Uptrick Signal Density Cloud🟪 Introduction
The Uptrick Signal Density Cloud is designed to track market direction and highlight potential reversals or shifts in momentum. It plots two smoothed lines on the chart and fills the space between them (often called a “cloud”). The bars on the chart change color depending on bullish or bearish conditions, and small triangles appear when certain reversal criteria are met. A metrics table displays real-time values for easy reference.
🟩 Why These Features Have Been Linked Together
1) Dual-Line Structure
Two separate lines represent shorter- and longer-term market tendencies. Linking them in one tool allows traders to view both near-term changes and the broader directional bias in a single glance.
2) Smoothed Averages
The script offers multiple smoothing methods—exponential, simple, hull, and an optimized approach—to reduce noise. Using more than one type of moving average can help balance responsiveness with stability.
3) Density Cloud Concept
Shading the region between the two lines highlights the gap or “thickness.” A wider gap typically signals stronger momentum, while a narrower gap could indicate a weakening trend or potential market indecision. When the cloud is too wide and crosses a certain threshold defined by the user, it indicates a possible reversal. When the cloud is too narrow it may indicate a potential breakout.
🟪 Why Use This Indicator
• Trend Visibility: The color-coded lines and bars make it easier to distinguish bullish from bearish conditions.
• Momentum Tracking: Thicker cloud regions suggest stronger separation between the faster and slower lines, potentially indicating robust momentum.
• Possible Reversal Alerts: Small triangles appear within thick zones when the indicator detects a crossover, drawing attention to key moments of potential trend change.
• Quick Reference Table: A metrics table shows line values, bullish or bearish status, and cloud thickness without needing to hover over chart elements.
🟩 Inputs
1) First Smoothing Length (length1)
Default: 14
Defines the lookback period for the faster line. Lower values make the line respond more quickly to price changes.
2) Second Smoothing Length (length2)
Default: 28
Defines the lookback period for the slower line or one of the moving averages in optimized mode. It generally responds more slowly than the faster line.
3) Extra Smoothing Length (extraLength)
Default: 50
A medium-term period commonly seen in technical analysis. In optimized mode, it helps add broader perspective to the combined lines.
4) Source (source)
Default: close
Specifies the price data (for example, open, high, low, or a custom source) used in the calculations.
5) Cloud Type (cloudType)
Options: Optimized, EMA, SMA, HMA
Determines the smoothing method used for the lines. “Optimized” blends multiple exponential averages at different lengths.
6) Cloud Thickness Threshold (thicknessThreshold)
Default: 0.5
Sets the minimum separation between the two lines to qualify as a “thick” zone, indicating potentially stronger momentum.
🟪 Core Components
1) Faster and Slower Lines
Each line is smoothed according to user preferences or the optimized technique. The faster line typically reacts more quickly, while the slower line provides a broader overview.
2) Filled Density Cloud
The space between the two lines is filled to visualize in which direction the market is trending.
3) Color-Coded Bars
Price bars adopt bullish or bearish colors based on which line is on top, providing an immediate sense of trend direction.
4) Reversal Triangles
When the cloud is thick (exceeding the threshold) and the lines cross in the opposite direction, small triangles appear, signaling a possible market shift.
5) Metrics Table
A compact table shows the current values of both lines, their bullish/bearish statuses, the cloud thickness, and whether the cloud is in a “reversal zone.”
🟩 Calculation Process
1) Raw Averages
Depending on the mode, standard exponential, simple, hull, or “optimized” exponential blends are calculated.
2) Optimized Averages (if selected)
The faster line is the average of three exponential moving averages using length1, length2, and extraLength.
The slower line similarly uses those same lengths multiplied by 1.5, then averages them together for broader smoothing.
3) Difference and Threshold
The absolute gap between the two lines is measured. When it exceeds thicknessThreshold, the cloud is considered thick.
4) Bullish or Bearish Determination
If sma1 (the faster line) is above sma2 (the slower line), conditions are deemed bullish; otherwise, they are bearish. This distinction is reflected in both bar colors and cloud shading.
5) Reversal Markers
In thick zones, a crossover triggers a triangle at the point of potential reversal, alerting traders to a possible trend change.
🟪 Smoothing Methods
1) Exponential (EMA)
Prioritizes recent data for quicker responsiveness.
2) Simple (SMA)
Takes a straightforward average of the chosen period, smoothing price action but often lagging more in volatile markets.
3) Hull (HMA)
Employs a specialized formula to reduce lag while maintaining smoothness.
4) Optimized (Blended Exponential)
Combines multiple EMA calculations to strike a balance between responsiveness and noise reduction.
🟩 Cloud Logic and Reversal Zones
Cloud thickness above the defined threshold typically signals exceeding momentum and can lead to a quick reversal. During these thick periods, if the width exceeds the defined threshold, small triangles mark potential reversal points. In order for the reversal shape to show, the color of the cloud has to be the opposite. So, for example, if the cloud is bearish, and exceeds momentum, defined by the user, a bullish signal appears. The opposite conditions for a bullish signal. This approach can help traders focus on notable changes rather than minor oscillations.
🟪 Bar Coloring and Layered Lines
Bars take on bullish or bearish tints, matching the faster line’s position relative to the slower line. The lines themselves are plotted multiple times with varying opacities, creating a layered, glowing look that enhances visibility without affecting calculations.
🟩 The Metrics Table
Located in the top-right corner of the chart, this table displays:
• SMA1 and SMA2 current values.
• Bullish or bearish alignment for each line.
• Cloud thickness.
• Reversal zone status (in or out of zone).
This numeric readout allows for a quick data check without hovering over the chart.
🟪 Why These Specific Moving Average Lengths Are Used
Default lengths of 14, 28, and 50 are common in technical analysis. Fourteen captures near-term price movement without overreacting. Twenty-eight, roughly double 14, provides a moderate smoothing level. Fifty is widely regarded as a medium-term benchmark. Multiplying each length by 1.5 for the slower line enhances separation when combined with the faster line.
🟩 Originality and Usefulness
• Multi-Layered Smoothing. The user can select from several moving average modes, including a unique “optimized” blend, possibly reducing random fluctuations in the market data.
• Combined Visual and Numeric Clarity. Bars, clouds, and a real-time table merge into a single interface, enabling efficient trend analysis.
• Focus on Significant Shifts. Thick cloud zones and triangles draw attention to potentially stronger momentum changes and plausible reversals.
• Flexible Across Markets. The adjustable lengths and threshold can be tuned to different asset classes (stocks, forex, commodities, crypto) and timeframes.
By integrating multiple technical concepts—cloud-based trend detection, color coding, reversal markers, and an immediate reference table—the Uptrick Signal Density Cloud aims to streamline chart reading and decision-making.
🟪 Additional Considerations
• Timeframes. Intraday, daily, and weekly charts each yield different signals. Adjust the smoothing lengths and threshold to suit specific trading horizons.
• Market Types. Though applicable across asset classes, parameters might need tweaking to address the volatility of commodities, forex pairs, or cryptocurrencies.
• Confirmation Tools. Pairing this indicator with volume studies or support/resistance analysis can improve the reliability of signals.
• Potential Limitations. No indicator is foolproof; sudden market shifts or choppy conditions may reduce accuracy. Cautious position sizing and risk management remain essential.
🟩 Disclaimers
The Uptrick Signal Density Cloud relies on historical price data and may lag sudden moves or provide false positives in ranging conditions. Always combine it with other analytical techniques and sound risk management. This script is offered for educational purposes only and should not be considered financial advice.
🟪 Conclusion
The Uptrick Signal Density Cloud blends trend identification, momentum assessment, and potential reversal alerts in a single, user-friendly tool. With customizable smoothing methods and a focus on cloud thickness, it visually highlights important market conditions. While it cannot guarantee predictive accuracy, it can serve as a comprehensive reference for traders seeking both a quick snapshot of the current trend and deeper insights into market dynamics.
Komut dosyalarını "zone" için ara
Waldo RSI :oWaldo RSI :o Indicator Guide
The Waldo RSI :o indicator is designed to complement the "Waldo RSI Overlay :o" by providing an RSI-based analysis on TradingView, focusing on macro shifts in market trends. Here's a comprehensive guide on how to use this indicator:
Key Features:
RSI Settings:
RSI Source: Choose from ON RSI, ON HIGH, ON LOW, ON CLOSE, or ON OPEN to determine how RSI calculates pivots.
RSI Settings:
Source: Default is (H+L)/2, but you can select any price for RSI calculation.
Length: Default RSI length is 7, which can be adjusted for sensitivity.
Trend Lines:
Show Trend Lines: Option to display trend lines based on RSI pivot points.
Zigzag Length: Determines pivot point sensitivity.
Confirm Length: Validates pivot points (default is 3).
Colors: Customize colors for Higher Highs (HH), Lower Highs (LH), Higher Lows (HL), and Lower Lows (LL) on the RSI.
Label Size and Line Width: Adjust the appearance of labels and lines.
Divergences:
Classic Divergences:
Show Classic Div: Toggle to reveal divergences where RSI and price move in opposite directions.
Colors: Set different colors for bullish and bearish divergence indicators.
Transparency and Line Width: Control the visual impact of divergence signals.
Hidden Divergences:
Similar settings for identifying hidden divergences, suggest trend continuation.
Breakout/Breakdown:
Show Breakout/Breakdown: Generates signals for RSI breakouts or breakdowns, used by "Waldo RSI Overlay :o" for visual chart signals.
Overbought/Oversold Zones:
Show Overbought and OverSold Zones: Highlights when RSI goes above 70 (overbought) or below 30 (oversold).
