Bias Finder [UAlgo]The "Bias Finder " indicator is a tool designed to help traders identify market bias and trends effectively. This indicator leverages smoothed Heikin Ashi candles and oscillators to provide a clear visual representation of market trends and potential reversals. By utilizing higher timeframes and smoothing techniques, the indicator aims to filter out market noise and offer a more reliable signal for trading decisions.
🔶 Key Features
Heikin Ashi Candles: The indicator uses Heikin Ashi candles, a special type of candlestick that incorporates information from the previous candle to potentially provide smoother visuals and highlight potential trend direction.
Oscillator: The indicator calculates an oscillator based on the difference between the smoothed opening and closing prices of a higher timeframe. This oscillator helps visualize the strength of the bias.
Light Teal: Strong bullish trend.
Dark Teal: Weakening bullish trend.
Light Red: Strong bearish trend.
Dark Red: Weakening bearish trend.
Standard Deviation: The indicator can optionally display upper and lower standard deviation bands based on the Heikin Ashi high and low prices. These bands can help identify potential breakout areas.
Oscillator Period: Adjust the sensitivity of the oscillator.
Higher Timeframe: Select a timeframe for the Heikin Ashi candles and oscillator calculations (must be equal to or greater than the chart's timeframe).
Display Options: Choose whether to display Heikin Ashi candles, market bias fill, standard deviation bands, and HA candle colors based on the bias.
Alerts: Enable/disable specific alerts and customize their messages.
🔶 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.
Trend Analizi
Tick Time/SpeedThe Tick Time/Speed indicator highlights the latest TradingView feature, Tick Charts (beta) , and aims to provide a visual representation of the speed.
🔶 USAGE
1-minute chart
Unlike regular charts, where the time difference between two bars is relatively equal, the time difference between two tick bars can vary.
1T chart
10T chart (ticks groups per 10)
100T chart (ticks groups per 100)
(zoom in to see the time scale, as can be seen in the above two examples, higher values represent more ticks in a shorter period of time)
The difference in time (speed) against previous tick(s) is added to an array and sorted. The measured speed is compared against every value in the array and then plotted.
A smaller difference in time against other ticks (more ticks in less time) is plotted higher, while a more prominent time difference is plotted at a lower level.
The amount of data (to compare with) can be set by "Calculated Bars".
The above example uses data from the last 5000, 100, and 77 bars.
🔶 SETTINGS
• Color & transparency setting
• Calculated Bars: sets the size of the array; in other words, sets the amount of available data for 'speed' comparison
🔶 NOTES
At this point of time, Tick Charts are only reserved for Professional-tier plans – Expert, Elite, or Ultimate plan.
The indicator can only be used with Tick Data .
Not all exchanges have tick data at the moment, this means not every ticker will have Tick Data.
AI-Powered Breakout with Advanced FeaturesDescription
This script is designed to detect breakout moments in financial markets using a combination of traditional breakout detection methods and adaptive moving averages. By leveraging elements of artificial intelligence, the script provides a more dynamic and responsive approach to identifying potential entry and exit points in trading.
Usefulness
This script stands out by integrating a traditional breakout finder with an adaptive moving average component. The adaptive moving average adjusts dynamically based on the differences between fast and slow exponential moving averages (EMAs), offering a more flexible and responsive detection of support and resistance levels. This combination aims to reduce false signals and enhance the reliability of breakout detections, making it a valuable tool for traders seeking to capture market movements more effectively.
Features
1. Breakout Detection: Utilizes pivot highs and lows to identify significant breakout points over a user-defined period. This method helps in capturing the essential support and resistance levels that are critical in breakout trading.
2. AI Machine Learning Component - Adaptive Moving Average: Implements an adaptive moving average using two exponential moving averages (EMAs). adaptiveMA is dynamically adjusted based on the difference between a fast average and a slow average.
3. Buy/Sell Signals: The script generates buy and sell signals when bullish and bearish breakouts occur, respectively. These signals are visually represented on the chart, helping traders to quickly identify potential trading opportunities.
4. Visualization: Draws horizontal lines at identified breakout levels and plots shapes (arrows) on the chart to indicate buy/sell signals. This makes it easy for traders to see where significant breakout points are and where to consider entering or exiting trades.
Underlying Concepts
1. Breakout Finder Logic: The script uses pivot points (highs and lows) to detect breakout levels. It stores these pivot points in arrays and monitors them for persistence, ensuring that the detected breakouts are significant and reliable.
2. Adaptive Moving Average (AMA): The AMA is a key component that enhances the script's responsiveness. By calculating the differences between fast and slow EMAs, the AMA adapts to changing market conditions, providing a more accurate measure of trends and potential reversals.
How to Use
• Adjustable Parameters: The script includes several user-adjustable parameters:
o Lookback Length: Defines the period over which the script calculates the highest high and lowest low for breakout detection.
o Multiplier for Adaptive MA: Adjusts the sensitivity of the adaptive moving average.
o Period for Pivots: Sets the period for detecting pivot highs and lows.
o Max Breakout Length: Specifies the maximum length for breakout consideration.
o Threshold Rate: Determines the threshold rate for breakout validation.
o Minimum Number of Tests: Sets the minimum number of tests required to validate a breakout.
o Colors and Line Style: Customize the colors and line styles for breakout levels.
