Xtrender and TSI FusionXtrender and TSI Fusion Indicator
I created this indicator for myself. I was inspired by the indicators created by Bjorgum, Duyck and QuantTherapy and decided to create multiple indicators that either work well combined with their indicators or something new that applies some of their indicator concepts. I decided to share all of the indicator I have created because I believe in learning and earing together as a community. If you guys have any questions or suggestions write them.
Overview: The Xtrender and TSI Fusion Indicator is a powerful tool designed to help traders analyze market momentum, trends, and potential reversals. By combining Xtrender with the True Strength Index (TSI), this indicator provides a comprehensive view of market dynamics, making it easier to identify trading opportunities.
Image: Timeframe is set to daily
Features:
1.Xtrender Analysis:
Short-Term Xtrender: Visualizes short-term momentum using RSI-based calculations on EMA differences. This helps in identifying immediate market trends and pullbacks.
Image above: showcases Short-Term Xtrender
Xtrender T3: A smoothed version of the Xtrender that reduces noise and highlights significant trend changes.
Image above: showcases Xtrender T3 with Xtrender T3 color
2.TSI (True Strength Index):
TSI Value: Measures momentum by comparing price changes over two time periods, offering a clear view of trend strength.
TSI Signal Line: A smoothed version of the TSI value, used to generate buy and sell signals when crossed by the TSI.
Image: showcases TSI Value with TSI Signal Line
TSI Histogram: Shows the difference between the TSI and its signal line, highlighting potential reversals and trend continuations.
Image: showcases TSI Histogram
3.Color Coding and Visual Cues:
Trend Colors: The indicator uses dynamic colors to represent bullish or bearish conditions, making it easy to interpret market sentiment.
Background Color : The background changes color based on TSI signals, further aiding in visual trend analysis.
Image: showcases Background color and Zero line
How to Use
1.Xtrender Analysis:
Short-Term Xtrender: The short-term Xtrender is plotted as columns, changing color based on its direction and value. Green or lime indicates positive momentum, while red or maroon indicates negative momentum.
Xtrender T3: The Xtrender T3 line (black) represents a smoothed version of the short-term Xtrender, providing a clearer picture of the overall trend. The color of this line changes based on the Xtrender's value, helping you spot potential trend changes.
2.TSI (True Strength Index):
TSI Value and Signal Line: The TSI value is plotted as a line, with its color changing based on its relationship to the signal line. A crossover of the TSI above the signal line suggests a potential bullish move, while a crossover below indicates a bearish trend.
TSI Histogram: The histogram represents the difference between the TSI and its signal line. Positive values indicate bullish momentum, while negative values suggest bearish momentum.
3.Background Color:
The background color changes based on the TSI signal, with a greenish hue indicating bullish conditions and a reddish hue indicating bearish conditions. This provides a quick visual reference for market sentiment.
4.Zero Line:
A horizontal gray dotted line at the zero level helps you easily identify when the Xtrender or TSI crosses into positive or negative territory, signaling potential trend shifts.
Image above: Timeframe on daily with the individual elements combined
Example of Use:
•Trend Confirmation: Use the Xtrender and Xtrender T3 to confirm the direction of the trend. If both are aligned with the same color and direction, it increases the probability of a strong trend.
•Momentum Reversals: Watch for TSI crosses and histogram shifts to identify potential reversals. For example, a TSI crossover above its signal line with a corresponding change in the histogram from negative to positive could signal a buying opportunity.
•Pullbacks: Identify pullbacks within a trend by observing temporary shifts in the short-term Xtrender or TSI histogram. Use these signals to enter trades in the direction of the overall trend.
Image above: Showcases, Trend confirmation, reversal and pullbacks on daily timeframe.
Customization:
•TSI Speed: Choose between "Fast" and "Slow" TSI settings based on your trading style. Fast settings are more responsive to price changes, while slow settings offer smoother signals.
•Color Settings: Customize the colors for bullish, bearish, and neutral TSI conditions to match your personal preferences or chart theme.
This indicator is versatile and can be used for various trading strategies, from trend following to momentum trading, making it a valuable tool in any trader's arsenal.
My Scripts/Indicators/Ideas /Systems that I share are only for educational purposes
Komut dosyalarını "reversal" için ara
Trend and RSI Bias FusionTrend and RSI Bias Fusion Indicator
This is my first ever indicator. I created this indicator for myself. I was inspired by the indicators created by Bjorgum, Duyck and QuantTherapy and decided to create multiple indicators that either work well combined with their indicators or something new that applies some of their indicator concepts. I decided to share this because I believe in learning and earing together as a community. I will later share the rest of the indicators I have created. This is my first time ever sharing any indicator so if you guys have any questions or suggestions write them.
Overview
The "Trend and RSI Bias Fusion" indicator is a versatile tool designed to help traders identify key market trends, potential reversals, momentum shifts, and RSI-based pullbacks. This indicator fuses trend analysis and RSI bias into a single, comprehensive visual, making it easier to make informed trading decisions across various timeframes and market conditions.
Features
Dual Timeframe Analysis: Combines trend analysis on a higher timeframe (e.g., Daily) with RSI analysis on a lower timeframe (e.g., 4-Hour), providing a more granular view of market conditions. You can, however, choose any timeframe you want for instance 12hr with trend and 2hr RSI analysis.
Trend and Momentum Visualization: The indicator uses Exponential Moving Averages (EMAs) to determine trend direction and colors the chart background to reflect bullish or bearish trends, along with momentum strength.
RSI Bias Detection: Automatically identifies overbought and oversold conditions using the RSI, providing a clear indication of potential market reversals or continuations.
Color-Coded Bars: Optionally color codes bars based on either trend direction or RSI bias, giving you a quick visual cue of the market's state.
Reversal Markers: Displays trend reversal markers on the chart when the short-term EMA crosses over or under the long-term EMA.
Calculation Details
Exponential Moving Averages (EMAs): The indicator calculates short-term and long-term EMAs using the closing prices.
The crossover between these EMAs is used to determine the trend direction:
Short-Term EMA: Typically a 14-period EMA.
Long-Term EMA: Typically a 50-period EMA.
Momentum: Calculated using the RSI and then centered around zero by subtracting 50. This allows the indicator to distinguish between positive and negative momentum.
RSI Bias: The RSI is calculated on a lower timeframe to detect overbought (above 60) and oversold (below 40) conditions, which are used to determine the bias:
RSI Above 60: Indicates potential overbought conditions (bearish bias).
RSI Below 40: Indicates potential oversold conditions (bullish bias).
How to Use the Indicator
Select Your Timeframes: Choose your preferred trend timeframe (e.g., Daily) and RSI timeframe (e.g., 4-2 Hour) in the indicator settings. These should match your trading strategy and the asset class you're analyzing.
Interpret Trend and Momentum
Background Color: The background color reflects the current trend direction:
Green/Lime: Uptrend, with lime indicating positive momentum.
Red/Maroon: Downtrend, with maroon indicating positive momentum within a downtrend.
Momentum Histogram: The histogram plot shows momentum, color-coded by the trend. A histogram above zero with green/lime indicates bullish momentum, while below zero with red/maroon indicates bearish momentum.
Image above: Both RSI and Trend are set to daily, uses RSI bar color
Read RSI Bias:
The RSI bias line helps identify the current market state relative to overbought or oversold levels. The RSI value is plotted on the chart, with lines at 60 and 40 to mark these levels.
When the RSI crosses above 60, it suggests a bearish bias; crossing below 40 suggests a bullish bias.
Use Reversal Markers: The indicator places small circles on the chart at points where the short-term EMA crosses the long-term EMA, signaling potential trend reversals.
Bar Color Customization:
You can choose to color the bars based on either the trend or the RSI bias in the indicator settings. In the Images below I have changed the colors to fit my personal style , Blue for uptrend and Pink for downtrend:
Trend-Based: Bars will reflect the trend direction (green for uptrend or in this case blue, red for downtrend or in this case pink).
RSI-Based: Bars will reflect RSI conditions (yellow for overbought, maroon for oversold).
Image above: RSI is set to 4hr and Trend is set to daily, uses RSI bar color
Image above: RSI is set to 4hr and Trend is set to daily, uses Trend bar color
Image above: Both RSI and Trend are set to daily, uses RSI bar color
Image above: Both RSI and Trend are set to daily, uses Trend bar color
Image above: Both RSI and Trend are set to daily, without bar color
Image above: Both RSI and Trend are set to daily, how it looks on a clean chart
Example Use Case Swing Traders:
For instance, if you're trading a 4-hour chart of USDCHF:
Set the trend timeframe to Daily and the RSI timeframe to 4-Hour.
Watch for background color shifts and reversal markers to determine trend direction.
Use RSI bias to time your entries and exits, especially around overbought/oversold levels.
Enable bar coloring to quickly see when conditions favor either trend continuation or reversal.
This indicator is particularly effective for swing traders and those who want to align their trades with higher timeframe trends while using momentum and RSI for entry and exit signals.
For Day Traders
Timeframe Selection:
Trend Timeframe: Set to a higher intraday timeframe such as the 1 or 2 Hour chart.
RSI Timeframe: Set to a shorter timeframe like 15-10 Minutes or 5-Minutes to capture finer details of intraday momentum shifts.
Using the Indicator:
Trend Identification: Day traders can use the background color to quickly identify whether the market is in a bullish or bearish trend on the 1-Hour chart. A green background suggests looking for long opportunities, while a red background suggests short opportunities.
Momentum Analysis: The histogram can help day traders gauge the strength of the current trend. For example, if the histogram is green and above zero, the trader may consider buying pullbacks within the trend.
RSI Bias: Monitor RSI levels on the lower timeframe (e.g., 15-Minutes). If the RSI crosses below 40, it indicates an oversold condition, potentially signaling a buying opportunity, especially if it aligns with a bullish trend on the higher timeframe.
Trade Execution:
Look for entries when the RSI shows a reversal or pullback in the direction of the higher timeframe trend.
Use the trend reversal markers to confirm potential intraday reversals, adding extra confidence to trade setups.
For Scalpers
Timeframe Selection:
Trend Timeframe: Set to a short intraday timeframe like 15-Minutes or 5-Minutes.
RSI Timeframe: Use an even shorter timeframe, such as 1-Minute, to capture rapid price movements.
Final Notes:
The "Trend and RSI Bias Fusion" indicator is a powerful tool that combines trend analysis, momentum assessment, and RSI insights into one cohesive package. By integrating these different aspects, the indicator helps traders navigate complex market environments with greater clarity and confidence. Customize the settings to fit your specific trading style and market and use it to stay ahead of market trends and potential reversals.
My Scripts/Indicators/Ideas /Systems that I share are only for educational purposes!
MFX Ultimate Scalper [Mohs Mayfair]MFX Ultimate Scalper is an all-in-one indicator that incorporates 5+ unique components designed for interoperability & confluence with one another to provide a powerful trend following & reversal detection experience.
Users can create various ways to utilize the indicator's features together such as looking for periods of price exhaustion in the market alongside strong reversal signals appearing or getting real-time divergence signals alongside a shift in volume with the volume overlay setting in the market to predict upcoming trends.
The indicator's confirmation feature integrates customizable moving averages and the Volume Weighted Average Price (VWAP), providing additional layers of insight. Traders can fine-tune moving averages to track trend reversals and retracements with precision, while the VWAP offers valuable insights into price and volume dynamics, aiding in the assessment of market sentiment and trends.
This indicator is described as an ”Ultimate Scalper” as it's made up of many different components that can create a systematic approach to analyzing markets alone, however, the indicator also can serve as a great secondary piece to a user's primary analysis.
⨭ FEATURES
Below we describe each component of MFX Ultimate Scalper in order of each's significance for the most confluent analysis possible.
➟ Heat Zones - indicating the relative intensity of price movement, with widening zones suggesting increased volatility and potential trading opportunities.
➟ Exhaustion Signals - Small triangles on the upper or lower heat band zones represent high frequency points that indicate possible reversals or a warning signal to upcoming larger reversal signals. Discerning instances of heightened buying or selling pressure, delineating zones of market saturation and depletion using the historical strength or weakness of a stock or market based on the closing prices of a recent trading period.
➟ Reversal Signals - Kalman filter and Hull trend indicators can reveal trend reversals by dynamically adapting to market conditions and providing timely signals based on smoothed price movements.
➟ Volume Overlay - Upon calculating the relative close of candles, this option allows a coloured overlay upon candles to help confirm volume changes in the market. When price of a closed candle is greater than then open price, the bar will print with a green overlay,
Generally, we recommend using these features in order from first to last, however it is always most productive to ensure you find further confluence alongside any signal that is generated using general market structure and analysis (such as drawing independent supply and demand zones for eg).
⨭ USAGE GUIDE
In the images below, we can see 3 points of interest to a user analyzing MFX Ultimate Scalper based on various different behaviors.
In the circled areas of interest price moves into a one of the heat zones and begins to print a small green or red triangle either above or below the candlestick structure - green = looking for buys and a possible bullish reversal & red = looking for sells and a possible bearish reversal.
As price begins to print these pre reversal points of exhaustion within these heat zones we can begin looking at the market.
This can be used independently or when wanting to perhaps increase the amount of confirmations we can look to apply the reversal confirmation setting, as per below:
What makes this signal particularly more of interest opposed to other reversal signals without the confirmation toggle applied that may not play out right away is the Kalman filter and Hull trend indicator begins to show a clear trend reversal. We can see that it may print the BUY or SELL label a few candles after the initial Small triangles in the upper or lower heat band zones however can be used as a more conservative point of trade entry.
This is a great example above showing how the momentum indicator that measures the magnitude of recent price changes to analyze overbought or oversold conditions (red and green triangles in the heat zone bands) can sometimes print multiple entries. We suggest that if you are looking to increase the accuracy of the signals we found moving to a higher time frame after more than 3 of these indicators have printed, helps.
It is a great indication that price may be looking to reverse and the pressure occurring and that the market could easily reverse in these conditions.
The candles that follow with the confirmation toggle setting means that you could move into a position a little later into the new trend reversal or retracement but also ensures that there is an extra level of confirmation that one is beginning or has begun.
The volume overlay setting is a fantastic tool to use when wanting to confirm your entries for trade and print a clear example in volume shift in the market - the greater the green candle, the greater the buying momentum. The greater the red candle, the greater the selling momentum,
This analysis combined gave us a further indication of a larger reversal which played out with no lag at all as all reversal signals are predictive separate from the Volume Overlay itself, which can be used as a further trend following approach alongside signals & custom hull trend alongside specific moving average confirmations.
In the image above we can see 3 possible setups and 3 different ways each using individual options.
