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Average True Range (ATR)

Entropy-Based Adaptive SuperTrendOverview: Introducing the Entropy-Based Adaptive SuperTrend – a groundbreaking trading indicator designed to adapt dynamically to market conditions using market entropy. This enhanced SuperTrend indicator adjusts its sensitivity according to the level of chaos (or order) in price movements, providing more stable signals during volatile periods and more responsive signals when the market becomes orderly. Key Features: Entropy-Adaptive Mechanism: By incorporating an entropy measure, this indicator estimates the degree of unpredictability in the market. During high entropy periods (more chaotic), signals are made less sensitive, while during low entropy periods, the indicator reacts more quickly to price changes. Adaptive ATR Multiplier: Unlike traditional SuperTrend indicators that use a fixed ATR multiplier, this version calculates a dynamic ATR multiplier based on the entropy score, ensuring more flexibility and adaptability in setting stop levels. Visual Clarity: The indicator is overlayed on the price chart with customizable visual elements. The bullish and bearish trends are color-coded for ease of use, and optional entry signals ("L" for long and "S" for short) are plotted to clearly mark potential entry opportunities. Alerts for Key Opportunities : Never miss an opportunity with built-in alerts for buy and sell signals. Traders can easily configure these alerts to be notified instantly when market conditions trigger a new trend. How It Works: Entropy Calculation: The entropy of the price data is calculated over a user-defined period, giving an indication of the degree of randomness in the price movements. The result is then smoothed to reduce noise and create a meaningful trend indication. Dynamic ATR Adjustment: The ATR (Average True Range) multiplier, which controls the distance of the trailing stop, is adjusted based on the entropy score. This allows the SuperTrend line to widen in chaotic times, reducing false signals, while tightening in orderly times, allowing quicker trend captures. Parameters Explained: Entropy Settings: Control the sensitivity of entropy calculations, including the look-back period, number of bins for price distribution, and smoothing length. Adaptive Settings: Adjust how the indicator adapts to different levels of entropy, including the adaptation period and the filtering weight. SuperTrend Settings : Customize the ATR period and the dynamic multiplier range to fine-tune the trailing stops for your trading style. Visual Settings: Choose your preferred colors for bullish and bearish trends, and decide if you want the entry labels displayed directly on the chart. Use Cases: Swing Traders can utilize the indicator to capture trend reversals while filtering out the noise during high entropy periods. Intraday Traders can adapt the settings for shorter time frames to benefit from dynamic adjustments that reduce overtrading and false signals. Risk Management: The entropy-based adaptive feature provides an edge in risk management by reducing sensitivity during times of increased chaos, thus helping to limit unnecessary trades. How to Use It: Look for entry labels ("L" for long, "S" for short) to identify potential opportunities. Use the color-coded trendlines to determine market bias: greenish hue for bullish trends, reddish hue for bearish trends. Customize the input settings to align with your preferred market timeframe and risk profile. Alerts & Notifications: Built-in alerts notify you of significant trend changes. Simply enable these alerts to receive updates when a new long or short opportunity is detected, helping you stay ahead without needing to watch the screen constantly. Customization Tips: Longer Timeframes : Increase the Entropy Period to better capture macro trends in high timeframe charts. Higher Volatility Markets: Increase the ATR Max Multiplier to ensure stops are set farther away during high entropy. Lower Volatility Markets: Use a lower ATR Base Multiplier and tighter entropy thresholds to capture rapid price movements. Final Thoughts: The Entropy-Based Adaptive SuperTrend indicator merges traditional trend-following logic with an adaptive mechanism driven by market entropy, aiming to address the challenges of whipsaws and false signals common in conventional SuperTrend setups. This indicator offers an intelligent and flexible way to track market trends, suitable for both beginners and experienced trade
Pine Script™ indicator
by Kazo_
XAUUSD 10-Minute StrategyThis XAUUSD 10-Minute Strategy is designed for trading Gold vs. USD on a 10-minute timeframe. By combining multiple technical indicators (MACD, RSI, Bollinger Bands, and ATR), the strategy effectively captures both trend-following and reversal opportunities, with adaptive risk management for varying market volatility. This approach balances high-probability entries with robust volatility management, making it suitable for traders seeking to optimise entries during significant price movements and reversals. Key Components and Logic: MACD (12, 26, 9): Generates buy signals on MACD Line crossovers above the Signal Line and sell signals on crossovers below the Signal Line, helping to capture momentum shifts. RSI (14): Utilizes oversold (below 35) and overbought (above 65) levels as a secondary filter to validate entries and avoid overextended price zones. Bollinger Bands (20, 2): Uses upper and lower Bollinger Bands to identify potential overbought and oversold conditions, aiming to enter long trades near the lower band and short trades near the upper band. ATR-Based Stop Loss and Take Profit: Stop Loss and Take Profit levels are dynamically set as multiples of ATR (3x for stop loss, 5x for take profit), ensuring flexibility with market volatility to optimise exit points. Entry & Exit Conditions: Buy Entry: T riggered when any of the following conditions are met: MACD Line crosses above the Signal Line RSI is oversold Price drops below the lower Bollinger Band Sell Entry: Triggered when any of the following conditions are met: MACD Line crosses below the Signal Line RSI is overbought Price moves above the upper Bollinger Band Exit Strategy: Trades are closed based on opposing entry signals, with adaptive spread adjustments for realistic exit points. Backtesting Configuration & Results: Backtesting Period: July 21, 2024, to October 30, 2024 Symbol Info: XAUUSD, 10-minute timeframe, OANDA data source Backtesting Capital: Initial capital of $700, with each trade set to 10 contracts (equivalent to approximately 0.1 lots based on the broker’s contract size for gold). Users should confirm their broker's contract size for gold, as this may differ. This script uses 10 contracts for backtesting purposes, aligned with 0.1 lots on brokers offering a 100-contract specification. Key Backtesting Performance Metrics: Net Profit: $4,733.90 USD (676.27% increase) Total Closed Trades: 526 Win Rate: 53.99% Profit Factor: 1.44 (1.96 for Long trades, 1.14 for Short trades) Max Drawdown: $819.75 USD (56.33% of equity) Sharpe Ratio: 1.726 Average Trade: $9.00 USD (0.04% of equity per trade) This backtest reflects realistic conditions, with a spread adjustment of 38 points and no slippage or commission applied. The settings aim to simulate typical retail trading conditions. However, please adjust the initial capital, contract size, and other settings based on your account specifics for best results. Usage: This strategy is tuned specifically for XAUUSD on a 10-minute timeframe, ideal for both trend-following and reversal trades. The ATR-based stop loss and take profit levels adapt dynamically to market volatility, optimising entries and exits in varied conditions. To backtest this script accurately, ensure your broker’s contract specifications for gold align with the parameters used in this strategy.
Pine Script™ strategy
by smuk90
SuperATR 7-Step Profit - Strategy [presentTrading] Long time no see! █ Introduction and How It Is Different The SuperATR 7-Step Profit Strategy is a multi-layered trading approach that integrates adaptive Average True Range (ATR) calculations with momentum-based trend detection. What sets this strategy apart is its sophisticated 7-step take-profit mechanism, which combines four ATR-based exit levels and three fixed percentage levels. This hybrid approach allows traders to dynamically adjust to market volatility while systematically capturing profits in both long and short market positions. Traditional trading strategies often rely on static indicators or single-layered exit strategies, which may not adapt well to changing market conditions. The SuperATR 7-Step Profit Strategy addresses this limitation by: - Using Adaptive ATR: Enhances the standard ATR by making it responsive to current market momentum. - Incorporating Momentum-Based Trend Detection: Identifies stronger trends with higher probability of continuation. - Employing a Multi-Step Take-Profit System: Allows for gradual profit-taking at predetermined levels, optimizing returns while minimizing risk. BTCUSD 6hr Performance █ Strategy, How It Works: Detailed Explanation The strategy revolves around detecting strong market trends and capitalizing on them using an adaptive ATR and momentum indicators. Below is a detailed breakdown of each component of the strategy. 🔶 1. True Range Calculation with Enhanced Volatility Detection The True Range (TR) measures market volatility by considering the most significant price movements. The enhanced TR is calculated as: TR = Max Where: High and Low are the current bar's high and low prices. Previous Close is the closing price of the previous bar. Abs denotes the absolute value. Max selects the maximum value among the three calculations. 🔶 2. Momentum Factor Calculation To make the ATR adaptive, the strategy incorporates a Momentum Factor (MF), which adjusts the ATR based on recent price movements. Momentum = Close - Close Stdev_Close = Standard Deviation of Close over n periods Normalized_Momentum = Momentum / Stdev_Close (if Stdev_Close ≠ 0) Momentum_Factor = Abs(Normalized_Momentum) Where: Close is the current closing price. n is the momentum_period, a user-defined input (default is 7). Standard Deviation measures the dispersion of closing prices over n periods. Abs ensures the momentum factor is always positive. 🔶 3. Adaptive ATR Calculation The Adaptive ATR (AATR) adjusts the traditional ATR based on the Momentum Factor, making it more responsive during volatile periods and smoother during consolidation. Short_ATR = SMA(True Range, short_period) Long_ATR = SMA(True Range, long_period) Adaptive_ATR = / Where: SMA is the Simple Moving Average. short_period and long_period are user-defined inputs (defaults are 3 and 7, respectively). 🔶 4. Trend Strength Calculation The strategy quantifies the strength of the trend to filter out weak signals. Price_Change = Close - Close ATR_Multiple = Price_Change / Adaptive_ATR (if Adaptive_ATR ≠ 0) Trend_Strength = SMA(ATR_Multiple, n) 🔶 5. Trend Signal Determination If (Short_MA > Long_MA) AND (Trend_Strength > Trend_Strength_Threshold): Trend_Signal = 1 (Strong Uptrend) Elif (Short_MA < Long_MA) AND (Trend_Strength < -Trend_Strength_Threshold): Trend_Signal = -1 (Strong Downtrend) Else: Trend_Signal = 0 (No Clear Trend) 🔶 6. Trend Confirmation with Price Action Adaptive_ATR_SMA = SMA(Adaptive_ATR, atr_sma_period) If (Trend_Signal == 1) AND (Close > Short_MA) AND (Adaptive_ATR > Adaptive_ATR_SMA): Trend_Confirmed = True Elif (Trend_Signal == -1) AND (Close < Short_MA) AND (Adaptive_ATR > Adaptive_ATR_SMA): Trend_Confirmed = True Else: Trend_Confirmed = False Local Performance 🔶 7. Multi-Step Take-Profit Mechanism The strategy employs a 7-step take-profit system █ Trade Direction The SuperATR 7-Step Profit Strategy is designed to work in both long and short market conditions. By identifying strong uptrends and downtrends, it allows traders to capitalize on price movements in either direction. Long Trades: Initiated when the market shows strong upward momentum and the trend is confirmed. Short Trades: Initiated when the market exhibits strong downward momentum and the trend is confirmed. █ Usage To implement the SuperATR 7-Step Profit Strategy: 1. Configure the Strategy Parameters: - Adjust the short_period, long_period, and momentum_period to match the desired sensitivity. - Set the trend_strength_threshold to control how strong a trend must be before acting. 2. Set Up the Multi-Step Take-Profit Levels: - Define ATR multipliers and fixed percentage levels according to risk tolerance and profit goals. - Specify the percentage of the position to close at each level. 3. Apply the Strategy to a Chart: - Use the strategy on instruments and timeframes where it has been tested and optimized. - Monitor the positions and adjust parameters as needed based on performance. 4. Backtest and Optimize: - Utilize TradingView's backtesting features to evaluate historical performance. - Adjust the default settings to optimize for different market conditions. █ Default Settings Understanding default settings is crucial for optimal performance. Short Period (3): Affects the responsiveness of the short-term MA. Effect: Lower values increase sensitivity but may produce more false signals. Long Period (7): Determines the trend baseline. Effect: Higher values reduce noise but may delay signals. Momentum Period (7): Influences adaptive ATR and trend strength. Effect: Shorter periods react quicker to price changes. Trend Strength Threshold (0.5): Filters out weaker trends. Effect: Higher thresholds yield fewer but stronger signals. ATR Multipliers: Set distances for ATR-based exits. Effect: Larger multipliers aim for bigger moves but may reduce hit rate. Fixed TP Levels (%): Control profit-taking on smaller moves. Effect: Adjusting these levels affects how quickly profits are realized. Exit Percentages: Determine how much of the position is closed at each TP level. Effect: Higher percentages reduce exposure faster, affecting risk and reward. Adjusting these variables allows you to tailor the strategy to different market conditions and personal risk preferences. By integrating adaptive indicators and a multi-tiered exit strategy, the SuperATR 7-Step Profit Strategy offers a versatile tool for traders seeking to navigate varying market conditions effectively. Understanding and adjusting the key parameters enables traders to harness the full potential of this strategy.
