframe, and apply a quality filter. This feature measures large market gaps based on the size of the gap and its volume.
These features and tools collectively offer a comprehensive solution for traders to understand and navigate the financial markets. It's important to remember that they are designed to assist in making informed trading decisions and should be used as part of a balanced trading strategy.
🟧 Usage
Lune Technical Analysis's unique feature set can be leveraged both individually and synergistically. It is important to understand each feature and experiment with different configurations to best suit your unique trading needs.
🔸 Example #1: The following example demonstrates how the Order Block and Liquidity Bubbles feature can be used together to enhance your market analysis.
Order Blocks work in real-time to identify key order zones based on price action. These zones are often crucial for predicting price fluctuations. Meanwhile, Liquidity Bubbles act as real-time visual cues that detect significant market positions, facilitating an understanding of market accumulation, distribution, and trapped positions.
In this instance, at point 1, a bearish Basic and Enhanced Liquidity Bubble is visible within a crucial Order Block. The combination of these indicators augments the bearish sentiment, leading to a potential price decrease. Similarly, at point 2, the conjunction of two bullish Basic Liquidity Bubbles within an Order Block strengthens the bullish sentiment, culminating in a subsequent price increase.
🔸 Example #2: The following example demonstrates how Supply and Demand Zones can be used to detect strong and quality supports and resistance.
Supply and Demand Zones operate in real-time, detecting crucial zones based on price action and volume. This feature is invaluable for predicting potential price reaction points.
At point 1, the price enters a Supply Zone, a historical hotspot for selling activity, which usually leads to a price rejection and consequent decrease. At point 2, a Demand Zone indicating a bullish sentiment suggests a potential reversal when the price touches this level.
🔸 Example #3: The following example demonstrates how the Chart Pattern Detection feature is able to detect chart patterns to help enhance your trades.
Chart Pattern Detection employs formulas and price action analysis to identify common chart patterns as they form. Here, it successfully detects a 'Head and Shoulders' pattern, a conventionally bearish pattern, indicating a potential price drop.
🟥 Conclusion
Lune Technical Analysis stands as an exceptional blend of real-time insights into market activity. Its real-time, non-repainting features offer traders a more precise and timely approach to market analysis, promoting improved decision making in ever-changing market conditions.
🔻 Access
You can see the Author's instructions below to get instant access to this indicator & our Premium Suite.
🔻 Disclaimer
Lune Technical Analysis is a tool for aiding in market analysis and is not a guarantee of future market performance or individual trading success. We strongly recommend that users combine our tool with their trading strategies and do their due diligence before making any trading decisions.
Remember, past performance is not indicative of future results. Please trade responsibly.
Dynamic Action Convergence DivergenceGoodbye MACD. Hello DACD.
The Dynamic Action Convergence Divergence (DACD) indicator presents a unique approach to understanding market trends and potential price reversals. This indicator is distinctly different from the currently published scripts in the following ways:
1. The DACD is rooted in the principles of the Average Directional Index (ADX) — especially as construed by the helpful work of @robertkowalski — but innovates by focusing on the divergence and convergence of the directional movement indicators (DI+ and DI-). This focus offers a more dynamic perspective on price action.
2. The DACD incorporates a histogram representation of the difference between DI+ and DI-, making it easier to visually interpret periods of divergence (potential reversal points) and convergence (potential continuation points).
3. It further enhances interpretation by applying a familiar color scheme to the histogram, allowing for an immediate visual understanding of the trend direction and its strength.
4. Unique to the DACD, it scales the difference between DI+ and DI-, applies a moving average, and then represents this as a line on the graph (referred to as "DI+ - DI-"). This line provides a smoothed view of the difference between DI+ and DI-, offering additional insight into the trend's characteristics.
5. Finally, a second moving average is calculated over the "DI+ - DI-" line, creating a signal line akin to the MACD's signal line. This signal line provides a benchmark to the "DI+ - DI-" line, indicating potential points of trend exhaustion and reversal.
The DACD can be used across various markets, including equities, commodities, forex, and cryptocurrencies, making it a versatile tool for any trader's arsenal. As with any technical indicator, the DACD should be used in conjunction with other indicators and forms of analysis to confirm signals and make more informed trading decisions.
The DACD excels in trending markets where it can highlight potential continuation and reversal points. However, during periods of consolidation or sideways moving markets, the DACD may provide less reliable signals. Therefore, it's essential to consider the overall market context when using the DACD.
The originality of the DACD lies in its novel application of the concepts from the ADX, its unique presentation style, and the additional moving averages applied to the difference between DI+ and DI-. These factors contribute to a unique trading indicator that stands apart from the crowd and offers new opportunities for technical analysis.
~~~
POSTSCRIPT: DACD VS MACD
Goodbye MACD. Hello DACD.
The MACD and DACD, while visually similar due to the familiar color scheme, are fundamentally different in their logic and data processing.