Interpreting Signals
o Green Arrows: Indicate a bullish breakout signal, suggesting a potential buy opportunity.
o Red Arrows: Indicate a bearish breakout signal, suggesting a potential sell opportunity.
o Horizontal Lines: Show the breakout levels, helping to visualize support and resistance areas.
By combining traditional breakout detection with advanced adaptive moving averages, this script aims to provide traders with a robust tool for identifying and capitalizing on market breakouts.
Credits
Parts of this script were inspired and adapted from the "Breakout Finder" script by LonesomeTheBlue. Significant improvements include the integration of the adaptive moving average component and enhancements to the breakout detection logic.
Supertrend with Extreme SignalsOriginality and Usefulness
The "Supertrend with Extreme Signals" indicator is an innovative tool I've developed to combine the strengths of the Supertrend indicator with the RSI (Relative Strength Index). This combination enhances the accuracy of entry and exit signals, making it more useful for traders looking to gain a comprehensive understanding of market conditions.
Justification for Mashup:
Supertrend: This is a trend-following indicator that identifies the current market trend and potential reversal points by adjusting dynamically based on market volatility.
RSI: A momentum oscillator that measures the speed and change of price movements. It helps pinpoint overbought and oversold conditions, adding an extra layer of confirmation to trend signals.
By merging these two indicators, the script filters out false signals and improves the precision of trade entries and exits. The Supertrend identifies the trend direction, while the RSI confirms the strength and potential reversals within that trend.
Description
Overview
The "Supertrend with Extreme Signals" indicator is a powerful hybrid tool that brings together the trend-following capability of the Supertrend and the momentum analysis of RSI. This integration provides clear buy and sell signals, helping traders make more informed decisions.
What It Does
Trend Identification: Utilizes the Supertrend to determine the prevailing market trend.
Signal Confirmation: Uses RSI to confirm signals by identifying overbought and oversold conditions.
Buy and Sell Signals: Generates buy signals when the price crosses above the Supertrend line and RSI indicates oversold conditions. Generates sell signals when the price crosses below the Supertrend line and RSI indicates overbought conditions.
How It Works
Supertrend Calculation:
Calculates the Average True Range (ATR) to assess market volatility.
Computes upper and lower levels based on the mid-price and ATR.
Determines trend direction by smoothing these levels over a specified period.
Dynamically adjusts the Supertrend value based on market conditions.
RSI Calculation:
Calculates the RSI over a defined period to measure price momentum.
Uses RSI levels to identify overbought (above 70) and oversold (below 30) conditions.
Signal Generation:
Buy Signal: Triggered when the price crosses above the Supertrend line and RSI is below the oversold threshold.
Sell Signal: Triggered when the price crosses below the Supertrend line and RSI is above the overbought threshold.
How to Use It
Trend Following: Use the Supertrend color to identify the current trend (green for uptrend, red for downtrend).
Entry Signals: Look for buy signals (green label) when the price crosses above the Supertrend line and RSI is in the oversold zone.
Exit Signals: Look for sell signals (red label) when the price crosses below the Supertrend line and RSI is in the overbought zone.
Visual Confirmation: The background color changes based on the trend direction, providing a quick visual cue for the current market state.
This script is especially useful for traders who combine trend-following strategies with momentum indicators. It helps filter out false signals and provides a robust framework for identifying profitable trading opportunities.
Concepts Underlying Calculations
ATR (Average True Range): Measures market volatility by calculating the average range of price movements over a specified period.
Supertrend: A trend-following indicator that adjusts dynamically based on market volatility.
RSI (Relative Strength Index): A momentum oscillator that measures the speed and change of price movements, helping to identify overbought and oversold conditions.
By combining these concepts, the "Supertrend with Extreme Signals" indicator offers a balanced approach to trading. It considers both trend direction and market momentum, making it a powerful tool for improving trading performance through informed market analysis.
Engulfing Candles with Sweep by AydmaxxEngulfing Candles with Sweep Indicator
The "Engulfing Candles with Sweep" indicator identifies bullish and bearish engulfing candles that exhibit liquidity sweeps. It marks these significant candlestick patterns and draws a 50% Fibonacci retracement line from the high to low of the engulfing candle. The indicator helps traders spot potential reversal points where large market players might be accumulating or distributing positions.
Key Features:
Bullish Engulfing Candle with Sweep:
Identifies when a bullish candle (closing higher than it opened) engulfs the previous bearish candle (closing lower than it opened).
Ensures that the bullish candle’s low is lower than the previous candle’s low, indicating a sweep of liquidity.
Marks the identified bullish candle with a symbol below the candlestick.
Draws a 50% Fibonacci retracement line from the high to the low of the bullish engulfing candle.
Bearish Engulfing Candle with Sweep:
Identifies when a bearish candle (closing lower than it opened) engulfs the previous bullish candle (closing higher than it opened).
Ensures that the bearish candle’s high is higher than the previous candle’s high, indicating a sweep of liquidity.
Marks the identified bearish candle with a symbol above the candlestick.
Draws a 50% Fibonacci retracement line from the high to the low of the bearish engulfing candle.
Customizable Settings:
Fibonacci Line Color: Allows customization of the Fibonacci retracement line color for both bullish and bearish engulfing candles.