Pine Script™ strategy
by PresentTrading
4
MACD Cloud with Moving Average and ATR BandsThe algorithm implements a technical analysis indicator that combines the MACD Cloud, Moving Averages (MA), and volatility bands (ATR) to provide signals on market trends and potential reversal points. It is divided into several sections: 🎨 Color Bars: Activated based on user input. Controls bar color display according to price relative to ATR levels and moving average (MA). Logic: ⚫ Black: Potential bearish reversal (price above the upper ATR band). 🔵 Blue: Potential bullish reversal (price below the lower ATR band). o 🟢 Green: Bullish trend (price between the MA and upper ATR band). o 🔴 Red: Bearish trend (price between the lower ATR band and MA). o 📊 MACD Bars: Description: The MACD Bars section is activated by default and can be modified based on user input. 🔴 Red: Indicates a bearish trend, shown when the MACD line is below the Signal line (Signal line is a moving average of MACD). 🔵 Blue: Indicates a bullish trend, shown when the MACD line is above the Signal line. Matching colors between MACD Bars and MACD Cloud visually confirms trend direction. MACD Cloud Logic: The MACD Cloud is based on Moving Average Convergence Divergence (MACD), a momentum indicator showing the relationship between two moving averages of price. MACD and Signal Lines: The cloud visualizes the MACD line relative to the Signal line. If the MACD line is above the Signal line, it indicates a potential bullish trend, while below it suggests a potential bearish trend. ☁️ MA Cloud: The MA Cloud uses three moving averages to analyze price direction: Moving Average Relationship: Three MAs of different periods are plotted. The cloud turns green when the shorter MA is above the longer MA, indicating an uptrend, and red when below, suggesting a downtrend. Trend Visualization: This graphical representation shows the trend direction. 📉 ATR Bands: The ATR bands calculate overbought and oversold limits using a weighted moving average (WMA) and ATR. Center (matr): Shows general trend; prices above suggest an uptrend, while below indicate a downtrend. Up ATR 1: Marks the first overbought level, suggesting a potential bearish reversal if the price moves above this band. Down ATR 1: Marks the first oversold level, suggesting a possible bullish reversal if the price moves below this band. Up ATR 2: Extends the overbought range to an extreme, reinforcing the possibility of a bearish reversal at this level. Down ATR 2: Extends the oversold range to an extreme, indicating a stronger bullish reversal possibility if price reaches here. Español: El algoritmo implementa un indicador de análisis técnico que combina la nube MACD, promedios móviles (MA) y bandas de volatilidad (ATR) para proporcionar señales sobre tendencias del mercado y posibles puntos de reversión. Se divide en varias secciones: 🎨 Barras de Color: - Activado según la entrada del usuario. - Controla la visualización del color de las barras según el precio en relación con los niveles de ATR y el promedio móvil (MA). - **Lógica:** - ⚫ **Negro**: Reversión bajista potencial (precio por encima de la banda superior ATR). - 🔵 **Azul**: Reversión alcista potencial (precio por debajo de la banda inferior ATR). - 🟢 **Verde**: Tendencia alcista (precio entre el MA y la banda superior ATR). - 🔴 **Rojo**: Tendencia bajista (precio entre la banda inferior ATR y el MA). ### 📊 Barras MACD: - **Descripción**: - La sección de barras MACD se activa por defecto y puede modificarse según la entrada del usuario. - 🔴 **Rojo**: Indica una tendencia bajista, cuando la línea MACD está por debajo de la línea de señal (la línea de señal es una media móvil de la MACD). - 🔵 **Azul**: Indica una tendencia alcista, cuando la línea MACD está por encima de la línea de señal. - La coincidencia de colores entre las barras MACD y la nube MACD confirma visualmente la dirección de la tendencia. ### 🌥️ Nube MACD: - **Lógica de la Nube MACD**: Basada en el indicador de convergencia-divergencia de medias móviles (MACD), que muestra la relación entre dos medias móviles del precio. - **Líneas MACD y de Señal**: La nube visualiza la relación entre la línea MACD y la línea de señal. Si la línea MACD está por encima de la de señal, indica una tendencia alcista potencial; si está por debajo, sugiere una tendencia bajista. ### ☁️ Nube MA: - **Relación entre Medias Móviles**: Se trazan tres medias móviles de diferentes períodos. La nube se vuelve verde cuando la media más corta está por encima de la más larga, indicando una tendencia alcista, y roja cuando está por debajo, sugiriendo una tendencia bajista. - **Visualización de Tendencias**: Proporciona una representación gráfica de la dirección de la tendencia. ### 📉 Bandas ATR: - Las bandas ATR calculan límites de sobrecompra y sobreventa usando una media ponderada y el ATR. - **Centro (matr)**: Muestra la tendencia general; precios por encima indican tendencia alcista y debajo, bajista. - **Up ATR 1**: Marca el primer nivel de sobrecompra, sugiriendo una reversión bajista potencial si el precio sube por encima de esta banda. - **Down ATR 1**: Marca el primer nivel de sobreventa, sugiriendo una reversión alcista potencial si el precio baja por debajo de esta banda. - **Up ATR 2**: Amplía el rango de sobrecompra a un nivel extremo, reforzando la posibilidad de reversión bajista. - **Down ATR 2**: Extiende el rango de sobreventa a un nivel extremo, sugiriendo una reversión alcista más fuerte si el precio alcanza esta banda.
Pine Script™ indicator
by PINE_LABS
5
Atr Target TP & Protecion Zone [Pinescriptlabs]This indicator provides an adaptive trailing stop system with dynamic price targets and protection zones, ideal for position management. Main Features: 🚦 ADAPTIVE TRAILING STOP: Automatically adjusts based on volatility (ATR) and volume Two modes: "Modified" and "UnModified" for true range calculation Displayed as a line with colored background (green for longs, red for shorts) 🎯 TARGET ZONES (T1 & T2): Calculates two target zones (T1 and T2) based on: Market strength (combination of RSI, volume, MFI, ADX, MACD) Current volatility (ATR) Distance from current price Visualized with blue boxes (T1) and purple boxes (T2) 🛡️ PROTECTION ZONE: Automatically activates in sideways markets Provides an additional buffer to the trailing stop Helps avoid premature exits in volatile markets 📊 INFORMATION PANELS: Top Right Panel displays: Current trend direction Target status (T1 & T2) Market strength Current ATR RSI level Bottom Right Panel displays: Trailing status (WIDE/NORMAL) Volume impact Directional strength Protection zone status Español: Este indicador proporciona un sistema de trailing stop adaptativo con objetivos de precio dinámicos y zonas de protección, ideal para la gestión de posiciones. **Características Principales**: 🚦 **TRAILING STOP ADAPTATIVO**: - Se ajusta automáticamente según la volatilidad (ATR) y el volumen - Dos modos: "Modified" y "UnModified" para el cálculo del rango verdadero - Se visualiza como una línea con fondo coloreado (verde para largos, rojo para cortos) 🎯 **ZONAS OBJETIVO (T1 y T2)**: - Calcula dos zonas objetivo (T1 y T2) basadas en: - Fuerza del mercado (combinación de RSI, volumen, MFI, ADX, MACD) - Volatilidad actual (ATR) - Distancia al precio actual - Visualización mediante cajas azules (T1) y moradas (T2) 🛡️ **ZONA DE PROTECCIÓN**: - Se activa automáticamente en mercados laterales - Proporciona un buffer adicional al trailing stop - Ayuda a evitar salidas prematuras en mercados volátiles 📊 **PANELES INFORMATIVOS**: *Panel Superior Derecho* muestra: - Dirección de la tendencia actual - Estado de los objetivos (T1 y T2) - Fuerza del mercado - ATR actual - Nivel de RSI *Panel Inferior Derecho* muestra: - Estado del trailing (WIDE/NORMAL) - Impacto del volumen - Fuerza direccional - Estado de la zona de protección
Pine Script™ indicator
by PINE_LABS
4
KaracaticaKaracatica Indicator - Dynamic Trend Following. The Karacatica Indicator is designed for traders looking for a comprehensive approach to trend trading by combining directional movements and Average True Range (ATR). Key Features: ATR-Based Trend Detection: The indicator uses Average True Range (ATR) to measure market volatility and integrates with price action to capture strong trend movements. Directional Indicators (DI's): Calculates DI's (Positive Directional Index Di+ and Negative Directional Index Di-) ​​to compare buying and selling pressure. This allows for more accurate trend identification, highlighting when buyers or sellers dominate. Signal Generation: Buy Signal: Generated when price action is bullish (close is above the previous period's close) and DI+ exceeds DI-, indicating that buyers are in control. Sell ​​Signal: Triggered when price action is bearish (close is below the previous period’s close) and DI- exceeds DI+, showing that sellers dominate the market. Visual Signals: Green triangle (▲) indicating a buy opportunity, plotted below the bar. Fuchsia triangle (▼) signaling a sell opportunity, plotted above the bar. Customizable Inputs: The indicator allows users to adjust the ATR period, DI length, and ADX smoothing parameters, giving it the flexibility to suit different trading styles and timeframes. Why should you use it? This indicator simplifies the process of analyzing the combination market direction and trend strength. It is especially useful for traders who like strong directional movements and want clear, visually represented entry signals. The Karacatica Indicator can generate good buy or sell signals in trading and can be used on multiple assets and timeframes, making it adaptable to different market conditions. Settings Overview: ATR Period: Sets the period for calculating ATR, used to determine market volatility. DI Length: The length of the lookback period for DI+ and DI- calculations. ADX Smoothing: Smooths the ADX (Average Directional Index) to reduce noise. Feel free to experiment with this indicator, share feedback, and adapt it to your trading strategy. Good trading!