MACD is a trend-following momentum indicator, using the relationship between two moving averages of a security’s price. Its color scheme is well-recognized, assisting traders in quickly interpreting market momentum and potential trend shifts.
On the other hand, DACD, while maintaining a similar visual style for ease of adoption, is rooted in the principles of the Average Directional Index (ADX). It focuses on the divergence and convergence of the directional movement indicators (DI+ and DI-), providing a dynamic perspective on price action.
The familiar color scheme is purposefully used to facilitate easier transition for traders from MACD to DACD, despite their different underpinnings. This allows users to intuitively understand the new indicator while benefiting from its unique insight into market trends.
Multi Time Frame Normalized PriceEnhance Your Trading Experience with the Multi Time Frame Normalized Price Indicator
Introduction
As a trader, having a clear and informative chart is crucial for making informed decisions. In this post, we will introduce the Multi Time Frame Normalized Price (MTFNP) Indicator, an innovative trading tool that offers an insightful perspective on price action. The script creates a symmetric chart, with the time axis going from top to bottom, making it easier to identify potential tops and bottoms in various ranges. Let's dive deeper into this powerful tool to understand how it works and how it can improve your trading experience.
The Multi Time Frame Normalized Price Indicator
The MTFNP Indicator is designed to provide a comprehensive view of price action across multiple time frames. By plotting the normalized price levels for each time frame, traders can easily identify areas of support and resistance, as well as potential tops and bottoms in various ranges.
One of the key features of this indicator is the symmetry of the chart. Instead of the traditional horizontal time axis, the MTFNP Indicator plots the time axis vertically from top to bottom. This innovative approach makes it easier for traders to visualize the price action across different time frames, enabling them to make more informed decisions.
Benefits of a Symmetric Chart
There are several advantages to using a symmetric chart with a vertical time axis, such as:
Easier to read: The unique layout of the chart makes it easier to analyze price action across multiple time frames. The clear separation between each time frame helps traders avoid confusion and identify important price levels more effectively.
Identifying tops and bottoms: The symmetric presentation of price action enables traders to quickly spot potential tops and bottoms in various ranges. This can be particularly useful for identifying potential reversal points or areas of support and resistance.
Improved decision-making: By offering a comprehensive view of price action, the MTFNP Indicator helps traders make better-informed decisions. This can lead to improved trading strategies and ultimately, better results.
The MTFNP Indicator Script
The MTFNP Indicator script leverages several custom functions, including the Chebyshev Type I Moving Average, to provide a smooth and responsive signal. Additionally, the indicator uses the Spider Plot function to create a symmetric chart with the time axis going from top to bottom.
To customize the MTFNP Indicator to your preferences, you can adjust the input parameters, such as the standard deviation length, multiplier, axes color, bottom color, and top color. You can also change the scale to fit your desired chart size.
Exploring the Relationship between Min, Max Values and Time Frames
In the Multi Time Frame Normalized Price (MTFNP) script, it is crucial to understand the relationship between the min and max values across different time frames. By analyzing how these values relate to each other, traders can make more informed decisions about market trends and potential reversals. In this section, we will dive deep into the relationship between the current time frame's min and max values and those of the further-out time frames.
Interpreting Min and Max Values Across Time Frames
When analyzing the min and max values of the current time frame in relation to the further-out time frames, it is essential to keep in mind the following points:
All min values: If the current time frame and all further-out time frames have min values, this is a strong indication that the current price level is not just a local minimum. Instead, it is likely a more significant support level. In such cases, there is a higher probability that the price will bounce back upwards, making it a potentially favorable entry point for a long position.
All max values: Conversely, if the current time frame and all further-out time frames have max values, this suggests that the current price level is not just a local maximum. Instead, it is likely a more significant resistance level. In these situations, there is a higher probability that the price will reverse downwards, making it a potentially favorable entry point for a short position.
Neutral values with high current time frame: If the current time frame has a high value while the further-out time frames are more neutral, it could indicate that the trend may continue. This is because the high value in the current time frame may signify momentum in the market, whereas the neutral values in the further-out time frames suggest that the trend has not yet reached an extreme level. In this case, traders might consider following the trend and entering a position in the direction of the current movement.
Neutral values with low current time frame: If the current time frame has a low value while the further-out time frames are more neutral, it could indicate that the trend may reverse. This is because the low value in the current time frame may suggest a potential reversal point, whereas the neutral values in the further-out time frames imply that the trend has not yet reached an extreme level. In this case, traders might consider entering a counter-trend position, anticipating a potential reversal.
Balancing Different Time Frames for Optimal Decision Making
It is essential to remember that relying solely on min and max values across different time frames can lead to potential pitfalls. The market is influenced by a wide array of factors, and no single indicator or data point can provide a complete picture. To make the most informed decisions, traders should consider incorporating additional technical analysis tools and evaluating the overall market context.
