Enhanced High-Low Difference IndicatorEnhanced High-Low Difference Indicator
The "Enhanced High-Low Difference Indicator" is a powerful tool that highlights market volatility by tracking the difference between the high and low prices of a bar. Key features include:
Customizable Threshold: Set your own threshold for the high-low difference to filter out minor fluctuations.
Visual Highlights: Bars that exceed the threshold are highlighted with customizable color and opacity settings for easy identification.
Optional Labels: Display the exact high-low difference on the bars when the threshold is exceeded, with fully customizable label color and size.
High-Low Difference Line: Optionally plot a line that tracks the high-low difference of each bar for visual reference.
Alerts: Receive real-time alerts when the high-low difference exceeds your specified threshold.
Threshold Reference Line: Plot the threshold value as a horizontal reference line on the chart.
This indicator is ideal for traders looking to identify volatility spikes and make informed trading decisions based on price action.
Volatilite
Options Series - P_SAR And Supertrend
The provided PineScript combines two well-known indicators—Parabolic SAR (P_SAR) and Supertrend—to create a comprehensive trading tool. Here are some powerful insights and the importance of this script:
⭐ 1. Supertrend Indicator:
What it does: The Supertrend indicator is based on the Average True Range (ATR) and is used to identify trend direction. When the price is above the Supertrend line, it suggests an uptrend, and when below, a downtrend.
Insights:
Trend Following: By adjusting the ATR length (atrPeriod) and the multiplier (factor), you can fine-tune the sensitivity of the Supertrend. A smaller ATR or factor results in more frequent trend changes, whereas larger values make the indicator more robust but slower to react.
Trend Visualization: The script highlights trends with the help of green and red lines, offering a clear visual cue for traders. The uptrend is filled with a translucent green and the downtrend with red, allowing quick identification of market momentum.
⭐ 2. Parabolic SAR (P_SAR):
What it does: The Parabolic SAR is a time/price-based indicator that helps identify potential reversals in the market. The dots (SAR) follow the price and move closer to it as the trend progresses.
Insights:
Trailing Stops: This is commonly used by traders to trail stop losses, as the SAR moves closer to price as the trend strengthens.
Combining with Supertrend: The SAR dots in this script act as an additional confirmation for trend direction. For instance, when the price is above both the SAR and Supertrend, it strongly suggests an uptrend.
⭐ 3. Bar Coloring Based on Trend Confirmation:
What it does: The script calculates conditions based on whether the price is above or below both the Supertrend and SAR values.
Insights:
Bullish/Bearish Confirmation: The combination of these two indicators provides a stronger confirmation of trend direction compared to using either one alone. For example:
Green Bars: If the price is above both the Supertrend and SAR, it signals a strong uptrend (bullish).
Red Bars: If the price is below both, it suggests a strong downtrend (bearish).
Visual Alerts: The candle colors are adjusted based on these conditions, providing a quick visual alert for traders to take action.
⭐ 4. Importance of Using Both Supertrend and P_SAR:
Multiple Confirmations: Combining the Supertrend and Parabolic SAR increases the accuracy of trend-following strategies. Each indicator has its strengths: Supertrend is good for identifying the overall trend, while the SAR excels at identifying potential reversals.
Risk Management: This script can help you not only identify trends but also manage your positions more effectively. The Parabolic SAR, for example, can serve as a dynamic stop-loss level, while the Supertrend can help you stay in trades longer by smoothing out noise in the market.
⭐ 5. Customizable Inputs:
Adaptability: The user can adjust the ATR period, factor, start, increment, and maximum values, tailoring the script to different market conditions and timeframes. This flexibility is essential, as each asset class or market may require different parameter settings.
⭐ 6. Practical Application in Trading:
Entry and Exit Signals: The script can be used to generate entry and exit signals. For instance:
Buy Signal: When the bar turns green (price is above Supertrend and SAR), it could be a signal to go long.
Sell Signal: When the bar turns red (price is below Supertrend and SAR), it could be a signal to go short or exit a long position.
Stop-Loss Placement: The Parabolic SAR dots can act as trailing stop-loss levels, helping traders lock in profits as trends progress.
Trend Continuation vs. Reversal: The Supertrend provides a broader view of the trend, while the Parabolic SAR provides pinpoint entry/exit signals for reversals.
🚀 Conclusion:
This script is a robust combination of trend-following and reversal indicators, making it a versatile tool for traders. The dual confirmation from Supertrend and Parabolic SAR reduces false signals, and the color-coded bars provide quick insights into market conditions. When used properly, this can greatly improve your ability to catch trends early, exit at the right moment, and manage risk effectively.
Indicator 10**Indicator 10** is a sophisticated technical analysis tool designed for use on trading platforms that support Pine Script (version 5). This indicator is primarily focused on analyzing price movements over different timeframes, incorporating elements of ZigZag analysis, Fibonacci levels, and historical price range calculations. Below is a detailed description of its features and functionalities:
#### Key Features:
1. **Input Variables:**
- **Year_calc:** Specifies the number of years to consider for historical price range calculations.
- **Size_fibo:** Defines the size of the Fibonacci levels in points.
- **Dig:** Represents the minimum tick size for the instrument being analyzed.
- **ZigZag Parameters:**
- **Period (zigzag_len):** The length of the ZigZag indicator.
- **Depth (zigzag_depth):** The depth percentage for the ZigZag indicator.
- **Display Count (zigzag_hist):** The number of ZigZag points to display.
- **Font Size (font_size):** The size of the font used for labels.
2. **Historical Price Range Calculation:**
- The indicator calculates the average weekly and monthly price ranges over the specified number of years (`Year_calc`).
- These ranges are used to adjust the Fibonacci levels dynamically based on historical volatility.
3. **ZigZag Analysis:**
- The indicator employs a custom ZigZag function to identify significant price swings on different timeframes (H4, D1, W1).
- The ZigZag points are stored in arrays, allowing for the visualization of recent price swings.
4. **Fibonacci Adjustment:**
- The Fibonacci levels are adjusted based on the historical price ranges (`W1_Val`, `MN1_Val`, `D1_Val`).
- These adjusted levels are used to draw support and resistance lines on the chart.
5. **Visualization:**
- The indicator draws lines and labels on the chart to represent the ZigZag points and adjusted Fibonacci levels.
- Different colors are used to distinguish between upward and downward trends.
6. **Dynamic Updates:**
- The indicator continuously updates the ZigZag points and Fibonacci levels as new price data becomes available.
- It ensures that only the most recent ZigZag points are displayed, maintaining a clean and relevant chart.
#### How It Works:
1. **Initialization:**
- The indicator initializes variables for storing historical price ranges and ZigZag points.
- It sets the start date for historical calculations based on the current year minus the specified number of years (`Year_calc`).
2. **Historical Data Retrieval:**
- The indicator retrieves weekly and monthly high and low prices for the specified period.
- It calculates the total price range and the average range for each timeframe.
3. **ZigZag Calculation:**
- The custom ZigZag function identifies local highs and lows based on the specified period and depth.
- These points are stored in arrays for later visualization.
4. **Fibonacci Adjustment:**
- The Fibonacci levels are adjusted based on the historical price ranges and the specified Fibonacci size.
- These adjusted levels are used to draw lines on the chart.
5. **Visualization:**
- The indicator draws lines connecting ZigZag points and labels indicating the direction of the trend.
