SuperTrend Support & Resistance(My goal creating this indicator) : Provide a way to categorize and label key structures on multiple time frames so I can create a plan based on those observable facts.
The Underlying Concept / What is Momentum?
The Momentum shown is derived from a Mathematical Formula, SUPERTREND. When price closes above Supertrend Its bullish Momentum when its below Supertrend its Bearish Momentum. On the first bar bearish momentum is detected a resistance Level is made at the highest point of the previous bullish condition. On the first bar bullish momentum is detected a support Level is made at the lowest point of the previous bearish condition. As I become a better analyst I will find better techniques and this source code may become open-source, but as of now it remains protected. This indicator scans for bullish & bearish Momentum on the Timeframes selected by the user and when there is a shift in momentum on any of those time frames (price closes below or above SUPERTREND ) it notifies the trader with a Supply or Demand level with a unique color and Size to signify the severity of said level.
What is Severity?
Severity is How we differentiate the importance of different Highs and Lows. If Momentum is detected on a higher timeframe the Supply or Demand Level is updated. The Color and Size representing that higher timeframe will be shown. Demand and Supply Levels made by higher Timeframes are more SEVERE then a demand level made by a lower Timeframe.
Technical Inputs
- If you want to optimize the rate of signals to better fit your trading plan you would change the Factor input and ATR Length input. Increase factor and ATR Length to decrease the frequency of signals and decrease the Factor and ATR Length to increase the frequency of signals.
- to ensure the correct calculation of Support and Resistance levels change BAR_INDEX. BAR_INDEX creates a buffer at the start of the chart. For example: If you set BAR_INDEX to 300. The script will wait for 300 bars to elapse on the current chart before running. This allows the script more time to gather data. Which is needed in order for our dynamic lookback length to never return an error(Dynamic lookback length cant be negative or zero). The lower the timeframe the greater the amount of bars need. For Example if I open up a 30 sec chart I would enter 5000 as my BAR_INDEX since that will provide enough data to ensure the correct calculation of Support and Resistance levels.
Time Frame Inputs
- The indicator has 3 Time Frame Displays where you can choose how SEVERE You want the Supply and Demand Levels. For Example: 1min, 3min, 5min, 15 min Levels, 60 min levels Weekly Levels, etc.....The higher the Timeframe Selected the more SEVERE the Level.
- Use the Amount of time Frames input to increase or limit the amount of time frames that will be displayed onto the chart.
Display Inputs
- The toggle (Trend or Basic) option Lets the trend determine the colors of the Support and Resistance Levels or Basic where the color is strictly based on if its a high or a low ( Trend = HH,HL,LL,LH)
- Toggle options (Close) and (High & Low) creates Support and Resistance Levels using the Lowest close and Highest close or using the Lowest low and Highest high.
Toggle on both or toggle off both in order to use both these values when determining the trend of your chart. For Example this would mean (Price has to close higher then the highest high. Not only make a higher high or a
higher close) and the inverse (Price has to close lower then the lowest low. Not only make a lower low or a lower close)
How Trend Is being Determined ?
(Previous Supply Level > Current Supply Level ) if this statement is true then its s LH so the trend is bearish if this statement is false then its a HH so the trend is bullish
(Previous Demand Level > Current Demand Level ) if this statement is true then its a LL so the trend is bearish if this statement is false then its a HL so the trend is bullish
(Close > Current Supply Level ) if this statement is true technically price made a HH so the trend is bullish
(Close < Current Demand Level ) if this statement is true technically price made a LL so the trend is bearish
- Fully customize how you display and label Market Structure in specific timeframes. Line Length, Line Width, Line Style, Label Distance, Label Size, Label Background Size, and Background Color can all be customized.
- Lastly Is the Trend Chart. To Easily verify the current trend of any timeframes displayed by this indicator toggle on Chart On/Off . You also get the option to change the Chart Position and the size of the Trend Chart
*****The Current charts timeframe has to lower then a month to ensure correct calculation of Supply and Demand Levels*****
How it can be used ?
