Oster's Vola Sentiment (OVS)Overview:
Oster's Vola Sentiment (OVS) is an indicator that reflects market sentiment dynamics based on volatility , employing Oster's Volatility Method for calculation. Inspired by traditional volatility analysis, this indicator provides a versatile tool for traders to interpret market sentiments and identify potential trading opportunities, including potential reversal points . By adjusting the period length in the settings, users can fine-tune OVS sensitivity to capture buy or sell signals, achieving different signal qualities.
Sophisticated Calculation Methodology:
The OVS derives insights from Oster's Volatility Method, utilizing metrics related to price range and movement to assess market dynamics. It calculates the relative movement index, providing traders with a quantifiable measure of market sentiment. Additionally, OVS incorporates the Average True Range (ATR) to further refine its analysis, ensuring comprehensive insights into market volatility dynamics.
Interpretation:
Oster's Vola Sentiment (OVS) , represented on the chart, offers traders insights into market sentiment dynamics and potential reversal points . Values above 0 indicate a buy tendency, suggesting favorable conditions for buying opportunities, while values below 0 suggest a sell tendency, signaling potential selling pressure. The probability of a significant market move increases as OVS values approach the predefined buy or sell thresholds. Values exceeding the buy threshold indicate stronger buying signals, while values below the sell threshold signify stronger selling signals. By aligning these interpretations with the trader's investment strategy, OVS aids in decision-making processes, offering nuanced perspectives on market movements.
Dynamic Color Coding for Visual Clarity:
To enhance user experience and facilitate quick decision-making, OVS incorporates dynamic color coding . Market conditions favoring selling are denoted by red hues, while those conducive to buying are highlighted in green. Neutral conditions, indicative of balanced market sentiment, are represented in neutral colors. This intuitive visual feedback enables traders to swiftly identify market opportunities and risks, empowering them to make informed trading decisions.
Customizable Parameters for Tailored Analysis:
Acknowledging the diverse trading preferences and strategies of its users, OVS offers customizable parameters. Traders can adjust the period length to fine-tune the indicator's sensitivity to their desired level, balancing the frequency and quality of signals according to their trading objectives. Additionally, OVSs alert functionalities allow traders to set personalized thresholds, aligning with their risk tolerance and market outlook.
Conclusion:
In conclusion, Oster's Vola Sentiment (OVS) emerges as a valuable addition to the trader's toolkit, offering a versatile and accessible approach to market analysis. Built upon Oster's Volatility Method and sophisticated calculation methodologies, OVS provides traders with actionable insights into market sentiment across various timeframes and asset classes , including potential reversal points. Its intuitive visualizations, coupled with customizable parameters and alert functionalities, empower traders to navigate dynamic market conditions with confidence. Whether you're a seasoned investor or a novice trader, OVS equips you with the tools needed to stay ahead in today's competitive markets.
Komut dosyalarını "reversal" için ara
Mean Reversion Watchlist [Z score]Hi Traders !
What is the Z score:
The Z score measures a values variability factor from the mean, this value is denoted by z and is interpreted as the number of standard deviations from the mean.
The Z score is often applied to the normal distribution to “standardize” the values; this makes comparison of normally distributed random variables with different units possible.
This popular reversal based indicator makes an assumption that the sample distribution (in this case the sample of price values) is normal, this allows for the interpretation that values with an extremely high or low percentile or “Z” value will likely be reversal zones.
This is because in the population data (the true distribution) which is known, anomaly values are very rare, therefore if price were to take a z score factor of 3 this would mean that price lies 3 standard deviations from the mean in the positive direction and is in the ≈99% percentile of all values. We would take this as a sign of a negative reversal as it is very unlikely to observe a consecutive equal to or more extreme than this percentile or Z value.
The z score normalization equation is given by
In Pine Script the Z score can be computed very easily using the below code.
// Z score custom function
Zscore(source, lookback) =>
sma = ta.sma(source, lookback)
stdev = ta.stdev(source, lookback, true)
zscore = (source - sma) / stdev
zscore
The Indicator:
This indicator plots the Z score for up to 20 different assets ( Note the maximum is 40 however the utility of 40 plots in one indicator is not much, there is a diminishing marginal return of the number of plots ).
Z score threshold levels can also be specified, the interpretation is the same as stated above.
The timeframe can also be fixed, by toggling the “Time frame lock” user input under the “TIME FRAME LOCK” user input group ( Note this indicator does not repain t).
Support & Resistance AI (K means/median) [ThinkLogicAI]█ OVERVIEW
K-means is a clustering algorithm commonly used in machine learning to group data points into distinct clusters based on their similarities. While K-means is not typically used directly for identifying support and resistance levels in financial markets, it can serve as a tool in a broader analysis approach.
Support and resistance levels are price levels in financial markets where the price tends to react or reverse. Support is a level where the price tends to stop falling and might start to rise, while resistance is a level where the price tends to stop rising and might start to fall. Traders and analysts often look for these levels as they can provide insights into potential price movements and trading opportunities.
█ BACKGROUND
The K-means algorithm has been around since the late 1950s, making it more than six decades old. The algorithm was introduced by Stuart Lloyd in his 1957 research paper "Least squares quantization in PCM" for telecommunications applications. However, it wasn't widely known or recognized until James MacQueen's 1967 paper "Some Methods for Classification and Analysis of Multivariate Observations," where he formalized the algorithm and referred to it as the "K-means" clustering method.