- It ensures that only the most recent ZigZag points are displayed, maintaining a clean and relevant chart.
6. **Continuous Updates:**
- The indicator continuously updates the ZigZag points and Fibonacci levels as new price data becomes available.
- It ensures that only the most recent ZigZag points are displayed, maintaining a clean and relevant chart.
#### Conclusion:
**Indicator 10** is a powerful tool for traders who rely on historical price analysis, ZigZag patterns, and Fibonacci levels to make trading decisions. Its dynamic and adaptive nature ensures that the chart remains relevant and useful, providing traders with a clear view of recent price movements and potential support/resistance levels.
Gaps Trend [ChartPrime]The Gaps Trend - ChartPrime indicator is designed to detect Fair Value Gaps (FVGs) in the market and apply a trailing stop mechanism based on those gaps. It identifies both bullish and bearish gaps and provides traders with a way to manage trades dynamically as gaps appear. The indicator visually highlights gaps and uses the detected momentum to assess trend direction, helping traders identify price imbalances caused by strong buy or sell pressure.
⯁ KEY FEATURES & HOW TO USE
⯌ Fair Value Gap (FVG) Detection :
The indicator automatically detects both bullish and bearish FVGs, identifying gaps between candle highs and lows. Bullish gaps are shown in green, and bearish gaps in purple. These gaps indicate price imbalances driven by strong momentum, such as when there is significant buying or selling pressure.
Use : Traders can use FVG detection to identify periods of high price momentum, offering insight into potential continuation or exhaustion of trends.
⯌ Trailing Stop Feature Based on FVGs :
A core feature of this indicator is the trailing stop mechanism, which adjusts dynamically based on the identified FVGs. When a bullish gap is detected, the trailing stop is placed below the price to capture upward momentum, while bearish gaps result in a trailing stop placed above the price. This feature helps traders stay in trends while protecting profits as the price moves.
Use : The trailing stop follows the momentum of the price, ensuring that traders can stay in profitable trades during strong trends and exit when the momentum shifts.
bullish set up
bearish set up
⯌ Trend Direction Indication :
The indicator colors the chart according to the current trend direction based on the position of the price relative to the trailing stop. Green indicates an uptrend (bullish gap), while purple shows a downtrend (bearish gap). This provides traders with a quick visual assessment of trend direction based on the presence of gaps.
Use : Traders can monitor the chart's color to stay aligned with the market’s trend, staying long during green phases and short during purple ones.
⯌ Gap Size Filtering :
Each detected gap is assigned a numerical ranking based on its size, with larger gaps having higher rankings. The gap size filter allows traders to only display gaps that meet a minimum size threshold, focusing on the most impactful gaps in terms of price movement.
Use : Traders can use the filter to focus on gaps of a certain size, filtering out smaller, less significant gaps. The numerical ranking helps identify the largest and most influential gaps for decision-making.
⯌ FVG Level Visualization :
The indicator can display dashed lines marking the levels of previously filled FVGs. These levels represent areas where price once experienced a gap and later filled it. Monitoring these levels can provide traders with key reference points for potential reactions in price.
Use : Traders can use these gap levels to track where price has filled gaps and potentially use these levels as zones for entry, exit, or assessing market behavior.
⯁ USER INPUTS
Filter Gaps : Adjust the size threshold to filter gaps by their size ranking.
Show Gap Levels : Toggle the display of dashed lines at filled FVG levels.
Enable Trailing Stop : Activate or deactivate the trailing stop feature based on FVGs.
Trailing Stop Length : Set the number of bars used to calculate the trailing stop.
Bullish/Bearish Colors : Customize the colors representing bullish and bearish gaps.
⯁ CONCLUSION
The Gaps Trend indicator combines Fair Value Gap detection with a dynamic trailing stop feature to help traders manage trades during periods of high price momentum. By detecting gaps caused by strong buy or sell pressure and applying adaptive stops, the indicator provides a powerful tool for riding trends and managing risk. The additional ability to filter gaps by size and visualize previously filled gaps enhances its utility for both trend-following and risk management strategies.
Amplitude [Anan]The Amplitude indicator calculates and visualizes both the amplitude and cumulative amplitude of price movements, providing traders with insights into price volatility and trend strength. By distinguishing between positive and negative amplitude movements, this indicator aids in identifying bullish and bearish sentiments, potential reversal points, and confirming trend directions.
█ Main Formulas
‣ Amplitude = High - Low
‣ Cumulative Amplitude = sum of Amplitude over the specified lookback period
‣ Percentage Amplitude = (Amplitude / Open) × 100%
High: Candle high (or highest high when lookback > 1)
Low: Candle low (or lowest low when lookback > 1)
Open: Open price of the first candle in the lookback period
█ Key Features
✦Dual Amplitude Calculations:
Amplitude: Reflects price range and direction over a short-term period.
Cumulative Amplitude: Aggregates amplitude over a longer period for broader trend analysis.
✦Customizable Parameters: Adjust lookback periods, smoothing options, moving averages and Alerts.
✦Direction Separation: Distinguish between positive and negative amplitude movements to identify market sentiment.
✦Flexible Visualization: Customizable colors and plot styles for enhanced chart readability.
✦Alert System: Generate signals based on amplitude direction and moving average crossovers
█ How to Use and Interpret
✦Understanding Amplitude and Cumulative Amplitude:
‣Amplitude: Measures the price range (high - low) over a specified short-term period.
‣Cumulative Amplitude: Aggregates amplitude over a defined longer-term period.
‣Percentage Representation: shows amplitude relative to the open price from `amp_length` bars ago, providing a normalized view.
‣Interpretation:
Large Amplitude Values: Indicate high volatility.
Small Amplitude Values: Indicate low volatility.
✦Trend Identification:
‣Uptrend: Consistently positive amplitudes and upward-moving averages.
‣Downtrend: Consistently negative amplitudes and downward-moving averages.
✦Overbought/Oversold Conditions:
‣High Positive Amplitude: May indicate overbought conditions and potential reversals.
‣High Negative Amplitude: May indicate oversold conditions and potential reversals.
✦Volatility Analysis:
‣High Amplitude Values: Suggest increased market volatility.
‣Low Amplitude Values: Suggest reduced market volatility.
✦Signal Confirmation:
‣Moving Average Crossovers: Confirm the strength and direction of trends, aiding in informed trading decisions.
✦Trading Strategies:
‣ Breakout Trading: Large increases in amplitude can signal potential breakouts.
‣ Mean Reversion: Extreme amplitude values may indicate upcoming price corrections.
‣ Volatility-Based Strategies: Adjust position sizes or trading frequency based on amplitude magnitudes.
‣ Multi-Timeframe Analysis: Compare amplitudes across different timeframes for a comprehensive market view.
█ Customization Tips
‣ Lookback Periods: Experiment with different periods to suit your trading style and asset characteristics.
‣ Smoothing Settings: Adjust to balance responsiveness and noise reduction.
‣ Percentage Amplitude: Use for normalized comparisons across different price levels.
Large Candle Detector (6-Candle Comparison)This indicator identifies large price candles that are bigger than the previous six candles, helping traders spot potential breakout or reversal signals. By highlighting significant candles compared to recent price action, it provides insights into key moments of increased volatility or momentum shifts in the market.