(Examples of Different ways you can use this indicator) : Easily categorize the severity of each and every Supply or Demand Level in the market (The higher the time frame the stronger the level)
: Quickly Determine the trend of any Timeframe
: Get a consistent view of a market and how different time frames are behaving but just use one chart.
: Take the discretion from hand drawing support and resistance lines out of your trading
: Find and categorize strong levels for potential breakouts
: Trend Analysis, Use multiple time frames to create a narrative based on observable facts from these time frames
: Different Targets to take money off the table
: Use labels to differentiate between different trend line setups
: Find Great places to move your stop loss too.
Trend
HMA-Kahlman Trend & Trendlines (v.2)This is an upgrade to the HMA-Kahlman Trend & Trendlines script ().
This version gives more flexibility because you can play around with 2 parameters to Kalman function (Sharpness and K (aka. step size)).
SUPER GCOV5 MAPSCALP > MAPPING & SCALPING SUPER GCOV5 MAPSCALP indicator is built specifically for mapping/prediction measurement and fast trading i.e. scalping/intraday in the commodity market or cryptos market. It uses an indicator instrument consisting of ATR TRAILING STOP (ATR), EXPONENTIAL MOVING AVERAGE, PIVOT POINT, FIBONACCI KEY LEVEL, and LINEAR REGRESSION CHANNEL(LRC).
Rebuild of Instrument & Parameter
This indicator is also an upgraded instrument that is sourced from the previous indicator-FUTURES SCALPV2.This R&D of course makes trading activities more effective, and dynamic to increase the confidence of traders in current trading activities. The indicator has been upgraded in terms of parameters as well as additional instruments. Among them are;
1. ATR Trailing Stop
2. ATR BUY/SELL signal
3. Exponential Moving Average(EMA) – fastMA/slowMA Length
5. Breakout/breakdown signal
6. Pivot low/high level
7. Fibonacci extends & retracement
8. Linear Regression Channel(LRC)
9. Alert condition ( a dozen alerts )
> The best timeframe for entry is 3 minutes for FCPO and 15 minutes for other futures & cryptos.
> The best timeframe mapping/prediction is 1 hour & 4 hours.
>The candle/bars have been colored to make it easier for traders to see the price trends whether in bullish or bearish conditions.
Easier SOP of ENTRIES/POSITIONING:
1. entry by signal BUY/SELL after signal bar ( 2nd bar) for confirmation.
2. The best entries BUY at support(pivot low-Blue line) after price rebound then signal appears. The best buy also when the price is at lower
low pivot + fibo support level + lower trendline(LRC) + and the price went rebound.
3. The best entries SELL at resistance(pivot high-red line) after price pullback then signal appears.
The best buy also when the price is at a higher high pivot + fibo resistance level + upper trendline LRC + and the price went pullback.
4. Profit-taking areas are usually measured by support and resistance levels. Please refer to the bold line( support & resistance), fibo key level,
and trendline.
*To avoid false signals/wrong positions, you can use the EMA line as a guide and follow the trends, which are the buying weight when the price is above the 20/50 ema, and the selling weight when the price is below the 20/50 ema. EMA can be reset on the input setting.
STEPS of MAPPING/PROJECTION:
1. Use a bigger timeframe such as 4 hours or 1 hour
2. Use LRC to identify buy/sell weights when the price makes a zig-zag patent
3. Use monthly and weekly fibo levels to know support and resistance. This fibo is very important to see if the price will make an extension or
retracement based on the regression channel earlier. So here we can evaluate which area to buy/sell/take-profit/exit and the reversal of a
market price.
You can also create an ALERT CONDITION to help you get a reminder of signals and price trend changes
The original instrument has been retained but changed in terms of display & facelift features.
