Quantum Currency MatrixOf all the four principal capital markets, the world of foreign exchange trading is the most complex and most difficult to master, unless of course you have the right tools! The reason for this complexity is not hard to understand.
First currencies are traded in pairs. Each position is a judgment of the forces driving two independent markets. If the GBP/USD for example is bullish, is this being driven by strength in the pound, or weakness in the US dollar. Imagine if we had to do the same thing trading stocks for example. Consider trading Google against Amazon. If this ‘pair’ were rising, is this being driven by strength in Google or weakness in Amazon? Almost impossible to analyze.
To compound this problem, every currency can be bought or sold against a myriad of other currencies. This raises the next key question. If the GBP/USD is bullish once again, is the British pound strong against all the other major currencies, such as the GBP/JPY, the GBP/CAD, the EUR/GBP etc. If it is, then this is clearly a sign that the UK pound is being bought universally in the market. Equally for the US dollar, if it is sold universally in pairs such as the USD/CAD, the USD/JPY and others, then we can assume that the GBP/USD is rising as a result of strong buying of the pound universally, and strong selling across the market of the US dollar.
Finally, we come to the third problem, which is trying to assess the strength of this buying or selling. After all a currency may be overbought (strong) or oversold (weak) but how strong is strong, and how weak is weak.
Consider this for a moment. Assume you have decided to buy the GBP/USD and have the following information to help you in your analysis:
- Whether the GBP is also being bought in all the other cross currency pairs
- Whether the USD is also being sold in all the other major currency pairs
- The relative strength of buying in the GBP/USD pair
Trading success is all about assessing risk and the probability of success on each trade. Would this information give you a high risk, medium or low risk trading position? And the answer……… is a low risk trading opportunity. After all, you are now taking a position based on a view across the market.
First, if you are basing your decision on universal buying or selling of a currency, then you are trading with the entire weight of the market, and not just on the analysis of one currency pair – it’s low risk. Second, if you know the relative strength of this buying or selling against all the other currency pairs, then this gives you the complete picture – if its strong, then again – it’s low risk. Third and last, if you know what the counter currency is also doing in terms of strong or weak, then once more if its strong – it’s low risk.
This is where the Quantum Currency Matrix steps in. It provides the solution to all three problems in one elegant indicator. It shows you the complete picture across the market in a simple matrix, which works in all timeframes from 1 minute to 1 month.
From the eight major currencies come the 28 currency pairs which are then displayed in a table, with their relative strength scores, updated second by second and minute by minute. As you can see, the Currency Matrix displays the complete spectrum of currency pair strength, from very bullish at the top of the matrix and bright green, to heavily bearish at the bottom of the matrix, and bright red. Those currency pairs moving up or down the ladder from bullish to bearish or bearish to bullish are then shaded in the transitional colors of orange, and yellow to light green.
Every pair is displayed with a ranking score. Above 0.00 indicates the pair is moving into a bullish phase, whilst a score below 0.00 indicates bearish momentum is increasing.
Each currency can then be isolated to show the 7 associated pairs and their relative scores. If all the associated pairs are showing similar strength (either bullish or bearish) then this is either a good time to join the move, or alternatively it may be an opportunity to wait for a reversal in trend as the pair becomes overbought or oversold.
The Quantum Currency Matrix gives you the tool to see the complexities of the Forex market in real time across all the related pairs, along with the strength of the buying and selling. Whilst it is possible to do this manually using multiple charts, what a manual matrix will not provide is any measure of the relative strength. The indicator does this for you automatically by considering the price action across all the related currency pairs and then deriving the relative strength scores accordingly. These are the ranking scores which you see displayed on each currency pair and by which they are ranked in the ladder.
Filter
The Currency Matrix indicator allows you to filter the currency pairs relevant to the currency you are analysing. An input is provided in the indicator’s settings window which you can click to select a currency.
- USD selects all currency pairs that contain the US Dollar.
- EUR selects all currency pairs that contain the Euro.
- GBP selects all currency pairs that contain the British Pound.
- CHF selects all currency pairs that contain the Swiss Franc.
- JPY selects all currency pairs that contain the Japanese Yen.
- CAD selects all currency pairs that contain the Canadian Dollar.
- AUD selects all currency pairs that contain the Australian Dollar.
- NZD selects all currency pairs that contain the New Zealand Dollar.
Click the Filter option box and select a currency in the list to apply a filter. If you like to undo a filter, simply select NONE. When a certain currency filter is in effect, the currency pairs that include the selected currency in the matrix appear in color.
Extremes
“How does the strongest and weakest currency pairs in the matrix compare to the past strongest and weakest currency pairs within the period?”
This is the question that the “All time HIGH”, “Average HIGH”, “All time LOW”, and “Average LOW” numbers answer. These pieces of information are found beside the top-most and bottom-most currency pair in the matrix.
The following numbers are found at the right side of the top-most currency pair in the matrix:
All time HIGH – displays the highest score achieved by a currency pair within the period
Average HIGH – displays the average highest score achieved by a currency pairs within the period
The following numbers are found at the right side of the bottom-most currency pair in the matrix:
All time LOW – displays the lowest score achieved by a currency pair within the period
Average LOW – displays the average lowest score achieved by a currency pair within the period
Currency Dashboard
The Quantum Currency Matrix is a unique indicator. In an instant, you can see which pairs are rising strongly or falling strongly in every timeframe, and on a single chart. Whilst the Quantum Currency Strength Indicator gives you the heads up on individual currency strength and weakness, the Quantum Currency Matrix then delivers the global view for that currency in all the related pairs and for each timeframe – instantly, and giving you the tools to trade every pair with complete confidence.
By itself, the Quantum Currency Matrix indicator is a powerful trading tool for identifying trading opportunities quickly and easily. However, it was developed as part of what we like to call the Quantum Currency Dashboard which consists of the following indicators:
- Quantum Currency Strength Indicator (CSI)
- Quantum Currency Matrix
- Quantum Currency Array
- Quantum Currency Heatmap
These four indicators then provide a unique and compact insight into all the various aspects of strength and weakness for both currencies and currency pairs, from trend and momentum to overbought and oversold. What is unique is that using four charts, you are then able to monitor the myriad combinations of strength, weakness, momentum, congestion and divergence across the entire forex complex at a click of a button. And even more powerfully, giving you the confidence to get in and stay in for maximum profits. No more missed opportunities, no more struggling with multiple charts, and no more trader regret, whatever your trading style or approach.
Komut dosyalarını "relative strength" için ara
[blackcat] L1 Value Trend IndicatorOVERVIEW
The L1 Value Trend Indicator is a sophisticated technical analysis tool designed for TradingView users seeking advanced market trend identification and trading signals. This comprehensive indicator combines multiple analytical techniques to provide traders with a holistic view of market dynamics, helping identify potential entry and exit points through various signal mechanisms. 📈 It features a main Value Trend line along with a lagged version, golden cross and dead cross signals, and multiple technical indicators including RSI, Williams %R, Stochastic %K/D, and Relative Strength calculations. The indicator also includes reference levels for support and resistance analysis, making it a versatile tool for both short-term and long-term trading strategies. ✅
FEATURES
📈 Primary Value Trend Line: Calculates a smoothed value trend using a combination of SMA and custom smoothing techniques
🔍 Value Trend Lag: Implements a lagged version of the main trend line for cross-over analysis
🚀 Golden Cross & Dead Cross Signals: Identifies buy/sell opportunities when the main trend line crosses its lagged version
💸 Multi-Indicator Integration: Combines multiple technical analysis tools for comprehensive market view
📊 RSI Calculations: Includes 6-period, 7-period, and 13-period RSI calculations for momentum analysis
📈 Williams %R: Provides overbought/oversold conditions using the Williams %R formula
📉 Stochastic Oscillator: Implements both Stochastic %K and %D calculations for momentum confirmation
📋 Relative Strength: Calculates relative strength based on highest highs and current price
✅ Visual Labels: Displays BUY and SELL labels on chart when crossover conditions are met
📣 Alert Conditions: Provides automated alert conditions for golden cross and dead cross events
📌 Reference Levels: Plots entry (25) and exit (75) reference lines for support/resistance analysis
HOW TO USE
Copy the Script: Copy the complete Pine Script code from the original file
Open TradingView: Navigate to TradingView website or application
Access Pine Editor: Go to the Pine Script editor (usually found in the chart toolbar)
Paste Code: Paste the copied script into the editor
Save Script: Save the script with a descriptive name like " L1 Value Trend Indicator"
Select Chart: Choose the chart where you want to apply the indicator
Add Indicator: Apply the indicator to your chart
Configure Parameters: Adjust input parameters to customize behavior
Monitor Signals: Watch for golden cross (BUY) and dead cross (SELL) signals
Use Reference Levels: Monitor entry (25) and exit (75) lines for support/resistance levels
LIMITATIONS
⚠️ Potential Repainting: The script may repaint due to lookahead bias in some calculations
📉 Lookahead Bias: Some calculations may reference future values, potentially causing repainting issues
🔄 Parameter Sensitivity: Results may vary significantly with different parameter settings
📉 Computational Complexity: May impact chart performance with heavy calculations on large datasets
📊 Resource Usage: Requires significant processing power for multiple indicator calculations
🔄 Data Sensitivity: Results may be affected by data quality and market conditions
NOTES
📈 Signal Timing: Cross-over signals may lag behind actual price movements
📉 Parameter Optimization: Optimal parameters may vary by market conditions and asset type
📋 Market Conditions: Performance may vary significantly across different market environments
📈 Multi-Indicator: Combine signals with other technical indicators for confirmation
📉 Timeframe Analysis: Use multiple timeframes for enhanced signal accuracy
📋 Volume Analysis: Incorporate volume data for additional confirmation
📈 Strategy Integration: Consider using this indicator as part of a broader trading strategy
📉 Risk Management: Use signals as part of a comprehensive risk management approach
📋 Backtesting: Test parameter combinations with historical data before live trading
THANKS
🙏 Original Creator: blackcat1402 creates the L1 Value Trend Indicator
📚 Community Contributions: Recognition to TradingView community for continuous improvements and contributions
📈 Collaborative Development: Appreciation for collaborative efforts in enhancing technical analysis tools
📉 TradingView Community: Special thanks to TradingView community members for their ongoing support and feedback
📋 Educational Resources: Recognition of educational resources that helped in understanding technical analysis principles
Session-Based Sentiment Oscillator [TradeDots]Track, analyze, and monitor market sentiment across global trading sessions with this advanced multi-session sentiment analysis tool. This script provides session-specific sentiment readings for Asian (Tokyo), European (London), and US (New York) markets, combining price action, volume analysis, and volatility factors into a comprehensive sentiment oscillator. It is an original indicator designed to help traders understand regional market psychology and capitalize on cross-session sentiment shifts directly on TradingView.
📝 HOW IT WORKS
1. Multi-Component Sentiment Engine
Price Action Momentum : Calculates normalized price movement relative to recent trading ranges, providing directional sentiment readings.
Volume-Weighted Analysis : When volume data is available, incorporates volume flow direction to validate price-based sentiment signals.
Volatility-Adjusted Factors : Accounts for changing market volatility conditions by comparing current ATR against historical averages.
Weighted Combination : Merges all components using optimized weightings (Price: 1.0, Volume: 0.3, Volatility: 0.2) for balanced sentiment readings.
2. Session-Segregated Tracking
Automatic Session Detection : Precisely identifies active trading sessions based on user-configured time parameters.
Independent Calculations : Maintains separate sentiment accumulation for each major session, updated only during respective active hours.
Historical Preservation : Stores session-specific sentiment values even when sessions are closed, enabling cross-session comparison.
Real-Time Updates : Continuously processes sentiment during active sessions while preserving inactive session data.
3. Cross-Session Transition Analysis
Sentiment Differential Detection : Monitors sentiment changes when transitioning between trading sessions.
Configurable Thresholds : Generates signals only when sentiment shifts exceed user-defined minimum thresholds.
Directional Signals : Provides distinct bullish and bearish transition alerts with visual markers.
Smart Filtering : Applies smoothing algorithms to reduce false signals from minor sentiment variations.
⚙️ KEY FEATURES
1. Session-Specific Dashboard
Real-Time Status Display : Shows current session activity (ACTIVE/CLOSED) for all three major sessions.
Sentiment Percentages : Displays precise sentiment readings as percentages for easy interpretation.
Strength Classification : Automatically categorizes sentiment as HIGH (>50%), MEDIUM (20-50%), or LOW (<20%).
Customizable Positioning : Place dashboard in any corner with adjustable size options.
2. Advanced Signal Generation
Transition Alerts : Triangle markers indicate significant sentiment shifts between sessions.
Extreme Conditions : Diamond markers highlight overbought/oversold threshold breaches.
Configurable Sensitivity : Adjust signal thresholds from 0.05 to 0.50 based on trading style.
Alert Integration : Built-in TradingView alert conditions for automated notifications.
3. Forex Currency Strength Analysis
Base/Quote Decomposition : For forex pairs, separates sentiment into individual currency strength components.
Major Currency Support : Analyzes USD, EUR, GBP, JPY, CHF, CAD, AUD, NZD strength relationships.
Relative Strength Display : Shows which currency is driving pair movement during active sessions.
4. Visual Enhancement System
Session Background Colors : Distinct background shading for each active trading session.
Overbought/Oversold Zones : Configurable extreme sentiment level visualization with colored zones.