Working left to right, the first setup adheres to:
➟PRICE IN THE BUY ZONE
➟GREEN BUY TRIANGLE REVERSAL
➟GREEN CANDLE VOLUME CHANGE
➟NO BLUE TREND LABEL CONFIRMATION
When scalping a position using the above signals we would aim for 10-15 pips which we can see here, with no drawdown was able to close and hit our suggested take profit within approximately an hour even though the confirmation trend reversal did not print on the chart
Setup two is another BUY signal and adheres to:
➟PRICE IN THE BUY ZONE
➟GREEN BUY TRIANGLE PRINTED
➟BLUE CONFIRMATION PRINTED
➟WAIT FOR THE NEXT CANDLE TO CLOSE
➟TAKE A BUY
This time we have a clear price exhaustion with the candles closing within the heat zones, just the first buy zone. The confirmation reversal trend prints soon after and although we do not have any confirmation on the volume change overlay we can infer that given they were printed very shortly prior to this confirmation and the preliminary Scalpers green triangles had also shown, the trade confirmation is still valid.
You could perhaps place your stop loss at the base of the reversal blue buy label and then set a 1:2 ratio or perhaps simply stick to the 10-15 pips.
With our final example the confirmations are:
➟PRICE IN THE SELL ZONE
➟RED SELL TRIANGLE REVERSAL
➟THE RED TREND CONFIRMATION LABEL
WAS TOO MANY CANDLES AWAY
TO CONSIDER THE TRADE
The volume indicator printing over an engulfing bearish candle whilst also being within our heat zone exhaustion sell area shows a shift in volume and momentum - as calculated, the open price of the candle is greater than that of the closed previous one thus showing RED overlay of the candle.
In order to better experience the volume overlay option we suggest changing your settings on tradingview by clicking the chart screen settings > symbol and changing the body and wicks of the candlesticks to grey.
We can potentially determine at certain points when to 'filter out' reversal signals or to just consider them merely indications of local tops/bottoms opposed to significant tops/bottoms.
Analyzing the reversal confirmation option is useful to consider a trend potentially coming to an end. We recommend studying the outlined chart above & the list of indications at each shaded area to develop a deep understanding of how to navigate varying market conditions & spot various points of confluence during reversals.
⨭CONCLUSION & ACCESS
This indicator is an extremely comprehensive approach to a variety of volume and volatility based tools predominantly that allows users to further develop a systematic approach to trading and can be paired alongside other forms of technical analysis.
Although we believe this indicator to be useful, it's critical to understand that past performance is not necessarily indicative of future results and there are many more factors that go into being a profitable trader.
You can see the Author's instructions below to get instant access to MFX Ultimate Scalper by Mohs Mayfair
TMA Bands with Break Arrow @ClearTradingMind
The "TMA Bands with Break Arrow" indicator, developed by ClearTradingMind, is designed to provide traders with insights into potential trend reversals based on the movement of price within a channel defined by the Triangular Moving Average (TMA) and its bands. The TMA is a smoothed moving average, and this indicator adds upper and lower bands to visualize potential breakouts.
Key Components:
1. TMA Bands: The indicator plots the upper and lower bands of the TMA channel. These bands represent potential overbought (upper band) and oversold (lower band) conditions.
2. Break Arrows: The indicator generates buy (green triangle up) and sell (red triangle down) arrows when the closing price breaks above the upper band or below the lower band, indicating a potential trend reversal.
3. Background Color: The background color dynamically changes based on the last generated signal. A blue background suggests a recent buy signal, while a red background indicates a recent sell signal. This provides a quick visual reference for the prevailing market sentiment.
Usage:
1. Trend Reversals: Traders can use the buy and sell arrows as signals for potential trend reversals. A buy signal suggests a possible upward trend, while a sell signal suggests a potential downward trend.
2. Channel Breakouts: Watch for price breaking above the upper band (buy signal) or below the lower band (sell signal). These breakouts may indicate the start of a new trend.
3. Volatility Analysis: The width of the TMA channel represents volatility. A widening channel suggests increased volatility, while a narrowing channel suggests decreasing volatility.
4. Background Color: The background color provides additional context. A blue background indicates recent bullish sentiment, while a red background suggests recent bearish sentiment.
Parameters:
- TMA Period: The number of bars used to calculate the Triangular Moving Average.
- ATR Period: The number of bars used to calculate the Average True Range (ATR) for determining the width of the TMA channel.
- ATR Multiplier: A multiplier applied to the ATR to determine the width of the TMA channel.
Note: This indicator is a tool to assist traders in their analysis, and it is recommended to use it in conjunction with other technical and fundamental analysis methods for more comprehensive decision-making.
Disclaimer: Trading involves risk, and this indicator does not guarantee profit. Users should conduct thorough analysis and risk management before making trading decisions.
SMT SwiftEdge PowerhouseSMT SwiftEdge Powerhouse: Precision Trading with Divergence, Liquidity Grabs, and OTE Zones
The SMT SwiftEdge Powerhouse is a powerful trading tool designed to help traders identify high-probability entry points during the most active market sessions—London and New York. By combining Smart Money Technique (SMT) Divergence, Liquidity Grabs, and Optimal Trade Entry (OTE) Zones, this script provides a unique and cohesive strategy for capturing market reversals with precision. Whether you're a scalper or a swing trader, this indicator offers clear visual signals to enhance your trading decisions on any timeframe.
What Does This Script Do?
This script integrates three key concepts to identify potential trading opportunities:
SMT Divergence:
SMT Divergence compares the price action of two correlated assets (e.g., Nasdaq and S&P 500 futures) to detect hidden market reversals. When one asset makes a higher high while the other makes a lower high (bearish divergence), or one makes a lower low while the other makes a higher low (bullish divergence), it signals a potential reversal. This technique leverages institutional "smart money" behavior to anticipate market shifts.
Liquidity Grabs:
Liquidity Grabs occur when price breaks above recent highs or below recent lows on higher timeframes (5m and 15m), often triggering stop-loss orders from retail traders. These breakouts are identified using pivot points and confirm institutional activity, setting the stage for a reversal. The script focuses on liquidity grabs during the London and New York sessions for maximum market activity.
Optimal Trade Entry (OTE) Zones:
OTE Zones are Fibonacci-based retracement areas (e.g., 61.8%) calculated after a liquidity grab. These zones highlight where price is likely to retrace before continuing in the direction of the reversal, offering a high-probability entry point. The script adjusts the width of these zones using the Average True Range (ATR) to adapt to market volatility.
By combining these components, the script identifies when institutional activity (liquidity grabs) aligns with market reversals (SMT divergence) and pinpoints precise entry points (OTE zones) during high-liquidity sessions.
Why Combine These Components?
The integration of SMT Divergence, Liquidity Grabs, and OTE Zones creates a robust trading system for several reasons:
Synergy of Institutional Signals: SMT Divergence and Liquidity Grabs both reflect "smart money" behavior—divergence shows hidden reversals, while liquidity grabs confirm institutional intent to trap retail traders. Together, they provide a strong foundation for identifying high-probability setups.
Session-Based Precision: Focusing on the London and New York sessions ensures signals occur during periods of high volatility and liquidity, increasing their reliability.
Precision Entries with OTE: After confirming a setup with divergence and liquidity grabs, OTE zones provide a clear entry area, reducing guesswork and improving trade accuracy.
Adaptability: The script works on any timeframe, with adjustable settings for signal sensitivity, session times, and Fibonacci levels, making it versatile for different trading styles.
This combination makes the script unique by aligning institutional insights with actionable entry points, tailored to the most active market hours.
How to Use the Script
Setup:
Add the script to your chart (works on any timeframe, e.g., 1m, 5m, 15m).
Configure the settings in the indicator's inputs:
Session Settings: Adjust the start/end times for London and New York sessions (default: London 8-11 UTC, New York 13-16 UTC). You can disable session restrictions if desired.
Asset Settings: Set the primary and secondary assets for SMT Divergence (default: NQ1! and ES1!). Ensure the assets are correlated.
Signal Settings: Adjust the lookback period, ATR period, and signal sensitivity (Low/Medium/High) to control the frequency of signals.
OTE Settings: Choose the Fibonacci level for OTE zones (default: 61.8%).
Visual Settings: Enable/disable OTE zones, SMT labels, and debug labels for troubleshooting.
Interpreting Signals:
Blue Circles: Indicate a liquidity grab (price breaking a 5m or 15m pivot high/low), marking the start of a potential setup.
Blue OTE Zones: Appear after a liquidity grab, showing the retracement area (e.g., 61.8% Fibonacci level) where price is likely to enter for a reversal trade. The label "OTE Trigger 5m/15m" confirms the direction (Short/Long) and session.
Green/Red Entry Boxes: Mark precise entry points when price enters the OTE zone and confirms the SMT Divergence. Green boxes indicate a long entry, red boxes a short entry.
Trading Example:
On a 1m chart, a blue circle appears when price breaks a 5m pivot high during the London session.
A blue OTE zone forms, showing a retracement area (e.g., 61.8% Fibonacci level) with the label "OTE Trigger 5m/15m (Short, London)".
Price retraces into the OTE zone, and a red "Short Entry" box appears, confirming a bearish SMT Divergence.
Enter a short trade at the red box, with a stop-loss above the OTE zone and a take-profit at the next support level.
Originality and Utility
The SMT SwiftEdge Powerhouse stands out by merging SMT Divergence, Liquidity Grabs, and OTE Zones into a single, session-focused indicator. Unlike traditional indicators that focus on one aspect of price action, this script combines institutional reversal signals with precise entry zones, tailored to the most active market hours. Its adaptability across timeframes, customizable settings, and clear visual cues make it a versatile tool for traders seeking to capitalize on smart money movements with confidence.
Tips for Best Results
Use on correlated assets like NQ1! (Nasdaq futures) and ES1! (S&P 500 futures) for accurate SMT Divergence.
Test on lower timeframes (1m, 5m) for scalping or higher timeframes (15m, 1H) for swing trading.
Adjust the "Signal Sensitivity" to "High" for more signals or "Low" for fewer, high-quality setups.
Enable "Show Debug Labels" if signals are not appearing as expected, to troubleshoot pivot points and liquidity grabs.
Dskyz (DAFE) Aurora Divergence - Dskyz (DAFE) Aurora Divergence Indicator
Advanced Divergence Detection for Traders. Unleash the power of divergence trading with this cutting-edge indicator that combines price and volume analysis to spot high-probability reversal signals.
🧠 What Is It?
The Dskyz (DAFE) Aurora Divergence Indicator is designed to identify bullish and bearish divergences between the price trend and the On Balance Volume (OBV) trend. Divergence occurs when the price of an asset and a technical indicator (in this case, OBV) move in opposite directions, signaling a potential reversal. This indicator uses linear regression slopes to calculate the trends of both price and OBV over a specified lookback period, detecting when these two metrics are diverging. When a divergence is detected, it highlights potential reversal points with visually striking aurora bands, orbs, and labels, making it easy for traders to spot key signals.
⚙️ Inputs & How to Use Them
The indicator is highly customizable, with inputs grouped under "⚡ DAFE Aurora Settings" for clarity. Here’s how each input works:
Lookback Period: Determines how many bars are used to calculate the price and OBV slopes. Higher values detect longer-term trends (e.g., 20 for 1H charts), while lower values are more responsive to short-term movements.
Price Slope Threshold: Sets the minimum slope value for the price to be considered in an uptrend or downtrend. A value of 0 allows all slopes to be considered, while higher values filter for stronger trends.
OBV Slope Threshold: Similar to the price slope threshold but for OBV. Helps filter out weak volume trends.
Aurora Band Width: Adjusts the width of the visual bands that highlight divergence areas. Wider bands make the indicator more visible but may clutter the chart.
Divergence Sensitivity: Scales the strength of the divergence signals. Higher values make the indicator more sensitive to smaller divergences.
Minimum Strength: Filters out weak signals by only showing divergences above this strength level. A default of 0.3 is recommended for beginners.
Signal Cooldown (Bars): Prevents multiple signals from appearing too close together. Default is 5 bars, reducing chart clutter and helping traders focus on significant signals.
These inputs allow traders to fine-tune the indicator to match their trading style and timeframe.
🚀 What Makes It Unique?
This indicator stands out with its innovative features:
Price-Volume Divergence: Combines price trend (slope) and OBV trend for more reliable signals than price-only divergences.
Aurora Bands: Dynamic visual bands that highlight divergence zones, making it easier to spot potential reversals at a glance.
Interactive Dashboard: Displays real-time information on trend direction, volume flow, signal type, strength, and recommended actions (e.g., "Consider Buying" or "Consider Selling").
Signal Cooldown: Ensures only the most significant divergences are shown, reducing noise and improving usability.
Alerts: Built-in alerts for both bullish and bearish divergences, allowing traders to stay informed even when not actively monitoring the chart.
Beginner Guide: Explains the indicator’s visuals (e.g., aqua orbs for bullish signals, fuchsia orbs for bearish signals), making it accessible for new users.
🎯 Why It Works
The indicator’s effectiveness lies in its use of price-volume divergence, a well-established concept in technical analysis. When the price trend and OBV trend diverge, it often signals a potential reversal because the underlying volume support (or lack thereof) is not aligning with the price action. For example:
Bullish Divergence: Occurs when the price is making lower lows, but the OBV is making higher lows, indicating weakening selling pressure and potential upward reversal.
Bearish Divergence: Occurs when the price is making higher highs, but the OBV is making lower highs, suggesting weakening buying pressure and potential downward reversal.
The use of linear regression ensures smooth and accurate trend calculations over the specified lookback period. The divergence strength is then normalized and filtered based on user-defined thresholds, ensuring only high-quality signals are displayed. Additionally, the cooldown period prevents signal overload, allowing traders to focus on the most significant opportunities.
🧬 Indicator Recommendation
Best For: Traders looking to identify potential trend reversals in any market, especially those where volume data is reliable (e.g., stocks, futures, forex).
Timeframes: Suitable for all timeframes. Adjust the lookback period accordingly—smaller values for shorter timeframes (e.g., 1H), larger for longer ones (e.g., 4H or daily).
Pair With: Support and resistance levels, trend lines, other oscillators (e.g., RSI, MACD) for confirmation, and volume profile tools for deeper analysis.
Tips:
Look for divergences at key support/resistance levels for higher-probability setups.
Pay attention to signal strength; higher strength divergences are often more reliable.
Use the dashboard to quickly assess market conditions before entering a trade.
Set up alerts to catch divergences even when not actively watching the chart.
🧾 Credit & Acknowledgement
This indicator builds upon the classic concept of price-volume divergence, enhancing it with modern visualization techniques, advanced filtering, and user-friendly features. It is designed to provide traders with a powerful yet intuitive tool for spotting reversals.
📌 Final Thoughts
The Dskyz (DAFE) Aurora Divergence Indicator is more than just a divergence tool; it’s a comprehensive trading assistant that combines advanced calculations, intuitive visualizations, and actionable insights. Whether you’re a seasoned trader or just starting out, this indicator can help you spot high-probability reversal points with confidence.