Magic Order Blocks [MW]Add a slim design, minimalist view of the most relevant higher and lower order blocks to your chart. Use our novel method of filtering that uses both the the number of consecutive bullish or bearish candles that follow the order block, and the number of ATRs that the asset’s price changed following the order block. View just the order blocks above and below the current price, or view the backgrounds for each and every one. And, if you're up to it, dig into a comprehensive view of the data for each order block candle.
Settings:
General Settings
Minimum # of Consecutive Bars Following Order Block
Show Bullish Order Blocks Below / Hide Last Bullish Block
Show Bearish Order Blocks Above / Hide Last Bearish Block
Use ATR Filter - Select # of ATRs Below
Closest Order Block is Followed by This Many ATRs
Preferences
Right Offset of Indicator Label
Show Mid-Line from Recent Order Block Indicator Label
Use ATRs Instead of Consecutive Candles in Label Indicator
Show Timestamp of Recent Order Block
Show Large Order Block Detail Labels
Show Small Order Block Labels
Background Settings
Show Background for Recent Order Block Indicator Label
# of Backgrounds to Show Before Now
Show All Bullish Order Block Backgrounds
Show All Bearish Order Block Backgrounds
Calculations
This indicator creates a matrix of each order block that is followed by the user-specified number of consecutive bullish or bearish candles. The data can be further filtered by the number of ATRs that the price moves after the order block - also user-defined. The most recent bearish order block above the current price takes arrays from the initial filtered matrix of arrays, filters once more by the “mid-price” of the order block (the average between the order block candle high and low) and selects the last element from this order block matrix. The same follows for the latest bearish order block above the current price.
How to Use
An order block refers to a price range or zone on a chart where large institutional orders have been placed, causing a significant shift in market direction. These zones are crucial because they often indicate areas of strong buying or selling interest, which can lead to future support or resistance levels. Traders use order blocks to identify potential points of market reversal or continuation.
The Magic Order Blocks default view shows the most recent overhead bearish order block above the current price, and the most recent bullish order block below. These can presumably act as support or resistance levels, because they reflect the last price where a significant price move occurred. “Significant” meaning that the order block candle was followed by many consecutive bullish or bearish candles. Based on the user-defined settings, it can also mean that price moved multiples of the asset's average true range (ATR). More consecutive candles means that the duration of the move lasted a long time. A higher ATR move indicates that the price moved impulsively in one direction.
The default view also shows a label to the right of the current price that provides the price level, the time stamp of the order block (optional), and a sequence of bars that show the significance of the level. By default, these bars represent the number of ATRs that price rose or fell following the order block, but they can be toggled to show the number of consecutive bullish or bearish candles that followed the order block.
Although the default view provides the zones that are most relevant to the current price, past order block candles can also be identified visually with labels as well with translucent backgrounds color-coded for bullish or bearish bias. Overlapping backgrounds can identify an area that has been repeatedly been an area of support or resistance.
A detailed view of each order block can also be viewed the includes the following data points:
Bar Index
Timestamp
Consecutive Accumulated Volume
Consecutive Bars
Price Change over Consecutive Bars
Price/Volume Ratio Over Consecutive Bars
Mid Price of Order Block
High Price of Order Block
Low Price of Order Block
ATRs over Consecutive Bars
- Other Usage Notes and Limitations:
The calculations used only provide an estimated relationship or a close approximation, and are not exact.
It's important for traders to be aware of the limitations of any indicator and to use them as part of a broader, well-rounded trading strategy that includes risk management, fundamental analysis, and other tools that can help with reducing false signals, determining trend direction, and providing additional confirmation for a trade decision. Diversifying strategies and not relying solely on one type of indicator or analysis can help mitigate some of these risks.
Things to keep in mind. Longer timeframes don’t necessarily have a as many consecutive candle drops or gains as with shorter timeframes, so be sure to adjust your settings when moving to 1 hour, 1 day, or 1 week timeframes from 1 minute, 5 minute, or 15 minute timeframes.
Connors VIX Reversal III invented by Dave LandryThis strategy is based on trading signals derived from the behavior of the Volatility Index (VIX) relative to its 10-day moving average. The rules are split into buying and selling conditions:
Buy Conditions:
The VIX low must be above its 10-day moving average.
The VIX must close at least 10% above its 10-day moving average.
If both conditions are met, a buy signal is generated at the market's close.
Sell Conditions:
The VIX high must be below its 10-day moving average.
The VIX must close at least 10% below its 10-day moving average.
If both conditions are met, a sell signal is generated at the market's close.
Exit Conditions:
For long positions, the strategy exits when the VIX trades intraday below its previous day’s 10-day moving average.
For short positions, the strategy exits when the VIX trades intraday above its previous day’s 10-day moving average.
This strategy is primarily a mean-reversion strategy, where the market is expected to revert to a more normal state after the VIX exhibits extreme behavior (i.e., large deviations from its moving average).
About Dave Landry
Dave Landry is a well-known figure in the world of trading, particularly in technical analysis. He is an author, trader, and educator, best known for his work on swing trading strategies. Landry focuses on trend-following and momentum-based techniques, teaching traders how to capitalize on shorter-term price swings in the market. He has written books like "Dave Landry on Swing Trading" and "The Layman's Guide to Trading Stocks," which emphasize practical, actionable trading strategies.
About Connors Research
Connors Research is a financial research firm known for its quantitative research in financial markets. Founded by Larry Connors, the firm specializes in developing high-probability trading systems based on historical market behavior. Connors’ work is widely respected for its data-driven approach, including systems like the RSI(2) strategy, which focuses on short-term mean reversion. The firm also provides trading education and tools for institutional and retail traders alike, emphasizing strategies that can be backtested and quantified.
Risks of the Strategy
While this strategy may appear to offer promising opportunities to exploit extreme VIX movements, it carries several risks:
Market Volatility: The VIX itself is a measure of market volatility, meaning the strategy can be exposed to sudden and unpredictable market swings. This can result in whipsaws, where positions are opened and closed in rapid succession due to sharp reversals in the VIX.
Overfitting: Strategies based on specific conditions like the VIX closing 10% above or below its moving average can be subject to overfitting, meaning they work well in historical tests but may underperform in live markets. This is a common issue in quantitative trading systems that are not adaptable to changing market conditions .
Mean-Reversion Assumption: The core assumption behind this strategy is that markets will revert to their mean after extreme movements. However, during periods of sustained trends (e.g., market crashes or rallies), this assumption may break down, leading to prolonged drawdowns.
Liquidity and Slippage: Depending on the asset being traded (e.g., S&P 500 futures, ETFs), liquidity issues or slippage could occur when executing trades at market close, particularly in volatile conditions. This could increase costs or worsen trade execution.
Scientific Explanation of the Strategy
The VIX is often referred to as the "fear gauge" because it measures the market's expectations of volatility based on options prices. Research has shown that the VIX tends to spike during periods of market stress and revert to lower levels when conditions stabilize . Mean reversion strategies like this one assume that extreme VIX levels are unsustainable in the long run, which aligns with findings from academic literature on volatility and market behavior.
Studies have found that the VIX is inversely correlated with stock market returns, meaning that higher VIX levels often correspond to lower stock prices and vice versa . By using the VIX’s relationship with its 10-day moving average, this strategy aims to capture reversals in market sentiment. The 10% threshold is designed to identify moments when the VIX is significantly deviating from its norm, signaling a potential reversal.