Multi-Timeframe Compatibility : Works across all timeframes while maintaining session accuracy.
Customizable Color Schemes : Full color customization for dashboard, signals, and plot elements.
🚀 HOW TO USE IT
1. Add the Script
Search for "Session-Based Sentiment Oscillator " in the Indicators tab or manually add it to your chart. The indicator will appear in a separate pane below your main chart.
2. Configure Session Times
Asian Session : Set Tokyo market hours (default: 00:00-09:00) based on your chart timezone.
European Session : Configure London market hours (default: 07:00-16:00) for European analysis.
US Session : Define New York market hours (default: 13:00-22:00) for American markets.
Timezone Adjustment : Ensure session times match your broker's specifications and account for daylight saving changes.
3. Optimize Analysis Parameters
Sentiment Period : Choose 5-50 bars (default: 14) for sentiment calculation lookback period.
Smoothing Settings : Select 1-10 bars smoothing (default: 3) with SMA, EMA, or RMA options.
Component Selection : Enable/disable volume analysis, price action, and volatility factors based on available data.
Signal Sensitivity : Adjust threshold from 0.05-0.50 (default: 0.15) for transition signal generation.
4. Interpret Readings and Signals
Positive Values : Indicate bullish sentiment for the active session.
Negative Values : Suggest bearish sentiment conditions.
Dashboard Status : Monitor which session is currently active and their respective sentiment strengths.
Transition Signals : Watch for triangle markers indicating significant cross-session sentiment changes.
Extreme Alerts : Note diamond markers when sentiment reaches overbought (>70%) or oversold (<-70%) levels.
5. Set Up Alerts
Configure TradingView alerts for:
- Bullish session transitions
- Bearish session transitions
- Overbought condition alerts
- Oversold condition alerts
❗️LIMITATIONS
1. Data Dependency
Volume Requirements : Volume-based analysis only functions when volume data is provided by your broker. Many forex brokers do not supply reliable volume data.
Price Action Focus : In absence of volume data, sentiment calculations rely primarily on price movement and volatility factors.
2. Session Time Sensitivity
Manual Adjustment Required : Session times must be manually updated for daylight saving time changes.
Broker Variations : Different brokers may have slightly different session definitions requiring time parameter adjustments.
3. Ranging Market Limitations
Trend Bias : Sentiment calculations may be less reliable during extended sideways or low-volatility market conditions.
Lag Consideration : As with all sentiment indicators, readings may lag during rapid market transitions.
4. Regional Market Focus
Major Session Coverage : Designed primarily for major global sessions; may not capture sentiment from smaller regional markets.
Weekend Gaps : Does not account for weekend gap effects on sentiment calculations.
⚠️ RISK DISCLAIMER
Trading and investing carry significant risk and can result in financial loss. The "Session-Based Sentiment Oscillator " is provided for informational and educational purposes only. It does not constitute financial advice.
- Always conduct your own research and analysis
- Use proper risk management and position sizing in all trades
- Past sentiment patterns do not guarantee future market behavior
- Combine this indicator with other technical and fundamental analysis tools
- Consider overall market context and your personal risk tolerance
This script is an original creation by TradeDots, published under the Mozilla Public License 2.0.
Session-based sentiment analysis should be used as part of a comprehensive trading strategy. No single indicator can predict market movements with certainty. Exercise proper risk management and maintain realistic expectations about indicator performance across varying market conditions.
SuperSmoothed Volume Zone Oscillator------------------------------------------------------------------------------------
SUPERSMOOTHED VOLUME ZONE OSCILLATOR (SSVZO)
TECHNICAL INDICATOR DOCUMENTATION
------------------------------------------------------------------------------------
Table of Contents:
1. Original VZO Background
2. SuperSmoother Technology
3. SSVZO Components
3.1. Main SSVZO Oscillator
3.2. Momentum Velocity Component
3.3. Adaptive Levels
3.4. Static Levels
3.5. Trend Shift Detection
3.6. Glow Effect Visualization
4. References & Further Reading
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1. ORIGINAL VOLUME ZONE OSCILLATOR (VZO) BACKGROUND
------------------------------------------------------------------------------------
Creator: Walid Khalil (November 2009, Technical Analysis of Stocks & Commodities)
History: Khalil designed the VZO to address limitations in other volume indicators
by focusing on the relative balance between buying and selling volume while filtering
out market noise. The indicator identifies accumulation and distribution patterns.
Traditional Usage: The classic VZO uses a 14-period calculation setting and is
interpreted on a scale from -60% to +60%:
- Readings above +40% indicate strong buying pressure (potential overbought)
- Readings below -40% indicate strong selling pressure (potential oversold)
- The zero line acts as a key reference for trend changes
- Divergences between VZO and price offer valuable trading signals
Difference from Other Volume Indicators: Unlike simple volume indicators that only
track total volume, the VZO tracks the relative difference between up-volume and
down-volume, more effectively identifying buying/selling pressure imbalances and
potential reversal points.
------------------------------------------------------------------------------------
2. SUPERSMOOTHER FILTER TECHNOLOGY
------------------------------------------------------------------------------------
Creator: John F. Ehlers, an engineer specializing in digital signal processing for
trading systems.
Origins: Introduced in "Rocket Science for Traders" (2001) and refined in "Cybernetic
Analysis for Stocks and Futures" (2004). Represents the application of digital signal
processing techniques to financial markets.
Technical Foundation: The SuperSmoother is a two-pole low-pass filter specifically
designed to eliminate noise while preserving the underlying signal. It combines
principles of Butterworth and Gaussian filters to minimize both phase shift and
passband ripple.
Mathematical Implementation:
a1 = exp(-π * sqrt(2) / period)
b1 = 2 * a1 * cos(sqrt(2) * π / period)
c2 = b1
c3 = -a1²
c1 = 1 - c2 - c3
Advantages Over Traditional Filters:
- Reduces lag compared to simple moving averages
- Eliminates high-frequency market noise more effectively
- Minimizes unwanted ripples in the output signal
- Preserves important turning points in the data
- Superior handling of sudden market movements
According to Ehlers: "Conventional moving averages are plagued by excessive lag and/or
rippling in their passband. The SuperSmoother eliminates virtually all of this ripple
and has excellent transient response characteristics." (TASC Magazine, 2014)
------------------------------------------------------------------------------------
3. SSVZO COMPONENTS
------------------------------------------------------------------------------------
3.1. MAIN SSVZO OSCILLATOR
------------------------------------------------------------------------------------
Description: The core component measuring buying vs. selling volume pressure using
the SuperSmoother filter for enhanced noise reduction.
Calculation: SSVZO analyzes the relationship between up-volume (volume on rising
prices) and down-volume (volume on falling prices), applying exponential moving
averages to both components, then calculating their relative strength. The
SuperSmoother filter reduces market noise while preserving the underlying trend signal.
Implementation Advantage: By applying the SuperSmoother filter to the VZO calculation,
the SSVZO provides significantly cleaner signals with fewer false crossovers and more
accurate identification of true trend changes.
Interpretation:
- Values above zero indicate bullish volume dominance
- Values below zero indicate bearish volume dominance
- Readings above +60 suggest overbought conditions
- Readings below -60 suggest oversold conditions
- Crossovers of the zero line signal potential trend changes
Trading Application: Use SSVZO as a primary volume-based momentum indicator to
confirm price trends, identify divergences, and spot potential reversal zones.
------------------------------------------------------------------------------------
3.2. MOMENTUM VELOCITY COMPONENT
------------------------------------------------------------------------------------
Description: A histogram displaying the rate of change of momentum, showing how
quickly buying or selling pressure is accelerating or decelerating.
Calculation: Derived from price momentum over a user-defined period, with optional
adaptive filtering that adjusts sensitivity based on market volatility. The velocity
component shows the first derivative of momentum – essentially the "acceleration" of
market movement.
Technical Origin: Inspired by Ehlers' work on Hilbert Transforms and research on
cyclic components in financial markets, as detailed in "Cycle Analytics for Traders"
(2013).
Interpretation:
- Positive readings (teal bars) indicate accelerating upward momentum
- Negative readings (orange bars) suggest accelerating downward momentum
- Larger bars indicate stronger momentum acceleration
- Shrinking bars signal momentum deceleration
Trading Application: Use as an early warning system for potential trend exhaustion
or confirmation of a new trending move. When momentum velocity diverges from price,
it often precedes a reversal.
------------------------------------------------------------------------------------
3.3. ADAPTIVE LEVELS
------------------------------------------------------------------------------------
Description: Dynamic overbought and oversold boundaries that adjust to market
conditions, providing context-aware trading signals.
Calculation: Uses statistical methods based on the standard deviation of the SSVZO
values over a longer period. These levels automatically widen during higher volatility
periods and narrow during consolidation.
Research Base: Draws from Perry Kaufman's work on Adaptive Moving Averages (AMA) and
Bollinger's research on dynamic volatility bands, as published in "Trading Systems
and Methods" (2013).
Interpretation:
- Adaptive Overbought (dotted circles above): Dynamic ceiling that expands/contracts
based on market volatility
- Adaptive Oversold (dotted circles below): Dynamic floor that expands/contracts based
on market volatility
Trading Application: More reliable for identifying extremes than static levels,
particularly in changing market conditions or different instruments. Touching these
levels often provides higher-probability reversal signals.
------------------------------------------------------------------------------------
3.4. STATIC LEVELS
------------------------------------------------------------------------------------
Description: Fixed overbought and oversold horizontal lines that provide consistent
reference points for excess market conditions.
Calculation: Preset at +60 (overbought) and -60 (oversold) based on historical
analysis of volume behavior across multiple markets, extending the classic VZO range.
Interpretation:
- Readings above +60 suggest potential buying exhaustion
- Readings below -60 indicate potential selling exhaustion
- Duration spent beyond these levels correlates with reversal probability
Trading Application: Use as baseline reference points for extreme conditions. Most
effective when combined with other confirmation signals like divergences or
candlestick patterns.
------------------------------------------------------------------------------------
3.5. TREND SHIFT DETECTION
------------------------------------------------------------------------------------
Description: Visual markers and optional background shading highlighting potential
trend changes when the SSVZO crosses the zero line.
Calculation: Based on mathematical crossovers of the SSVZO value above or below the
zero line, with pattern recognition to reduce false signals.
Research Foundation: Incorporates concepts from Dr. Alexander Elder's "triple screen
trading system" and Mark Chaikin's volume-based trend identification research.
Interpretation:
- Upward triangles indicate bullish trend shifts (SSVZO crossing above zero)
- Downward triangles indicate bearish trend shifts (SSVZO crossing below zero)
- Background shading emphasizes the new trend direction
Trading Application: These signals often precede price trend changes and can serve
as entry triggers when aligned with the higher timeframe trend.
------------------------------------------------------------------------------------
3.6. GLOW EFFECT VISUALIZATION
------------------------------------------------------------------------------------
Description: An aesthetic enhancement creating a gradient "glow" around the main SSVZO
line, improving visual clarity and emphasizing signal strength.
Calculation: Generated using percentage-based bands around the main SSVZO value, with
multiple translucent layers to create a subtle illumination effect.
Design Inspiration: Inspired by modern UI/UX design principles for financial
dashboards and the MATS (Moving Average Trend Sniper) indicator's visual presentation,
enhancing perception of signal strength through visual intensity.
Interpretation:
- Teal glow indicates positive SSVZO values (bullish)
- Orange glow indicates negative SSVZO values (bearish)
- Glow intensity correlates with the strength of the signal
Trading Application: Beyond aesthetics, the glow creates visual emphasis that makes
trend direction, strength, and changes more immediately apparent, particularly useful
during fast-moving market conditions.
------------------------------------------------------------------------------------
4. REFERENCES & FURTHER READING
------------------------------------------------------------------------------------
1. Ehlers, J. F. (2001). "Rocket Science for Traders: Digital Signal Processing
Applications." John Wiley & Sons.
2. Ehlers, J. F. (2004). "Cybernetic Analysis for Stocks and Futures: Cutting-Edge
DSP Technology to Improve Your Trading." John Wiley & Sons.
3. Ehlers, J. F. (2013). "Cycle Analytics for Traders: Advanced Technical Trading
Concepts." John Wiley & Sons.
4. Khalil, W. (2009). "The Volume Zone Oscillator." Technical Analysis of Stocks &
Commodities, November 2009.
5. Kaufman, P. J. (2013). "Trading Systems and Methods." 5th Edition, Wiley Trading.
6. Elder, A. (2002). "Come Into My Trading Room: A Complete Guide to Trading."
John Wiley & Sons.
7. Bollinger, J. (2002). "Bollinger on Bollinger Bands." McGraw-Hill Education.
------------------------------------------------------------------------------------
END OF DOCUMENTATION
------------------------------------------------------------------------------------
Smart Trend Lines [The_lurker]
Smart Trend Lines
A multi-level trend classifier that detects bullish and bearish conditions using a methodology based on drawing trend lines—main, intermediate, and short-term—by identifying peaks and troughs. The tool highlights trend strength by applying filters such as the Average Directional Index (ADX) (A), Relative Strength Index (RSI) (R), and Volume (V), making it easier to interpret trend strength. The filter markers (V, A, R) in the Smart Trend Lines indicator are powerful tools for assessing the reliability of breakouts. Breakouts containing are the most reliable, as they indicate strong volume support, trend strength, and favorable momentum. Breakouts with partial filters (such as or ) require additional confirmation, while breakouts without filters ( ) should be avoided unless supported by other strong signals. By understanding the meaning of each filter and the market context.