Hopefully, the new one will assist you in making analysis and strategy of trading activities successfully.
THIS IS NOT A BUY/SELL CALL, ONLY STUDY IDEAS AND ANALYSIS BASED ON MEASUREMENT TOOLS FOR EDUCATION AND GUIDANCE PURPOSES.PLEASE TAKE AT YOUR OWN RISK.
Moving Average Directional IndexMADX is ADX-inspired indicator with moving averages that determines strength of a trend, as well as its direction. Indicator works following:
As the value of MADX increases, so does the strength of a trend
If MADX+ ( green line - bullish MADX ) crosses above MADX- ( red line - bearish MADX ) we consider trend as bullish and vice versa..
There will be situations where MADX- and MADX+ cross multiple times in a short period of time -> that will mean that market indecision is happening and big move will most likely happen after it.
For the calculation of MADX+ and MADX- we need Moving Averages or Exponential Moving Averages with three specific sources ( high, close, low ).
Now, the calculation of each MADX will differ
=> for MADX+: Moving Average (high) / Moving Average (close)
=> for MADX-: Moving Average (close) / Moving Average (low)
Length of Moving Average is editable.
Fractal-Dimension-Index-Adaptive Trend Cipher Candles [Loxx]Fractal-Dimension-Index-Adaptive Trend Cipher Candles is a candle coloring indicator that shows both trend and trend exhaustion using Fractal Dimension Index Adaptivity. To do this, we first calculate the dynamic period outputs from the FDI algorithm and then we injection those period inputs into a correlation function that correlates price input price to the candle index. The closer the correlation is to 1, the lighter the green color until the color turns yellow, sometimes, indicating upward price exhaustion. The closer the correlation is to -1, the lighter the red color until it reaches Fuchsia color indicating downward price exhaustion. Green means uptrend, red means downtrend, yellow means reversal from uptrend to downtrend, fuchsia means reversal from downtrend to uptrend.
What is the Fractal Dimension Index?
The goal of the fractal dimension index is to determine whether the market is trending or in a trading range. It does not measure the direction of the trend. A value less than 1.5 indicates that the price series is persistent or that the market is trending. Lower values of the FDI indicate a stronger trend. A value greater than 1.5 indicates that the market is in a trading range and is acting in a more random fashion.
Included
Loxx's Expanded Source Types
Related indicators:
Adaptive Trend Cipher loxx]
CFB-Adaptive Trend Cipher Candles
Dynamic Zones Polychromatic Momentum Candles
RSI Precision Trend Candles
Smoother Moving Average w/ DSL [Loxx]Smoother Moving Average w/ DSL is a Smoother Filter indicator with Discontinued Signal Lines to drastically reduce noise and improve signal quality.
What is the Smoother Filter?
The Smoother filter is a faster-reacting smoothing technique which generates considerably less lag than the SMMA ( Smoothed Moving Average ). It gives earlier signals but can also create false signals due to its earlier reactions. This filter is sometimes wrongly mistaken for the superior Jurik Smoothing algorithm.
What are DSL Discontinued Signal Line?
A lot of indicators are using signal lines in order to determine the trend (or some desired state of the indicator) easier. The idea of the signal line is easy : comparing the value to it's smoothed (slightly lagging) state, the idea of current momentum/state is made.
Discontinued signal line is inheriting that simple signal line idea and it is extending it : instead of having one signal line, more lines depending on the current value of the indicator.
"Signal" line is calculated the following way :
When a certain level is crossed into the desired direction, the EMA of that value is calculated for the desired signal line
When that level is crossed into the opposite direction, the previous "signal" line value is simply "inherited" and it becomes a kind of a level
This way it becomes a combination of signal lines and levels that are trying to combine both the good from both methods.
In simple terms, DSL uses the concept of a signal line and betters it by inheriting the previous signal line's value & makes it a level.