Moreover, it is crucial to maintain a balance between the current time frame and the further-out time frames. While the current time frame provides information about the most recent market movements, the further-out time frames offer a broader perspective on the market's historical behavior. By combining insights from both types of time frames, traders can make more comprehensive assessments of potential opportunities and risks.
Conclusion
In conclusion, the Multi Time Frame Normalized Price (MTFNP) script offers traders valuable insights by analyzing the relationship between the current time frame and further-out time frames. By identifying potential trend reversals and continuations, traders can make better-informed decisions about market entry and exit points.
Understanding the relationship between min and max values across different time frames is an essential component of using the MTFNP script effectively. By carefully analyzing these relationships and incorporating additional technical analysis tools, traders can improve their decision-making process and enhance their overall trading strategy.
However, it is important to remember that relying solely on the MTFNP script or any single indicator can lead to potential pitfalls. The market is influenced by a wide array of factors, and no single indicator or data point can provide a complete picture. To make the most informed decisions, traders should consider using a combination of technical analysis tools, evaluating the overall market context, and maintaining a balance between the current time frame and the further-out time frames for a comprehensive understanding of the market's behavior. By doing so, they can increase their chances of success in the ever-changing and complex world of trading.
Diddly - Real Volume TrendDiddly Real Volume Trend is an indicator to help traders identify the real trending direction of an asset, it achieves this by using liquidity to assess the overall buying and selling volume sentiment of a market place.
What is Liquidity
Liquidity refers to the ability of an asset to be turned into cash. Cash is the more liquid form of any asset, whereas selling a house would take a little longer to liquidate and convert to cash. Liquidity in financial markets is in essence based on the same principle and refers to how easily an asset can be bought and sold.
Liquidity in simple terms is the volume of participants who are willing to be involved in the market at any given time. Markets are based on auction theory, the more participants who want to buy at a certain price than sell, will dictate that the price goes up. As a result it is important to understand the role that volume has in financial markets, as volume will directly correlate to liquidity and supply and demand.
What does it mean?
Although markets are based on auction theory, sadly we don't have the advantage of a traditional auction, where we are all sitting in a room putting our hands in the air when we are interested in paying x price for a particular item. In this environment it is very clear to see how popular the item for sale is and whether it is possible to pick up a bargain.
Being able to identify the prevailing direction of buying versus selling volume on a chart provides an insight into market sentiment. Also we have to consider that typically most retail traders participate in very liquid markets, where you can get in and out of a position with relative ease.
There are obviously exceptions, extremely low float stocks, but on the whole with liquid assets it takes some big orders to move price, especially with currencies and high float stocks. Understanding these principles helps us as retail traders identify where the big money is seeing a bargain, if buying or overpriced if selling.
However you identify liquidity, I hope you agree that it is an extremely important element to be considering before taking a trade. The last thing any trader wants to be doing if they can avoid it, is getting on the wrong side of the market.
Just as a side note, high and low "Float Stocks" refers to the number of shares in general circulation for buying and selling.
What is "Diddly Real Volume Trend"
This volume trend indicator in simple terms will display the combined accumulated bullish and bearish volume within a window below the main chart. What you will see is a line chart that will be doing one of three things. Either it could be stair stepping in an upwards direction, identifying that we are in a bullish trend or stepping down in a bearish trend. Alternatively it could just be going sideways, which would suggest a ranging market.
This enables traders to make an assessment of the market sentiment using the liquidity direction that it has identified. This can help form an overall daily bias for intra-day traders or help confirm a longer term trend for swing traders.
Although this indicator is not a true oscillator (where the limits of number are fixed between a known upper and lower limit) , it can still be extremely useful in identifying divergence in price and the volume sentiment. As well as assisting in the process of identifying and confirming peak formations and potential reversal points in a market.
How does it Work
The indicator is plotting the volume trend line based on the output of a set of volume calculations, which is confirmed on the close of each candle. The resultant output is either a positive (Bullish sentiment) or negative (Bearish Sentiment), which are all totalled up to show the next point on the graph. As a result the visual effect seen from this process is that the more bullish calculated volume identified than bearish, you will see a rising trend line and the reverse for a bearish market.
The algo calculation which is used on each candle and its related volume is using the following elements.
Volume
Rate of Change
Relative Strength
The indicator is not just looking at the volume total and saying this is a green candle and must provide a positive number. It is looking for the volume and liquidity extremes and filtering out the nothingness of a market that makes no difference to price either way. It is from using these extremes that the indicator is able to plot the activities and direction of the big money in the market.
What is the Indicator Showing me?
Examples:
Here on a stock VKTX, on a 1 minute chart the elements that make up the indicator are annotated on the chart.
There are 6 components highlighted in the above chart, these have been listed below.
Volume Trend Line
This is the indicator driving line and is the result of the calculations described in the previous section.
Fast Moving Average
This is the fast moving average of the "Volume Trend Line". The moving average type and length can be changed in the settings.
(Default = Exponential Moving Average, Length: 60)
Slow Moving Average
This is a slower moving average of the "Volume Trend Line". The moving average type and length can be changed in the settings.