Fibonacci Line Style: Provides options to choose the line style (solid, dotted, dashed).
Fibonacci Line Width: Enables adjustment of the line width for better visibility.
Toggle Fibonacci Lines: Option to enable or disable the display of Fibonacci retracement lines.
How to Use:
Apply the indicator to your chart.
Look for symbols below or above the candlesticks, indicating bullish or bearish engulfing candles with liquidity sweeps.
Utilize the 50% Fibonacci retracement lines to identify potential support or resistance levels.
Benefits:
Helps in identifying key reversal patterns in the market.
Provides visual aids with Fibonacci retracement levels for potential entry and exit points.
Enhances trading decisions by confirming engulfing patterns with liquidity sweeps.
Multi-Step Vegas SuperTrend - strategy [presentTrading]Long time no see! I am back : ) Please allow me to gain some warm-up.
█ Introduction and How it is Different
The "Vegas SuperTrend Strategy" is an enhanced trading strategy that leverages both the Vegas Channel and SuperTrend indicators to generate buy and sell signals.
What sets this strategy apart from others is its dynamic adjustment to market volatility and its multi-step take profit mechanism. Unlike traditional single-step profit-taking approaches, this strategy allows traders to systematically scale out of positions at predefined profit levels, thereby optimizing their risk-reward ratio and maximizing potential gains.
BTCUSD 6hr performance
█ Strategy, How it Works: Detailed Explanation
The Vegas SuperTrend Strategy combines the strengths of the Vegas Channel and SuperTrend indicators to identify market trends and generate trade signals. The following subsections delve into the details of how each component works and how they are integrated.
🔶 Vegas Channel Calculation
The Vegas Channel is based on a simple moving average (SMA) and the standard deviation (STD) of the closing prices over a specified period. The channel is defined by upper and lower bounds that are dynamically adjusted based on market volatility.
Simple Moving Average (SMA):
SMA_vegas = (1/N) * Σ(Close_i) for i = 0 to N-1
where N is the length of the Vegas Window.
Standard Deviation (STD):
STD_vegas = sqrt((1/N) * Σ(Close_i - SMA_vegas)^2) for i = 0 to N-1
Vegas Channel Upper and Lower Bounds:
VegasChannelUpper = SMA_vegas + STD_vegas
VegasChannelLower = SMA_vegas - STD_vegas
The details are here:
🔶 Trend Detection and Trade Signals
The strategy determines the current market trend based on the closing price relative to the SuperTrend bounds:
Market Trend:
MarketTrend = 1 if Close > SuperTrendPrevLower
-1 if Close < SuperTrendPrevUpper
Previous Trend otherwise
Trade signals are generated when there is a shift in the market trend:
Bullish Signal: When the market trend shifts from -1 to 1.
Bearish Signal: When the market trend shifts from 1 to -1.
🔶 Multi-Step Take Profit Mechanism
The strategy incorporates a multi-step take profit mechanism that allows for partial exits at predefined profit levels. This helps in locking in profits gradually and reducing exposure to market reversals.
Take Profit Levels:
The take profit levels are calculated as percentages of the entry price:
TakeProfitLevel_i = EntryPrice * (1 + TakeProfitPercent_i/100) for long positions
TakeProfitLevel_i = EntryPrice * (1 - TakeProfitPercent_i/100) for short positions
Multi-steps take profit local picture:
█ Trade Direction
The trade direction can be customized based on the user's preference:
Long: The strategy only takes long positions.
Short: The strategy only takes short positions.
Both: The strategy can take both long and short positions based on the market trend.
█ Usage
To use the Vegas SuperTrend Strategy, follow these steps:
Configure Input Settings:
- Set the ATR period, Vegas Window length, SuperTrend Multiplier, and Volatility Adjustment Factor.
- Choose the desired trade direction (Long, Short, Both).
- Enable or disable the take profit mechanism and set the take profit percentages and amounts for each step.
█ Default Settings
The default settings of the strategy are designed to provide a balanced approach to trading. Below is an explanation of each setting and its effect on the strategy's performance:
ATR Period (10): This setting determines the length of the ATR used in the SuperTrend calculation. A longer period smoothens the ATR, making the SuperTrend less sensitive to short-term volatility. A shorter period makes the SuperTrend more responsive to recent price movements.
Vegas Window Length (100): This setting defines the period for the Vegas Channel's moving average. A longer window provides a broader view of the market trend, while a shorter window makes the channel more responsive to recent price changes.
SuperTrend Multiplier (5): This base multiplier adjusts the sensitivity of the SuperTrend to the ATR. A higher multiplier makes the SuperTrend less sensitive, reducing the frequency of trade signals. A lower multiplier increases sensitivity, generating more signals.
Volatility Adjustment Factor (5): This factor dynamically adjusts the SuperTrend multiplier based on the width of the Vegas Channel. A higher factor increases the sensitivity of the SuperTrend to changes in market volatility, while a lower factor reduces it.
Take Profit Percentages (3.0%, 6.0%, 12.0%, 21.0%): These settings define the profit levels at which portions of the trade are exited. They help in locking in profits progressively as the trade moves in favor.
Take Profit Amounts (25%, 20%, 10%, 15%): These settings determine the percentage of the position to exit at each take profit level. They are distributed to ensure that significant portions of the trade are closed as the price reaches the set levels, reducing exposure to reversals.