So, while K-means has been around for a considerable amount of time, it continues to be a widely used and influential algorithm in the fields of machine learning, data analysis, and pattern recognition due to its simplicity and effectiveness in clustering tasks.
█ COMPARE AND CONTRAST SUPPORT AND RESISTANCE METHODS
1) K-means Approach:
Cluster Formation: After applying the K-means algorithm to historical price change data and visualizing the resulting clusters, traders can identify distinct regions on the price chart where clusters are formed. Each cluster represents a group of similar price change patterns.
Cluster Analysis: Analyze the clusters to identify areas where clusters tend to form. These areas might correspond to regions of price behavior that repeat over time and could be indicative of support and resistance levels.
Potential Support and Resistance Levels: Based on the identified areas of cluster formation, traders can consider these regions as potential support and resistance levels. A cluster forming at a specific price level could suggest that this level has been historically significant, causing similar price behavior in the past.
Cluster Standard Deviation: In addition to looking at the means (centroids) of the clusters, traders can also calculate the standard deviation of price changes within each cluster. Standard deviation is a measure of the dispersion or volatility of data points around the mean. A higher standard deviation indicates greater price volatility within a cluster.
Low Standard Deviation: If a cluster has a low standard deviation, it suggests that prices within that cluster are relatively stable and less likely to exhibit sudden and large price movements. Traders might consider placing tighter stop-loss orders for trades within these clusters.
High Standard Deviation: Conversely, if a cluster has a high standard deviation, it indicates greater price volatility within that cluster. Traders might opt for wider stop-loss orders to allow for potential price fluctuations without getting stopped out prematurely.
Cluster Density: Each data point is assigned to a cluster so a cluster that is more dense will act more like gravity and
2) Traditional Approach:
Trendlines: Draw trendlines connecting significant highs or lows on a price chart to identify potential support and resistance levels.
Chart Patterns: Identify chart patterns like double tops, double bottoms, head and shoulders, and triangles that often indicate potential reversal points.
Moving Averages: Use moving averages to identify levels where the price might find support or resistance based on the average price over a specific period.
Psychological Levels: Identify round numbers or levels that traders often pay attention to, which can act as support and resistance.
Previous Highs and Lows: Identify significant previous price highs and lows that might act as support or resistance.
The key difference lies in the approach and the foundation of these methods. Traditional methods are based on well-established principles of technical analysis and market psychology, while the K-means approach involves clustering price behavior without necessarily incorporating market sentiment or specific price patterns.
It's important to note that while the K-means approach might provide an interesting way to analyze price data, it should be used cautiously and in conjunction with other traditional methods. Financial markets are influenced by a wide range of factors beyond just price behavior, and the effectiveness of any method for identifying support and resistance levels should be thoroughly tested and validated. Additionally, developments in trading strategies and analysis techniques could have occurred since my last update.
█ K MEANS ALGORITHM
The algorithm for K means is as follows:
Initialize cluster centers
assign data to clusters based on minimum distance
calculate cluster center by taking the average or median of the clusters
repeat steps 1-3 until cluster centers stop moving
█ LIMITATIONS OF K MEANS
There are 3 main limitations of this algorithm:
Sensitive to Initializations: K-means is sensitive to the initial placement of centroids. Different initializations can lead to different cluster assignments and final results.
Assumption of Equal Sizes and Variances: K-means assumes that clusters have roughly equal sizes and spherical shapes. This may not hold true for all types of data. It can struggle with identifying clusters with uneven densities, sizes, or shapes.
Impact of Outliers: K-means is sensitive to outliers, as a single outlier can significantly affect the position of cluster centroids. Outliers can lead to the creation of spurious clusters or distortion of the true cluster structure.
█ LIMITATIONS IN APPLICATION OF K MEANS IN TRADING
Trading data often exhibits characteristics that can pose challenges when applying indicators and analysis techniques. Here's how the limitations of outliers, varying scales, and unequal variance can impact the use of indicators in trading:
Outliers are data points that significantly deviate from the rest of the dataset. In trading, outliers can represent extreme price movements caused by rare events, news, or market anomalies. Outliers can have a significant impact on trading indicators and analyses:
Indicator Distortion: Outliers can skew the calculations of indicators, leading to misleading signals. For instance, a single extreme price spike could cause indicators like moving averages or RSI (Relative Strength Index) to give false signals.
Risk Management: Outliers can lead to overly aggressive trading decisions if not properly accounted for. Ignoring outliers might result in unexpected losses or missed opportunities to adjust trading strategies.
Different Scales: Trading data often includes multiple indicators with varying units and scales. For example, prices are typically in dollars, volume in units traded, and oscillators have their own scale. Mixing indicators with different scales can complicate analysis:
Normalization: Indicators on different scales need to be normalized or standardized to ensure they contribute equally to the analysis. Failure to do so can lead to one indicator dominating the analysis due to its larger magnitude.
Comparability: Without normalization, it's challenging to directly compare the significance of indicators. Some indicators might have a larger numerical range and could overshadow others.
Unequal Variance: Unequal variance in trading data refers to the fact that some indicators might exhibit higher volatility than others. This can impact the interpretation of signals and the performance of trading strategies:
Volatility Adjustment: When combining indicators with varying volatility, it's essential to adjust for their relative volatilities. Failure to do so might lead to overemphasizing or underestimating the importance of certain indicators in the trading strategy.