Use it with discipline. Use it with clarity. Trade smarter.
**I will continue to release incredible strategies and indicators until I turn this into a brand or until someone offers me a contract.
-Dskyz
TMO (True Momentum Oscillator)TMO ((T)rue (M)omentum (O)scilator)
Created by Mobius V01.05.2018 TOS Convert to TV using Claude 3.7 and ChatGPT 03 Mini :
TMO calculates momentum using the delta of price. Giving a much better picture of trend, tend reversals and divergence than momentum oscillators using price.
True Momentum Oscillator (TMO)
The True Momentum Oscillator (TMO) is a momentum-based technical indicator designed to identify trend direction, trend strength, and potential reversal points in the market. It's particularly useful for spotting overbought and oversold conditions, aiding traders in timing their entries and exits.
How it Works:
The TMO calculates market momentum by analyzing recent price action:
Momentum Calculation:
For a user-defined length (e.g., 14 bars), TMO compares the current closing price to past open prices. It assigns:
+1 if the current close is greater than the open price of the past bar (indicating bullish momentum).
-1 if it's less (indicating bearish momentum).
0 if there's no change.
The sum of these scores gives a raw momentum measure.
EMA Smoothing:
To reduce noise and false signals, this raw momentum is smoothed using Exponential Moving Averages (EMAs):
First, the raw data is smoothed by an EMA over a short calculation period (default: 5).
Then, it undergoes additional smoothing through another EMA (default: 3 bars), creating the primary "Main" line of the indicator.
Lastly, a "Signal" line is derived by applying another EMA (also default: 3 bars) to the main line, adding further refinement.
Trend Identification:
The indicator plots two lines:
Main Line: Indicates current momentum strength and direction.
Signal Line: Acts as a reference line, similar to a moving average crossover system.
When the Main line crosses above the Signal line, it suggests strengthening bullish momentum. Conversely, when the Main line crosses below the Signal line, it indicates increasing bearish momentum.
Overbought/Oversold Levels:
The indicator identifies key levels based on the chosen length parameter:
Overbought zone (positive threshold): Suggests the market might be overheated, and a potential bearish reversal or pullback could occur.
Oversold zone (negative threshold): Suggests the market might be excessively bearish, signaling a potential bullish reversal.
Clouds visually mark these overbought/oversold areas, making it easy to see potential reversal zones.
Trading Applications:
Trend-following: Traders can enter positions based on crossovers of the Main and Signal lines.
Reversals: The overbought and oversold areas highlight high-probability reversal points.
Momentum confirmation: Use TMO to confirm price action or other technical signals, improving trade accuracy and timing.
The True Momentum Oscillator provides clarity in identifying momentum shifts, making it a valuable addition to various trading strategies.
Uptrick: Volatility Reversion BandsUptrick: Volatility Reversion Bands is an indicator designed to help traders identify potential reversal points in the market by combining volatility and momentum analysis within one comprehensive framework. It calculates dynamic bands around a simple moving average and issues signals when price interacts with these bands. Below is a fully expanded description, structured in multiple sections, detailing originality, usefulness, uniqueness, and the purpose behind blending standard deviation-based and ATR-based concepts. All references to code have been removed to focus on the written explanation only.
Section 1: Overview
Uptrick: Volatility Reversion Bands centers on a moving average around which various bands are constructed. These bands respond to changes in price volatility and can help gauge potential overbought or oversold conditions. Signals occur when the price moves beyond certain thresholds, which may imply a reversal or significant momentum shift.
Section 2: Originality, Usefulness, Uniqness, Purpose
This indicator merges two distinct volatility measurements—Bollinger Bands and ATR—into one cohesive system. Bollinger Bands use standard deviation around a moving average, offering a baseline for what is statistically “normal” price movement relative to a recent mean. When price hovers near the upper band, it may indicate overbought conditions, whereas price near the lower band suggests oversold conditions. This straightforward construction often proves invaluable in moderate-volatility settings, as it pinpoints likely turning points and gauges a market’s typical trading range.
Yet Bollinger Bands alone can falter in conditions marked by abrupt volatility spikes or sudden gaps that deviate from recent norms. Intraday news, earnings releases, or macroeconomic data can alter market behavior so swiftly that standard-deviation bands do not keep pace. This is where ATR (Average True Range) adds an important layer. ATR tracks recent highs, lows, and potential gaps to produce a dynamic gauge of how much price is truly moving from bar to bar. In quieter times, ATR contracts, reflecting subdued market activity. In fast-moving markets, ATR expands, exposing heightened volatility on each new bar.
By overlaying Bollinger Bands and ATR-based calculations, the indicator achieves a broader situational awareness. Bollinger Bands excel at highlighting relative overbought or oversold areas tied to an established average. ATR simultaneously scales up or down based on real-time market swings, signaling whether conditions are calm or turbulent. When combined, this means a price that barely crosses the Bollinger Band but also triggers a high ATR-based threshold is likely experiencing a volatility surge that goes beyond typical market fluctuations. Conversely, a price breach of a Bollinger Band when ATR remains low may still warrant attention, but not necessarily the same urgency as in a high-volatility regime.
The resulting synergy offers balanced, context-rich signals. In a strong trend, the ATR layer helps confirm whether an apparent price breakout really has momentum or if it is just a temporary spike. In a range-bound market, standard deviation-based Bollinger Bands define normal price extremes, while ATR-based extensions highlight whether a breakout attempt has genuine force behind it. Traders gain clarity on when a move is both statistically unusual and accompanied by real volatility expansion, thus carrying a higher probability of a directional follow-through or eventual reversion.
Practical advantages emerge across timeframes. Scalpers in fast-paced markets appreciate how ATR-based thresholds update rapidly, revealing if a sudden price push is routine or exceptional. Swing traders can rely on both indicators to filter out false signals in stable conditions or identify truly notable moves. By calibrating to changes in volatility, the merged system adapts naturally whether the market is trending, ranging, or transitioning between these phases.
In summary, combining Bollinger Bands (for a static sense of standard-deviation-based overbought/oversold zones) with ATR (for a dynamic read on current volatility) yields an adaptive, intuitive indicator. Traders can better distinguish fleeting noise from meaningful expansions, enabling more informed entries, exits, and risk management. Instead of relying on a single yardstick for all market conditions, this fusion provides a layered perspective, encouraging traders to interpret price moves in the broader context of changing volatility.
Section 3: Why Bollinger Bands and ATR are combined
Bollinger Bands provide a static snapshot of volatility by computing a standard deviation range above and below a central average. ATR, on the other hand, adapts in real time to expansions or contractions in market volatility. When combined, these measures offset each other’s limitations: Bollinger Bands add structure (overbought and oversold references), and ATR ensures responsiveness to rapid price shifts. This synergy helps reduce noisy signals, particularly during sudden market turbulence or extended consolidations.
Section 4: User Inputs
Traders can adjust several parameters to suit their preferences and strategies. These typically include:
1. Lookback length for calculating the moving average and standard deviation.
2. Multipliers to control the width of Bollinger Bands.
3. An ATR multiplier to set the distance for additional reversal bands.
4. An option to display weaker signals when the price merely approaches but does not cross the outer bands.
Section 5: Main Calculations
At the core of this indicator are four important steps:
1. Calculate a basis using a simple moving average.
2. Derive Bollinger Bands by adding and subtracting a product of the standard deviation and a user-defined multiplier.
3. Compute ATR over the same lookback period and multiply it by the selected factor.
4. Combine ATR-based distance with the Bollinger Bands to set the outer reversal bands, which serve as stronger signal thresholds.
Section 6: Signal Generation
The script interprets meaningful reversal points when the price:
1. Crosses below the lower outer band, potentially highlighting oversold conditions where a bullish reversal may occur.
2. Crosses above the upper outer band, potentially indicating overbought conditions where a bearish reversal may develop.
Section 7: Visualization
The indicator provides visual clarity through labeled signals and color-coded references:
1. Distinct colors for upper and lower reversal bands.
2. Markers that appear above or below bars to denote possible buying or selling signals.
3. A gradient bar color scheme indicating a bar’s position between the lower and upper bands, helping traders quickly see if the price is near either extreme.
Section 8: Weak Signals (Optional)
For those preferring early cues, the script can highlight areas where the price nears the outer bands. When weak signals are enabled:
1. Bars closer to the upper reversal zone receive a subtle marker suggesting a less robust, yet still noteworthy, potential selling area.
2. Bars closer to the lower reversal zone receive a subtle marker suggesting a less robust, yet still noteworthy, potential buying area.
Section 9: Simplicity, Effectiveness, and Lower Timeframes
Although combining standard deviation and ATR involves sophisticated volatility concepts, this indicator is visually straightforward. Reversal bands and gradient-colored bars make it easy to see at a glance when price approaches or crosses a threshold. Day traders operating on lower timeframes benefit from such clarity because it helps filter out minor fluctuations and focus on more meaningful signals.
Section 10: Adaptability across Market Phases
Because both the standard deviation (for Bollinger Bands) and ATR adapt to changing volatility, the indicator naturally adjusts to various environments:
1. Trending: The additional ATR-based outer bands help distinguish between temporary pullbacks and deeper reversals.
2. Ranging: Bollinger Bands often remain narrower, identifying smaller reversals, while the outer ATR bands remain relatively close to the main bands.
Section 11: Reduced Noise in High-Volatility Scenarios
By factoring ATR into the band calculations, the script widens or narrows the thresholds during rapid market fluctuations. This reduces the amount of false triggers typically found in indicators that rely solely on fixed calculations, preventing overreactions to abrupt but short-lived price spikes.
Section 12: Incorporation with Other Technical Tools
Many traders combine this indicator with oscillators such as RSI, MACD, or Stochastic, as well as volume metrics. Overbought or oversold signals in momentum oscillators can provide additional confirmation when price reaches the outer bands, while volume spikes may reinforce the significance of a breakout or potential reversal.
Section 13: Risk Management Considerations
All trading strategies carry risk. This indicator, like any tool, can and does produce losing trades if price unexpectedly reverses again or if broader market conditions shift rapidly. Prudent traders employ protective measures:
1. Stop-loss orders or trailing stops.
2. Position sizing that accounts for market volatility.
3. Diversification across different asset classes when possible.
Section 14: Overbought and Oversold Identification
Standard Bollinger Bands highlight regions where price might be overextended relative to its recent average. The extended ATR-based reversal bands serve as secondary lines of defense, identifying moments when price truly stretches beyond typical volatility bounds.
Section 15: Parameter Customization for Different Needs
Users can tailor the script to their unique preferences:
1. Shorter lookback settings yield faster signals but risk more noise.
2. Higher multipliers spread the bands further apart, filtering out small moves but generating fewer signals.
3. Longer lookback periods smooth out market noise, often leading to more stable but less frequent trading cues.
Section 16: Examples of Different Trading Styles
1. Day Traders: Often reduce the length to capture quick price swings.
2. Swing Traders: May use moderate lengths such as 20 to 50 bars.
3. Position Traders: Might opt for significantly longer settings to detect macro-level reversals.
Section 17: Performance Limitations and Reality Check
No technical indicator is free from false signals. Sudden fundamental news events, extreme sentiment changes, or low-liquidity conditions can render signals less reliable. Backtesting and forward-testing remain essential steps to gauge whether the indicator aligns well with a trader’s timeframe, risk tolerance, and instrument of choice.
Section 18: Merging Volatility and Momentum
A critical uniqueness of this indicator lies in how it merges Bollinger Bands (standard deviation-based) with ATR (pure volatility measure). Bollinger Bands provide a relative measure of price extremes, while ATR dynamically reacts to market expansions and contractions. Together, they offer an enhanced perspective on potential market turns, ideally reducing random noise and highlighting moments where price has traveled beyond typical bounds.
Section 19: Purpose of this Merger
The fundamental purpose behind blending standard deviation measures with real-time volatility data is to accommodate different market behaviors. Static standard deviation alone can underreact or overreact in abnormally volatile conditions. ATR alone lacks a baseline reference to normality. By merging them, the indicator aims to provide:
1. A versatile dynamic range for both typical and extreme moves.
2. A filter against frequent whipsaws, especially in choppy environments.
3. A visual framework that novices and experts can interpret rapidly.
Section 20: Summary and Practical Tips
Uptrick: Volatility Reversion Bands offers a powerful tool for traders looking to combine volatility-based signals with momentum-derived reversals. It emphasizes clarity through color-coded bars, defined reversal zones, and optional weak signal markers. While potentially useful across all major timeframes, it demands ongoing risk management, realistic expectations, and careful study of how signals behave under different market conditions. No indicator serves as a crystal ball, so integrating this script into an overall strategy—possibly alongside volume data, fundamentals, or momentum oscillators—often yields the best results.
Disclaimer and Educational Use
This script is intended for educational and informational purposes. It does not constitute financial advice, nor does it guarantee trading success. Sudden economic events, low-liquidity times, and unexpected market behaviors can all undermine technical signals. Traders should use proper testing procedures (backtesting and forward-testing) and maintain disciplined risk management measures.
TechniTrend: CandleMetrics🟦 Overview
The TechniTrend: CandleMetrics Indicator is a powerful tool designed to give traders an in-depth analysis of candlestick structures. This indicator allows users to identify potential reversal points, trend continuations, and other crucial market behaviors by examining key ratios between candle components—such as body, shadow, and overall range—alongside volume conditions. The advanced filtering options offer flexibility for both novice and experienced traders, enabling tailored setups to suit different trading strategies.
🟦 Key Features
🔸Customizable Ratios: Set thresholds for Body-to-Range, Shadow-to-Range, Upper Shadow-to-Range, and Lower Shadow-to-Range ratios.
🔸Volume-Based Filters: Integrate volume conditions to strengthen the reliability of signals.
🔸Flexible Conditions: Choose whether filters should work independently or in combination, allowing for precise pattern identification.
🔸Visual Markers: Mark potential signals with a distinct background color and symbols on the chart.
🔸Alerts: Receive notifications for each selected condition, ensuring you never miss an opportunity.
🟦 How It Works
The CandleMetrics Indicator operates by analyzing the relationship between different components of each candlestick, combined with volume data to determine the strength of signals. Here’s a detailed breakdown of each feature:
🔸 Body to Range Ratio:
This filter compares the size of the candle's body to its total range (from high to low).
Example Setting: If you’re interested in spotting candles with small bodies relative to their total range, you might set the Body-to-Range Ratio to “Less than 0.3.”
🔸 Shadow to Range Ratio:
This examines the combined size of both shadows (upper and lower) relative to the entire candle range.
Example Setting: Use a Shadow-to-Range Ratio set to “More than 0.8” to find candles with significant wick lengths, suggesting market indecision.