Included
2 Signal types
Alerts
Loxx's Expanded Source Types
Bar coloring
Directional Movement RibbonWhat makes this different from directional movement index?
The aim is to reduce the amount of data analysis necessary before taking action; currently using DMI requires reviewing the DM+ and DM- plots, and ADX as well as review the overall trend of each one. Also there is the final analysis to determine whether a strong trend hasn’t been established at all.
This indicator condenses the information found from the standard DMI into an intuitive colored ribbon that reveals direction and strength at a glance.
How to use it?
Review the ribbon for sentiment based on color, green being bullish and red being bearish, (if using default color scheme). The brightness of the color determines the strength of the sentiment, brightest being strongest. If no color is represented at all then it is due to weakness and/or lack of direction.
Features
All colors customizable
Toggle display of indecision areas
Adjust levels considered strong, weak trends
Which markets is this meant for?
This can be used in any market, though it’s recommended to use with liquid markets where direction and strength can be found often.
What conditions?
Recommend to utilize with key levels and most commonly utilized moving average periods such as 20, 50, 100 or 200.
ATR Trend Bands [Misu]█ This indicator shows an upper and lower band based on price action and ATR (Average True Range)
The average true range (ATR) is a market volatility indicator used in technical analysis.
█ Usages:
The purpose of this indicator is to identify changes in trends and price action.
It is mainly used to identify breaking points and trend reversals.
But it can also be used to show resistance or support levels.
█ Features:
> Buy & Sell Alerts
> Buy & Sell Labels
> Color Bars
> Show Bands
█ Parameters:
Length: Length is used to calculate ATR.
Atr Multiplier: A factor used to balance the impact of the ATR on the Trend Bands calculation.
Auto Linear Trend Target x16Experienced traders always tell us that “Never trade against the trend.” or “Trend is our friend.”. Yes sure, no one wants to trade against the trend. However, there are a lot of trends with different types and cycles, then which trend to follow, which trend they are mentioning? This tool (also known as ALTT x16, Laser Net x16) will support us in identifying different linear trends with different cycles. Nearest history-based targets are also added for our convenience of completeness.
Markets: All.
Timeframes: All. Recommendation: 30m and above.
Periods: Up to 16.
Usage: The higher period of a trend, the more strength it has. Enter when price breakouts a trend line and exit at the nearest trend line and target.
RSI Momentum Acceleration by TartigradiaPlots the momentum acceleration oscillators from price and RSI, rescaled and with areas above/below highlighted.
Usage: in a nutshell, when the background is yellow, it's bearish (RSI decelerates faster than price), whereas when the background is green, it's bullish (RSI accelerates faster than price). It appears to detect early some reversals that are otherwise difficult to detect.
Note: it supports using any other indicator's output as the second source input, instead of RSI. PineScript does not allow for more than one source to receive input from other indicators, all the others must only use price as an input.
This indicator uses the core routine to calculate Momentum Acceleration Oscillators by DGT:
This indicator is based on the idea of stinkbug : "RSI is a good momentum indicator showing how excited ppl are on a move, this is why divergences on it work so well. I would like to see the change accelerating or slowing on a move up or down.."
Intraday 5 Day Moving Average for Swing TraderThis indicator helps swing trader to quickly see if a stock or an index is in a short term up- or downtrend.
The 5 Day Moving Average line is shown on all intraday timeframes like 5, 10, 15, 30, 60, 65 and so on.
When an index like SPY or QQQ shows a green 5 DMA line, the index is in a short term uptrend and you can buy stocks for a swing trade,
when the line turns red be careful and stop buying stocks, instead watch out to short stocks.
In addition to the 5 DMA line you can show the percent distance to the 5 DMA and have multiple options to customize the indicator.