Risk Assessment: Unequal variance can impact risk assessment. Indicators with higher volatility might lead to riskier trading decisions if not properly taken into account.
█ APPLICATION OF THIS INDICATOR
This indicator can be used in 2 ways:
1) Make a directional trade:
If a trader thinks price will go higher or lower and price is within a cluster zone, The trader can take a position and place a stop on the 1 sd band around the cluster. As one can see below, the trader can go long the green arrow and place a stop on the one standard deviation mark for that cluster below it at the red arrow. using this we can calculate a risk to reward ratio.
Calculating risk to reward: targeting a risk reward ratio of 2:1, the trader could clearly make that given that the next resistance area above that in the orange cluster exceeds this risk reward ratio.
2) Take a reversal Trade:
We can use cluster centers (support and resistance levels) to go in the opposite direction that price is currently moving in hopes of price forming a pivot and reversing off this level.
Similar to the directional trade, we can use the standard deviation of the cluster to place a stop just in case we are wrong.
In this example below we can see that shorting on the red arrow and placing a stop at the one standard deviation above this cluster would give us a profitable trade with minimal risk.
Using the cluster density table in the upper right informs the trader just how dense the cluster is. Higher density clusters will give a higher likelihood of a pivot forming at these levels and price being rejected and switching direction with a larger move.
█ FEATURES & SETTINGS
General Settings:
Number of clusters: The user can select from 3 to five clusters. A good rule of thumb is that if you are trading intraday, less is more (Think 3 rather than 5). For daily 4 to 5 clusters is good.
Cluster Method: To get around the outlier limitation of k means clustering, The median was added. This gives the user the ability to choose either k means or k median clustering. K means is the preferred method if the user things there are no large outliers, and if there appears to be large outliers or it is assumed there are then K medians is preferred.
Bars back To train on: This will be the amount of bars to include in the clustering. This number is important so that the user includes bars that are recent but not so far back that they are out of the scope of where price can be. For example the last 2 years we have been in a range on the sp500 so 505 days in this setting would be more relevant than say looking back 5 years ago because price would have to move far to get there.
Show SD Bands: Select this to show the 1 standard deviation bands around the support and resistance level or unselect this to just show the support and resistance level by itself.
Features:
Besides the support and resistance levels and standard deviation bands, this indicator gives a table in the upper right hand corner to show the density of each cluster (support and resistance level) and is color coded to the cluster line on the chart. Higher density clusters mean price has been there previously more than lower density clusters and could mean a higher likelihood of a reversal when price reaches these areas.
█ WORKS CITED
Victor Sim, "Using K-means Clustering to Create Support and Resistance", 2020, towardsdatascience.com
Chris Piech, "K means", stanford.edu
█ ACKNOLWEDGMENTS
@jdehorty- Thanks for the publish template. It made organizing my thoughts and work alot easier.
Trend Change DetectorThe trend change detector oscillator is a tool designed to help traders identify the current trend direction paired with the potential reversal zones.
The oscillator is made of multiple parts:
- The colored histogram, that displays the current long-term trend direction (long if above 0, short if below)
- The trend line, which shows the price in relation to the fair value of the current trend
- The reversal zones, which are the area that alarms the traders that the price might reverse soon after having touched them
The indicator can work with three different inputs. In the Source panel, you can choose between "Price", "Price and Volume" and "Ponderated Volume". The price input uses only the price, the price and volume use the average between the price and the ponderated volume, and the ponderated volume shows the indicator working with volume data, with formulas such as the On Balance Volume and the Accumulation-Distribution line.
This indicator can be used both for trend following technique, using the cross of the trend line with the 0-line as signals in conjunction with the bias given by the histogram, and for mean reversal technique thanks to the reversal zones that allow traders to identify potential tops and bottoms.
Agressive ConfirmationThis indicator serves as a guide for aggressive counter-trend trading, offering entries, a trailing stop for trade exits and a performance backtesting system (risk ratio).
AC proves to be an excellent ally in assisting counter-trend entry decisions. The signals come from two different sources, and are positioned almost identically in terms of the timing of entry into a trade on a trend change.
The first is RSI reintegration: simple, effective. The second is price action reintegration (identifies short-term support/resistance, a false break with counter-trend reinjection).
The duality of this entry system means you can be present on most local tops and bottoms without having an excessively high number of trade entries. The failure of the first entry can give a signal on the second (divergence, volatility...): use this complementarity to your advantage! If the first signal ends in a loss, wait for confirmation on the second signal.
The trailing stop system is activated as soon as an entry signal is detected, and if no entry signal is still active. The trade is closed when the candle closes above or below the trailing stop.
Two possible settings:
"passive": (multiply 5, period 8), least reactive trailing stop, willing to hold the trade
"balanced": (multiply 1, period 4): versatile trailing stop, ideal compromise.
These trailing stop parameters are optimized by the automated backtesting strategy of our IRL indicator, which indicates precise reversal levels. To use them in this specific context, you need to be in timeframe m1. For more information on these levels, please see my profile!
The stop loss for each reversal corresponds to the last high/low of the last 4 candles. It's possible to display this value above or below the trade entry signal, which makes it easier to understand the practical application of the signals presented.
An option for displaying more information on trades executed once closed. When an exit signal is detected (stop loss OR trailing stop), the candle leading to the trade's closure is marked with a label, providing information on the trade's profit (expressed in R, risk ratio). A second piece of information, in brackets, is the drawup: this corresponds to the maximum unrealized PNL of the closed trade.