Core Functionality
1. Trend Line Types
The indicator generates three distinct trend line categories, each serving a specific analytical purpose:
Main Trend Lines: These are long-term trend lines designed to capture significant market trends. They are calculated based on pivot points over a user-defined period (default: 50 bars). Main trend lines are ideal for identifying macro-level support and resistance zones.
Mid Trend Lines: These are medium-term trend lines (default: 21 bars) that focus on intermediate price movements. They provide a balance between short-term fluctuations and long-term trends, suitable for swing trading strategies.
Short Trend Lines: These are short-term trend lines (default: 9 bars) that track rapid price changes. They are particularly useful for scalping or day trading, highlighting immediate support and resistance levels.
Each trend line type can be independently enabled or disabled, allowing traders to tailor the indicator to their preferred timeframes.
2. Breakout Detection
The indicator employs a robust breakout detection system that identifies when the price crosses a trend line, signaling a potential trend reversal or continuation. Breakouts are validated using the following filters:
ADX Filter: The Average Directional Index (ADX) measures trend strength. A user-defined threshold (default: 20) ensures that breakouts occur during strong trends, reducing false signals in range-bound markets.
RSI Filter: The Relative Strength Index (RSI) identifies overbought or oversold conditions. Breakouts are filtered based on RSI thresholds (default: 65 for overbought, 35 for oversold) to avoid signals in extreme market conditions.
Volume Filter: Breakouts are confirmed only when trading volume exceeds a moving average (default: 20 bars) and aligns with the breakout direction (e.g., higher volume on bullish breakouts when the candle closes higher).
Breakout events are marked with labels on the chart, indicating the type of trend line broken (Main, Mid, or Short) and the filters satisfied (Volume, ADX, RSI). Alerts are triggered for each breakout, providing real-time notifications.
3. Customization Options
The indicator offers extensive customization through input settings, organized into logical groups for ease of use:
Main Trend Line Settings
Length: Defines the number of bars used to calculate pivot points (default: 50).
Bullish Color: Color for upward-sloping (bullish) main trend lines (default: green).
Bearish Color: Color for downward-sloping (bearish) main trend lines (default: red).
Style: Line style options include solid, dashed, or dotted (default: solid).
Mid Trend Line Settings
Length: Number of bars for mid-term pivot points (default: 21).
Show/Hide: Toggle visibility of mid trend lines (default: enabled).
Bullish Color: Color for bullish mid trend lines (default: lime).
Bearish Color: Color for bearish mid trend lines (default: maroon).
Style: Line style (default: dashed).
Short Trend Line Settings
Length: Number of bars for short-term pivot points (default: 9).
Show/Hide: Toggle visibility of short trend lines (default: enabled).
Bullish Color: Color for bullish short trend lines (default: teal).
Bearish Color: Color for bearish short trend lines (default: purple).
Style: Line style (default: dotted).
General Display Settings
Break Check Price: Selects the price type for breakout detection (Close, High, or Low; default: Close).
Show Previous Trendlines: Option to display historical main trend lines (default: disabled).
Label Size: Size of breakout labels (Tiny, Small, Normal, Large, Huge; default: Small).
Filter Settings
ADX Threshold: Minimum ADX value for trend strength confirmation (default: 25).
Volume MA Period: Period for the volume moving average (default: 20).
RSI Filter: Enable/disable RSI filtering (default: enabled).
RSI Upper Threshold: Upper RSI limit for overbought conditions (default: 65).
RSI Lower Threshold: Lower RSI limit for oversold conditions (default: 35).
4. Technical Calculations
The indicator relies on several technical calculations to ensure accuracy:
Pivot Points: Pivot highs and lows are detected using the ta.pivothigh and ta.pivotlow functions, with separate lengths for Main, Mid, and Short trend lines.
Slope Calculation: The slope of each trend line is calculated as the change in price divided by the change in bar index between two pivot points.
ADX Calculation: ADX is computed using a 14-period Directional Movement Index (DMI), with smoothing over 14 bars.
RSI Calculation: RSI is calculated over a 14-period lookback using the ta.rsi function.
Volume Moving Average: A simple moving average (SMA) of volume is used to determine if current volume exceeds the average.
5. Strict Mode Validation
To ensure the reliability of trend lines, the indicator employs a strict mode check:
For bearish trend lines, all prices between pivot points must remain below the projected trend line.
For bullish trend lines, all prices must remain above the projected trend line.
Post-pivot break checks ensure that no breakouts occur between pivot points, enhancing the validity of the trend line.
6. Trend Line Extension
Trend lines are dynamically extended forward until a breakout occurs. The extension logic:
Projects the trend line using the calculated slope.
Continuously validates the extension using strict mode checks.
Stops extension upon a breakout, fixing the trend line at the breakout point.
7. Alerts and Labels
Labels: Breakout labels are placed above (for bearish breakouts) or below (for bullish breakouts) the price bar. Labels include:
A prefix indicating the trend line type (B for Main, M for Mid, S for Short).
A suffix showing satisfied filters (e.g., for Volume, ADX, and RSI).
Alerts: Each breakout triggers a one-time alert per bar close, with a descriptive message indicating the trend line type and filters met.
Detailed Code Breakdown
1. Initialization and Inputs
The script begins by defining the indicator with indicator('Smart Trend Lines ', overlay = true), ensuring it overlays on the price chart. Input settings are grouped into categories (Main, Mid, Short, General Display, Filters) for user convenience. Each input includes a tooltip in both English and Arabic, enhancing accessibility.
2. Technical Indicator Calculations
Volume MA: Calculated using ta.sma(volume, volPeriod) to compare current volume against the average.
ADX: Computed using custom dirmov and adx functions, which calculate the Directional Movement Index and smooth it over 14 periods.
RSI: Calculated with ta.rsi(close, rsiPeriod) over 14 periods.
Price Selection: The priceToCheck function selects the price type (Close, High, or Low) for breakout detection.
3. Pivot Detection
Pivot points are detected using ta.pivothigh and ta.pivotlow for each trend line type. The lookback period is set to the respective trend line length (e.g., 50 for Main, 21 for Mid, 9 for Short).
4. Trend Line Logic
For each trend line type (Main, Mid, Short):
Bearish Trend Lines: Identified when two consecutive pivot highs form a downward slope. The script validates the trend line using strict mode and post-pivot break checks.
Bullish Trend Lines: Identified when two consecutive pivot lows form an upward slope, with similar validation.
Trend lines are drawn using line.new, with separate lines for the initial segment (between pivots) and the extended segment (from the second pivot forward).
5. Breakout Detection and Labeling
Breakouts are detected when the selected price crosses the trend line level. The script checks:
Volume conditions (above average and aligned with candle direction).
ADX condition (above threshold).
RSI condition (within thresholds if enabled). Labels are created with label.new, and alerts are triggered with alert.
6. Trend Line Extension
The extendTrendline function dynamically updates the trend line’s endpoint unless a breakout occurs. It uses strict mode checks to ensure the trend line remains valid.
7. Previous Trend Lines
If enabled, previous main trend lines are stored in arrays (previousBearishStartLines, previousBullishTrendLines, etc.) and displayed on the chart, providing historical context.
Disclaimer:
The information and publications are not intended to be, nor do they constitute, financial, investment, trading, or other types of advice or recommendations provided or endorsed by TradingView.
Range Filter Buy and Sell 5min## **Enhanced Range Filter Strategy: A Comprehensive Overview**
### **1. Introduction**
The **Enhanced Range Filter Strategy** is a powerful technical trading system designed to identify high-probability trading opportunities while filtering out market noise. It utilizes **range-based trend filtering**, **momentum confirmation**, and **volatility-based risk management** to generate precise entry and exit signals. This strategy is particularly useful for traders who aim to capitalize on trend-following setups while avoiding choppy, ranging market conditions.
---
### **2. Key Components of the Strategy**
#### **A. Range Filter (Trend Determination)**
- The **Range Filter** smooths price fluctuations and helps identify clear trends.
- It calculates an **adjusted price range** based on a **sampling period** and a **multiplier**, ensuring a dynamic trend-following approach.
- **Uptrends:** When the current price is above the range filter and the trend is strengthening.
- **Downtrends:** When the price falls below the range filter and momentum confirms the move.
#### **B. RSI (Relative Strength Index) as Momentum Confirmation**
- RSI is used to **filter out weak trades** and prevent entries during overbought/oversold conditions.
- **Buy Signals:** RSI is above a certain threshold (e.g., 50) in an uptrend.
- **Sell Signals:** RSI is below a certain threshold (e.g., 50) in a downtrend.
#### **C. ADX (Average Directional Index) for Trend Strength Confirmation**
- ADX ensures that trades are only taken when the trend has **sufficient strength**.
- Avoids trading in low-volatility, ranging markets.
- **Threshold (e.g., 25):** Only trade when ADX is above this value, indicating a strong trend.
#### **D. ATR (Average True Range) for Risk Management**
- **Stop Loss (SL):** Placed **one ATR below** (for long trades) or **one ATR above** (for short trades).
- **Take Profit (TP):** Set at a **3:1 reward-to-risk ratio**, using ATR to determine realistic price targets.
- Ensures volatility-adjusted risk management.
---
### **3. Entry and Exit Conditions**
#### **📈 Buy (Long) Entry Conditions:**
1. **Price is above the Range Filter** → Indicates an uptrend.
2. **Upward trend strength is positive** (confirmed via trend counter).
3. **RSI is above the buy threshold** (e.g., 50, to confirm momentum).
4. **ADX confirms trend strength** (e.g., above 25).
5. **Volatility is supportive** (using ATR analysis).
#### **📉 Sell (Short) Entry Conditions:**
1. **Price is below the Range Filter** → Indicates a downtrend.
2. **Downward trend strength is positive** (confirmed via trend counter).
3. **RSI is below the sell threshold** (e.g., 50, to confirm momentum).
4. **ADX confirms trend strength** (e.g., above 25).
5. **Volatility is supportive** (using ATR analysis).
#### **🚪 Exit Conditions:**
- **Stop Loss (SL):**
- **Long Trades:** 1 ATR below entry price.
- **Short Trades:** 1 ATR above entry price.
- **Take Profit (TP):**
- Set at **3x the risk distance** to achieve a favorable risk-reward ratio.
- **Ranging Market Exit:**
- If ADX falls below the threshold, indicating a weakening trend.
---
### **4. Visualization & Alerts**
- **Colored range filter line** changes based on trend direction.
- **Buy and Sell signals** appear as labels on the chart.
- **Stop Loss and Take Profit levels** are plotted as dashed lines.
- **Gray background highlights ranging markets** where trading is avoided.
- **Alerts trigger on Buy, Sell, and Ranging Market conditions** for automation.
---
### **5. Advantages of the Enhanced Range Filter Strategy**
✅ **Trend-Following with Noise Reduction** → Helps avoid false signals by filtering out weak trends.
✅ **Momentum Confirmation with RSI & ADX** → Ensures that only strong, valid trades are executed.
✅ **Volatility-Based Risk Management** → ATR ensures adaptive stop loss and take profit placements.
✅ **Works on Multiple Timeframes** → Effective for day trading, swing trading, and scalping.
✅ **Visually Intuitive** → Clearly displays trade signals, SL/TP levels, and trend conditions.
---
### **6. Who Should Use This Strategy?**
✔ **Trend Traders** who want to enter trades with momentum confirmation.
✔ **Swing Traders** looking for medium-term opportunities with a solid risk-reward ratio.
✔ **Scalpers** who need precise entries and exits to minimize false signals.
✔ **Algorithmic Traders** using alerts for automated execution.
---
### **7. Conclusion**
The **Enhanced Range Filter Strategy** is a powerful trading tool that combines **trend-following techniques, momentum indicators, and risk management** into a structured, rule-based system. By leveraging **Range Filters, RSI, ADX, and ATR**, traders can improve trade accuracy, manage risk effectively, and filter out unfavorable market conditions.
This strategy is **ideal for traders looking for a systematic, disciplined approach** to capturing trends while **avoiding market noise and false breakouts**. 🚀
Nasan Ultimate Health Index (NUHI)The Nasan Ultimate Health Index (NUHI) is a technical indicator designed to measure the relative health of a stock compared to a benchmark index or sector. By incorporating price action, volume dynamics, and volatility, NUHI provides traders with a clearer picture of a stock’s performance relative to the broader market.
The NUHI is based on the idea that a stock’s relative strength and momentum can be assessed more effectively when adjusted for volume behavior and benchmark comparison. Instead of looking at price movement alone, this indicator factors in:
The stock’s price trend (via EMA)
Volume participation (green vs. red volume) and volume ratio - SMA(volume, 21)/ SMA(volume, 252)
Volatility-adjusted performance (ATR-based scaling)
Comparison with a selected benchmark (e.g., SPX, NDX, sector ETFs)
This results in a normalized and comparative score that helps traders identify outperforming, neutral, and underperforming stocks within a specific market environment.
The NUHI is constructed using the following elements:
1️⃣ Stock Raw Score (Unadjusted Momentum)
The exponential moving average (EMA) of the hlc3 (average of high, low, close) is used to define the price trend.
The difference between the current EMA and the EMA from n bars ago shows whether the stock is gaining or losing momentum.
This difference is divided by the ATR (Average True Range) to adjust for volatility.
2️⃣ Volume Behavior Adjustment
Volume is split into green volume (up candles) and red volume (down candles).