Pine Script™ indicator
by SonicTheHedgehog
Relative VolatilityRelative Volatility is a technical indicator designed to assess changes in market volatility by comparing fast and slow Average True Range (ATR) values. It operates by subtracting a slower ATR (e.g., 50-period ATR) from a faster ATR (e.g., 20-period ATR) and visualizing the result as a histogram. This enables traders to determine whether volatility is increasing or decreasing over time. This indicator can help traders recognize volatility trends, which can inform decisions related to trade entries, exits, and risk management. Interpreting Volatility Changes Increasing Volatility: When the histogram is above zero, it indicates that the fast ATR is greater than the slow ATR, signifying an increase in short-term volatility compared to the long-term average. This may suggest heightened market activity and potential trading opportunities. Decreasing Volatility: When the histogram is below zero, it shows that the fast ATR is less than the slow ATR, indicating a decrease in short-term volatility relative to the long-term average. This may suggest consolidating markets or reduced trading activity. Relative Volatility assists traders in monitoring and analyzing changes in market volatility, providing insights that can enhance trading strategies and decision-making processes.
Pine Script™ indicator
by UniqueCharts
Chandelier Exit Pro w/ExtensionsChandelier Exit Pro w/Extensions The Chandelier Exit Pro w/Extensions indicator is designed to assist traders in managing risk and identifying trend reversals. The strategy is based on the Chandelier Exit concept, originally created by Charles Le Beau. It uses the Average True Range (ATR) to calculate dynamic stop levels that adjust based on market volatility. This script not only implements the standard Chandelier Exit, but also introduces extension levels and alerts to enhance decision-making. Key Features: ➡️Dynamic Stop Levels: The indicator calculates stop levels for both long and short positions based on an ATR multiple. This allows traders to determine exit points by monitoring when the price crosses above or below these levels. These levels adapt in real-time based on price volatility, making them a versatile tool for trend-following strategies. ➡️Extension Levels: In addition to the primary stop levels, the script includes extension levels for more advanced stop-loss management. Traders can view active and extension levels separately, providing more flexibility in their exit strategies. ➡️Labels and Visual Cues: The indicator provides dynamic labels that automatically update and follow the plotted stop levels. Labels include the ATR multiplier value (e.g., "2.5" or "2.5ext"), clearly showing the significance of each level. When price crosses below or above a level, the corresponding label is highlighted, aiding traders in quickly identifying the most relevant stop level. ➡️Bar Confirmation and Alerts: The script includes an "await bar confirmation" option to ensure that the stop levels and alerts only trigger after the bar has closed. Alerts are customizable and will notify traders when price crosses critical levels, helping to make timely decisions without the need to constantly monitor charts. ➡️Multiple ATR Levels for Enhanced Precision: The indicator supports up to four different ATR levels, each with customizable multipliers. This allows traders to set different thresholds for exits based on varying degrees of volatility. For example, Level 1 (2.5x ATR) might represent a tighter stop, while Level 4 (10x ATR) could serve as a wider stop for long-term positions. ➡️Calc_bars_count: Improves efficiency of the indicator by reducing the on-chart calculations in to the past. This input can be found at the bottom of the INPUTS tab. How it Helps Traders: 💥Trend Identification: By using the Chandelier Exit levels, traders can identify when the trend is likely to reverse. When the price crosses below the stop level in a long trade or above the stop level in a short trade, it signals a potential exit point. 💥Volatility-based Adjustments: Unlike static stop-loss methods, the ATR-based stop levels dynamically adjust based on the market’s volatility. This means tighter stops during low volatility periods and wider stops during high volatility periods, reducing the chance of being stopped out prematurely. 💥Risk Management: The dynamic stop levels and extension levels provide a structured way to manage risk. Traders can set tighter stops for short-term trades and wider stops for longer-term trades. The script's visual labels make it easy to track these levels in real-time. 💥Automation with Alerts: The built-in alert system ensures that traders are notified when key levels are crossed. This helps to avoid emotional decision-making and allows for better execution of trading strategies. Confluence and Price Fluidity: One of the powerful ways to enhance the effectiveness of the Chandelier Exit indicator is by using it in conjunction with other technical analysis tools to create confluence. Confluence occurs when multiple indicators or price action signals align, providing stronger confirmation for a trade decision. For example: 🎯Support and Resistance Levels: Traders can use the Chandelier Exit levels in combination with key support and resistance zones. If the price is nearing a support level and the Chandelier Exit signals a bullish reversal, this alignment strengthens the case for entering a long position. 🎯Moving Averages: When the Chandelier Exit signals a trend reversal and this is confirmed by a crossover in moving averages (such as a 50-day and 200-day moving average), traders gain additional confidence in the trade direction. 🎯Momentum Indicators: Traders can also look for momentum indicators like RSI or MACD to confirm the strength of a trend or potential reversal. For instance, if the Chandelier Exit triggers a short signal and the RSI also shows overbought conditions, this could provide stronger confirmation to exit a long trade or enter a short position. 🎯Candlestick Patterns: Price fluidity can be monitored using candlestick formations. For example, a bearish engulfing pattern near a Chandelier Exit resistance level offers confluence, adding confidence to the signal to close or short the trade. By combining the Chandelier Exit with other tools, traders ensure that they are not relying on a single indicator. This layered approach can reduce the likelihood of false signals and improve overall trading accuracy. Practical Use Case: Imagine a trader enters a long position, and the price moves favorably. Using the Chandelier Exit, the trader sets the initial stop level at 2.5x ATR below the highest close. As the price continues to rise, the stop level follows the price, locking in profits. If the market suddenly turns, the price crossing below the stop level signals an exit, helping the trader preserve gains. With extension levels, the trader can further refine exits, adjusting based on their risk tolerance and market conditions. Good luck and I hope that you can find a place in your tool bag to use this dynamic indicator 🙏
Pine Script™ indicator
by MYNAMEISBRANDON
2
Options Series - Supertrend, HalfTrend, Ichimoku Cloud and P_SAR➤ Supertrend: ➤ HalfTrend: ➤ Ichimoku Cloud: ➤ Parabolic SAR: ⭐ Overview and How It Works: This script combines multiple popular technical indicators—Supertrend, HalfTrend, Ichimoku Cloud, and Parabolic SAR—into a single, cohesive tool for analyzing price trends and reversals. Designed for traders who prefer multi-layered confirmation, it displays non-overlay signals in a candlestick format, helping users make sense of intricate market dynamics. It also includes a "Master Candle" condition, which aggregates the signals from all indicators, providing a powerful snapshot of market sentiment. References for study, Supertrend and HalfTrend and Ichimoku Cloud and Parabolic SAR ⭐ Key Features and Functionality: The script integrates four indicators and visually represents them in a non-overlay fashion, meaning that each indicator's signal appears on separate candlestick layers. It uses color coding to differentiate between bullish and bearish signals. The Master Candle is a unique feature that aggregates the signals from all indicators to show the overall sentiment. Supertrend: It uses ATR and a multiplier factor to create a trailing stop, identifying bullish and bearish trends. HalfTrend: It analyzes market volatility that provides buy and sell signals based on volatility channels and historical highs and lows. Ichimoku Cloud: It leverages historical highs and lows to form the conversion and baseline, which are compared to assess market strength. Parabolic SAR: A stop-and-reverse system that highlights potential reversals. It is based on time and price, offering traders potential reversal points. Master Candle: It computes a score based on the confluence of all four indicators, adding another layer of confirmation. 🎨 Visualizations and User Experience: The script's user interface is highly visual, with color-coded candlesticks plotted across multiple layers. Each indicator has its own color coding for bullish and bearish signals, ensuring clarity: ➤ Green for bullish signals. ➤ Red for bearish signals. ➤ Each candlestick layer represents a different indicator (e.g., Supertrend, HalfTrend, etc.), making it easy for the trader to isolate and interpret signals. ➤ The "Master Candle" provides an overarching view of the market by displaying a consolidated signal, which can reduce confusion from mixed indicator signals. ⭐ Settings and Customization: The script is highly customizable, allowing users to adjust the settings for each indicator. Key customizable parameters include: • Supertrend ATR Period and Factor • HalfTrend Amplitude and Channel Deviation • Ichimoku Conversion, Base, and Lagging Span Periods • Parabolic SAR Start, Increment, and Maximum value Additionally, users can toggle the visibility of each indicator and customize the look of the plot to suit their preferences. ⭐ Uniqueness of the Concept: No repaints. This is the advanced representation and the combination of multiple indicators into a single script, along with a powerful "Master Candle" that aggregates them, makes this tool unique. Most scripts provide isolated indicator signals, while this one brings together four powerful indicators and visually simplifies the analysis. The non-overlay style and color-coded candlesticks offer traders an easy-to-understand, actionable visual cue, which stands out from traditional indicator overlays. 🚀 Conclusion: This script is a comprehensive, multi-indicator trading tool suitable for traders looking for reliable trend-following and reversal detection. Its ability to provide an aggregated "Master Candle" signal reduces noise and aids in better decision-making. Customization options allow users to tailor it to their trading style, while its clear visualizations provide an excellent user experience.