Moving Averages on RSI:
The default Moving Average (MA) settings are tailored to capture macro shifts in market trends:
Show Moving Averages: Option to overlay two MAs on the RSI for trend confirmation:
Fast RSI MA:
RSI Period: 50 (this is the period over which the RSI is calculated).
MA Length: 50 (the number of periods used for the moving average of the RSI).
Slow RSI MA:
RSI Period: 50 (same as fast for consistency in RSI calculation).
MA Length: 200 (longer term for capturing broader trends).
Crossover Signals: The RSI changes color from red to green based on these moving average crossovers:
When the Fast MA (50 period) crosses above the Slow MA (200 period), the RSI turns green, indicating potential bullish conditions or momentum shift.
Conversely, when the Fast MA crosses below the Slow MA, the RSI turns red, suggesting bearish conditions or a shift back towards a downtrend.
This 50-period RSI crossover setting is used to identify overall macro shifts in the market, providing a clear visual cue for traders looking at longer-term trends.
Ghost Lines (Optional):
Ghost Lines: Option to limit how far RSI trend lines extend, helping to keep the chart less cluttered.
How to Use the Indicator:
Setup:
Configure RSI by choosing the source and setting the length to match your trading style.
Set the zigzag and confirm lengths for appropriate pivot detection.
Trend Analysis:
Monitor the RSI for trend changes using the colored trend lines and labels.
Divergence Detection:
Look for RSI and price divergences to anticipate potential reversals or continuations.
Breakout/Breakdown:
Use these signals in conjunction with "Waldo RSI Overlay :o" for price action confirmation.
Overbought/Oversold:
Identify when the market might be due for a correction or continued momentum.
Moving Averages:
Focus on the color changes in RSI to understand macro trend shifts with the default 50/200 period setup.
Ghost Lines:
Enable for a cleaner chart if you don't need trend lines extending indefinitely.
Usage Tips:
Combine with other indicators for confirmation, as no single tool is foolproof.
Adjust settings to suit different market conditions or trading timeframes.
Use in tandem with "Waldo RSI Overlay :o" for a full trading signal system.
Remember, trading involves significant risk, and historical data does not guarantee future performance. Use this indicator as part of a broader trading strategy.
Dynamic Customizable 50% Line & Daily High/Low + True Day OpenA Unique Indicator for Precise Market-Level Analysis
This indicator is a fully integrated solution that automates complex market-level calculations and visualizations, offering traders a tool that goes beyond the functionality of existing open-source alternatives. By seamlessly combining several trading concepts into a single script, it delivers efficiency, accuracy, and customization that cater to both novice and professional traders.
Key Features: A Breakdown of What Makes It Unique
1. Adaptive Daily Highs and Lows
Automatically detects and plots daily high and low levels based on the selected time frame, dynamically updating in real time.
Features session-based adjustments, allowing traders to focus on levels that matter for specific trading sessions (e.g., London, New York).
Fully customizable styling, visibility, and alerts tailored to each trader’s preferences.
How It Works:
The indicator calculates daily high and low levels directly from price data, integrating session-specific time offsets to account for global trading hours. These levels provide traders with clear visual markers for key liquidity zones.
2. Automated ICT 50% Range Line
A pioneering implementation of ICT’s mid-range concept, this feature dynamically calculates and displays the midpoint of the daily range.
Offers traders a visual guide to identify premium and discount zones, aiding in determining market bias and potential trade setups.
How It Works:
The script calculates the range between the day’s high and low, dividing it by two to generate the midline. This line updates in real-time, ensuring that traders always see the most current premium and discount levels as price action evolves.
3. Dynamic Market Open Levels
Plots session opens (e.g., Asia, London, New York) and the True Day Open to provide actionable reference points for intra-day trading strategies.
Enhances precision in identifying liquidity shifts and aligning trades with institutional price movements.
How It Works:
The indicator uses predefined session times to calculate and display the opening levels for key trading sessions. It dynamically adjusts for time zones, ensuring accuracy regardless of the trader’s location.
4. Custom Watermark for Enhanced Visualization
Includes an optional watermark feature that allows users to display custom text on their charts.
Ideal for personalization, branding, or highlighting session notes without disrupting the clarity of the chart.
Why This Indicator Stands Out
First-to-Market Automation:
While the ICT 50% range line is a widely recognized concept, this is the first script to automate its calculation, combining it with other pivotal trading levels in a single tool.
All-in-One Functionality:
Unlike open-source alternatives that focus on individual features, this script integrates daily highs/lows, mid-range levels, session opens, and customizable watermarks into one cohesive system. The consolidation reduces the need for multiple indicators and ensures a clean, efficient chart setup.
Dynamic Customization:
Every feature can be adjusted to align with a trader’s strategy, time zone, or aesthetic preferences. This level of adaptability is unmatched in existing tools.
Proprietary Logic:
The indicator’s underlying calculations are built from scratch, leveraging advanced programming techniques to ensure accuracy and reliability. These proprietary methods differentiate it from similar open-source scripts.
How to Use This Indicator
Apply the Indicator:
Add it to your TradingView chart from the library.
Configure Settings:
Use the intuitive settings panel to adjust plotted levels, colors, styles, and visibility. Tailor the indicator to your trading strategy.
Incorporate into Analysis:
Combine the plotted levels with your preferred trading approach to identify liquidity zones, establish market bias, and pinpoint potential reversals or entries.
Stay Focused:
With all key levels automated and updated in real time, traders can focus on execution rather than manual plotting.
Originality and Justification for Closed Source
This script is closed-source due to its unique combination of features and proprietary logic that automates complex trading concepts like the ICT 50% range line and session-specific levels. Open-source alternatives lack this level of integration and customization, making this indicator a valuable and original contribution to the TradingView ecosystem.
What Sets It Apart from Open-Source Scripts?
Unlike open-source tools, this indicator doesn’t just replicate individual features—it enhances and integrates them into a seamless, all-in-one solution that offers traders a more efficient and effective way to analyze the market.
Dekkapok Premium Prices and EMA360Overview:
The EMA360 Premium Levels indicator is designed to help traders identify key price levels above the EMA360 (Exponential Moving Average) on a daily timeframe. These levels, referred to as "premium levels" are calculated as multiples of the EMA360 and can act as potential resistance or support zones for price action analysis.
Features:
EMA360 Calculation:
The script calculates the EMA360 using the daily timeframe (or any user-specified timeframe).
EMA360 is plotted as a bold blue line for clear visibility.
Premium Levels:
Multiple levels above the EMA360 are plotted as horizontal green lines.
These levels are calculated by multiplying the EMA360 value by user-defined multipliers (e.g., 1.2x, 1.3x, etc.).
Premium levels can help identify overbought or extended price zones relative to EMA360.
Customizable Inputs:
EMA Length: Default is set to 360, but users can adjust the EMA length as needed.
Timeframe: EMA360 is calculated using the daily timeframe by default, but any timeframe can be selected.
Multipliers: Traders can input their desired multipliers (e.g., 1.2, 1.3, 1.5) as a comma-separated list.
Clean Visualization:
EMA360 and premium levels are plotted directly on the price chart for intuitive analysis.
Premium level lines are semi-transparent green to minimize clutter while maintaining focus on critical levels.
Use Cases:
Trend Analysis: Use the EMA360 to identify the broader market trend. Prices above the EMA360 generally indicate an uptrend, while prices below may indicate a downtrend.
Overextension Zones: Premium levels help traders identify zones where the price may be overbought or overextended relative to EMA360.
Dynamic Support/Resistance: The premium levels can act as dynamic resistance zones during uptrends and support zones during pullbacks.
How to Use:
Apply the indicator to your chart in TradingView.
Observe the EMA360 line to understand the market trend.
Use the green premium level lines to identify potential resistance zones as the price moves above the EMA360.
Customization Options:
Adjust the EMA Length and Timeframe to match your trading style.
Modify the Premium Multipliers to suit your market analysis needs (e.g., add or reduce levels like 1.1x, 1.8x, etc.).
This indicator is especially useful for trend-following traders who want to leverage EMA-based levels for strategic decision-making.
- Dekkapok
Dekkapok Premium Prices and EMA360 [Clean Ver.]Overview:
The EMA360 Premium Levels indicator is designed to help traders identify key price levels above the EMA360 (Exponential Moving Average) on a daily timeframe. These levels, referred to as "premium levels" are calculated as multiples of the EMA360 and can act as potential resistance or support zones for price action analysis.
Features:
EMA360 Calculation:
The script calculates the EMA360 using the daily timeframe (or any user-specified timeframe).
EMA360 is plotted as a bold blue line for clear visibility.
Premium Levels:
Multiple levels above the EMA360 are plotted as horizontal green lines.
These levels are calculated by multiplying the EMA360 value by user-defined multipliers (e.g., 1.2x, 1.3x, etc.).
Premium levels can help identify overbought or extended price zones relative to EMA360.
Customizable Inputs:
EMA Length: Default is set to 360, but users can adjust the EMA length as needed.
Timeframe: EMA360 is calculated using the daily timeframe by default, but any timeframe can be selected.
Multipliers: Traders can input their desired multipliers (e.g., 1.2, 1.3, 1.5) as a comma-separated list.
Clean Visualization:
EMA360 and premium levels are plotted directly on the price chart for intuitive analysis.
Premium level lines are semi-transparent green to minimize clutter while maintaining focus on critical levels.
Use Cases:
Trend Analysis: Use the EMA360 to identify the broader market trend. Prices above the EMA360 generally indicate an uptrend, while prices below may indicate a downtrend.
Overextension Zones: Premium levels help traders identify zones where the price may be overbought or overextended relative to EMA360.