The ratio of green to red volume determines whether buyers or sellers dominate over the selected period (n bars).
If the stock is in an uptrend, green volume is weighted higher; if in a downtrend, red volume is weighted higher.
The stock’s Volume Ratio (short-term SMA divided by long-term SMA) is adjusted based on this weight.
3️⃣ Benchmark Comparison
A similar Raw Score calculation is performed on the selected benchmark (SPX, NDX, or sector ETF).
Benchmark price movements, volume behavior, and ATR adjustments mirror the stock’s calculations.
This provides a reference point for evaluating the stock’s relative strength.
4️⃣ Normalization Process
Both the stock and benchmark raw scores are min-max normalized over the past 252 bars (1-year lookback).
This scales values between 0 and 1, ensuring fair comparisons regardless of absolute price differences.
5️⃣ NUHI Calculation
The final NUHI value is computed using a logarithmic ratio between the normalized stock score and the normalized benchmark score:
This transformation ensures a more symmetrical representation of overperformance and underperformance.
Performance Zones
Strong Outperforming (NUHI between >0.41 and 0.69)
Leading (NUHI between >0.10 and 0.41)
Transitioning Outperformance (NUHI between 0.10 and 0)
Equilibrium (NUHI 0)
Transitioning Underperformance (NUHI between -0.10 and 0)
Lagging (NUHI between < -0.1 and -0.41)
Strong Underperforming (NUHI between< -0.41 and -0.69 )
How to Use NUHI
✅ Identifying Strong Stocks
If NUHI > 0, the stock is outperforming its benchmark.
If NUHI < 0, the stock is underperforming the benchmark.
✅ Trend Confirmation
A steadily rising NUHI and raw score (colored green) suggests sustained strength bullish conditions.
A falling NUHI and raw score (colored orange) indicates weakness and possible rotation into other assets.
✅ Finding Reversals
Bullish Divergence: If NUHI is improving while the stock’s raw score is negative, it may signal a bottoming opportunity.
Bearish Signs: If NUHI is dropping despite price strength, it could hint at underlying weakness.
Why a Stock in a Downtrend Can Have NUHI > 0 (and Vice Versa )
NUHI measures performance relative to both its own history and the benchmark.
A stock’s recent movement is compared to how it usually behaves and how the benchmark is performing.
Example Scenarios:
Stock in a Downtrend but NUHI > 0
The stock may still be in a downtrend (negative raw score), but it’s performing better relative to its past downtrend behavior and better than the benchmark over the same period.
This could mean it’s showing relative strength compared to the broader market or sector.
Stock in an Uptrend but NUHI < 0
Even in a uptrend (positive raw score), the stock might be underperforming relative to its past uptrend behavior and underperforming the benchmark.
What This Means:
NUHI > 0 in a downtrend → The stock is falling less aggressively than usual and/or holding up better than the benchmark.
NUHI < 0 in an uptrend → The stock is gaining less than expected based on its history and/or lagging behind the benchmark.
NUHI helps identify relative strength or weakness .
Rosiz Support 2### **Indicator Name**: Custom RSI, Stochastic, and ADX
### **Description**:
This is a multi-functional indicator that combines three popular technical analysis tools—**RSI (Relative Strength Index)**, **Stochastic Oscillator**, and **ADX (Average Directional Index)**—into a single, customizable pane. This indicator helps traders analyze momentum, overbought/oversold conditions, and trend strength simultaneously, making it a powerful tool for making informed trading decisions.
---
### **Features**:
1. **RSI (Relative Strength Index)**:
- Measures the speed and change of price movements.
- Helps identify overbought (>70) and oversold (<30) conditions.
- Includes customizable length and source options.
- Background shading visually highlights overbought and oversold zones.
2. **Stochastic Oscillator**:
- Determines momentum by comparing a security's closing price to its price range over a specific period.
- Includes %K and %D lines for crossovers, which signal potential entry or exit points.
- Highlights overbought (>80) and oversold (<20) zones with background fill.
3. **ADX (Average Directional Index)**:
- Measures trend strength (higher values indicate stronger trends).
- Includes customizable smoothing and DI (Directional Indicator) length.
---
### **How to Use**:
- **RSI**: Look for overbought or oversold conditions for potential reversal points. Divergences between price and RSI may signal weakening trends.
- **Stochastic Oscillator**: Watch for %K and %D crossovers near overbought or oversold zones to confirm buy or sell signals.
- **ADX**: Use ADX values to assess trend strength:
- **ADX > 25**: Strong trend.
- **ADX < 20**: Weak or ranging market.
---
### **Customization Options**:
- **RSI Settings**: Adjust length, source, and visual parameters.
- **Stochastic Settings**: Modify %K and %D lengths and smoothing factors.
- **ADX Settings**: Fine-tune smoothing and directional index lengths.
---
### **Advantages**:
- Combines three indicators into one, reducing chart clutter.
- Customizable inputs for flexibility in various trading strategies.
- Visual enhancements (background fills and lines) for better readability.
This indicator is perfect for traders looking to combine momentum analysis, overbought/oversold signals, and trend strength in a single tool!
ZERE Majors System [FahimK3]ZERE Majors System
This system introduces an innovative approach to crypto portfolio management through a dynamic matrix-based rotation methodology. At its core, the system utilizes a proprietary scoring matrix that directly compares the relative strength between BTC, ETH, and SOL, creating a more nuanced understanding of asset relationships than traditional indicators alone could provide.
The fundamental innovation lies in how the system evaluates cryptocurrencies. Rather than analyzing each asset independently, it employs a comprehensive matrix where each asset is scored against others through direct pair-wise comparisons. This creates a network of relationships that reveals underlying strength patterns that might be missed by conventional analysis methods. The scoring process incorporates both momentum and relative performance metrics, ensuring that capital is allocated to the truly strongest asset rather than just the one showing temporary strength.
While the exact scoring calculations remain proprietary, the system's framework combines relative strength principles with adaptive thresholds that automatically adjust to changing market conditions. This differs from standard relative strength approaches by considering the complete web of relationships between assets rather than isolated comparisons.
The regime filter serves as a secondary confirmation layer, using volatility and momentum metrics to validate the primary matrix signals. When market conditions become unfavorable, the system automatically moves to cash, providing an additional layer of capital protection.
Performance tracking includes comprehensive metrics comparing the rotation strategy against a standard buy-and-hold approach. The visual interface displays the scoring matrix, current positions, and equity curves, allowing traders to understand position rationale in real-time.
Recommended Usage:
- Timeframe: Daily chart
- Starting Capital: Customizable for portfolio size
- Scoring Method: Choice between UNI.v2 and UNI.v3
Note: While this system incorporates some standard technical elements, its value lies in the unique matrix-based rotation methodology that provides a more complete picture of relative strength than traditional indicators used in isolation.
RS Cycles [QuantVue]The RS Cycles indicator is a technical analysis tool that expands upon traditional relative strength (RS) by incorporating Beta-based adjustments to provide deeper insights into a stock's performance relative to a benchmark index. It identifies and visualizes positive and negative performance cycles, helping traders analyze trends and make informed decisions.
Key Concepts:
Traditional Relative Strength (RS):
Definition: A popular method to compare the performance of a stock against a benchmark index (e.g., S&P 500).
Calculation: The traditional RS line is derived as the ratio of the stock's closing price to the benchmark's closing price.
RS=Stock Price/Benchmark Price
Usage: This straightforward comparison helps traders spot periods of outperformance or underperformance relative to the market or a specific sector.
Beta-Adjusted Relative Strength (Beta RS):
Concept: Traditional RS assumes equal volatility between the stock and benchmark, but Beta RS accounts for the stock's sensitivity to market movements.
Calculation:
Beta measures the stock's return relative to the benchmark's return, adjusted by their respective volatilities.
Alpha is then computed to reflect the stock's performance above or below what Beta predicts:
Alpha=Stock Return−(Benchmark Return×β)
Significance: Beta RS highlights whether a stock outperforms the benchmark beyond what its Beta would suggest, providing a more nuanced view of relative strength.
RS Cycles:
The indicator identifies positive cycles when conditions suggest sustained outperformance:
Short-term EMA (3) > Mid-term EMA (10) > Long-term EMA (50).
The EMAs are rising, indicating positive momentum.
RS line shows upward movement over a 3-period window.
EMA(21) > 0 confirms a broader uptrend.
Negative cycles are marked when the opposite conditions are met:
Short-term EMA (3) < Mid-term EMA (10) < Long-term EMA (50).
The EMAs are falling, indicating negative momentum.
RS line shows downward movement over a 3-period window.
EMA(21) < 0 confirms a broader downtrend.
This indicator combines the simplicity of traditional RS with the analytical depth of Beta RS, making highlighting true relative strength and weakness cycles.
Currency StrengthThis innovative Currency Strength Indicator is a powerful tool for forex traders, offering a comprehensive and visually intuitive way to analyze the relative strength of multiple currencies simultaneously. Here's what makes this indicator stand out:
Extensive Currency Coverage
One of the most striking features of this indicator is its extensive coverage of currencies. While many similar tools focus on just the major currencies, this indicator includes:
Major currencies: USD, EUR, JPY, GBP, CHF, CAD, AUD, NZD
Additional currencies: CNY, HKD, KRW, MXN, INR, RUB, SGD, TRY, BRL, ZAR, THB
This wide range allows traders to gain insights into a broader spectrum of the forex market, including emerging markets and less commonly traded currencies.
Unique Visual Presentation
The indicator boasts a clear and user-friendly interface:
Each currency is represented by a distinct colored line for easy identification
A legend is prominently displayed at the top of the chart, using color-coded labels for quick reference
Users can customize which currencies to display, allowing for a tailored analysis
This clean, organized presentation enables traders to quickly grasp the relative strengths of different currencies at a glance.
Robust Measurement Methodology
The indicator employs the True Strength Index (TSI) to calculate currency strength, which provides several advantages:
TSI is a momentum oscillator that shows both trend direction and overbought/oversold conditions
It uses two smoothing periods (fast and slow), which helps filter out market noise and provides more reliable signals
The indicator calculates TSI for each currency index (e.g., DXY for USD, EXY for EUR), ensuring a comprehensive strength measurement
By using TSI, this indicator offers a more nuanced and accurate representation of currency strength compared to simpler moving average-based indicators.
Customization and Flexibility
Traders can fine-tune the indicator to suit their needs:
Adjustable TSI parameters (fast and slow periods)
Ability to show/hide specific currencies
Customizable color scheme for each currency line
Practical Applications
This Currency Strength Indicator can be used for various trading strategies:
Identifying potential trend reversals when a currency reaches extreme overbought or oversold levels
Spotting divergences between currency pairs
Confirming trends across multiple timeframes
Enhancing multi-pair trading strategies
By providing a clear, comprehensive, and customizable view of currency strength across a wide range of currencies, this indicator equips traders with valuable insights for making informed trading decisions in the complex world of forex.
Uptrick: MultiTrend Squeeze System**Uptrick: MultiTrend Squeeze System Indicator: The Ultimate Trading Tool for Precision and Versatility 📈🔥**
### Introduction
The MultiTrend Squeeze System is a powerful, multi-faceted trading indicator designed to provide traders with precise buy and sell signals by combining the strengths of multiple technical analysis tools. This script isn't just an indicator; it's a comprehensive trading system that merges the power of SuperTrend, RSI, Volume Filtering, and Squeeze Momentum to give you an unparalleled edge in the market. Whether you're a day trader looking for short-term opportunities or a swing trader aiming to catch longer-term trends, this indicator is tailored to meet your needs.
### Key Features and Unique Aspects
1. **SuperTrend with Dynamic Adjustments 📊**
- **Adaptive SuperTrend Calculation:** The SuperTrend is a popular trend-following indicator that adjusts dynamically based on market conditions. It uses the Average True Range (ATR) to calculate upper and lower bands, which shift according to market volatility. This script takes it further by combining it with the RSI and Volume filtering to provide more accurate signals.
- **Direction Sensitivity:** The SuperTrend here is not static. It adjusts based on the direction of the previous SuperTrend value, ensuring that the indicator remains relevant even in choppy markets.
2. **RSI Integration for Overbought/Oversold Conditions 💹**
- **RSI Calculation:** The Relative Strength Index (RSI) is incorporated to identify overbought and oversold conditions, adding an extra layer of precision. This helps in filtering out false signals and ensuring that trades are taken only in optimal conditions.
- **Customizable RSI Settings:** The RSI settings are fully customizable, allowing traders to adjust the RSI length and the overbought/oversold levels according to their trading style and market.
3. **Volume Filtering for Enhanced Signal Confirmation 📉**
- **Volume Multiplier:** This unique feature integrates volume analysis, ensuring that signals are only generated when there is sufficient market participation. The Volume Multiplier can be adjusted to filter out weak signals that occur during low-volume periods.
- **Optional Volume Filtering:** Traders have the flexibility to turn the volume filter on or off, depending on their preference or market conditions. This makes the indicator versatile, allowing it to be used across different asset classes and market conditions.
4. **Squeeze Momentum Indicator (SMI) for Market Pressure Analysis 💥**
- **Squeeze Detection:** The Squeeze Momentum Indicator detects periods of market compression and expansion. This script goes beyond the traditional Bollinger Bands and Keltner Channels by incorporating true range calculations, offering a more nuanced view of market momentum.