The size of these labels can be modified according to the trade's PNL, all managed by profitability thresholds in R (default: 8R, 4R, 1R).
these latest entry signal performance functions optimize the backtesting process and the identification of relevant reversal strategies, by reversing the methodology: "where are the biggest profits made over such and such a period, what were the signals of my studied strategy, ...". The drawup, for its part, will enable you to appreciate an entry during a volatile period, which can sometimes lead to substantial short-term gains, but which the trailing stop exit failed to capitalize on!
A second signal corresponds to an additional confirmation, generally later in the timing, and informed by candle coloring. Based on RSI convergence/divergence, and to be used as a possible complementary filter to entry signals. Independent and without impact on the entry and exit signals studied.
This indicator has been developed in synergy with our other published technical indicators for identifying reversal zones / reversal timings, and offers a guideline for those less experienced in frontrunning/counter-trending. AC should be the sinequa none for a reversal entry, and will enable you to appreciate the reversal setups studied!
Typical Price Difference - TPD © with reversal zones and signalsv1.0 NOTE: The maths have been tested only for BTC and weekly time frame.
This is a concept that I came through after long long hours of VWAP trading and scalping.
The idea is pretty simple:
1) Typical Price is calculated by (h+l+c) / 3. If we take this price and adjust it to volume we get the VWAP value. The difference between this value and the close value, i call it " Typical Price Difference - TPD ".
2) We get the Historical Volatility as calculated by TradingView script and we add it up to TPD and divide it by two (average). This is what I call " The Source - TS ".
3) We apply the CCI formula to TS .
4) We calculate the Rate of Change (roc) of the CCI formula.
5) We apply the VIX FIX of Larry Williams (script used is from ChrisMoody - CM_Williams_Vix_Fix Finds Market Bottoms) *brilliant script!!!
How to use it:
a) When the (3) is over the TPD we have a bullish bias (green area). When it's under we have a bearish bias (red area).
b) If the (1) value goes over or under a certain value (CAUTION!!! it varies in different assets or timeframes) we get a Reversal Zone (RZ). Red/Green background.
c) If we are in a RZ and the VIX FIX gives a strong value (look for green bars in histogram) and roc (4) goes in the opposite direction, we get a reversal signal that works for the next week(s).
I applied this to BTC on a weekly time frame and after some corrections, it gives pretty good reversal zones and signals. Especially bottoms. Also look for divergences in the zones/signals.
As I said I have tested and confirmed it only on BTC/weekly. I need more time with the maths and pine to automatically adjust it to other time frames. You can play with it in different assets or time frames to find best settings by hand.
Feel free to share your thoughts or ideas on this.
P.S. I realy realy realy try to remember when or how or why I came up with the idea to combine typical price with historical volatility and CCI. I can't! It doesn't make any sense LOL
TASC 2022.12 Short-Term Continuation And Reversal Signals█ OVERVIEW
TASC's December 2022 edition Traders' Tips includes an article by Barbara Star titled "Short-Term Continuation And Reversal Signals". This is the code that implements the concepts presented in this publication.
█ CONCEPTS
The article takes two classic indicators, the Commodity Channel Index (CCI) and the Directional Movement Indicator (DMI), makes changes to the traditional ways of visualizing their readings, and uses them together to generate potential signals. The author first discusses the benefits of converting the DMI indicator to an oscillator format by subtracting the −DI from the +DI, which is then displayed as a histogram. Next, the author shows how the use of an on-chart visual framework (i.e., choosing the line style and color, coloring price bars, etc.) can help traders interpret the signals produced the considered pair of indicators.
█ CALCULATIONS
The article offers the following signals based on the readings of the DMI and CCI pair, suitable for several types of trades:
• Short-term trend change signals:
A DMI oscillator above zero indicates that prices are in an uptrend. A DMI oscillator below the zero line and falling means that selling pressure is dominating and price is trending down. The sign of the DMI oscillator is indicated by the color of the price bars (which correlates with the color of the DMI histogram). Namely, green, red and grey price bars correspond to the DMI oscillator above, below and equal to zero . Colored price bars and the DMI oscillator make it easy for trend traders to recognize changes in short-term trends.
• Trend continuation signals:
Blue circles appear near the bottom of the oscillator chart border when the DMI is above the zero line and the price is above its simple moving average in an uptrend . Dark red circles appear near the top of the chart in a downtrend when the DMI oscillator is below its zero line and below the 18-period moving average. Trend continuation signals are useful for those looking to add to existing positions, as well as for traders waiting for a pullback after a trend has started.
• Reversal signals:
The CCI signals a reversal to the downside when it breaks out of its +100 and then returns at some point, crossing below the +100 level. This is indicated by a magenta-colored diamond shape near the top the chart. The CCI signals a reversal to the upside when it moves below its −100 level and then at some point comes back to cross above the −100 level. This is indicated by a yellow diamond near the bottom of the chart. Reversal signals offer short-term rallies for countertrend traders as well as for swing traders looking for longer-term moves using the interplay between continuation and reversal signals.
Index Reversal Range with Volatility Index or VIXWhat is the Indicator?
• The indicator is a visualization of maximum price in which the respective index can go up to in comparison with it's Volatility Index or VIX.
Who to use?