Pine Script™ indicator
by Options_Series
7
ATR Movement Percentage from Daily (Bal)Script Description: ATR Movement Percentage from Daily The script titled "ATR Movement Percentage from Daily" is designed to help traders analyze the price movement of an asset in relation to its daily volatility, as represented by the Average True Range (ATR). Here's a breakdown of how the script works: Key Features of the Script: ATR Calculation: The script allows the user to input the length of the ATR calculation (default is 14 periods). It retrieves the daily ATR value using the request.security function, ensuring that the ATR is based on the daily timeframe, regardless of the current chart's timeframe. Price Movement Calculation: It calculates the opening price of the current day using request.security to ensure it is aligned with the daily timeframe. It retrieves the current closing price and computes the price change from the opening price. Movement Percentage: The percentage of price movement relative to the daily ATR is calculated. This value helps traders understand how significant the current price movement is compared to the expected volatility for the day. Direction of Movement: The script determines the direction of the price movement (upward or downward) based on whether the price change is positive or negative. Dynamic Label Display: A label is created and updated to show the movement percentage and direction on the chart. If the price movement is upward, the label is displayed in green; if downward, it is shown in red. The label position updates with each new bar, keeping it relevant to the current price action. Plotting Daily ATR: The daily ATR value is plotted on the chart as a blue line, providing a visual reference for traders to see the volatility levels in relation to price movements. Conclusion: This script is particularly useful for traders who want to assess market conditions based on volatility. By understanding how much the price has moved in relation to the daily ATR, traders can make informed decisions about entry and exit points, and adjust their risk management strategies accordingly. The dynamic labeling feature enhances the usability of the script, allowing for quick visual assessments of market behavior.
Pine Script™ indicator
by OxMrNobody
Simple RSI stock Strategy [1D] The "Simple RSI Stock Strategy " is designed to long-term traders. Strategy uses a daily time frame to capitalize on signals generated by the Relative Strength Index (RSI) and the Simple Moving Average (SMA). This strategy is suitable for low-leverage trading environments and focuses on identifying potential buy opportunities when the market is oversold, while incorporating strong risk management with both dynamic and static Stop Loss mechanisms. This strategy is recommended for use with a relatively small amount of capital and is best applied by diversifying across multiple stocks in a strong uptrend, particularly in the S&P 500 stock market. It is specifically designed for equities, and may not perform well in other markets such as commodities, forex, or cryptocurrencies, where different market dynamics and volatility patterns apply. Indicators Used in the Strategy: 1. RSI (Relative Strength Index): - The RSI is a momentum oscillator used to identify overbought and oversold conditions in the market. - This strategy enters long positions when the RSI drops below the oversold level (default: 30), indicating a potential buying opportunity. - It focuses on oversold conditions but uses a filter (SMA 200) to ensure trades are only made in the context of an overall uptrend. 2. SMA 200 (Simple Moving Average): - The 200-period SMA serves as a trend filter, ensuring that trades are only executed when the price is above the SMA, signaling a bullish market. - This filter helps to avoid entering trades in a downtrend, thereby reducing the risk of holding positions in a declining market. 3. ATR (Average True Range): - The ATR is used to measure market volatility and is instrumental in setting the Stop Loss. - By multiplying the ATR value by a custom multiplier (default: 1.5), the strategy dynamically adjusts the Stop Loss level based on market volatility, allowing for flexibility in risk management. How the Strategy Works: Entry Signals: The strategy opens long positions when RSI indicates that the market is oversold (below 30), and the price is above the 200-period SMA. This ensures that the strategy buys into potential market bottoms within the context of a long-term uptrend. Take Profit Levels: The strategy defines three distinct Take Profit (TP) levels: TP 1: A 5% from the entry price. TP 2: A 10% from the entry price. TP 3: A 15% from the entry price. As each TP level is reached, the strategy closes portions of the position to secure profits: 33% of the position is closed at TP 1, 66% at TP 2, and 100% at TP 3. Visualizing Target Points: The strategy provides visual feedback by plotting plotshapes at each Take Profit level (TP 1, TP 2, TP 3). This allows traders to easily see the target profit levels on the chart, making it easier to monitor and manage positions as they approach key profit-taking areas. Stop Loss Mechanism: The strategy uses a dual Stop Loss system to effectively manage risk: ATR Trailing Stop: This dynamic Stop Loss adjusts based on the ATR value and trails the price as the position moves in the trader’s favor. If a price reversal occurs and the market begins to trend downward, the trailing stop closes the position, locking in gains or minimizing losses. Basic Stop Loss: Additionally, a fixed Stop Loss is set at 25%, limiting potential losses. This basic Stop Loss serves as a safeguard, automatically closing the position if the price drops 25% from the entry point. This higher Stop Loss is designed specifically for low-leverage trading, allowing more room for market fluctuations without prematurely closing positions. to determine the level of stop loss and target point I used a piece of code by RafaelZioni, here is the script from which a piece of code was taken Together, these mechanisms ensure that the strategy dynamically manages risk while offering robust protection against significant losses in case of sharp market downturns. The position size has been estimated by me at 75% of the total capital. For optimal capital allocation, a recommended value based on the Kelly Criterion, which is calculated to be 59.13% of the total capital per trade, can also be considered. Enjoy !
Pine Script™ strategy
by wielkieef
2
Gold IBH/IBL with IBM, Overnight Levels, OVM, and ONVPOCThe Initial Balance (IB) indicator for gold trading is a valuable tool for identifying key price levels and potential trade setups. Here's an overview of how it works: Initial Balance Calculation The Initial Balance for gold is calculated from 8:20 AM to 9:20 AM EST, coinciding with the COMEX open. This one-hour period establishes crucial reference points for the trading day. Key Levels The indicator displays several important price levels: IB High: The highest price reached during the Initial Balance period IB Low: The lowest price reached during the Initial Balance period IB Midpoint: The average of the IB High and IB Low These levels often serve as significant support and resistance areas, with many traders placing stop-losses around them. Overnight Levels In addition to the IB levels, the indicator shows overnight price action: ONH: Overnight High ONL: Overnight Low ONM: Overnight Midpoint Overnight VWAP: Volume Weighted Average Price from the overnight session These overnight levels have a high probability of being tested during the COMEX trading session, making them valuable reference points for traders. Trading Applications Traders can use the IB and overnight levels for various purposes: Setting profit targets Identifying potential trade entry points Managing risk by placing stop-losses at key levels Gauging overall market sentiment and volatility The levels established during both the Initial Balance and overnight sessions are likely to be touched during the COMEX trading session. This insight allows traders to make more informed decisions and enhances their trading strategies. If you have more questions about the trading strategy, please DM me, and I can explain further. I also have probabilities of all these levels being broken during the COMEX trading hours, which gives us confidence to hold our trades to targets. Understanding and utilizing these levels can provide traders with a competitive edge in gold trading, helping them make more informed decisions based on early market dynamics and overnight price action.
Pine Script™ indicator
by Scatters
ATR Band, Stop loss , Take Profit Lines, and Pip Distance# ATR Band, Take Profit Lines, and Pip Distance Indicator This indicator helps traders identify potential stop loss and take profit levels using Average True Range (ATR) bands and custom multipliers. It provides a visual representation of these levels and calculates the pip distance to stop loss, aiding in risk management and trade planning. ## Key Features: - ATR-based upper and lower bands for potential stop loss levels - Two take profit levels above and below the ATR bands - Customizable ATR period and multipliers for bands and take profit levels - Pip distance calculation to stop loss levels - Adjustable colors for all elements ## How to Use: 1. The ATR bands (blue and red lines) suggest potential stop loss levels. 2. Take profit levels are shown as green lines above and below the ATR bands. 3. Labels display the pip distance from the current or last close to the stop loss levels. ## Customization: - Adjust the ATR period and multipliers to fit your trading style - Customize colors for better visibility on your chart - Choose between current candle or last close for pip distance calculation Remember, this indicator is for informational purposes only. Always manage your risk carefully and consider using it in conjunction with other analysis tools and your trading strategy. Good luck with your trading!
Pine Script™ indicator
by GoldForexDoc
Crypto Volatility Bitcoin Correlation Strategy Description: The Crypto Volatility Bitcoin Correlation Strategy is designed to leverage market volatility specifically in Bitcoin (BTC) using a combination of volatility indicators and trend-following techniques. This strategy utilizes the VIXFix (a volatility indicator adapted for crypto markets) and the BVOL7D (Bitcoin 7-Day Volatility Index from BitMEX) to identify periods of high volatility, while confirming trends with the Exponential Moving Average (EMA). These components work together to offer a comprehensive system that traders can use to enter positions when volatility and trends are aligned in their favor. Key Features: VIXFix (Volatility Index for Crypto Markets): This indicator measures the highest price of Bitcoin over a set period and compares it with the current low price to gauge market volatility. A rise in VIXFix indicates increasing market volatility, signaling that large price movements could occur. BVOL7D (Bitcoin 7-Day Volatility Index): This volatility index, provided by BitMEX, measures the volatility of Bitcoin over the past 7 days. It helps traders monitor the recent volatility trend in the market, particularly useful when making short-term trading decisions. Exponential Moving Average (EMA): The 50-period EMA acts as a trend indicator. When the price is above the EMA, it suggests the market is in an uptrend, and when the price is below the EMA, it suggests a downtrend. How It Works: Long Entry: A long position is triggered when both the VIXFix and BVOL7D indicators are rising, signaling increased volatility, and the price is above the 50-period EMA, confirming that the market is trending upward. Exit: The strategy exits the position when the price crosses below the 50-period EMA, which signals a potential weakening of the uptrend and a decrease in volatility. This strategy ensures that traders only enter positions when the volatility aligns with a clear trend, minimizing the risk of entering trades during periods of market uncertainty. Testing and Timeframe: This strategy has been tested on Bitcoin using the daily timeframe, which provides a longer-term perspective on market trends and volatility. However, users can adjust the timeframe according to their trading preferences. It is crucial to note that this strategy does not include comprehensive risk management, aside from the exit condition when the price crosses below the EMA. Users are strongly advised to implement their own risk management techniques, such as setting appropriate stop-loss levels, to safeguard their positions during high volatility periods. Utility: The Crypto Volatility Bitcoin Correlation Strategy is particularly well-suited for traders who aim to capitalize on the high volatility often seen in the Bitcoin market. By combining volatility measurements (VIXFix and BVOL7D) with a trend-following mechanism (EMA), this strategy helps identify optimal moments for entering and exiting trades. This approach ensures that traders participate in potentially profitable market moves while minimizing exposure during times of uncertainty. Use Cases: Volatility-Based Entries: Traders looking to take advantage of market volatility spikes will find this strategy useful for timing entry points during market swings. Trend Confirmation: By using the EMA as a confirmation tool, traders can avoid entering trades that go against the trend, which can result in significant losses during volatile market conditions. Risk Management: While the strategy exits when price falls below the EMA, it is important to recognize that this is not a full risk management system. Traders should use caution and integrate additional risk measures, such as stop-losses and position sizing, to better manage potential losses. How to Use: Step 1: Monitor the VIXFix and BVOL7D indicators. When both are rising and the Bitcoin price is above the EMA, the strategy will trigger a long entry, indicating that the market is experiencing increased volatility with a confirmed uptrend. Step 2: Exit the position when the price drops below the 50-period EMA, signaling that the trend may be reversing or weakening, reducing the likelihood of continued upward price movement. This strategy is open-source and is intended to help traders navigate volatile market conditions, particularly in Bitcoin, using proven indicators for volatility and trend confirmation. Risk Disclaimer: This strategy has been tested on the daily timeframe of Bitcoin, but users should be aware that it does not include built-in risk management except for the below-EMA exit condition. Users should be extremely cautious when using this strategy and are encouraged to implement their own risk management, such as using stop-losses, position sizing, and setting appropriate limits. Trading involves significant risk, and this strategy does not guarantee profits or prevent losses. Past performance is not indicative of future results. Always test any strategy in a demo environment before applying it to live markets.