🔸 Upper Shadow to Range Ratio:
This filter assesses the proportion of the upper shadow (wick) in relation to the candle’s full range.
Example Setting: “Less than 0.05” can help identify situations where the upper shadow is minimal, indicating strong downward pressure.
🔸 Lower Shadow to Range Ratio:
It measures the lower shadow compared to the entire candle range.
Example Setting: “More than 0.7” is useful for detecting potential rejection patterns at lower prices, hinting at a possible bullish reversal.
🔸 Volume Filter:
Integrates volume data to verify the reliability of each candle pattern.
Example Setting: Apply a Volume Filter Length of 100 with an SMA type to smooth volume data over a longer period, filtering out short-term noise and focusing on significant volume shifts.
🟦 Combining Filters
The indicator offers an option to Combine Filters. When this setting is enabled, all selected conditions must be met simultaneously for a candle to be marked. If disabled, each condition functions independently, allowing more flexibility in detecting diverse patterns.
🟦 Examples & Use Cases
🔸Example 1: Spotting Reversal Opportunities
I used the following configuration to find potential bullish reversals:
Upper Shadow to Range Ratio: “Less than 0.05” – Looking for candles with almost no upper shadow.
Lower Shadow to Range Ratio: “More than 0.7” – Highlighting candles with a significant lower shadow.
Volume Filter Length: 100 with SMA.
This setup effectively highlights candles where price rejection is happening at lower levels, suggesting a potential trend reversal to the upside.
🔸Example 2: Detecting Market Uncertainty
If you want to focus on candles showing market hesitation, try:
Shadow to Range Ratio: “More than 0.85” – Emphasizing long-wick candles that could indicate indecision.
Disable Combine Filters to allow flexibility, marking any candle meeting the above criteria.
🟦 Detailed Explanation of Each Option
Here’s a clear and concise breakdown of each option for a better understanding:
1. Body to Range Ratio
Purpose: This ratio shows how significant the candle's body is compared to its overall range. A smaller body-to-range ratio can indicate a potential reversal if the market appears indecisive.
How to Use: Increase the ratio to filter for stronger trend candles; decrease it to identify reversal or indecision candles.
2. Shadow to Range Ratio
Purpose: This filter captures the size of both shadows relative to the candle's total range. A larger ratio often points to market hesitation, while a smaller ratio suggests a decisive move.
How to Use: Adjust this filter to focus on candles with long wicks (indecision) or short wicks (decisiveness).
3. Upper Shadow to Range Ratio
Purpose: Helps to identify candles with strong downward moves by focusing on the upper wick length. A small upper shadow can imply sellers' dominance.
How to Use: Lower the ratio to detect candles with minimal upward rejection.
4. Lower Shadow to Range Ratio
Purpose: Targets candles with strong buying pressure by analyzing the lower shadow. A larger lower shadow may indicate a bullish reversal.
How to Use: Increase the ratio to spot rejection candles with significant lower shadows.
5. Volume Filter
Purpose: Adds a volume component to verify the validity of each candlestick pattern. Higher-than-average volume often signifies the strength of a move.
How to Use: Adjust the filter length and type to smooth out volume fluctuations based on your trading timeframe.
🟦 Indicator Alerts
Each filter has its own alert configuration, enabling traders to stay updated on market conditions that meet their selected criteria. You can customize alerts to trigger whenever a condition is met, helping to manage trades even when away from the screen.
Sash Trending Suite NEWWhy
The " Sash Trending Suite " (STS) indicator simplifies trading by highlighting market trends and potential reversals. In a world of complex charts and overwhelming data, STS helps traders quickly understand market direction and make informed decisions.
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How and What
STS combines key technical tools into one easy-to-read indicator, directly showing important signals on the chart:
Macro Trend Detection
How : Uses two EMAs (fast and slow) and the ADX to identify strong bullish or bearish trends.
What to Look For :
Bar Colors :
Green Bars : Indicate a strong upward (bullish) trend.
Red Bars : Indicate a strong downward (bearish) trend.
Benefit : Quickly see the overall market direction.
Alpha Track Line
How : An adaptive EMA that acts as a dynamic support or resistance line.
What to Look For :
Line Colors :
Green Line : Price is above the line (bullish momentum).
Red Line : Price is below the line (bearish momentum).
Benefit : Visualize momentum shifts easily.
Reversal Signals
How : Combines RSI with price action to spot potential market reversals.
What to Look For :
"R" Labels :
Turquoise "R" Below Bar : Potential bullish reversal.
Amber "R" Above Bar : Potential bearish reversal.
Benefit : Identify possible turning points for entry or exit.
Micro Trend Detection
How : Uses shorter EMAs to catch minor trend changes.
What to Look For :
Small Circles :
Green Circle Below Bar : Micro bullish signal.
Red Circle Above Bar : Micro bearish signal.
Benefit : Spot short-term trend shifts promptly.
Alerts
How : Built-in alerts notify you of key events.
What to Expect :
Trend Changes : Alerts when a new bullish or bearish trend starts.
Reversals : Alerts for potential bullish or bearish reversals.
Benefit : Stay updated without constantly watching the chart.
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Summary
The "Sash Trending Suite" provides:
Simplified Analysis : One indicator shows trend direction, momentum, reversals, and micro trends.
Clear Visuals : Color-coded bars and symbols make interpretation easy.
Timely Alerts : Know about important market changes instantly.
By focusing on essential signals and displaying them clearly, STS helps traders navigate the market with confidence and simplicity.
Vasyl Ivanov | mTF ExtremumsExtremums Indicator: Multi-Timeframe Highs & Lows Detection
This indicator is designed to help traders easily identify Highs and Lows across multiple timeframes on the same chart, providing a clear view of market extremes at different levels. With up to 5 timeframes supported and customizable settings, the Extremums Indicator offers flexibility and precision for traders looking to spot key reversal points.
Key Features:
Detect Highs and Lows Across 5 Timeframes:
The indicator detects and displays significant highs and lows across up to five different timeframes, allowing traders to monitor multiple levels of price extremes simultaneously.
Customizable Colors for Each Timeframe:
Easily differentiate between highs and lows from various timeframes by assigning a unique color to each timeframe. You can also switch off unnecessary timeframes to declutter your chart and focus only on the most relevant ones.
Adjustable ATR Coefficient for Granularity:
Fine-tune the granularity of the extremums by adjusting the ATR coefficient. This allows traders to control how precise the highs and lows are, making the indicator adaptable to different market conditions and trading styles.
How It Works:
The Extremums Indicator scans price action across multiple timeframes and highlights the most significant highs and lows:
Select up to 5 different timeframes to track highs and lows, which will be displayed on the chart.
Adjust the ATR coefficient to control the level of detail in detecting highs and lows. A higher coefficient will detect fewer, more significant extremums, while a lower coefficient will reveal more frequent ones.
Customize the colors for each timeframe’s extremums, allowing you to easily distinguish between them and spot trends or reversals across different levels.
Use Cases:
Multi-Timeframe Analysis: Detect highs and lows on various timeframes to get a comprehensive view of market structure and make more informed trading decisions.
Trend Reversals: Use extremums to spot potential reversal points in the market across different timeframes, helping with entry and exit timing.
Custom Charting: Adjust the appearance of extremums by changing colors or switching off unnecessary timeframes, keeping your chart organized and visually clear.
Why It’s Unique:
This indicator offers a powerful tool for multi-timeframe analysis, with customizable options that allow traders to adapt the extremums detection to their trading style and market preferences. By combining timeframe-specific extremums with adjustable ATR granularity, it provides a flexible and insightful way to track price extremes and potential reversals.
Ema Z-score | viResearchEma Z-score | viResearch
Conceptual Foundation and Innovation
The "Ema Z-score" indicator introduces a novel method of analyzing price deviations from the mean by combining the Exponential Moving Average (EMA) with a Z-score calculation. The Z-score is a statistical measure that quantifies how far a value deviates from the mean in terms of standard deviations. By applying the Z-score to an EMA, this indicator provides traders with insights into the strength and momentum of price movements relative to a smoothed average. This enables better detection of overbought and oversold conditions, as well as potential trend reversals.
The use of the Z-score helps filter out noise and provides more robust signals by highlighting extreme deviations from the mean, allowing traders to make more informed decisions in both trending and ranging markets.
Technical Composition and Calculation
The "Ema Z-score" script consists of two main components: the Exponential Moving Average (EMA) and the Z-score calculation. The EMA is calculated over a user-defined length, smoothing price movements to provide a clearer trend line. The Z-score is then derived by measuring the deviation of the current EMA value from the mean of the EMA over a lookback period, divided by the standard deviation of the EMA during that same period.
For the Z-score calculation, the script first computes the mean EMA over the lookback period using the ta.ema function. It then calculates the standard deviation of the EMA over the same period using the ta.stdev function. The Z-score is determined by subtracting the mean EMA from the current EMA value and dividing by the standard deviation, producing a normalized measure of deviation from the average.
Features and User Inputs
The "Ema Z-score" script offers several customizable inputs that allow traders to adjust the indicator according to their strategies. The EMA Length controls the smoothing period of the EMA, while the Lookback Period defines how far back the script looks when calculating the mean and standard deviation for the Z-score. Customizable thresholds allow traders to define when the Z-score signals potential uptrends or downtrends, based on their chosen levels of deviation.
Practical Applications
The "Ema Z-score" indicator is designed for traders who want to better understand price deviations from the mean and use those insights to identify potential trading opportunities. This tool is particularly effective for:
Identifying Overbought and Oversold Conditions: The Z-score provides a quantitative measure of how far the price has deviated from the mean, helping traders spot extreme conditions that could lead to reversals. Detecting Trend Reversals: By monitoring when the Z-score crosses certain thresholds, traders can identify potential trend reversals early and adjust their positions accordingly. Confirming Trend Strength: The Z-score can help confirm whether a price move is backed by momentum or is likely to revert to the mean, providing additional context for trade entries and exits.
Advantages and Strategic Value
The "Ema Z-score" script offers a significant advantage by combining the smoothing effect of the EMA with the precision of Z-score analysis. This approach reduces the impact of market noise while highlighting meaningful deviations from the norm. The ability to quantify deviations in terms of standard deviations gives traders a statistical edge in identifying overbought or oversold conditions and potential trend shifts. This makes the "Ema Z-score" an effective tool for both trend-following and contrarian strategies.
Alerts and Visual Cues
The script includes alert conditions to notify traders of key Z-score threshold crossings. The "Ema Z-score Long" alert is triggered when the Z-score exceeds the upper threshold, signaling a potential upward trend. Conversely, the "Ema Z-score Short" alert signals a possible downward trend when the Z-score falls below the lower threshold. Visual cues such as color changes in the bar chart and Z-score plot help traders easily identify these conditions on the chart.
Summary and Usage Tips
The "Ema Z-score | viResearch" indicator offers a unique combination of EMA smoothing and Z-score analysis, giving traders a statistical measure of price deviations and improving their ability to detect overbought or oversold conditions, trend reversals, and trend confirmations. By incorporating this script into your trading strategy, you can better quantify price extremes and make more informed decisions in both volatile and stable markets. Whether you're focused on spotting early reversals or confirming ongoing trends, the "Ema Z-score" provides a reliable and customizable solution.
Note: Backtests are based on past results and are not indicative of future performance.
Tick Range Engulfing Candle Highlighter with Trend ChangeOverview
The "Tick Range Engulfing Candle Highlighter with Trend Change" indicator is designed to identify potential trend reversals by analyzing the size of each candle relative to a customizable tick size. This indicator highlights key moments when the market may shift direction based on an "engulfing" candle pattern, where the current candle's price range is larger than the previous one. By identifying these moments, traders can gain insight into possible trend changes, which could be useful for various trading strategies, including trend-following or reversal-based trading.
Key Concepts
Tick Size:
The indicator uses a user-defined tick size to calculate the price range of each candle. The tick size represents the minimum price movement that the market recognizes, allowing for more precise control over the range calculations.
Engulfing Candle Pattern:
The concept of an "engulfing candle" refers to a scenario where the current candle’s range (high minus low) is larger than the previous candle’s range. This pattern can signal a potential trend reversal, especially when combined with a change in the candle's direction (bullish to bearish or bearish to bullish).
Trend Change Detection:
The indicator specifically looks for situations where a bullish candle is followed by a larger bearish candle (indicating a potential downward trend reversal) or where a bearish candle is followed by a larger bullish candle (indicating a potential upward trend reversal).
The trend change is validated by comparing the tick range of the current and previous candles, ensuring that the current range is larger, which adds significance to the reversal signal.
How the Indicator Works
Input and Calculation:
Users start by setting the tick size through the indicator’s input. The script then calculates the tick range for the current and previous candles by dividing the difference between the high and low prices by the specified tick size.
Candle Direction Analysis:
The indicator assesses whether each candle is bullish (closing price higher than the opening price) or bearish (closing price lower than the opening price).
Engulfing and Trend Reversal Detection:
The script checks for an engulfing pattern combined with a change in the candle's direction:
Bullish to Bearish Change: Detected when a bullish candle is followed by a larger bearish candle.
Bearish to Bullish Change: Detected when a bearish candle is followed by a larger bullish candle.
Visual Cues:
When the conditions for a trend change are met, the indicator plots visual signals on the chart:
A red downward arrow below the candle indicates a potential bearish reversal.
A green upward arrow above the candle indicates a potential bullish reversal.
How to Use This Indicator
Customization:
Adjust the tick size to match the asset’s characteristics or your trading preferences. A smaller tick size will result in more sensitive detection, while a larger tick size will smooth out minor fluctuations.
Trade Confirmation:
This indicator can be used as a confirmation tool for other trend-following or reversal strategies. It’s particularly useful for traders looking to identify early signs of trend reversals.
Strategy Integration:
Consider integrating this indicator with other technical analysis tools such as moving averages, RSI, or support/resistance levels to build a more comprehensive trading strategy.
Underlying Concepts
The core idea behind this indicator is the principle of engulfing patterns combined with tick size analysis. By focusing on candles that not only change direction but also show a significant increase in range, the indicator highlights moments when the market may be experiencing a substantial shift in momentum. This method can help traders filter out noise and focus on more meaningful potential reversals.
In summary, the "Tick Range Engulfing Candle Highlighter with Trend Change" indicator provides traders with a tool to spot potential trend changes based on price action and candle analysis. It's flexible, allowing for customization, and can be a valuable addition to various trading strategies.
Sylvain Zig-Zag [MyTradingCoder]This Pine Script version of ZigZagHighLow is a faithful port of Sylvain Vervoort's original study, initially implemented in NinjaScript and later added to the thinkorswim standard library. This indicator identifies and connects swing points in price data, offering a clear visualization of market moves that exceed a specified threshold. Additionally, it now includes features for detecting and plotting support and resistance levels, enhancing its utility for technical analysis.