Features
■ Use SMA or EMA for the 5 DMA
■ Use different intraday timeframes or show on daily
■ Show the distance in percent
■ Different color modes
■ Multiple customize options
Pierre_crypt0 Medium/Long Term Trend EMAEMA / MA used by pierre_crypt0 to identify the medium / long-term trend
- Green = 100 EMA
- Blue = 200 MA
- Pink = 300 MA
- Black = 200 EMA
These three are used to refer to the short-term trend. The leading indicator he uses alongside horizontal levels to decide on his exposure/positioning.
Everyone keeps asking on Twitter, just compiled them into an indicator.
R2-Adaptive RegressionOVERVIEW
This is an implementation of alexgrover's R2-Adaptive Regression optimized for the latest version of TradingView.
Full details on the indicator are on alexgrover's page here:
Smooth OscillatorThis is a an Oscillator based on RSI .
As you can see, entry signal for long is when the indicator and bar color is green and exit when red.
Entry signal for short is when the bar turns red and exit when green.
You should always trade with the trend, this oscillator helps to know where the trend is going, because as the trend is exhausting the plot waves moves to the oversold or overbought area, which can help to know when a reversal is coming.
This is a test version, use under your own discretion and do the proper backtesting.
Please comment your experience.
Auto Fibonacci Levels + Auto Trend Line generatorAnother indicator for you guys!!!
This indicator consists of the 5 key Fibonacci retracement levels, plotted automatically to user input settings. I also have included an auto support/resistance trend line generator.
What is a Fibonacci retracement?
'Fibonacci retracement is a method of technical analysis for determining support and resistance levels. It is named after the Fibonacci sequence of numbers, whose ratios provide price levels to which markets tend to retrace a portion of a move before a trend continues in the original direction.' - Wikipedia
How to use the Fibonacci retracement?
- The Fibonacci levels are default. These percentiles from price to the average of the high in a sample and low in a sample give you a guideline of where a bottom may be, where a top may be, and where a range is being created.
- Look for the price to reject from 61.8% and 76.4%, and also look for price to bounce from 38.2% and 23.6%. If a lower low/higher high is made, the fib levels will follow and the percentiles within will be recalculated after a 5 candle offset period.
- If you see price trending towards the lower percentiles (38&23) and using the 50% as resistance, look for a break downwards and vice versa.
-This Fibonacci set as all others is subject to fake-out, always use this with another series indicator, or don't use it as a signal for entry at all (unless you have a backdated strategy)
How to use the trend line generator?
-The trend line generator will only plot when a lower low/higher high has taken place within the input amount of candles. It is also offset by a user amount.
-The check box will give the option to have the trend line's plot or not.
- If you see a green/red dot it means that that will be your first coordinate for the trend line, and until the computations are complete it will give you an idea of which direction it will be in (resistance or support)
-When opening this indicator zoom out all the way to connect any trend lines that do not load automatically.
Let me know if you have any questions, suggestions or issues! Thank you everyone!
-Cheatcode1 :)
SP:SPX TVC:DXY BMFBOVESPA:EUR1! CME:BTC1! BINANCE:BTCUSDT
NNFX Exposure UtilityOVERVIEW
This tool allows the user to manually keep track of how much of their account is currently exposed to each currency, and keep that information handy and organized on the chart as a table.
It is specialized for NNFX traders who are trading all the pairs among the 9 major currency crosses: AUD, CAD, CHF, EUR, GBP, JPY, NZD, SGD, USD.
HOW DO I USE THIS INDICATOR?
Before you take a trade, you should open the indicator settings for this indicator and check off which currencies you are about to go long and short on. Here are 3 trades taken as examples:
If you go long on EUR/USD with 2% risk, your exposure is 2% long on EUR and 2% short on USD.
Then if you go short on GBP/SGD with 2% risk, your exposure is 2% short on GBP and 2% long on SGD.
But if you go long on SGD/JPY with 2% risk, your exposure would now be 4% long on SGD and 2% short on JPY. This is against your rules if you are trading the NNFX way. So this tool allows you to see when you are about to accidentally overexpose yourself to any currency pair.