Pine Script™ strategy
by exlux
4
ATR Bands with ATR Cross + InfoTableOverview This Pine Script™ indicator is designed to enhance traders' ability to analyze market volatility, trend direction, and position sizing directly on their TradingView charts. By plotting Average True Range (ATR) bands anchored at the OHLC4 price, displaying crossover labels, and providing a comprehensive information table, this tool offers a multifaceted approach to technical analysis. Key Features: ATR Bands Anchored at OHLC4: Visual representation of short-term and long-term volatility bands centered around the average price. OHLC4 Dotted Line: A dotted line representing the average of Open, High, Low, and Close prices. ATR Cross Labels: Visual cues indicating when short-term volatility exceeds long-term volatility and vice versa. Information Table: Displays real-time data on market volatility, calculated position size based on risk parameters, and trend direction relative to the 20-period Smoothed Moving Average (SMMA). Purpose The primary purpose of this indicator is to: Assess Market Volatility: By comparing short-term and long-term ATR values, traders can gauge the current volatility environment. Determine Optimal Position Sizing: A calculated position size based on user-defined risk parameters helps in effective risk management. Identify Trend Direction: Comparing the current price to the 20-period SMMA assists in determining the prevailing market trend. Enhance Decision-Making: Visual cues and real-time data enable traders to make informed trading decisions with greater confidence. How It Works 1. ATR Bands Anchored at OHLC4 Average True Range (ATR) Calculations Short-Term ATR (SA): Calculated over a 9-period using ta.atr(9). Long-Term ATR (LA): Calculated over a 21-period using ta.atr(21). Plotting the Bands OHLC4 Dotted Line: Plotted using small circles to simulate a dotted line due to Pine Script limitations. ATR(9) Bands: Plotted in blue with semi-transparent shading. ATR(21) Bands: Plotted in orange with semi-transparent shading. Overlap: Bands can overlap, providing visual insights into changes in volatility. 2. ATR Cross Labels Crossover Detection: SA > LA: Indicates increasing short-term volatility. Detected using ta.crossover(SA, LA). A green upward label "SA>LA" is plotted below the bar. SA < LA: Indicates decreasing short-term volatility. Detected using ta.crossunder(SA, LA). A red downward label "SA LA, then the market is considered volatile. Display: Shows "Yes" or "No" based on the comparison. b. Position Size Calculation Risk Total Amount: User-defined input representing the total capital at risk. Risk per 1 Stock: User-defined input representing the risk associated with one unit of the asset. Purpose: Helps traders determine the appropriate position size based on their risk tolerance and current market volatility. c. Is Price > 20 SMMA? SMMA Calculation: Calculated using a 20-period Smoothed Moving Average with ta.rma(close, 20). Logic: If the current close price is above the SMMA, the trend is considered upward. Display: Shows "Yes" or "No" based on the comparison. How to Use Step 1: Add the Indicator to Your Chart Copy the Script: Copy the entire Pine Script code into the TradingView Pine Editor. Save and Apply: Save the script and click "Add to Chart." Step 2: Configure Inputs Risk Parameters: Adjust the "Risk Total Amount" and "Risk per 1 Stock" in the indicator settings to match your personal risk management strategy. Step 3: Interpret the Visuals ATR Bands Width of Bands: Wider bands indicate higher volatility; narrower bands indicate lower volatility. Band Overlap: Pay attention to areas where the blue and orange bands diverge or converge. OHLC4 Dotted Line Serves as a central reference point for the ATR bands. Helps visualize the average price around which volatility is measured. ATR Cross Labels "SA>LA" Label: Indicates short-term volatility is increasing relative to long-term volatility. May signal potential breakout or trend acceleration. "SA 20 SMMA? Use this to confirm trend direction before entering or exiting trades. Practical Example Imagine you are analyzing a stock and notice the following: ATR(9) Crosses Above ATR(21): A green "SA>LA" label appears. The info table shows "Yes" for "Is ATR-based price volatile." Position Size: Based on your risk parameters, the position size is calculated. Price Above 20 SMMA: The info table shows "Yes" for "Is price > 20 SMMA." Interpretation: The market is experiencing increasing short-term volatility. The trend is upward, as the price is above the 20 SMMA. You may consider entering a long position, using the calculated position size to manage risk. Customization Colors and Transparency: Adjust the colors of the bands and labels to suit your preferences. Risk Parameters: Modify the default values for risk amounts in the inputs. Moving Average Period: Change the SMMA period if desired. Limitations and Considerations Lagging Indicators: ATR and SMMA are lagging indicators and may not predict future price movements. Market Conditions: The effectiveness of this indicator may vary across different assets and market conditions. Risk of Overfitting: Relying solely on this indicator without considering other factors may lead to suboptimal trading decisions. Conclusion This indicator combines essential elements of technical analysis to provide a comprehensive tool for traders. By visualizing ATR bands anchored at the OHLC4, indicating volatility crossovers, and providing real-time data on position sizing and trend direction, it aids in making informed trading decisions. Whether you're a novice trader looking to understand market volatility or an experienced trader seeking to refine your strategy, this indicator offers valuable insights directly on your TradingView charts. Code Summary The script is written in Pine Script™ version 5 and includes: Calculations for OHLC4, ATRs, Bands, SMMA: Uses built-in functions like ta.atr() and ta.rma() for calculations. Plotting Functions: plotshape() for the OHLC4 dotted line. plot() and fill() for the ATR bands. Crossover Detection: ta.crossover() and ta.crossunder() for detecting ATR crosses. Labeling Crossovers: label.new() to place informative labels on the chart. Information Table Creation: table.new() to create the table. table.cell() to populate it with data. Acknowledgments ATR and SMMA Concepts: Built upon standard technical analysis concepts widely used in trading. Pine Script™: Leveraged the capabilities of Pine Script™ version 5 for advanced charting and analysis. Note: Always test any indicator thoroughly and consider combining it with other forms of analysis before making trading decisions. Trading involves risk, and past performance is not indicative of future results. Happy Trading!
Pine Script™ indicator
by gpsintown
ATR with Donchian Channels and SMAsThis script combines the Average True Range (ATR), Donchian Channels, and Simple Moving Averages (SMAs) to provide a comprehensive tool for volatility and trend analysis. Key Components: ATR Calculation: The ATR is used to measure market volatility. It is calculated as a moving average of the true range over a specified length, which you can customize using different smoothing methods: RMA, SMA, EMA, or WMA. ATR helps identify periods of high and low volatility, giving insights into potential breakout or consolidation phases in the market. Donchian Channels on ATR: The Donchian Channels are calculated based on the highest and lowest values of the ATR over a user-defined period. The upper and lower bands provide a volatility range, and the middle line represents the average of the two. This can help visualize the range of market volatility and detect possible trend reversals or continuations. SMAs on ATR: Two Simple Moving Averages (SMA) are applied to the ATR values. These SMAs act as a smoothed version of the ATR, providing additional insight into volatility trends. By adjusting the length of these SMAs, you can track short-term and long-term volatility movements, helping in decision-making for potential entries and exits. Inputs: ATR Length: Set the length for calculating the ATR. Smoothing Method: Choose from RMA, SMA, EMA, or WMA for smoothing the ATR calculation. Donchian Channel Length: Set the length for calculating the highest and lowest ATR values for Donchian Channels. SMA Lengths: Two adjustable lengths for applying SMAs to the ATR. Visualization: ATR Plot: The ATR is plotted in red, allowing you to see the market's volatility at a glance. Donchian Channels: Blue lines represent the upper and lower bands, while the green line represents the middle line of the Donchian Channels, helping you visualize the volatility range. SMAs: Two SMAs (green and orange) are plotted to smooth out the ATR and identify trends in volatility. Use Cases: Breakout Detection: High ATR values breaking out of the Donchian Channels may signal increased volatility and a potential breakout. Trend Analysis: SMAs on ATR help smooth volatility trends, aiding in determining if the market is entering a more volatile or stable period. Stop-Loss Placement: ATR and Donchian Channels can be used to set dynamic stop-loss levels based on market volatility. This script is versatile and can be used across different asset classes, such as stocks, forex, crypto, and commodities. It is especially useful for traders who want to incorporate volatility into their trading strategies for better risk management and trend detection.
