Periodical Trend [BigBeluga]The Periodical Trend indicator is designed to provide a detailed analysis of market trends and volatility. It utilizes a combination of Moving Averages and volatility measures to plot trend line, highlight potential trend reversals, and indicate mean reversion opportunities. The indicator offers customizable display options, allowing traders to adjust for sensitivity, volatility bands, and price deviation visibility.
🔵 KEY FEATURES
● Periodical Trend Analysis
Uses (high + volatility) or (low - volatility) as the foundation for trend analysis with a set period.
// Condition to update the AVG array based on the selected mode
if mode == "Normal"
? bar_index == 122
: bar_index % period == 0
AVG.push(close) // Add the close price to the AVG array
// Update AVG array based on the period and price comparison
if bar_index % period == 0
if close > AVG.last() // If the current close is greater than the last stored value in AVG
AVG.push(low - vlt) // Add the low price minus volatility to the array
if close < AVG.last() // If the current close is lower than the last stored value in AVG
AVG.push(high + vlt) // Add the high price plus volatility to the array
Provides adjustable sensitivity modes ("Normal" and "Sensitive") for different market conditions.
Trend direction is visualized with dynamic color coding based on the relationship between the trend line and price.
● Volatility Bands
Displays upper and lower volatility bands derived from a moving average of price volatility (high-low).
The bands help identify potential breakout zones, overbought, or oversold conditions.
Users can toggle the visibility of the bands to suit their trading style.
● Mean Reversion Signals
Detects mean reversion opportunities when price deviates significantly from the trend line.
Includes both regular and strong mean reversion signals, marked directly on the chart.
Signals are based on oscillator crossovers, offering potential entry and exit points.
● Price Deviation Oscillator
Plots an oscillator that measures the deviation of price from the average trend line.
The oscillator is normalized using standard deviation, highlighting extreme price deviations.
Traders can choose to display the oscillator for in-depth analysis of price behavior relative to the trend.
● Dynamic Trend Coloring
The indicator colors the background on the direction of the trend.
Green indicates bullish trends, while blue indicates bearish trends.
The trend colors adapt dynamically to market conditions, providing clear visual cues for traders.
🔵 HOW TO USE
● Trend Analysis
The trend line represents the current market direction. A green trend line suggests a bullish trend, while a blue trend line indicates a bearish trend.
Use the trend line in conjunction with volatility bands to confirm potential breakouts or areas of consolidation.
● Volatility Bands
Volatility bands offer insight into potential overbought or oversold conditions.
Price exceeding these bands can signal a strong trend continuation or a possible reversal.
● Mean Reversion Strategies
Look for mean reversion signals (regular and strong) when price shows signs of reverting to the trend line after significant deviation.
Regular signals are represented by small dots, while strong signals are represented by larger circles.
These signals can be used as entry or exit points, depending on the market context.
● Price Deviation Analysis
The oscillator provides a detailed view of price deviations from the trend line.
A positive oscillator value indicates that the price is above the trend, while a negative value suggests it is below.
Use the oscillator to identify potential overbought or oversold conditions within the trend.
🔵 USER INPUTS
● Period
Defines the length of the period used for calculating the trend line. A higher period smooths out the trend, while a shorter period makes the trend line more sensitive to price changes.
● Mode
Choose between "Normal" and "Sensitive" modes for trend detection. The "Sensitive" mode responds more quickly to price changes, while the "Normal" mode offers smoother trend lines.
● Volatility Bands
Toggle the display of upper and lower volatility bands. These bands help identify potential areas of price exhaustion or continuation.
● Price Deviation
Toggle the display of the price deviation oscillator. This oscillator shows the deviation of the current price from the trend line and highlights extreme conditions.
● Mean Reversion Signals
Toggle the display of mean reversion signals. These signals highlight potential reversal points when the price deviates significantly from the trend.
● Strong Mean Reversion Signals
Toggle the display of stronger mean reversion signals, which occur at more extreme deviations from the trend.
● Width
Adjust the thickness of the trend line for better visibility on the chart.
🔵 CONCLUSION
The Periodical Trend indicator combines trend analysis, volatility bands, and mean reversion signals to provide traders with a comprehensive tool for market analysis. By offering customizable display options and dynamic trend coloring, this indicator can adapt to different trading styles and market conditions. Whether you are a trend follower or a mean reversion trader, the Periodical Trend indicator helps identify key market opportunities and potential reversals.
For optimal results, it is recommended to use this indicator alongside other technical analysis tools and within the context of a well-structured trading strategy.
Volatilite
Open-Close Price DifferenceInput time A (open time) and time B (closing time)
do not do anything with the year-month-date, it's there because I don't know how to fix it and it needs to be in such format.
the difference of price will be shown on the indicator window one candle after the closing time (opening at such time)
For research purpose only, no other intended purposes.
Position Sizer by VolatilityDescription :
The **Position Sizer by Volatility (PSV)** is an indicator that helps traders determine what percentage of their deposit a position will occupy, taking into account the current market volatility. PSV calculates the range of price movements over recent periods and shows how large this movement is compared to historical data. The lower the value, the lower the volatility, and the smaller the stop-loss required relative to the current price.
Explanation of PSV Parameters:
- ` len ` (Period Length):** This parameter sets the number of candles (bars) on the chart that will be used to calculate volatility. For example, if `len` is set to 250, the indicator will analyze price movements over the last 250 bars. The larger the value, the longer the period used for volatility assessment.
- ` percent ` (Percentile):** This parameter determines how strong price fluctuations you want to account for. For instance, if you set `percent` to 95, the indicator will focus on the 5% of instances where the price range was the largest over the specified period. This helps evaluate volatility during periods of sharp price movements, which may require a larger stop-loss. A higher percentile accounts for rarer but stronger movements, and vice versa.
Uptrick: Crypto Volatility Index** Crypto Volatility Index(VIX) **
Overview
The Crypto Volatility Index (VIX) is a specialized technical indicator designed to measure the volatility of cryptocurrency prices. Leveraging advanced statistical methods, including logarithmic returns and variance, the Crypto VIX offers a refined measure of market fluctuations. This approach makes it particularly useful for traders in the highly volatile cryptocurrency market, providing insights that traditional volatility indicators may not capture as effectively.
Purpose
The Crypto VIX aims to deliver a nuanced understanding of market volatility, tailored specifically for the cryptocurrency space. Unlike other volatility measures, the Crypto VIX employs sophisticated statistical methods to reflect the unique characteristics of cryptocurrency price movements. This makes it especially valuable for cryptocurrency traders, helping them navigate the inherent volatility of digital assets and manage their trading strategies and risk exposure more effectively.
Calculation
1. Indicator Declaration
The Crypto VIX is plotted in a separate pane below the main price chart for clarity:
indicator("Crypto Volatility Index (VIX)", overlay=false, shorttitle="Crypto VIX")
2. Input Parameters
Users can adjust the period length for volatility calculations:
length = input.int(14, title="Period Length")
3. Calculating Daily Returns
The daily returns are calculated using logarithmic returns:
returns = math.log(close / close )
- **Logarithmic Returns:** These returns provide a normalized measure of price changes, making it easier to compare returns over different periods and across different assets.