Adjusting these settings can significantly impact the strategy's performance. For instance, increasing the ATR period or the SuperTrend multiplier can reduce the number of trades, potentially improving the win rate but also missing out on some profitable opportunities. Conversely, lowering these values can increase trade frequency, capturing more short-term movements but also increasing the risk of false signals.
SPX Mapped Gaps [Mxwll]Hello traders 👋
This indicator "SPX Mapped Gaps" detects gaps from the SPX (or the trader's choice of index/asset) and plots them for the asset on your chart!
Features
Selectable comparison symbol
Gaps from the selected symbol (SPX by default) are plotted for the asset on your chart - serving as potential support/resistance levels!
Closest gaps from comparison symbol displayed in upper-right table
Overlapped gaps deleted automatically - less clutter!
How this script works
The "SPX Mapped Gaps" is designed to help traders determine price levels for the asset on their chart where a major index (any asset) gapped up or down.
Of course, a gap that occurs on SPX (4-digit price) is incompatible with the price chart of BTC (5-digit price). To circumvent this, the percentage distance of the gap from SPX is determined, and a gap level is drawn equidistantly (up/down) from the open price of the asset on your chart. With this method, the proportion of the gap is maintained at the price area it occurred for the asset on your chart!
The image above outlines functionality for the indicator!
Key points:
Up gaps are denoted by green boxes
Down gaps are denoted by red boxes
All gaps are listed with their start and end price for the comparison asset (SPX for the example). These labels can be hidden at the user's discretion.
Gaps are expected to act as support/resistance during their lifetime
The image above explains the output of the script, including line style indications!
Solid lines indicate that the leverage used for at your entry price constitutes an active trade. Dotted lines mean the trade has already achieved your profit target for that leverage, or stopped out.
The image above explains the table attached to the indicator!
This table displays the closest gaps to the current asset price. The status (up gap or down gap) from the gap to the current price is also detailed.
Why are gaps on the SPX, or major index, relevant to BTC and other assets?
When a gap on the major indices occurs, it's expected that strong aggregate buying or selling pressure will transpire for BTC and other coins. Due to this, the presence of a gap on a major index might correspond to increased activity on smaller market-cap assets with some degree of positive correlation to the index. Consequently, the price level for the asset at which a gap for the major index occurred may function as support/resistance for future price!
That is all for this - thanks traders!
Machine Learning Adaptive SuperTrend [AlgoAlpha]📈🤖 Machine Learning Adaptive SuperTrend - Take Your Trading to the Next Level! 🚀✨
Introducing the Machine Learning Adaptive SuperTrend , an advanced trading indicator designed to adapt to market volatility dynamically using machine learning techniques. This indicator employs k-means clustering to categorize market volatility into high, medium, and low levels, enhancing the traditional SuperTrend strategy. Perfect for traders who want an edge in identifying trend shifts and market conditions.
What is K-Means Clustering and How It Works
K-means clustering is a machine learning algorithm that partitions data into distinct groups based on similarity. In this indicator, the algorithm analyzes ATR (Average True Range) values to classify volatility into three clusters: high, medium, and low. The algorithm iterates to optimize the centroids of these clusters, ensuring accurate volatility classification.
Key Features
🎨 Customizable Appearance: Adjust colors for bullish and bearish trends.
🔧 Flexible Settings: Configure ATR length, SuperTrend factor, and initial volatility guesses.
📊 Volatility Classification: Uses k-means clustering to adapt to market conditions.
📈 Dynamic SuperTrend Calculation: Applies the classified volatility level to the SuperTrend calculation.
🔔 Alerts: Set alerts for trend shifts and volatility changes.
📋 Data Table Display: View cluster details and current volatility on the chart.
Quick Guide to Using the Machine Learning Adaptive SuperTrend Indicator
🛠 Add the Indicator: Add the indicator to favorites by pressing the star icon. Customize settings like ATR length, SuperTrend factor, and volatility percentiles to fit your trading style.
📊 Market Analysis: Observe the color changes and SuperTrend line for trend reversals. Use the data table to monitor volatility clusters.
🔔 Alerts: Enable notifications for trend shifts and volatility changes to seize trading opportunities without constant chart monitoring.
How It Works
The indicator begins by calculating the ATR values over a specified training period to assess market volatility. Initial guesses for high, medium, and low volatility percentiles are inputted. The k-means clustering algorithm then iterates to classify the ATR values into three clusters. This classification helps in determining the appropriate volatility level to apply to the SuperTrend calculation. As the market evolves, the indicator dynamically adjusts, providing real-time trend and volatility insights. The indicator also incorporates a data table displaying cluster centroids, sizes, and the current volatility level, aiding traders in making informed decisions.
Add the Machine Learning Adaptive SuperTrend to your TradingView charts today and experience a smarter way to trade! 🌟📊
Three Anchored Moving Averages (VWAP / SMA / EMA)
This indicator allows users to anchor three types of moving averages (Simple Moving Average (SMA), Exponential Moving Average (EMA), and Volume Weighted Average Price (VWAP)) to specific points in time (anchor points)
Key Features:
Select from three Moving Average Types:
Simple Moving Average (SMA): Averages the closing prices over a specified period.