Pine Script™ indicator
by Day_Ononuju
ATR, Chop, Profit Target and Stop Loss TableThe ATR Table indicator is a versatile tool that helps traders visually and quantitatively manage risk, identify market conditions, and set profit targets and stop-loss levels. It is designed to enhance decision-making by incorporating key volatility and chop (market consolidation) signals into a comprehensive table format. Key Features: Average True Range (ATR) Calculation : The indicator computes the ATR over a user-defined period (default 14). ATR helps to measure market volatility, providing insights into how much an asset's price typically moves within a given period. Stop Loss and Profit Target Calculation : You can configure stop-loss and profit target levels using multipliers based on the ATR. This allows dynamic risk management that adjusts to market volatility: Stop Loss : Defined as a multiple of the ATR to help control losses. Profit Target : Also based on a multiple of the ATR to lock in gains. The user can specify whether they are trading long or short, and the indicator adjusts the levels accordingly. Customizable Plot Lines : The indicator can display the Stop Loss and Profit Target levels directly on the chart. Users can toggle these lines on or off and customize their colors. Chop Signa l: The indicator highlights potential consolidation periods (chop) using a wick-based analysis. It calculates the highest upper or lower wick values and compares them to the ATR to detect periods of indecision or consolidation. Table Display : When these wick values exceed the ATR by a user-defined multiplier, the corresponding table rows are highlighted. Background Alerts : Optionally, users can activate background color changes on the chart to visually alert them when chop conditions are detected. Customizable Table Layout : A table displaying the key values (ATR, Stop Loss, Profit Target, Upper/Lower Wickiness) is placed on the chart. You can choose the table's position, adjust its color scheme, and decide which rows to display. Chop Background Customization : For users who prefer more visual cues, the indicator allows you to enable or disable background shading when chop conditions are met. You can also choose the color of this background for better customization.
Pine Script™ indicator
by MarketXero
1
KAMA CloudDescription: The KAMA Cloud indicator is a sophisticated trading tool designed to provide traders with insights into market trends and their intensity. This indicator is built on the Kaufman Adaptive Moving Average (KAMA), which dynamically adjusts its sensitivity to filter out market noise and respond to significant price movements. The KAMA Cloud leverages multiple KAMAs to gauge trend direction and strength, offering a visual representation that is easy to interpret. How It Works: The KAMA Cloud uses twenty different KAMA calculations, each set to a distinct lookback period ranging from 5 to 100. These KAMAs are calculated using the average of the open, high, low, and close prices (OHLC4), ensuring a balanced view of price action. The relative positioning of these KAMAs helps determine the direction of the market trend and its momentum. By measuring the cumulative relative distance between these KAMAs, the indicator effectively assesses the overall trend strength, akin to how the Average True Range (ATR) measures market volatility. This cumulative measure helps in identifying the trend’s robustness and potential sustainability. The visualization component of the KAMA Cloud is particularly insightful. It plots a 'cloud' formed between the base KAMA (set at a 100-period lookback) and an adjusted KAMA that incorporates the cumulative relative distance scaled up. This cloud changes color based on the trend direction — green for upward trends and red for downward trends, providing a clear, visual representation of market conditions. Benefits: Dynamic Sensitivity: By adapting to the market's volatility, KAMA provides more reliable signals than traditional moving averages. Trend Clarity: The color-coded cloud visually enhances the perception of the trend’s direction and strength, making it easier for traders to decide on their trading strategy. Versatility: Suitable for various asset classes, including stocks, forex, commodities, and cryptocurrencies, across different timeframes. Decision Support: Helps traders understand not just the direction but the strength of trends, aiding in more informed decision-making regarding entries, exits, and risk management. Usage: The KAMA Cloud is ideal for traders who need a robust trend-following tool that adjusts according to market dynamics. It can be used as a standalone indicator or in conjunction with other technical analysis tools to enhance trading strategies. Look for the cloud’s color shifts as potential signals for trend reversals or continuations, and consider the cloud’s thickness as an indication of trend strength. Whether you are a day trader, swing trader, or long-term investor, the KAMA Cloud offers a unique approach to understanding market trends, helping you navigate the complexities of various market conditions with confidence.
Pine Script™ indicator
by mertenes3
Iceberg Trade Revealer [CHE]Unveiling Iceberg Trades: A Deep Dive into Low Volatility Market Phases Introduction In the dynamic world of trading, hidden forces often influence market movements in ways that aren't immediately apparent. One such force is the phenomenon of iceberg trades—large orders that are concealed to prevent significant market impact. This presentation explores the concept of iceberg trades, explains why they are typically hidden during periods of low volatility, and introduces an indicator designed to reveal these elusive trades. Agenda 1. Understanding Iceberg Trades - Definition and Purpose - Impact on Market Dynamics 2. The Low Volatility Concealment - Why Low Volatility Phases? - Strategies Behind Hiding Large Orders 3. Introducing the Iceberg Trade Revealer Indicator - How the Indicator Works - Key Components and Calculations 4. Demonstration and Use Cases - Interpreting the Indicator Signals - Practical Trading Applications 5. Conclusion - Summarizing the Insights - Q&A Session 1. Understanding Iceberg Trades Definition and Purpose - Iceberg Trades are large single orders divided into smaller lots to disguise the total order quantity. - Traders use iceberg orders to minimize market impact and avoid unfavorable price movements. Impact on Market Dynamics - Concealed Volume: Iceberg orders hide true supply and demand levels. - Price Stability: They prevent sudden spikes or drops by releasing orders gradually. - Market Sentiment: Their presence can influence perceptions of market strength or weakness. 2. The Low Volatility Concealment Why Low Volatility Phases? - Less Market Attention: Low volatility periods attract fewer traders, making it easier to conceal large orders. - Reduced Slippage: Prices are more stable, reducing the risk of executing orders at unfavorable prices. - Strategic Advantage: Large players can accumulate or distribute positions without tipping off the market. Strategies Behind Hiding Large Orders - Order Splitting: Breaking down large orders into smaller pieces. - Time Slicing: Executing orders over an extended period. - Algorithmic Trading: Using sophisticated algorithms to optimize order execution. 3. Introducing the Iceberg Trade Revealer Indicator How the Indicator Works - Core Thesis: Iceberg trades can be detected by analyzing periods of unusually low volatility. - Volatility Analysis: Uses the Average True Range (ATR) and Bollinger Bands to identify low volatility phases. - Signal Generation: Marks periods where iceberg trades are likely occurring. Key Components and Calculations 1. Average True Range (ATR) - Measures market volatility over a specified period. - Lower ATR values indicate less price movement. 2. Bollinger Bands - Creates a volatility envelope around the ATR. - Bands tighten during low volatility and widen during high volatility. 3. Timeframe Adjustments - Utilizes multiple timeframes to enhance signal accuracy. - Options for auto, multiplier, or manual timeframe selection. 4. Signal Conditions - Iceberg Trade Detection: ATR falls below the lower Bollinger Band. - Revealed Volatility: ATR rises above the upper Bollinger Band, indicating potential market moves after iceberg trades. 4. Demonstration and Use Cases Interpreting the Indicator Signals - Iceberg Trade Zones: Highlighted areas where large hidden orders are likely. - Revealed Volatility Zones: Areas indicating the market's response to the execution of iceberg trades. Practical Trading Applications - Entry and Exit Points: Use signals to time trades alongside institutional activity. - Risk Management: Adjust strategies during detected low volatility phases. - Market Analysis: Gain insights into underlying market mechanics. 5. Conclusion Summarizing the Insights - Iceberg Trades play a significant role in market movements, especially when concealed during low volatility phases. - The Iceberg Trade Revealer Indicator provides a tool to uncover these hidden activities, offering traders a strategic edge. - Understanding and utilizing this indicator can enhance trading decisions by aligning them with the actions of major market players. Best regards Chervolino ( Volker ) Q&A Session - Questions and Discussions: Open the floor for any queries or further explanations. Thank You! By delving into the hidden aspects of market activity, traders can better navigate the complexities of financial markets. The Iceberg Trade Revealer Indicator serves as a bridge between observable market data and the concealed strategies of large institutions. References - Average True Range (ATR): A technical analysis indicator that measures market volatility. - Bollinger Bands: A volatility indicator that creates a band of three lines which are plotted in relation to a security's price. - Iceberg Orders: Large orders divided into smaller lots to hide the actual order quantity. Note: Always consider multiple factors when making trading decisions. Indicators provide tools, but they do not guarantee results. Educational Content Disclaimer: Disclaimer: The content provided, including all code and materials, is strictly for educational and informational purposes only. It is not intended as, and should not be interpreted as, financial advice, a recommendation to buy or sell any financial instrument, or an offer of any financial product or service. All strategies, tools, and examples discussed are provided for illustrative purposes to demonstrate coding techniques and the functionality of Pine Script within a trading context. Any results from strategies or tools provided are hypothetical, and past performance is not indicative of future results. Trading and investing involve high risk, including the potential loss of principal, and may not be suitable for all individuals. Before making any trading decisions, please consult with a qualified financial professional to understand the risks involved. By using this script, you acknowledge and agree that any trading decisions are made solely at your discretion and risk.