- **Customizable Squeeze Settings:** The lengths and multipliers for both Bollinger Bands and Keltner Channels are customizable, giving traders the flexibility to fine-tune the indicator based on their specific needs.
5. **Visual and Aesthetic Customization 🎨**
- **Color-Coding for Clarity:** The indicator is color-coded to make it easy to interpret signals. Bullish trends are marked with a vibrant green color, while bearish trends are highlighted in red. Neutral or unconfirmed signals are displayed in softer tones to reduce noise.
- **Histogram Visualization:** The primary trend direction and strength are displayed as a histogram, making it easy to visualize the market's momentum at a glance. The height and color of the bars provide immediate feedback on the strength and direction of the trend.
6. **Alerts for Real-Time Trading 🚨**
- **Custom Alerts:** The script is equipped with custom alerts that notify traders when a buy or sell signal is generated. These alerts can be configured to send notifications through various channels, including email, SMS, or directly to the trading platform.
- **Immediate Reaction:** The alerts are triggered based on the confluence of SuperTrend, RSI, and Volume signals, ensuring that traders are notified only when the most robust trading opportunities arise.
7. **Comprehensive Input Customization ⚙️**
- **SuperTrend Settings:** Adjust the ATR length and factor to control the sensitivity of the SuperTrend. This allows you to adapt the indicator to different market conditions, whether you're trading a volatile cryptocurrency or a more stable stock.
- **RSI Settings:** Customize the RSI length and thresholds for overbought and oversold conditions, enabling you to tailor the indicator to your specific trading strategy.
- **Volume Settings:** The Volume Multiplier and the option to toggle the volume filter provide an additional layer of customization, allowing you to fine-tune the indicator based on market liquidity and participation.
- **Squeeze Momentum Settings:** The lengths and multipliers for Bollinger Bands and Keltner Channels can be adjusted to detect different levels of market compression, providing flexibility for both short-term and long-term traders.
### How It Works: A Deep Dive Into the Mechanics 🛠️
1. **SuperTrend Calculation:**
- The SuperTrend is calculated using the ATR, which measures market volatility. The indicator creates upper and lower bands around the price, adjusting these bands based on the current level of market volatility. The direction of the trend is determined by the position of the price relative to these bands.
- The script enhances the standard SuperTrend by ensuring that the bands do not flip-flop too quickly, reducing the chances of false signals in a choppy market. The direction is confirmed by checking the position of the close relative to the previous band, making the trend detection more reliable.
2. **RSI Integration:**
- The RSI is calculated over a customizable length and compared to user-defined overbought and oversold levels. When the RSI crosses below the oversold level, and the SuperTrend indicates a bullish trend, a buy signal is generated. Conversely, when the RSI crosses above the overbought level, and the SuperTrend indicates a bearish trend, a sell signal is triggered.
- The combination of RSI with SuperTrend ensures that trades are only taken when there is a strong confluence of signals, reducing the chances of entering trades during weak or indecisive market phases.
3. **Volume Filtering:**
- The script calculates the average volume over a 20-period simple moving average. The volume filter ensures that buy and sell signals are only valid when the current volume exceeds a multiple of this average, which can be adjusted by the user. This feature helps filter out weak signals that might occur during low-volume periods, such as just before a major news event or during after-hours trading.
- The volume filter is particularly useful in markets where volume spikes are common, as it ensures that signals are only generated when there is significant market interest in the direction of the trend.
4. **Squeeze Momentum:**
- The Squeeze Momentum Indicator (SMI) adds a layer of market pressure analysis. The script calculates Bollinger Bands and Keltner Channels, detecting when the market is in a "squeeze" — a period of low volatility that typically precedes a significant price move.
- When the Bollinger Bands are inside the Keltner Channels, the market is in a squeeze (compression phase). This is often a precursor to a breakout or breakdown. The script colors the histogram bars black during this phase, indicating a potential for a strong move. Once the squeeze is released, the bars are colored according to the direction of the SuperTrend, signaling a potential entry point.
5. **Integration and Signal Generation:**
- The script brings together the SuperTrend, RSI, Volume, and Squeeze Momentum to generate highly accurate buy and sell signals. A buy signal is triggered when the SuperTrend is bullish, the RSI indicates oversold conditions, and the volume filter confirms strong market participation. Similarly, a sell signal is generated when the SuperTrend is bearish, the RSI indicates overbought conditions, and the volume filter is met.
- The combination of these elements ensures that the signals are robust, reducing the likelihood of entering trades during weak or indecisive market conditions.
### Practical Applications: How to Use the MultiTrend Squeeze System 📅
1. **Day Trading:**
- For day traders, this indicator provides quick and reliable signals that can be used to enter and exit trades multiple times within a day. The volume filter ensures that you are trading during the most liquid times of the day, increasing the chances of successful trades. The Squeeze Momentum aspect helps you catch breakouts or breakdowns, which are common in intraday trading.
2. **Swing Trading:**
- Swing traders can use the MultiTrend Squeeze System to identify longer-term trends. By adjusting the ATR length and factor, you can make the SuperTrend more sensitive to catch longer-term moves. The RSI and Squeeze Momentum aspects help you time your entries and exits, ensuring that you get in early on a trend and exit before it reverses.
3. **Scalping:**
- For scalpers, the quick signals provided by this system, especially in combination with the volume filter, make it easier to take small profits repeatedly. The histogram bars give you a clear visual cue of the market's momentum, making it easier to scalp effectively.
4. **Position Trading:**
- Even position traders can benefit from this indicator by using it to confirm long-term trends. By adjusting the settings to less sensitive parameters, you can ensure that you are only entering trades when a strong trend is confirmed. The Squeeze Momentum indicator will help you stay in the trade during periods of consolidation, waiting for the next big move.
### Conclusion: Why the MultiTrend Squeeze System is a Game-Changer 🚀
The MultiTrend Squeeze System is not just another trading indicator; it’s a comprehensive trading strategy encapsulated within a single script. By combining the power
of SuperTrend, RSI, Volume Filtering, and Squeeze Momentum, this indicator provides a robust and versatile tool that can be adapted to various trading styles and market conditions.
**Why is it Unique?**
- **Multi-Dimensional Analysis:** Unlike many other indicators that rely on a single data point or calculation, this script incorporates multiple layers of analysis, ensuring that signals are based on a confluence of factors, which increases their reliability.
- **Customizability:** The vast range of input settings allows traders to tailor the indicator to their specific needs, whether they are trading forex, stocks, cryptocurrencies, or commodities.
- **Visual Clarity:** The color-coded bars, labels, and signals make it easy to interpret the market conditions at a glance, reducing the time needed to make trading decisions.
Whether you are a novice trader or an experienced market participant, the MultiTrend Squeeze System offers a powerful toolset to enhance your trading strategy, reduce risk, and maximize your potential returns. With its combination of trend analysis, momentum detection, and volume filtering, this indicator is designed to help you trade with confidence and precision in any market condition.
Swing Trend AnalysisIntroducing the Swing Trend Analyzer: A Powerful Tool for Swing and Positional Trading
The Swing Trend Analyzer is a cutting-edge indicator designed to enhance your swing and positional trading by providing precise entry points based on volatility contraction patterns and other key technical signals. This versatile tool is packed with features that cater to traders of all timeframes, offering flexibility, clarity, and actionable insights.
Key Features:
1. Adaptive Moving Averages:
The Swing Trend Analyzer offers multiple moving averages tailored to the timeframe you are trading on. On the daily chart, you can select up to four different moving average lengths, while all other timeframes provide three moving averages. This flexibility allows you to fine-tune your analysis according to your trading strategy. Disabling a moving average is as simple as setting its value to zero, making it easy to customize the indicator to your needs.
2. Dynamic Moving Average Colors Based on Relative Strength:
This feature allows you to compare the performance of the current ticker against a major index or any symbol of your choice. The moving average will change color based on whether the ticker is outperforming or underperforming the selected index over the chosen period. For example, on a daily chart, if the 21-day moving average turns blue, it indicates that the ticker has outperformed the selected index over the last 21 days. This visual cue helps you quickly identify relative strength, a key factor in successful swing trading.
3. Visual Identification of Price Contractions:
The Swing Trend Analyzer changes the color of price bars to white (on a dark theme) or black (on a light theme) when a contraction in price is detected. Price contractions are highlighted when either of the following conditions is met: a) the current bar is an inside bar, or b) the price range of the current bar is less than the 14-period Average Daily Range (ADR). This feature makes it easier to spot price contractions across all timeframes, which is crucial for timing entries in swing trading.
4. Overhead Supply Detection with Automated Resistance Lines:
The indicator intelligently detects the presence of overhead supply and draws a single resistance line to avoid clutter on the chart. As price breaches the resistance line, the old line is automatically deleted, and a new resistance line is drawn at the appropriate level. This helps you focus on the most relevant resistance levels, reducing noise and improving decision-making.
5. Buyable Gap Up Marker: The indicator highlights bars in blue when a candle opens with a gap that remains unfilled. These bars are potential Buyable Gap Up (BGU) candidates, signaling opportunities for long-side entries.
6. Comprehensive Swing Trading Information Table:
The indicator includes a detailed table that provides essential data for swing trading:
a. Sector and Industry Information: Understand the sector and industry of the ticker to identify stocks within strong sectors.
b. Key Moving Averages Distances (10MA, 21MA, 50MA, 200MA): Quickly assess how far the current price is from key moving averages. The color coding indicates whether the price is near or far from these averages, offering vital visual cues.
c. Price Range Analysis: Compare the current bar's price range with the previous bar's range to spot contraction patterns.
d. ADR (20, 10, 5): Displays the Average Daily Range over the last 20, 10, and 5 periods, crucial for identifying contraction patterns. On the weekly chart, the ADR continues to provide daily chart information.
e. 52-Week High/Low Data: Shows how close the stock is to its 52-week high or low, with color coding to highlight proximity, aiding in the identification of potential breakout or breakdown candidates.
f. 3-Month Price Gain: See the price gain over the last three months, which helps identify stocks with recent momentum.
7. Pocket Pivot Detection with Visual Markers:
Pocket pivots are a powerful bullish signal, especially relevant for swing trading. Pocket pivots are crucial for swing trading and are effective across all timeframes. The indicator marks pocket pivots with circular markers below the price bar:
a. 10-Day Pocket Pivot: Identified when the volume exceeds the maximum selling volume of the last 10 days. These are marked with a blue circle.
b. 5-Day Pocket Pivot: Identified when the volume exceeds the maximum selling volume of the last 5 days. These are marked with a green circle.
The Swing Trend Analyzer is designed to provide traders with the tools they need to succeed in swing and positional trading. Whether you're looking for precise entry points, analyzing relative strength, or identifying key price contractions, this indicator has you covered. Experience the power of advanced technical analysis with the Swing Trend Analyzer and take your trading to the next level.
FaikValThe "FaikVal" indicator is a powerful tool designed to help traders analyze relative price movements between a base asset and up to three comparison assets. This indicator uses exponential moving averages (EMA) and normalization techniques to identify potential overbought and oversold situations.
Functions and Applications:
Comparison of Price Ratios: The indicator calculates the ratio of the closing price of the base asset to the closing prices of three user-defined comparison assets. This allows for direct comparative analysis and helps identify relative strengths and weaknesses.
EMA Calculations: Two EMAs are calculated for each price ratio (with configurable periods). The difference between these two EMAs serves as the basis for further calculations.
Normalization: The calculated values are normalized over a defined period, helping to smooth out extreme values and facilitate analysis. This normalization transforms the values onto a scale from -100 to 100.
Optional Smoothing: Optional smoothing of the normalized values can be enabled to further reduce short-term fluctuations and generate clearer signals.
Visual Signals: The indicator plots three lines (one for each comparison ratio), representing the normalized values. Additionally, horizontal lines are displayed at +60, -60, and 0 to mark overbought and oversold zones as well as neutral areas.
Customizability: Users can adjust the periods of the EMAs, the length of the normalization period, and the smoothing period. They can also specify which of the three indicators should be displayed.
Applications:
Relative Strength Analysis: Identify whether the base asset is performing stronger or weaker compared to other markets or instruments.
Trend Confirmation: Confirm existing trends by analyzing the movements of the base asset relative to the comparison assets.
Overbought and Oversold Signals: Use the displayed values and horizontal lines to identify potential market turning points and determine entry or exit points.
!!! It works best on the weekly and daily chart for swing trading. It is a set up tool, to determin weather you should go long or short and not a market timing tool. For timing you could use concepts like trend and supply and demand!!!
The "FaikVal" indicator offers versatile and detailed analysis, making it particularly useful for traders seeking deeper insights into relative price strength and weakness.
RSI, STOCHASTIC RSI AND MFI COMBOCombining the Relative Strength Index (RSI), Stochastic RSI (StochRSI), and Money Flow Index (MFI) can provide traders with a comprehensive approach to analyze market momentum, overbought/oversold conditions, and money flow. Each indicator offers unique insights, and their combination can help confirm trading signals and filter out false signals. Let's delve into each indicator and then discuss how they can be used together:
Relative Strength Index (RSI) 14: DA BLUE LINE
The RSI is a momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100 and is typically used to identify overbought (>70) and oversold (<30) conditions. A reading above 70 may indicate that an asset is overbought and could be due for a pullback, while a reading below 30 may suggest that an asset is oversold and could be due for a bounce.