(Default = Hull Moving Average, Length: 3500)
Long Term Moving Average
This is a long term moving average of the "Volume Trend Line". The moving average type and length can be changed in the settings.
(Default = Exponential Moving Average, Length: 400)
Bullish Confirmation
On the "Volume Trend Line", you will see coloured circles dotted along the line, the green circles signifying Bullish Confirmation.
Bearish Confirmation
On the "Volume Trend Line", you will see coloured circles dotted along the line, the red circles signifying Bearish Confirmation.
The Bullish and Bearish confirmation signals are not signals to take trades, they are there to highlight the predominant direction. Seeing one confirmation signal in isolation is not that helpful, but continued prints of confirmation in a single direction would be interesting.
There are a further two signal types that are displayed on the volume trend line, these should be seen infrequently across charts and represent potential extremes of price movement in a single direction. These signals act as a warning that price could stall in this area or potentially make a reversal. As with the other signals within this indicator they are not signals to buy or sell, they are there to provide warning alerts and should be considered with other pieces of information that you are working with.
Bullish Extreme
Plotted on the "Volume Trend Line", you will occasionally see a green coloured downwardly pointing triangle, this represents a Bullish Extreme.
GBPAUD Hourly chart October 2022
Bearish Extreme
Plotted on the "Volume Trend Line", you will occasionally see a red coloured upward pointing triangle, this represents a Bearish Extreme.
GBPAUD Daily chart (February - April) 2023
How Does It Help?
This indicator will compliment any existing strategy and is not intended to be used standalone.
It can be used on any chart from a monthly, one minute to one second, depending on your trading strategy. Using multiple time frame analysis can help traders with a number of decisions that need to be considered before taking entries.
What is my market direction bias?
This can be taken from an hourly for intraday trader or daily for swing traders. What that time frame is depends on your trading plan and objectives from the trades you take.
When do I take my trades?
Again depending on the trading strategy used will dictate many aspect of this decision, although using the volume trend on a lower time frame, can help confirm breakouts, reversals and divergence.
How should I manage my trade?
With any trade you should have a defined risk reward clearly defined, with stops and targets in mind before taking an entry.
The age old saying of "cut your losses quickly and let your winner run", is easier said than mastered. Once in a trade the volume trend can be really helpful to identify trades that could be real runners and allows you to change expectations after entering the trade. Maybe you want to take some profit at the original point and let the remaining run. Maybe there is such strength you want to add to the position. Being able to assess market sentiment once in a trade can help with optimising returns.
The "Volume Trend Line", which is the driving element of this indicator, will be doing one of three things. Either it could be stair stepping in an upwards direction, identifying that we are in a bullish trend, stepping down in a bearish trend or going sideways in a ranging market.
Bullish Volume Trending Market
Here is stock VKTX, on a 1 minute chart. Trend confirmation on price action is determined by Higher Highs and Higher Lows for an uptrend or Lower Lows and Lower Highs on a downtrend. The same principle applies for the volume trend line.
In this example we first see breakout volume on the indicator with the Bullish Break volume, following that the volume trend keeps making higher highs and higher lows, confirming that this asset has short-term upwards potential. (why short-term? this is the 1 minute chart, you would want to consult the daily or hourly for a longer term perspective).
Price also is making higher highs and higher lows, which is in alignment with the indicator and known as "convergence" and is a positive signal for a continued trend.
Bearish Market
So here on Tesla (TSLA) on the 4 hour chart we can see the big sell off that started in April 2022. Where it clearly shows a downward trend, with lots of confirmation for continuation.
Ranging Markets
On this example on the AUDJPY 1 Hour chart, we can see that price is in a ranging market. By drawing trend lines on price and the indicator, it is clear to see that price and the volume trend line are both showing a ranging market. What is more interesting is the structure of the ranges.
The price range at the top of the chart is in an upward direction, whereas the volume trend in the bottom window is showing a downward range. Giving us an early indication of what to expect from this asset.
Diverging Markets
"Divergence" is a very powerful mechanism for identifying potential reversal points in price actions. There is a wealth of published information on this topic which is well worth reviewing, if this is a new principle to you.
Here again on the same AUDJPY 1 Hour chart example, points of interest have been annotated on the chart where the historical range turns into a step down to the next level within the market cycle, as predicted by the divergence in range patterns, price point up and volume pointing down.
In the above example, after identifying the divergence the next most important element is an extremely fast accelerated move down which breaks the lower level of the range, this can be seen on the right side of the bottom window and is labelled "Bearish Breaking Volume".
What is interesting here is that the volume indicator has identified the range breakout when price was still above the lower level of the range. Following that break out volume signal, if we zoom out to a 4 hour chart to see what happened next.
The range breakout was confirmed and price and the volume trend continues to show a downward direction in the market. As for entries and stops that is not the intention of this indicator and will be down to other elements in your trading strategy or in our case other indicators.