• Intraday
• Swing
• Position
• Long term Investors
• Futures
• Options
• Portfolio Managers
• Mutual Fund Managers
• Index Traders
• Volatility based Traders
• Long term Investors and Options Traders gets the maximum benefit
What timeframe to use?
• 1 Year: Position & Investors
• 6 Months: Position & Investors
• 3 Months: Swing & Position
• 1 Month: Swing & Position
• 1 Week: Swing
• 1 Day: Swing
• 1 Hour: Intraday & Swing
What are Upper and Lower lines?
• Upper Line: If the index price reach closer to the Upper line there is a high chance of reversal to Bearish trend.
• Lower Line: If the index price reach closer to the Lower line there is a high chance of reversal to Bullish trend.
• This need to be confirmed with multiple levels like Daily, Weekly, Monthly etc.
How to use?
• If the price reach closer to that level there is a high chance of reversal from the current trend.
• To identify the reversal zone of the index.
• To identify the trend.
• Option Traders can Sell a Call or Put Option from that level.
• Long term Investors, Position or Swing traders can plan for a Long entry.
• Intraday traders can use lower timeframes to do the same.
Indicator Menu
• Input VIX: Identify the VIX Symbol of your Index and type it in the box.
• For example for NIFTY Index chart type INDIAVIX in the box.
• Choose multiple timeframes according to your convenience.
How to turn on indicator Name and Value labels?
• Right side of the screen >
• Right click on the Price scale >
• Labels > Indicators and financial name labels, Indicators and financial value labels
Further Reading:
• Various videos and reading materials are available about this method.
wnG - Spikes IdentifierThis indicator, based on the ATR, allows you to identify the potential reversal on price and helps you identify the Support and Resistance.
When the price moves far away from the multiple moving average, the background color changes :
- Red for Short potential entry
- Green for Long potential entry
There are 2 ways to use this script :
- Conservative : Use it in your trading system to Take Profit ==> when the background turns red, close LONG position (and green = close short).
- Aggressive : As soon as the background turns red, enter SHORT (and green = long).
For aggressive use, I recommand you to couple this script with an oscillator to confirm the signals (RSI stochastic for example).
You can customize the sensibility with 4 levels :
- low probability of reversal
- medium probability of reversal
- high probability of reversal
- very high probability of reversal
PS : the "High" and "Very High" probability setup are the only one I'm using in my trading systems.
Trend Pro ReversalTrend Pro Reversal Indicator ( TPR ) is a trend following indicator that I created to analyze market trends.
It is a perfect tool for investors/swing traders to ride the waves.
The algorithm combines several settings.
Multiple moving averages and indicators to follow the trend : their confluence associates a color at each daily candle:
-Red ( bearish ++ )
-Green ( bullish ++ )
-Orange (trend reversal - pre bearish )
-Light blue (trend reversal - pre bullish )
Color precision can be managed in the settings pannel. More precision = more reactivity but also can imply more false signals. The optimal settings is between 32 to 34.
-"Bottom detector" (green dots) : volume based algo, generally corresponds to Spikes in selling volume , and interesting low prices zones.
>>>This setting need to be adjust to each asset and exchanges because it's volume based. Some exchange are more relevant than other (coinbase, ftx, binance..)
For exemple for bitcoin , coinbase with a 150-160 bottom setting is good for mid-long term bottoms.
The lower bottom precision is, the more it shows short term dips.
- "Weakness detector" (white dots) : weakness in the trend - avoid fake outs
>>>This is not necesseraly a sell signal.
When buying momentum and price action is weak, this parameter is actived. It can often lead to short/mid term dump
- Confirmation cloud :
>>>Break it to the upside and there are more chances that the trend is confirmed. It often acts like support cloud in bitcoin bullmarkets. Waiting for the break of the confirmation cloud imply lower risk but also lower performance for swing traders.
Accumulate and averaging down when an asset shows green dots + red candles (bottom zone) and start to close position when weakness come in (green/orange/early-red /white dots) can permit to maximize gains in bullmarket and protect wallet when corrections happen.
-> Ideal use in daily timeframe . Some false signal can happen only when the trend is not clear. (tight range and f*ckmoves)
Designed for bitcoin initially. (works with most altcoins / stocks )
Simplified candlesticksSimplified candlesticks tracks sticks for their body and wick
- For Long bars sticks ( LS ) tracks and marks them on down trend as continuation and reversal if moves appositive direction.
- For largest wicks on ends marks as regular Doji
- For large wicks and medium body marks as possible consolidation
- For only bottom bigger wick as bears weakness if trend down and possible reversal if trend is up.
- For only upper bigger wick as bulls weakness if trend up and possible reversal if trend is down
[blackcat] L2 Reversal LabelsLevel: 2
Background
There is a Chinese proverb that says: "The great way leads to simplicity". This indicator is the representative of this meaning. Through the processing of the most common MACD indicator data, it is possible to quickly determine the market price: whether the current price is at a historical high or low, whether a reversal will happen soon, etc. at a glance.
Function
This indicator performs screening and filtering through the fast and slow line data corresponding to the output of the standard MACD indicator, so as to realize the function of judging the top and bottom of the trend.
Inputs
N/A
Key Signal
Near Top --> Top is reached and reversal may happen soon. (red labels)
Near Bottom --> Bottom is reached and reversal may happen soon. (green labels)
Remarks
This is a Level 2 free and open source indicator.