Exponential Moving Average (EMA): Gives more weight to recent prices, making it more responsive to new information.
Volume Weighted Average Price (VWAP): Averages the price weighted by volume, useful for understanding the average price at which the asset has traded over a period.
Up to Three Anchor Points:
Users can set up to three different anchor points to calculate the moving averages from specific dates and times. This allows for analysis of price action starting from significant points or specific events. For example, you can anchor to the low and high of a move to identify key levels or to points where the price takes off from a previous anchored MA.
Customisable Sentiment Options:
Each anchor point can be associated with a sentiment input (Auto, Bull, Bear, None), which influences if the MAs are displayed as lines or zones/bands:
Auto: Automatically determines the sentiment based on whether anchor points are on pivot highs and lows. If anchored to a pivot high, the system will assume a bearish sentiment and display a red band or zone between the MA OHLC4 and High. Anchoring to a pivot low will display a green band (OHLC4 - Low).
Bull: Forces a bullish sentiment (Green Band - OHLC4 to Low)
Bear: Forces a bearish sentiment (Red Band - OHLC4 to High)
None: Ignores sentiment and displays a single line (OHLC4)
Chart Matching:
The indicator includes an option to display the moving averages only if the chart symbol matches a specified ticker. This feature ensures that the indicator is relevant to the specific asset being analysed.
How to Use the Indicator:
1. Set Anchor Points: When added to your chart, select three anchor points by point and click. If you only wish to anchor to a single point, click on that point three times and disable the other two in settings once the indicator is applied.
2. Select Moving Average Type: Choose between SMA, EMA, or VWAP using the dropdown menu. EMAs are the most responsive.
3. Enable/Disable Anchor Points: Use the checkboxes to enable or disable each anchor point.
4. Select Sentiment Type: Choose between Auto, Bull, Bear, or None.
5. Chart Matching: Optionally, specify a chart symbol to restrict the indicator's display to that particular asset.
6. Interpret the Plots: The indicator plots the high, mid, and low values of the selected moving average type from each anchor point. The fills between these plots help identify potential support and resistance zones. These should be used as points of interest for pullback reversals or potential continuation if the price breaks through.
Practical Applications:
Trend Analysis: Identify the overall trend direction from specific historical points.
Support and Resistance: Determine key dynamic support and resistance levels based on anchored moving averages.
Event-Based Analysis: Anchor the moving averages to significant events (e.g., earnings releases, economic data) to study their impact on price trends.
Multi Timeframe Analysis: Higher Timeframe Anchors can be used to identify longer term trend analysis. Switching to a lower timeframe for execution triggers at these points wont distort the MA levels as they are anchored to a specific point in time
Intraday or Swing Trading: trend analysis using anchor points can be used for any style of trading (Intraday / Swing / Invest). Use anchored levels as points of interest and wait for hints in price action to try and catch the next move.
Market Internal Pivots by SyntaxGeekThis indicator combines simple pivot detection with market breadth ratios.
The thought was to show market breadth strength or weakness where price was making potential pivots.
Lookback can be adjusted and currently it supports NYSE and NASDAQ market breadth.
Configuration is limited given the simplicity but live breadth printout can be displayed at current candle.
Max label count is at 500 but the indicator makes use of the visible chart library and will redraw old pivot labels when scrolling back, up to 500.
Considering that market breadth data is only available during RTH, do not expect data during ETH sessions. I've only tested this up to 1hr timeframe so I can't guarantee higher timeframes will present correctly.
Feel free to leave feedback, happy trading!
VIX Futures Basis StrategyVIX Futures Basis Strategy
The VIX Futures Basis Strategy is a trading approach that takes advantage of the unique characteristics of the VIX index and its futures market. The VIX, often referred to as the "fear index," measures market expectations of near-term volatility. This strategy focuses on how the VIX futures contracts behave in relation to the spot VIX index and seeks to capitalize on the market's contango and backwardation phases.
Key Concepts:
VIX Index and VIX Futures:
The VIX index reflects the market's expectation of volatility over the next 30 days.
VIX futures allow traders to speculate on the future value of the VIX index.
Contango and Backwardation:
Contango occurs when the futures price is higher than the spot price, often indicating that the market expects volatility to rise in the future.
Backwardation is when the futures price is lower than the spot price, suggesting that the market expects a decrease in volatility.
Basis:
The basis is the difference between the futures price and the spot price. This strategy examines the basis for two consecutive VIX futures contracts.
Strategy Overview:
The VIX Futures Basis Strategy uses the relationship between the VIX index and its futures contracts to generate trading signals:
Long Position on Contango:
When both the front month and the second month VIX futures contracts are in contango (their prices are above the spot VIX index by a specified threshold), the strategy takes a long position.
This implies an expectation that the market will move from a state of expected higher future volatility to a more stable state, allowing profits to be made as the futures prices converge toward the spot price.
Closing Position on Backwardation:
If the basis for both futures contracts indicates backwardation (their prices are below the spot VIX index by a threshold), the strategy closes any long positions.
This condition suggests that the market anticipates decreasing volatility, and closing positions helps to avoid potential losses.