Dynamic Support/Resistance: The premium levels can act as dynamic resistance zones during uptrends and support zones during pullbacks.
How to Use:
Apply the indicator to your chart in TradingView.
Observe the EMA360 line to understand the market trend.
Use the green premium level lines to identify potential resistance zones as the price moves above the EMA360.
Customization Options:
Adjust the EMA Length and Timeframe to match your trading style.
Modify the Premium Multipliers to suit your market analysis needs (e.g., add or reduce levels like 1.1x, 1.8x, etc.).
This indicator is especially useful for trend-following traders who want to leverage EMA-based levels for strategic decision-making.
- Dekkapok
Leverage Aware Trade OptimizerWelcome to the Leverage-Aware Trade Optimizer (LATO)! I’m thrilled to have you exploring this dynamic algorithm! LATO combines advanced market oscillation tracking, leverage-aware trade optimization, and real-time market analysis to help you make smarter, more informed trading decisions. Whether you're just starting or you’re an experienced trader, LATO provides powerful tools and insights to enhance your strategies. LATO is here to support you in optimizing your trades with precision, so feel free to dive in and explore all the features. Let’s make your trading experience as effective and rewarding as possible. Safe trading!
Leverage-Aware Trade Optimizer (LATO)
Short Title: LATO
Category: Trading Tools / Technical Analysis
Overview
The Leverage-Aware Trade Optimizer (LATO) is a powerful algorithm designed to track and analyze market oscillations, identify reversal zones, and provide dynamic trading levels for optimal decision-making. With built-in risk management features, LATO enhances traders’ ability to make well-informed decisions based on a comprehensive range of market indicators, including price oscillations, probabilities, and leverage-related risks.
Key Features
Comprehensive Market Oscillation Tracking: LATO utilizes advanced indicators such as the Indexed Position Oscillator (IPO), Candle Relative Percentage (CRP), and Oscillating Range Indicator (ORI) to track price fluctuations and detect key market oscillations, providing a detailed view of price movements.
Dynamic Price Levels for Trading Decisions: The script calculates critical price levels such as WAP, WBP, XAP, and XBP. These weighted and expanded prices help identify potential support and resistance zones for accurate trade entries and exits.
Reversal Detection and Trend Identification: LATO is designed to recognize top and bottom reversal zones using user-defined thresholds (e.g., upper_reversal, lower_reversal). The algorithm signals potential trend changes with event markers such as UP, DOWN, UIP, and DIP, enabling traders to anticipate market reversals.
Risk and Leverage Mapping: By estimating liquidation levels for various leverage values (5x, 10x, 20x, etc.), LATO assists in risk management, helping traders visualize leverage exposure and optimize their trades according to risk tolerance.
Integrated Visualization and Event Labels: LATO enhances visual analysis by plotting key levels, trend lines, and event markers on the chart. Custom labels summarize critical values, including SOD (Sell Odds), BOD (Buy Odds), ORI (Oscillating Range Indicator), and PVI (Price Volatility Index), offering a quick, actionable summary for traders.
User Inputs
Orders Deviation (order_deviation): Controls the deviation for calculating trade levels.
Top Reversal (upper_reversal): Sets the threshold for the upper reversal zone.
Bottom Reversal (lower_reversal): Sets the threshold for the lower reversal zone.
How It Works
LATO tracks market oscillations through the Indexed Position Oscillator (IPO) and Candle Relative Percentage (CRP), dynamically adjusting as the market fluctuates. The algorithm then identifies key levels using weighted prices (e.g., WAP, WBP) and generates reversal signals based on defined thresholds.
Once the Leverage-Aware Trade Optimizer (LATO) is applied to a chart, it automatically calculates dynamic support and resistance levels and identifies potential buying or selling opportunities. The script also plots liquidation zones based on different leverage levels and visualizes these areas through color-coded lines.
Use Case Scenarios
Trend Reversal Detection: Identify when the market is likely to reverse based on the ORI and price action.
Dynamic Price Levels: Use the weighted price levels and trend lines to pinpoint entry/exit points.
Leverage Risk Management: Monitor liquidation levels and use them for managing risk while trading with leverage.
Oscillation Tracking: Track key oscillations for detecting overbought or oversold conditions.
Alert Setup for LATO
You can set up alerts based on the key conditions like UP, DOWN, UIP, and DIP, as well as specific market movements.
Down Trend Alert (DOWN): Alerts when there’s a downtrend, triggered by a crossover of WBP and BL5, with specific conditions for ORI and SOD.
Up Trend Alert (UP): Alerts when there’s an uptrend, triggered by a crossunder of WAP and SL5, with ORI below -0.5.
Upper Reversal Alert (UIP): Alerts when ORI crosses below the lower_reversal threshold.
Downward Reversal Alert (DIP): Alerts when ORI crosses above the upper_reversal threshold.
Conclusion
The Leverage-Aware Trade Optimizer (LATO) is a comprehensive trading tool designed for traders seeking to optimize their trade entries and exits. By combining multiple indicators, dynamic price levels, and reversal zone detection, LATO offers an advanced approach to market analysis and decision-making. Whether you’re trading with leverage or simply looking for trend confirmation, LATO provides the insights you need to maximize your trading potential.
Notes
This script is designed to be used on any time frame.
Adjust the order_deviation parameter based on the asset volatility you are trading.
The reversal thresholds (upper and lower) should be fine-tuned depending on market conditions.
Dabel MS + FVGThis script is designed to assist traders by identifying market structures, imbalances, and potential trade opportunities using Break of Structure (BOS) and Market Structure Shifts (MSS). It visually highlights imbalances in price action, key pivots, and market structure changes, providing actionable information for making trading decisions.
Key features:
Imbalances Detection: Highlights bullish and bearish price gaps (Fair Value Gaps) using colored boxes. Users can choose the line style (solid, dashed, or dotted) for imbalance midlines.
Market Structure Analysis: Tracks pivot highs and lows to identify BOS and MSS in two separate market structures with adjustable pivot strengths.
Customizable Visualization: Allows users to choose line styles, colors, and display options for both imbalances and market structures.
Alerts: Alerts traders when BOS or MSS occur, helping to monitor the market effectively.
Trading Strategy
Imbalance Trading:
Imbalances (gaps) represent areas where supply or demand was left unfilled. These gaps often act as magnet zones where the price revisits to fill.
Bullish Imbalance: Look for buying opportunities when price enters a green imbalance zone.
Bearish Imbalance: Look for selling opportunities when price enters a red imbalance zone.
Use the midline of the imbalance box as a key reference point for potential reversals.
Break of Structure (BOS) and Market Structure Shift (MSS):
BOS: Indicates a continuation of the existing trend. For example:
Bullish BOS: Look for continuation in the uptrend after a high is broken.
Bearish BOS: Look for continuation in the downtrend after a low is broken.
MSS: Suggests a potential reversal in market structure. For example:
Bullish MSS: Indicates a possible shift from a bearish to bullish market.
Bearish MSS: Indicates a potential shift from a bullish to bearish market.
Multiple Market Structures:
This script provide two sets of market structures, allowing traders to compare short-term and long-term trends.
Adjust the pivot strength to suit your trading style (lower for intraday trading, higher for swing or positional trading).
Entry and Exit:
Entry: Look for entries near imbalances or after confirmed BOS/MSS in line with the overall trend.
Exit: Place stop-loss below/above recent pivots and take profit at nearby support/resistance or imbalance zones.
For New Traders
Focus on Basics: Understand what BOS and MSS mean and how they signal trend direction or reversals.
Use Alerts: Rely on the script's alert system to catch important moments without staring at charts all day.
Start Small: Test this strategy on a demo account before using it live. You can understand it more with practice.
Adaptive Range Scalper - KetBotAIThe Adaptive Scalper is designed to dynamically adjust entry, take-profit (TP), and stop-loss (SL) levels based on the latest market price. It combines multiple tools to provide traders with actionable insights, suitable for a range of trading styles and timeframes.
How the Indicator Works
Dynamic Levels:
- Yellow Dotted Line: Represents the entry level, following the latest price dynamically.
- Green Line: The Take Profit (TP) level, calculated as a multiple of the current price, adapts in real-time.
- Red Line: The Stop Loss (SL) level, placed below the price and also dynamically adjusts.
Bollinger Bands:
Provides context for market volatility and potential overbought/oversold zones.
Narrowing bands signal consolidation, while expanding bands indicate increased volatility.
Buy and Sell Signals:
Buy Signal: Triggered when the price crosses above the lower Bollinger Band.
Sell Signal: Triggered when the price crosses below the upper Bollinger Band.
These signals help traders time entries and exits based on momentum shifts.
Risk/Reward Analysis:
Visual shading shows the favorable risk/reward zone between the stop loss and take profit levels.
Timeframe Suggestions
Short-Term Traders (Scalping):
Use on 5-minute to 15-minute charts.
Focus on high-volatility periods for quick entries and exits.
Intraday Traders:
Ideal for 30-minute to 1-hour charts.
Provides more stable signals and less noise.
Swing Traders:
Best suited for 4-hour or daily charts.
Captures broader trends with fewer signals, allowing for larger moves.
Tool Combination
Volume Profile:
Combine with volume-based tools to confirm key support/resistance zones around TP and SL levels.
Trend Indicators:
Use with Moving Averages (e.g., 20-period or 50-period) to identify the broader trend direction.
Example: Only take buy signals in an uptrend and sell signals in a downtrend.
Momentum Oscillators:
Pair with tools like RSI or MACD to avoid entering overbought/oversold conditions.
Support/Resistance Lines:
Manually mark significant levels to confirm alignment with the indicator’s TP and SL zones.