4. Average Return Calculation
The average return over the specified period is computed with a Simple Moving Average (SMA):
avg_return = ta.sma(returns, length)
5. Variance Calculation
Variance measures the dispersion of returns from the average:
variance = ta.sma(math.pow(returns - avg_return, 2), length)
- Variance : This tells us how much the returns deviate from the average, giving insight into how volatile the market is.
6. Standard Deviation (Volatility) Calculation
Volatility is derived as the square root of the variance:
volatility = math.sqrt(variance)
- Standard Deviation : This provides a direct measure of volatility, showing how much the price typically deviates from the mean return.
7. Plotting the Indicator
The volatility and average return are plotted:
plot(volatility, color=#21f34b, title="Volatility Index")
plot(avg_return, color=color.new(color.red, 80), title="Average Return", style=plot.style_columns)
Practical Examples
1. High Volatility Scenario
** Example :** During significant market events, such as major regulatory announcements or geopolitical developments, the Crypto VIX tends to rise sharply. For instance, if the Crypto VIX moves from a baseline level of 0.2 to 0.8, it indicates heightened market volatility. Traders might see this as a signal to adjust their strategies, such as reducing position sizes or setting tighter stop-loss levels to manage increased risk.
2. Low Volatility Scenario
** Example :** In a stable market, where prices fluctuate within a narrow range, the Crypto VIX will show lower values. For example, a drop in the Crypto VIX from 0.4 to 0.2 suggests lower volatility and stable market conditions. Traders might use this information to consider longer-term trades or take advantage of potential consolidation patterns.
Best Practices
1. Combining Indicators
- Moving Averages : Use the Crypto VIX with moving averages to identify trends and potential reversal points.
- Relative Strength Index (RSI): Combine with RSI to assess overbought or oversold conditions for better entry and exit points.
- Bollinger Bands : Pair with Bollinger Bands to understand volatility relative to price movements and spot potential breakouts.
2. Adjusting Parameters
- Short-Term Trading : Use a shorter period length (e.g., 7 days) to capture rapid volatility changes suitable for day trading.
- Long-Term Investing : A longer period length (e.g., 30 days) provides a smoother view of volatility, helping long-term investors navigate market trends.
Backtesting and Performance Insights
While specific backtesting data for the Crypto VIX is not yet available, the indicator is built on established principles of volatility measurement, such as logarithmic returns and standard deviation. These methods are well-regarded in financial analysis for accurately reflecting market volatility. The Crypto VIX is designed to offer insights similar to other effective volatility indicators, tailored specifically for the cryptocurrency markets. Its adaptation to digital assets and ability to provide precise volatility measures underscore its practical value for traders.
Originality and Uniqueness
The Crypto Volatility Index (VIX) distinguishes itself through its specialized approach to measuring volatility in the cryptocurrency markets. While the concepts of logarithmic returns and standard deviation are not new, the Crypto VIX integrates these methods into a unique framework designed specifically for digital assets.
- Tailored Methodology : Unlike generic volatility indicators, the Crypto VIX is adapted to the unique characteristics of cryptocurrencies, providing a more precise measure of price fluctuations that reflects the inherent volatility of digital markets.
- Enhanced Insights : By focusing on cryptocurrency-specific price behavior and incorporating advanced statistical techniques, the Crypto VIX offers insights that traditional volatility indicators might miss. This makes it a valuable tool for traders navigating the complex and fast-moving cryptocurrency landscape.
- Innovative Application : The Crypto VIX combines established financial metrics in a novel way, offering a fresh perspective on market volatility and contributing to more effective risk management and trading strategies in the cryptocurrency space.
Summary
The Crypto Volatility Index (VIX) is a specialized tool for measuring cryptocurrency market volatility. By utilizing advanced statistical methods such as logarithmic returns and standard deviation, it provides a detailed measure of price fluctuations. While not entirely original in its use of these methods, the Crypto VIX stands out through its tailored application to the unique characteristics of the cryptocurrency market. Traders can use the Crypto VIX to gauge market risk, adjust their strategies, and make informed trading decisions, supported by practical examples, best practices, and clear visual aids.
Dynamic Rate of Change OscillatorDynamic Rate of Change (RoC) Oscillator with Color-Coded Histogram
Detailed Description for Publication
The Dynamic Rate of Change (RoC) Oscillator with Color-Coded Histogram is a sophisticated technical analysis tool designed to enhance your understanding of market momentum. Created using Pine Script v5 on the TradingView platform, this indicator integrates multiple Rate of Change (RoC) calculations into a unified momentum oscillator. The resulting data is displayed as a color-coded histogram, providing a clear visual representation of momentum changes.
Key Features and Functionality
Multi-Length RoC Calculation:
Short-term RoC: Calculated over a user-defined period (shortRoCLength), this captures variations in price momentum over a shorter duration, offering insights into the immediate price action.
Long-term RoC: This uses a longer period (longRoCLength) to provide a broader view of momentum, helping to smooth out short-term fluctuations and highlight more established trends.
Mid-term RoC: A weighted average of the short-term and long-term RoCs, the mid-term RoC (midRoCWeight) allows you to balance sensitivity and stability in the oscillator's behavior.
Weighted RoC Calculation:
The indicator calculates a single weighted average RoC by integrating short-term, long-term, and mid-term RoCs. The weighting factor can be adjusted to prioritize different market dynamics according to the trader’s strategy. This flexible approach enables the oscillator to remain applicable across diverse market conditions.
Oscillator Calculation and Smoothing:
The oscillator value is computed by subtracting a 14-period Weighted Moving Average (WMA) from the weighted RoC, which helps to normalize the oscillator, making it more responsive to changes in momentum.
The oscillator is then smoothed using a Simple Moving Average (SMA) over a user-defined period (smoothLength). This process reduces market noise, making the oscillator's signals clearer and easier to interpret.
Color-Coded Histogram:
The smoothed oscillator is displayed as a histogram, which is color-coded to reflect bullish or bearish momentum. You can customize the colors to match your charting style, with green typically representing upward momentum and red representing downward momentum.
The color-coded histogram allows for quick visual identification of momentum changes on the chart, aiding in your market analysis.
Zero-Line Reference:
A horizontal line at the zero level is plotted as a reference point. This zero-line helps in identifying when the histogram shifts from positive to negative or vice versa, which can be useful in understanding momentum shifts.
The zero-line offers a straightforward visual cue, making it easier to interpret the oscillator's signals in relation to market movements.
Customization and Versatility
The Dynamic RoC Oscillator with Histogram is designed with flexibility in mind, making it suitable for a wide range of trading styles, from short-term trading to longer-term analysis. Users have the ability to fine-tune the indicator’s input parameters to align with their specific needs:
Adjustable RoC Periods: Customize the short-term and long-term RoC lengths to match the timeframes you focus on.
Weighted Sensitivity: Adjust the mid-term RoC weight to emphasize different aspects of momentum according to your analysis approach.
Smoothing Options: Modify the smoothing moving average length to control the sensitivity of the oscillator, allowing you to balance responsiveness with noise reduction.
Use Cases
Momentum Analysis: Gain a clearer understanding of momentum changes within the market, which can aid in the evaluation of market trends.
Trend Analysis: The oscillator can help in assessing trends by highlighting when momentum is increasing or decreasing.
Chart Visualization: The color-coded histogram provides a visually intuitive method for monitoring momentum, helping you to more easily interpret market behavior.