Stochastic RSI (StochRSI) 14: DA RED LINE
The StochRSI is an oscillator that combines the features of both the Stochastic Oscillator and RSI. It measures the relative position of the RSI within its range over a specific period (e.g., 14 periods). Like the RSI, the StochRSI oscillates between 0 and 100 and is used to identify overbought and oversold conditions. Typically:
A StochRSI above 0.8 may suggest overbought conditions.
A StochRSI below 0.2 may indicate oversold conditions.
Money Flow Index (MFI) 14: DA PURPLE LINE
The MFI is a momentum oscillator that measures the inflow and outflow of money into an asset over a specific period (e.g., 14 periods). It oscillates between 0 and 100 and is used to identify overbought and oversold conditions based on both price and volume. Generally:
An MFI above 80 may indicate overbought conditions.
An MFI below 20 may suggest oversold conditions.
Combining RSI, StochRSI, and MFI:
When combining RSI, StochRSI, and MFI, traders can use the following approach to analyze the market:
Identify Overbought/Oversold Conditions:
Look for confluence between RSI, StochRSI, and MFI readings to identify overbought and oversold conditions.
For example, if RSI > 70, StochRSI > 0.8, and MFI > 80, it may suggest a strong overbought condition, potentially indicating a reversal or pullback.
Confirm Trend Strength:
Use the RSI, StochRSI, and MFI to confirm the strength of a trend.
A rising trend with RSI, StochRSI, and MFI above 50 may suggest strong bullish momentum, while a falling trend with readings below 50 may indicate strong bearish momentum.
Divergence Analysis:
Look for divergences between price and RSI, StochRSI, or MFI to identify potential trend reversals.
For example, if the price makes a higher high, but RSI, StochRSI, or MFI makes a lower high (bearish divergence), it may suggest weakening bullish momentum and potential downside.
Combining RSI, StochRSI, and MFI can offer traders a more holistic view of market momentum, overbought/oversold conditions, and money flow. Backtest it let me know your success.
Gorb AlgoIntroduction:
Gorb Algo is an all-in-one trading indicator made up of classic technical analysis components such as moving averages, relative strength index, stochastic oscillator, and pivot points blended together to create a synergistic algorithm. Focused on providing useful signals & trading tool overlays to meet all trader's technical analysis needs. Each feature included can be changed to meet each traders strategy or market condition.
Overview:
The Gorb Market Trend isn't a simple trend-following tool; it's a sophisticated blend of traditional and innovative methods, providing comprehensive market analysis.
Its unique combination of EMA analysis, volume weighting, RSI, and stochastic indicators, along with proprietary algorithms, providing nuanced views in trend detection and trading confluences.
The indicator is designed for traders at all levels, offering a balance of depth for experienced traders and simplicity for beginners.
Centerpieces: Gorb Market Trend & Volume Strength
These use a color-coded system to indicate market direction/strength. The color: white is used to signal upward/bullish trend, while the color: purple is used to signal downward/bearish trend. It is designed for ease of use, simplifying complex market data into an easy visually understandable format.
How the Gorb Market Trend Works:
Moving averages are used to find convergence or divergence on multiple EMA's to help determine the overall market direction. Relative Strength Index is used to assess the speed and change of price movements to add another layer to the Market Trend lines identification of the markets analysis. It then plots a line using just two colors to provide traders with a visual representation of the trend. This can help traders quickly grasp the current market trend with simple color cues.
How the Volume Strength Works:
A stochastic oscillator is used to measure the current price level relative to its price over a specific range period to capture sentiment and potential reversals for the Trend Strength feature. And the final part is the use of VWAP and volume analysis to ensure that identified trends are not only based on price movements but are also supported by trading volume, adding a layer of reliability to the trend signals. These are then plotted at the bottom of the chart following the same color scheme as Gorb Market Trend. Only difference is, when volume strength begins to decline, the color will be more transparent, and when it is strong, the color will be bright.
Custom Algorithmic Elements:
The Gorb Market Trend isn't just a combination of standard indicators. It includes proprietary algorithmic elements tailored to enhance signal accuracy and timing. These unique components are what set the Gorb Market Trend apart from conventional trend-detection methods.
We recommend exploring every feature to pick & choose what best suits your needs and style of trading, and use that to combine with the Market trend line.
Features:
All skill-level friendly presets, easy to enable features with one-click
Trading Signals: Plotted signals to help traders identify changes in trend on the Gorb Market Trend Line (not to be followed blindly)
Match Volume Color: allows the user to enable signals to appear only if they match the trend strength's color
Enable MA Filter: allows the user to use 2 EMA's to create a custom trend filter in order to limit contrarian signals with the current trend
Chop Filter: allows the user to have a specific candle range of their choice to limit signals during sideways price movement
4 EMA's: allows the user to plot up to 4 EMA's on the chart and change to the users specific trading strategy with the Market Trend line
VWAP: allows users to plot VWAP on their chart to visually see where price is relatively
EMA Clouds: allows users to fill the gap between EMA's plotted on the chart to help them visualize zones for entries or stop-losses
Pivot Points: allows users to have pivots on their chart to use in tandem with market trend line to find areas of support and resistance to help find confluence in their trading
All colors are changeable for the user to customize the scheme to their liking or style
Basic Signals, Market Trend & Volume Strength Demonstration
In the image below, we can see a basic example of how these 3 core features function.
As explained above, the trade ideas are only generated if the user enables them. They will plot as small triangles in real time and are directly correlated to the market trend line coloring in order to quickly see the change in market conditions.
The volume strength on the bottom helps identify the strength and momentum of the market condition. This can also be used to identify possible fake-outs or small pullbacks before price continues on. The brighter the volume strength the stronger it is, when it is dimmer, that means volume is decreasing in that direction. This can help traders identify signals they may not want to trust as much.
Trading Tool Overlays with Signals
In the image below, we have enabled the EMA's and VWAP overlays from the settings. By using these tools, users can add more confluence to create their trading strategies
The EMA's are not only used for the market trends, trend filter. But also used as an additional confluence for general trend following purposes alongside the trade idea signals. These can be extremely useful for traders who like to have different length moving averages depending on their timeframe for analyzing the market.
In this next image, we can see that price dips down and then bounces up. With EMA clouds enabled, the user can now have visual zones to look for trade entries in.
When paired with the market trend line and trade idea signals, this adds a whole other level of easy visual trading confluence for traders. You can see that market trend changes color and a trade signal is plotted when price enters these zones. This can be helpful to a trader looking to find confluence in their entries.
The image below shows specific pivot levels being plotted when the user enabled pivots in the settings of the indicator.
The pivot levels proved an excellent area of support/resistance for traders that are generated fresh every day. These are particularly useful for areas that line up with previous tools above and trade signals. This overlay gives traders a clear level that can be used to confirm entries and create targets to exit trades at. These levels when combined with the other tools in this indicator provide traders an all-in-one visual confluences. Some traders may just use this overlay to have an idea on the range for the trading session.
Filters:
There are 3 different trade signal filters integrated into this indicator
1. Match Volume Color: When enabled, signals can only be valid and plotted if the volume strength color matches the market trend line signal. Otherwise the signal will not appear, this limits possible fake-outs without having volume agree.
2. MA Filter: When enabled, this removes an contrarian signals to the current market trend per the settings of the filter. The EMA settings for this filter can be changed by the user for them to customize this to their trading strategies. There are two settings, short ema and long ema to define the trend.
3. Chop Filter: When enabled, this disables signals that would normally appear in sideways price action. This setting is also customizable by the user; there are two settings: candle period and threshold. The candle period is how many candles back does this filter want to look to define its range. The threshold, is the amount of price deviation is allowed from this range in order to disable a signal.
Conclusion:
We believe in providing an all inclusive trading tool to help simplify trading for all traders. The goal is to provide a user-friendly, efficient tool that provides insights into market trends. For it to stand out for its simplicity and effectiveness, as a support tool for decision making.
How to get access:
You can see the Author's instructions to get access to this indicator
RISK DISCLAIMER
All content, tools, scripts & education provided by Monstanzer or Gorb Algo LLC are for informational & educational purposes only. Trading is risk and most lose their money, past performance does not guarantee future results.
TradeMaster OscillatorTrading effectively requires a range of techniques, experience, and expertise. From technical analysis to market fundamentals, traders must navigate multiple factors, including market sentiment and economic conditions. However, traders often find themselves overwhelmed by market noise, making it challenging to filter out distractions and make informed decisions. To address this, we present a powerful indicator package designed to assist traders on their journey to success.
The TradeMaster indicator package encompasses a variety of trading strategies, including the SMC (Supply, Demand, and Price Action) approach, along with many other techniques. By leveraging concepts such as price action trading, support and resistance analysis, supply and demand dynamics, these indicators empower traders to analyze entry and exit positions with precision. Unlike other forms of technical analysis that produce values or plots based on historical price data, Price Action brings you the facts straight from the source - the current price movements.
The indicator package consists of three powerful indicators that can be used individually or together to maximize trading effectiveness.
⭐ About the Oscillator Indicator
The Oscillator is an innovative and robust tool that encapsulates the principles of multiple technical analysis methodologies to enrich your trading strategy. By leveraging the combination of our six unique indicators, it can provide a comprehensive and multi-dimensional view of market dynamics.
👉 Usage - the general approach:
Utilize the Oscillator Indicator as a confirmational tool. The Oscillator acts as a tool to validate ideas and strategies. By analyzing the oscillator's readings, you gain additional insights into market momentum, overbought or oversold conditions, and potential trend reversals. This confirmation step helps you avoid false signals and make more informed trading choices.
👉 We are focusing on the default setting of the TradeMaster Oscillator, which incorporates the Global RSI* as main oscillator and Local RSI* as confirmational oscillator. This base configuration can be custom-tailored to your preference, leveraging the additional combination of our six unique indicators.
Understand the difference between Global and Local RSI: The Global RSI represents broad relative strength, while the Local RSI describes the relative strength within wider movements. It's like having both a macro and micro view of relative strength.
Identify extreme values in Local RSI: Look for extremes in the Local RSI (overbought/oversold in Stochastic RSI). These often indicate a turning point in the RSI, which naturally reflects in the price. The Local RSI extremes are shown as dots outside the Global RSI bands in a "heatmap" style.
Smooth your RSI: You have the option to smooth your RSI with your preferred smoothing method (SMA , SMMA, EMA, DEMA, TEMA, LSMA, HMA, VWMA, WMA) and length.
Please bear in mind that high smoothing values can make the standard RSI extremes (>70 or <30) suboptimal or even useless. To address this potential problem, Adaptive levels were introduced.
Adaptive key levels for more relevant extremes: enabling Adaptive levels recalibrates extremes based on the historical RSI turning points (typical median turning points), providing much more relevant reference points for overbought/oversold states in both Global and Local RSI. This function can be used without smoothing but rarely provides significant difference unless you experiment with the length of RSI calculation.
Incorporate multiple indicators: besides Global and Local RSI, you can display six different proprietary indicators in the main oscillator theme. By choosing from these, you can apply the confirming condition as well. These include Sentiment (Fear and greed), Momentum, Trend Strength, Volume, and Volatility. These indicators use our TRMA** method to provide a comprehensive overview of market dynamics.
Choose your Global RSI display style: the Global RSI can be represented in candle, bar, line or ribbon form. Candles and bars can be useful for detecting rejections of relative strength (wicks), similar to OHLC data. Sometimes there are "hidden rejections" visible in relative strength but not in OHLC data, which naturally presents an advantage.
Customize the colors: All colors can be adjusted from the input menu to suit your preferences. This personalization allows you to make the Oscillator clear and intuitive for your individual trading style as possible.
Monitor Real-time Indicator values: In the bottom right corner, you can view real-time color-coded indicator values. This feature gives you the ability to quickly assess the market's current conditions without needing to navigate away from the chart.
Use multiple indicators in conjunction: while each indicator within the Oscillator provides valuable insights, their true power lies in their combination. Identify alignment among indicators to validate potential trades. For instance, when a bullish sentiment indication aligns with a low volatility reading, it may suggest a favorable buying opportunity.
Consider the market context: while the Oscillator provides a robust set of tools, always consider other aspects of the market environment. Use the oscillator in conjunction with other technical, fundamental, or sentiment analysis methods to develop a comprehensive trading strategy.
🛑 Remember, the oscillator should be used as a confirmational tool in your overall trading strategy. Make reasonable use of all its features, and always keep risk management principles in mind.
* By default, these are fine-tuned RSI and Stochastic RSI indicators.
** TRMA (Trend Rainbow Moving Averages) is a complex but customizable moving average matrix calculation that is designed to accurately measure market trend direction, strength and shifting.
⭐ Conclusion
We hold the view that the true path to success is the synergy between the trader and the tool, contrary to the common belief that the tool itself is the sole determinant of profitability. The actual scenario is more nuanced than such an oversimplification. Our aim is to offer useful features that meet the needs of the 21st century and that we actually use.
🛑 Risk Notice:
Everything provided by trademasterindicator – from scripts, tools, and articles to educational materials – is intended solely for educational and informational purposes. Past performance does not assure future returns.
GKD-C Kase Peak Oscillator [Loxx]Giga Kaleidoscope GKD-C Kase Peak Oscillator is a Metamorphosis module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ GKD-C Kase Peak Oscillator
The Kase Peak Oscillator is a technical analysis tool developed by Cynthia Kase, a renowned market analyst and trader. It is used by traders and investors to identify trading signals and potential trend reversals in financial markets.