Useful Advice for Traders
Risk Management:
- Always assess the risk/reward ratio; aim for at least 1:2 (risking 1 to gain 2).
- Adjust the multiplier to match your trading style (e.g., higher multiplier for swing trades, lower for scalping).
Avoid Overtrading:
Use the indicator in conjunction with clear rules to avoid false signals during low-volatility periods.
Monitor market volatility:
Pay attention to narrowing Bollinger Bands, which signal consolidations. Avoid trading until a breakout occurs.
Test on Demo Accounts:
Practice using the indicator on a demo account to understand its behavior across different assets and timeframes.
Focus on High-Liquidity Markets:
For the best results, trade highly liquid instruments like major currency pairs, gold, or stock indices.
Summary
The Adaptive Range Indicator dynamically adjusts to market conditions, offering clear entry and exit levels. By combining it with Bollinger Bands and other tools, traders can better navigate market trends and avoid noise. It’s versatile across multiple timeframes and assets, making it a valuable addition to any trader’s toolkit.
Katalyst's Opening Range BreakoutKatalyst's Opening Range Breakout + No Trade Zone
📜 Overview:
This indicator allows traders to visualize the high and low of the opening range for a user-selected timeframe (e.g., 30s, 1m, 5m, 15m). It features fully customizable lines, labels, and an optional **No Trade Zone** fill to help you identify breakout levels with ease.
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🎯 Key Features:
1. **Customizable Opening Range**:
- Select your preferred opening range duration: **30 seconds, 1 minute, 2 minutes, 5 minutes, 10 minutes, or 15 minutes**.
- The indicator calculates and plots the **high** and **low** of the selected opening range.
2. **Dynamic Line Styling**:
- Choose the **line color**, **transparency**, and **style**: **Solid, Dashed, or Dotted**.
- Lines extend to the right of the chart for clarity.
3. **No Trade Zone** *(Optional / Disabled by default)*:
- When enabled, fills the area between the high and low lines with a customizable **color and transparency**.
- Helps visually identify consolidation areas where trading might be avoided.
4. **Labels for Precision**:
- Clearly displays the **Opening Range High** and **Low** values.
- Labels are color-coded and positioned dynamically for easy interpretation.
5. **Clean and Efficient Updates**:
- The indicator deletes old lines, labels, and fills before creating new ones, ensuring a clutter-free chart.
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⚙️ How to Use:
1. **Select Your Timeframe**:
- From the settings, choose your desired opening range duration: 30s, 1m, 2m, 5m, 10m, or 15m.
2. **Customize the Visuals**:
- Adjust line color, style, and transparency.
- Enable the **No Trade Zone** for a transparent background fill between the high and low lines.
3. **Interpret the Breakout**:
- Watch for price movements above or below the **opening range** to identify potential breakout opportunities.
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🛠 Settings:
Opening Range Duration: Select the timeframe for the opening range (30s, 1m, 2m, 5m, 10m, 15m).
Line Color: Set the color of the range lines.
Line Transparency: Adjust the transparency of the lines (0 = solid, 100 = invisible).
Line Style: Choose line style: Solid, Dashed, or Dotted.
Label Colors: Customize the label colors for the high and low values.
Enable No Trade Zone: Fill the area between high and low lines with a transparent color.
No Trade Zone Color: Set the fill color for the no trade zone.
No Trade Zone Transparency: Adjust the transparency of the no trade zone fill.
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📈 Ideal For
Day traders and scalpers looking to trade **breakouts**.
Traders who want to identify areas of consolidation visually.
Anyone who relies on the **opening range** for their trading strategy.
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🔍 Example Usage:
Set the opening range to **5 minutes** and enable the **No Trade Zone** with a light red fill.
Watch for price to break above or below the high/low lines to signal potential trade opportunities.
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✨ Why Use This Indicator?
This script simplifies your breakout strategy by providing a clear, visually appealing representation of the opening range. The flexible customization options and the optional **No Trade Zone** make it a powerful tool for identifying high-probability trades.
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Let me know if you need any additional tweaks or clarifications for this description. It's all set to help traders understand and use your powerful script! 🚀📈
Fibonacci Confluence Toolkit [LuxAlgo]The Fibonacci Confluence Toolkit is a technical analysis tool designed to help traders identify potential price reversal zones by combining key market signals and patterns. It highlights areas of interest where significant price action or reactions are anticipated, automatically applies Fibonacci retracement levels to outline potential pullback zones, and detects engulfing candle patterns.
Its unique strength lies in its reliance solely on price patterns, eliminating the need for user-defined inputs, ensuring a robust and objective analysis of market dynamics.
🔶 USAGE
The script begins by detecting CHoCH (Change of Character) points—key indicators of shifts in market direction. This script integrates the principles of pure price action as applied in Pure-Price-Action-Structures , where further details on the detection process can be found.
The detected CHoCH points serve as the foundation for defining an Area of Interest (AOI), a zone where significant price action or reactions are anticipated.
As new swing highs or lows emerge within the AOI, the tool automatically applies Fibonacci retracement levels to outline potential retracement zones. This setup enables traders to identify areas where price pullbacks may occur, offering actionable insights into potential entries or reversals.
Additionally, the toolkit highlights engulfing candle patterns within these zones, further refining entry points and enhancing confluence for better-informed trading decisions based on real-time trend dynamics and price behavior.
🔶 SETTINGS
🔹 Market Patterns
Bullish Structures: Enable or disable all bullish components of the indicator.
Bearish Structures: Enable or disable all bearish components of the indicator.
Highlight Area of Interest: Toggle the option to highlight the Areas of Interest (enabled or disabled).
CHoCH Line: Choose the line style for the CHoCH (Solid, Dashed, or Dotted).
Width: Adjust the width of the CHoCH line.
🔹 Retracement Levels
Choose which Fibonacci retracement levels to display (e.g., 0, 0.236, 0.382, etc.).
🔹 Swing Levels & Engulfing Patterns
Swing Levels: Select how swing levels are marked (symbols like ◉, △▽, or H/L).
Engulfing Candle Patterns: Choose which engulfing candle patterns to detect (All, Structure-Based, or Disabled).
🔶 RELATED SCRIPTS
Pure-Price-Action-Structures.
ImbalancesThis Pine Script is a trading indicator designed to identify imbalances in the market, specifically on candlestick charts. An imbalance refers to situations where there is a significant difference between buyers and sellers, which can create gaps or areas of inefficiency in the price. These imbalances often act as zones where price may return to "fill" or correct these inefficiencies.
1. Identifying Imbalances
The script analyzes candlestick patterns to detect imbalances based on the relationship between the highs, lows, and closes of consecutive candles. Specifically, it looks for:
Top Imbalances (Bearish): Areas where selling pressure has dominated, causing inefficiencies in the price. These are represented by patterns like multiple consecutive bearish candles or bearish gaps.
Bottom Imbalances (Bullish): Areas where buying pressure has dominated, leading to bullish gaps or inefficiencies.
When an imbalance is detected, the script highlights the area using visual boxes on the chart.
2. Visual Representation
The indicator uses colored boxes to show imbalances directly on the chart:
Top (Bearish) Imbalances: Highlighted using shades of red.
Bottom (Bullish) Imbalances: Highlighted using shades of green.
The boxes are further categorized into three states based on their level of mitigation:
Unmitigated: The imbalance has not been "filled" by price yet.
Partially Mitigated: Price has entered the imbalance zone but not completely filled it.
Fully Mitigated: Price has completely filled the imbalance zone.
3. Mitigation Logic
The concept of mitigation refers to the price revisiting an imbalance zone to correct the inefficiency:
If price fully or partially revisits an imbalance zone, the box's color changes to indicate the mitigation level (e.g., from unmitigated to partially/fully mitigated).
Fully mitigated boxes may be removed or recolored, depending on user preferences.
4. User Customization
The script provides several inputs to customize its behavior:
Enable or disable top and bottom imbalance detection.
Color settings: Users can define different colors for unmitigated, partially mitigated, and fully mitigated imbalances.
Mitigation display options: Users can choose whether to show fully mitigated imbalances on the chart or remove them.
5. Key Calculations
Imbalance Size: The size of the imbalance is calculated as the price difference between a candle's high and low across the relevant pattern.
Pattern Detection: The script checks for specific candlestick patterns (e.g., three consecutive bearish candles) to identify potential imbalances.
6. Practical Use Case
This indicator is useful for traders who:
Rely on supply and demand zones for their trading strategies.
Look for areas where price is likely to return (retesting unmitigated imbalances can signal potential trade setups).
Want to visually track market inefficiencies over time.
In Summary
The "Imbalances" indicator highlights and tracks price inefficiencies on candlestick charts. It marks zones where buying or selling pressure was dominant, and it dynamically updates these zones based on price action to indicate their mitigation status. This tool is particularly helpful for traders who use price action and market structure in their strategies.
Advanced MVRV Trend AnalyzerThe "Advanced MVRV Trend Analyzer" is a sophisticated trading tool designed for the TradingView platform that enhances traditional Market Value to Realized Value (MVRV) analysis. It provides a multi-timeframe perspective of market valuation dynamics by comparing the current market price to the realized price across short-term, mid-term, and long-term cohorts. This indicator is particularly useful for cryptocurrency traders and investors who seek deeper insights into potential overvaluation or undervaluation conditions in the market.
Key Features
Multiple Timeframes:
Analyzes market conditions across three distinct timeframes: short-term (14 days), mid-term (50 days), and long-term (200 days).
Moving Averages: Includes moving averages for each MVRV ratio to smooth out short-term fluctuations and highlight longer-term trends.