Three Drive Pattern Detector [LuxAlgo]The Three Drives Pattern Detector indicator focuses on detecting and displaying completed Three Drives patterns on the user chart. This harmonic pattern is characterized by successive higher highs / lower lows following specific ratios.
The script uses a multi-length swing detection approach, as well as adjusting ratios to ensure flexibility and a maximum number of visible Three Drives patterns.
🔶 USAGE
The bullish/bearish Three Drives pattern is commonly interpreted as a reversal pattern and is characterized by three extensions (drives) and two intermediary retracements creating consecutive higher lows (for a bullish case) or lower highs (for a bearish case).
The multi-length swing detection approach taken by the indicator allows for detecting shorter-term alongside medium/longer-term patterns simultaneously, allowing to increase in the amount of detected patterns.
Users can set a Minimum Swing length (for example 2) and a Maximum Swing length (for example 100) which defines the range of the swing point detection length, higher values for these settings will detect longer-term Three-Drives patterns, while a larger range will allow for the detection of a larger number of patterns.
Sometimes multiple dashed lines as the last segment can be observed. This means multiple Three Drives patterns sharing multiple swing points have formed, with only the last segment being different.
🔹 Retracement/Extension Ratios
The Three Drives pattern often associates the retracement/extension to Fibonacci ratios of respectively 0.618/1.272.
Some sources specify a maximum retracement/extension level of 0.786/1.618, which means the retracement should be within the 0.618-0.786 range and the extension between 1.272-1.618.
Since finding a pattern where the retracement/extension is precisely at the 0.618/1.272 levels, or even between 0.618-0.786/1.272-1.618 is rare, the script allows users to adjust those ratios, which ensures more flexibility. Depending on the widening/tightening of the ratios, allowing users to find more patterns (but potentially less valid) or more valid (but fewer patterns).
In the example above, " Show Ratios " is set to " Ratios With Margin ", showing the ideal retracement/extension level together with the margin, while in the example below, " Show Ratios " is set to " Ratios ", which shows only a line where the price should ideally reverse.
While setting the ratios wider will result in more frequent but less valid patterns, it can also create good trading opportunities.
🔹 Best Practices
The indicator doesn't include Stop Loss (SL) or Take Profit (TP) levels, however, the 1.618 Fibonacci Extension level of the last leg can commonly be used as stop loss.
Typical Take Profit areas include:
Starting point of the pattern
Each retracement level (2x)
The 0.618 retracement level of the complete pattern
In the above bullish examples, the price was lower than the lowest point of the pattern. The price reversed and attained all TP levels without hitting the SL level.
In the above bearish example, the price went above the highest point of the pattern but did not hit the SL level, after which two TP levels were hit. Then, the price quickly went up, just missing the SL level before it came back down again, hitting the last 2 TP levels.
This example shows that other Fibonacci levels an also be effective when combined with the Three Drives pattern, even in the longer term.
🔶 DETAILS
🔹 Multi Length
The core of this publication is the multi-length swing detection. To ensure the maximum amount of Three Drives patterns are found, up to 99 different swing length periods can be used to detect swing points which are then tested for valid patterns.
Using a wider variety of swing points also ensures that patterns visible only with specific Swing settings can be found on the same chart without the user needing to constantly adjust the Swing settings to find other patterns.
The user only needs to set the desired minimum and maximum Swing Length.
In this case, swing detection using swing Lengths from 3 to 100 (97 different) are computed and evaluated for patterns. Three different patterns were found on the same chart, with swing lengths 3, 4, and 6.
Note: The Maximum Swing length should be equal to or higher than the Minimum Swing Length . If the maximum value is lower than the minimum, the script will automatically take the minimum value as the maximum to prevent errors.
🔹 Width Margin %
Users can filter out patterns based on the duration of each extension/retracement segment. When the users want segments of the detected patterns to be of a similar duration, the width percentage should be set lower. When the focus is on detecting more patterns the width percentage can be set higher.
🔹 Retracement/Extension Settings
Show Ratios , set to Ratios , show the ideal Fibonacci retracement/extension level, while Ratios With Margin (example below) show the additional margins for retracement/extension.
The upper and lower limits can be visualized while hovering over the calculated ratio label.
The dashed line shows an older pattern, where the last leg has been updated.
🔹 Last Known Pattern
The included dashboard highlights the date of the most recently detected pattern; the text will show " None " if no pattern is found.
🔹 Calculated Bars
The "Calculated Bars" setting makes use of the recently introduced calc_bars_count parameter, making it possible to effectively reduce the number of historical bars during the computation of the script, which significantly improves the loading speed of the script.
Users wishing to see the most recent patterns can set this setting to 1000 for example, where only the most recent 1000 bars are used to find patterns. If every bar must be used for pattern detection, set " Calculated bars " at 0.
🔶 SETTINGS
Minimum Swing Length: Minimum length used for the swing detection.
Maximum Swing Length: Maximum length used for the swing detection.
Retracement: Range of required ratios used for testing retracements.
Extension: Range of required ratios used for testing extensions.
Width Margin: Influences the symmetry of the pattern; with a higher number allowing for less symmetry.
🔹 Style
Text Size: Text size of the ratio labels.
Show Ratios: Show the ideal ratio, upper/lower limit of ratios, or none.
🔹 Dashboard
Show Dashboard: Toggle dashboard which shows the date of the last found pattern.