Conclusion
The Dynamic Rate of Change (RoC) Oscillator with Color-Coded Histogram is a versatile and powerful tool for traders who seek a deeper analysis of market momentum. With its dynamic calculation methods and high degree of customization, this indicator can be tailored to suit a variety of trading strategies. By integrating it into your TradingView charts, you can enhance your technical analysis capabilities, gaining valuable insights into market momentum.
This indicator is easy to use and highly customizable, making it a valuable addition to any trader’s toolkit. Add it to your charts on the TradingView platform and start exploring its potential to enrich your market analysis.
Volume ReversalsThe "Volume Reversals" indicator is a trading tool designed to identify potential buy and sell signals based on volume patterns.
Features
Filter Signals : Traders can enable or disable additional filtering of signals, which refines the conditions under which buy and sell labels are displayed.
Buy and Sell Labels: The indicator dynamically places labels on the chart to signify buy ("▲+") and sell ("▼+") opportunities. Buy labels appear at low points of bars with a green upward-pointing arrow, while sell labels appear at high points with a red downward-pointing arrow.
Customizable Alerts: Users can set alerts for buy and sell signals, receiving notifications when conditions match predefined patterns.
Logic Explained
Volume Comparison: The script examines a sequence of the last five volume bars to detect increasing or decreasing trends.
Price Action Analysis: Each volume bar is paired with a corresponding price action (bullish or bearish) from the same period.
Signal Conditions: A signal is generated under two scenarios:
Normal Conditions: Sequential increase/decrease in volume over three bars accompanied by bearish/bullish price action, followed by a dip in volume with a bullish/bearish bar.
Filtered Conditions (if filter is active): Requires all last four bars to be bearish/bullish, the most recent bar's volume to be less than the immediate previous, and then exceeds the volume two bars prior, closing bullish/bearish.
This indicator is suited for various assets and timeframes, especially in markets where volume plays a significant role in price dynamics.
Swing Points [Syafiq.Jr]The Swing Points indicator by Syafiq.Jr is designed to identify and visualize pivotal market structures such as Higher Highs (HH), Lower Highs (LH), Lower Lows (LL), and Higher Lows (HL) directly on the chart. This tool is essential for traders who utilize swing trading strategies and rely on understanding market trends through key price levels.
Key Features:
Pivot Strength: Configurable pivot strength to customize the sensitivity of swing points.
Customizable Visuals: Users can adjust the colors and visibility of the zones for each swing point category (HH, LH, LL, HL) based on their preferences.
Multiple Timeframe Support: The indicator offers the flexibility to display swing points from the current timeframe or higher timeframes such as 5-minute, 15-minute, 30-minute, 1-hour, 4-hour, and daily intervals.
Dynamic Extension Lines: Automatically extend key levels across the chart for ongoing reference.
Configurable Font Sizes: Adjust the font size for labels marking the swing points to ensure clear visualization.
This indicator is ideal for traders who need to spot and track critical swing points across different timeframes, enabling better decision-making in trending and ranging markets.
Uptrick: Logarithmic Crypto Bands
Description :
Introduction
The `Uptrick: Logarithmic Crypto Bands` indicator introduces an innovative approach to technical analysis tailored specifically for the cryptocurrency markets. By leveraging logarithmic transformations combined with dynamic exponential bands, this indicator offers a sophisticated method for identifying critical support and resistance levels, assessing market trends, and evaluating volatility. Its unique approach stands out from traditional indicators by addressing the specific challenges of high volatility and erratic price movements inherent in cryptocurrency trading.
Originality and Usefulness
** 1. Unique Logarithmic Transformation: **
- Innovation : Unlike traditional indicators that often use raw price data, the Uptrick: Logarithmic Crypto Bands applies a logarithmic transformation to the closing prices: logPrice = math.log(close). This approach is original because it reduces the impact of extreme price fluctuations, providing a smoother and more stable price series. This transformation addresses a common issue in cryptocurrency markets where large price swings can obscure true market trends.
- Advantage : The logarithmic transformation compresses the price range, which allows traders to better identify long-term trends and reduce the noise caused by outlier price movements. This results in a more reliable basis for analysis and enhances the ability to detect meaningful market patterns.
**2. Dynamic Exponential Bands :**
- Innovation : The indicator employs exponential calculations to derive dynamic support and resistance levels based on a central base line : baseLine * math.pow(multiplier, n). Unlike static bands that remain fixed regardless of market conditions, these bands adjust dynamically according to market volatility.
- Advantage : The dynamic nature of the bands provides a more responsive and adaptive tool for traders. As market volatility changes, the bands widen or narrow accordingly, offering a more accurate reflection of potential support and resistance levels. This adaptability improves the tool's effectiveness in varying market conditions compared to static or traditional bands.
Detailed Description and Substantiation
**1. Logarithmic Price Calculation :**
- Code : ` logPrice = math.log(close)
- Description : This calculation converts the closing price into its logarithmic value. By compressing the price range, it minimizes the distortion caused by extreme price movements, which can be particularly pronounced in the volatile cryptocurrency markets.
- Purpose : To provide a stabilized price series that facilitates more accurate trend analysis and reduces the influence of erratic price fluctuations.
**2. Moving Averages of Logarithmic Prices :**
- ** Long-Term Moving Average :**
- Code : maLongLogPrice = ta.sma(logPrice, longLength)
longLength = 2000
- ** Description : A simple moving average of the logarithmic price over a long period. This average helps filter out short-term noise and provides insight into the long-term market trend.
- Purpose : To offer a perspective on the overall market direction, making it easier to identify enduring trends and distinguish them from short-term price movements.
- Short-Term Moving Average :
- Code : maShortLogPrice = ta.sma(logPrice, shortLength) shortLength = 900
- Description : A simple moving average of the logarithmic price over a shorter period. This component captures more immediate price trends and potential reversal points.
- Purpose : To detect short-term trends and changes in market direction, allowing traders to make timely trading decisions based on recent price action.
**3. Base Line Calculation :**
- Code : baseLine = math.exp(maShortLogPrice)
- Description : Converts the short-term moving average of the logarithmic price back to the original price scale. This base line serves as the central reference point for calculating the surrounding bands.
- Purpose : To establish a benchmark level from which the exponential bands are calculated, providing a central reference for assessing potential support and resistance levels.
**4. Band Calculation and Plotting :**
- ** Code :**
- Band 1: plot(baseLine * math.pow(multiplier, 1), color=color.new(color.yellow, 20), linewidth=1, title="Band 1")
- Band 2: plot(baseLine * math.pow(multiplier, 2), color=color.new(color.yellow, 20), linewidth=1, title="Band 2")
- Band 3: plot(baseLine * math.pow(multiplier, 3), color=color.new(color.yellow, 20), linewidth=1, title="Band 3")
- Band 4: plot(baseLine * math.pow(multiplier, 4), color=color.new(color.yellow, 20), linewidth=1, title="Band 4")
- Band 5: plot(baseLine * math.pow(multiplier, 5), color=color.new(color.yellow, 10), linewidth=1, title="Band 5")
- Band 6: plot(baseLine * math.pow(multiplier, 6), color=color.new(color.yellow, 0), linewidth=1, title="Band 6")
- * Multiplier : Set at 1.3, adjusts the spacing between bands to accommodate varying levels of market volatility.