Peak Formations
Peak formation refers to the point where an asset is over extended in one direction and there is a potential of change in direction, with a wider pullback or a reversal in the higher time frame trend. These formations are often seen with double bottoms (W patterns) or double tops (M patterns) . Unfortunately these patterns appear all over the chart and trading them in isolation will be challenging.
In this example of EURJPY on the 1 hour chart, we see price and the indicator in the bottom window for the first 3 weeks in March 2022. The pair is trending down which is confirmed by both price and the indicator. There are no signals points plotted on the volume trend line, until one appears on March 4th 2022.
Another one appeared on the next trading day of Monday the 7th and we now have these two signals relatively close to each other. This is interesting information, especially considering that there was no extreme signals for the previous couple of months.
Later that day the volume trend broke the previous volume level, after a W pattern was completed and a green bullish confirmation signal was printed. The following day another bullish confirmation signal is displayed to further confirm that we had made a peak formation reversal.
Please note that using the settings style tab, has enabled the change to the bearish extremes signal, changing the colour and shape to be an orange circle. Which for the purposes of this illustration is easier to see.
Another example of the same pair in August 2022, with a very similar confirmation sequence.
Stock Examples
Here on UBER on a 1 hour chart , is an example of how the indicator can be used in confluence with other trading strategies. If a trader was trading candle patterns, they may see this classic 1 hour bull flag pattern forming.
Without the volume trend analysis this looks like a good buy setup. Adding this analysis to the chart we clearly have a different view point.
Here is what subsequently happened to price and this is in a generally bullish market March 2023.
Scalping Entries
For those traders who work with super fast time frames like the 5 second or even on a 1 second charts, the volume indicator can be used to help time entries as a part of a wider trading strategy of trading a pullback or trading support and resistance levels.
Styling options in the indicator settings enabled this different view of the indicator output, which can be extremely useful for timing entries.
Here on this hot IPO stock, LUNR from February 16th 2023, we have an extremely strong move up from $13.80 to $18.00. One aspect of this move up, is that it is doing this on extremely light volume and the predominant market sentiment on the surface seems very bearish.
This would be a clear indication not to trade this stock at this moment in time, as a trader there would be lots of emotions of FOMO (fear of missing out) , seeing a stock making that kind off move on a new IPO - there is the sense that this stock will go to the moon and your not going to be involved.
As traders we have to consider the risk : reward potential. This stock could drop to $10.00 if someone put in a 50 k market sell order, as it is clear there are not the buyers to support that kind of liquidation.
The following charts are in the 5 second time frame, until otherwise stated
So we need to wait for some confirmation of buying liquidity before we can make any plans for taking an entry, which we get in the form of a couple of strong bullish candles on the chart below. Interestingly the price breaks the previous all time high for this stock, although the volume trend at this stage does not seem strong enough to consider an entry.
At this point we should be on the lookout for further buying liquidity, ideally to break the previous high volume line, which appears in the next chart. This would be the time to take an entry based on other aspects of a trading plan.
Having now taken an entry, we can use the indicator to understand the strength of the buying liquidity and identify areas where we should be looking to take profit or close out the trade. Looking at the volume trend profile shown in the chart below, there is no reason not to hold this stock for a wider move up.
In the next chart we see the first signs of some selling pressure, as the indicator shows signs of red. This would be the area to take some profit and look at a higher time frame perspective, to get the sense of whether to hold the remaining position.
Here on the 5 minute time frame the volume trend is still looking very strong to hold the remaining position. As it turned out it was a good place to take profit as it was just under the high of the day.
Knowing when an asset is going to reverse is not easy and this stock was way too over extended and a top had to finally come. This one minute view of the indicator, shows the point where you would see that the upward liquidity was over and you were now on the backside of the move, with no reason to trade further.
Here on a 15 minute chart you can see the full extent of the move and its reversal back to the original price. It provides a clear illustration that chasing trades through FOMO or holding and hoping is not a profitable approach. Being able to time your entries and exits, where you can clearly manage risk is one of the most important elements to any traders strategy.
This is an extreme example and not something you see every day in any market. It has been included within this narrative with the hope that it clearly illustrates the risk involved in trading and being able to mitigate them, has to be at the forefront of your mind.
Key Settings
Within the indicator settings there are a number of options that are available to users. All aspects of what you can see can either be changed or turned on or off in the "Style" tab as well as changing the colours and their transparency.
The available settings on the "Inputs" tab are for fine tuning the indicator to your style of trading. This fine tuning can be applied to the moving averages that can be displayed and follow the volume trend line as well as the volume filtering process.
The most important ones that are in need of explanation are outline below:
General Settings
"What type of asset is the Algo looking at" : Available Options = "Small Caps", "Large Caps", "Futures", "Currencies" (Default Setting = Currencies)
The indicator will make an assessment of the best settings to use as defaults for the volume filtering, confirmation and extremes signals. The defaults can be changed in the following sections using the override.