Dynamic Thresholds: Provides dynamic color-coded backgrounds that highlight overvalued and undervalued market conditions based on predefined thresholds.
How to Use
Adding the Indicator:
Open your TradingView chart.
Click on "Indicators" at the top of your screen.
Search for "Advanced MVRV Trend Analyzer" and add it to your chart.
Interpreting the Indicator:
MVRV Lines: Each of the three MVRV lines (short-term, mid-term, long-term) reflects how much higher or lower the current market price is compared to the average price at which coins were last moved. A value above 1 indicates that the current price is higher than the realized price, suggesting overvaluation. Conversely, a value below 1 suggests undervaluation.
Moving Averages: The moving averages of the MVRV ratios help identify the underlying trend. If the MVRV line deviates significantly from its moving average, it might indicate a potential reversal or continuation of the current trend.
Color-coded Backgrounds:
Red background indicates an overvalued condition where the MVRV ratio exceeds 1.5, suggesting caution as the market may be overheated.
Green background indicates an undervalued condition where the MVRV ratio is below 0.5, potentially signaling a buying opportunity.
Trading Strategies:
Overvalued Zones: Consider taking profits or setting stop-loss orders when the indicator shows a prolonged red background, especially if supported by other bearish signals.
Undervalued Zones: Look for buying opportunities when the indicator shows a prolonged green background, especially if other bullish signals are present.
Combining with Other Indicators:
Enhance your analysis by combining the "Advanced MVRV Trend Analyzer" with other technical indicators such as RSI, MACD, or volume-based tools to confirm trends and signals.
Conclusion
The "Advanced MVRV Trend Analyzer" offers a nuanced view of market dynamics, providing traders with valuable insights into when a market may be approaching extremes. By utilizing this indicator, traders can better time their entries and exits, manage risk, and align their strategies with underlying market trends.
Silver Bullet ICT Strategy [TradingFinder] 10-11 AM NY Time +FVG🔵 Introduction
The ICT Silver Bullet trading strategy is a precise, time-based algorithmic approach that relies on Fair Value Gaps and Liquidity to identify high-probability trade setups. The strategy primarily focuses on the New York AM Session from 10:00 AM to 11:00 AM, leveraging heightened market activity within this critical window to capture short-term trading opportunities.
As an intraday strategy, it is most effective on lower timeframes, with ICT recommending a 15-minute chart or lower. While experienced traders often utilize 1-minute to 5-minute charts, beginners may find the 1-minute timeframe more manageable for applying this strategy.
This approach specifically targets quick trades, designed to take advantage of market movements within tight one-hour windows. By narrowing its focus, the Silver Bullet offers a streamlined and efficient method for traders to capitalize on liquidity shifts and price imbalances with precision.
In the fast-paced world of forex trading, the ability to identify market manipulation and false price movements is crucial for traders aiming to stay ahead of the curve. The Silver Bullet Indicator simplifies this process by integrating ICT principles such as liquidity traps, Order Blocks, and Fair Value Gaps (FVG).
These concepts form the foundation of a tool designed to mimic the strategies of institutional players, empowering traders to align their trades with the "smart money." By transforming complex market dynamics into actionable insights, the Silver Bullet Indicator provides a powerful framework for short-term trading success
Silver Bullet Bullish Setup :
Silver Bullet Bearish Setup :
🔵 How to Use
The Silver Bullet Indicator is a specialized tool that operates within the critical time windows of 9:00-10:00 and 10:00-11:00 in the forex market. Its design incorporates key principles from ICT (Inner Circle Trader) methodology, focusing on concepts such as liquidity traps, CISD Levels, Order Blocks, and Fair Value Gaps (FVG) to provide precise and actionable trade setups.
🟣 Bullish Setup
In a bullish setup, the indicator starts by marking the high and low of the session, serving as critical reference points for liquidity. A typical sequence involves a liquidity grab below the low, where the price manipulates retail traders into selling positions by breaching a key support level.
This movement is often orchestrated by smart money to accumulate buy orders. Following this liquidity grab, a market structure shift (MSS) occurs, signaled by the price breaking the CISD Level—a confirmation of bullish intent. The indicator then highlights an Order Block near the CISD Level, representing the zone where institutional buying is concentrated.
Additionally, it identifies a Fair Value Gap, which acts as a high-probability area for price retracement and trade entry. Traders can confidently take long positions when the price revisits these zones, targeting the next significant liquidity pool or resistance level.
Bullish Setup in CAPITALCOM:US100 :
🟣 Bearish Setup
Conversely, in a bearish setup, the price manipulates liquidity by creating a false breakout above the high of the session. This move entices retail traders into long positions, allowing institutional players to enter sell orders.
Once the price reverses direction and breaches the CISD Level to the downside, a change of character (CHOCH) becomes evident, confirming a bearish market structure. The indicator highlights an Order Block near this level, indicating the origin of the institutional sell orders, along with an associated FVG, which represents an imbalance zone likely to be revisited before the price continues downward.
By entering short positions when the price retraces to these levels, traders align their strategies with the anticipated continuation of bearish momentum, targeting nearby liquidity voids or support zones.
Bearish Setup in OANDA:XAUUSD :
🔵 Settings
Refine Order Block : Enables finer adjustments to Order Block levels for more accurate price responses.
Mitigation Level OB : Allows users to set specific reaction points within an Order Block, including: Proximal: Closest level to the current price. 50% OB: Midpoint of the Order Block. Distal: Farthest level from the current price.
FVG Filter : The Judas Swing indicator includes a filter for Fair Value Gap (FVG), allowing different filtering based on FVG width: FVG Filter Type: Can be set to "Very Aggressive," "Aggressive," "Defensive," or "Very Defensive." Higher defensiveness narrows the FVG width, focusing on narrower gaps.
Mitigation Level FVG : Like the Order Block, you can set price reaction levels for FVG with options such as Proximal, 50% OB, and Distal.
CISD : The Bar Back Check option enables traders to specify the number of past candles checked for identifying the CISD Level, enhancing CISD Level accuracy on the chart.
🔵 Conclusion
The Silver Bullet Indicator is a cutting-edge tool designed specifically for forex traders who aim to leverage market dynamics during critical liquidity windows. By focusing on the highly active 9:00-10:00 and 10:00-11:00 timeframes, the indicator simplifies complex market concepts such as liquidity traps, Order Blocks, Fair Value Gaps (FVG), and CISD Levels, transforming them into actionable insights.
What sets the Silver Bullet Indicator apart is its precision in detecting false breakouts and market structure shifts (MSS), enabling traders to align their strategies with institutional activity. The visual clarity of its signals, including color-coded zones and directional arrows, ensures that both novice and experienced traders can easily interpret and apply its findings in real-time.
By integrating ICT principles, the indicator empowers traders to identify high-probability entry and exit points, minimize risk, and optimize trade execution. Whether you are capturing short-term price movements or navigating complex market conditions, the Silver Bullet Indicator offers a robust framework to enhance your trading performance.
Ultimately, this tool is more than just an indicator; it is a strategic ally for traders who seek to decode the movements of smart money and capitalize on institutional strategies. With the Silver Bullet Indicator, traders can approach the market with greater confidence, precision, and profitability.
Sharpe Ratio Z-ScoreThis indicator calculates the Sharpe Ratio and its Z-Score , which are used to evaluate the risk-adjusted return of an asset over a given period. The Sharpe Ratio is computed using the average return and the standard deviation of returns, while the Z-Score standardizes this ratio to assess how far the current Sharpe Ratio deviates from its historical average.
The Sharpe Ratio is a measure of how much return an investment has generated relative to the risk it has taken. In the context of this script, the risk-free rate is assumed to be 0, but in real applications, it would typically be the return on a safe investment, like a Treasury bond. A higher Sharpe Ratio indicates that the investment's returns are higher compared to its risk, making it a more favorable investment. Conversely, a lower Sharpe Ratio suggests that the investment may not be worth the risk.
Calculation:
Daily Returns Calculation: The script calculates the daily return of the asset. This measures the percentage change in the asset’s closing price from one period to the next.
Sharpe Ratio Calculation: The Sharpe Ratio is calculated by taking the average daily return and dividing it by the standard deviation of the returns, then multiplying by the square root of the period length.
Usage:
Traders and Investors can use the Sharpe Ratio to evaluate how well the asset is compensating for risk. A high Sharpe Ratio indicates a high return per unit of risk, whereas a low or negative Sharpe Ratio suggests poor risk-adjusted returns. In overbought times, an asset would have high/positive returns per unit of risk. In oversold times, an asset would have low/negative returns per unit of risk.
The Z-Score provides a way to compare the current Sharpe Ratio to its historical distribution, offering a more standardized view of how extreme or typical the current ratio is.
Positive Z-score: Indicates that the asset's return is significantly lower than its risk, suggesting potential oversold conditions.
Negative Z-score: Indicates that the asset's return is significantly higher than its risk, suggesting potential overbought conditions.
Red Zone (-3 to -2): Strong overbought conditions.
Green Zone (2 to 3): Strong oversold conditions.
Sharpe Ratio Limitations:
While the Sharpe Ratio is widely used to evaluate risk-adjusted returns, it has its limitations.
Fat Tails: It assumes that returns are normally distributed and does not account for extreme events or "fat tails" in the return distribution. This can be problematic for assets like cryptocurrencies, which may experience large, sudden price swings that skew the return distribution.
Single Risk Factor: The Sharpe Ratio only considers standard deviation (total volatility) as a measure of risk, ignoring other types of risks like skewness or kurtosis, which may also impact an asset’s performance.