However, academic research also highlights the limitations of relying on the VIX alone for trading signals. The VIX does not predict market direction, only volatility, meaning that it cannot indicate the magnitude of price movements . Furthermore, extreme VIX levels can persist longer than expected, particularly during financial crises.
In conclusion, while the strategy is grounded in well-established financial principles (e.g., mean reversion and the relationship between volatility and market performance), it carries inherent risks and should be used with caution. Backtesting and careful risk management are essential before applying this strategy in live markets.
Larry Conners Vix Reversal II Strategy (approx.)This Pine Script™ strategy is a modified version of the original Larry Connors VIX Reversal II Strategy, designed for short-term trading in market indices like the S&P 500. The strategy utilizes the Relative Strength Index (RSI) of the VIX (Volatility Index) to identify potential overbought or oversold market conditions. The logic is based on the assumption that extreme levels of market volatility often precede reversals in price.
How the Strategy Works
The strategy calculates the RSI of the VIX using a 25-period lookback window. The RSI is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and is often used to identify overbought and oversold conditions in assets.
Overbought Signal: When the RSI of the VIX rises above 61, it signals a potential overbought condition in the market. The strategy looks for a RSI downtick (i.e., when RSI starts to fall after reaching this level) as a trigger to enter a long position.
Oversold Signal: Conversely, when the RSI of the VIX drops below 42, the market is considered oversold. A RSI uptick (i.e., when RSI starts to rise after hitting this level) serves as a signal to enter a short position.
The strategy holds the position for a minimum of 7 days and a maximum of 12 days, after which it exits automatically.
Larry Connors: Background
Larry Connors is a prominent figure in quantitative trading, specializing in short-term market strategies. He is the co-author of several influential books on trading, such as Street Smarts (1995), co-written with Linda Raschke, and How Markets Really Work. Connors' work focuses on developing rules-based systems using volatility indicators like the VIX and oscillators such as RSI to exploit mean-reversion patterns in financial markets.
Risks of the Strategy
While the Larry Connors VIX Reversal II Strategy can capture reversals in volatile market environments, it also carries significant risks:
Over-Optimization: This modified version adjusts RSI levels and holding periods to fit recent market data. If market conditions change, the strategy might no longer be effective, leading to false signals.
Drawdowns in Trending Markets: This is a mean-reversion strategy, designed to profit when markets return to a previous mean. However, in strongly trending markets, especially during extended bull or bear phases, the strategy might generate losses due to early entries or exits.
Volatility Risk: Since this strategy is linked to the VIX, an instrument that reflects market volatility, large spikes in volatility can lead to unexpected, fast-moving market conditions, potentially leading to larger-than-expected losses.
Scientific Literature and Supporting Research
The use of RSI and VIX in trading strategies has been widely discussed in academic research. RSI is one of the most studied momentum oscillators, and numerous studies show that it can capture mean-reversion effects in various markets, including equities and derivatives.
Wong et al. (2003) investigated the effectiveness of technical trading rules such as RSI, finding that it has predictive power in certain market conditions, particularly in mean-reverting markets .
The VIX, often referred to as the “fear index,” reflects market expectations of volatility and has been a focal point in research exploring volatility-based strategies. Whaley (2000) extensively reviewed the predictive power of VIX, noting that extreme VIX readings often correlate with turning points in the stock market .
Modified Version of Original Strategy
This script is a modified version of Larry Connors' original VIX Reversal II strategy. The key differences include:
Adjusted RSI period to 25 (instead of 2 or 4 commonly used in Connors’ other work).
Overbought and oversold levels modified to 61 and 42, respectively.
Specific holding period (7 to 12 days) is predefined to reduce holding risk.
These modifications aim to adapt the strategy to different market environments, potentially enhancing performance under specific volatility conditions. However, as with any system, constant evaluation and testing in live markets are crucial.
References
Wong, W. K., Manzur, M., & Chew, B. K. (2003). How rewarding is technical analysis? Evidence from Singapore stock market. Applied Financial Economics, 13(7), 543-551.
Whaley, R. E. (2000). The investor fear gauge. Journal of Portfolio Management, 26(3), 12-17.
MA OrderBlocks [AlgoAlpha]🟨 HMA OrderBlocks by AlgoAlpha is a powerful tool designed to help traders visualize key pivot zones and order blocks based on the Hull Moving Average (HMA). By dynamically identifying bullish and bearish pivot points, this script provides insights into potential price reversals and trend continuations. With customizable settings, it allows traders to tweak the behavior of the indicator to match their strategies. Plus, it comes packed with built-in alerts for trend changes, making it easier to spot potential trade opportunities.
Key Features :
📊 Trend Detection : Utilizes Hull Moving Average to detect the current trend.
🟢🔴 Bullish & Bearish Zones : Automatically plots bullish and bearish order blocks, using customizable colors for clear visual cues.
🎯 Pivot Points : Detects and marks pivot highs and lows, helping traders spot key price reversals.
🚨 Alerts : Built-in alert system for when the price approaches key bullish or bearish zones, or when the trend changes.
🔨 Customizable MA: Choose from various moving averages (SMA, HMA, EMA, etc.) to suit your strategy.
How to Use :
⭐ Add the Indicator : Add the indicators to favourites by pressing the star icon. Once added, configure settings like the Hull MA period and pivot detection period.
📈 Analyze the Chart : Watch for the plotted order blocks and pivot points to identify possible price action strategies.
🔔 Enable Alerts : Set up alerts to be notified of potential trend reversals or when the price nears a bullish/bearish block.
How It Works :
The script starts by calculating the Hull Moving Average (HMA) based on the user-defined length, which is used to determine the market trend direction. It compares the current HMA value with the previous one to confirm whether the price is trending upwards or downwards. Once a trend change is detected, it plots bullish or bearish order blocks based on recent pivot highs and lows. These zones are extended in real-time as long as they remain invalidated. Zones are invalidated are invalidated when price completely closes through them. If the price gets close to a zone in the opposing direction, a warning system alerts the user that the block may not hold. Additionally, customizable alerts trigger whenever the price trend shifts or the price gets near important bullish/bearish blocks. The script’s logic ensures that order blocks are cleared if price violates them, keeping the chart clean and updated.
Average True Range with Price MAATR with Price Moving Average Indicator
This custom indicator combines the Average True Range (ATR) with a Price Moving Average (MA) to help traders analyze market volatility in percent to the price.
Key Components:
Average True Range (ATR)
Price Moving Average (MA)
ATR/Price in Percent
ATR/Price in Percent
Purpose: This ratio helps traders understand the relative size of the ATR compared to the current price, providing a clearer sense of how significant the volatility is in proportion to the price level.
Calculation: ATR is divided by the current closing price and multiplied by 100 to express it as a percentage. This makes it easier to compare volatility across assets with different price ranges.
Plot: This is plotted as a percentage, making it easier to gauge whether the volatility is proportionally high or low compared to the asset's price.
Usage:
This indicator is designed to help identify the most volatile tokens, making it ideal for configuring a Grid Bot to maximize profit. By focusing on high-volatility assets, traders can capitalize on larger price swings within the grid, increasing the potential for more profitable trades.