Location: Location of the dashboard on the chart.
Size: Text size.
🔹 Calculation
Calculated Bars: Allows the usage of fewer bars for performance/speed improvement.
Internal/External Market Structure [UAlgo]The "Internal/External Market Structure " indicator is a tool designed to identify and visualize internal and external market structure based on swing highs and lows. It helps traders understand short-term (internal) and long-term (external) price behavior.
🔶 What are ChoCH and BoS?
Change of Character (ChoCH)
Change of character refers to the reversal of market trend either from bullish to bearish or bearish to bullish. ChoCH is also a break of market structure but in opposite direction.
If market is in bullish trend but it breaks it previous (higher) low and makes a lower low, it will be termed a “bearish change of character” as price changed its trend from bullish to bearish.
Like wise if price is in bearish trend and it breaks its previous (lower) high making a higher high it will be marked as “bullish change of character” as price changed its trend from bearish to bullish.
Break of Structure (BoS)
When price breaks its structure in direction of previous trend its called break of structure (BoS). So its a trend continuation pattern.
As you know in bullish trend price makes higher highs. Each time when price break a previous high and marks a new high its known as bullish break of structure.
But in bearish trend price makes lower lows so every time when price breaks previous low and makes a new low it is called as bearish break of structure.
🔶 Key Features
Internal Swing Length: Allowing for fine-tuning of sensitivity to smaller, more frequent market movements.
External Swing Length: Focusing on capturing broader market trends.
The indicator differentiates between internal and external market structures, using different styles and colors to represent each. Internal structures are shown with solid lines, while external structures use dashed lines, providing clear visual cues.
Internal Market Structure:
The internal market structure focuses on shorter-term swings and is useful for identifying minor trend changes and short-term price movements. Breaks of internal swing highs or lows can indicate potential changes in the market's direction or momentum. The labels "CHoCH" and "BoS" help distinguish between changes in character and break of structure events, respectively.
External Market Structure:
The external market structure captures larger, more significant market moves. It is particularly useful for identifying major trend changes and key support and resistance levels. The dashed lines and corresponding labels "CHoCH+" and "BoS+" indicate more substantial shifts in market sentiment.
For BoS (Break of Structure):
For ChoCH (Change of Character):
🔶 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.
Rally SpotterTitle: Long-Side Rally Detector – Quickly Spot Significant Upward Movements for In-Depth Analysis
Description:
Introducing the Long-Side Rally Detector or Rally Spotter, a powerful Pine Script designed to help traders and investors quickly identify areas on a chart where stocks have made significant upward rallies. This tool is perfect for anyone looking to easily locate these areas and conduct a deep study of the chart to uncover the underlying dynamics of these movements.
Purpose:
The primary goal of the Long-Side Rally Detector is to facilitate the identification of significant rallies, allowing you to delve deeper into the chart and gain valuable insights into market behavior. Once such an area is identified, you can perform a detailed analysis to understand:
When the Move Started: Pinpoint the exact moment the rally began.
How the Move Started: Analyze the initial triggers and catalysts for the upward movement.
The Chart Structure Before the Move: Examine the technical patterns and formations preceding the rally.
How the Volume Looked Like: Assess the volume dynamics and determine whether there was strong buying interest.
What Were the EPS, Sales Figures Before and After the Move: Investigate the fundamental metrics, such as earnings per share (EPS) and sales, to see how they align with the price movement.
Features:
Customizable Percentage Move: Set your preferred percentage increase to detect rallies, with a default value of 50%. This flexibility allows you to tailor the tool to various market conditions and trading strategies.
Adjustable Lookback Period: Define the lookback period in months (default is 3 months) to capture significant trends. The script intelligently adjusts the lookback period based on your chart's timeframe, whether daily, weekly, or monthly.
Focused on Upward Movements: Specifically engineered to identify long-side rallies, ensuring you capture only the most promising upward trends in stock prices.
Visual Highlighting: The script highlights areas on the chart where the stock has made the specified upward move, providing a clear and intuitive visual cue for analysis.
How to Use:
Apply the Script: Add the Long-Side Rally Detector to your TradingView chart.
Customize Settings: Use the input panel to adjust the percentage move and lookback period to fit your analysis needs.
Analyze with Confidence: Utilize the visual cues to identify significant upward movements and make informed trading decisions.
Ideal For:
Traders seeking to capitalize on momentum and trend-following strategies.
Investors looking to identify potential breakout opportunities in their portfolios.
Analysts interested in enhancing their technical analysis toolkit with a precise and customizable indicator.
Unlock the potential of your trading strategy with the Long-Side Rally Detector and stay ahead of the market by spotting key upward movements with ease! Conduct in-depth studies of identified areas to gain a comprehensive understanding of market dynamics.
Trend Strength | Flux Charts💎 GENERAL OVERVIEW
Introducing the new Trend Strength indicator! Latest trends and their strengths play an important role for traders. This indicator aims to make trend and strength detection much easier by coloring candlesticks based on the current strength of trend. More info about the process in the "How Does It Work" section.
Features of the new Trend Strength Indicator :
3 Trend Detection Algorithms Combined (RSI, Supertrend & EMA Cross)
Fully Customizable Algorithm
Strength Labels
Customizable Colors For Bullish, Neutral & Bearish Trends
📌 HOW DOES IT WORK ?