Time Frame Sensitivity: The accuracy of the Sharpe Ratio and its Z-Score is heavily influenced by the time frame chosen for the calculation. A longer period may smooth out short-term fluctuations, while a shorter period might be more sensitive to recent volatility.
Overbought and Oversold Zones: The script marks overbought and oversold conditions based on the Z-Score, but this is not a guarantee of market reversal. It’s important to combine this tool with other technical indicators and fundamental analysis for a more comprehensive market evaluation.
Volatility: The Sharpe Ratio and Z-Score depend on the volatility (standard deviation) of the asset’s returns. For highly volatile assets, such as cryptocurrencies, the Sharpe Ratio may not fully capture the true risk or may be misleading if the volatility is transient.
Doesn't Account for Downside Risk: The Sharpe Ratio treats upside and downside volatility equally, which may not reflect how investors perceive risk. Some investors may be more concerned with downside risk, which the Sharpe Ratio does not distinguish from upside fluctuations.
Important Considerations:
The Sharpe Ratio should not be used in isolation. While it provides valuable insights into risk-adjusted returns, it is important to combine it with other performance and risk indicators to form a more comprehensive market evaluation. Relying solely on the Sharpe Ratio may lead to misleading conclusions, particularly in volatile or non-normally distributed markets.
When integrated into a broader investment strategy, the Sharpe Ratio can help traders and investors better assess the risk-return profile of an asset, identifying periods of potential overperformance or underperformance. However, it should be used alongside other tools to ensure more informed decision-making, especially in highly fluctuating markets.
Inside Bar with Swing PointsSwing Points with Inside Bar
This script combines swing point analysis with an inside bar pattern visualization, merging essential concepts to identify and visualize key price levels and potential trend reversals. This is especially useful for traders looking to understand price action through swing levels and reactions within inside bar boundaries, making it effective for short-term trend analysis and reversal zone identification.
Script Features:
Swing Point Analysis:
The script identifies swing points based on fractals with a configurable number of bars, allowing for a choice between three and five bars, helping traders fine-tune sensitivity to price movements.
Swing points are visualized as labels, highlighting potential reversal or continuation zones in the price chart.
Inside Bar Visualization:
Inside bars are defined as bars where both the high and low are contained within the previous bar. These often signal consolidation before a potential breakout.
The script displays boundaries of the mother bar (the initial bar encompassing inside bars) and colors candles accordingly, highlighting those within these boundaries.
This feature helps traders focus on price areas where a breakout or trend shift may occur.
Utility and Application:
The script enables traders to visualize inside bars and swing points, which is particularly useful for short-term traders focused on reversal or trend continuation strategies.
Combining swing point analysis with inside bar identification offers a unique approach, helping traders locate key consolidation zones that may precede significant price moves.
This provides not only strong support and resistance levels but also insights into probable breakout points.
How to Use the Script:
Set the number of bars for swing point analysis (3 or 5) to adjust fractal sensitivity.
Enable mother bar boundary visualization and color indication for inside bars to easily spot consolidation patterns.
Pay attention to areas with multiple swing points and inside bars, as these often signal potential reversal or breakout zones.
This script offers flexible tools for analyzing price movements through both swing analysis and consolidation zone identification, aiding decision-making under uncertainty and enhancing market structure understanding.
Smart Money Setup 07 [TradingFinder] Liquidity Hunts & Minor OB🔵 Introduction
The Smart Money Concept relies on analyzing market structure, tracking liquidity flows, and identifying order blocks. Research indicates that traders who apply these methods can improve their accuracy in predicting market movements by up to 30%.
These elements allow traders to understand the behavior of market makers, including banks and large financial institutions, which have the ability to influence price movements and shape major market trends. By recognizing how these entities operate, traders can align their strategies with Smart Money actions and better anticipate shifts in the market.
Smart Money typically enters the market at points of high liquidity where trading opportunities are more attractive. By following these liquidity flows, professional traders can position themselves at market reversal points, leading to profitable trades.
The Smart Money Setup 07 indicator has been specifically designed to detect these complex patterns. Using advanced algorithms, this indicator automatically identifies both bullish and bearish trading setups, assisting traders in discovering hidden market opportunities.
As a powerful technical analysis tool, the Smart Money Setup indicator helps predict the actions of major market participants and highlights optimal entry and exit points. Essentially, this tool enables traders to act like institutional investors and market makers, making the most of price fluctuations in their favor.
Ultimately, the Smart Money Setup 07 indicator transforms complex technical analysis into a simple and practical tool. By detecting order blocks and liquidity zones, this tool helps traders execute their strategies with greater precision, leading to more informed and successful trading decisions.
🟣 Bullish Setup
🟣 Bearish Setup
🔵 How to Use
One of the key strengths of the Smart Money Setup 07 indicator is its ability to accurately identify order blocks and analyze liquidity flows. Order blocks represent areas where large buy or sell orders are placed by Smart Money investors, which often indicate key reversal points in the market. Traders can use these order blocks to pinpoint potential entry and exit opportunities.
The Smart Money Setup indicator detects and visually displays these order blocks on the chart, helping traders identify the best zones to enter or exit trades. Since these zones are frequently used by large institutional investors, following these blocks allows traders to capitalize on price fluctuations and trade with confidence.
🟣 Bullish Smart Money Setup
A Bullish Smart Money Setup forms when the market creates Higher Lows and Higher Highs. In this situation, the indicator analyzes pivot points, liquidity flows, and order blocks to identify buy opportunities. Liquidity points in these setups indicate areas where Smart Money is likely to enter long positions.
In the bullish setup image, multiple Higher Lows and Higher Highs are formed. The green zone represents a Bullish Order Block, signaling traders to enter a long trade. The Smart Money Setup indicator displays a green arrow, indicating a high-probability upward price movement from this liquidity zone.
🟣 Bearish Smart Money Setup
A Bearish Smart Money Setup occurs when the market structure shows Lower Highs and Lower Lows, indicating weakness in price. The indicator identifies these patterns and highlights potential sell opportunities. Liquidity points in this setup mark areas where Smart Money enters sell positions.
In the bearish setup image, a Lower High is followed by a Lower Low, with the red liquidity zone acting as a Bearish Order Block. The Smart Money Setup indicator shows a red arrow, signaling a likely downward move, offering traders an opportunity to enter short positions.
🔵 Settings
Pivot Period : This setting determines how many candles are needed to form a pivot point. A default value of 2 is optimal for quickly identifying key pivot points in price action.
Order Block Validity Period : This parameter defines the lifespan of an order block. Traders can adjust how long each order block remains valid. For instance, setting it to 500 means that an order block will be valid for 500 bars after its formation.
Mitigation Level OB : This setting allows traders to select whether order blocks should be based on the "Proximal," "50% OB," or "Distal" levels, helping traders manage risk more effectively.
Order Block Refinement : Traders can refine the order blocks with precision. The indicator offers two refinement modes: Defensive and Aggressive. The Defensive mode identifies safer order blocks, while the Aggressive mode targets higher-risk blocks with the potential for larger reversals.
🔵 Conclusion
The Smart Money Setup 07 indicator is a powerful tool for identifying key Smart Money movements in the market. It provides traders with essential insights for making informed trading decisions, particularly when combined with technical analysis and liquidity flow analysis. This indicator allows traders to accurately pinpoint entry and exit points, helping them maximize profits and minimize risk.
By offering a range of customizable settings, the Smart Money Setup indicator adapts to different trading styles and strategies. Furthermore, its ability to detect order blocks and identify supply and demand zones makes it an indispensable tool for any trader looking to enhance their strategy.
In conclusion, the Smart Money Setup 07 is a crucial tool for traders aiming to optimize their trading performance. By utilizing the concepts of Smart Money in technical analysis, traders can make more precise decisions and take advantage of market fluctuations.
thinkCNE - Key with Multiple ColoursCustomisable Key with Multi-Coloured Highlights for Chart Annotations
Overview:
This Customizable Key indicator is designed to provide traders with a clear and visually customizable legend that can be displayed on their chart. It allows users to annotate their charts with up to 10 distinct labels, each paired with a unique color-coded square. This feature is especially useful when you need to visually differentiate between various technical elements on your chart, such as support/resistance levels, Fair Value Gaps (FVGs), or important pivot points.
Key Features:
Customizable Labels and Colors: Each row in the table can be customized with unique text and background colors. This flexibility allows traders to create a personalized key that reflects the specific elements they are tracking, such as monthly FVGs, daily supports, volume-based zones, or any other custom annotations.
Flexible Number of Rows: The user can enable or disable rows as needed, which ensures that the table only shows relevant information. If fewer than 10 rows are required, the unused rows can be hidden from view, maintaining a clean and uncluttered chart.
Dynamic Table Placement: The key can be placed at different positions on the chart (top-right, middle-right, or bottom-right), giving users control over where the key appears to avoid covering important parts of their technical analysis.
Adjustable Size and Text Format: Users can customize the size of the color squares, the text, and even the overall appearance of the table. The text size can range from small to huge, making the labels easy to read based on personal preferences.
Use Cases:
Annotating Key Technical Zones: The indicator is perfect for annotating multiple technical zones or levels that require consistent attention. For example, traders can label areas like "Monthly FVG," "Daily Support," "Key Resistance," or even "Volume Spike," and color-code them accordingly for quick reference.
Drawing Clarity: A well-organized chart is essential for clear decision-making. This indicator enhances clarity by visually categorizing different chart features, making it easier to quickly interpret the chart without confusion. The customizable color squares ensure that users can quickly identify which technical element corresponds to which label on the chart.