Feedbacks are appreciated.
Red Dog Reversal IntradayAlerts and bubbles for Red Dog Reversal (RDR) Buy/Sell on intraday chart. Optionally plots prior day High/Low/Close and alerts on price crosses of those prior levels.
Definitions:
Red Dog Reversal (RDR) sell is when the price trades below the prior day's low , then reclaims it in the same session. This is will marked with a bubble and alerted.
Red Dog Reversal (RDR) buy is when the price trades above the prior day's high , then loses it in the same session. This will be marked with a bubble and alerted.
Configuration:
Enable Alert Crossover to alert when price crosses over or under any prior day's level, i.e. High, Low, Close.
Enable Alert Reversal to alert when Red Dog Reversal Buy or Sell.
Note:
To get alerts you must create alerts on your chart, and in the configuration select RDR as the condition . Then in the Alert name select RDR: Any alert() function call
Measure of Relative Strength on Trend ReversalDescription
The Measure of Relative Strength on Trend Reversal displays the relative strength of the symbol vis-a-vis a benchmark based on the trend reversal of the benchmark. At the end of the trend (i.e. when the trend of the benchmark moves from Uptrend to Downtrend, or vice-versa) the strength (measure) of the symbol's performance with respect to the benchmark is calculated. Additionally, the change% of the symbol and the benchmark are calculated and displayed. This 3 information is helpful in determining the relative performance of the symbol with respect to the broader benchmark trend.
Example
For example, consider that the benchmark turned from a downtrend to an uptrend, then at the last bar of the downtrend, the "RS Strength%", the "Symbol%" and the "Benchmark%" shall be displayed. The RS Strength% shows the outperformance/underperformance of the symbol with respect to benchmark for the duration of the downtrend. A negative% means underperformance and a positive% means outperformance. The Symbol% is the % change in the price of the symbol during the downtrend and likewise, Benchmark% is the selected benchmark for the downtrend.
Working
These counters are reset at the beginning of each trend reversal of the benchmark. When the performance of a symbol is stronger on benchmark downtrend for successive times, it is an indication of a strong stock in the making once the larger market recovers.
The trend of the benchmark is established on the basis of a lookback period that is configurable at the input. The trend is established on the reversal of the key moving average by the lookback that is configured. A downtrend in the benchmark is denoted by a gray background and a uptrend in the benchmark is denoted in green.
The input is explained below:
Comparative Symbol - The benchmark. Nifty50 is the default value
Chart Type - Line or Candle plot of the Relative Strength with respect to Benchmark
Lookback for benchmark trend - Lookback to determine the trend of the benchmark
Display RS Strength% - Option to disable the RS strength value and focus only on the RS trend
Ways to use
Backtests show that this indicator is best used on a Weekly Timeframe, with 10 lookback for the benchmark. Any symbol that is constantly beating the benchmark on a downtrend is a strong candidate for outperforming once the market recovers.
On selecting a group index as the benchmark it is possible to identify the strong stocks in the group, those with the highest RS Strengths are the outperformers of the group.
OGT RSI MTF IndicatorThe OGT RSI MTF Indicator allows you to see when the RSI is overbought/oversold on multiple timeframes simultaneously.
Indicator settings
You have the ability to customise the RSI period as well as the OB/OS levels. What sets this indicator apart is that it you can select the timeframes which the RSI is OB/OS.
How is this displayed on the chart, and how can I make money with this indicator?
One of the most popular applications of the RSI indicator is that it can be used as a reversal signal when an instrument comes out of OB/OS. You can stack the odds in your favour when multiple timeframes are OB/OS at the same time which can have a higher probability of a pullback.
When the selected timeframes are OB, shaded red lines will appear. This indicates that a possible reversal to the downside is coming and you may want to look for a short position or closing an open position.
When the selected timeframes are OS, shaded green lines will appear. This indicates that a possible reversal to the upside is coming and you may want to look for a short position or closing an open position.
There is also a handy visible grid which shows the current RSI values for the selected timeframes.
The RSI MTF indicator combined with regular divergence and/or support & resistance can be a powerful trading strategy.
VR Crayons (Signals, Trend and Reversal Indicator)This indicator is a combination of many different basic technical analysis tools, such as RSI, Bollinger Bands, Moving Averages and others.
It's main goal is to provide a fast and reliable visual representation of the current price action and possible entry and exit points for trades.
Explanation of the individual functions:
The indicator includes 2 different functions:
1) The crayons (colors of the candles) show the current state of price action and trend
and can be used to find oversold or overbought areas as well price reversal points.
The colors can be turned off and/or changed in the settings.
2) The signals that can be used to enter or exit trades. There are 4 different types of signals:
Mini signals, high/low timeframe signals and special signals.
All of them can be turned on and off in the settings.
Further explanations
Crayons:
There are 3 general colors, gray, green and red.
Red signals a general downtrend,
Green a general uptrend,
Gray sideways action.
There are also multiple other colors to visualize special situations:
Blue signals overbought areas
Orange signals oversold areas
Yellow and purple signalling heavy oversold areas and a possible trend reversal to the upside
Dark Green signals heavy overbought areas and a possible trend reversal to the downside (Also marked with "R")
Lastly there are two special candle colors, dark red and light blue.
Those are volume weighted indicators of heavy dumping/pumping. I implemented them to signal higher than
average volume which dan be useful when looking for breakouts/-downs or to avoid fomoing into huge pumps or dumps
Signals:
As mentioned above, there are 4 different signal categories.