Overview
The Sylvain Zig-Zag study excels at highlighting significant price swings by plotting points where the price change, combined with volatility adjustments via the Average True Range (ATR), exceeds a user-defined percentage. It effectively smooths out minor fluctuations, allowing traders to focus on the primary market trends. This tool is particularly useful in identifying potential turning points, trends in price movements, and key support and resistance levels, making it a valuable addition to your technical analysis arsenal.
How It Works
The Sylvain Zig-Zag indicator works by detecting swing points in the price data and connecting them to form a zigzag pattern. A swing point is identified when the price moves a certain distance, defined by a combination of percentage change and ATR. This distance must be exceeded for a swing point to be plotted.
When the price moves upwards and exceeds the previous high by a specified percentage plus a factor of the ATR, a new high swing point is plotted. Conversely, a low swing point is plotted when the price moves downwards and exceeds the previous low by the same criteria. This ensures that only significant price moves are considered, filtering out minor fluctuations and providing a clear view of the overall market trend.
In addition to plotting zigzag lines, the indicator can now identify and draw support and resistance levels based on the detected swing points. These levels are crucial for identifying potential reversal areas and market structure.
Key Features
Swing Point Detection: Accurately identifies significant price swings by considering both percentage price change and volatility (via Average True Range).
Dynamic Support/Resistance: Automatically generates support and resistance lines based on the identified swing points, providing potential areas of price reversals.
Customizable Parameters: Tailor the indicator's sensitivity to your preferred trading style and market conditions. Adjust parameters like percentage reversal, ATR settings, and absolute/tick reversals.
Visual Clarity: Choose to display the ZigZag line, support/resistance levels, new trend icons, continuation icons, and even customize bar colors for easy visual analysis.
Trading Applications
Trend Identification: Easily visualize the prevailing market trend using the direction of the ZigZag line and support/resistance levels.
Entry/Exit Signals: Potential entry points can be identified when the price interacts with the dynamic support/resistance levels.
Stop-Loss Placement: Use recent swing points as logical places for setting stop-loss orders.
Profit Targets: Project potential price targets based on the distance between previous swing points.
Input Parameters
Several input parameters can be adjusted to customize the behavior of the Sylvain Zig-Zag indicator. These parameters allow traders to fine-tune the detection of swing points and support/resistance levels to better suit their trading strategy and the specific market conditions they are analyzing.
High Source and Low Source:
These inputs define the price points used for detecting high and low swing points, respectively. You can choose between high, low, open, or close prices for these calculations.
Percentage Reversal:
This input sets the minimum percentage change in price required for a swing to be detected. A higher percentage value will result in fewer but more significant swing points, while a lower value will detect more frequent, smaller swings.
Absolute Reversal:
This parameter allows for an additional fixed value to be added to the minimum price change and ATR change. This can be useful for increasing the distance between swing points in volatile markets.
ATR Length:
This input defines the period used for calculating the ATR, which is a measure of market volatility. A longer ATR period will smooth out the ATR calculation, while a shorter period will make it more sensitive to recent price changes.
ATR Multiplier:
This factor is applied to the ATR value to adjust the sensitivity of the swing point detection. A higher multiplier will increase the required price movement for a swing point to be plotted, reducing the number of detected swings.
Tick Reversal:
This input allows for an additional value in ticks to be added to the minimum price change and ATR change, providing further customization in the swing point detection process.
Support and Resistance:
Show S/R: Enable or disable the plotting of support and resistance levels.
Max S/R Levels: Set the maximum number of support and resistance levels to display.
S/R Line Width: Adjust the width of the support and resistance lines.
Visual Settings
The Sylvain Zig-Zag indicator also includes visual settings to enhance the clarity of the plotted swing points and trends. You can customize the color and width of the zigzag line, and enable icons to indicate new trends and continuation patterns. Additionally, the bars can be colored based on the detected trend, aiding in quick visual analysis.
Conclusion
This port of the ZigZagHighLow study from NinjaScript to Pine Script preserves the essence of Sylvain Vervoort’s methodology while adding new features for support and resistance. It provides traders with a powerful tool for technical analysis. The combination of price changes and ATR ensures that you have a robust and adaptable tool for identifying key market movements and structural levels. Customize the settings to match your trading style and gain a clearer picture of market trends, turning points, and support/resistance areas. Enjoy improved market analysis and more informed trading decisions with the Sylvain Zig-Zag indicator.
The Trend SetterThe "Trend Setter" script is a technical indicator that combines several other indicators to identify trends and potential entry points in the market. It is designed to work with various financial markets, including stocks, forex, and futures, and can be used on any timeframe.
The script uses the TTM Squeeze indicator, Bollinger Bands, Keltner Channels, CCI, and Parabolic SAR to identify trends and potential entry points. The TTM Squeeze is a custom indicator that identifies periods of low volatility, while the Bollinger Bands and Keltner Channels are used to identify potential breakouts. The CCI is used to identify potential overbought and oversold conditions, and the Parabolic SAR is used to identify potential trend reversals.
The TTM Squeeze indicator is a combination of Bollinger Bands and Keltner Channels. The indicator creates a "squeeze" when the Bollinger Bands move inside the Keltner Channels. This indicates a period of low volatility and is often followed by a period of increased volatility or a breakout. The script uses this information to identify potential trading opportunities.
The Bollinger Bands are a popular indicator used to identify potential breakouts. They consist of a moving average (the basis) and two standard deviation lines (the upper and lower bands). When the price moves outside the bands, it is considered a potential breakout.
Keltner Channels are similar to Bollinger Bands but are based on the Average True Range (ATR) instead of standard deviation. They consist of an exponential moving average (the basis) and two lines that are offset from the basis by a multiple of the ATR. When the price moves outside the channels, it is considered a potential breakout.
The CCI (Commodity Channel Index) is used to identify potential overbought and oversold conditions. It measures the difference between the typical price (the average of the high, low, and close) and a moving average of the typical price. The result is then divided by a multiple of the mean deviation. When the CCI moves above a certain threshold, it is considered overbought, and when it moves below a certain threshold, it is considered oversold.
The Parabolic SAR (Stop and Reverse) is used to identify potential trend reversals. It consists of a series of dots that appear above or below the price, depending on the direction of the trend. When the price crosses the dots, it is considered a potential reversal.
The script plots arrow shapes on the chart to indicate long and short entry points, and can also generate alerts to notify the user of potential trading opportunities. The script uses the various indicators to determine the potential entry points based on the current market conditions.
Overall, the script is designed to help traders identify potential trading opportunities and make more informed trading decisions. However, as with any trading strategy or indicator, it is important to thoroughly test and validate the approach before using it in a live trading environment. Traders should also consider their risk tolerance and other factors before making any trades based on the indicator.
In assembling the different indicators in this script, there is a specific rationale for each one's inclusion, and how they work together to create a comprehensive trading strategy.
The TTM Squeeze indicator is used as a primary filter to identify periods of low volatility, as these are often followed by high volatility and potential breakouts. Bollinger Bands and Keltner Channels are then used to identify potential breakouts, with the former representing the upper and lower boundaries of price action and the latter representing the average price range. The inclusion of both indicators helps to confirm potential breakouts and provide a more comprehensive view of price action.
The CCI indicator is used as a momentum indicator to confirm potential trend reversals, by identifying overbought and oversold conditions. This is important because while breakouts can be identified using the TTM Squeeze and Bollinger Bands/Keltner Channels, they do not necessarily indicate the direction of the breakout. The CCI helps to confirm whether the price is overbought or oversold, and can indicate potential reversals or continuations of the trend.
Finally, the Parabolic SAR is used as a trend-following indicator to identify potential trend reversals, by placing dots above or below the price depending on the direction of the trend. This helps to identify potential reversal points in the trend and can be used in conjunction with other indicators to confirm potential entry and exit points.
In summary, the combination of these indicators is designed to provide a comprehensive view of the market, identifying periods of low volatility, potential breakouts, momentum changes, and trend reversals. By providing clear entry and exit points, the script aims to help traders make more informed trading decisions and improve their overall trading performance.
PnF ChartPoint and Figure (P&F) charts are a time-independent technical analysis tool that focuses purely on price movements, filtering out noise like minor price fluctuations and time. Unlike candlestick or bar charts, P&F charts ignore time and only record significant price changes based on predefined rules.
Key Characteristics of P&F Charts
No Time Axis
Only price movements matter; time is irrelevant.
Columns form based on reversals, not fixed time periods.
Uses X's and O's
X = Rising prices (demand in control)
O = Falling prices (supply in control)
Box Size (Price Increment)
Defines the minimum price change required to plot a new X or O.
Example: If the box size is **1∗∗,astockmustmoveatleast1∗∗,astockmustmoveatleast1 to record a new X or O.
Reversal Amount
Determines how much the price must reverse to switch from X's to O's (or vice versa).
Common reversal settings: 3-box reversal (price must reverse by 3x the box size).
How P&F Charts Work
1. Rising Prices (X-Columns)
A new X is added if the price rises by the box size.
If the price reverses down by the reversal amount, a new O-column starts.
2. Falling Prices (O-Columns)
A new O is added if the price falls by the box size.
If the price reverses up by the reversal amount, a new X-column starts.
Example of a P&F Chart
Suppose:
Box Size = $1
Reversal Amount = 3-box (i.e., $3)
Price Movement Chart Update
Stock rises from 10→10→11 X at $11
Rises to $12 X at $12
Drops to 9(9(12 → 9=9=3 drop) New O-column starts at 11,11,10, $9
Rises again to 12(12(9 → 12=12=3 rise) New X-column at 10,10,11, $12
About the Script:This Script uses columns instead of traditional X and O boxes.Column Printing (Red vs Green)
This Point and Figure chart alternates between two states:
X columns (green): Represent upward price movements
O columns (red): Represent downward price movements
When Green Columns (X) Are Printed:
A green column is printed when:
The script is in "X mode" (is_x is true)
A new column is created (new_column_created is true)
This happens after the price has reversed upward by at least the "reversal boxes" threshold from a previous O column
When Red Columns (O) Are Printed:
A red column is printed when:
The script is in "O mode" (is_x is false)
A new column is created (new_column_created is true)
This happens after the price has reversed downward by at least the "reversal boxes" threshold from a previous X column
How Trendlines Are Created
The script can draw two types of trendlines when the show_trendlines option is enabled:
Green Trendlines (Uptrend):
A green trendline is created when:
There's a transition from O to X columns (cond2 is true but wasn't true on the previous bar)
This represents the beginning of a potential uptrend
The trendline is solid and extends to the right
Red Trendlines (Downtrend):
A red trendline is created when:
There's a transition from X to O columns (cond1 is true but wasn't true on the previous bar)
This represents the beginning of a potential downtrend
The trendline is dashed and extends to the right
The script maintains two trendline objects - current_trendline and previous_trendline - and deletes the oldest one when a new trendline is created to prevent cluttering the chart.
In summary, this Point and Figure chart tracks price movements in discrete boxes and changes column types (and creates trendlines) when price reverses by a significant amount (defined by the reversal_boxes parameter). The chart also generates alerts when these trend changes occur, helping traders identify potential trend reversals.
Multiple (12) Strong Buy/Sell Signals + Momentum
Indicator Manual: "Multiple (12) Strong Buy/Sell Signals + Momentum"
This indicator is designed to identify strong buy and sell signals based on 12 configurable conditions, which include a variety of technical analysis methods such as trend-following indicators, pattern recognition, volume analysis, and momentum oscillators. It allows for customizable alerts and visual cues on the chart. The indicator helps traders spot potential entry and exit points by displaying buy and sell signals based on the selected conditions.
Key Observations:
• The script integrates multiple indicators and pattern recognition methods to provide comprehensive buy/sell signals.
• Trend-based indicators like EMAs and MACD are combined with pattern recognition (flags, triangles) and momentum-based signals (RSI, ADX, and volume analysis).
• User customization is a core feature, allowing adjustments to the conditions and thresholds for more tailored signals.
• The script is designed to be responsive to market conditions, with multiple conditions filtering out noise to generate reliable signals.
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Key Features:
1. 12 Combined Buy/Sell Signal Conditions: This indicator incorporates a diverse set of conditions based on trend analysis, momentum, and price patterns.
2. Minimum Conditions Input: You can adjust the threshold of conditions that need to be met for the buy/sell signals to appear.
3. Alert Customization: Set alert thresholds for both buy and sell signals.
4. Dynamic Visualization: Buy and sell signals are shown as triangles on the chart, with momentum signals highlighted as circles.
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Detailed Description of the 12 Conditions:
1. Exponential Moving Averages (EMA):
o Conditions: The indicator uses EMAs with periods 3, 8, and 13 for quick trend-following signals.
o Bullish Signal: EMA3 > EMA8 > EMA13 (Bullish stack).
o Bearish Signal: EMA3 < EMA8 < EMA13 (Bearish stack).
o Reversal Signal: The crossing over or under of these EMAs can signify trend reversals.
2. MACD (Moving Average Convergence Divergence):
o Fast MACD (2, 7, 3) is used to confirm trends quickly.
o Bullish Signal: When the MACD line crosses above the signal line.
o Bearish Signal: When the MACD line crosses below the signal line.
3. Donchian Channel:
o Tracks the highest high and lowest low over a given period (default 20).
o Breakout Signal: Price breaking above the upper band is bullish; breaking below the lower band is bearish.
4. VWAP (Volume-Weighted Average Price):
o Above VWAP: Bullish condition (price above VWAP).
o Below VWAP: Bearish condition (price below VWAP).
5. EMA Stacking & Reversal:
o Tracks the order of EMAs (3, 8, 13) to confirm strong trends and reversals.
o Bullish Reversal: EMA3 < EMA8 < EMA13 followed by a crossing to bullish.
o Bearish Reversal: EMA3 > EMA8 > EMA13 followed by a crossing to bearish.
6. Bull/Bear Flags:
o Bull Flag: Characterized by a strong price movement (flagpole) followed by a pullback and breakout.
o Bear Flag: Similar to Bull Flag but in the opposite direction.
7. Triangle Patterns (Ascending and Descending):
o Detects ascending and descending triangles using pivot highs and lows.
o Ascending Triangle: Higher lows and flat resistance.
o Descending Triangle: Lower highs and flat support.
8. Volume Sensitivity:
o Identifies price moves with significant volume increases.
o High Volume: When current volume is significantly above the moving average volume (set to 1.2x of the average).
9. Momentum Indicators:
o RSI (Relative Strength Index): Confirms overbought and oversold levels with thresholds set at 65 (overbought) and 35 (oversold).
o ADX (Average Directional Index): Confirms strong trends when ADX > 28.
o Momentum Up: Momentum is upward with strong volume and bullish RSI/ADX conditions.
o Momentum Down: Momentum is downward with strong volume and bearish RSI/ADX conditions.