Visual Aid for Strategy Execution: For traders using strategies involving multiple indicators, support and resistance lines, or patterns, this key helps keep track of all the elements, especially when several overlapping annotations might clutter the chart. It allows users to draw specific attention to key areas of interest and explain the rationale for each one.
Educational & Presentational Tool: If you're conducting trading education sessions or presentations, this indicator can serve as a powerful tool to explain concepts in real-time. You can present your chart with clearly marked zones or levels, where each color and label explains the reasoning behind your analysis. It’s a professional tool for walkthroughs or strategy breakdowns.
Benefits:
Enhanced Visual Organization: The color-coded squares and corresponding labels make it easier to maintain organization within a busy chart. Traders can distinguish between multiple chart elements at a glance, which enhances their focus on critical zones or setups.
Improved Decision-Making: By clearly labeling and color-coding areas of importance, traders can reduce the time it takes to assess the chart and make decisions, as the key provides a concise reference.
Customizable to Individual Needs: Traders can adapt the indicator to their specific trading style and chart elements, whether they're swing traders marking longer-term zones or day traders focusing on short-term levels.
Clarity on Complex Charts: For traders using charts with several indicators and drawings, the ability to clearly define what each color and label represents ensures that the chart remains understandable, even with multiple overlays.
Iceberg Trade Revealer [CHE]Unveiling Iceberg Trades: A Deep Dive into Low Volatility Market Phases
Introduction
In the dynamic world of trading, hidden forces often influence market movements in ways that aren't immediately apparent. One such force is the phenomenon of iceberg trades—large orders that are concealed to prevent significant market impact. This presentation explores the concept of iceberg trades, explains why they are typically hidden during periods of low volatility, and introduces an indicator designed to reveal these elusive trades.
Agenda
1. Understanding Iceberg Trades
- Definition and Purpose
- Impact on Market Dynamics
2. The Low Volatility Concealment
- Why Low Volatility Phases?
- Strategies Behind Hiding Large Orders
3. Introducing the Iceberg Trade Revealer Indicator
- How the Indicator Works
- Key Components and Calculations
4. Demonstration and Use Cases
- Interpreting the Indicator Signals
- Practical Trading Applications
5. Conclusion
- Summarizing the Insights
- Q&A Session
1. Understanding Iceberg Trades
Definition and Purpose
- Iceberg Trades are large single orders divided into smaller lots to disguise the total order quantity.
- Traders use iceberg orders to minimize market impact and avoid unfavorable price movements.
Impact on Market Dynamics
- Concealed Volume: Iceberg orders hide true supply and demand levels.
- Price Stability: They prevent sudden spikes or drops by releasing orders gradually.
- Market Sentiment: Their presence can influence perceptions of market strength or weakness.
2. The Low Volatility Concealment
Why Low Volatility Phases?
- Less Market Attention: Low volatility periods attract fewer traders, making it easier to conceal large orders.
- Reduced Slippage: Prices are more stable, reducing the risk of executing orders at unfavorable prices.
- Strategic Advantage: Large players can accumulate or distribute positions without tipping off the market.
Strategies Behind Hiding Large Orders
- Order Splitting: Breaking down large orders into smaller pieces.
- Time Slicing: Executing orders over an extended period.
- Algorithmic Trading: Using sophisticated algorithms to optimize order execution.
3. Introducing the Iceberg Trade Revealer Indicator
How the Indicator Works
- Core Thesis: Iceberg trades can be detected by analyzing periods of unusually low volatility.
- Volatility Analysis: Uses the Average True Range (ATR) and Bollinger Bands to identify low volatility phases.
- Signal Generation: Marks periods where iceberg trades are likely occurring.
Key Components and Calculations
1. Average True Range (ATR)
- Measures market volatility over a specified period.
- Lower ATR values indicate less price movement.
2. Bollinger Bands
- Creates a volatility envelope around the ATR.
- Bands tighten during low volatility and widen during high volatility.
3. Timeframe Adjustments
- Utilizes multiple timeframes to enhance signal accuracy.
- Options for auto, multiplier, or manual timeframe selection.
4. Signal Conditions
- Iceberg Trade Detection: ATR falls below the lower Bollinger Band.
- Revealed Volatility: ATR rises above the upper Bollinger Band, indicating potential market moves after iceberg trades.
4. Demonstration and Use Cases
Interpreting the Indicator Signals
- Iceberg Trade Zones: Highlighted areas where large hidden orders are likely.
- Revealed Volatility Zones: Areas indicating the market's response to the execution of iceberg trades.
Practical Trading Applications
- Entry and Exit Points: Use signals to time trades alongside institutional activity.
- Risk Management: Adjust strategies during detected low volatility phases.
- Market Analysis: Gain insights into underlying market mechanics.
5. Conclusion
Summarizing the Insights
- Iceberg Trades play a significant role in market movements, especially when concealed during low volatility phases.
- The Iceberg Trade Revealer Indicator provides a tool to uncover these hidden activities, offering traders a strategic edge.
- Understanding and utilizing this indicator can enhance trading decisions by aligning them with the actions of major market players.
Best regards Chervolino ( Volker )
Q&A Session
- Questions and Discussions: Open the floor for any queries or further explanations.
Thank You!
By delving into the hidden aspects of market activity, traders can better navigate the complexities of financial markets. The Iceberg Trade Revealer Indicator serves as a bridge between observable market data and the concealed strategies of large institutions.
References
- Average True Range (ATR): A technical analysis indicator that measures market volatility.
- Bollinger Bands: A volatility indicator that creates a band of three lines which are plotted in relation to a security's price.
- Iceberg Orders: Large orders divided into smaller lots to hide the actual order quantity.
Note: Always consider multiple factors when making trading decisions. Indicators provide tools, but they do not guarantee results.
Educational Content Disclaimer:
Disclaimer:
The content provided, including all code and materials, is strictly for educational and informational purposes only. It is not intended as, and should not be interpreted as, financial advice, a recommendation to buy or sell any financial instrument, or an offer of any financial product or service. All strategies, tools, and examples discussed are provided for illustrative purposes to demonstrate coding techniques and the functionality of Pine Script within a trading context.
Any results from strategies or tools provided are hypothetical, and past performance is not indicative of future results. Trading and investing involve high risk, including the potential loss of principal, and may not be suitable for all individuals. Before making any trading decisions, please consult with a qualified financial professional to understand the risks involved.
By using this script, you acknowledge and agree that any trading decisions are made solely at your discretion and risk.
BTC Power of Law x Central Bank LiquidityThis indicator combines Bitcoin's long-term growth model (Power Law) with global central bank liquidity to help identify potential buy and sell signals.
How it works:
Power Law Oscillator: This part of the indicator tracks how far Bitcoin's current price is from its expected long-term growth, based on an exponential model. It helps you see when Bitcoin may be overbought (too expensive) or oversold (cheap) compared to its historical trend.
Central Bank Liquidity: This measures the amount of money injected into the financial system by major central banks (like the Fed or ECB). When more money is printed, asset prices, including Bitcoin, tend to rise. When liquidity dries up, prices often fall.
By combining these two factors, the indicator gives you a more accurate view of Bitcoin's price trends.
How to interpret:
Green Line : Bitcoin is undervalued compared to its long-term growth, and the liquidity environment is supportive. This is typically a buy signal.
Yellow Line: Bitcoin is trading near its expected value, or there's uncertainty due to mixed liquidity conditions. This is a hold signal.
Red Line: Bitcoin is overvalued, or liquidity is tightening. This is a potential sell signal.
Zones:
The background will turn green when Bitcoin is in a buy zone and red when it's in a sell zone, giving you easy-to-read visual cues.
Adaptive RSI-Stoch with Butterworth Filter [UAlgo]The Adaptive RSI-Stoch with Butterworth Filter is a technical indicator designed to combine the strengths of the Relative Strength Index (RSI), Stochastic Oscillator, and a Butterworth Filter to provide a smooth and adaptive momentum-based trading signal. This custom-built indicator leverages the RSI to measure market momentum, applies Stochastic calculations for overbought/oversold conditions, and incorporates a Butterworth Filter to reduce noise and smooth out price movements for enhanced signal reliability.
By utilizing these combined methods, this indicator aims to help traders identify potential market reversal points, momentum shifts, and overbought/oversold conditions with greater precision, while minimizing false signals in volatile markets.
🔶 Key Features
Adaptive RSI and Stochastic Oscillator: Calculates RSI using a configurable period and applies a dual-smoothing mechanism with Stochastic Oscillator values (K and D lines).
Helps in identifying momentum strength and potential trend reversals.
Butterworth Filter: An advanced signal processing filter that reduces noise and smooths out the indicator values for better trend identification.
The filter can be enabled or disabled based on user preferences.
Customizable Parameters: Flexibility to adjust the length of RSI, the smoothing factors for Stochastic (K and D values), and the Butterworth Filter period.
🔶 Interpreting the Indicator
RSI & Stochastic Calculations:
The RSI is calculated based on the closing price over the user-defined period, and further smoothed to generate Stochastic Oscillator values.
The K and D values of the Stochastic Oscillator provide insights into short-term overbought or oversold conditions.
Butterworth Filter Application:
What is Butterworth Filter and How It Works?
The Butterworth Filter is a type of signal processing filter that is designed to have a maximally flat frequency response in the passband, meaning it doesn’t distort the frequency components of the signal within the desired range. It is widely used in digital signal processing and technical analysis to smooth noisy data while preserving the important trends in the underlying data. In this indicator, the Butterworth Filter is applied to the trigger value, making the resulting signal smoother and more stable by filtering out short-term fluctuations or noise in price data.