Features:
Customizable Smoothing Method: Choose from RMA (Relative Moving Average), SMA (Simple Moving Average), EMA (Exponential Moving Average), or WMA (Weighted Moving Average) for both ATR and the Price Moving Average.
Dual Perspective: The indicator provides both volatility analysis (ATR) and trend analysis (Price MA) in a single view.
Proportional Volatility: The ATR/Price (%) ratio adds a layer of context by showing how volatile the asset is relative to its current price.
Multiple Bollinger Bands + Volatility [AlgoTraderPro]This indicator helps traders visualize price ranges and volatility changes. Designed to assist in identifying potential consolidation zones, the indicator uses multiple layers of Bollinger Bands combined with volatility-based shading. This can help traders spot periods of reduced price movement, which are often followed by breakouts or trend reversals.
█ FEATURES
Multiple Bollinger Bands: Displays up to seven bands with customizable standard deviations, providing a layered view of price range activity.
Volatility Measurement: Tracks changes in Bollinger Band width to display volatility percentage and direction (increasing, decreasing, or neutral).
Volatility Shading: Uses color-coded shading between the outermost bands to indicate changes in volatility, helping to visualize potential consolidation zones.
Customizable Inputs: Modify lookback periods, moving average lengths, and standard deviations for each band to tailor the analysis to your strategy.
Volatility Table: Displays a table on the chart showing real-time volatility data and direction for quick reference.
█ HOW TO USE
Add the Indicator: Apply it to your TradingView chart.
Adjust Settings: Customize the Bollinger Bands’ parameters to suit your trading timeframe and strategy.
Analyze Consolidation Zones: Use the multiple bands and volatility shading to identify areas of reduced price activity, signaling potential breakouts.
Monitor Volatility: Refer to the volatility table to track real-time shifts in market volatility.
Use in Different Markets: Adapt the settings for various assets and timeframes to assess market conditions effectively.
█ NOTES
• The indicator is useful in consolidating markets where price movement is limited, offering insights into potential breakout areas.
• Adjust the settings based on asset and market conditions for optimal results.
Donchian Channel Crosses_AITIndicator Name: Donchian Channel Crosses_AIT
Programming Language: Pine Script (TradingView)
Description
The Donchian Channel Crosses_AIT indicator is designed to provide trading signals based on the crossover of two Donchian Channels with different lookback periods. The indicator uses two channels, Donchian Channel A (default 7-day period) and Donchian Channel B (default 30-day period), to detect upward or downward momentum shifts. The signals are generated when the middle line of Donchian Channel A crosses above or below the middle line of Donchian Channel B.
Components
Donchian Channel A:
Default period: 7 days (modifiable by the user).
Middle Line: Calculated as the average of the highest high and lowest low over the period.
The middle line changes color depending on its position relative to Donchian Channel B.
Green: When Donchian Channel A's middle line is above Donchian Channel B's middle line.
Red: When Donchian Channel A's middle line is below Donchian Channel B's middle line.
Donchian Channel B:
Default period: 30 days (modifiable by the user).
Middle Line: Also calculated as the average of the highest high and lowest low over the period.
Always displayed as a white line with a line thickness of 1.
Long Signal:
Triggered when the middle line of Donchian Channel A crosses above the middle line of Donchian Channel B.
Displayed as a yellow triangle pointing up (L) below the price bar.
Short Signal:
Triggered when the middle line of Donchian Channel A crosses below the middle line of Donchian Channel B.
Displayed as a fuchsia triangle pointing down (S) above the price bar.
Settings
Donchian Channel A:
Default period: 7 days (modifiable via user input).
Middle line changes color based on its relationship to Donchian Channel B.
Donchian Channel B:
Default period: 30 days (modifiable via user input).
Middle line is always white and displayed with a line thickness of 1.
Signal Display:
Long Signal: A yellow "L" triangle is displayed when Donchian Channel A’s middle line crosses above Donchian Channel B’s middle line.
Short Signal: A fuchsia "S" triangle is displayed when Donchian Channel A’s middle line crosses below Donchian Channel B’s middle line.
Signals can be toggled on or off using the "Show Signals" setting.
Usage
Trend Confirmation:
Use this indicator to confirm trend direction by monitoring the relationship between Donchian Channel A and Donchian Channel B.
Uptrend: When Donchian Channel A’s middle line is above Donchian Channel B’s middle line (green line for Donchian A).
Downtrend: When Donchian Channel A’s middle line is below Donchian Channel B’s middle line (red line for Donchian A).
Entry and Exit Signals:
Long Signal: Enter a buy position when Donchian Channel A crosses above Donchian Channel B.
Short Signal: Enter a sell position when Donchian Channel A crosses below Donchian Channel B.
Visual Representation:
The Donchian Channels are drawn on the price chart, with Donchian Channel A dynamically changing color depending on its relative position to Donchian Channel B.
Volatility Trend Bands [UAlgo]The Volatility Trend Bands is a trend-following indicator that combines the concepts of volatility and trend detection. Built using the Average True Range (ATR) to measure volatility, this indicator dynamically adjusts upper and lower bands around price movements. The bands act as dynamic support and resistance levels, making it easier to identify trend shifts and potential entry and exit points.
With the ATR multiplier, this indicator effectively captures volatility-based shifts in the market. The use of midline values allows for accurate trend detection, which is displayed through color-coded signals on the chart. Additionally, this tool provides clear buy and sell signals, accompanied by intuitive graphical markers for ease of use.
The Volatility Trend Bands is ideal for traders seeking an adaptive trend-following method that responds to changing market conditions while maintaining robust volatility control.
🔶 Key Features
Dynamic Support and Resistance: The indicator utilizes volatility to create dynamic bands. The upper band acts as resistance, and the lower band acts as support for the price. Wider bands indicate higher volatility, while narrower bands indicate lower volatility.
Customizable Inputs
You can tailor the indicator to your strategy by adjusting the:
Price Source: Select the price data (e.g., closing price) used for calculations.
ATR Length: Define the lookback period for the Average True Range (ATR) volatility measure.
ATR Multiplier: This factor controls the width of the volatility bands relative to the ATR value.
Color Options: Choose colors for the bands and signal arrows for better visualization.
Visual Signals: Arrows ("▲" for buy, "▼" for sell) appear on the chart when the trend changes, providing clear entry point indications.
Alerts: Integrated alerts for both buy and sell conditions, allowing you to receive notifications for potential trade opportunities.
🔶 Interpreting Indicator
Upper and Lower Bands: The upper and lower bands are dynamic, adjusting based on market volatility using the ATR. These bands serve as adaptive support and resistance levels. When price breaks above the upper band, it indicates a potential bullish breakout, signaling a strong uptrend. Conversely, a break below the lower band signals a bearish breakout, indicating a downtrend.
Buy/Sell Signals: The indicator provides clear buy and sell signals at breakout points. A buy signal ("▲") is generated when the price breaks above the upper band, suggesting the start of a bullish trend. A sell signal ("▼") is triggered when the price breaks below the lower band, indicating the beginning of a bearish trend. These signals help traders identify potential entry and exit points at key breakout levels.
Color-Coded Bars: The bars on the chart change color based on the trend direction. Teal bars represent bullish momentum, while purple bars signify bearish momentum. This color coding provides a quick visual cue about the market's current direction.
🔶 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.