- Description : Bands are plotted at exponential intervals from the base line. Each band represents a potential support or resistance level, with the spacing between them increasing exponentially. The color opacity of each band indicates its level of significance, with closer bands being more relevant for immediate trading decisions.
** How to Use the Indicator :**
**1. Identifying Support and Resistance Levels :**
- Support Levels : The lower bands, closer to the base line, can act as potential support levels. When the price approaches these bands from above, they may indicate areas where the price could stabilize or reverse direction.
- Resistance Levels : The upper bands, further from the base line, serve as resistance levels. When the price nears these bands from below, they can act as barriers to price movement, potentially leading to reversals or stalls.
**2. Confirming Trends :**
- Uptrend Confirmation : When the price consistently remains above the base line and moves towards higher bands, it signals a strong bullish trend. This confirmation helps traders capitalize on upward price movements.
- Downtrend Confirmation : When the price stays below the base line and approaches lower bands, it indicates a bearish trend. This confirmation assists traders in acting on downward price movements.
3. Analyzing Volatility :
- Wide Bands : Wider spacing between bands reflects higher market volatility. This indicates a more turbulent trading environment, where price movements are less predictable. Traders may need to adjust their strategies to handle increased volatility.
- Narrow Bands : Narrower bands suggest lower volatility and a more stable market environment. This can result in more predictable price movements and clearer trading signals.
**4. Entry and Exit Points :**
- Entry Points : Consider buying when the price bounces off the base line or a band, which could signal support in an uptrend.
- Exit Points : Evaluate selling or taking profits when the price nears upper bands or shows signs of reversal at these levels. This approach helps in locking in gains or minimizing losses during a downtrend.
**Chart Example:**
Here you can see how the price reacted getting closer to this level. All green circles show a bounce-off. So just from looking at the chart we can see a potential bounce again pretty soon.
** Disclosure :**
- ** Performance Claims :** The `Uptrick: Logarithmic Crypto Bands` indicator is designed to assist traders in analyzing price levels and trends. It is important to understand that this tool provides historical data analysis and does not guarantee future performance. The features and benefits described are based on historical market behavior and should not be seen as a prediction of future results. Traders should use this indicator as part of a broader trading strategy and consider other factors before making trading decisions.
Market Sessions - by Alexander RottasMarket Sessions - Alexander Rottas
This TradingView indicator displays market sessions for USA, EUROPE, and ASIA on your chart. It provides a clear and intuitive way to identify the active market periods, making it easier to plan your trades.
Features:
Session Display: Optionally show market sessions for USA, EUROPE, and ASIA.
Customizable Timings: Set start and end times in UTC for each market session.
Visual Indicators: Color-coded squares indicate active sessions and their combinations:
USA Session: Blue
EUROPE Session: Purple
ASIA Session: Dull Orange
Combined Sessions: Lighter shades to show overlapping sessions
Session Labels: Dynamic labels at the start of each session to easily identify session beginnings on weekdays.
User-Friendly Design: This indicator is designed to be non-intrusive and easy to use, with a simple setup and clear visual cues. Unlike other complex tools, it integrates seamlessly into your chart without overwhelming your view, making it an ideal choice for traders seeking a straightforward way to track market sessions.
DISCLAIMER: This script is provided for educational purposes only. It cannot be used for commercial purposes or plagiarized. All rights reserved by the author. Unauthorized use or distribution of this script is prohibited. For more details, please contact the author directly.
Volatility with Power VariationVolatility Analysis using Power Variation
The "Volatility with Power Variation" indicator is designed to measure market volatility. It focuses on providing traders with a clear understanding of how much the market is moving and how this movement changes over time.. This indicator helps in identifying potential periods of market expansion or contraction, based on volatility.
What the indicator does:
This indicator analyzes volatility which refers to the degree of variation in the returns of a financial instrument over time. It's an important measure to understand how much the price and returns of a asset fluctuates. High volatility means large price swings, meanwhile low volatility indicates smaller and consolidating movements. Realized (Historical) Volatility refers to volatility based on past price data.
Power Variation
Power Variation is an extension of the traditional methods used to calculate realized volatility. Instead of simply summing up squared returns (as done in calculating variance), Power Variation raises the magnitude of returns to a power p . This allows the indicator to capture different types of market behavior depending on the chosen value of p .
When P = 2, the Power variation behaves like a traditional variance measure. Lower values of p (e.g., p=1) make the indicator more sensitive to smaller price changes, meanwhile higher values make it more responsive to large jumps, but smaller price moves wont affect the measure that much or won't most likely.
Bipower Variation
Bipower variation is another method used to analyze the changes in price. It specifically isolates the continuous part of price movements from the jumps, which can help by understanding whether volatility is coming from regular market activity or from sharp, sudden moves.
How to Use the Indicator.
Understand Realized and Historical Volatility. Volatility after periods of low volatility you can eventually expect a expansion or an increase in volatility. Conversely, after periods of high volatility, the market often contracts and volatility decreases. If the variation plot is really low and you start seeing it increasing, shown by the standard deviation channels and moving average and you see it trending and increasing then that means you can expect for volatility to increase which means more price moves and expansions. Also if the scaling seems messed up, then use the logarithmic chart scale.
Wick Strength [MS]Overview
The Wick Strength indicator is a unique script designed to measure and visualize the relative strength of candlestick wicks over time. By analyzing the relationship between upper and lower wicks, this indicator provides insights into potential market dynamics and price action patterns.
How It Works
The Wick Strength indicator calculates the "strength" of candlestick wicks by comparing the upward and downward movements within each candle's range. This calculation results in a dynamic line plot that represents the evolving wick strength across your chosen timeframe.
Strength is not range-bound, allowing the score to reach extremes and be compared relatively across time.
Interpretation
Positive values indicate stronger upper wicks (potential bearish pressure)
Negative values suggest stronger lower wicks (potential bullish pressure)
Extreme readings might signal overextended moves or potential reversals
Key Features
Measures relative wick strength candle by candle
Smooths the values by summation based on user preference
Adaptable to all timeframes and markets
Potential Applications
While extensive backtesting has not been performed, the Wick Strength indicator may offer valuable insights for:
Identifying potential divergences between price action and wick strength
Spotting changes in market sentiment or volatility
Complementing other technical analysis tools for a more comprehensive trading approach
Developing unique trading strategies based on wick behavior
Uptrick: Price Exaggerator
## Uptrick: Price Exaggerator
** Purpose and Overview **:
The "Uptrick: Price Exaggerator" is an innovative Pine Script™ indicator that provides traders with a unique way to visualize potential price extremes. Unlike traditional indicators that focus on historical price data or statistical patterns, this script applies dynamic multipliers to the asset’s closing price to project exaggerated price levels. This approach offers fresh insights into potential market extremes and can be particularly useful for identifying possible overbought or oversold conditions.
** Functionality **:
- ** Dynamic Price Exaggeration **: This script applies a range of multipliers to the closing price to generate several projected price levels. These levels are plotted as lines on the chart, helping traders visualize potential future price extremes beyond typical market ranges.
- ** Highly Customizable **: Users can adjust multipliers, select different source prices (like open, high, low), and choose colors to match their trading strategies and preferences.
- ** Real-Time Updates **: The plotted levels update in real-time, reflecting the latest market conditions and providing an ongoing perspective on potential price extremes.