"Turn on Turbo Mode" : True or False (Default Settings = True)
This setting will give the indicator volume filtering processes a boost
Signal Settings
Based on the "Asset Type" from the general settings, the indicator will make an assessment of the best settings to use by default. These can be changed by using the settings below.
"Override Default Assessment Thresholds" = True / False
"Percentage Difference to Signify Trend Confirmation" = A percentage value that will tell the indicator how to identify the volume trend line swing points used to identify bullish or bearish confirmation signals. Values from 0.1 to 10 would make the most sense. A too high setting and you will not see any confirmation points plotted. Too low and you may see too many to be useful.
"Percentage Difference to Signify Extremes" = A percentage value that will tell the indicator how to identify the volume trend line swing points used to identify bullish or bearish confirmation signals. Values from 20 to 200 would make the most sense. A low a setting and you will see too many extreme points plotted.
Filter Settings
"Turn On Volume Assessment Filters" = True / False : The volume assessment filters are used to focus the "volume trend line" on higher volume extremes.
Based on the "Asset Type" from the general settings, the indicator will make an assessment of the best settings to use by default. These can be changed by using the settings below.
"Override Default Assessment Filters" = True / False
"Filter Volume using Setting" = The number used in this setting represents a value from 0 to 100. Zero will filter out no volume, whereas 100 would filter it all out. The default setting is 1, as there is a danger of setting this number too high and all you will see in the line chart is big steps up and down, with a plateaus in the middle. Which may be useful, although it would not be so helpful in divergence or volume line breaks.
Fast Moving Average
This is the fast moving average of the "Volume Trend Line".
"Moving Average Type" = The type of moving average calculation to be applied.
Default = "EMA"
Available Options: "SMA","EMA" ,"HMA" ,"SMMA (RMA)" ,"WMA" ,"VWMA"
Moving Average Key
SMA : Simple Moving Average
EMA : Exponential Moving Average
HMA : Hull Moving Average
SMMA (RMA) : Exponentially Weighted Moving Average (alpha = 1 / length.)
WMA : Weighted Moving Average
VWMA : Volume Weighted Moving Average
"Moving Average Length" = The number of candles back into the chart used to calculate the Moving Average. (The higher the number, the slower the moving average becomes)
Default Length = 60
"Apply Double Smoothing" = True or False : This is an option to turn on if an extra smoothing effect to the moving average if required.
Slow Moving Average
This is the slow moving average of the "Volume Trend Line".
"Moving Average Type" = The type of moving average calculation to be applied.
Default = "HMA"
Available Options: "SMA","EMA" ,"HMA" ,"SMMA (RMA)" ,"WMA" ,"VWMA"
(See moving average key)
"Moving Average Length" = The number of candles back into the chart used to calculate the Moving Average. (The higher the number, the slower the moving average becomes)
Default Length = 3500
(By default we have a higher number for the slow length compared to the long term length in the next setting. This is because using the Hull Moving Average, is an accelerated moving average that needs higher values to slow it down. If you were to change this to say an EMA, then you would need to change the length to something like 200, to put this slower moving average in context with the others).
Long Term Moving Average
This is a long term moving average of the "Volume Trend Line".
"Moving Average Type" = The type of moving average calculation to be applied.
Default = "EMA"
Available Options: "SMA","EMA" ,"HMA" ,"SMMA (RMA)" ,"WMA" ,"VWMA"
(See moving average key)
"Moving Average Length" = The number of candles back into the chart used to calculate the Moving Average. (The higher the number, the slower the moving average becomes)
Default Length = 400
"Apply Double Smoothing" = True or False : This is an option to turn on if an extra smoothing effect to the moving average if required.
Finally
We greatly appreciate the support and feedback from the Trading View community, and we are dedicated to continuing to improve our indicators with your support.
We want to help you manage risk, and that's why we emphasise that trading is risky and any technology used to support our trading decisions is based on information from the past. We encourage traders to take responsibility for their trading businesses and always prioritise risk management.
GKD-C Sigmoidal Normalized RSI [Loxx]Giga Kaleidoscope GKD-C Sigmoidal Normalized RSI 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 Stochastic 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: Sigmoidal Normalized RSI 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 Sigmoidal Normalized RSI
What is the Sigmoidal normalization?
Sigmoidal normalization is a mathematical technique used to transform data so that it is within a specific range or has a specific distribution. The sigmoid function used in this normalization is a mathematical function that maps any input value to a value between 0 and 1, and has an S-shaped curve.
The sigmoidal normalization process involves applying the sigmoid function to the data values, which maps the data to a range between 0 and 1. This range can be useful in situations where the data needs to be scaled to a specific range, such as when the data needs to be inputted into a machine learning algorithm that requires input features to be between 0 and 1.