Net New Highs/Lows (With visible code)Basically the same script than Carusolnsights but without hidding the lines of code...
"This indicator displays the net number of stocks on the Nasdaq Composite making 52-week highs or lows. For instance, if there are 60 new 52-week highs and 20 new 52-week lows, the net number will display 40 net new 52 week highs. This indicator is particularty useful in gauging what the breadth is of the Nasdaq.
Three days of net 52-week highs show a healthy market which is conducive to increasing exposure. This condition is highlighted with a green background.
Three days of net 52-week lows show an unhealthy market which is conducive to reducing exposure. This condition is high|lighted with a red background."
Faytterro EstimatorWhat is Faytterro Estimator?
This indicator is an advanced moving average.
What it does?
This indicator is both a moving average and at the same time, it predicts the future values that the price may take based on the values it has taken before.
How it does it?
takes the weighted average of data of the selected length (reducing the weight from the middle to the ends). then draws a parabola through the last three values, creating a predicted line.
How to use it?
it is simple to use. You can use it both as a regression to review past prices, and to predict the future value of a price. uptrends are in green and downtrends are in red. color change indicates a possible trend change.
NSDT MA High-LowThis may seem like a pretty basic Moving Average indicator but I haven't seen one that changes the calculation point depending if the market is going up or down.
I've added three EMA's (length of 20) on this sample chart to demonstrate the differences. These are not included with the indicator.
Green, EMA calculated on High
Red, EMA calculated on Low
Yellow, EMA calculated on Close (default)
Blue, EMA calculated on HIGH when rising but on LOW when falling. (looks at 3 candles back to gauge direction)
* * * Note you can choose between 5 different Moving Average types
Notice how the Blue line (when going up it's calculated on the High) is catching up to the Green line (which is already calculated on the High)?
Notice how the Blue line (when going down so it's calculated on the Low) is catching up to the Red line (which is already calculated on the Low)?
This gives a faster response in the direction of the market because it switches between calculating on the High or Low based on market direction.
This script is free and open source.
Pivot Average [Misu]█ This Indicator is based on Pivot Points.
It aggregates closed Pivot Points to determine a " Pivot Average " line.
Pivot Points here refer to highs and lows.
█ Usages:
Pivot Average can be used as resistance or breakout area.
It is also very usefull to find battle zones.
It can also be used as a trend indicator: when the price is below, trend is down, when price is above, trend is up.
Mixed with momentum/volatility indicator it is very powerfull.
█ Parameters:
Deviation: Parameter used to calculate pivots.
Depth: Parameter used to calculate pivots.
Length: History Lenght used to determine Pivot Average.
Smoothing MA Lenght: MA lenght used to smooth Pivot Average.
Close Range %: Define price percentage change required to determine close pivots.
Color: Color of the Pivot Average.
Multi TF Trend Indicator
...Mark Douglas in his book Trading in the Zone wrote
The longer the time frame, the more significant the trend, so a trending market on a daily bar chart is more significant than a trending market on a 30-minute bar chart. Therefore, the trend on the daily bar chart would take precedence over the trend on the 30-minute bar chart and would be considered the major trend. To determine the direction of the major trend, look at what is happening on a daily bar chart. If the trend is up on the daily, you are only going to look for a sell-off or retracement down to what your edge defines as support on the 30-minute chart. That's where you will become a buyer. On the other hand, if the trend is down on the daily, you are only going to look for a rally up to what your edge defines as a resistance level to be a seller on the 30-minute chart. Your objective is to determine, in a downtrending market, how far it can rally on an intraday basis and still not violate the symmetry of the longer trend. In an up-trending market, your objective is to determine how far it can sell off on an intraday basis without violating the symmetry of the longer trend. There's usually very little risk associated with these intraday support and resistance points, because you don't have to let the market go very far beyond them to tell you the trade isn't working.