This indicator uses three different methods of trend detection and combines them all into one value. First, the RSI is calculated. The RSI outputs a value between 0 & 100, which this indicator maps into -100 <-> 100. Let this value be named RSI. Then, the Supertrend is calculated. Let SPR be -1 if the calculated Supertrend is bearish, and 1 if it's bullish. After that, latest EMA Cross is calculated. This is done by checking the distance between the two EMA's adjusted by the user. Let EMADiff = EMA1 - EMA2. Then EMADiff is mapped from -ATR * 2 <-> ATR * 2 to -100 <-> 100.
Then a Total Strength (TS) is calculated by given formula : RSI * 0.5 + SPR * 0.2 + EMADiff * 0.3
The TS value is between -100 <-> 100, -100 being fully bearish, 0 being true neutral and 100 being fully bullish.
Then the Total Strength is converted into a color adjusted by the user. The candlesticks in the chart will be presented with the calculated color.
If the Labels setting is enabled, each time the trend changes direction a label will appear indicating the new direction. The latest candlestick will always show the current trend with a label.
EMA = Exponential Moving Average
RSI = Relative Strength Index
ATR = Average True Range
🚩 UNIQUENESS
The main point that differentiates this indicator from others is it's simplicity and customization options. The indicator interprets trend and strength detection in it's own way, combining 3 different well-known trend detection methods: RSI, Supertrend & EMA Cross into one simple method. The algorithm is fully customizable and all styling options are adjustable for the user's liking.
⚙️ SETTINGS
1. General Configuration
Detection Length -> This setting determines the amount of candlesticks the indicator will look for trend detection. Higher settings may help the indicator find longer trends, while lower settings will help with finding smaller trends.
Smoothing -> Higher settings will result in longer periods of time required for trend to change direction from bullish to bearish and vice versa.
EMA Lengths -> You can enter two EMA Lengths here, the second one must be longer than the first one. When the shorter one crosses under the longer one, this will be a bearish sign, and if it crosses above it will be a bullish sign for the indicator.
Labels -> Enables / Disables trend strength labels.
LOWESS (Locally Weighted Scatterplot Smoothing) [ChartPrime]LOWESS (Locally Weighted Scatterplot Smoothing)
⯁ OVERVIEW
The LOWESS (Locally Weighted Scatterplot Smoothing) [ ChartPrime ] indicator is an advanced technical analysis tool that combines LOWESS smoothing with a Modified Adaptive Gaussian Moving Average. This indicator provides traders with a sophisticated method for trend analysis, pivot point identification, and breakout detection.
◆ KEY FEATURES
LOWESS Smoothing: Implements Locally Weighted Scatterplot Smoothing for trend analysis.
Modified Adaptive Gaussian Moving Average: Incorporates a volatility-adapted Gaussian MA for enhanced trend detection.
Pivot Point Identification: Detects and visualizes significant pivot highs and lows.
Breakout Detection: Tracks and optionally displays the count of consecutive breakouts.
Gaussian Scatterplot: Offers a unique visualization of price movements using randomly colored points.
Customizable Parameters: Allows users to adjust calculation length, pivot detection, and visualization options.
◆ FUNCTIONALITY DETAILS
⬥ LOWESS Calculation:
Utilizes a weighted local regression to smooth price data.
Adapts to local trends, reducing noise while preserving important price movements.
⬥ Modified Adaptive Gaussian Moving Average:
Combines Gaussian weighting with volatility adaptation using ATR and standard deviation.
Smooths the Gaussian MA using LOWESS for enhanced trend visualization.
⬥ Pivot Point Detection and Visualization:
Identifies pivot highs and lows using customizable left and right bar counts.
Draws lines and labels to mark broke pivot points on the chart.
⬥ Breakout Tracking:
Monitors price crossovers of pivot lines to detect breakouts.
Optionally displays and updates the count of consecutive breakouts.
◆ USAGE
Trend Analysis: Use the color and direction of the smoothed Gaussian MA line to identify overall trend direction.
Breakout Trading: Monitor breakouts from pivot levels and their persistence using the breakout count feature.
Volatility Assessment: The spread of the Gaussian scatterplot can provide insights into market volatility.
⯁ USER INPUTS
Length: Sets the lookback period for LOWESS and Gaussian MA calculations (default: 30).
Pivot Length: Determines the number of bars to the left for pivot calculation (default: 5).
Count Breaks: Toggle to show the count of consecutive breakouts (default: false).
Gaussian Scatterplot: Toggle to display the Gaussian MA as a scatterplot (default: true).
⯁ TECHNICAL NOTES
Implements a custom LOWESS function for efficient local regression smoothing.
Uses a modified Gaussian MA calculation that adapts to market volatility.
Employs Pine Script's line and label drawing capabilities for clear pivot point visualization.
Utilizes random color generation for the Gaussian scatterplot to enhance visual distinction between different time periods.
The LOWESS (Locally Weighted Scatterplot Smoothing) indicator offers traders a sophisticated tool for trend analysis and breakout detection. By combining advanced smoothing techniques with pivot point analysis, it provides a comprehensive view of market dynamics. The indicator's adaptability to different market conditions and its customizable nature make it suitable for various trading styles and timeframes.