Key Concepts Behind the Butterworth Filter:
Filter Design: The Butterworth filter works by calculating weighted averages of current and past inputs (price or indicator values) and outputs to produce a smooth output. It is characterized by the absence of ripple in the passband and a smooth roll-off after the cutoff frequency.
Cutoff Frequency: The period specified in the indicator acts as a control for the cutoff frequency. A higher period means the filter will remove more high-frequency noise and retain longer-term trends, while a lower period means it will respond more to short-term fluctuations in the data.
Smoothing Process: In this script, the Butterworth Filter is calculated recursively using the following formula,
butterworth_filter(series float input, int period) =>
float wc = math.tan(math.pi / period)
float k1 = 1.414 * wc
float k2 = wc * wc
float a0 = k2 / (1 + k1 + k2)
float a1 = 2 * a0
float a2 = a0
float b1 = 2 * (k2 - 1) / (1 + k1 + k2)
float b2 = (1 - k1 + k2) / (1 + k1 + k2)
wc: This is the angular frequency, derived from the period input.
k1 and k2: These are intermediate coefficients used in the filter calculation.
a0, a1, a2: These are the feedforward coefficients, which determine how much of the current and past input values will contribute to the filtered output.
b1, b2: These are feedback coefficients, which determine how much of the past output values will contribute to the current output, effectively allowing the filter to "remember" past behavior and smooth the signal.
Recursive Calculation: The filter operates by taking into account not only the current input value but also the previous two input values and the previous two output values. This recursive nature helps it smooth the signal by blending the recent past data with the current data.
float filtered_value = a0 * input + a1 * prev_input1 + a2 * prev_input2
filtered_value -= b1 * prev_output1 + b2 * prev_output2
input: The current input value, which could be the trigger value in this case.
prev_input1, prev_input2: The previous two input values.
prev_output1, prev_output2: The previous two output values.
This means the current filtered value is determined by the combination of:
A weighted sum of the current input and the last two inputs.
A correction based on the last two output values to ensure smoothness and remove noise.
In conclusion when filter is enabled, the Butterworth Filter smooths the RSI and Stochastic values to reduce market noise and highlight significant momentum shifts.
The filtered trigger value (post-Butterworth) provides a cleaner representation of the market's momentum.
Cross Signals for Trade Entries:
Buy Signal: A bullish crossover of the K value above the D value, particularly when the values are below 40 and when the Stochastic trigger is below 1 and the filtered trigger is below 35.
Sell Signal: A bearish crossunder of the K value below the D value, particularly when the values are above 60 and when the Stochastic trigger is above 99 and the filtered trigger is above 90.
These signals are plotted visually on the chart for easy identification of potential trading opportunities.
Overbought and Oversold Zones:
The indicator highlights the overbought zone when the filtered trigger surpasses a specific threshold (typically above 100) and the oversold zone when it drops below 0.
The color-coded fill areas between the Stochastic and trigger lines help visualize when the market may be overbought (likely a reversal down) or oversold (potential reversal up).
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Price & Volume Breakout Fibonacci Probability [TradeDots]📝 OVERVIEW
The "Price & Volume Breakout Fibonacci Probability" indicator is designed to detect the probability of the maximum run-up and drawdown of each breakout trade on an asset, assisting traders in optimizing their take profit and stop loss strategies.
🧮 CALCULATIONS
The algorithm detects price and volume breakouts to activate the Fibonacci levels displayed on the chart. It calculates these levels using the period pivot high and low, with the close price of the breakout bar as the reference price.
The indicator then forward-tests within an user-selected number of bars, detecting the maximum run-up and drawdown during that period. Consequently, it calculates the probability of the price hitting either side of the Fibonacci levels, showing the likelihood of reaching take profit and stop loss targets for each breakout trade.
📊 EXAMPLE
The above example shows two breakout trades, circled within the yellow rectangle zone.
The first trade has a maximum run-up above the +0.382 Fibonacci level zone and a maximum drawdown below the -0.618 Fibonacci level zone.
When the price reaches the maximum run-up, it only has a ~45% probability of moving further upward into the last two zones (25% + 19.44%). This indicates that setting a take profit at a higher level may have less than a 50% chance of success.
Conversely, when the price reaches its maximum drawdown, there is only an ~8% probability of moving further downward into the last drawdown zone. This could indicate a potential reversal.
⚙️ SETTINGS
Breakout Condition: Determines the type of breakout condition to track: "Price", "Volume", "Price & Volume".
Backtest Period: The maximum run-up and drawdown are detected within this bar period.
Price Breakout Period: Specifies the number of bars the price needs to break out from.
Volume Breakout Period: Specifies the number of bars the volume needs to break out from.
Trendline Confirmation: Confirms that the close price needs to be above the trendline.
📈 HOW TO USE
By understanding the probabilities of price movements to both the upside and downside, traders can set take profit and stop loss targets with greater accuracy.
For instance, placing a stop loss order below the zone with the highest probability minimizes the chances of being stopped out of a profitable trade. Conversely, setting a take profit target at the zone with the highest probability increases the win rate.
Additionally, if the price breaches multiple Fibonacci levels during the breakout period, it may indicate an abnormal state, signaling a potential reversal or pullback. This can help traders exit trades in a timely manner.
Traders can adjust their take profit and stop loss levels based on their individual risk tolerance.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
Propulsion Blocks | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Propulsion Blocks indicator! This new indicator can find & render ICT's propulsion blocks in the current ticker. It's highly customizable with detection, invalidation and style settings. For more information, please visit the "HOW DOES IT WORK ?" section.
Features of the new Propulsion Blocks indicator :
Render Bullish & Bearish Propulsion Blocks
Customizable Algorithm
Enable / Disable Historic Zones
Visual Customizability
📌 HOW DOES IT WORK ?
Order blocks occur when there is a high amount of market orders exist on a price range. It is possible to find order blocks using specific formations on the chart. One of which this indicator uses requires a large engulfing candlestick right after another one of the opposite direction. Then if the price comes back to retest the area that two candlesticks create, then it's an order block pattern.
Propulsion blocks are a specific type of order block used in the trading methodology. They build on the concept of order blocks and aim to identify potential areas for strong price movements. They are detected when a candlestick wicks to any existing order block, retesting it. Then a strong momentum in the direction of the order block is needed for the propulsion block to get created. Check this example :
You can use them as entry / exit points, or for confirmations for your trades. For example, a successful retest attempt to a bullish propulsion block might hint a strong bullish momentum. This indicator works best when used together with other ICT concepts.
🚩UNIQUENESS
Propulsion blocks can help traders identify key levels in a chart, and can be used mainly for confirmation. This indicator can identify and show them automatically in your chart, and provides customization settings for order & propulsion block detection and invalidation. Another capability of the indicator is that it combines overlapping order & propulsion blocks so you will have a clean look at the chart without any overlapping zones.
⚙️SETTINGS
1. General Configuration
Show Historic Zones -> This setting will hide invalidated propulsion blocks if enabled.
Max Distance To Last Bar -> This setting defines the maximum range that the indicator will find propulsion blocks to the past. Higher options will make older zones visible.
Zone Invalidation -> Select between Wick & Close price for Order Block & Propulsion Block Invalidation.
Swing Length -> Swing length is used when finding order block formations. Smaller values will result in finding smaller order blocks.
Kalman Volume Filter [ChartPrime]The "Kalman Volume Filter" , aims to provide insights into market volume dynamics by filtering out noise and identifying potential overbought or oversold conditions. Let's break down its components and functionality:
Settings:
Users can adjust various parameters to customize the indicator according to their preferences:
Volume Length: Defines the length of the volume period used in calculations.
Stabilization Coefficient (k): Determines the level of noise reduction in the signals.
Signal Line Length: Sets the length of the signal line used for identifying trends.
Overbought & Oversold Zone Level: Specifies the threshold levels for identifying overbought and oversold conditions.
Source: Allows users to select the price source for volume calculations.
Volume Zone Oscillator (VZO):
Calculates a volume-based oscillator indicating the direction and intensity of volume movements.
Utilizes a volume direction measurement over a specified period to compute the oscillator value.
Normalizes the oscillator value to improve comparability across different securities or timeframes.
// VOLUME ZONE OSCILLATOR
VZO(get_src, length) =>
Volume_Direction = get_src > get_src ? volume : -volume
VZO_volume = ta.hma(Volume_Direction, length)
Total_volume = ta.hma(volume, length)
VZO = VZO_volume / (Total_volume)
VZO := (VZO - 0) / ta.stdev(VZO, 200)
VZO
Kalman Filter:
Applies a Kalman filter to smooth out the VZO values and reduce noise.
Utilizes a stabilization coefficient (k) to control the degree of smoothing.
Generates a filtered output representing the underlying volume trend.
// KALMAN FILTER
series float M_n = 0.0 // - the resulting value of the current calculation
series float A_n = VZO // - the initial value of the current measurement
series float M_n_1 = nz(M_n ) // - the resulting value of the previous calculation
float k = input.float(0.06) // - stabilization coefficient
// Kalman Filter Formula
kalm(k)=>
k * A_n + (1 - k) * M_n_1
Volume Visualization:
Displays the volume histogram, with color intensity indicating the strength of volume movements.
Adjusts bar colors based on volume bursts to highlight significant changes in volume.
Overbought and Oversold Zones:
Marks overbought and oversold levels on the chart to assist in identifying potential reversal points.
Plotting:
Plots the Kalman Volume Filter line and a signal line for visual analysis.
Utilizes different colors and fills to distinguish between rising and falling trends.
Highlights specific events such as local buy or sell signals, as well as overbought or oversold conditions.
This indicator provides traders with a comprehensive view of volume dynamics, trend direction, and potential market turning points, aiding in informed decision-making during trading activities.