The Kase Peak Oscillator utilizes a unique approach to measuring momentum and trend strength. It is calculated by measuring the difference between the highest high and lowest low prices over a set period of time and then smoothing these values using a moving average. This smoothing reduces the impact of market noise and helps to identify clearer trends.
The indicator is similar to other momentum oscillators, but its calculation is distinct in several ways. One significant feature is that the Kase Peak Oscillator generates data points that are not bounded, meaning that the indicator can take on positive and negative values regardless of market direction. This enables traders to identify potential buy and sell signals across different market conditions.
Traders use the Kase Peak Oscillator primarily to identify potential trading opportunities and strategy decisions. When the oscillator crosses above a certain level, traders view it as a bullish signal, indicating a potential buying opportunity. Conversely, when the oscillator crosses below a specific level, traders see it as a bearish signal, indicating a potential selling opportunity.
█ Giga Kaleidoscope Modularized Trading System
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
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 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)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
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: Full GKD Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Kase Peak Oscillator as shown in the chart above
Confirmation 2: uf2018
Continuation: Vortex
Exit: Rex Oscillator
Metamorphosis: Fisher Transform, Universal Oscillator, Aroon, Vortex .. combined
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Basline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
█ Connecting to Backtests
All GKD indicators are chained indicators meaning you export the value of the indicators to specialized backtest to creat your GKD trading system. Each indicator contains a proprietary signal generation algo that will only work with GKD backtests. You can find these backtests using the links below.
GKD-BT Giga Confirmation Stack Backtest:
GKD-BT Giga Stacks Backtest:
GKD-BT Full Giga Kaleidoscope Backtest:
GKD-BT Solo Confirmation Super Complex Backtest:
GKD-BT Solo Confirmation Complex Backtest:
GKD-BT Solo Confirmation Simple Backtest:
Market Breadth Ratio+ [Pt]This is a + version of my original Market Breadth Ratio Indicator
DESCRIPTION
The Market Breadth Ratio+ indicator is a tool that can help traders gain a more comprehensive understanding of market breadth by providing a ratio between Up volume (UVOL) and Down volume (DVOL).
While the VOLD indicator provides a straightforward measure of the difference between UVOL and DVOL, it doesn't account for the rate of change. The Market Breadth Ratio+ indicator, on the other hand, takes the rate of change into account, providing a plot line that is easier to interpret and understand.
The Up Volume vs Down Volume Ratios measure the strength of buying versus selling pressure in the market. A ratio greater than 1 indicates that there is more buying pressure, while a ratio less than -1 indicates more selling pressure. The ratio is calculated by dividing the total volume of stocks that closed up on the day by the total volume of stocks that closed down.
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This script includes the following premium unique features.
1) Custom Moving Average line for Breadth Ratio line. There are a few MA type to choose from: SMA, EMA, RMA, WMA, VWMA, HMA
- This feature provide a smoother plot for better interpretation of the market trend
- MA crossovers can also be used as trend reversal signals
2) Breadth Strength Index (BSI)
- This graph shows the relative strength of the Breadth Ratio. This is a momentum based oscillator that measure the rate of change of the Breadth Ratio. It shows the strength and weakness in the Breadth Ratio plot.
- A bar close to 1 means the market is very strong in the Bullish direction, conversely, a bar close to -1 means the market is very weak, but very strong in the Bearish direction
- Above 0 shows Bullish strength
- Below 0 shows Bearish strength
3) Two display modes for Breadth Strength Index
- Histogram
- Line
- These can be combined to show different markets together, such as NYSE and NASDAQ
4) Custom Moving Average can be applied to the BSI
- This will provide smoother graph for easier interpretation
5) Aggregated Market Strength
- This feature combines the BSI of multiple markets, such as NYSE and NASDAQ, to provide a more comprehensive view of the overall US market. Often time, one of these indices will have a stronger 'pull' on the entire market. By observing the dominant color (of your choosing), you can see which index is pulling the market. And by trading the market that has the bigger pull, traders can leverage on the possible higher volatility for greater trade opportunities.
6) Custom Moving Average can be applied to the Aggregated Market Strength
- This will provide smoother graph for easier interpretation
7) Show alternating trend colors on Aggregated Market Strength
- This provides an intuitive view of the market strength that's based on market breadth ratio
GKD-V Cercos Chaos vs Movement [Loxx]Giga Kaleidoscope GKD-V Cercos Chaos vs Movement is a Volatility/Volume module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ GKD-V Cercos Chaos vs Movement
The following aims to provide a detailed explanation of Cercos Chaos vs Movement that helps traders determine market volatility by comparing two different measures: Buffer Move and Buffer Chaos. This indicator is non-directional and should be paired with a directional indicator to provide trading signals.
The first step in the process is defining a custom function that implements a variant of the sigmoid function. This function has a parameter that allows the output to be limited to the range of if desired. The sigmoid function will later be used to normalize the Buffer Chaos value.
Next, several input parameters are introduced, which can be adjusted by the user. These parameters include the period, chaos strength, chaos width, and movement strength. These values are essential to customizing the behavior of the indicator and adapting it to different market conditions and trading styles.
The wicks of the candles in the given time series are then calculated by subtracting the absolute difference between the open and close prices from the difference between the high and low prices. This step is crucial in determining the level of volatility in the market.
Subsequently, the highest high and lowest low over the defined period are identified by examining the maximum and minimum values of the open and close prices. This information is essential for calculating the total movement in the market over the period being analyzed.
Once the highest high and lowest low are found, the Buffer Move and Buffer Chaos values are calculated. The Buffer Move is the sum of the differences between the high and low prices for each candle in the period. This measure helps to identify the overall price movement in the market during the period.
On the other hand, the Buffer Chaos represents the sum of the wicks' lengths for each candle in the period. This measure is used to identify the level of uncertainty and disorder in the market during the period.
In the next step, the total movement in the market is calculated by subtracting the lowest low from the highest high. This value is then used to normalize the Buffer Move and Buffer Chaos values, ensuring they are on a comparable scale.
A comparison is made between the normalized Buffer Move and Buffer Chaos values. If the Buffer Move value is greater than the Buffer Chaos value, it indicates that there is enough volatility in the market to trade long or short. In such a case, the indicator suggests that the market conditions are favorable for trading. However, as this indicator is non-directional, a directional indicator should be used in conjunction with it to provide trading signals.
In conclusion, this custom trading indicator provides valuable insights into market volatility by comparing the Buffer Move and Buffer Chaos values. By offering a non-directional perspective, traders can use this indicator to gauge the potential for profitable trades and make informed decisions by pairing it with a directional indicator.
Additional Features
This indicator allows you to select from 33 source types. They are as follows:
Close
Open
High
Low
Median
Typical
Weighted
Average
Average Median Body
Trend Biased
Trend Biased (Extreme)
HA Close
HA Open
HA High
HA Low
HA Median
HA Typical
HA Weighted
HA Average
HA Average Median Body
HA Trend Biased
HA Trend Biased (Extreme)
HAB Close
HAB Open
HAB High
HAB Low
HAB Median
HAB Typical
HAB Weighted
HAB Average
HAB Average Median Body
HAB Trend Biased
HAB Trend Biased (Extreme)
What are Heiken Ashi "better" candles?
Heiken Ashi "better" candles are a modified version of the standard Heiken Ashi candles, which are a popular charting technique used in technical analysis. Heiken Ashi candles help traders identify trends and potential reversal points by smoothing out price data and reducing market noise. The "better formula" was proposed by Sebastian Schmidt in an article published by BNP Paribas in Warrants & Zertifikate, a German magazine, in August 2004. The aim of this formula is to further improve the smoothing of the Heiken Ashi chart and enhance its effectiveness in identifying trends and reversals.
Standard Heiken Ashi candles are calculated using the following formulas:
Heiken Ashi Close = (Open + High + Low + Close) / 4
Heiken Ashi Open = (Previous Heiken Ashi Open + Previous Heiken Ashi Close) / 2
Heiken Ashi High = Max (High, Heiken Ashi Open, Heiken Ashi Close)
Heiken Ashi Low = Min (Low, Heiken Ashi Open, Heiken Ashi Close)
The "better formula" modifies the standard Heiken Ashi calculation by incorporating additional smoothing, which can help reduce noise and make it easier to identify trends and reversals. The modified formulas for Heiken Ashi "better" candles are as follows:
Better Heiken Ashi Close = (Open + High + Low + Close) / 4
Better Heiken Ashi Open = (Previous Better Heiken Ashi Open + Previous Better Heiken Ashi Close) / 2
Better Heiken Ashi High = Max (High, Better Heiken Ashi Open, Better Heiken Ashi Close)
Better Heiken Ashi Low = Min (Low, Better Heiken Ashi Open, Better Heiken Ashi Close)
Smoothing Factor = 2 / (N + 1), where N is the chosen period for smoothing
Smoothed Better Heiken Ashi Open = (Better Heiken Ashi Open * Smoothing Factor) + (Previous Smoothed Better Heiken Ashi Open * (1 - Smoothing Factor))
Smoothed Better Heiken Ashi Close = (Better Heiken Ashi Close * Smoothing Factor) + (Previous Smoothed Better Heiken Ashi Close * (1 - Smoothing Factor))
The smoothed Better Heiken Ashi Open and Close values are then used to calculate the smoothed Better Heiken Ashi High and Low values, resulting in "better" candles that provide a clearer representation of the market trend and potential reversal points.
It's important to note that, like any other technical analysis tool, Heiken Ashi "better" candles are not foolproof and should be used in conjunction with other indicators and analysis techniques to make well-informed trading decisions.
Heiken Ashi "better" candles, as mentioned previously, provide a clearer representation of market trends and potential reversal points by reducing noise and smoothing out price data. When using these candles in conjunction with other technical analysis tools and indicators, traders can gain valuable insights into market behavior and make more informed decisions.
To effectively use Heiken Ashi "better" candles in your trading strategy, consider the following tips:
Trend Identification: Heiken Ashi "better" candles can help you identify the prevailing trend in the market. When the majority of the candles are green (or another color, depending on your chart settings) and there are no or few lower wicks, it may indicate a strong uptrend. Conversely, when the majority of the candles are red (or another color) and there are no or few upper wicks, it may signal a strong downtrend.
Trend Reversals: Look for potential trend reversals when a change in the color of the candles occurs, especially when accompanied by longer wicks. For example, if a green candle with a long lower wick is followed by a red candle, it could indicate a bearish reversal. Similarly, a red candle with a long upper wick followed by a green candle may suggest a bullish reversal.
Support and Resistance: You can use Heiken Ashi "better" candles to identify potential support and resistance levels. When the candles are consistently moving in one direction and then suddenly change color with longer wicks, it could indicate the presence of a support or resistance level.
Stop-Loss and Take-Profit: Using Heiken Ashi "better" candles can help you manage risk by determining optimal stop-loss and take-profit levels. For instance, you can place your stop-loss below the low of the most recent green candle in an uptrend or above the high of the most recent red candle in a downtrend.
Confirming Signals: Heiken Ashi "better" candles should be used in conjunction with other technical indicators, such as moving averages, oscillators, or chart patterns, to confirm signals and improve the accuracy of your analysis.
In this implementation, you have the choice of AMA, KAMA, or T3 smoothing. These are as follows:
Kaufman Adaptive Moving Average (KAMA)
The Kaufman Adaptive Moving Average (KAMA) is a type of adaptive moving average used in technical analysis to smooth out price fluctuations and identify trends. The KAMA adjusts its smoothing factor based on the market's volatility, making it more responsive in volatile markets and smoother in calm markets. The KAMA is calculated using three different efficiency ratios that determine the appropriate smoothing factor for the current market conditions. These ratios are based on the noise level of the market, the speed at which the market is moving, and the length of the moving average. The KAMA is a popular choice among traders who prefer to use adaptive indicators to identify trends and potential reversals.
Adaptive Moving Average
The Adaptive Moving Average (AMA) is a type of moving average that adjusts its sensitivity to price movements based on market conditions. It uses a ratio between the current price and the highest and lowest prices over a certain lookback period to determine its level of smoothing. The AMA can help reduce lag and increase responsiveness to changes in trend direction, making it useful for traders who want to follow trends while avoiding false signals. The AMA is calculated by multiplying a smoothing constant with the difference between the current price and the previous AMA value, then adding the result to the previous AMA value.
T3
The T3 moving average is a type of technical indicator used in financial analysis to identify trends in price movements. It is similar to the Exponential Moving Average (EMA) and the Double Exponential Moving Average (DEMA), but uses a different smoothing algorithm.
The T3 moving average is calculated using a series of exponential moving averages that are designed to filter out noise and smooth the data. The resulting smoothed data is then weighted with a non-linear function to produce a final output that is more responsive to changes in trend direction.
The T3 moving average can be customized by adjusting the length of the moving average, as well as the weighting function used to smooth the data. It is commonly used in conjunction with other technical indicators as part of a larger trading strategy.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average
Volatility/Volume: Cercos Chaos vs Movement as shown on the chart above
Confirmation 1: Fisher Transform
Confirmation 2: Williams Percent Range
Continuation: Cercos Chaos vs Movement
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
Volatility/Volume Entry
1. GKD-V Volatility/Volume 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-B Baseline 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
1-Candle Rule Volatility/Volume Entry
1. GKD-V Volatility/Volume 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 Volatility/Volume agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-B Baseline 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
2. GKD-C Confirmation 1 agrees
3. GKD-C Confirmation 2 agrees
4. GKD-V Volatility/Volume Agrees
]█ Setting up the GKD
The GKD system involves chaining indicators together. These are the steps to set this up.