Pine Script™ indicator
by chervolino
2
$TUBR: Stop Loss IndicatorATR-Based Stop Loss Indicator for TradingView by The Ultimate Bull Run Community: TUBR **Overview** The ATR-Based Stop Loss Indicator is a custom tool designed for traders using TradingView. It helps you determine optimal stop loss levels by leveraging the Average True Range (ATR), a popular measure of market volatility. By adapting to current market conditions, this indicator aims to minimize premature stop-outs and enhance your risk management strategy. --- **Key Features** - **Dynamic Stop Loss Levels**: Calculates stop loss prices based on the ATR, providing both long and short stop loss suggestions. - **Customizable Parameters**: Adjust the ATR period, multiplier, and smoothing method to suit your trading style and the specific instrument you're trading. - **Visual Aids**: Plots stop loss lines directly on your chart for easy visualization. - **Alerts and Notifications** (Optional): Set up alerts to notify you when the price approaches or hits your stop loss levels. --- **Understanding the Indicator** 1. **Average True Range (ATR)**: - **What It Is**: ATR measures market volatility by calculating the average range between high and low prices over a specified period. - **Why It's Useful**: A higher ATR indicates higher volatility, which can help you set stop losses that accommodate market fluctuations. 2. **ATR Multiplier**: - **Purpose**: Determines how far your stop loss is placed from the current price based on the ATR. - **Example**: An ATR multiplier of 1.5 means the stop loss is set at 1.5 times the ATR away from the current price. 3. **Smoothing Methods**: - **Options**: Choose from RMA (default), SMA, EMA, WMA, or Hull MA. - **Effect**: Different smoothing methods can make the ATR more responsive or smoother, affecting where the stop loss is placed. --- **How the Indicator Works** - **Long Stop Loss Calculation**: - **Formula**: `Long Stop Loss = Close Price - (ATR * ATR Multiplier)` - **Purpose**: For long positions, the stop loss is set below the current price to protect against downside risk. - **Short Stop Loss Calculation**: - **Formula**: `Short Stop Loss = Close Price + (ATR * ATR Multiplier)` - **Purpose**: For short positions, the stop loss is set above the current price to protect against upside risk. - **Plotting on the Chart**: - **Green Line**: Represents the suggested stop loss level for long positions. - **Red Line**: Represents the suggested stop loss level for short positions. --- **How to Use the Indicator** 1. **Adding the Indicator to Your Chart**: - **Step 1**: Copy the PineScript code of the indicator. - **Step 2**: In TradingView, click on **Pine Editor** at the bottom of the platform. - **Step 3**: Paste the code into the editor and click **Add to Chart**. - **Step 4**: The indicator will appear on your chart with the default settings. 2. **Adjusting the Settings**: - **ATR Period**: - **Definition**: Number of periods over which the ATR is calculated. - **Adjustment**: Increase for a smoother ATR; decrease for a more responsive ATR. - **ATR Multiplier**: - **Definition**: Factor by which the ATR is multiplied to set the stop loss distance. - **Adjustment**: Increase to widen the stop loss (less likely to be hit); decrease to tighten the stop loss. - **Smoothing Method**: - **Options**: RMA, SMA, EMA, WMA, Hull MA. - **Adjustment**: Experiment to see which method aligns best with your trading strategy. - **Display Options**: - **Show Long Stop Loss**: Toggle to display or hide the long stop loss line. - **Show Short Stop Loss**: Toggle to display or hide the short stop loss line. 3. **Interpreting the Indicator**: - **Long Positions**: - **Action**: Set your stop loss at the value indicated by the green line when entering a long trade. - **Short Positions**: - **Action**: Set your stop loss at the value indicated by the red line when entering a short trade. - **Adjusting Stop Losses**: - **Trailing Stops**: You may choose to adjust your stop loss over time, moving it in the direction of your trade as the ATR-based stop loss levels change. 4. **Implementing in Your Trading Strategy**: - **Risk Management**: - **Position Sizing**: Use the stop loss distance to calculate your position size based on your risk tolerance. - **Consistency**: Apply the same settings consistently to maintain discipline. - **Combining with Other Indicators**: - **Enhance Decision-Making**: Use in conjunction with trend indicators, support and resistance levels, or other technical analysis tools. - **Alerts Setup** (If included in the code): - **Purpose**: Receive notifications when the price approaches or hits your stop loss level. - **Configuration**: Set up alerts in TradingView based on the alert conditions defined in the indicator. --- **Benefits of Using This Indicator** - **Adaptive Risk Management**: By accounting for current market volatility, the indicator helps prevent setting stop losses that are too tight or too wide. - **Minimize Premature Stop-Outs**: Reduces the likelihood of being stopped out due to normal price fluctuations. - **Flexibility**: Customizable settings allow you to tailor the indicator to different trading instruments and timeframes. - **Visualization**: Clear visual representation of stop loss levels aids in quick decision-making. --- **Things to Consider** - **Market Conditions**: - **High Volatility**: Be cautious as ATR values—and thus stop loss distances—can widen, increasing potential losses. - **Low Volatility**: Tighter stop losses may increase the chance of being stopped out by minor price movements. - **Backtesting and Optimization**: - **Historical Analysis**: Test the indicator on past data to evaluate its effectiveness and adjust settings accordingly. - **Continuous Improvement**: Regularly reassess and fine-tune the parameters to adapt to changing market conditions. - **Risk Per Trade**: - **Alignment with Risk Tolerance**: Ensure the stop loss level keeps potential losses within your acceptable risk per trade (e.g., 1-2% of your trading capital). - **Emotional Discipline**: - **Stick to Your Plan**: Avoid making impulsive changes to your stop loss levels based on emotions rather than analysis. --- **Example Usage Scenario** 1. **Setting Up a Long Trade**: - **Entry Price**: $100 - **ATR Value**: $2 - **ATR Multiplier**: 1.5 - **Calculated Stop Loss**: $100 - ($2 * 1.5) = $97 - **Action**: Place a stop loss order at $97. 2. **During the Trade**: - **Price Increases to $105** - **ATR Remains at $2** - **New Stop Loss Level**: $105 - ($2 * 1.5) = $102 - **Action**: Move your stop loss up to $102 to lock in profits. --- **Final Tips** - **Documentation**: Keep a trading journal to record your trades, stop loss levels, and observations for future reference. - **Education**: Continuously educate yourself on risk management and technical analysis to enhance your trading skills. - **Support**: Engage with trading communities or seek professional advice if you're unsure about implementing the indicator effectively. --- **Conclusion** The ATR-Based Stop Loss Indicator is a valuable tool for traders looking to enhance their risk management by setting stop losses that adapt to market volatility. By integrating this indicator into your trading routine, you can improve your ability to protect capital and potentially increase profitability. Remember to use it as part of a comprehensive trading strategy, and always adhere to sound risk management principles. --- **How to Access the Indicator** To start using the ATR-Based Stop Loss Indicator, follow these steps: 1. **Obtain the Code**: Copy the PineScript code provided for the indicator. 2. **Create a New Indicator in TradingView**: - Open TradingView and navigate to the **Pine Editor**. - Paste the code into the editor. - Click **Save** and give your indicator a name. 3. **Add to Chart**: Click **Add to Chart** to apply the indicator to your current chart. 4. **Customize Settings**: Adjust the input parameters to suit your preferences and start integrating the indicator into your trading strategy. --- **Disclaimer** Trading involves significant risk, and it's possible to lose all your capital. The ATR-Based Stop Loss Indicator is a tool to aid in decision-making but does not guarantee profits or prevent losses. Always conduct your own analysis and consider seeking advice from a financial professional before making trading decisions.
Pine Script™ indicator
by TheUltimateBullRun
Multi-Step FlexiSuperTrend - Indicator [presentTrading]This version of the indicator is built upon the foundation of a strategy version published earlier. However, this indicator version focuses on providing visual insights and alerts for traders, rather than executing trades. This one is mostly for @thorcmt. █ Introduction and How it is Different The **Multi-Step FlexiSuperTrend Indicator** is a versatile tool designed to provide traders with a highly customizable and flexible approach to trend analysis. Unlike traditional supertrend indicators, which focus on a single factor or threshold, the **FlexiSuperTrend** allows users to define multiple levels of take-profit targets and incorporate different trend normalization methods. It comes with several advanced customization features, including multi-step take profits, deviation plotting, and trend normalization, making it suitable for both novice and expert traders. BTCUSD 6hr Performance █ Strategy, How It Works: Detailed Explanation The **Multi-Step FlexiSuperTrend** works by calculating a supertrend based on multiple factors and incorporating oscillations from trend deviations. Here’s a breakdown of how it functions: 🔶 SuperTrend Calculation At the heart of the indicator is the SuperTrend formula, which dynamically adjusts based on price movements. 🔶 Normalization of Deviations To enhance accuracy, the **FlexiSuperTrend** calculates multiple deviations from the trend and normalizes them. 🔶 Multi-Step Take Profit Levels The indicator allows setting up to three take profit levels, which are displayed via price level alerts. lows traders to exit part of their position at various profit intervals. For more detail, please check the strategy version - Multi-Step-FlexiSuperTrend-Strategy: and 'FlexiSuperTrend-Strategy' █ Trade Direction The **Multi-Step FlexiSuperTrend Indicator** supports both long and short trade directions. This flexibility allows traders to adapt to trending, volatile, or sideways markets. █ Usage To use the **FlexiSuperTrend Indicator**, traders can set up their preferences for the following key features: - **Trading Direction**: Choose whether to focus on long, short, or both signals. - **Indicator Source**: The price source to calculate the trend (e.g., close, hl2). - **Indicator Length**: The number of periods to calculate the ATR and trend (the larger the value, the smoother the trend). - **Starting and Increment Factor**: These adjust how reactive the trend is to price movements. The starting factor dictates how far the initial trend band is from the price, and the increment factor adjusts subsequent trend deviations. The indicator then displays buy and sell signals on the chart, along with alerts for each take-profit level. Local picture █ Default Settings The default settings of the **Multi-Step FlexiSuperTrend** are carefully designed to provide an optimal balance between sensitivity and accuracy. Let’s examine these default parameters and their effect on performance: 🔶 Indicator Length (Default: 10) The **Indicator Length** determines the lookback period for the ATR calculation. A smaller value makes the indicator more reactive to price changes, but may generate more false signals. A longer length smooths the trend and reduces noise but may delay signals. Effect on performance: Shorter lengths perform better in volatile markets, while longer lengths excel in trending markets. 🔶 Starting Factor (Default: 0.618) This factor adjusts the starting distance of the SuperTrend from the current price. The smaller the starting factor, the closer the trend is to the price, making it more sensitive. Conversely, a larger factor allows more distance, reducing sensitivity but filtering out false signals. Effect on performance: A smaller factor provides quicker signals but can lead to frequent false positives. A larger factor generates fewer but more reliable signals. 🔶 Increment Factor (Default: 0.382) The **Increment Factor** controls how the trend bands adjust as the price moves. It increases the distance of the bands from the price with each iteration. Effect on performance: A higher increment factor can result in wider stop-loss or trend reversal bands, allowing for longer trends to develop without frequent exits. A lower factor keeps the bands closer to the price and is more suited for shorter-term trades. 🔶 Take Profit Levels (Default: 2%, 8%, 18%) The default take-profit levels are set at 2%, 8%, and 18%. These values represent the thresholds at which the trader can partially exit their positions. These multi-step levels are highly customizable depending on the trader’s risk tolerance and strategy. Effect on performance: Lower take-profit levels (e.g., 2%) capture small, quick profits in volatile markets, while higher levels (8%-18%) allow for a more gradual exit in strong trends. 🔶 Normalization Method (Default: None) The default normalization method is **None**, meaning the deviations are not normalized. However, enabling normalization (e.g., **Max-Min**) can improve the clarity of the indicator’s signals in volatile or choppy markets by smoothing out the noise. Effect on performance: Using a normalization method can reduce the effect of extreme deviations, making signals more stable and less prone to false positives.