** Detailed Inputs and Configuration **:
1. ** Multiplier Settings **:
- ** Purpose **: Adjusts the degree of price exaggeration to visualize potential extreme price levels.
- ** Inputs **:
- **Multiplier 1**: Default 0.9 (90% of the source price)
- **Multiplier 2**: Default 0.8 (80% of the source price)
- **Multiplier 3**: Default 1.1 (110% of the source price)
- **Multiplier 4**: Default 1.2 (120% of the source price)
- **Multiplier 5**: Default 1.5 (150% of the source price)
- ** Impact **: Higher multipliers show more distant potential levels, indicating possible resistance or support at extreme levels. Lower multipliers highlight nearer levels, suggesting smaller potential movements.
2. ** Source Price Selection **:
- ** Purpose **: Determines the base data for calculating exaggerated price levels.
- **Inputs**:
- **Source 1**: Default is closing price (can be customized)
- **Source 2**: Default is closing price
- **Source 3**: Default is closing price
- **Source 4**: Default is closing price
- **Source 5**: Default is closing price
- ** Customization **: Users can select various sources (e.g., open, high, low) for each multiplier, tailoring the tool to their analytical needs.
3. ** Color Customization **:
- ** Purpose **: Enhances visual clarity by distinguishing between different exaggerated levels.
- **Inputs**:
- **Color 1**: Default red
- **Color 2**: Default blue
- **Color 3**: Default green
- **Color 4**: Default orange
- **Color 5**: Default purple
- ** Customization **: Colors can be adjusted to fit user preferences and chart color schemes.
4. ** Plotting the Lines **:
- ** Purpose **: Provides a visual representation of potential future price extremes on the chart.
- ** Implementation **: Lines are plotted based on the selected multipliers and source prices, offering a clear view of potential price scenarios.
** Using the Script for Market Analysis **:
1. ** Identifying Overbought Conditions **:
- ** Method **: Observe exaggerated price levels above the current market price. Approaching or exceeding higher multiplier levels may indicate overbought conditions.
- ** Analysis **: These levels can act as potential resistance zones where price reversals or consolidations might occur.
2. ** Spotting Oversold Conditions **:
- ** Method **: Observe exaggerated price levels below the current market price. If the price approaches or falls below lower multiplier levels, it may suggest oversold conditions.
- ** Analysis **: These levels might serve as support zones where price bounces or stabilization could happen.
3. ** Detecting Smaller Movements **:
- **Detailed Examination**: Lower multiplier levels can highlight minor support and resistance levels, useful for traders focusing on smaller price fluctuations.
- ** Fine-Tuning **: Adjust multipliers to zoom in on specific price ranges and better detect small market movements.
** How to Use the Script **:
1. ** Add the Script to Your Chart **:
- Scroll to the bottom of this description and right where there is the source code, click ' Add to Favourites ' - Now you can go to a chart, go to your ' favorites ', and you will find it there.
2. ** Configure Inputs **:
- Click the gear icon next to the script in the indicators panel to open settings.
- Adjust multipliers, source prices, and colors according to your analysis needs.
3. ** Interpret the Levels **:
- Analyze the plotted levels to assess potential overbought or oversold conditions and identify possible price extremes.
- Combine insights with other indicators and patterns for more informed trading decisions.
** Conceptual Framework **:
The "Uptrick: Price Exaggerator" offers a novel approach to market analysis by exaggerating price levels through dynamic multipliers. This unique method extends beyond conventional indicators, providing traders with a different perspective on potential price movements and market extremes. By customizing inputs and visualizing potential price scenarios, this script enhances market analysis and supports diverse trading strategies.
** Originality and Uniqueness **:
This script stands out by applying dynamic multipliers to the source price, offering a fresh way to anticipate potential market extremes. Unlike standard indicators, which often rely on historical data or statistical methods, the "Uptrick: Price Exaggerator" provides a distinctive view of future price levels. Its customizable features and real-time updates offer traders a flexible tool that can adapt to various market conditions and personal trading styles.
Trailing Stop ProTrailing Stop Pro is a sophisticated TradingView indicator designed to enhance your trading strategy by dynamically managing trailing stops based on market volatility. This tool leverages the Average True Range (ATR) to adjust stop levels, providing traders with a robust mechanism to protect profits and minimize losses.
Key Features:
Dynamic Trailing Stops: Automatically adjusts stop levels using ATR, allowing for responsive and adaptive risk management.
Customizable Inputs: Tailor the indicator to your trading style with adjustable parameters such as ATR Length, ATR Multiplier, and Source Vector.
Visual Clarity: Distinct color settings for long and short stops, with adjustable line thickness and transparency, ensuring clear visualization on your charts.
Professional Grade: The "Pro" designation signifies advanced features suitable for both novice and experienced traders seeking reliable and efficient stop management.
How It Works:
To set up the indicator, begin by defining the Chrono Point, which specifies the exact time you want the trailing stop mechanism to activate. This allows for precise control over when your stops begin to trail. Next, set the Credit Unit as the initial entry price for your trade, serving as the baseline from which the trailing stops will adjust.
The indicator uses ATR-based adjustments to determine stop levels. Customize the sensitivity of the trailing stop by adjusting the ATR Length (default is 14) and ATR Multiplier (default is 0.5). A longer ATR length smooths out volatility, while a higher multiplier increases the distance of the stop from the price.
Select your Source Vector from "High/Low," "Close," or "Open" prices as the basis for stop calculation. This flexibility allows you to align the indicator with your preferred trading strategy. The indicator plots trailing stops directly on the chart, with color-coded lines indicating long (teal) and short (red) positions. You can adjust the line thickness and transparency for optimal visibility.
The Mission Status feature automatically detects whether the trade is long or short and adjusts the trailing stop accordingly. If the price hits the trailing stop, the trade is considered exited, and the indicator calculates the profit or loss percentage.
Benefits:
Risk Management: Protect your trades from adverse market movements while locking in profits as prices move favorably.
Automation: Reduce manual intervention with automatic stop adjustments, allowing you to focus on strategic decision-making.
User-Friendly Interface: Intuitive settings and clear visual cues make it easy to integrate into your existing trading workflow.
Conclusion:
Trailing Stop Pro is an essential tool for traders looking to enhance their risk management strategies with precision and ease. By automating the trailing stop process and providing clear visual feedback, this indicator empowers you to navigate the markets with confidence. Whether you're a seasoned trader or just starting, Trailing Stop Pro offers the functionality and flexibility needed to optimize your trading performance.
The Trailing Stop Pro indicator is a tool designed to assist traders in managing risk and optimizing their trading strategies. However, it should not be considered as financial advice or a guarantee of profitability. Trading involves significant risk, and it is possible to lose more than your initial investment. Users are encouraged to thoroughly test the indicator in a demo environment and consider their own financial situation and risk tolerance before using it in live trading. Past performance is not indicative of future results, and users should seek advice from a qualified financial advisor if needed.
Price and OI ChangePrice and OI Change
Description:
The "Price and OI Change" indicator provides insights into market dynamics by analyzing the price and open interest (OI) changes over a 7-day period. This indicator is designed for use with both spot and futures markets, including cryptocurrencies.
Key Features:
Price and OI Change Calculation: Computes the 7-day change in price and open interest to help identify market trends and shifts.