Bollinger Bands ForLoopBollinger Bands ForLoop
OVERVIEW
BB ForLoop is an improved version of Bollinger Bands it is designed to calculate an array of values 1 or -1 depending if soruce for calculations is above or below basis.
It takes avereage of values over a range of lengths, providing trend signals smothed based on various moving averages in order to get rid of noise.
It offers flexibility with different signal modes and visual customizations.
TYPE OF SIGNALS
-FAST (MA > MA or MA > 0.99)
-SLOW (MA > 0)
-THRESHOLD CROSSING (when cross above/below treshold set independently for both directions)
-FAST THRESHOLD (when there's change in signal by set margin e.g (0.4 -> 0.2) means bearsih when FT is set to 0.1, when MA is > 0.99 it will signal bullish, when MA < -0.99 it will signal bearish)
Generaly Lime color of line indicates Bullish, Fuchsia indicates Bearish.
This colors are not set in stone so you can change them in settings.
-Bullish Trend, line color is lime
-Bearish Trend, line color is fuchsia
Credit
Idea for this script was from one of indicators created by www.tradingview.com
Warning
Be careful when using this indicator especialy combining DEMA with FT (Fast Treshold).
This indicator can be really noisy depending on the settings, signal mode so it should be used preferably as a part of an strategy not as a stand alone indicator
Remember the lower the timeframe you use the more noise there is.
No single indicator should be used alone when making investment decisions.
EMA-BAND-PIVOT-VCPThis indicator is named "EMA-BAND-PIVOT-VCP" and integrates multiple elements such as moving averages, volume, volatility contraction patterns (VCP), pivot points, and a table to display key market metrics.
Key Features:
Moving Averages: ( 4 - EMA) default settings 20 , 50 ,144 , 200 . Can be changed in settings.
Pivot Highs and Lows:
The script detects pivot highs and pivot lows using customizable left and right lengths and plots labels to mark these points on the chart.
TIG BAND : This is setting of 2 sma - with the high and low of 90 day average which forms like a band . Its a very strong indicator of trend . Buying is suggestable above this .This has to be tested on your own to knowhow it works wonders ( price magnet). Works on all timeframes . (credit : Bhushan Sir from TIG ) .These are the best buy areas.
Volatility Contraction :
It identifies specific price contraction pattern .
vc marked - used 4 candles - first candle is the mother bar ., 2,3 and 4th candles complete range ( high to low ) is within the range of mother candle.
lc marked -here the closing is considered not the wicks. used 8 candles., the 7 candles closing is within the range of motherbar. Crosses are plotted on the last candle
Table Display:
A table is displayed on the chart with data such as EMA values, relative volume (RVol), Average Daily Range (ADR), and volume ratios. This gives a comprehensive overview of current market conditions.(RVol) compared to the 50-period volume SMA, percentage volume change, and other metrics is also displayed.
Dynamic ALMA with signalsEnhanced ALMA with Signals
This TradingView indicator is designed to enhance your trading strategy by utilizing the Arnaud Legoux Moving Average (ALMA), a unique moving average that provides smoother price action while minimizing lag. The script not only plots the ALMA line but also dynamically adjusts its parameters based on market volatility to adapt to different trading conditions. Additionally, it highlights potential bounce points off the line, as well as breakout points, giving traders clear signals for potential support, resistance levels, and breakouts.
Key Features:
Dynamic ALMA Line with Glow Effect:
The core of this indicator is the ALMA line, which is dynamically adjusted to market volatility, providing more accurate signals in varying conditions. The line adapts to both trending and consolidating markets by adjusting its sensitivity in real time. A glow effect is created by plotting the ALMA line multiple times with increasing transparency, making it visually distinct.
Bounce Detection Signals with Volatility Filter:
The script detects and labels potential support and resistance bounces based on the crossover and crossunder of the price with the ALMA line, further filtered by a volatility condition. This helps in filtering out false signals during low-volatility conditions, making the signals more reliable.
Visual Enhancements:
Custom glow effects and labels for bounce detection enhance chart readability and help traders quickly identify key levels.
Inputs:
Base Window Size: Sets the number of bars used in calculating the ALMA, allowing traders to adjust the sensitivity of the moving average. This parameter is dynamically adjusted based on current market volatility.
Offset: Determines the position of the ALMA curve. Higher values move the curve further away from the price. This value remains constant for stability.
Sigma: Controls the smoothness of the ALMA curve; a higher sigma results in a smoother curve. This value also remains constant.
ATR Period and Threshold Multiplier: Used to calculate the Average True Range (ATR) for the volatility filter, which determines whether the market conditions are sufficiently volatile to consider bounce signals.
How It Works:
Dynamic ALMA Calculation:
The script calculates the ALMA (Arnaud Legoux Moving Average) using the ta.alma function, dynamically adjusting the window size based on market volatility measured by the ATR (Average True Range). This ensures that the ALMA line remains responsive in high-volatility environments and smooth in low-volatility conditions.
Glow Effect:
To create a glow effect around the ALMA line, the script plots the ALMA multiple times with varying degrees of transparency. This visual enhancement helps the ALMA line stand out on the chart.
Bounce Detection with Volatility Filter:
The script uses two conditions to detect potential bounces:
Support Bounce: Detected when the low of the bar crosses above the ALMA line (ta.crossover(low, alma)) and the close is above the ALMA, while the volatility filter confirms sufficient market activity. This suggests potential support at the ALMA line.
Resistance Bounce: Detected when the high of the bar crosses below the ALMA line (ta.crossunder(high, alma)) and the close is below the ALMA, while the volatility filter confirms sufficient market activity. This indicates potential resistance at the ALMA line.
Labeling Bounce Points:
When a bounce is detected, the script labels it on the chart:
Support Bounces (S): Labeled with a blue "S" below the bar where a support bounce is detected.
Resistance Bounces (R): Labeled with a white "R" above the bar where a resistance bounce is detected.
Usage:
This enhanced indicator helps traders visualize key support and resistance levels more effectively by dynamically adjusting the ALMA moving average to market conditions. By detecting and labeling potential bounce points and filtering these signals based on volatility, traders can better identify entry and exit points in their trading strategy. The dynamic adjustments and visual enhancements make it easier to spot critical levels quickly and adapt to changing market conditions.
Customize the inputs to fit your trading style, and use this enhanced ALMA indicator to gain a more refined understanding of market trends, potential reversals, and breakouts.
[ROC3] Rate of Change Candle ColorROC is a statistical indicator which tracks how much a security's price has changed over a certain period, showing whether momentum is picking up or slowing down. It’s a handy tool because it helps traders spot trend changes and understand how strong a trend is.
My ROC3 indicator will color the candlesticks based on the Rate of Change (ROC) and its Exponential Moving Average (EMA). This indicator helps traders visually identify bullish and bearish trends by applying color to the candles, making it easier to spot momentum shifts and trend changes.
How It Works:
Rate of Change (ROC): Calculates the percentage change in the price over a specified number of bars. This indicator measures the speed at which price changes.
EMA of ROC: Applies an Exponential Moving Average to the ROC values to provide a smoothed benchmark. The EMA helps to reduce noise and make trend identification more reliable.
Coloring Logic:
Bullish Candles (Green): When the current ROC is higher than the EMA of the ROC.
Bearish Candles (Red): When the current ROC is lower than the EMA of the ROC.