10. Bollinger & Keltner Squeeze:
o Squeeze Condition: A contraction in both Bollinger Bands and Keltner Channels indicates low volatility, signaling a potential breakout.
o Squeeze Breakout: Price breaking above or below the squeeze bands.
11. 3 Consecutive Candles Condition:
o Bullish: Price rises for three consecutive candles with higher highs and lows.
o Bearish: Price falls for three consecutive candles with lower highs and lows.
12. Williams %R and Stochastic RSI:
o Williams %R: A momentum oscillator with signals when the line crosses certain levels.
o Stochastic RSI: Provides overbought/oversold levels with smoother signals.
o Combined Signals: You can choose whether to require both WPR and StochRSI to signal a buy/sell.
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User Inputs (Inputs Tab):
1. Minimum Conditions for Buy/Sell:
o min_conditions: Number of conditions required to trigger a buy/sell signal on the chart (1 to 12).
o Alert_min_conditions: User-defined alert threshold (how many conditions must be met before an alert is triggered).
2. Donchian Channel Settings:
o Show Donchian: Toggle visibility of the Donchian channel.
o Donchian Length: The length of the Donchian Channel (default 20).
3. Bull/Bear Flag Settings:
o Bull Flag Flagpole Strength: ATR multiplier to define the strength of the flagpole.
o Bull Flag Pullback Length: Length of pullback for the bull flag pattern.
o Bull Flag EMA Length: EMA length used to confirm trend during bull flag pattern.
Similar settings exist for Bear Flag patterns.
4. Momentum Indicators:
o RSI Length: Period for calculating the RSI (default 9).
o RSI Overbought: Overbought threshold for the RSI (default 65).
o RSI Oversold: Oversold threshold for the RSI (default 35).
5. Bollinger/Keltner Squeeze Settings:
o Squeeze Width Threshold: The maximum width of the Bollinger and Keltner Bands for squeeze conditions.
6. Stochastic RSI Settings:
o Stochastic RSI Length: The period for calculating the Stochastic RSI.
7. WPR Settings:
o WPR Length: Period for calculating Williams %R (default 14).
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User Inputs (Style Tab):
1. Signal Plotting:
o Control the display and colors of the buy/sell signals, momentum indicators, and pattern signals on the chart.
o Buy/Sell Signals: Can be customized with different colors and shapes (triangle up for buys, triangle down for sells).
o Momentum Signals: Custom circle placement for momentum-up or momentum-down signals.
2. Donchian Channel:
o Show Donchian: Toggle visibility of the Donchian upper, lower, and middle bands.
o Band Colors: Choose the color for each band (upper, lower, middle).
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How to Use the Indicator:
1. Adjust Minimum Conditions: Set the minimum number of conditions that must be met for a signal to appear. For example, set it to 5 if you want only stronger signals.
2. Set Alert Threshold: Define the number of conditions needed to trigger an alert. This can be different from the minimum conditions for visual signals.
3. Customize Appearance: Modify the colors and styles of the signals to match your preferences.
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Conclusion:
This comprehensive trading indicator uses a combination of trend-following, pattern recognition, and momentum-based conditions to help you spot potential buy and sell opportunities. By adjusting the input settings, you can fine-tune it to match your specific trading strategy, making it a versatile tool for different market conditions.
Signal Reliability Based on Condition Count
The reliability of the buy/sell signals increases as more conditions are met. Here's a breakdown of the probabilities:
1. 1-3 Conditions Met: Lower Probability
o Signals that meet only 1-3 conditions tend to have lower reliability and are considered less probable. These signals may represent false positives or weaker market movements, and traders should approach them with caution.
2. 4 Conditions Met: More Reliable Signal
o When 4 conditions are met, the signal becomes more reliable. This indicates that multiple indicators or market patterns are aligning, increasing the likelihood of a valid buy/sell opportunity. While not foolproof, it's a stronger indication that the market may be moving in a particular direction.
3. 5-6 Conditions Met: Strong Signal
o A signal meeting 5-6 conditions is considered a strong signal. This indicates a well-confirmed move, with several technical indicators and market factors aligning to suggest a higher probability of success. These are the signals that traders often prioritize.
4. 7+ Conditions Met: Rare and High-Confidence Signal
o Signals that meet 7 or more conditions are rare and should be considered high-confidence signals. These represent a significant alignment of multiple factors, and while they are less frequent, they are highly reliable when they do occur. Traders can be more confident in acting on these signals, but they should still monitor market conditions for confirmation.
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You can adjust the number of conditions as needed, but this breakdown should give a clear structure on how the signal strength correlates with the number of conditions met!
MarketLuminaMarketLumina: A Comprehensive Technical Analysis Tool
MarketLumina is a technical analysis indicator crafted by a team of traders and developers in Germany. Built for TradingView’s Pine Script, it integrates trend visualization, signal generation, and real-time market insights to provide a multifaceted view of market conditions. This tool is designed to support traders in analyzing trends, spotting potential reversals, and evaluating market dynamics across various timeframes.
The best way to get started with MarketLumina is to take your time exploring its wide range of features. Dive in, experiment, and find the 2-3 tools that feel just right for you. Whether you’re a day trader looking for quick signals, a swing trader tracking trends, or an investor watching the bigger picture, MarketLumina lets you pick and choose what works best. Over time, you’ll craft your own unique trading strategy, perfectly tailored to your goals, preferences, and risk tolerance.
Key Features
Fibonacci Trend-Cloud
Displays market direction through Fibonacci-weighted moving averages. The cloud’s color—green (bullish), red (bearish), or yellow (caution)—reflects prevailing conditions, while its width indicates trend intensity.
Advanced Signal System
Generates signals derived from RSI, momentum, volume, money flow, volatility, price action, divergences, specific cloud-interactions, divergences and historical data. Signal categories include strong reversals, potential reversals, short-term tops/bottoms, strong trend, oversold/overbought conditions, exit signals, and money flow strategy triggers.
LuminaPulse – Real-Time Market Insight
A proprietary module that delivers real-time market analysis through a dashboard of six progress bars, each tailored to the symbol and timeframe using a machine learning approach. It screens historical data—key levels, consolidation zones, volatility spikes, and past price reactions—to optimize insights.
Support & Resistance Zones
Highlights critical price levels using volume-weighted historical data and price-action pivot points.
Candlestick-Overlay
Applies color coding to candlesticks—green (bullish), red (bearish), yellow (caution)—to emphasize signal-relevant bars.
Usage Instructions
MarketLumina is intended as a component of a broader analytical framework.
Below are general guidelines for its application:
Multi-Timeframe Analysis
Align signals with trends on higher timeframes for context.
LuminaPulse Interpretation
Evaluate confluence across trend strength, momentum, money flow, and volume to assess market conditions. Additionally, monitor squeeze conditions for potential breakout signals and volatility to gauge market activity.
Trend-Cloud Context
Use the Fibonacci Trend-Cloud’s direction and width as a filter for signal relevance.
Usage Instructions for MarketLumina’s Advanced Signal System
The Advanced Signal System is a core component of MarketLumina, designed to empower traders by generating a variety of signals derived from RSI, momentum, volume, money flow, volatility, divergences, price action, and more. These signals are organized into distinct categories to help you identify key market conditions and uncover potential trading opportunities.
Below is a comprehensive guide to each signal category, including descriptions, interpretations, and practical applications to enhance your trading decisions:
Strong Reversals
Reversal Signals are generated using a complex price action and volatility algorithm, pinpointing significant potential turning points in the market with elevated confidence.
How to Use:
Look for these signals near critical support or resistance levels, especially when supported by the Fibonacci Trend-Cloud or LuminaPulse metrics.
Treat them as powerful reversal cues when they align with overarching market trends or follow prolonged price movements.
Interpretation:
A bullish Reversal signal flags a strong probability of an upward reversal, often in oversold conditions, suggesting a shift to bullish momentum.
A bearish Reversal signal points to a likely downward reversal, typically in overbought scenarios, indicating bearish potential.
Their reliability increases with confluence factors like divergences or a notable shift in money flow.
Potential Reversals
These signals flag possible trend continuation after a pullback based on price action, RSI thresholds and specific trend-cloud interaction, offering early insights with moderate certainty compared to strong reversals.
How to Use:
Use them as preliminary alerts for potential reversals of a pullback continuing its trend, particularly near support or resistance zones.
Validate their strength with additional tools like the Trend-Cloud thickness or LuminaPulse to gauge reliability.
Interpretation:
Bullish potential reversals hint at the onset of an upward move, while bearish ones suggest a downward continuation may be brewing.
Ideal for spotting early opportunities, these signals gain credibility when paired with confirming indicators.
Short-Term Tops/Bottoms
These signals mark temporary price extremes, identifying short-term tops or bottoms within a trend, driven by Multi-RSI algorithms.
How to Use:
In trending markets, leverage these signals to anticipate brief pullbacks or corrections within the dominant direction.
In range-bound markets, use them to pinpoint reversal points within the established range.
Interpretation:
A short-term top indicates a temporary possible high, offering opportunities to lock in profits or brace for a dip.
A short-term bottom suggests a fleeting low, signaling a potential bounce or recovery within the larger trend.
Oversold/Overbought Conditions
This category highlights extreme market states with oversold/overbought conditions, derived from RSI and price action.
How to Use:
In strong trends, these signals affirm the likelihood of potential temporary exhaustion.
In weaker trends, they signal potential exhaustion and could early indicate reversals.
Interpretation:
Oversold signals in strong trends could mark a short-term break or slower trend continuation and should not be interpreted as a reversal signal.
Strong Trend
These signals flag possible trend continuation based on six key metrics—RSI, Money Flow, Momentum, and more—align to confirm robust momentum.
How to Use:
In strong trends, these signals affirm the likelihood of a continuation.
Interpretation:
Strong trend signals could be interpreted as a confirmation of the bullish movement and a possible continuation.
Money Flow Strategy Triggers
Built on money flow analysis, these signals track capital inflows and outflows on multiple timeframes to reveal shifts in buying or selling pressure, offering a window into market sentiment.
How to Use:
Deploy these triggers to refine entry or exit timing, especially when they sync with other signals and the Trend-Cloud’s direction.
Pair them with LuminaPulse’s Money Flow, Momentum and volume sentiment for a deeper understanding of market participation.
Interpretation:
Positive money flow triggers indicate rising buying pressure, often a precursor to upward price action.
Negative money flow triggers signal increasing selling pressure, potentially foreshadowing a downturn.
Their value shines when diverging from price action, exposing hidden strength or weakness in the market.
Usage Instructions for LuminaPulse
LuminaPulse is a standout feature of MarketLumina, delivering real-time insights into market conditions through a sophisticated, machine-learning-driven approach. It analyzes historical data unique to each symbol and timeframe—examining past key levels, consolidation zones, volatility spikes, and price reactions—to create a dashboard of six progress bars.
These bars represent the strength of critical market factors:
Money Flow
Momentum
Volume
Strength (Trend Strength)
Squeeze
Volatility
Each bar is color-coded—green for bullish conditions, red for bearish—and its fill level reflects the factor’s strength relative to historical patterns. A fully loaded bar suggests a high likelihood of a notable price reaction, based on how the market has responded to similar conditions in the past. What makes LuminaPulse unique is its ability to tailor these insights to the specific symbol and timeframe, going beyond raw metrics to show their historical significance.
Additionally, each bar features a "Ghost-Progress" overlay, marking the highest strength level reached in the current trend. This allows you to see whether the current strength is nearing or retreating from recent peaks, adding depth to your analysis.
How to Use LuminaPulse
LuminaPulse is a confirmation tool, not a standalone signal generator. It shines when paired with other MarketLumina features, like the Fibonacci Trend-Cloud or Advanced Signal System, as part of a broader trading strategy.
Here’s how to apply it effectively:
Seek Confluence
Check for alignment across multiple bars. For example, if Money Flow, Momentum, and Volume are all green and highly filled, it could indicate strong bullish potential.
Spot Divergences
Look for mismatches between price action and the bars. If price rises but Momentum weakens, it might hint at a fading trend.
Monitor Squeeze: A fully loaded Squeeze bar signals consolidation and potential volatility ahead. Use other tools to predict the breakout direction.
Assess Volatility: The Volatility bar sets the context—high levels suggest bigger price swings, while low levels indicate a calmer market.
Interpreting Each Progress Bar
1. Money Flow
Measures the strength of money flowing into or out of the market, compared to historical thresholds, key-levels and past price reactions, using a machine learning approach, tailored to the symbol and timeframe. It’s not just the raw money flow index—it’s the likelihood of a price move based on historical similar money flow movements.
How to Use:
Look for a fully loaded bar alongside a strong Momentum bar near key levels or signals.
Watch for a bar switching colors (e.g., red to green) with a robust Momentum bar for potential trend shifts.
Treat it as the fuel behind price moves, not the absolute flow level.
Interpretation:
A fully loaded green bar suggests strong buying pressure; a red bar indicates selling pressure.
Divergence (e.g., price up, Money Flow down) can signal an impending reversal—confirm with other tools.
2. Momentum
Gauges the strength and direction of price momentum, factoring in historical key levels, volatility, and past reactions, optimized by a machine learning approach, tailored to the symbol and timeframe. It reflects momentum’s strength and potential impact, not just its current state.
How to Use:
Pair a fully loaded bar with a strong Money Flow bar near signals or key levels.
A switching bar (e.g., bearish to bullish) with a solid Money Flow bar may hint at a trend change.
View it as the driving force behind price momentum.
Interpretation:
A fully loaded green bar signals powerful upward momentum; a red bar shows downward force.
Divergence from price action (e.g., price down, Momentum up) can be a reversal clue—verify with confluence.
3. Volume
Shows whether volume is pushing price up or down, based on historical patterns and key levels near the current price, tailored to the symbol and timeframe.
How to Use:
Look for a bar over 50% filled, aligned with Money Flow and Momentum, near signals or key levels.
Combine a strong bar with a fully loaded Squeeze bar for breakout potential.
See it as the muscle behind buying or selling pressure.
Interpretation:
A green bar over 50% suggests volume supports upward moves; a red bar indicates downward pressure.
Alignment with other bars near support/resistance can confirm breakouts or rejections.
4. Strength (Trend Strength)
Focuses on the current trend’s robustness, comparing it to historical price movements, trend direction, and volatility. It helps spot pullbacks or early trend-shift warnings.
How to Use:
Watch for a fully loaded bar opposite your trade, paired with weakening Money Flow or Momentum, as an exit cue.
For reversals, confirm a fully loaded bar with at least two other aligned bars.
Use it to gauge the power of short-term price action.
Interpretation:
A fully loaded bar with supporting bars confirms trend strength.
A dropping bar as price tests key levels may signal a pullback or shift—check support/resistance.