Market Conditions Visualization: Differentiates market conditions by changing the background color based on:
Leverage-Driven Market: Blue background indicates increasing prices and OI, suggesting a bullish trend driven by leverage.
Spot-Driven Market: Green background shows increasing prices but decreasing OI, indicating a bullish trend driven by spot market activity.
Leverage Sell-Off: Orange background reveals decreasing prices with increasing OI, signaling a potential liquidation phase.
Deleveraging Sell-Off: Red background reflects decreasing prices and OI, indicating a bearish market with reduced leverage.
Top 3 BTC Futures Average OI: Displays the average open interest for the top 3 BTC futures contracts from major exchanges (Binance, OKX, Bybit). This helps gauge overall market sentiment and liquidity.
Visualization Tools: Includes optional plotting of open interest data and average OI for better visualization of market conditions.
Usage:
Traders and Analysts: Use the background color changes and average OI to make informed decisions about market entry and exit points.
Futures Traders: Track OI changes in major BTC futures to assess market strength and potential liquidity issues.
Curved Price Channels (Zeiierman)█ Overview
The Curved Price Channels (Zeiierman) is designed to plot dynamic channels around price movements, much like the traditional Donchian Channels, but with a key difference: the channels are curved instead of straight. This curvature allows the channels to adapt more fluidly to price action, providing a smoother representation of the highest high and lowest low levels.
Just like Donchian Channels, the Curved Price Channels help identify potential breakout points and areas of trend reversal. However, the curvature offers a more refined approach to visualizing price boundaries, making it potentially more effective in capturing price trends and reversals in markets that exhibit significant volatility or price swings.
The included trend strength calculation further enhances the indicator by offering insight into the strength of the current trend.
█ How It Works
The Curved Price Channels are calculated based on the asset's average true range (ATR), scaled by the chosen length and multiplier settings. This adaptive size allows the channels to expand and contract based on recent market volatility. The central trendline is calculated as the average of the upper and lower curved bands, providing a smoothed representation of the overall price trend.
Key Calculations:
Adaptive Size: The ATR is used to dynamically adjust the width of the channels, making them responsive to changes in market volatility.
Upper and Lower Bands: The upper band is calculated by taking the maximum close value and adjusting it downward by a factor proportional to the ATR and the multiplier. Similarly, the lower band is calculated by adjusting the minimum close value upward.
Trendline: The trendline is the average of the upper and lower bands, representing the central tendency of the price action.
Trend Strength
The Trend Strength feature in the Curved Price Channels is a powerful feature designed to help traders gauge the strength of the current trend. It calculates the strength of a trend by analyzing the relationship between the price's position within the curved channels and the overall range of the channels themselves.
Range Calculation:
The indicator first determines the distance between the upper and lower curved channels, known as the range. This range represents the overall volatility of the price within the given period.
Range = Upper Band - Lower Band
Relative Position:
The next step involves calculating the relative position of the closing price within this range. This value indicates where the current price sits in relation to the overall range.
RelativePosition = (Close - Trendline) / Range
Normalization:
To assess the trend strength over time, the current range is normalized against the maximum and minimum ranges observed over a specified look-back period.
NormalizedRange = (Range - Min Range) / (Max Range - Min Range)
Trend Strength Calculation:
The final Trend Strength is calculated by multiplying the relative position by the normalized range and then scaling it to a percentage.
TrendStrength = Relative Position * Normalized Range * 100
This approach ensures that the Trend Strength not only reflects the direction of the trend but also its intensity, providing a more comprehensive view of market conditions.
█ Comparison with Donchian Channels
Curved Price Channels offer several advantages over Donchian Channels, particularly in their ability to adapt to changing market conditions.
⚪ Adaptability vs. Fixed Structure
Donchian Channels: Use a fixed period to plot straight lines based on the highest high and lowest low. This can be limiting because the channels do not adjust to volatility; they remain the same width regardless of how much or how little the price is moving.
Curved Price Channels: Adapt dynamically to market conditions using the Average True Range (ATR) as a measure of volatility. The channels expand and contract based on recent price movements, providing a more accurate reflection of the market's current state. This adaptability allows traders to capture both large trends and smaller fluctuations more effectively.
⚪ Sensitivity to Market Movements
Donchian Channels: Are less sensitive to recent price action because they rely on a fixed look-back period. This can result in late signals during fast-moving markets, as the channels may not adjust quickly enough to capture new trends.
Curved Price Channels: Respond more quickly to changes in market volatility, making them more sensitive to recent price action. The multiplier setting further allows traders to adjust the channel's sensitivity, making it possible to capture smaller price movements during periods of low volatility or filter out noise during high volatility.
⚪ Enhanced Trend Strength Analysis
Donchian Channels: Do not provide direct insight into the strength of a trend. Traders must rely on additional indicators or their judgment to gauge whether a trend is strong or weak.
Curved Price Channels: Includes a built-in trend strength calculation that takes into account the distance between the upper and lower channels relative to the trendline. A broader range between the channels typically indicates a stronger trend, while a narrower range suggests a weaker trend. This feature helps traders not only identify the direction of the trend but also assess its potential longevity and strength.
⚪ Dynamic Support and Resistance
Donchian Channels: Offer static support and resistance levels that may not accurately reflect changing market dynamics. These levels can quickly become outdated in volatile markets.
Curved Price Channels: Offer dynamic support and resistance levels that adjust in real-time, providing more relevant and actionable trading signals. As the channels curve to reflect price movements, they can help identify areas where the price is likely to encounter support or resistance, making them more useful in volatile or trending markets.
█ How to Use
Traders can use the Curved Price Channels in similar ways to Donchian Channels but with the added benefits of the adaptive, curved structure:
Breakout Identification:
Just like Donchian Channels, when the price breaks above the upper curved band, it may signal the start of a bullish trend, while a break below the lower curved band could indicate a bearish trend. The curved nature of the channels helps in capturing these breakouts more precisely by adjusting to recent volatility.
Volatility:
The width of the price channels in the Curved Price Channels indicator serves as a clear indicator of current market volatility. A wider channel indicates that the market is experiencing higher volatility, as prices are fluctuating more dramatically within the period. Conversely, a narrower channel suggests that the market is in a lower volatility state, with price movements being more subdued.
Typically, higher volatility is observed during negative trends, where market uncertainty or fear drives larger price swings. In contrast, lower volatility is often associated with positive trends, where prices tend to move more steadily and predictably. The adaptive nature of the Curved Price Channels reflects these volatility conditions in real time, allowing traders to assess the market environment quickly and adjust their strategies accordingly.
Support and Resistance:
The trend line act as dynamic support and resistance levels. Due to it's adaptive nature, this level is more reflective of the current market environment than the fixed level of Donchian Channels.
Trend Direction and Strength:
The trend direction and strength are highlighted by the trendline and the directional candle within the Curved Price Channels indicator. If the price is above the trendline, it indicates a positive trend, while a price below the trendline signals a negative trend. This directional bias is visually represented by the color of the directional candle, making it easy for traders to quickly identify the current market trend.
In addition to the trendline, the indicator also displays Max and Min values. These represent the highest and lowest trend strength values within the lookback period, providing a reference point for understanding the current trend strength relative to historical levels.
Max Value: Indicates the highest recorded trend strength during the lookback period. If the Max value is greater than the Min value, it suggests that the market has generally experienced more positive (bullish) conditions during this time frame.