Use a GKD-C indicator alone on a chart
1. Inside the GKD-C indicator, change the "Confirmation Type" setting to "Solo Confirmation Simple"
Use a GKD-V indicator alone on a chart
**nothing, it's already useable on the chart without any settings changes
Use a GKD-B indicator alone on a chart
**nothing, it's already useable on the chart without any settings changes
Baseline (Baseline, Backtest)
1. Import the GKD-B Baseline into the GKD-BT Backtest: "Input into Volatility/Volume or Backtest (Baseline testing)"
2. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "Baseline"
Volatility/Volume (Volatility/Volume, Backte st)
1. Inside the GKD-V indicator, change the "Testing Type" setting to "Solo"
2. Inside the GKD-V indicator, change the "Signal Type" setting to "Crossing" (neither traditional nor both can be backtested)
3. Import the GKD-V indicator into the GKD-BT Backtest: "Input into C1 or Backtest"
4. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "Volatility/Volume"
5. Inside the GKD-BT Backtest, a) change the setting "Backtest Type" to "Trading" if using a directional GKD-V indicator; or, b) change the setting "Backtest Type" to "Full" if using a directional or non-directional GKD-V indicator (non-directional GKD-V can only test Longs and Shorts separately)
6. If "Backtest Type" is set to "Full": Inside the GKD-BT Backtest, change the setting "Backtest Side" to "Long" or "Short
7. If "Backtest Type" is set to "Full": To allow the system to open multiple orders at one time so you test all Longs or Shorts, open the GKD-BT Backtest, click the tab "Properties" and then insert a value of something like 10 orders into the "Pyramiding" settings. This will allow 10 orders to be opened at one time which should be enough to catch all possible Longs or Shorts.
Solo Confirmation Simple (Confirmation, Backtest)
1. Inside the GKD-C indicator, change the "Confirmation Type" setting to "Solo Confirmation Simple"
1. Import the GKD-C indicator into the GKD-BT Backtest: "Input into Backtest"
2. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "Solo Confirmation Simple"
Solo Confirmation Complex without Exits (Baseline, Volatility/Volume, Confirmation, Backtest)
1. Inside the GKD-V indicator, change the "Testing Type" setting to "Chained"
2. Import the GKD-B Baseline into the GKD-V indicator: "Input into Volatility/Volume or Backtest (Baseline testing)"
3. Inside the GKD-C indicator, change the "Confirmation Type" setting to "Solo Confirmation Complex"
4. Import the GKD-V indicator into the GKD-C indicator: "Input into C1 or Backtest"
5. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "GKD Full wo/ Exits"
6. Import the GKD-C into the GKD-BT Backtest: "Input into Exit or Backtest"
Solo Confirmation Complex with Exits (Baseline, Volatility/Volume, Confirmation, Exit, Backtest)
1. Inside the GKD-V indicator, change the "Testing Type" setting to "Chained"
2. Import the GKD-B Baseline into the GKD-V indicator: "Input into Volatility/Volume or Backtest (Baseline testing)"
3. Inside the GKD-C indicator, change the "Confirmation Type" setting to "Solo Confirmation Complex"
4. Import the GKD-V indicator into the GKD-C indicator: "Input into C1 or Backtest"
5. Import the GKD-C indicator into the GKD-E indicator: "Input into Exit"
6. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "GKD Full w/ Exits"
7. Import the GKD-E into the GKD-BT Backtest: "Input into Backtest"
Full GKD without Exits (Baseline, Volatility/Volume, Confirmation 1, Confirmation 2, Continuation, Backtest)
1. Inside the GKD-V indicator, change the "Testing Type" setting to "Chained"
2. Import the GKD-B Baseline into the GKD-V indicator: "Input into Volatility/Volume or Backtest (Baseline testing)"
3. Inside the GKD-C 1 indicator, change the "Confirmation Type" setting to "Confirmation 1"
4. Import the GKD-V indicator into the GKD-C 1 indicator: "Input into C1 or Backtest"
5. Inside the GKD-C 2 indicator, change the "Confirmation Type" setting to "Confirmation 2"
6. Import the GKD-C 1 indicator into the GKD-C 2 indicator: "Input into C2"
7. Inside the GKD-C Continuation indicator, change the "Confirmation Type" setting to "Continuation"
8. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "GKD Full wo/ Exits"
9. Import the GKD-E into the GKD-BT Backtest: "Input into Exit or Backtest"
Full GKD with Exits (Baseline, Volatility/Volume, Confirmation 1, Confirmation 2, Continuation, Exit, Backtest)
1. Inside the GKD-V indicator, change the "Testing Type" setting to "Chained"
2. Import the GKD-B Baseline into the GKD-V indicator: "Input into Volatility/Volume or Backtest (Baseline testing)"
3. Inside the GKD-C 1 indicator, change the "Confirmation Type" setting to "Confirmation 1"
4. Import the GKD-V indicator into the GKD-C 1 indicator: "Input into C1 or Backtest"
5. Inside the GKD-C 2 indicator, change the "Confirmation Type" setting to "Confirmation 2"
6. Import the GKD-C 1 indicator into the GKD-C 2 indicator: "Input into C2"
7. Inside the GKD-C Continuation indicator, change the "Confirmation Type" setting to "Continuation"
8. Import the GKD-C Continuation indicator into the GKD-E indicator: "Input into Exit"
9. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "GKD Full w/ Exits"
10. Import the GKD-E into the GKD-BT Backtest: "Input into Backtest"
Baseline + Volatility/Volume (Baseline, Volatility/Volume, Backtest)
1. Inside the GKD-V indicator, change the "Testing Type" setting to "Baseline + Volatility/Volume"
2. Inside the GKD-V indicator, make sure the "Signal Type" setting is set to "Traditional"
3. Import the GKD-B Baseline into the GKD-V indicator: "Input into Volatility/Volume or Backtest (Baseline testing)"
4. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "Baseline + Volatility/Volume"
5. Import the GKD-V into the GKD-BT Backtest: "Input into C1 or Backtest"
6. Inside the GKD-BT Backtest, change the setting "Backtest Type" to "Full". For this backtest, you must test Longs and Shorts separately
7. To allow the system to open multiple orders at one time so you can test all Longs or Shorts, open the GKD-BT Backtest, click the tab "Properties" and then insert a value of something like 10 orders into the "Pyramiding" settings. This will allow 10 orders to be opened at one time which should be enough to catch all possible Longs or Shorts.
Requirements
Inputs
Chained: GKD-B Baseline
Solo: NA, no inputs
Baseline + Volatility/Volume: GKD-B Baseline
Outputs
Chained: GKD-C indicators Confirmation 1 or Solo Confirmation Complex
Solo: GKD-BT Backtest
Baseline + Volatility/Volume: GKD-BT Backtest
Additional features will be added in future releases.
GKD-C T3 Velocity [Loxx]Giga Kaleidoscope GKD-C T3 Velocity 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: Volatility Ratio
Confirmation 1: GKD-V T3 Velocity 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-V T3 Velocity
What is T3?
The T3 Moving Average (T3MA) is a technical analysis indicator that was developed by Tim Tillson. It is a trend-following indicator that aims to provide a smoother and more accurate representation of price trends than other moving average indicators.
The T3MA is a type of exponential moving average (EMA) that is calculated using a series of complex formulas. Unlike a simple or exponential moving average, which use fixed smoothing factors, the T3MA uses a variable smoothing factor that is based on the volatility of the underlying asset. This means that the T3MA is able to adapt to changing market conditions and provide more accurate signals.
The formula for calculating the T3MA is as follows:
T3 = a * EMA1 + (1 - a) * T3
Where:
-T3 is the current value of the T3MA
-EMA1 is the current value of the first EMA
-T3 is the previous value of the T3MA
-a is the smoothing factor, which is based on the volatility of the underlying asset and is calculated using the following formulas:
-c1 = -1 + exp(-sqrt(2) * pi / period)
-c2 = 2 * c1 * c1 + 2 * c1
-c3 = 1 - c1 - c2
-a = c1 * sqrt(period) * (close - T3 ) + c2 * T3 + c3 * EMA1
In simple terms, the T3MA is calculated by taking a weighted average of two different EMAs, with the weight given to each EMA depending on the volatility of the asset being analyzed. The T3MA is then smoothed using a second smoothing factor, which further reduces noise and improves the accuracy of the indicator.
The T3MA can be used in a variety of ways by traders and analysts. Some common applications include using the T3MA as a trend-following indicator, with buy signals generated when the price of an asset crosses above the T3MA and sell signals generated when the price crosses below. The T3MA can also be used in combination with other indicators and analytical techniques to confirm trading decisions and identify potential trend reversals.
Overall, the T3 Moving Average is a highly sophisticated and complex technical indicator that is designed to provide a more accurate and reliable representation of price trends. While it may be difficult for novice traders to understand and use effectively, experienced traders and analysts may find the T3MA to be a valuable tool in their trading toolbox.
What is Velocity?
Velocity can have different meanings depending on the context. Here are a few definitions:
In physics, velocity is a measure of the rate and direction of motion of an object. It is typically expressed in meters per second (m/s) or another unit of distance divided by time.
In finance and economics, velocity refers to the speed at which money circulates in an economy. It is usually measured as the ratio of gross domestic product (GDP) to the money supply.
In trading, velocity can refer to the speed and magnitude of price movements. It can be used as an indicator of momentum or trend strength.
What is T3 Velocity?
T3 Velocity is a better performing MACD that uses different hot (alpha) values for the slow and fast period inputs.
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.
RAS.V2 Strength Index OscillatorHeavily modified version of my previous "Relative Aggregate Strength Oscillator" -Added high/low lines, alma curves,, lrc bands, changed candle calculations + other small things. Replaces the standard RSI indicator with something a bit more insightful.
Credits to @wolneyyy - 'Mean Deviation Detector - Throw Out All Other Indicators ' And @algomojo - 'Responsive Coppock Curve'
And the default Relative Strength Index
The candles are the average of the MFI ,CCI ,MOM and RSI candles, they seemed similar enough in style to me so I created candles out of each and the took the sum of all the candle's OHLC values and divided by 4 to get an average, same as v1 but with some tweaks. Previous Peaks and Potholes visible with the blue horizontal lines which adjust when a new boundary is established. Toggle alma waves or smalrc curves or both to your liking. This indicator is great for calling out peaks and troughs in realtime, although is best when combined with other trusted indicators to get a consensus.
Currency Strength v3.0Currency Strength v3.0
Summary
The Currency Strength indicator is a powerful tool designed to gauge the relative strength of major and emerging market currencies. By plotting the True Strength Index (TSI) of various currency indices, it provides a clear visual representation of which currencies are gaining momentum and which are losing it. This indicator automatically detects the currency pair on your chart and highlights the corresponding strength lines, simplifying analysis and helping you quickly identify potential trading opportunities based on currency dynamics.
Key Features
Comprehensive Currency Analysis: Tracks the strength of 19 currencies, including major pairs and several emerging market currencies.
Automatic Pair Detection: Intelligently identifies the base and quote currency of the active chart, automatically highlighting the relevant strength lines.
Dynamic Coloring: The base currency is consistently colored blue, and the quote currency is colored gold, making it easy to distinguish between the two at a glance.
Non-Repainting TSI Calculation: Uses the True Strength Index (TSI) for smooth and reliable momentum readings that do not repaint.
Customizable Settings: Allows for adjustment of the fast and slow periods for the TSI calculation to fit your specific trading style.
Clean Interface: Features a minimalist legend table that only displays the currencies relevant to your current chart, keeping your workspace uncluttered.
How It Works
The indicator pulls data from major currency indices (like DXY for the US Dollar and EXY for the Euro). For currencies that don't have a dedicated index, it uses their USD pair (e.g., USDCNY) and inverts the calculation to derive the currency's strength relative to the dollar. It then applies the True Strength Index (TSI) to this data. The TSI is a momentum oscillator that is less volatile than other oscillators, providing a more reliable measure of strength. The resulting values are plotted on the chart, allowing you to see how different currencies are performing against each other in real-time.
How to Use
Trend Confirmation: When the base currency's line is rising and above the zero line, and the quote currency's line is falling, it can confirm a bullish trend for the pair. The opposite would suggest a bearish trend.
Identifying Divergences: Look for divergences between the currency strength lines and the price action of the pair. For example, if the price is making higher highs but the base currency's strength is making lower highs, it could signal a potential reversal.
Crossovers: A crossover of the base and quote currency lines can signal a shift in momentum. A bullish signal occurs when the base currency line crosses above the quote currency line. A bearish signal occurs when it crosses below.
Overbought/Oversold Levels: The horizontal dashed lines at 0.5 and -0.5 can be used as general guides for overbought and oversold conditions, respectively. Strength moving beyond these levels may indicate an unsustainable move that is due for a correction.
Settings
Fast Period: The short-term period for the TSI calculation. Default is 7.
Slow Period: The long-term period for the TSI calculation. Default is 15.
Index Source: The price source used for the calculations (e.g., Close, Open). Default is Close.
Base Currency Color: The color for the base currency line. Default is Royal Blue.
Quote Currency Color: The color for the quote currency line. Default is Goldenrod.
Disclaimer
This indicator is intended for educational and analytical purposes only. It is not financial advice. Trading involves substantial risk, and past performance is not indicative of future results. Always conduct your own research and risk management before making any trading decisions.