5. Squeeze
Highlights consolidation and building pressure from buyers and sellers, suggesting a big move ahead. Its color reflects the trend but isn’t a reliable directional guide.
How to Use:
A fully loaded bar signals an imminent breakout—use other indicators for direction.
Pair with strong Strength and Volume for timing confirmation.
Treat it as a timing tool, not a directional one.
Interpretation:
A fully loaded bar means a significant move is likely, but not where it’s headed.
Use it to prepare for action, not to predict the outcome—direction comes from confluence.
6. Volatility
Measures current volatility relative to historical levels, using a machine learning approach to analyze past volatility and duration patterns specific to the symbol and timeframe. A calm bar might still appear during big swings if that’s normal for the asset or a calm bar could appear after a big move if it's normal for the asset to show single volatility spikes with consolidation afterwards.
How to Use:
Use a high Volatility bar (fully loaded) to favor short-term trades; a low bar (empty) suggests a quieter market.
Pair with Squeeze to anticipate breakout strength.
Adjust your strategy based on the market’s activity level.
Interpretation:
A fully loaded bar signals high volatility and bigger swings; an empty bar indicates low volatility and smaller moves.
Context is key—high volatility for one symbol might be calm for another, based on its history.
Key Features of LuminaPulse
Tailored Insights: Each bar’s strength is customized to the symbol and timeframe’s historical behavior, making it uniquely relevant.
Ghost-Progress: See the peak strength in the current trend, helping you judge if conditions are peaking or fading.
Individual-Adapting Edge: Algorithms adapt to historical data, ensuring insights reflect past reactions, not just current values.
Important Notes
LuminaPulse is a complex, unique tool designed to enhance your analysis, not dictate trades. Its strength lies in its historical context and real-time adaptability, but it’s most effective when combined with other MarketLumina features and your own strategy.
Illustrative Scenarios
Trend Continuation Example
Picture a market where momentum is steadily building. The Fibonacci Trend-Cloud turns red across both the primary and higher timeframes, reflecting a strong bearish direction. As this trend takes shape, reversal or strategy-based signals begin to line up with the cloud’s downward tilt, hinting at sustained weakness. Short-term bottoms and tops might start forming, offering clues about the trend’s rhythm, while a widening cloud could suggest growing confidence in the move. This setup showcases how the indicator can highlight a trend gathering steam, with multiple features reinforcing the direction.
Reversal Example
Imagine a market that’s been rising but approaches a key support zone. Suddenly, strong reversal signals flash on the chart, catching attention near this critical level. Price action starts to stabilize or reject, while LuminaPulse metrics show a subtle uptick in momentum or a shift in volume sentiment. As the market tests this zone, opposing signals fade, and the potential for a downward turn becomes clearer. This scenario illustrates how the indicator’s signals and metrics can converge to spotlight a possible shift in direction.
Pullback Analysis Example
Consider a strong bullish trend unfolding on the higher timeframe, painting a broad picture of upward movement. Zooming into the lower timeframe, a brief retracement emerges, pulling price back toward a support level. Here, strategy-based or reversal signals might pop up, marking this as a key area to watch. LuminaPulse could reveal a slowdown in downward momentum or a tightening of trend strength, suggesting the retracement might be running out of energy. This example demonstrates how the indicator can help dissect a pullback, revealing opportunities within an ongoing trend.
Range-Bound Market Example
Envision a market stuck in a sideways drift, with the Fibonacci Trend-Cloud narrowing and turning yellow—a sign of consolidation. Reversal signals begin appearing near support and resistance zones, hinting at potential bounces within the range. LuminaPulse metrics might spike, showing bursts of volatility or squeeze conditions building up. As price nears these boundaries, the chance of a breakout looms, with retests of the zones offering further clarity. These examples show how MarketLumina’s features—like the cloud’s color and width, signal alignments, and LuminaPulse shifts—can work together to illuminate market dynamics. Whether it’s a trend gaining traction, a reversal brewing, a pullback pausing, or a range tightening, the indicator provides visual and analytical cues to explore. By watching how these elements evolve, you can get a feel for the market’s rhythm and sharpen your understanding of what to look for in different situations.
Legal Notices
MarketLumina is a technical analysis tool, not a substitute for professional financial advice.
Trading carries inherent risks; past performance does not guarantee future outcomes.
All content is provided for educational purposes only and does not constitute trading recommendations. Users bear full responsibility for their trading decisions and are urged to prioritize robust risk management.
MACD+ Divergences [CryptoSmart] By IgnotusIndicator Description: MACD+ Divergence
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Overview
The MACD+ Divergence is an enhanced version of the classic MACD (Moving Average Convergence Divergence) indicator, meticulously crafted by CryptoSmart. This proprietary tool integrates advanced divergence detection, Top Dog Trading MOM (Momentum) and DAD (Direction as Decision) variations, and unique background shading to provide traders with a comprehensive view of market momentum, trend direction, and potential reversals.
This indicator is not just a standard MACD; it incorporates a unique configuration aligned with a proprietary trading strategy developed by CryptoSmart. Its settings and code are restricted to preserve the integrity and effectiveness of the strategy. Traders can leverage this powerful tool to identify high-probability trade setups without constantly monitoring the charts.
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Key Features
- Proprietary MACD Calculation:
- MACD line calculated using user-defined fast, slow, and signal lengths.
- Supports both Exponential Moving Averages (EMA) and Simple Moving Averages (SMA).
- Includes optimized settings for Top Dog Trading MOM and DAD variations for structured momentum and directional analysis.
- Dynamic Coloring:
- MACD histogram changes color dynamically based on its direction and position relative to the zero line:
- Green/Lime: Increasing momentum above the zero line.
- Red/Maroon: Decreasing momentum below the zero line.
- MACD line and signal line adapt their colors to reflect directional trends.
- Background Shading:
- Background color highlights key conditions:
- Lime: Bullish momentum or upward DAD direction.
- Red: Bearish momentum or downward DAD direction.
- Provides an intuitive visual cue for market sentiment.
- Advanced Divergence Detection:
- Identifies regular and hidden divergences in:
- MACD Histogram.
- MACD Line.
- MOM (Momentum).
- DAD (Direction as Decision).
- Regular divergences indicate potential trend reversals, while hidden divergences suggest trend continuation.
- Divergences are plotted as lines and labeled with clear markers (`R` for regular and `H` for hidden).
- Customizable Inputs:
- Enable or disable specific features, such as:
- Displaying regular or hidden divergences.
- Showing divergence labels.
- Using Top Dog Trading MOM and DAD variations.
- Adjustable offset for divergence markers ensures realistic entry points.
- Comprehensive Alert System:
- Alerts notify traders of key events, including:
- MACD line crossing the signal line.
- Divergence formations (regular and hidden).
- Changes in DAD direction (upward or downward).
- Alerts ensure traders don’t miss critical trading opportunities.
- Unique Configuration:
- Built with a proprietary configuration integrating a proven trading strategy.
- Parameters and logic are fine-tuned to deliver precise signals.
- Restricted code ensures alignment with the proprietary strategy.
- Aesthetic Enhancements:
- Clean and professional design with customizable colors and line styles.
- Optional histogram outlines for better visibility.
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How It Works
1. MACD Calculation:
- MACD line = Difference between fast and slow moving averages.
- Signal line = Smoothed version of the MACD line.
- Histogram = Difference between the MACD line and signal line.
2. Divergence Logic:
- Fractals identify local highs and lows in the MACD histogram, MACD line, MOM, and DAD.
- Regular divergences occur when price makes a higher high/lower low, but the MACD indicator does not confirm the move.
- Hidden divergences occur when price makes a lower high/higher low, but the MACD indicator confirms the trend continuation.
3. Background Shading:
- Background color changes based on the direction of the MACD histogram or DAD line, providing a quick visual reference for market bias.
4. Alerts:
- Alerts trigger when specific conditions are met, such as divergences forming or the MACD line crossing the signal line.
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Inputs
- Standard MACD Settings:
- Fast Length: Default = 12
- Slow Length: Default = 26
- Signal Smoothing: Default = 9
- Top Dog Trading Settings:
- Fast Length: Default = 5
- Slow Length: Default = 20
- Signal Smoothing: Default = 30
- Visualization Options:
- Enable/Disable Top Dog Trading MOM and DAD.
- Show regular or hidden divergences.
- Display divergence labels.
- Background shading for momentum/direction.
- Offset Adjustment:
- Adjust divergence markers to align with realistic entry points.
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Usage
- Trend Reversals:
- Use regular divergences to identify potential trend reversals.
- Trend Continuation:
- Use hidden divergences to confirm ongoing trends.
- Entry/Exit Points:
- Combine divergence signals with MACD crossovers for precise entry and exit points.
- Market Sentiment:
- Monitor background shading to gauge overall market bias.
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Tips for Traders
Combine with Other Indicators:
- Use this indicator alongside support/resistance levels, candlestick patterns, or volume analysis for confirmation.
Adjust Parameters:
- Experiment with different fast, slow, and signal lengths to suit your trading style and timeframe.
Focus on Divergences:
- Pay close attention to divergence signals, as they often precede significant price movements.
Use Alerts:
- Enable alerts to stay informed about key events without constantly monitoring the chart.
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Why Choose MACD+ Divergence ?
This indicator stands out due to its unique integration of a proprietary trading strategy, ensuring reliable and actionable signals. The inclusion of Top Dog Trading MOM and DAD variations adds precision, while the advanced divergence detection and alert system make it an indispensable tool for traders seeking an edge in the markets.
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Restrictions
To maintain the integrity and effectiveness of the MACD+ Divergence , its configuration and code are restricted. This ensures alignment with the proprietary strategy developed by CryptoSmart, delivering consistent and accurate results.
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Conclusion
The **MACD+ Divergence ** is a cutting-edge tool that combines traditional MACD analysis with advanced divergence detection and proprietary enhancements. Its unique configuration and restricted code ensure it remains a powerful and reliable resource for traders. Whether you’re looking for trend reversals, continuations, or overall market sentiment, this indicator provides the insights needed to make informed trading decisions.
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Disclaimer
This indicator is for educational and informational purposes only. Trading involves risk, and past performance is not indicative of future results. Always conduct your own research and consult with a financial advisor before making trading decisions.
MERCURY-PRO by DrAbhiramSivprasd“MERCURYPRO”
The MERCURYPRO indicator is a custom technical analysis tool designed to provide dynamic trend signals based on a combination of the Chande Momentum Oscillator (CMO) and Standard Deviation (StDev). This indicator helps traders identify trend reversals or continuation based on the behavior of the price and momentum.
Key Features:
• Source Input: The indicator works with any price data, with the default set to close, which represents the closing price of each bar.
• Length Input: A period (default value 9) is used to determine the calculation window for the Chande Momentum Oscillator and Standard Deviation.
• Fixed CMO Length Option: Users can choose whether to use a fixed CMO length of 9 or adjust the length to the user-defined pds value.
• Calculation Method: The indicator allows switching between using the Chande Momentum Oscillator (CMO) or Standard Deviation (StDev) for the momentum calculation.
• Alpha: The smoothing factor used in the calculation of the MERCURYPRO value, which is based on the length of the period input (pds).
Core Calculation:
1. Momentum Calculation: The script calculates the momentum by determining the change in the source price (e.g., close) from one period to the next.
2. Chande Momentum Oscillator (CMO): The positive and negative momentum components are calculated and then summed over the specified period. This value is normalized to a percentage to determine the momentum strength.
3. K Value Calculation: The script selects either the CMO or Standard Deviation (depending on the user setting) to calculate the k value, which represents the dynamic price momentum.
4. MERCURYPRO Line: The final output of the indicator, MERCURYPRO, is computed using a weighted average of the k value and the previous MERCURYPRO value. The line is smoothed using the Alpha parameter.
Plot and Signal Generation:
• Color Coding: The line is color-coded based on the direction of MERCURYPRO:
• Blue: The trend is bullish (MERCURYPRO is rising).
• Maroon: The trend is bearish (MERCURYPRO is falling).
• Default Blue: Neutral or sideways market conditions.
• Plotting: The MERCURYPRO line is plotted with varying colors depending on the trend direction.
Alerts:
• Color Change Alert: The indicator has an alert condition based on when the MERCURYPRO line crosses its previous value. This helps traders stay informed about potential trend reversals or continuation signals.
Use Case:
• Trend Confirmation: Traders can use the MERCURYPRO indicator to identify whether the market is in a strong trend or not.
• Signal for Entries/Exits: The color change and crossovers of the MERCURYPRO line can be used as entry or exit signals, depending on the trader’s strategy.
Overall Purpose:
The MERCURYPRO indicator combines momentum analysis with smoothing techniques to offer a dynamic, responsive tool for identifying market trends and potential reversals. It is particularly useful in conjunction with other technical indicators to provide confirmation for trade setups.
How to Use the MERCURYPRO Indicator:
The MERCURYPRO indicator is designed to help traders identify trend reversals and market conditions. Here are a few ways you can use it:
1. Trend Confirmation (Bullish or Bearish)
• Bullish Trend: When the MERCURYPRO line is colored Blue, it indicates a rising trend, suggesting that the market is bullish.
• Action: You can consider entering long positions when the line turns blue, or holding your existing positions if you’re already long.
• Bearish Trend: When the MERCURYPRO line is colored Maroon, it signals a downward trend, indicating a bearish market.
• Action: You may consider entering short positions or closing any long positions when the line turns maroon.
2. Trend Reversal Alerts
• Color Change: The MERCURYPRO indicator changes color when there’s a trend reversal. The alert condition triggers when the MERCURYPRO crosses above or below its previous value, signaling a potential shift in the trend.
• Action: You can use this alert as a signal to monitor potential entry or exit points for trades. For example, a crossover from maroon to blue could indicate a potential buying opportunity, while a crossover from blue to maroon could suggest a selling opportunity.
3. Use with Other Indicators for Confirmation
• While the MERCURYPRO provides valuable trend insights, it’s often more effective when used in combination with other indicators like RSI (Relative Strength Index), MACD, or moving averages to confirm signals.
• Example: If MERCURYPRO turns blue and RSI is above 50, it may signal a strong bullish trend, enhancing the confidence to enter a long trade.
4. Divergence
• Watch for divergence between the MERCURYPRO line and the price chart:
• Bullish Divergence: If the price makes new lows while MERCURYPRO is showing higher lows, it suggests a potential bullish reversal.
• Bearish Divergence: If the price makes new highs while MERCURYPRO is showing lower highs, it suggests a potential bearish reversal.
Example of Use:
• Example 1: If the MERCURYPRO line changes from maroon to blue, you might enter a long position. After the MERCURYPRO line turns blue, use an alert to monitor the price action. If other indicators (like RSI) also suggest strength, your confidence in the trade will increase.