Settings:
ROC Length (Default: 60): The number of bars used to calculate the Rate of Change. Adjust this parameter to change the sensitivity of the ROC calculation.
ROC EMA Length (Default: 7): The number of bars used to calculate the Exponential Moving Average of the ROC. This length determines how smooth the EMA is. A shorter length reacts faster to price changes, while a longer length provides a smoother, slower response.
How to Use:
Apply the Indicator: Add the Rate of Change Candle Color indicator to your TradingView chart.
Interpret the Colors:
Green Candles: Indicate bullish momentum. The current ROC is greater than its EMA, suggesting upward pressure.
Red Candles: Indicate bearish momentum. The current ROC is less than its EMA, suggesting downward pressure.
Adjust Settings: Customize the ROC Length and ROC EMA Length based on your trading strategy. Shorter ROC lengths may capture more short-term trends, while longer lengths provide a broader view.
Combine with Other Indicators: Use the in conjunction with other technical indicators or chart patterns to enhance your trading analysis.
Example Use Case:
Trend Confirmation: Use the color changes to confirm bullish or bearish trends. Green candles can confirm uptrends, while red candles may signal downtrends or potential reversals.
Momentum Analysis: Monitor how frequently the ROC crosses above or below its EMA to gauge momentum strength and make informed trading decisions.
Note:
This indicator is designed to assist with trend analysis and should be used as part of a broader trading strategy. Always conduct your own research and analysis before making trading decisions.
Cherio...
Sinc Bollinger BandsKaiser Windowed Sinc Bollinger Bands Indicator
The Kaiser Windowed Sinc Bollinger Bands indicator combines the advanced filtering capabilities of the Kaiser Windowed Sinc Moving Average with the volatility measurement of Bollinger Bands. This indicator represents a sophisticated approach to trend identification and volatility analysis in financial markets.
Core Components
At the heart of this indicator is the Kaiser Windowed Sinc Moving Average, which utilizes the sinc function as an ideal low-pass filter, windowed by the Kaiser function. This combination allows for precise control over the frequency response of the moving average, effectively separating trend from noise in price data.
The sinc function, representing an ideal low-pass filter, provides the foundation for the moving average calculation. By using the sinc function, analysts can independently control two critical parameters: the cutoff frequency and the number of samples used. The cutoff frequency determines which price movements are considered significant (low frequency) and which are treated as noise (high frequency). The number of samples influences the filter's accuracy and steepness, allowing for a more precise approximation of the ideal low-pass filter without altering its fundamental frequency response characteristics.
The Kaiser window is applied to the sinc function to create a practical, finite-length filter while minimizing unwanted oscillations in the frequency domain. The alpha parameter of the Kaiser window allows users to fine-tune the trade-off between the main-lobe width and side-lobe levels in the frequency response.
Bollinger Bands Implementation
Building upon the Kaiser Windowed Sinc Moving Average, this indicator adds Bollinger Bands to provide a measure of price volatility. The bands are calculated by adding and subtracting a multiple of the standard deviation from the moving average.
Advanced Centered Standard Deviation Calculation
A unique feature of this indicator is its specialized standard deviation calculation for the centered mode. This method employs the Kaiser window to create a smooth deviation that serves as an highly effective envelope, even though it's always based on past data.
The centered standard deviation calculation works as follows:
It determines the effective sample size of the Kaiser window.
The window size is then adjusted to reflect the target sample size.
The source data is offset in the calculation to allow for proper centering.
This approach results in a highly accurate and smooth volatility estimation. The centered standard deviation provides a more refined and responsive measure of price volatility compared to traditional methods, particularly useful for historical analysis and backtesting.
Operational Modes
The indicator offers two operational modes:
Non-Centered (Real-time) Mode: Uses half of the windowed sinc function and a traditional standard deviation calculation. This mode is suitable for real-time analysis and current market conditions.
Centered Mode: Utilizes the full windowed sinc function and the specialized Kaiser window-based standard deviation calculation. While this mode introduces a delay, it offers the most accurate trend and volatility identification for historical analysis.
Customizable Parameters
The Kaiser Windowed Sinc Bollinger Bands indicator provides several key parameters for customization:
Cutoff: Controls the filter's cutoff frequency, determining the divide between trends and noise.
Number of Samples: Sets the number of samples used in the FIR filter calculation, affecting the filter's accuracy and computational complexity.
Alpha: Influences the shape of the Kaiser window, allowing for fine-tuning of the filter's frequency response characteristics.
Standard Deviation Length: Determines the period over which volatility is calculated.
Multiplier: Sets the number of standard deviations used for the Bollinger Bands.
Centered Alpha: Specific to the centered mode, this parameter affects the Kaiser window used in the specialized standard deviation calculation.
Visualization Features
To enhance the analytical value of the indicator, several visualization options are included:
Gradient Coloring: Offers a range of color schemes to represent trend direction and strength for the moving average line.
Glow Effect: An optional visual enhancement for improved line visibility.
Background Fill: Highlights the area between the Bollinger Bands, aiding in volatility visualization.
Applications in Technical Analysis
The Kaiser Windowed Sinc Bollinger Bands indicator is particularly useful for:
Precise trend identification with reduced noise influence
Advanced volatility analysis, especially in the centered mode
Identifying potential overbought and oversold conditions
Recognizing periods of price consolidation and potential breakouts
Compared to traditional Bollinger Bands, this indicator offers superior frequency response characteristics in its moving average and a more refined volatility measurement, especially in centered mode. These features allow for a more nuanced analysis of price trends and volatility patterns across various market conditions and timeframes.
Conclusion
The Kaiser Windowed Sinc Bollinger Bands indicator represents a significant advancement in technical analysis tools. By combining the ideal low-pass filter characteristics of the sinc function, the practical benefits of Kaiser windowing, and an innovative approach to volatility measurement, this indicator provides traders and analysts with a sophisticated instrument for examining price trends and market volatility.
Its implementation in Pine Script contributes to the TradingView community by making advanced signal processing and statistical techniques accessible for experimentation and further development in technical analysis. This indicator serves not only as a practical tool for market analysis but also as an educational resource for those interested in the intersection of signal processing, statistics, and financial markets.
Related:
Sma Standard Deviation | viResearchSma Standard Deviation | viResearch
Conceptual Foundation and Innovation
The "Sma Standard Deviation" indicator from viResearch combines the benefits of Simple Moving Average (SMA) smoothing with Standard Deviation (SD) analysis, offering traders a powerful tool for understanding price trends and volatility. The SMA provides a straightforward approach to trend detection by calculating the average price over a defined period, while the SD component adds insight into the market's volatility by measuring the variation of prices around the SMA. This combination helps traders identify whether the price is moving within a typical range or deviating significantly, which can signal potential trend shifts or periods of increased volatility. By using both SMA and SD together, this indicator enhances the trader's ability to detect not only the trend direction but also how strongly the market is deviating from that trend, offering more informed decision-making.
Technical Composition and Calculation
The "Sma Standard Deviation" script uses two key elements: the Simple Moving Average (SMA) and Standard Deviation (SD). The SMA is calculated over a user-defined length and represents the smoothed average price over this period. The script also incorporates DEMA smoothing applied to different price sources, providing further refinement to the trend analysis. The SD is calculated by measuring the deviation of the price from the SMA over a separate user-defined length, showing how volatile the price is relative to its average. The script generates upper and lower SD boundaries by adding and subtracting the SD from the SMA, creating a volatility-adjusted range for the price. This allows traders to visualize whether the price is moving within expected bounds or breaking out of its typical range. The script monitors crossovers between the DEMA, SMA, and SD boundaries, generating trend signals based on these interactions.