Min Value: Represents the lowest recorded trend strength within the same period. If the Min value is greater than the Max value, it indicates that the market has been predominantly negative (bearish) over the lookback period.
By assessing these Max and Min values, traders gain an immediate understanding of the underlying trend. If the current trend strength is close to the Max value, it indicates a strong bullish trend. Conversely, if the trend strength is near the Min value, it suggests a strong bearish trend.
█ Settings
Trend Length: Defines the number of bars used to calculate the core trendline and adaptive size. A length of 200 will create a smooth, long-term trendline that reacts slowly to price changes, while a length of 20 will create a more responsive trendline that tracks short-term movements.
Multiplier: Adjusts the width of the curved price channels. A higher value tightens the channels, making them more sensitive to price movements, while a lower value widens the channels. A multiplier of 10 will create tighter channels that are more sensitive to minor price fluctuations, which is useful in low-volatility markets. A multiplier of 2 will create wider channels that capture larger trends and are better suited for high-volatility markets.
Trend Strength Length: Defines the period over which the maximum and minimum ranges are calculated to normalize the trend strength. A length of 200 will smooth out the trend strength readings, providing a stable indication of trend health, whereas a length of 50 will make the readings more reactive to recent price changes.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
VSA Wyckoff Volume with Bubbles Introducing the "VSA Wyckoff Volume" indicator—a powerful tool for traders who want to visualize and analyze market volume with precision. This indicator leverages Volume Spread Analysis (VSA) and Wyckoff principles to categorize volume into six distinct levels: Ultra High, Very High, High, Normal, Low, and Very Low. Each level is represented by a color-coded bubble on the chart, with bubble sizes adjusted according to the volume intensity. Additionally, the indicator incorporates an ATR-based positioning system, ensuring that each bubble is placed accurately on the chart for easy interpretation. Whether you're an experienced trader or new to the market, this indicator provides clear insights into market activity, helping you make more informed trading decisions.
Volume Spread Analysis (VSA) is a trading methodology that analyzes the relationship between volume, price, and the spread (range) of a price bar. It was developed by Tom Williams, who combined his experience as a trader with principles derived from Richard D. Wyckoff's work on market manipulation.
Key Concepts of VSA:
Volume: The amount of a particular asset traded during a specific time period. In VSA, volume is a key indicator of market activity and is used to understand the strength or weakness behind price movements.
Spread: The range between the high and low of a price bar. The spread, when analyzed in conjunction with volume, can indicate whether the market is being driven by strong or weak hands.
Price: The actual value at which an asset is traded. VSA looks at price in relation to volume and spread to identify the intentions of smart money (large institutional traders).
How VSA Works:
VSA aims to uncover the footprints of smart money by analyzing the volume and price spread. The core idea is that significant price movements accompanied by high volume indicate the involvement of professional traders, while price movements on low volume might suggest that the move lacks conviction or is driven by retail traders.
VSA in Practice:
High Volume, Narrow Spread: This could indicate supply coming into the market as professional traders sell into the buying pressure, leading to potential price weakness.
High Volume, Wide Spread, Price Up: This often suggests strong buying interest, with smart money pushing prices higher.
Low Volume, Wide Spread: A sign of a potential weak market, where price is moving without strong participation, indicating that the move may not be sustainable.
Applications:
VSA is particularly useful for identifying potential turning points in the market, understanding market sentiment, and anticipating future price movements based on the actions of smart money. Traders who use VSA often combine it with other technical analysis tools to build a comprehensive trading strategy.
Your "VSA Wyckoff Volume" indicator, by categorizing volume into distinct levels and visualizing it on the chart, provides an enhanced way to apply VSA principles and understand the underlying market dynamics.
DataDoodles ATR RangeThe "DataDoodles ATR Range" indicator provides a comprehensive visual representation of the Average True Range (ATR) levels based on the previous bar's close price . It includes both the raw ATR and an Exponential Moving Average (EMA) of the ATR to offer a smoother view of the range volatility. This indicator is ideal for traders who want to quickly assess potential price movements relative to recent volatility.
Key Features:
ATR Levels Above and Below Close: The indicator calculates and displays three levels of ATR-based ranges above and below the previous close price. These levels are visualized on the chart using distinct colors:
- 1ATR Above/Below
- 2ATR Above/Below
- 3ATR Above/Below
EMA of ATR
Includes the EMA of ATR to provide a smoother trend of the ATR values, helping traders identify long-term volatility trends.
Color-Coded Ranges: The plotted ranges are color-coded for easy identification, with warm gradient tones applied to the corresponding data table for quick reference.
Customizable Table: A data table is displayed at the bottom right corner of the chart, providing real-time values for ATR, EMA ATR, and the various ATR ranges.
Usage
This indicator is useful for traders who rely on volatility analysis to set stop losses, take profit levels, or simply understand the current market conditions. By visualizing ATR ranges directly on the chart, traders can better anticipate potential price movements and adjust their strategies accordingly.
Customization
ATR Length: The default ATR length is set to 14 but can be customized to fit your trading strategy.
Table Positioning: The data table is placed in the bottom right corner by default but can be moved as needed.
How to Use
Add the "DataDoodles ATR Range" indicator to your chart.
Observe the plotted lines for potential support and resistance levels based on recent volatility.
Use the data table for quick reference to ATR values and range levels.
Disclaimer: This indicator is a tool for analysis and should be used in conjunction with other indicators and analysis methods. Always practice proper risk management and consider market conditions before making trading decisions.
Displacement [QuantVue]Displacement refers to a significant and forceful price movement that indicates a potential shift in market sentiment or trend. Displacement is characterized by a strong push in price action, often seen after a period of consolidation or within a trending market. It is a key concept used to identify the strength of a move and to confirm the direction of the market.
The "Displacement" indicator does this by focusing on identifying strong, directional price movements by combining candlestick analysis with volatility (ATR).
Displacement often appears as a group of candles that are all positioned in the same direction, these candles typically have large bodies and short wicks.
How the indicator works:
Body Size Requirement: Ensures that only candles with a significant body size (relative to their total range) are considered, helping to identify strong market moves.
Consecutive Candle Analysis: Identifies shifts in market sentiment by requiring a series of consecutive bullish or bearish candles to confirm a potential change in trend.
ATR-Based Analysis: Uses the Average True Range (ATR) to gauge market volatility and filter out minor price fluctuations, focusing on substantial movements.
Once all of the requirements are met a triangle is plotted above or below the bar.
Double Donchian Channels [CrossTrade]Dual Channel System
The indicator incorporates two Donchian Channels - the Inner Channel and the Outer Channel. These channels are adjustable, allowing users to define their lengths according to their trading strategy.
Inner Channel: With a default length of 100 periods, the Inner Channel provides a closer view of market trends and potential support and resistance areas. It includes an upper, lower, and middle line (average of the upper and lower), offering detailed insights into shorter-term price movements.
Outer Channel: Set with a default length of 300 periods, the Outer Channel offers a broader perspective, ideal for identifying long-term trends and stronger levels of support and resistance.
Dynamic Color Coding: The middle lines of both channels change color based on the relationship between the previous close and the channel's basis. This feature provides an immediate visual cue regarding market sentiment.