Signals for Lower Timeframes (5-30m) and Higher Timeframes (1h-D), special signals working on all timeframes
and mini signals which can be taken as TP points but also as entry points for trades.
The placement of the signals shows if it's a "BUY" (below the candles) or a "SELL" (above the candles).
Even-though signals are named "LTF signals", from my experience they can be used on all timeframes.
HTF signals do not work as good on lower timeframes.
For the best visualisation, disable candle borders in settings and turn the wick color to gray.
!! DISCLAIMER !!
All of these signals and bar colors are just visual helpers to find possible entry and exit points for your trades
and to get a quick overview of the current market conditions.
I would always recommend to use at least some basic technical analysis in combination.
And as always in trading, please use proper risk management! None of these signals can an will be 100% accurate!
!! All of these signals and colors are only valid AFTER candle close !!
!! This indicator is NOT repainting !!
Please don't use the comment section to ask for access to this indicator, you can always write me a PM.
Volume Confirmation Signal by BobRivera990The purpose of this script is to determine the response of trading volume to price action
This is not an indicator but a set of four signals
1 - Bullish Strength Signal (Upward Green Triangle) :
If the resistance is broken at the same time is valid
this signal indicates the continuation of the bullish trend
the trading volume is relatively high.
If the bar is closed above the resistance level, It will probably turn into support.
2 - Bullish Reversal Signal (Upward Black Triangle) :
if the bar is closed above the support level is valid
this signal indicates trend reversal after a bearish candle
the trading volume is very high.
3 - Bearish Strength Signal (Downward Red Triangle) :
If the Support is broken at the same time is valid
this signal indicates the continuation of the bearish trend
the trading volume is relatively high.
If the bar is closed below the support level, It will probably turn into resistance.
4 - Bearish Reversal Signal (Downward Black Triangle) : if the bar is closed below the resistance level is valid
this signal indicates trend reversal after a bullish candle
the trading volume is very high.
Heikin Ashi reversal pointsThis study plots higher time frames Heikin Ashi candles open values and creates clouds above/below those value. When lower timeframe candles enters this cloud - that is the turning point, where HTF Heiking Ashi candle change its color.
Script uses ALMA smoothing of current selected time period. When ALMA enters area, where HTF candles changes its color, then current candle is colored based on the possible next trend.
Script can be used for any time periods, but default values 4H ALMA , 3D (fast) and 1W(slow) Heikin candles.
Green candle = ALMA above both faster and slower HA candle reversal point.
Red candle = ALMA below both faster and slower HA candle reversal point.
Gray candle = indicision points - ALMA is between faster and slower HA candle reversal point.
To add further details - hull moving averages might be displayed, to support prediction of the next price trends.
Script was developed mainly for crypto
Outside Reversal CandleA lot of people get freaked out by outside reversal Days in the market like what we had yesterday.
"I think a great learning tool would be an indicator that highlights on the chart any outside reversal bar"
Rules:
both the high and the low is higher than the previous day
the low of the day is in the bottom 1/3 of the price range
the volume is higher than the bar immediately before it
With indicator every Outside Reversal candle body and background is highlighted,
People can now easily go back in time and see what happened after and make adjustments to their strategies.
Bollinger Band Reversal StudyThis strategy was inspired by ParallaxFX.
This strategy attempts to predict when a price reversal will happen. It uses bollinger bands, stochastics and candle formations.
The idea is that when an indecision candle, such as a doji, crosses outside the bollinger bands, then is followed by another candle that pushed sharply back inside the bands, you have a setup.
These setups are marked with green arrows to go long and red arrows to go short. Wait until the next candle begins before acting. The arrow may come and go as the price fluctuates, so wait until the candle closes.
Another play is when the same setup occurs, but on the middle bollinger band instead of the outer band.
These setups are marked with blue arrows to go long and yellow arrows to go short. Wait until the next candle begins before acting. The arrow may come and go as the price fluctuates, so wait until the candle closes.
Closing can happen a number of ways. You can use a predetermined risk-reward or look to sell when the price reaches another band.
In summary.
Go long when a green or blue arrow appears.
Go Short when a red or yellow arrow appears.
Green arrows show signs of reversal from lower BB.
Blue arrows show signs of reversal from middle BB.
Red arrows show signs of reversal from upper BB.
Yellow arrows show signs of reversal from middle BB.
Wait for candle with arrow to close before taking trade.
TREND(KT, MA, BB) SQUEZEE and GO E REVERSAL(BB) - RIVA KELLER TREND
This indicator shows the moment to enter a trend, being 3 different indicators, Bollinger Bands, Keltner channel and moving average.
Use a “Boca de Jacaré” strategy or squeeze and go, which happens when the Bollinger bands open, to identify this using the Keltner channel, to filter the moment to enter the operation, two moving average, one of minimal and another one of maximums and to follow a trend used a slow moving average (50 or 90 reductions).
• BUY POSITION: When the Bollinger bands (BB SQUEEZE trend) are opened, the smallest remaining in the Keltner channel (KC trend) and the closing price for the highest moving average of maxima (MAH) and the fast average (MAT), we have a purchase. Always entering the first green candle.
• SELL POSITION: when the Bollinger bands (BB trend) open, they become smaller than the Keltner channel (KC trend) and the closing price for the lower than the minute moving average (MAL) and the slow moving average (MAT), we have a sale. Always entering the first red candle.