One of the benefits of using sigmoidal normalization is that it can help to reduce the impact of outliers in the data. Outliers, or extreme values that are significantly different from the rest of the data, can have a significant impact on the mean and standard deviation of the data. By normalizing the data using a sigmoid function, the impact of outliers is reduced, and the data is scaled in a more even and consistent way.
Sigmoidal normalization can be especially useful in situations where the original data has a non-normal distribution. The sigmoid function can be used to transform the data to a more normal distribution, which can make it easier to analyze and model.
In summary, sigmoidal normalization is a mathematical technique used to transform data to a specific range or distribution by applying a sigmoid function to the data values. It can help to reduce the impact of outliers and can be especially useful in situations where the original data has a non-normal distribution.
What is RSI?
The Relative Strength Index ( RSI ) is a technical analysis indicator that is used to measure the strength of a security's price action. It was developed by J. Welles Wilder in 1978 and has since become a popular tool for traders and analysts.
The RSI is calculated by comparing the average gain of a security's price on up days to the average loss on down days over a given period of time. The RSI is displayed as a line graph that oscillates between zero and 100. Readings above 70 are considered overbought, while readings below 30 are considered oversold.
The formula for the RSI is as follows:
RSI = 100 - (100 / (1 + RS ))
Where:
RS = Average Gain / Average Loss
The calculation for Average Gain is:
((Current Price - Previous Price) if Current Price > Previous Price, otherwise 0) / n
The calculation for Average Loss is:
((Previous Price - Current Price) if Current Price < Previous Price, otherwise 0) / n
Where:
n = the number of periods used for the RSI calculation (usually 14)
The RSI can be used in a variety of ways, including identifying overbought and oversold conditions, as well as potential trend reversals. When the RSI rises above 70, it is considered overbought and indicates that the security may be due for a correction or reversal. Conversely, when the RSI falls below 30, it is considered oversold and indicates that the security may be due for a bounce or reversal.
In addition to overbought and oversold levels, traders can also look for divergences between the RSI and price action. For example, if the RSI is making higher highs while prices are making lower lows, it could indicate a potential trend reversal.
Overall, the RSI is a useful technical analysis tool for identifying potential price reversals and overbought/oversold conditions. However, like all technical indicators, it should be used in conjunction with other forms of analysis and risk management techniques to make informed trading decisions.
What is the Sigmoidal Normalized RSI?
This indicator indicator uses a proprietary smoothing function to smooth RSI after which it is fed through a Sigmoidal Normalization process to smooth one more time forcing the values to oscillator between -1 and 1. This greatly reduces noise and increases the signal quality of the output. This also helps identify reversals.
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.
GKD-C RSI on Jurik-Filtered Price [Loxx]Giga Kaleidoscope GKD-C RSI on Jurik-Filtered Price 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 Stochastic 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: RSI on Jurik-Filtered Price 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 RSI on Jurik-Filtered Price
What is RSI?
The Relative Strength Index (RSI) is a technical analysis indicator that is used to measure the strength of a security's price action. It was developed by J. Welles Wilder in 1978 and has since become a popular tool for traders and analysts.
The RSI is calculated by comparing the average gain of a security's price on up days to the average loss on down days over a given period of time. The RSI is displayed as a line graph that oscillates between zero and 100. Readings above 70 are considered overbought, while readings below 30 are considered oversold.
The formula for the RSI is as follows:
RSI = 100 - (100 / (1 + RS))
Where:
RS = Average Gain / Average Loss
The calculation for Average Gain is:
((Current Price - Previous Price) if Current Price > Previous Price, otherwise 0) / n
The calculation for Average Loss is:
((Previous Price - Current Price) if Current Price < Previous Price, otherwise 0) / n
Where:
n = the number of periods used for the RSI calculation (usually 14)
The RSI can be used in a variety of ways, including identifying overbought and oversold conditions, as well as potential trend reversals. When the RSI rises above 70, it is considered overbought and indicates that the security may be due for a correction or reversal. Conversely, when the RSI falls below 30, it is considered oversold and indicates that the security may be due for a bounce or reversal.
In addition to overbought and oversold levels, traders can also look for divergences between the RSI and price action. For example, if the RSI is making higher highs while prices are making lower lows, it could indicate a potential trend reversal.
Overall, the RSI is a useful technical analysis tool for identifying potential price reversals and overbought/oversold conditions. However, like all technical indicators, it should be used in conjunction with other forms of analysis and risk management techniques to make informed trading decisions.
What is Jurik Filter?
The Jurik Filter is a technical analysis tool that is used to filter out market noise and identify trends in financial markets. It was developed by Mark Jurik in the 1990s and is based on a non-linear smoothing algorithm that provides a more accurate representation of price movements.
Traditional moving averages, such as the Simple Moving Average ( SMA ) or Exponential Moving Average ( EMA ), are linear filters that produce a lag between price and the moving average line. This can cause false signals during periods of market volatility , which can result in losses for traders and investors.
The Jurik Filter is designed to address this issue by incorporating a damping factor into the smoothing algorithm. This damping factor adjusts the filter's responsiveness to the changes in price, allowing it to filter out market noise without overshooting price peaks and valleys.