Touching Bars Highlighting: The indicator highlights bars that touch the upper or lower bands of either channel. This is particularly useful for identifying potential reversals or continuation patterns.
Pullback Identification: By differentiating between bars that touch the Inner Channel only and those that touch the Outer Channel, the indicator helps in identifying pullbacks within a broader trend.
Customizable Alert System: Users can set up alerts for specific conditions - a bar touching the bottom band of the Inner Channel (green), the bottom band of the Outer Channel (blue), the upper band of the Inner Channel (red), and the upper band of the Outer Channel (orange). These alerts assist in timely decision-making and can be tailored to individual trading styles.
The indicator is a versatile tool designed to adapt to various trading styles and timeframes. Its features make it suitable for trend analysis, identifying potential reversal points, and understanding market volatility.
VIX Bars [CrossTrade]In simple terms, this indicator colors your chart bars based on the VIX levels. We know that high volatility is unstainable and will naturally regress to a calmer market, therefore highlighting the bars where VIX is at extreme highs can sometimes indicate a market turning point. Consider pairing this indicator with my VIX Heatmap indicator for a complete picture of volatility.
Customizable VIX Levels: You can set your own thresholds for when the bars turn green or red. Green bars pop up when the VIX is above your set upper level (default is 30) - kind of like a heads-up that things might get bumpy. Red bars show up when the VIX dips below your lower threshold (default is 15), signaling calmer waters.
Optional Donchian Channel Filter: The Donchian Channel filter looks at the highest highs and lowest lows over your chosen period (default's 52 days) and only colors the bars if they match the filter's criteria. This adds an extra layer of confirmation that the colored bars at at a major high or low.
Visual Simplicity: The indicator keeps things visually straightforward. No cluttered screen, just colored bars telling you a story about market vibes. Alert come standard to signal those potential bottom or top bars based on the VIX being at your preferred extreme levels.
In essence, "VIX Bars" is like having a volatility radar on your chart. It doesn't make predictions, but it sure gives you a neat, color-coded heads-up on market sentiment. Great for adding an extra dimension to your analysis without getting all tangled up in complex indicators!
VIX-Heatmap [CrossTrade]The "VIX-Heatmap" is a sophisticated and informative indicator designed for traders who want to integrate volatility analysis into their trading strategy, especially focusing on the market's fear gauge, the VIX (Volatility Index). This tool is not just about plotting numbers; it's about visualizing market sentiment in a more intuitive and impactful way.
Key Features and Customization Options:
1. Primary Functionality:
At its core, the VIX-Heatmap tracks the daily closing price of the VIX. It provides a clear, line-based visualization, with the line color set to black for stark contrast and easy visibility.
2. Segmented Volatility Levels:
The indicator allows users to set multiple VIX levels: Danger Zone (super low VIX level), and Levels 1 through 5. These levels are represented as horizontal lines on the chart, offering a structured view of different volatility thresholds.
3. Customizable Thresholds:
Traders can input their preferred values for each level, tailoring the indicator to fit their perception of market risk and volatility. This customization makes the tool versatile for different trading styles and market conditions.
4. Heatmap Visualization:
The chart's background color changes based on the VIX level, creating a "heatmap" effect. This visual representation allows traders to quickly gauge the current market sentiment. The color intensity varies from white (for extremely low VIX values) through various shades of red, increasing in intensity with higher VIX levels. This gradient provides an immediate visual cue of rising or falling market anxiety.
5. Interactive Display:
The indicator includes an interactive table display at the bottom center of the chart that shows the current VIX level in large, bold text, ensuring that it catches the trader's eye.
6. Optional Background Coloring:
Users have the option to enable or disable the heatmap feature. When enabled, the chart's background reflects the VIX level with the corresponding color, enhancing the visual impact of the data.
Applications and Benefits:
The VIX-Heatmap is ideal for traders who base their decisions not only on price movements but also on market sentiment and volatility. Its color-coded heatmap approach simplifies the interpretation of the VIX data, making it accessible even to those who may not be deeply familiar with volatility indices. By offering a quick visual summary of current market fear levels, it aids in making informed decisions, especially in times of market uncertainty.
In summary, the VIX-Heatmap transforms the traditional VIX data into an interactive, visually engaging, and easy-to-interpret format.
Z-Score AggregatorOverview:
This indicator is designed to take multiple other indicators as inputs, calculate their respective Z-scores, and then aggregate these Z-scores to provide a comprehensive measure. By transforming the inputs into Z-scores, this indicator standardizes the data, enabling a more accurate comparison across different indicators, each of which may have different scales and distributions.
This indicator is beneficial for Mean-Reversion style trading and investing as it standardizes indicators and lets them work together in one system.
The Z-score, which represents how many standard deviations an element is from the mean, is a crucial statistical tool in this process. It allows the indicator to normalize the varying data points, ensuring that each indicator's contribution to the aggregate score is proportional to its deviation from the average performance.
Inputs:
Z-score length: How far Back it will take into account the inputs
Number Of Sources: This is to set the number of inputs the indicator uses so it calculates them properly and uses only the number of indicators you want.
Source Inputs: 1-10 inputs (no need to use them all as long as you set the number of used indicators beforehand).
Note:
There are three indicators used in this example which are CCI, RSI and Sharpe Ratio. The indicator calculates their individual Z-scores and takes an average. Because Number Of Sources is set to 3 it only uses the first 3 indicators in use.
VPSA - Volume Price Spread AnalysisDear Analysts and Traders,
I am pleased to present the latest version of my indicator, based on the logic of analyzing spread and volume. In this version, the indicator examines spread and volume using min-max normalization. The statistical value is captured through Z-Score standardization, and I have added configurable alerts based on the normalized values of spread, volume, and the sigmas for these variables.
Theory and Evolution of the Indicator
The normalization function used in this program allows for the comparison of two values with different ranges on a single chart. The values that reach the highest within the examined range are assigned a value of one. As in previous versions, I have adopted a bar chart where the wider bar represents volume and the narrower bar represents spread. I believe that using normalization is the most intuitive approach, as the standardization in the earlier sVPSA version could cause confusion. This was due to smaller bars for higher actual values and negative bars, which required additional reliance on actual volume data and significant proficiency in using the indicator. These were limitations stemming from the computational aspect of these issues. As in the previously mentioned script, I also used Z-Score standardization here, which serves as a measure of deviation from the mean. This is visualized in the script as the color of the bars, which in the default configuration are as follows: below one sigma - blue; above one sigma up to two sigmas - green; above two sigmas up to three sigmas - red; and above three sigmas - fuchsia. Additionally, I applied an exponential moving average in this indicator to minimize the influence of older candles on the mean. The indicator has been enhanced with configurable alerts, allowing for substantial control over the conditions triggering them. The alerts enable the definition of normalized variable values and sigma values. Furthermore, the program allows for the definition of logical dependencies for these conditions.
Summary
The program I have developed is a synthesis of the most important and useful functions from the indicators I previously created. The indicator is a standalone and powerful tool that facilitates effective analysis of the spread-volume relationship, which is one of the fundamental methods of analysis according to the Wyckoff and VSA methodologies. The alerts introduced in this version provide extensive possibilities for controlling the dynamics of any market.
Should you encounter any errors or have suggestions regarding the indicator, please feel free to contact me.
I wish you successful analyses! All the best!
CatTheTrader