• Example 2: If the MERCURYPRO line shifts from blue to maroon, it could be a signal to close long positions and consider shorting the market if other conditions align (e.g., moving averages also turn bearish).
Warning for Using the MERCURYPRO Indicator:
1. Lagging Indicator:
• The MERCURYPRO is a lagging indicator, meaning it responds to price changes after they have occurred. This may delay entry and exit signals, and it’s crucial to combine it with other leading indicators to get timely information.
2. False Signals in Range-bound Markets:
• In choppy or sideways markets, the MERCURYPRO line can produce false signals, flipping between blue and maroon frequently without showing a clear trend. It’s important to avoid trading based on these false signals when the market is not trending.
3. Overreliance on One Indicator:
• Relying solely on MERCURYPRO can be risky. Always confirm signals with additional tools like volume analysis, price action, or other indicators to increase the accuracy of your trades.
4. Market Conditions Matter:
• The indicator may work well in trending markets, but in highly volatile or news-driven environments, it may provide misleading signals. Ensure that you take market fundamentals and external news events into consideration before acting on the indicator’s signals.
5. Risk Management:
• As with any technical indicator, MERCURYPRO is not infallible. Always use appropriate risk management techniques such as stop-loss orders to protect your capital. Never risk more than you can afford to lose on a trade.
6. Backtest First:
• Before implementing MERCURYPRO in live trading, make sure to backtest it on historical data. Test the strategy with various market conditions to assess its effectiveness and identify any potential weaknesses.
By considering these guidelines and warnings, you can use the MERCURYPRO indicator more effectively and mitigate potential risks in your trading strategy.
RM - RSI - Enhanced IndexRM - RSI Enhanced Index (RM - REI)
This indicator reimagines the traditional RSI by incorporating price-based enhancements and smoothing techniques to provide traders with a refined perspective on market momentum and trend direction.
Key Features
• Modified RSI Calculation: The RSI is adjusted using a normalized close-to-moving-average ratio, offering a unique interpretation of price momentum.
• Smoothing with EMA: An EMA is applied to the modified RSI values, creating a smoother and more reliable trend-following signal.
• Overbought/Oversold Levels: Standard RSI thresholds (70 and 30) are displayed for quick identification of extreme market conditions, complemented by a midline at 50.
• Dynamic Bar Coloring: Bars are color-coded based on the EMA's position relative to the midline:
Green for bullish conditions (EMA > 50).
Maroon for bearish conditions (EMA < 50).
• Crossover Signals: Visual markers indicate when the EMA crosses above or below the 50-level, suggesting potential long (⦿ below bars) or short (⦿ above bars) opportunities.
• Alerts: Built-in alert conditions notify traders of bullish or bearish market signals when the EMA crosses the midline.
How It Works
Calculates a modified RSI based on the ratio of the close price to a moving average relative to the highest and lowest prices over a given period.
Applies an EMA to the modified RSI to reduce noise and highlight trends.
Uses thresholds (30, 50, 70) to define market conditions as overbought, oversold, or neutral.
Provides crossover signals when the EMA crosses the 50 midline, suggesting potential trend reversals or confirmations.
How to Use
• Identify Trends: Use the EMA's position relative to 50 and the bar colors to gauge market direction.
• Spot Reversals: Look for crossover signals near the midline to identify potential entry or exit points.
• Confirm Conditions: Combine with other trend-following or momentum indicators for enhanced confirmation.
Example Use Cases
• Trend Trading: Use bullish or bearish bar colors to confirm trends and time entries/exits.
• Reversal Signals: Monitor for EMA crossovers near 50 to identify potential reversals.
• Momentum Filtering: Employ the overbought/oversold zones to filter trades during ranging markets.
Disclaimer
This indicator is a tool for analyzing market momentum and trend behavior. It does not guarantee future performance and should be used in conjunction with proper risk management and other indicators for comprehensive analysis.
Momentum Indicator (ATR & Volume)Description:
The Momentum Indicator (ATR & Volume) is a specialized tool that identifies potential trend reversals and anomalies in financial markets. By amplifying the interaction between volatility (measured through the Average True Range, ATR) and trading volume, this indicator provides a nuanced approach to spotting critical market transitions. Spikes in the combined momentum value often signal the exhaustion of a current trend and the potential onset of a new one.
Core Functionality:
Average True Range (ATR):
The ATR is calculated over a user-defined period to measure market volatility. It reflects the degree of price movement, capturing both gap and range-based volatility.
Volume Smoothing:
A Simple Moving Average (SMA) of volume over a specified period is computed to standardize trading activity and provide a benchmark for comparison.
Momentum Calculation:
The raw momentum is determined as the difference between the current close and the previous close, offering a snapshot of directional strength.
Combined Momentum:
This innovative metric is derived by normalizing momentum using ATR and scaling it with the ratio of current volume to its SMA.
This approach enhances the signal's sensitivity to volatility and volume spikes, aligning it with market anomalies.
Visual Components:
Combined Momentum Line (Blue): Displays the amplified momentum, highlighting significant shifts in market behavior.
Neutral Line (Gray): A horizontal reference line at zero, separating bullish from bearish momentum.
Advanced Concepts:
Amplification of Anomalies:
By integrating ATR and volume dynamics, the indicator amplifies market irregularities, providing clarity during pivotal moments of trend transitions.
Spike Detection for Trend Reversals:
Spikes in the combined momentum often correlate with abrupt changes in volatility and volume, signaling potential trend reversals.
Applications:
Trend Reversal Identification:
Monitor for spikes in the combined momentum, which frequently mark the end of a trend and the start of a new directional move.
Market Anomalies:
Use this indicator to detect periods of heightened market activity driven by abnormal volatility or volume.
Volatility-Driven Signals:
Leverage the interaction between ATR and volume to gain insights into market strength and exhaustion points.
Additional Features:
Dynamic Labeling:
Displays real-time ATR and Volume SMA values directly on the chart for immediate context and decision-making.
Disclaimer:
This indicator is intended for informational and educational purposes only. It does not constitute financial advice. Traders should perform their own analysis and consult with professionals before making any investment decisions.
Gabriel's Bull Bear Power Elder's Force IndexGabriel's Bull Bear Power Elder's Force Index (BBP-EFI) Indicator!
The Bull and Bear Power indicators were created by Dr. Alexander Elder, a renowned trader, psychologist, and author. He introduced these indicators in his book, "Trading for a Living" (1993). These tools are part of Elder's broader trading system and are designed to measure the strength of buying (bull) and selling (bear) pressures in the market.
About the Bull and Bear Power Indicators
Bull Power:
Measures the strength of buyers.
Formula:
Bull Power = High Price - Exponential Moving Average (EMA(Close))
Bull Power2 = High Price − Exponential Moving Average (EMA(Close))
Bear Power:
Measures the strength of sellers.
Formula:
Bear Power = Low Price − Exponential Moving Average (EMA)
Bear Power2 = Low Price−Exponential Moving Average (EMA)
Purpose:
These indicators work together to determine the balance of power between bulls and bears.
When combined with a trend indicator (like an EMA), they help identify potential trend reversals or continuations.
Other Indicators/Systems by Dr. Alexander Elder
Elder-Ray Index:
The Bull Power and Bear Power indicators are part of the Elder-Ray Index system.
This system combines Bull Power, Bear Power, and an EMA to analyze market trends and momentum.
Elder's Triple Screen Trading System:
One of Dr. Elder's most famous contributions.
A multi-timeframe trading system that combines trend-following indicators on higher timeframes with oscillators on lower timeframes.
Example:
Screen 1: Identify the trend on a higher timeframe using moving averages or MACD.
Screen 2: Use an oscillator such as Elder's Bull-Bear Power! or (e.g., Stochastic, RSI) to find entry points.
Screen 3: Use price action or breakouts for precise entries.
Elder's Force Index:
Measures the strength of bulls or bears by combining price changes and volume.
Formula:
Force Index = (Close − Close 𝑡 − 1) × Volume
Force Index = (Close t − Close t−1) × Volume
This is useful for identifying trend strength, momentum, and potential reversals.
Legacy of Dr. Alexander Elder
Dr. Elder’s work emphasizes:
Psychology in Trading:
As a trained psychiatrist, he highlights the importance of emotional discipline and understanding market psychology.
Multi-Factor Analysis:
He encourages using multiple indicators and timeframes for comprehensive analysis.
His contributions, particularly the Bull/Bear Power, Elder's Force Index, and the Triple Screen Trading System, remain highly respected and widely used in modern trading. I put the two famous indicators together, and I use the Triple Screen Trading system to trade with it!
Gabriel's Elder's Two-In-One Indicator:
The Bull Bear Power Elder's Force Index (BBP-EFI) is a custom technical indicator designed to analyze market momentum and identify potential trend reversals by combining the concepts of Elder's Force Index with Bull and Bear Power indicators. It offers traders a comprehensive view of buying and selling pressures in the market, helping to make more informed trading decisions.
Key Components:
First is Elder's Force Index (EFI):
Definition: Measures the strength of price movements multiplied by volume, reflecting the force behind price changes.
Calculation:
EFI for Close Prices: eficlose = EMA(change(close) * volume, length)
EFI for High Prices: efihigh = EMA(change(high) * volume, length)
EFI for Low Prices: efilow = EMA(change(low) * volume, length)
Note: length is a user-defined input for the EMA period.
Second is calculating the Bull and Bear Power using EFI as the Source:
Bull Power: Reflects the ability of buyers to push prices above the average consensus (EMA of EFI Close).
Calculation: bullPower = efihigh - EMA(eficlose, lengthInput)
Bear Power: Reflects the ability of sellers to push prices below the average consensus.
Calculation: bearPower = efilow - EMA(eficlose, lengthInput)
Note: lengthInput is a separate user-defined input for the EMA period in Bull and Bear Power calculations.
Bull Bear Power (BBP):
Calculation: bbp = bullPower + bearPower
Interpretation:
Positive BBP: Indicates bullish momentum.
Negative BBP: Indicates bearish momentum.
Features:
Customizable Parameters:
Elder's Force Index Length (length): Adjusts the sensitivity of the EFI calculation.
Bull Bear Power Length (lengthInput): Adjusts the sensitivity of the Bull and Bear Power calculations.
Moving Average Type (maTypeInput): Options include SMA, EMA, SMMA (RMA), WMA, VWMA, or none.
Moving Average Length (maLengthInput): Period for smoothing the BBP.
Bollinger Bands (bbMultInput): Applies Bollinger Bands to the SMA of BBP with customizable standard deviation multiplier.
Overbought and Oversold Bands:
Dynamic Calculation: Based on historical BBP values over a period determined by the average of length and lengthInput.
Levels (leveling): User-defined percentage to determine the overbought and oversold thresholds.
Visualization: Plots upper (ub) and lower (db) bands on the chart with optional fill between them.
Divergence Detection:
Bullish Divergence: Occurs when price makes a lower low while BBP makes a higher low, suggesting a potential upward reversal.
Bearish Divergence: Occurs when price makes a higher high while BBP makes a lower high, suggesting a potential downward reversal.
Customization:
Lookback Periods (lookbackLeft, lookbackRight): Adjusts the sensitivity of pivot detection for divergences.
Range Settings (rangeUpper, rangeLower): Defines the acceptable range of bars between pivot points.
Alerts:
Overbought/Oversold Alerts: Can be set to trigger when BBP crosses the calculated bands.
Divergence Alerts: Notifies when bullish or bearish divergences are detected.
Visualization:
Histogram and Line Plot: BBP is displayed both as a histogram and a line for better visualization.
Color Coding: Positive values in green shades (bullish), negative values in red shades (bearish).
Moving Average Plot: Optional smoothing line plotted over the BBP.
Bollinger Bands: Upper and lower bands plotted when the SMA + Bollinger Bands option is selected.
Background Coloring: Highlights areas where BBP crosses over or under the moving average.
How to Use the Indicator:
Identifying Trends:
Bullish Momentum: When BBP is above zero and rising, it indicates increasing buying pressure.
Bearish Momentum: When BBP is below zero and falling, it indicates increasing selling pressure.
Overbought/Oversold Conditions:
Overbought: When BBP rises above the upper band (ub), the market may be overextended on the buy side.
Oversold: When BBP falls below the lower band (db), the market may be overextended on the sell side.
Divergence Signals:
Bullish Divergence: Consider buying opportunities when a bullish divergence is detected.
Bearish Divergence: Consider selling or shorting opportunities when a bearish divergence is detected.
Smoothing with Moving Averages:
Trend Confirmation: Use the moving average of BBP to confirm trends and filter out noise.
Crossovers: BBP crossing above the moving average may signal a bullish trend, while crossing below may signal a bearish trend.
Bollinger Bands Application:
Volatility Assessment: Bollinger Bands widen during high volatility and narrow during low volatility.
Breakout Signals: A move outside the bands may indicate a strong trend continuation or reversal.
Settings and Inputs:
Bull Bear Power - Elder's Force Index Settings:
Elder's Force Index Length (length): Default is 13.
Bull Bear Power Length (lengthInput): Default is 13.
Calculate Oversold and Overbought Bands (calculateBands): Enables band calculation for alerts.
Calculate Divergence (calculateDivergence): Enables divergence detection and alerts.
BBP-EFI Moving Average:
Type (maTypeInput): Choose from "None", "SMA", "SMA + Bollinger Bands", "EMA", "SMMA (RMA)", "WMA", "VWMA".
Length (maLengthInput): Default is 14.
BB StdDev (bbMultInput): Standard deviation multiplier for Bollinger Bands; default is 2.0.
Important Notes:
Volume Data Requirement: The indicator relies on volume data for the EFI calculation. If volume data is not available from your data provider, the indicator will not function and will display an error.
Customization: Adjust the input parameters to suit different time frames and trading styles. Shorter lengths make the indicator more sensitive but may increase false signals.
Complementary Use: It is recommended to use the BBP-EFI in conjunction with other technical analysis tools and not as a standalone indicator.
Alerts Configuration: Ensure alerts are properly set up in your trading platform to receive notifications based on the indicator's signals.
Example Usage Scenario:
Trend Confirmation: A trader observes that BBP has crossed above zero and the smoothing moving average, with a rising histogram. This suggests a strengthening bullish trend, and the trader considers entering a long position.
Overbought Condition: BBP reaches above the upper overbought band. The trader watches closely for any signs of reversal or divergence to secure profits or tighten stop-loss orders.
Bullish Divergence: Despite price making a lower low, BBP makes a higher low, triggering a bullish divergence alert. The trader anticipates a potential trend reversal and prepares to enter a long position.
By combining momentum, volume, and price action analysis, the Bull Bear Power Elder's Force Index indicator provides a multifaceted view of market dynamics, aiding traders in making more nuanced and timely trading decisions.
Happy Thanksgiving!