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REVERSAL
This indicator shows a trend reversal, it consists of 3 steps.
• When the candle is closed to bollinger bands (BB reversal), we don't have a defined direction, we wait.
• When a candle closes again inside the boolinger bands (BB reversal), a candle is colored, blue indicates a possible buy and pink indicates a possible sell.
• To filter as operations, enter 50 pips or points below the closure of the pink candle, or 50 pips or points above the closure of the blue candle.
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TENDÊNCIA
Este indicador nos mostra o momento de entrar em uma tendência, ele consiste de 3 indicadores diferentes, Bollinger Bands, Keltner channel e médias móveis.
Utilizamos a estratégia “Boca de jacaré” ou squeeze and go, que acontece quando as Bollinger bands se apertam, para identificar isso utilizamos o canal de Keltner, para filtrar o momento de entrar na operação, utilizamos duas médias móveis, uma de mínimas, outra de máximas e para entrar seguindo a tendência utilizamos uma média móvel lenta (50 ou 90 períodos).
• POSIÇÃO COMPRADA: Quando as Bandas de Bollinger(BB SQUEEZE trend) se apertam, ficando menores que o canal de Keltner(KC trend) e o preço de fechamento for maior que a média móvel de máximas(MAH) e da média móvel lenta(MAT), temos uma compra. Sempre entrando no primeiro candle verde.
• POSIÇÃO VENDIDA: Quando as Bandas de Bollinger(BB trend) se apertam, ficando menores que o canal de Keltner(KC trend) e o preço de fechamento for menor que a média móvel de minímas(MAL) e da média móvel lenta(MAT), temos uma venda. Sempre entrando no primeiro candle vermelho.
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REVERSÃO
Este indicador nos mostra reversão de uma tendência, ele consiste de 3 etapas.
• Quando o candle fecha fora da bollinger bands(BB reversal), não temos uma direção definida, aguardamos.
• Quando o candle volta a fechar dentro das boolinger bands(BB reversal), a candle fica colorida, azul indica uma possível compra e rosa uma possível venda.
• Para filtrar as operações, entramos 50 pips ou pontos abaixo do fechamento do candle rosa, ou 50 pips ou pontos acima do fechamento do candle azul.
Uber REX Oscillator [UTS]The Rex Oscillator measures market behavior based on the relationship of the close to the open, high and low values of the same bar. A big difference between the high and close on a bar indicates weakness, and wide disparity between the low and close indicates strength. The difference between open and close also indicates market performance.
When the Rex Oscillator turns positive in a bearish trend, a reversal is indicated. Likewise, Rex turning negative in a bull market indicates a reversal to the downside.
General Usage
The Rex Oscillator is mostly used as a Reversal and Exit indicator.
Signals are created when Rex is crossing the Signal line. They that can be used to EXIT or LONG/SHORT a trade.
It is worth investing the time and fine-tune the settings: e.g. SuperSmoothed 16 and HMA 40 provides decent results.
Moving Averages
16 different Moving Averages are available:
ALMA (Arnaud Legoux Moving Average)
DEMA (Double Exponential Moving Average)
EMA (Exponential Moving Average)
FRAMA (Fractal Adaptive Moving Average)
HMA (Hull Moving Average)
JURIK (Jurik Moving Average)
KAMA (Kaufman Adaptive Moving Average)
Kijun (Kijun-sen / Tenkan-sen of Ichimoku)
LSMA (Least Square Moving Average)
RMA (Running Moving Average)
SMA (Simple Moving Average)
SuperSmoothed (Super Smoothed Moving Average)
TEMA (Triple Exponential Moving Average)
VWMA (Volume Weighted Moving Average)
WMA (Weighted Moving Average)
ZLEMA (Zero Lag Moving Average)
A freely determinable length allows for sensitivity adjustments that fits your own requirements.
Alerts
Traders can easily use the reversal signal to trigger alerts from:
Cross Up
Cross Down
Those values are > zero if a condition is triggered.
Alert condition example: "Cross Up" - "Greater Than" - "0"
Trend Visualization
Optional: If the signal line trend direction is DOWN it is painted red. If the trend direction is UP the signal line is painted in green.
DepthHouse - Trend & Reversal CandlesticksDepth House Trend and Reversal Candlestick Indicato r is a custom trading tool designed to help traders determine trend direction, and possible trend reversal points.
Here is a video which I give a brief overview and show it in action:
youtu.be
How it works:
Based on the default settings, there are 5 primary colors that each have their own possible signal.
The colors are:
Green - Trending upwards
Red – Trending downwards
Lime –Trending upwards with a chance of reversal
Orange – Trending downwards with a chance of reversal
Grey – General trend is unknown
Please Note: There are NOT trading signals. Each colored candle represents nothing other than a possibility of which way the trend may go. Be sure to use your own adequate analysis. Use at your own financial risk.
How to get:
As you can see this is an invite only script. In the coming months this indicator, along with many others will become pay to use only. (website on my profile page)
However all my indicators will be FREE until May 1, 2018 . So please try them out!
To take advantage of this FREE trial:
1. Subscribe to my YouTube channel. I have many more videos to come! Maybe even leave a comment of what you would like to see next!
2. Comment on this indicator post! Maybe even give me a follow :D
I hope you all enjoy!!
Indicator website: depthhouse.com