The Jurik Filter is calculated using a mathematical formula that takes into account the current and past prices of an asset, as well as the volatility of the market. This formula incorporates the damping factor and produces a smoother price curve than traditional moving average filters.
One of the advantages of the Jurik Filter is its ability to adjust to changing market conditions. The damping factor can be adjusted to suit different securities and time frames, making it a versatile tool for traders and investors.
Traders and investors often use the Jurik Filter in conjunction with other technical analysis tools, such as the MACD or RSI , to confirm or complement their trading strategies. By filtering out market noise and identifying trends in the financial markets, the Jurik Filter can help improve the accuracy of trading signals and reduce the risks of false signals during periods of market volatility .
Overall, the Jurik Filter is a powerful technical analysis tool that can help traders and investors make more informed decisions about buying and selling securities. By providing a smoother price curve and reducing false signals, it can help improve trading performance and reduce risk in volatile markets.
What is the RSI on Jurik-Filtered Price?
RSI on Jurik-Filtered Price calculates RSI on the Jurik-filtered source price.
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.
GKD-C Jurik-Filtered RSI(var) [Loxx]Giga Kaleidoscope GKD-C Jurik-Filtered RSI(var) 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 Stochastic 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: Jurik-Filtered RSI(var) 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 Jurik-Filtered RSI(var)
What is RSI?
The Relative Strength Index (RSI) is a technical analysis indicator that is used to measure the strength of a security's price action. It was developed by J. Welles Wilder in 1978 and has since become a popular tool for traders and analysts.
The RSI is calculated by comparing the average gain of a security's price on up days to the average loss on down days over a given period of time. The RSI is displayed as a line graph that oscillates between zero and 100. Readings above 70 are considered overbought, while readings below 30 are considered oversold.
The formula for the RSI is as follows:
RSI = 100 - (100 / (1 + RS))
Where:
RS = Average Gain / Average Loss
The calculation for Average Gain is:
((Current Price - Previous Price) if Current Price > Previous Price, otherwise 0) / n
The calculation for Average Loss is:
((Previous Price - Current Price) if Current Price < Previous Price, otherwise 0) / n
Where:
n = the number of periods used for the RSI calculation (usually 14)
The RSI can be used in a variety of ways, including identifying overbought and oversold conditions, as well as potential trend reversals. When the RSI rises above 70, it is considered overbought and indicates that the security may be due for a correction or reversal. Conversely, when the RSI falls below 30, it is considered oversold and indicates that the security may be due for a bounce or reversal.
In addition to overbought and oversold levels, traders can also look for divergences between the RSI and price action. For example, if the RSI is making higher highs while prices are making lower lows, it could indicate a potential trend reversal.
Overall, the RSI is a useful technical analysis tool for identifying potential price reversals and overbought/oversold conditions. However, like all technical indicators, it should be used in conjunction with other forms of analysis and risk management techniques to make informed trading decisions.
What is Jurik Filter?
The Jurik Filter is a technical analysis tool that is used to filter out market noise and identify trends in financial markets. It was developed by Mark Jurik in the 1990s and is based on a non-linear smoothing algorithm that provides a more accurate representation of price movements.
Traditional moving averages, such as the Simple Moving Average ( SMA ) or Exponential Moving Average ( EMA ), are linear filters that produce a lag between price and the moving average line. This can cause false signals during periods of market volatility , which can result in losses for traders and investors.
The Jurik Filter is designed to address this issue by incorporating a damping factor into the smoothing algorithm. This damping factor adjusts the filter's responsiveness to the changes in price, allowing it to filter out market noise without overshooting price peaks and valleys.
The Jurik Filter is calculated using a mathematical formula that takes into account the current and past prices of an asset, as well as the volatility of the market. This formula incorporates the damping factor and produces a smoother price curve than traditional moving average filters.
One of the advantages of the Jurik Filter is its ability to adjust to changing market conditions. The damping factor can be adjusted to suit different securities and time frames, making it a versatile tool for traders and investors.
Traders and investors often use the Jurik Filter in conjunction with other technical analysis tools, such as the MACD or RSI , to confirm or complement their trading strategies. By filtering out market noise and identifying trends in the financial markets, the Jurik Filter can help improve the accuracy of trading signals and reduce the risks of false signals during periods of market volatility .
Overall, the Jurik Filter is a powerful technical analysis tool that can help traders and investors make more informed decisions about buying and selling securities. By providing a smoother price curve and reducing false signals, it can help improve trading performance and reduce risk in volatile markets.
What is the Jurik-Filtered RSI(var)?
Jurik-Filtered RSI(var) calculates RSI as the absolute difference between current price and 1-bar lagged price. This variation makes the RSI more dynamic to momentum changes in price. The output from this calculation is smoothed using a Jurik Filter after which it's reformatted into a RSI 1-100 value.
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.
