Bullish Candlestick Patterns With Filters [TradeDots]The "Bullish Candlestick Patterns With Filters" is a trading indicator that identifies 6 core bullish candlestick patterns. This is further enhanced by applying channel indicator as filters, designed to further increase the accuracy of the recognized patterns.
6 CANDLESTICK PATTERNS
Hammer
Inverted Hammer
Bullish Engulfing
The Piercing Line
The Morning Star
The 3 White Soldiers
SIGNAL FILTERING
The indicator incorporates with 2 primary methodologies aimed at filtering out lower accuracy signals.
Firstly, it comes with a "Lowest period" parameter that examines whether the trough of the bullish candlestick configuration signifies the lowest point within a specified retrospective bar length. The longer the period, the higher the probability that the price will rebound.
Secondly, the channel indicators, the Keltner Channels or Bollinger Bands. This indicator examines whether the lowest point of the bullish candlestick pattern breaches the lower band, indicating an oversold signal. Users have the flexibility to modify the length and band multiplier, enabling them to custom-tune signal sensitivity.
Without Filtering:
With Filtering
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.
Tradedots
Channels With NVI Strategy [TradeDots]The "Channels With NVI Strategy" is a trading strategy that identifies oversold market instances during a bullish trading market. Specifically, the strategy integrates two principal indicators to deliver profitable opportunities, anticipating potential uptrends.
2 MAIN COMPONENTS
1. Channel Indicators: This strategy gives users the flexibility to choose between Bollinger Band Channels or Keltner Channels. This selection can be made straight from the settings, allowing the traders to adjust the tool according to their preferences and strategies.
2. Negative Volume Indicator (NVI): An indicator that calculates today's price rate of change, but only when today's trading volume is less than the previous day's. This functionality enables users to detect potential shifts in the trading volume with time and price.
ENTRY CONDITION
First, the assets price must drop below the lower band of the channel indicator.
Second, NVI must ascend above the exponential moving average line, signifying a possible flood of 'smart money' (large institutional investors or savvy traders), indicating an imminent price rally.
EXIT CONDITION
Exit conditions can be customized based on individual trading styles and risk tolerance levels. Traders can define their ideal take profit or stop loss percentages.
Moreover, the strategy also employs an NVI-based exit policy. Specifically, if the NVI dips under the exponential moving average – suggestive of a fading trading momentum, the strategy grants an exit call.
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.
TradeDots - Buy Sell SignalsThe TradeDots Buy Sell Indicator is a sophisticated multi-strategy analytics tool designed to discern market direction and identify potential trading opportunities.
The TradeDots indicator utilizes a trend-following strategy that initially identifies the long-term market trend, whether bullish or bearish, at a macro level. It then zooms in on pullback and reversal price action patterns within this broader trend. These patterns are confirmed by a micro-level candlestick analysis, which leads to the issuance of a "buy" alert. This process ensures both macro and micro elements of the market are considered before entering a trade.
How Does It Work?
In more detail, the procedure begins at the macro level where the advanced indicator applies an Exponential Moving Average (EMA) within the current timeframe. This EMA is then cross-verified with another EMA of the same length from a higher timeframe, ensuring a reliable assessment of long-term market trends. This approach helps establish whether the market situation favors long or short positions.
Following this, a complex mathematical model uses a designated window of candlesticks to calculate price action changes, storing all significant reversal patterns for subsequent comparison. The algorithm then identifies similar repeated reversal patterns in the chart, pinpointing potential market turning points.
For precision and reliability, the confirmation of these reversal patterns involves further refinement and filtering at a micro level. By calculating market momentum in tandem with an exhaustive analysis, e.g. Average True Value (ATR), candlestick body and wick data, the algorithm can affirm the reversal. Finally, the buy or sell signals are plotted on the chart in real-time.
The indicator includes 4 distinct entry strategies for both "Long" and "Short" orders. Each strategy represents different levels of rigorousness in their analysis rules. For instance, a "Weak Buy" signal represents a lighter pullback strength compared to a "Strong Buy" signal, with "Reversal Buy" exhibiting the robust pullback strength based on the change in price action value.
Each type of order comes with its minimum threshold and conditions for profit-taking to prevent excessive trading activity that could lead to high commission costs. Once these conditions are met and coupled with a reversal signal — generated with the same concepts as mentioned earlier but in the opposite direction — a sell signal is then triggered in real time. It's a systematic process that ensures an optimal balance between timely entries and exits in the market.
Generating Trading Ideas Catering To Traders Of All Kinds
TradeDots Buy Sell Indicator includes multiple strategies and many features:
4+ Types of Trading Alerts: Strong, Weak, Reversal, and Breakout for different market conditions (Should not be followed blindly).
2+ Trading Styles: Buy and Hold, Swing Trading (Should not be followed blindly).
Facilitates both "Long" and "Short" trades.
+ more. (Check the changelog below for current features)
HOW TO USE
⭐️ TRADING STRATEGY
Buy and Hold: An approach suitable for long-term investments or as an alternative to a dollar-cost averaging strategy by identifying only the undervalued positions in markets with long-term growth potential like stocks and indices.
Note: This strategy does not provide an exit strategy.
Swing Trading: This method targets buying low and selling high, adapted for traders looking to make the most of short to mid-term market volatility.
⭐️ ORDER DIRECTION
Order direction is for “Swing trading” strategy and other strategies that comes with an exit strategy. It is to choose the direction of the market that you wish to place your order on.
Long: Primarily targeting markets that exhibit a left-skewed trend (more often it rises than falls), this strategy focuses on "long" trading opportunities, avoiding "short" market actions.
Short: Apt for markets displaying a right-skewed trend (more often it falls than rises), this approach targets "short" opportunities exclusively, refraining from "long" market actions.
Long and Short: This comprehensive strategy identifies trading opportunities for both "long" and "short" market actions, facilitating increased opportunities for volatile assets.
⭐️ ALERT TYPES
Strong: These alerts designate high risk/reward return opportunities with a reasonable win rate. They tend to appear near previous support pivots where a Change in Character (CoCh) may often occur, typically coupled with a tight stop-loss strategy.
Weak: Indicative of opportunities balancing risk/reward return and win-rate, these alerts often appear during strong momentum markets.
Reversal: These signals identify potential reversals by highlighting extreme oversold or overbought states, thus revealing markets that are underpriced or overpriced for swift trading actions.
Breakout: They are to identify a change in trend and market breakout by gaps created post earnings or significant economic events, purposed for "Buy high, sell higher" strategies.
⭐️ STOP LOSS
The stop-loss feature offers customization options, enabling users to close a position upon reaching a predefined percentage drawdown. As volatility varies across different timeframes and markets, tuning this feature in accordance with the market allows optimal usage of this indicator.
CONCLUSION
While technical indicators are certainly vital in trading analysis, they are just one part of the equation. The individual trader's style and mindset significantly influence their trading outcomes, making them equally crucial in the process. Therefore, relying solely on indicators for a successful trading outcome may not be the most effective strategy.
Understanding and leveraging these indicators requires substantial time and significant effort from traders. They need to deeply engage with these tools to truly grasp their behavior and functionality. Taking this into consideration, our aim is to create highly advanced, customizable, and user-friendly technical indicators. This tool is designed to illuminate the fundamental role that technical indicators play as a supportive decision-making apparatus, aiding traders to more swiftly embark on their journey towards successful trading.
See Author's instructions below to get instant access to this indicator.
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.