Pine Script™ indicator
by PresentTrading
2
Trend CCITrend CCI (TCCI) Indicator Description: The Trend CCI (TCCI) indicator is a unique combination of the Commodity Channel Index (CCI) and the Average True Range (ATR), designed to identify trends and market reversals with a refined sensitivity to price volatility. The indicator plots the CCI, adjusted by an ATR filter, and color-codes the trendline to signal uptrends and downtrends. How It Works: This indicator uses the CCI to measure price momentum and an ATR-based filter to smooth out market noise, making it easier to detect significant shifts in the market trend. Key parameters such as the ATR Period, ATR Multiplier, and CCI Period have been carefully chosen to optimize the indicator's performance: 1. ATR Period (default: 18) The ATR Period determines the number of periods used to calculate the **Average True Range**, which reflects market volatility. In this case, an **ATR Period of 18** has been selected for several reasons: Balance between responsiveness and noise reduction : A period of 18 strikes a balance between being responsive to recent price movements and filtering out minor fluctuations. Shorter ATR periods might be too reactive, creating false signals, while longer periods might miss shorter-term trends. Adaptable to various market conditions : An 18-period ATR is suitable for both intraday and swing trading strategies, making it versatile across different time frames. Standard industry practice : Many traders use ATR settings between 14 and 20 periods as a convention for detecting reliable volatility levels. 2. ATR Multiplier (default: 1.5) The ATR Multiplier is applied to the ATR value to define how sensitive the indicator is to volatility. In this case, a multiplier of 1.5 has been chosen: Avoiding whipsaws in low volatility markets: By setting the multiplier to 1.5, the indicator filters out smaller, less significant price movements, reducing the likelihood of whipsaw signals (i.e., false trend reversals during periods of low volatility). Optimizing signal accuracy: A moderate multiplier like 1.5 ensures that the indicator only generates signals when the price moves a significant distance from the average range. Higher multipliers (e.g., 2.0) may ignore valid opportunities, while lower multipliers (e.g., 1.0) might create too many signals. Enhancing trend clarity : The multiplier’s role in widening the range allows the indicator to respond more clearly during periods of strong trends, reducing signal noise and false positives. 3. CCI Period (default: 63) The CCI Period defines the number of periods used to calculate the Commodity Channel Index. A 63-period CCI is selected based on the following considerations: Smoothing the momentum calculation: A longer period, such as 63, is used to smooth out the CCI and reduce the effects of short-term price fluctuations. This period captures longer-term momentum, making it ideal for identifying more significant market trends. -Filtering out short-term noise: While shorter CCI periods (e.g., 14 or 20) may be more reactive, they tend to produce more signals, some of which may be false. A 63-period CCI focuses on stronger and more sustained price movements, providing fewer but higher-quality signals. Adapted to intermediate trading: A 63-period CCI aligns well with traders looking for medium-term trend-following strategies, striking a balance between long-term trend identification and responsiveness to significant price shifts. How to Use: Green Area: When the trendline turns green, it signals that the CCI is positive, reflecting upward momentum. This can be interpreted as a buy signal, indicating the potential for long positions or continuing bullish trades. Red Area: When the trendline turns red, it signals that the CCI is negative, reflecting downward momentum. This can be interpreted as a sell signal, indicating potential short positions or bearish trades. ATR Filter: The ATR helps reduce false signals by ignoring minor price movements. Traders can adjust the ATR Multiplier to make the indicator more or less sensitive based on market conditions. A lower multiplier (e.g., 1.2) may increase signal frequency, while a higher multiplier (e.g., 2.0) reduces it. Originality: The Trend CCI (TCCI) stands out due to its combination of the CCI and ATR. While many indicators simply plot raw CCI values, this script enhances the CCI’s effectiveness by incorporating an ATR-based volatility filter. This ensures that only significant trends trigger signals, making it a more reliable tool in volatile markets. The choice of the ATR period, multiplier, and CCI period ensures a refined balance between trend detection and noise reduction, distinguishing it as a powerful trend-following indicator. Additionally, the visual aspect—using color-coded trendlines that dynamically shift between green and red—simplifies the interpretation of market trends, offering traders a clear and immediate understanding of trend direction and momentum strength. Final Recommendations: Use in Trending Markets The TCCI is most effective in trending markets, where its signals align with broader market momentum. In sideways or low-volatility markets, consider adjusting the ATR multiplier or using other complementary indicators to confirm the signals. Risk Management: Always integrate robust risk management practices, such as using stop-loss orders and position sizing, to protect against sudden market reversals or periods of heightened volatility. Adjust for Volatility: Consider the volatility of the asset being traded. In highly volatile assets, a higher ATR multiplier (e.g., 2.0) may be necessary to filter out noise, while in more stable assets, a lower multiplier (e.g., 1.2) might generate earlier signals. By using the Trend CCI (TCCI) indicator with a deeper understanding of its key parameters, traders can better identify trends, reduce noise, and improve their overall decision-making in the markets. Good Profits!
Pine Script™ indicator
by NathanTradeus
Uptrick: Market MoodsThe "Uptrick: Market Moods" indicator is an advanced technical analysis tool designed for the TradingView platform. It combines three powerful indicators—Relative Strength Index (RSI), Average True Range (ATR), and Bollinger Bands—into one cohesive framework, aimed at helping traders better understand and interpret market sentiment. By capturing shifts in the emotional climate of the market, it provides a holistic view of market conditions, which can range from calm to stressed or even highly excited. This multi-dimensional analysis tool stands apart from traditional single-indicator approaches by offering a more complete picture of market dynamics, making it a valuable resource for traders looking to anticipate and react to changes in market behavior. The RSI in the "Uptrick: Market Moods" indicator is used to measure momentum. RSI is an essential component of many technical analysis strategies, and in this tool, it is used to identify potential market extremes. When RSI values are high, they indicate an overbought condition, meaning the market may be approaching a peak. Conversely, low RSI values suggest an oversold condition, signaling that the market could be nearing a bottom. These extremes provide crucial clues about shifts in market sentiment, helping traders gauge whether the current emotional state of the market is likely to result in a reversal. This understanding is pivotal in predicting whether the market is transitioning from calm to stressed or from excited to overbought. The Average True Range adds another layer to this analysis by offering insights into market volatility. Volatility is a key factor in understanding the mood of the market, as periods of high volatility often reflect high levels of excitement or stress, while low volatility typically indicates a calm, steady market. ATR is calculated based on the range of price movements over a given period, and the higher the value, the more volatile the market is. The "Uptrick: Market Moods" indicator uses ATR to dynamically gauge volatility levels, helping traders understand whether the market is currently moving in a way that aligns with its emotional mood. For example, an increase in ATR accompanied by an RSI value that indicates overbought conditions could suggest that the market is in a highly excited state, with the potential for either strong momentum continuation or a sharp reversal. Bollinger Bands complement these tools by providing visual cues about price volatility and the range within which the market is likely to move. Bollinger Bands plot two standard deviations away from a simple moving average of the price. This banding technique helps traders visualize how far the price is likely to deviate from its average over a certain period. The "Uptrick: Market Moods" indicator uses Bollinger Bands to establish price boundaries and identify breakout conditions. When prices break above the upper band or below the lower band, it often signals that the market is either highly stressed or excited. This breakout condition serves as a visual representation of the market mood, alerting traders to moments when prices are moving beyond typical ranges and when significant emotional shifts are occurring in the market. Technically, the "Uptrick: Market Moods" indicator has been developed using TradingView’s Pine Script language, a highly efficient language for building custom indicators. It employs functions like ta.rsi, ta.atr, and ta.sma to perform the necessary calculations. The use of these built-in functions ensures that the calculations are both accurate and efficient, allowing the indicator to operate in real-time without lagging, even in volatile market conditions. The ta.rsi function is used to compute the Relative Strength Index, while ta.atr calculates the Average True Range, and ta.sma is used to smooth out price data for the Bollinger Bands. These functions are applied dynamically within the script, allowing the "Uptrick: Market Moods" indicator to respond to changes in market conditions in real time. The user interface of the "Uptrick: Market Moods" indicator is designed to provide a visually intuitive experience. The market mood is color-coded on the chart, making it easy for traders to identify whether the market is calm, stressed, or excited at a glance. This feature is especially useful for traders who need to make quick decisions in fast-moving markets. Additionally, the indicator includes an interactive table that updates in real-time, showing the most recent mood state and its frequency. This provides valuable statistical insights into market behavior over specific time frames, helping traders track the dominant emotional state of the market. Whether the market is in a prolonged calm state or rapidly transitioning through moods, this real-time feedback offers actionable data that can help traders adjust their strategies accordingly. The RSI component of the "Uptrick: Market Moods" indicator helps detect the speed and direction of price movements, offering insight into whether the market is approaching extreme conditions. By providing signals based on overbought and oversold levels, the RSI helps traders decide whether to enter or exit positions. The ATR element acts as a volatility gauge, dynamically adjusting traders’ expectations in response to changes in market volatility. Meanwhile, the Bollinger Bands help identify trends and potential breakout conditions, serving as an additional confirmation tool that highlights when the price has moved beyond normal boundaries, indicating heightened market excitement or stress. Despite the robust capabilities of the "Uptrick: Market Moods" indicator, it does have limitations. In markets affected by sudden shifts, such as those driven by major news events or external economic factors, the indicator’s performance may not always be reliable. These external factors can cause rapid mood swings that are difficult for any technical analysis tool to fully anticipate. Additionally, the indicator’s complexity may pose a learning curve for novice traders, particularly those who are unfamiliar with the concepts of RSI, ATR, and Bollinger Bands. However, with practice, traders can become proficient in using the tool to its full potential, leveraging the insights it provides to better navigate market shifts. For traders seeking a deeper understanding of market sentiment, the "Uptrick: Market Moods" indicator is an invaluable resource. It is recommended for those dealing with medium to high volatility instruments, where understanding emotional shifts can offer a strategic advantage. While it can be used on its own, integrating it with other forms of analysis, such as fundamental analysis and additional technical indicators, can enhance its effectiveness. By confirming signals with other tools, traders can reduce the likelihood of false signals and improve their overall trading strategy. To further enhance the accuracy of the "Uptrick: Market Moods" indicator, it can be integrated with volume-based tools like Volume Profile or On-Balance Volume (OBV). This combination allows traders to confirm the moods identified by the indicator with volume data, providing additional confirmation of market sentiment. For example, when the market is in an excited mood, an increase in trading volume could reinforce the reliability of that signal. Conversely, if the market is stressed but volume remains low, traders may want to proceed with caution. Using multiple indicators together creates a more comprehensive trading approach, helping traders better manage risk and make informed decisions based on multiple data points. In conclusion, the "Uptrick: Market Moods" indicator is a powerful and unique addition to the suite of technical analysis tools available on TradingView. It provides traders with a multi-dimensional view of market sentiment by combining the analytical strengths of RSI, ATR, and Bollinger Bands into a single tool. Its ability to capture and interpret the emotional mood of the market makes it an essential tool for traders seeking to gain an edge in understanding market behavior. While the indicator has certain limitations, particularly in rapidly shifting markets, its ability to provide real-time insights into market sentiment is a valuable asset for traders of all experience levels. Used in conjunction with other tools and sound trading practices, the "Uptrick: Market Moods" indicator offers a comprehensive solution for navigating the complexities of financial markets.
Pine Script™ indicator
by Uptrick