The purpose of this indicator to show both the major and minor trend on the same chart with no need to switch between timeframes
Script includes
timeframe to determine the major trend
price curve, close price is default, but you can pick MA you want
type of coloring, either curve color or the background color
Implementation details
major trend is determined by the slope of the price curve
Further improvements
a variation of techniques for determining the major trend (crossing MA, pivot points etc.)
major trend change alerts
Thanks @loxx for pullData helper function
Trend ChangeThis indicator displays a general trend change. It shows an arrow on the candle from where the trend change is expected.
The trend change is calculated based on the previous candle open/close and the corresponding volume.
Chartpunk Trading SystemINTRODUCTION
I am happy to present the system which I am using in my daily free market updates.
The system is based on my own trading strategy whereby I am focusing on trend and momentum. I have developed this indicator for my own using, the main purpose was to provide me with a simplified outlook on all parameters that I am following, and make it easier to follow multiple assets.
I am amazed to see my audience growing, and since I have received multiple requests for access to this system, I have decided to publish the indicator on TradingView. I hope it will be useful for many of you in understanding core trend and momentum easier and faster.
TREND STRUCTURE
The moving average based system developed by the late Tyler Jenks has made a big impression to me years ago, and I have started to build my position trading system around his concept. The core idea is that when analyzing trend, the price "is just noise". Tyler declared that instead of the actual price, you should focus on price trends, based on three moving averages, their alignment and crosses. Focusing on the trend structure provides you with a cleaner understanding of the market then being fixated on the actual price. Tyler has used a very short moving average (3) instead of the price, and two longer averages (7 and 30) to identify trend direction. The alignment of these three moving averages provide you with guidance on whether to be short or long, and on the extent of being short or long. Further to the alignment of these moving averages, their direction (ascending or descending) is a further aspect to consider. Try taking off the price from your chart, you will see how these three moving averages provide you with a clean trend structure.
This indicator is plotting the 3,7,30 moving averages accordingly, but you are free to alter the settings according to your own needs.
MOMENTUM (Multi Timeframe!)
Further to the general trend structure, I am using market momentum to confirm my entries and exits. The most important market indicators to me in this respect are the RSI, DMI and Momentum Oscillator values. A bullish confluence of these momentum indicators are a confirmation for me on a long entry, and a bearish confluence may confirm a short entry.
This aspect is where I believe my indicator is a huge help. Instead of having to check for confluence separately, the indicator is simply signaling confluence by painting the bars, thus providing an easy and quick reading of current momentum.
Even further, the indicator is able to analyize the underlying indicators on three timeframes simultaneously, and paint the candles only in case of total confluence. This has been a huge help in my trading, as it provides me with an immediate MTF momentum reading upon opening a chart.
MY PREFERRED USE OF THIS INDICATOR
I am mainly trading Bitcoin, and the core settings of the indicator are preset according to my experience on this market. You may however easily alter the settings according to your own needs and approach.
I am opening and closing positions on the 1-day timeframe, and the candles are showing to me momentum confluence on the 1-day, 3-day and 1-week timeframes. Hence, if on all three timeframes there is a bullish confluence of all momentum oscillators (RSI, Mom, DMI), the candles are green. So easy, as I do not have to browse through timeframes and oscillators individually. The bearish confluence is accordingly signaled by red candles. Grey candles are neutral, showing the lack of confluence.
Whenever I see a momentum confluence change (neutral to bull, neutral to bear etc.), I analyze the trend structure of the moving averages. If the moving average structure is confirming the position, I am opening.
SUMMARY
This indicator is providing a very clean and quick-to-read outlook of an otherwise rather time and focus intensive study. Instead of checking for confluence of three momentum indicators on three timeframes, you immediately see confluence with the candle paint. The moving average structure is promptly there to confirm the read. This is where the real power of this indicator is lying, and I assume this is why the more and more of you have started to daily follow my daily market updates.