Features and User Inputs
The "Sma Standard Deviation" script offers several customizable inputs, allowing traders to adjust the indicator to their specific strategies. The SMA Length controls the period for which the moving average is calculated, while the SD Length defines how long the period is for measuring price deviation. Additionally, the DEMA smoothing length can be adjusted for both the trend and standard deviation calculations, giving traders control over how responsive or smooth they want the indicator to be. The script also includes alert conditions that notify traders when trend shifts occur, either to the upside or downside.
Practical Applications
The "Sma Standard Deviation" indicator is designed for traders who want to analyze both market trends and volatility in a unified tool. The combination of the SMA and SD helps traders identify potential trend reversals, as large deviations from the SMA can indicate periods of increased volatility that precede significant price moves. This makes the indicator particularly effective for identifying trend reversals, managing volatility, and improving trend-following strategies. By analyzing when the price moves outside the volatility-adjusted range defined by the SD, traders can detect early signals of potential trend reversals. The SD component helps traders understand how volatile the market is relative to its average price, allowing for more informed decisions in both trending and volatile market conditions. The dual use of DEMA and SMA smoothing allows for a clearer trend signal, helping traders stay aligned with the prevailing market direction while managing the noise caused by short-term volatility.
Advantages and Strategic Value
The "Sma Standard Deviation" script offers significant value by integrating both trend detection and volatility analysis into a single tool. The use of SMA for smoothing price trends, combined with the SD for assessing price volatility, provides a more comprehensive view of the market. This dual approach helps traders filter out false signals caused by short-term fluctuations while identifying potential trend changes driven by increased volatility. This makes the "Sma Standard Deviation" indicator ideal for traders seeking a balance between trend-following and volatility management.
Alerts and Visual Cues
The script includes alert conditions that notify traders when significant trend shifts occur based on price crossovers with the SMA and SD boundaries. The "Sma Standard Deviation Long" alert is triggered when the price crosses above the upper volatility boundary, indicating a potential upward trend. Conversely, the "Sma Standard Deviation Short" alert signals a possible downward trend when the price crosses below the lower boundary. Visual cues, such as changes in the color of the SMA line, help traders quickly identify trend shifts and act accordingly.
Summary and Usage Tips
The "Sma Standard Deviation | viResearch" indicator provides traders with a robust tool for analyzing market trends and volatility. By combining the benefits of SMA smoothing with SD analysis, this script offers a comprehensive approach to detecting trend changes and managing risk. Incorporating this indicator into your trading strategy can help improve your ability to spot trend reversals, understand market volatility, and stay aligned with the broader market direction. The "Sma Standard Deviation" is a reliable and customizable solution for traders looking to enhance their technical analysis in both trending and volatile markets.
Note: Backtests are based on past results and are not indicative of future performance.
[DarkTrader] Strong High LowThe Strong High Low indicator calculates strong high and low pivots based on price action and the Average True Range (ATR). The calculation for both the high and low pivots involves analyzing recent candle behavior to identify significant levels where price reversal is likely. Specifically, it looks for consecutive bearish or bullish candles to determine whether a strong high or low has been established.
Indicator In Use :
For strong highs, the indicator checks if three consecutive candles are bearish, meaning their closing price is lower than their opening price. It further examines prior candles to confirm that they followed a specific pattern where a reversal could occur. If one of these earlier candles closed higher than it opened, the indicator assumes that this was a strong high, and it records either the high of the second or third candle from the pattern, depending on their relationship to each other.
Similarly, for strong lows, the indicator searches for three consecutive bullish candles where the close is higher than the open. The algorithm then reviews prior candles in the sequence to ensure that the market condition supports a potential low pivot. If an earlier candle closes lower than it opens, it marks this as a strong low. The final low point for the pivot is chosen based on a comparison between the second and third candles of the pattern.
Once the high and low pivots are determined, the indicator adjusts these levels using the ATR value. The ATR is added to the strong high pivot and subtracted from the strong low pivot to create slightly modified levels. This helps accommodate market volatility by widening the range of the high and low pivots, making the levels more reliable in reflecting potential reversal zones.
Finally, the strong high and low pivot lines are drawn on the chart, extending both to the left and right of the current price, based on the user-defined offset values. These lines give a visual cue of where key resistance and support levels exist, with labels marking the exact pivot values for easy reference.
Volume Adjusted CandlesTraditional candlestick charts are invaluable for visualizing price movements over time. However, they often lack an explicit representation of trading volume, a key factor that can significantly influence price action. Our Volume Adjusted Candles Indicator fills this gap by incorporating volume directly into the candlesticks, allowing for a more comprehensive analysis.
How Candles are Calculated
Each candlestick in this indicator is adjusted based on the volume of trades that occurred during its timeframe. The process involves segmenting the price range of the trading session into equal parts, known as 'bins'. Each bin represents a segment of the price range, and the volume of trades within each bin influences the final shape and position of the candlestick.
The Formula: The volume adjusted position of each part of the candle (high, low, and close) is calculated using a weighted average formula where each price point is weighted by the volume of trades at that price. This results in a volume-weighted price for each segment of the candle, making it easy to see where the most trading activity occurred and how it impacted price movements.
Gaussian Acceleration ArrayIndicators play a role in analyzing price action, trends, and potential reversals. Among many of these, velocity and acceleration have held a significant place due to their ability to provide insight into momentum and rate of change. This indicator takes the old calculation and tweaks it with gaussian smoothing and logarithmic function to ensure proper scaling.
A Brief on Velocity and Acceleration: The concept of velocity in trading refers to the speed at which price changes over time, while acceleration is the rate of change(ROC) of velocity. Early momentum indicators like the RSI and MACD laid foundation for understanding price velocity. However, as markets evolve so do we as technical analysts, we seek the most advanced tools.
The Acceleration/Deceleration Oscillator, introduced by Bill Williams, was one of the early attempts to measure acceleration. It helped gauge whether the market was gaining or losing momentum. Over time more specific tools like the "Awesome Oscillator"(AO) emerged, which has a set length on the datasets measured.
Gaussian Functions: Named after the mathematician Carl Friedrich Gauss, the Gaussian function describes a bell-shaped curve, often referred to as the "normal distribution." In trading these functions are applied to smooth data and reduce noise, focusing on underlying patterns.
The Gaussian Acceleration Array leverages this function to create a smoothed representation of market acceleration.
How does it work?
This indicator calculates acceleration based the highs and lows of each dataset
Once the weighted average for velocity is determined, its rate of change essentially becomes the acceleration
It then plots multiple lines with customizable variance from the primary selected length
Practical Tips:
The Gaussian Acceleration Array offers various customizable parameters, including the sample period, smoothing function, and array variance. Experiment with these settings to tailor it to preferred timeframes and styles.
The color-coded lines and background zones make it easier to interpret the indicator at a glance. The backgrounds indicate increasing or decreasing momentum simply as a visual aid while the lines state how the velocity average is performing. Combining this with other tools can signal shifts in market dynamics.
